Unit 5

Leading
Meaning
• Ability to influence and inspire behavior and activities of
group members. Normally, influencing people with mutual
consent between manager and employees is Leading.
Characteristics
• Process of interpersonal influence: manger influences
employees, leader influences follower
• Leaders and Followers: two major parts leader and
follower, without any one, leading is not possible
• Common goal: both leader and follower have same goal
• Continuous Function: never ending till the goal is achieved
• Situational: leading styles may different as per situation
• Rest on power: leadership highly depends on authority and
power possesses by a leader
• Blend of inspiration, motivation and communication:
combined form of inspiration, motivation and
communication
Qualities of Leadership
• Broadly leadership qualities may be classified into Personal
qualities and managerial qualities
Personal qualities
• Physical fitness: physically fit and fine, healthy, strong
• Self-confidence: self-confidence in every activities
• Intelligence: more intelligence than followers in their field
at least
• Vision/foresight: have future vision, knowledge, ideas
about the organization
• Sense of responsibility: responsible towards followers
• Human character: honesty, love, friendly, sympathy
• Optimistic: optimism of leader impact positively to the
followers
• Flexible: leader should be fitted with changing environment
Managerial qualities
• Technical knowledge: hard and soft technical knowledge
about work
• Moderate state of mind: control over emotion and serious,
capable to face any situation
• Organizing ability: proper division of work, labor, authority
delegation, responsibility, accountability, centralization
decentralization, departmentalization etc.
• Human relation skill: good human relation internally and
externally
• Wider perspective: should not narrow minded
• Ability of judgment: impartiality should be taken in judging
employees
• Psychological knowledge: know psychology and behavior
of each employees
Leadership Styles
Autocratic Leadership
• Also known as authoritarian leadership, dictatorial
leadership, all decision making power is centralized in sole
person, there is one way communication only from leader
to followers, it is suitable for small organization where
employees are incompetent
Advantages
• Provide strong motivation: as commanded by leader
directly, followers are highly motivated
• Quick decision: sole authorized person make quick decision
• Strict discipline: autocrats impose strict rules and
regulation to followers
• Frequent implementation: whatever leader wants,
immediate implementation of plans and policies
Disadvantages
• Negative motivation style: there is high punishment,
reprimand and threats to employees
• Decrease organizational efficiency: employees should work
under pressure, not interested to use their skill properly
• Lack of creativity: employees should follow instruction of
leader, they cannot do anything independently, it kills the
creativity of them
• Instability: insecurity, unsafe, work pressure among
employees leads organizational instability
Democratic Leadership
• Also known as participative leadership, everyone can
participate in decision making of organizational work,
authority is delegated to every subordinates, it is very
popular and widely applicable leadership style, two way
communication among each other
Advantages
• Sound decision: participation of many more employees
help to make sound decision
• Moral development: authority delegation and participation
promote moral development among subordinates
• Creativity: own creativity is highly promoted by
empowering employees in decision making
• Developed managerial skill: from lower level, managerial
skills like planning decision making controlling etc, are
developing
Disadvantages
• Delay in decision: many more employees participation in
decision making consumes more time
• Inefficient and incompetent employees: misuse of
authority and power in case of inefficient and incompetent
staffs
• Absence of discipline: employees will be out of control
• Expensive: followers demand must be fulfilled, so it is costly
Laissez Faire Leadership
• It is modern type of leadership, also known as free
rein leadership, leader is just name, all authority
delegated to followers, followers are also very
conscious, only in exceptional case leader plays role.
Advantages
• Quick decision: as followers are highly qualified and
have full authority, decision making is prompt
• Moral development: they are free from monitoring
and supervising of leader, leader also delegates full
authority to them
• Innovative/creativity: as they are free from leader,
they can use their own concept and skill in work
• Less burden to leader: leader is free from employees
side, as they can do their work independently
Disadvantages
• Not fitted for incompetent followers: if the follower are
not competent need regular guidance and instructions of
leader, this leadership style is not fitted
• Chances of misuse authority: some of dishonest followers
may misuse authority granted by leader
• Non-uniformity in performance: as every follower is free in
work performance, they perform their own way and lack
uniformity
• Exceptional case: it is rare in practical, only in developed,
self conscious follower case, it is fitted
Managerial/Management Ethics
• It is moral principles of individual person of particular group
or profession which determine the individual behavior.
Managerial ethics is the standard of behavior that guide
individual manager in their work.
Importance
• Promote goodwill and image: ethics maintain uniformity in
organization performance
• Maintain better relation with stakeholders: binding with
common code of conduct to all so have better relation with
all
• Less interference from govt.: for ethical organization, there
is no interference from govt.
• Promotes fair competition: as ethic is equal to all, promote
fairness in organization
• Promote social responsibilities: ethic makes individual
person aware and alert to the society and make feel their
responsibilities
• Improves working environment: good working
environment as there is no interference from all sides
• Increase market share: ethical organization increase market
share and expand business having good working
environment
Understanding Individual Differences and Psychological
contract
• A leader should understand that individual is different from
each other, different in characteristics, needs, desires,
objectives, ideas, view, opinion, behavior, psychology etc.
• They may differ in ability, attitudes, beliefs, emotions etc.
• A leader need to understand all individual behavior to
understand organization behavior
• Individual behavior is influenced by internal factors and
external factors
• Internal factors include biological and psychological
characteristics of individual whereas external factors include
environmental factors internal and external environmental
factors
• Knowing individual psychology to get work done through
people in organization and contracting with them in different
psychological aspect in working together is called
Psychological Contract
Group
• S. P. Robbins- A group is defined as two or more individuals
interacting and interdependent, who have come together
to achieve particular objectives.
