1. REFEREN POWER: It is based on personal relationships with others.

This power
primarily stems from friendship & personal relationships. The managers use referen power in
specific situations especially when their position power is low.

2. EXPERT POWER: it's a type of power that is based upon the specific kind of knowledge
and expertise that a leader has in a particular area and people are dependent on the leader
because of those skills and knowledge.

3. INFORMATION POWER: it's a power based upon the leader’s ability to control and
distribute data and information. Managers use information power to influence their sub
ordinates because they have access and control over vital information needed by the sub
ordinates.

3. CONNECTION POWER: it’s the power based on user's relationship with influential
people. Connection power is a form of politics because the user can make use of the
connections to gain power and use this power in their favor.

POLITICS: It’s the process of gaining and using power, political behavior is an important part
of organization work life. A survey indicates that 20% of the time spent on politics in their
overall work hours

Political Behavior: It's an outcome of 3 main processes: networking, reciprocity, collation.

Networking: a process of development relationship for the purpose of socializing and

politicalizing.
The successful networking includes:

1. The manager should become a participant of a committee, trade union or a professional

association.
2. Develop a plan why you're making a network.
3. Do your homework; make yourself knowledgeable in the area.
4. Be generous and giving.
5. Make the first move.
6. Nurture your relationship in your network.

Reciprocity: It involves creating obligations and developing alliances and using them to
accomplish objectives. In simple words reciprocity means when you do something good for
people you create a debt that you'll be able to get a favor from them in future.

Coalitions: it means a process of getting a person's support which will make you more
stronger, in politics politicians make coalition with businesses man and media persons,
journalists.
Developing political skills: political skills can be developed by following the given guidelines.

1. Learn the organization culture and power players

2. Develop good working relationship especially with your managers.
3. being loyal, honest and try to be a team player.
4. Gain reputation

Negotiations: it’s a process in which two or more parties are in conflict but they are ready to
attempt to come to an agreement.

The negotiation process: it has 3 main steps.

Plan, negotiate, agreement or non-agreement.

Plan: success and failure in negotiations is mostly dependent upon, how best we have
prepared for the negotiation. The planning can involves four basic steps.
1. Research the other party.
2. Set objectives.
3. Try to develop options for tradeoffs.
4. Anticipate questions and objections and prepare tentative answers for those objections.

Negotiate: The negotiations can be done face to face the following points should be
considered.
1. Develop rapport and focus on obstacles.
2. Let the other party make the first offer.
3. Listen and ask question to meet the other party's needs.
4. Don't be too quick to give up and ask for something in return.

Agreement and Non-Agreement: after the process of negotiations is completed, both

parties may come on a solution that is accepted by both but whatsoever is being settled
must be reinstated and be made a form of agreement.

No Agreement: sometimes after the negotiation both parties are unable to accept each
other's offers the process ends up with no agreement.
 CHAPTER # 3 LEADERSHIP TRAITS AND ETHICS

Difference between traits and personality:

TRAITS: they are the distinguishing characteristics of each individual. For example: shy,
talkative, strong, weak, tall, shorts etc.

PERSONALITY: a combination of traits that classify one individual’s behavior.

BIG FIVE MODEL FOR PERSONALITY TRAITS:

1. Extroversion: In this personality dimension, people high in extroversion are
outgoing, talkative, like to meet new people, while people who are low in extroversion
are shy, less social and keep their opinion to themselves.
2. Agreeableness: In this personality dimension people high in agreeableness are
warm, easy going, friendly and people expect that they will easily agree with other
people's opinion. While people who are low in agreeableness are cold, difficult to get
along with, unfriendly and it is very difficult to convince them.
3. Adjustment: In this personality dimension, people who are high in adjustment have
personalities with self-control, calm, relaxed, secure and think positive. While people
who are low in adjustment are nervous, insecure, think negatively and unstable.
4. Consciousness: in this personality dimension, people who are high in
consciousness, are dependable, show conformity and very well organized, while
people who are low in consciousness are irresponsible, undependable, can easily
meet up deadlines.
5. Openness to experience: in this personality dimension, people high in openness
take challenges, like change and risk taking, they are innovate and creative. While
people who are low in openness to experience avoid changes, like routine tasks,
avoid risk taking.

TRAITS OF EFFECTIVE LEADER

1. Dominance: It is a leadership trait which is also known as achievement

orientation. A person who is high in dominance want to effect on other people's
behaviors and try to gain more power and have a high level of energy and
influence.
2. High energy: In this leadership trait, the individual is hardworking, have high
stamina, tolerate stress and don’t give up easily.
3. Self Confidence: In this trait, the individual has a high level of self-assurance in
his judgments, decisions, ideas and capabilities.
 4. Locus of control: (internal, external) It can be external or internal. People having
internal locus of control believe that they can control their fate and behavior
directly affect their performance. While people with external locus of control
believe that they have no control over their fate and their behavior has little
impact on their performance.
5. Stability: Effective leaders must have a stable personality. They should not
change their opinion so easily and people can depend upon them and they have
high level of self-awareness.
6. Integrity: It refers to the behavior of a leader where he is honest and ethical and
people think that he is trustworthy and honestly refers to truthfulness.
7. Intelligence: intelligence refers to cognitive ability to think critically to solve
problems and make timely/creative decisions. People high in intelligence usually
have high score in IQ.
8. Flexibility: it refers to the ability to adjust to different situations. Leader needs to
be flexible because big changes are happening around them and they must have
the ability to change their objectives and goals according to the situation.
9. Sensitivity to others: sensitivity to others refers to understanding group
members as individuals and the leader must have empathy to put himself in their
place to understand their needs and wants in a kind of situation they are facing.

