Integrated Organization Principles

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Assessment Front Sheet PGDBE

PGDBE/UG Programme : Assignment Title :: 3

Module : IOP

Leadership Styles

Assessor :

Prof. Ramesh Joshi
FEB 2009

Student Name : Vipul

Year

Vyas
Given out on : Required Submission Date : 10-2-09 Actual Submission : 10-2-09

Prof. Ramesh Joshi
Submitted to :

OVERALL ASSESSMENT GRADE

GRADING OPPORTUNITIES

MERIT

CRITERIA MET

DISTINCTIO N

CRITERI A MET

M1 M2 M3

D1 D2 D3

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Name of Verifier : Internal Verification Date :

Leadership and Leadership styles

Leadership is the process of influencing the behavior of others to work willingly and enthusiastically. Leadership is a complex process by which a person influences others to accomplish a mission, task or objective and directs the organization in a way that makes it more cohesive and coherent.

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A person carries out this process by applying his or her leadership attributes (belief, values, ethics, character, knowledge, and skills). Leadership is about behaviour first, skills second. Good leaders are followed because people trust and respect them, not for the skills they possess. Leadership is different to management. Leadership needs management skills, plus - integrity, honesty, humility, courage, commitment, sincerity, passion, confidence, positivity, wisdom, determination, compassion, sensitivity and personality.

Different definition of the Leadership:
 “Leadership is interpersonal influence exercised in a situation and directed through communication process, towards the attainment of a specified goal or goals”.  “Leadership is essentially a continuous process of influencing behavior. 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”.  “Leadership is the process of influencing and supporting others to work enthusiastically toward achieving objectives”.

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Importance of Leadership
Leadership is a process of influence on a group. Thus effective leadership is highly essential in inspiring the people for accomplishing specified objectives. According to P.F. Drucker, good leadership is a must for the success of a business but business leaders are the scarcest resources of any enterprise. John G. Gloves, in his book, Fundamentals of Professional Management, states that “more failures of business concerns are attributable to poor leadership than to any other cause.” All these emphasize the importance of leadership in achieving the organizational goals. The importance of leadership in management will be clearer if the following functions performed by the leaders are known: 1. Determination of goals: A leader carries out the creative function of laying down goals and policies for the followers.

2. Organization of activities: A good leader divides organizational activities among the employees in a systematic way. It helps to reduce the chances of conflict between them.

3. Accomplishing coordination: A leader directs and unifies the efforts of the individuals of a group for the accomplishment of organizational goals.

4. Providing guidance: A good leader guides the subordinates and is available for advice whenever they face any problem.

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5. Building employees’ morale: A good leader builds employees’ morale, which in turn ensures high productivity and stability in the organization.

6. Facilitating change: Dynamic leadership is the corner stone of organizational change. A dynamic leader can facilitate change, as he is able to overcome resistance to change on the part of the employees.

NATURE AND CHARECTERISTICS OF LEADERSHIP:
1. co-existence with follower ship:

It is natural that a leader cannot exist without followers existing. A leader exercises authority over the group, and it should be willingly accepted by his followers. If not, that is if authority is not voluntarily accepted or if it is imposed on a group it is not leading but domination. Leadership is not conferred or ordered but is one to be earned. A leader

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commands the respect, loyalty, and confidence on the part of his followers.

2. Responsibility:

In his capacity as a leader a person is expected to assume full responsibility in all situations. Since he is to act as a guide, he is required to assist and encourage the weak, influence and control the strong and generally help the entire group to perform their tasks and attain their objectives as a whole group with an effective team work. In doing this, he must steer the group clear of all difficulties. In short he has to assume responsibility for all actions of the group.

3. Understanding nature:

Another important characteristic feature of leadership is its nature to understand the feelings and problems of the group as a whole as well as the individuals. Besides a guide a leader is looked upon as a friend and a philosopher. Hence a leader should strive to satisfy the personal and social needs of his followers, which is very much expected by them.

4. Precedence:

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Effective leadership sets itself as an example for the followers. Since the leader influences the behavior and the activities of the followers he should be endowed with the technical competence and personality traits. He should also be well aware of his own preferences and limitations to impress upon his followers. Technical knowledge and personality helps him in granting confidence, conviction and self awareness leading to faith and determination to pursue a course of action successfully to its end. Unless the leader is certain and positive of the results he cannot inspire others in following him.

5. Situation:

Leadership patterns changes according to the type of group and the situation in Whichthe group is operating. It is not something which is followed abstractly Withoutconsideration to the people and the environment. Their education, experience and training levels only determine the pattern of leadership, along with tradition of the company, nature of operations, conditions in which operations are carried out etc., which have considerable influence on the role to be adopted by the leader in different situations.

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FUNCTIONS OF LEADERSHIP:
1. Motivate and guide: Performance of human beings tends to be at its peak only if their motivation is at a higher level. Leadership provides the motivation and assistance in accomplishment of group goals. By motivating, leadership elevates men’s vision and goals to higher performance. Leadership helps, inspires, guides and directs group members in order to obtain the best of their abilities. It acts as an integrating force without which the team spirit is destroyed.

