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Integrated Organization Principles

Assessment Front Sheet PGDBE

PGDBE/UG Programme : Module : IOP

Assignment Title :: 3 Leadership Assessor : Prof. Ramesh

Styles Joshi
Student Name : Vipul Year FEB 2009

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

Prof. Ramesh Joshi

Submitted to :



M1 D1
M2 D2
M3 D3
Integrated Organization Principles

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
 “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



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

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
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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 co-

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
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
• The work involved (routine or new and creative).
• The organizational environment (stable or radically
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
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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
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
• 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 off-
topic comments and try to return to them when they are
• 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 decision-
making 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

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, high turnover and

absenteeism and work stoppage

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


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 self-
starters. 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 day-
to-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
➢ The manager cannot provide regular feedback to let
employees know how well they are doing.
➢ Managers are unable to thank employees for their good
➢ 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 Consultative (Team Free Rein (Laissez-

Orientated) Approach) Faire)

Who does the planning? Leader Leader plus group Individuals or groups

Who does the Problem 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

Down Down, up and across Across

Where is the
responsibility for
Leader Leader plus group Not Felt
achievement felt?

Where does the

responsibility actually
Leader Leader Leader

Leader’s confidence Little to none High High

level in subordinates

Leader’s rapport with 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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