ACHIEVEMENT- MOTIVATION THEORY

The theory attempts to explain and predict behavior/performance of a person based on his
need for achievement, power and affiliation.
1. Need for achievement: the need for achievement is an unconscious concern for
excellence in accomplishment through individual efforts. People who are high for
need of achievement show excellence, seek challenges, desire concrete feedback
and take calculated risks. People who have low need of achievement don't show
excellence in work; try to avoid challenges and risks.

2. Need for power: the need for power is the concern for influencing others and trying
to get positions of authority, people who have high need for power show dominance.
They are self-confident and want to control other people behavior by using authority
and status. The people who have low need for power usually are less social able and
they don't have any desire to control other's people behavior.

3. Need for affiliation: the need for affiliation is the concern for developing, maintaining
and restoring close personal relationships with others around them. People who are
high in need for affiliation are very social able and they try to join a number of groups
and like to help others.
THEORY X: The theory x proposes that people's attitude tends to be more negative
and the manager must use coercive, autocratic leadership style by using external
control like threats and punishment to get the job done.

THEORY Y: The theory y proposes that most of the people take responsibility and
they like work and are creative. The leader can use participated style of leadership,
to make his sub ordinates achieve their objectives.

TYGLION EFFECT: It means that the leader's attitude and behavior make the
followers behave according to the expectation of the leader although their true
attitudes may not be according to the expectation of leader.

SELF-CONCEPT: The positive or negative attitude people have about themselves if

you have a more positive attitude, you will view yourself capable of doing many
things, and if you have a more negative attitude about yourself you might undermine
your capabilities.

ETHICAL LEADERSHIP

ETHICS: Ethics are the standard of right and wrong that influence a person's
behavior. The right behavior is called ethical behavior and the wrong Behavior is call
unethical behavior. In the business organizations there is always a list of code of
ethics about the Do's and Don'ts in that particular organization.

GUIDELINES FOR ETHICAL BEHAVIOR: There are 3 major ways to definite what's
ethical and what's not.
1. The Golden Rule: It says do onto others as you want them to do onto you.
2. The 4 Way Test: Rotatory International developed the 4 way test. If all the
answers to 4 questions are YES then the decisions may probably be ethical.
The Questions are:
1) "Is it the truth?"
2) "Is it fair to all concerns?"
3) "Will it build a good relationship with those concerns?"
4) "Will it be beneficial to all concerns?"

3. Stakeholder Approach of Ethics: This approach says to create a win-win

situation for relevant parties that are affected by the decisions; the
stakeholders usually are the followers, employees, government, customers,
suppliers, or society.
 CHAPTER 4 LEADERSHIP BEHAVIOR AND STYLE

LEADERSHIP STYLE: the combination of trait, skills and behavior a leader use as they
interact with their followers are called leadership style.

University of Michigan Leadership Model: This model identifies the leadership style
based on a survey using a questionnaire. The University of Michigan identifies 2 major
Leadership styles:

1. JOB CENTERED LEADERSHIP STYLE: It refers to the extent to which the leader takes
charge to get the job done. The leader closely directs the subordinate using rules and goals
and his main emphasis is to get the work done.

2. EMPLOYEE CENTRED LEADERSHIP STYLE: The employee centered behavior refers

to the extent to which the leader focuses on fulfilling the human needs of his subordinates
where he tries to develop close relationship with them. The leader is sensitive, trusts his
subordinates and he communicates and support and respect them and his main emphasis is
their welfare.

LEADERSHIP GREAT THEORY

This theory was proposed by Jone Moton in 1964, the theory identifies 5 Leadership styles
on the basis of two major dimensions of the University of Michigan in the Ohio State
University state university studies, (concern for people, concern for production)

The leadership grid has 5 Leadership styles:

1. The Impoverish Leader: (1, 1) They have low concern for both people and
production. The leader does the minimum that is required to influence the followers.
2. The authority compliance leader: (9 , 1) They have high concern for production
and a low concern for people, the leader focuses on getting the job done and treats
the subordinates like machines.
3. The Country Club Leader: (1 , 9) They have high concern for people and low
concern for production. The leaders try to maintain a friendly relationship with his
subordinates.
4. The Middle of the Road Leader: (5 , 5) They have a balanced approach. They have
middle/medium concern for the people and production. The leader strikes to maintain
satisfactory performance and morale.
5. The Team Leader: (9, 9) They have a high concern for production and have high
concern for people. The leader strikes to maintain maximum performance and
maximum employee satisfaction.