1

PRINCIPLES AND PRACTICE OF MANAGEMENT 10

Leadership
Definitions
1. The individuals who are the leaders in an organization,
regarded collectively.
2. The activity of leading a group of people or an organization or
the ability to do this.
3. Leadership is the process of influencing others to work hard
to accomplish important tasks. The capacity of individual for
leadership is revealed by the amount of influence he/she has
over the behavior or performance of other individual. If the
influence is significant, he can be an effective leader, but if the
influence is slight, he/she his little or no leadership ability.
Leadership involves:
a) establishing a clear vision,
b) sharing that vision with others so that they will follow
willingly,
c) providing the information, knowledge and methods to realize
that vision, and
d) coordinating and balancing the conflicting interests of all
members and stakeholders.
A leader steps up in times of crisis, and is able to think and act
creatively in difficult situations.
Unlike management, leadership cannot be taught, although it
may be learned and enhanced through coaching or mentoring.
Someone with great leadership skills today is Bill Gates who,
despite early failures, with continued passion and innovation has
driven Microsoft and the software industry to success.
e) The act of inspiring subordinates to perform and
engage in achieving a goal.
 2

Manager
Definition
An individual who is in charge of a
certain group of tasks, or a certain subset of a company. A
manager often has a staff of people who report to him or her.

As an example, a restaurant will often

have a front-of-house manager who helps the patrons, and
supervises the hosts; or a specific office project can have a
manager, known simply as the project manager. Certain
departments within a company designate their managers to be
line managers, while others are known as staff managers,
depending upon the function of the department.

Manager is a person who supports and

is responsible for the work of others
The main difference between leaders
and managers is that leaders have people follow them while
managers have people who work for them. A successful
business owner needs to be both a strong leader and manager
to get their team on board to follow them towards their vision of
success
Manager Vs Leaders
Managers Leaders
Focus on things Focus on people
Do things right Do the right things
Plan Inspire
Organize Influence
Direct Motivate
Control Build
 3

Follow Rules Shape entities

A manager is more than a
leader .Hence, a management
is wider term.
A manager fits well in
organized structure
A manager exercises different
functions of management to
achieve group goals.
Therefore .a manager performs
the functions of management in
a more holistic manner
The authority of manager
stems from his/her positional
role, that is, it is delegated
from the top management
To be successful as a
manager ,one has to be a good
leader
A leader need not be a manager
.Leadership is a narrow term
A leader may also be in an
informal group
A leader exerts influence on
people to voluntarily achieve
group goals. A leader performs
only one aspect of the various
management functions, that is
directing
A leader earns his/her authority
by virtue of his/her skills,
Knowledge ,and ability
Leader need not be manager

What are the five leadership skills?

5 Leadership Skills Found in Managers

 Communication. One of the most important skills of a

leader is the ability to communicate effectively. ...
 Awareness. A strong leader should also have an eye on the
business process to learn which ideas are effective and
which less so. ...
 Honesty/Integrity. ...
 Relationship Building. ...
 Innovation. ...
 4

 Developing Leadership Skills.

 Managerial leaders must be flexible, humble and down-

to-earth.
 Leaders emphasize soft skills, managers emphasize hard
skills and
 Managerial leaders emphasize conceptual skills. They
adopt autocratic, democratic or delegative leadership as
the situation requires and can shift from leader to manager
and vice versa
What are Different Leadership Styles?
1. Autocratic Leadership. Autocratic leadership style is
centered on the boss. ...
2. Democratic Leadership. ...
3. Strategic Leadership Style. ...
4. Transformational Leadership. ...
5. Team Leadership. ...
6. Cross-Cultural Leadership. ...
7. Facilitative Leadership. ...
8. (Free rain )Laissez-faire Leadership.
9. Bureaucratic leadership
 5

What are the characteristics of an autocratic leader?