2. Assists social system: In present days individual tend to depend more on the group ability than individual ability for achievement of their goals in life. Hence the society in general depends upon leadership. Group efficiency in its turn depends upon leadership. Every group looks upon the leader as he provides the group and identity of interest, imagination foresight, enthusiasm and initiative. Leadership exhibits an imitable code of conduct and responsibility, prescribes a high standard of performance and stresses the importance of respect for the individual. Unsatisfactory performance of

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individuals in any organization can be attributed primarily to lack of leadership.

3. Enlists co-operation: By a mutual process of understanding, the leader not only influences the subordinate but also gets influenced by their problems and feelings. Through his skills of sympathetic contacts, careful listening and correct diagnosis their confidence is won which paves way for their voluntary cooperation.

4. Performances: Through proper motivational techniques and guidance understanding subordinates and securing their co-operation leadership creates a climate for performance, by enabling the followers to apply their full capabilities for work accomplishment and obtaining their unselfish support. The extent to which the leader understands and uses these techniques the more effective he is likely to be in getting things done

Leadership Styles
Leadership style refers to a leader’s behavior. Behavior pattern which the leader reflects in his role as a leader is often described as the style of leadership. It is the result of the philosophy, personality, and experience of the leader. It is the art or process of influencing people so that they contribute willingly towards group goal.

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Leadership has been described as the “process of social influence in which one person is able to enlist the aid and support of others in the accomplishment of a common task”

A definition more inclusive of followers comes from Alan Keith of Genentech who said "Leadership is ultimately about creating a way for people to contribute to making something extraordinary happen." Students of leadership have produced theories involving traits, situational interaction, function, behavior, power, vision and values, charisma, and intelligence among others Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. Process of an individual influencing members to work toward the group’s goals Leadership is setting a new direction or vision for a group that they follow, i.e.: a leader is the spearhead for that new direction
Management is doing things right, leadership is doing the right things

“Leadership is the art of influencing fellow human beings towards a
direction which is of common good"

From Mahatma Gandhi to Jack Welch, and Martin Luther King to Rudolph Giuliani, there are as many leadership styles as there are leaders. Fortunately, business people and psychologists have developed useful, shorthand ways of describing the main leadership styles. This can help aspiring leaders to understand

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and adapt their own styles, so that they can improve their own leadership. Whether you are managing a team at work, captaining your sports team or leading a major corporation, your leadership style is crucial to your success. Consciously, or subconsciously, you will no doubt use some of the leadership styles featured, at least some of the time. By understanding these leadership styles and their impact, you can become a more flexible, better leader. Using the Right Style – Situational Leadership While the Transformation Leadership approach is often highly effective, there is no one “right” way to lead or manage that suits all situations. To choose the most effective approach for you, you must consider: • The skill levels and experience of the members of your team. • The work involved (routine or new and creative). • The organizational environment (stable changing, conservative or adventurous). • You own preferred or natural style. A good leader will find him or herself switching instinctively between styles according to the people and work they are dealing with. This is often referred to as “situational leadership”. For example, the manager of a small factory trains new machine operatives using a bureaucratic style to ensure operatives know the procedures that achieve the right standards of product quality and workplace safety. The same manager may adopt a more participative style of leadership when working on production line improvement with his or her team of supervisorsrship styles or radically

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Three of the most basic leadership styles are: ➢ Democratic ➢ Autocratic ➢ Free-rein

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Democratic Leadership Style What is it? The democratic leadership style is a very open and collegial style of running a team. Ideas move freely amongst the group and are discussed openly. Everyone is given a seat at the table, and discussion is relatively free-flowing. This style is needed in dynamic and rapidly changing environments where very little can be taken as a constant. In these fast moving organizations, every option for improvement has to be considered to keep the group from falling out of date. The democratic leadership style means facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision. The democratic leader must also be able to communicate that decision back to the group to bring unity the plan is chosen. Democratic leadership is the best leadership style for today Democratic leadership style is the advisable leadership style which encourages participation in decision-making and it can be

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persuasive or consultative. However, there is no ‘best’ leadership style because nothing can be absolute right and comprehensive. .

When is it used? When situations change frequently, democratic leadership offers a great deal of flexibility to adapt to better ways of doing things. Unfortunately, it is also somewhat slow to make a decision in this structure, so while it may embrace newer and better methods; it might not do so very quickly. Democratic leadership style can bring the best out of an experienced and professional team. It capitalizes on their skills and talents by letting them share their views, rather than simply expecting them to conform. If a decision is very complex and broad, it is important to have the different areas of expertise represented and contributing input – this is where democratic leader shines.

Good fits for Democratic Leadership:

Creative groups (advertising, design): ideas need to flow in creative environments to find create new concepts and designs. Consulting: when paid to explore problems and find solutions, your role will be to explore the possibilities in depth, and that means there has to be a great deal of exploration and open discussion. Much of the Service industry: new ideas allow for more flexibility to changing customer demands.

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Education: few places need to be open to different ideas than education, both by educators and their students.