The major autocratic leadership style
characteristics include: The autocratic leader retains all power,
authority, and control, and reserves the right to make all
decisions. Autocratic leaders distrust their subordinate's ability,
and closely supervise and control people under them

Examples. Adolf Hitler

Bureaucratic leadership
Bureaucratic leadership is leadership based
upon fixed official duties under a hierarchy of authority,
applying a system of rules for management and decision-making
What is a bureaucratic management style?
Bureaucratic Management Theory. Weber's
theory of bureaucratic management also has two essential
elements. First, it entails structuring an organization into a
hierarchy. Secondly, the organization and its members are
governed by clearly defined rational-legal decision-making rules
Bureaucratic Leadership
 Bureaucratic Leadership is where the manager manages
“by the book”
 Everything must be done according to procedure or policy
 This manager is really more of a police officer than a leader
 He or she enforces the rules
Democratic leadership, also known as
participative leadership or shared leadership, is a type of
 6

leadership style in which members of the group take a more

participative role in the decision-making process. This type of
leadership can apply to any organization, from private
businesses to schools to government.
What are the qualities of a democratic leader?
Characteristics of democratic leadership include
distribution of responsibility, empowering group members and
aiding group decision making. Advantages of democratic
leadership include creating employee job satisfaction and
encouraging innovation and creative solutions to
organizational issues and problems.

Laissez-faire
leadership, also known as delegative leadership, is a type of
 7

leadership style in which leaders are hands-off and allow group

members to make the decisions. Researchers have found that
this is generally the leadership style that leads to the lowest
productivity among group members.
Free rein leadership

What is a free rein leadership style?

Free-rein leadership, also called Laissez-Faire, is a
type of leadership style in which leaders are hands-off and
allow group members to make the decisions. Mangers set
objectives and employees are free to do whatever is appropriate
to accomplish those objectives.
Strategic leadership refers to a manager's potential
to express a strategic vision for the organization, or a part of the
organization, and to motivate and persuade others to acquire that
vision. Strategic leadership can also be defined as utilizing
strategy in the management of employees.
10 principles of strategic leadership
1. Distribute responsibility
2. Be honest and open about information
3. Create multiple paths for raising and testing ideas
4. Make it safe to fail
5. Provide access to other strategists
6. Develop opportunities for experience-based learning
7. Hair for transformation
8. Bring your whole self to work
9. Find time to reflect
10. Recognize leadership development as an ongoing
practice
 8

Transformational leadership is a theory of

leadership where a leader works with teams to identify needed
change, creating a vision to guide the change through
inspiration, and executing the change in tandem with committed
members of a group; it is an integral part of the Full Range
Leadership Model.

A team leader is someone who provides

guidance, instruction, direction and leadership to a group of
individuals (the team) for the purpose of achieving a key result
or group of aligned results.
 9

Along these lines, cross-cultural

leadership has developed as a way to understand leaders who
work in the newly globalized market. Today's international
organizations require leaders who can adjust to different
environments quickly and work with partners and employees of
other cultures.

Facilitative Leadership is a
people–centered, quality and results driven process of
developing and supporting a culture in the workplace that
facilitates goal achievement through effective relational
processes.

What does it mean to spin a story?

The transitive of "spin" has a meaning of forming
or creating as when a spider "spins" a web. ::: So when someone
"spins a tale" he or she is creating or forming a story. :: I think
this could have a different origin. In the UK the saying is often
'to spin a yarn' - a yarn being a story or tale
Example: - Media syndicate
 10

How can I improve leadership?

1. Get inspired. True motivation is inside oneself. ...
2. Think of the rest. ...
3. Push away the negative. ...
4. Recruit positive people. ...
5. Appeal to values. ...
6. Celebrate small achievements. ...
7. Reward your team. ...
8. Trust and delegate.
Increasing of leadership
a) Power
b) Interpersonal relationship
c) A rare ability to influence followers to apply the full
capability to a project
d) The style of the leader and the climate he develops

Principle of leadership
The first three principles of strategic
leadership involve nontraditional but highly effective
approaches to decision making, transparency, and innovation. 1.
Distribute responsibility. ... Top leaders should push power
downward, across the organization, empowering people at all
levels to make decisions
 11

Since people tent to follow those who offer

them a means of satisfying the personal goals, the more
managers understand what motivate their subordinates and more
they this understanding in their action ,the more effective they
are likely to be as leaders
Leadership Theories. Theories are
commonly categorized by which aspect is believed to define the
leader the most. The most widespread one's are:
1) Great Man Theory,
2) Trait Theory,
3) Behavioral Theories,
4) Contingency Theories,
5) Transactional Theories and
6) Transformational Theories.
Theory of leadership
1) The great man theory is a 19th-century idea according to
which history can be largely explained by the impact of
great men, or heroes; highly influential individuals who,
due to either their personal charisma, intelligence, wisdom,
or political skill used their power in a way that had a
decisive historical impact. The theory was popularized in
the 1840s by Scottish writer

Thomas Carlyle, but in 1860 Herbert

Spencer formulated a counter-argument that has remained
influential throughout the 20th century to the present:
Spencer said that such great men are the products of their
 12

societies, and that their actions would be impossible

without the social conditions built before their lifetimes
Great man theory
 Leaders are born not made.
 Great leaders will emerge when there is a great need
2) In psychology, trait theory (also called dispositional theory) is
an approach to the study of human personality. Trait theorists
are primarily interested in the measurement of traits, which can
be defined as habitual patterns of behavior, thought, and
emotion.
Definition
An approach for analyzing the structure of personality
by measuring, identifying and classifying similarities and
differences in personality characteristics or traits

3) Behavioral Theories. Behavioral theories of leadership are

based upon the belief that great leaders are made, not born.
Consider it the flip-side of the Great Man theories. Rooted
in behaviorism, this leadership theory focuses on the
actions of leaders, not on mental qualities or internal states.

4) A contingency theory is an organizational theory that

claims that there is no best way to organize a corporation,
to lead a company, or to make decisions. Instead, the
optimal course of action is contingent (dependent) upon the
internal and external situation. A contingent leader
effectively applies their own style of leadership to the right
situation.

The leaders ability is contingent upon

 13

various situational factors, including the leaders preferred

style, the capabilities and behaviors of followers and also
various other situational factors
5) Transactional Theory in the Teaching of Literature. ...
Transactional theory, as it applies to literary criticism and
the teaching of literature, suggests a "reciprocal, mutually
defining relationship" (Rosenblatt, 1986) between the
reader and the literary text.
 Employees are motivated by reward and punishment
 The subordinates have to obey the orders of superior
 The subordinates are not self-motivated
 The main goal of the follower is to obey the
instructions of the leader. The style can also be
mentioned as s “telling style”
6) Transformational Leadership Theory. ...
Transformational leaders focus on “transforming” others
to support each other and the organization as a whole.
Followers of a transformational leader respond by feeling
trust, admiration, loyalty, and respect for the leader and are
more willing to work harder than originally expected
 Transformational leadership is about implementing
new ideas, continual to change the maintain
relevance to get social change theory depend on
situation to improve into modern civilization

Ohio case study

 14

1) Initiating structure
2) Consideration
Consideration and Initiating Structure are two
dimensions of leader behavior identified in 1945 as a result of
the Ohio State Leadership Studies. ... According to the findings
of these studies, leaders exhibit two types of behaviors to
facilitate goal accomplishment:
1) People-oriented (consideration)
2) Task oriented (initiating structure)
To facilitate goal accomplishment

DEFINITION of Michigan Leadership Studies. ... The studies

identified two broad leadership styles:
1) An employee orientation and
2) A production orientation.
They also identified three critical characteristics of effective
leaders:
1) Task-oriented behavior
2) Relationship-oriented behavior, and
3) Participative leadership
1) Production Oriented
Emphasize the technical or task aspects of the job people are
means to an end .A leader who emphasizes the people aspects.
Job-Centered or Production Oriented: emphasizing task
accomplishment, production, and the technical aspects of the
job, with employees as a means for getting work done
2) Employee oriented
Emphasize interpersonal relations and accept individual
differences .A leader who emphasize the technical or
task aspects. Employee –Centered or Employee
oriented emphasizing personal relationship (i.e., the
 15

human relations aspects of the job)

The Michigan Leadership Studies
were the well-known series of
leadership studies that commenced at
the University of Michigan in the 1950s
by Rensis Likert, with the objective of
identifying the principles and types of
leadership styles that led to greater
productivity and enhanced job satisfaction among workers. The
studies identified two broad leadership styles – an employee
orientation and a production orientation. They also identified
three critical characteristics of effective leaders – task-oriented
behavior, relationship-oriented behavior and participative
leadership. The studies concluded that an employee orientation
rather than a production orientation, coupled with general
instead of close supervision, led to better results. The Michigan
leadership studies, along with the Ohio State University studies
that took place in the 1940s, are two of the best-known
behavioral leadership studies and continue to be cited to this
day.