How to be effective with this position:

Keep communication open: If the marketplace of ideas is going to be open for business, everyone needs to feel comfortable enough to put their ideas on the table. The democratic leadership style thrives when all the considerations are laid out for everyone to examine. Focus the discussion: It’s hard to keep unstructured discussion productive. It’s the leader’s job to balance being open to ideas and keeping everything on-topic. If the conversation begins to stray, remind everyone of the goal on hand and then steer it back. Make sure to take note of offtopic comments and try to return to them when they are pertinent. Be ready to commit: In the democratic leadership style, you get presented with so many possibilities and suggestions that it can be overwhelming and difficult to commit. But as the leader, when the time comes, you have to choose and do so with conviction. The team depends on the clear and unambiguous mandates to be committed. Respect the ideas: You and your team might not agree with every idea, and that’s ok. It is important, however, that you create a healthy environment where those ideas are entertained and considered --not maligned-- or the flow of ideas will slow to a trickle.

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Explain, but don’t apologize: You want the advocates of the solutions that were not selected to understand that their thoughts were considered and had validity, but that ultimately you had strong reasons to go a different direction. It’s important that the decision be communicated, but you should not apologize for deciding on what you think.

Autocratic Leadership Style
Th is is often considered the classical approach. It is one in which the manager retains as much power and decisionmaking authority as possible. The manager does not consult employees, nor are they allowed to give any input. Employees are expected to obey orders without receiving any explanations. The motivation environment is produced by creating a structured set of rewards and punishments. Autocratic leadership is an extreme form of transactional leadership, where a leader exerts high levels of power over his or her employees or team members. People within the team are given few opportunities for making suggestions, even if these would be in the team's or organization’s interest.

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Most people tend to resent being treated like this. Because of this, autocratic leadership usually leads to high levels of absenteeism and staff turnover. Also, the team's output does not benefit from the creativity and experience of all team members, so many of the benefits of teamwork are lost. For some routine and unskilled jobs, however, this style can remain effective where the advantages of control outweigh the disadvantages. These studies say that autocratic leaders; ➢ Rely on threats and punishment to influence employees ➢ Do not trust employees ➢ Do not allow for employee input Yet, autocratic leadership is not all bad. Sometimes it is the most effective style to use. These situations can include: New, untrained employees who do not know which tasks to perform or which procedures to follow ➢ Effective supervision can be provided only through detailed orders and instructions ➢ Employees do not respond to any other leadership style ➢ There are high-volume production needs on a daily basis ➢ There is limited time in which to make a decision ➢ A manager’s power is challenged by an employee ➢ The area was poorly managed ➢ Work needs to be coordinated with another department or organization The autocratic leadership style should not be used when: ➢ Employees become tense, fearful, or resentful ➢ Employees expect to have their opinions heard ➢ Employees begin depending on their manager to make all their decisions

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➢ There is low employee morale, absenteeism and work stoppage

high

turnover

and

Free-rein Leadership Style
The freerein leadership style is also known as the “hands-off¨ style. It is one in which the manager provides little or no direction and gives employees as much freedom as possible. All authority or power is given to the employees and they must

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determine goals, make decisions, and resolve problems on their own. This French phrase means “leave it be” and is used to describe a leader who leaves his or her colleagues to get on with their work. It can be effective if the leader monitors what is being achieved and communicates this back to his or her team regularly. Most often, laissez-faire leadership works for teams in which the individuals are very experienced and skilled selfstarters. Unfortunately, it can also refer to situations where managers are not exerting sufficient control. In challenging situations, you allow the greatest freedom to your subordinates. You can become overly tolerant of non-productive members of your team. Your “best” day is one in which you have spent the majority of your time working on projects and administrative functions. You schedule meetings, but may tend to have a difficult time bringing the discussion to any definitive conclusion or implementation plan. You tend to function best with subordinates who enjoy working on their own and need little dayto-day supervision from you.

This is an effective style to use when: ➢ Employees are highly skilled, experienced, and educated. ➢ Employees have pride in their work and the drive to do it successfully on their own. ➢ Outside experts, such as staff specialists or consultants are being used ➢ Employees are trustworthy and experienced.

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This style should not be used when: ➢ It makes employees feel insecure at the unavailability of a manager. ➢ The manager cannot provide regular feedback to let employees know how well they are doing. ➢ Managers are unable to thank employees for their good work. ➢ The manager doesn’t understand his or her responsibilities and is hoping the employees can cover for him or her.

Comparison of Leadership Styles

Area of Concern

Directive (Control Orientated) Leader

Consultative (Team Approach) Leader plus group

Free Rein (LaissezFaire) Individuals or groups

Who does the planning?

Who does the Problem Solving?

Leader

Leader plus group

Individuals or groups

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Who makes decisions?

Leader

Leader plus group

Individuals or groups

What is the direction of communication?

Down

Down, up and across

Across

Where is the responsibility for achievement felt?

Leader

Leader plus group

Not Felt

Where does the responsibility actually lie?

Leader

Leader

Leader

Leader’s confidence level in subordinates

Little to none

High

High

Leader’s rapport with subordinates

Low

High

Questionable

Amount of delegation of authority by leader

None

Lots

Lots

Crisis Management

Good

Poor

Chaotic

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Change Management

Poor

Good

Ineffective

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