(1.1)Impoverished Management
 16

The Impoverished or "indifferent" manager is

mostly ineffective. With a low regard for creating systems that
get the job done, and with little interest in creating a satisfying
or motivating team environment, his results are inevitably
disorganization, dissatisfaction and disharmony.
(1.9) Country Club Management
Country Club Management – High People/Low
Results. The Country Club or "accommodating" style of
manager is most concerned about her team members' needs and
feelings. She assumes that, as long as they are happy and secure,
they will work hard.
(9.9)Team Management
Staff closely involved in decision –making and
feel valued; consistent with McGregor Theory Y
(9.1)Task Management
Autocratic style, consistent with McGregor
Theory X. Workers has to complete tasks nothing else
(5.5)Middle of the Road Management
Compromises made to achieve acceptable
performance; thought to be the less effective leadership style

Fiedler's contingency theory states that there

are three elements that dictate a leader's situational control. The
three elements are
1) Task structure,
 17

2) leader/member relations, and

3) Positioning power.
1) Task structure-The degree to which the task is appropriately
structured and explained, with clear goals and procedures
2) Leader member relations –acceptance of the leader by
group members
3) Positioning power-Does the leader has the ability to lead and
control its subordinates through reward and punishment

Implication of Fiedler’s Contingency Model

 Do employees have clear instructions; is the job
structured and defined?
 How much positional power does the leader hold
on employees?
 The relationship between leaders and subordinates

Fiedler’s Contingency Model

Definition:
Fred Fiedler was the first amongst all the
leadership theorists to talk about the situational variables.
According to him, the effectiveness of the leadership style
depends on the situation. Thus, he along with his associates
identified the situational variables and studied about their
relationship with the appropriateness of leadership styles.
Fiedler’s contingency model is comprised
of three elements, Via, Leadership styles, situational variables
and the relationship between styles and situation. Let’s study
these in detail:
 18

1. Leadership Style: According to Fiedler, the leadership

style depends on two dimensions, task-oriented and human-
relations oriented. The task-oriented leader is primarily
concerned with the task performance and the
accomplishment of task goals. He gets satisfied with the
accomplishment of task performance. While, the manager
concerned with human relations lay more emphasis on
developing the interpersonal relationship with his
subordinates. In order to understand the attitude of a leader,
Fiedler developed a “Least Preferred Co-worker Scale
(LPC)”, wherein the leaders are asked to rate a person on a
scale ranging from lowest (1) to highest (8) on several
parameters to identify the worker with whom they least like
to work. Certain parameters on the LPC scale are:
pleasant/unpleasant, friendly/unfriendly, tense/relaxed,
supportive/hostile, cooperative/uncooperative,
quarrelsome/harmonious, etc. The leaders with high LPC
scores are said to be relationship-oriented whereas the ones
with the low LPC scores are considered as task-oriented.
2. Situational Variables: It has been
observed that, several situational factors influence the
effectiveness of the leadership styles, but however, Fiedler
has talked about three critical dimensions: Leader’s
Position Power: This element is concerned with the power
or authority a leader derives from the position held by him
in the organization. It has been observed, that a manager
with absolute power influences the behavior of others more
than the ones without power. Task Structure: The task
structure means the extent to which the task requirements
are clearly defined in terms of the task goals, processes and
relationship with other tasks. It has been observed, that
 19

with the clear definition of task structure the actions of the

subordinates can be well directed and their performances
can be well controlled, which may not be possible in case
of unclear task structure.
Leader-member Relations: This dimension talks about
the degree to which the members have trust, confidence and
faith in their manager.
3. Relation between Styles and Situations: This is the last
element of Fiedler’s contingency model, wherein he talks
about the relationship between the situation and the
appropriateness of leadership style. According to him, the
leadership effectiveness depends on the situation, as one
style favoring one situation may not necessarily be
appropriate in any other situation. Thus, it is the situation
that gives an opportunity to the leader to influence his
subordinates through the right kind of leadership style.
Thus, Fiedler’s contingency model posits that the situation
decides the style of leadership and influences the behavior of a
manager.
People become leader not only because of their
personality of their attribute but also because of various
situational factors and the interaction between the group leaders

1) Critical dimensions of the leadership situation

A) Position power
B) Task Structure
c) Leader member relations
 20

The path of leadership, the path goal theory

Robert house the man function of leader is to
clarity and set goals to the subordinate help
them and find the best path for achieving the
goals and remove obstacles
The path–goal theory, also known as
the path–goal theory of leader effectiveness
or the path–goal model, is a leadership theory developed by
Robert House, an Ohio State University graduate, in 1971 and
revised in 1996. The theory states that a leader's behavior is
contingent to the satisfaction, motivation and performance of his
or her subordinates. The revised version also argues that the
leader engages in behaviors that complement subordinate's
abilities and compensate for deficiencies.

According to Robert House and John Antonakis,

the task-oriented elements of the path–goal model can be
classified as a form of instrumental leadership

Path goal theory leader behavior into four groups

1) Supportive leadership
2) Participative leadership
 21

3) Instrumental leadership
4) Achievement oriented leadership
Transactional and Transformational leadership
Transactional leader identify what needs to be done to
achieve goals including charting roles and tasks rewarding
performed and providing the social needs of followers
Transactional leadership is a part of a style of
leadership that focuses on supervision, organization, and
performance; it is an integral part of the Full Range Leadership
Model. Transactional leadership is a style of leadership in which
leaders promote compliance by followers through both rewards
and punishments

Transactional leadership

Develop Team Customer Support Steering Team

Unsuitable as task Routine work and Inappropriate as
requires self- performance member highly
motivation and statistics suit this motivated decision
innovation leader style makers

Transformational leadership: Articulate a vision

inspires and motivate followers and create a climate favorable for
organizational changes
Transformational leadership is a theory of leadership where a
leader works with teams to identify needed change, creating a
vision to guide the change through inspiration, and executing the
change in tandem with committed members of a group; [1] it is an
integral part of the Full Range Leadership Model[2].
Transformational leadership serves to enhance the motivation,
 22

morale, and job performance of followers through a variety of

mechanisms; these include connecting the follower's sense of
identity and self to a project and to the collective identity of the
organization; being a role model for followers in order to inspire
them and to raise their interest in the project; challenging
followers to take greater ownership for their work, and
understanding the strengths and weaknesses of followers,
allowing the leader to align followers with tasks that enhance
their performance

Leadership Theories Timeline

 23

Assumptions
 Great Man theory(Late 1800s to early 1900s) :Leaders are
born ,Not made
 Group Theory(1930s): People are more committed to
actions when they are involved in the secession making
 Trait Theory (1940s-1950s): Certain personality traits
constitutes ability to lead
 Behavioral Theory(1960s): Leaders can be made ,success
dependent upon learning behavior
 Contingency Theory(1970s): The leaders ability to lead is
contingent upon various situation factors, including the
leaders preferred style, the capability of followers and other
situational factors
 Situational Theory: The best action of the leader depends
upon a range of situational factors
 Servant Theory : The leader has a responsibility to
followers
 Transactional Theory(1980s-1990s) : Leader encourage
participation through concern for a broader goal
 Adaptive Theory(2000 forward) : Leadership is a process
of mobilizing people to tackle though problems; leadership
can be learned; leadership can come from anywhere in an
 24

organization or a community
 Women’s Transformative Theory: Relational versus
transactional; Believes in making institutions mare
transparent , responsive , accountable ,and ethical
 Multicultural Theory :Engages in understanding and
interrupting the cycle of oppression on multiple level
;Acknowledges and brings forth strength and power in self
and other; Fosters the ability to imagine, envision and
create new realities