• Moorhead & Griffin- Group is two or more people who
interact with one another such that each person influences
and is influenced by the other person.
Features
• Collection of two or more people
• Common goal or interest
• Interaction and interdependent
• Collective identity
• A stable structure
Types of Group
• Formal Group: Command Group and Task Group
• Informal Group: Interest Group and Friendship Group
Motivation
• To encourage and inspire employees to do or not to
do something is motivation. It is a process of
encouraging individual to do assign job according to
the best of their ability. Motivation can be done
positive or negative way, financially or non-financially.
Features
• Psychological process
• Continuous process
• Complex and unpredictable
• Pervasive
• Influence in behavior
• Positive or negative
• Financially or non-financially
• Concentrated on whole individual
Importance
• Leads to profitable operation: as motivated staff has high
energy and power, reducing cost, effort and time leads to
profitable operation
• High level of productivity: by minimizing unnecessary cost,
improve quality and productivity
• Best remedy of resistant to change: motivated employees
easily accept the change in organization
• Effective use of human resource: encourage every
employee to do work in their best ability
• Satisfaction of employees: motivation increase moral
development and make them satisfied
• Minimizes strikes and disputes: motivated employees
never disturb the organization operation
• Stability of workforce: motivation leads satisfaction in
employees, and satisfied employees are stable in
organization
• Basis of coordination: only motivated staffs are ready to
cooperate each other
• Minimize supervision cost: no need to supervise motivated
employees, they are self control
• Achievement of organizational goal: only through
motivated staffs, organizational goals can be achieved
Motivation Techniques
• Financial incentives: by providing extra financial benefits
besides salary employees can be motivated with bonus,
increment, incentives, commission etc.
• Participation: by increasing participation of employees in
minor to major decision making, they can be motivated
• Delegation of authority: granting authority to staffs,
motivation can be done
• Job security: making employees permanent and providing
different future security facilities, they are motivated
• Job enlargement: expanding the new job and
making job bigger and bigger, motivation can be
done
• Job enrichment: making the job more challenging
and interesting, employees can be motivated
• Job rotation: shifting from one job to another job
making them new feelings and new opportunities to
learn, they are motivated
• Reinforcement: giving priority and emphasizing
employees talent and skill, motivation is done
• Quality of work life: providing better working
environment like advance technology, lighting,
ventilation, canteen, parking, rest room, hot and
cold water etc quality of work life can be increased
• Competition: bringing competition among
employees also they are motivated
Communication
• It is process of transferring message/information
from sender to receiver so that receiver would
understand the message. In each and every step of
management, communication is very essential
Features
• At least two person: at least sender and receiver
must be present in communication, may also present
group of people, organization etc.
• Two way: message flow from sender to receiver and
feedback and response flow from receiver to sender
• Indispensable function: in every management
function, communication is done, without which
management can not be operated
• Continuous function: till the existence of
organization, communication is done
continuously
• Persuasive: actually from communication one can
persuade other, motivate and encourage them
• Forma/informal: official and written
communication is formal whereas non official and
friend circle communication is informal
• Oral/written/symbolic: spoken and vocal
communication is oral, letter, mail and other
writing communication and by using sign symbol
and symbolic language is symbolic
communication
Communication Network
• It is structure and pattern of communication process
performed. There are mainly four different types of
networks
• Wheel network: here top level manager will be
source of information and disseminates information
to other receiver. It is also called decentralized
communication
• Chain network: here information is flowed from
superior level to lower level through different
hierarchies
• Circle network: cyclic network, horizontal flow of
message just to persons next to his right or left
• All channel network: information flow in all direction,
so also called all directional network. Members can
communicate to all without any formal restriction
Communication Process
• Sender: origin of communication, source of message and
information
• Encoding: way of expressing message and information in
sender’s mind to transfer it
• Message: encoded ideas, concept information of sender
• Medium: it is means and vehicle which carry message
from sender to receiver
• Receiver: it is the target destination of communication
• Decoding: the way of grabbing messages from sender,
understandability of receiver is decoding
• Feedback: after receiving message as per understanding
whatever response is shown by receiver is feedback, may
be in oral form, written or symbolic form
• Noise: unwanted and unnecessary disturbance internally
or externally which affect in effectiveness of
communication
Active Listening
• The effectiveness of communication is depend upon active
listening of receiver. For full understanding of messages,
active listening capacity of audience is required. Same
message is decoded by receivers differently due to active
listening capacity of receiver.
• Different techniques may apply for active listening
• Focus: avoiding side conversation
• Paraphrase: listening speaker and repeat back him what
was said but in his own words
• Acknowledgement: the listener should be acknowledged
about the expected response
• Ask open minded questions: listener must be confirmed
about wh questions by speaker
• Non verbal cues: by symbolic communication
• Summarize and restate: summarize the overall stories of
speaker in important points
Benefits of Active listening
• Better communication
• Possibility of long term relationship
• Better control of solution
• Better solution of problem
• Increased satisfaction with person
Types of communication
• Formal communication: official communication, mainly
written forms, downward. Upward and sideward
communication
• Informal communication: non official, among family,
friends, mainly oral communication
• Interpersonal communication: between two or more
person mainly oral and written
• Non verbal communication: symbolic communication
Barriers to Effective Communication
• Organizational barriers: barriers within organization due to
organizational factors like organization plans, policies,
objectives size, structure, decentralization, scalar chain,
rules and regulations etc.
• Physical barriers: physical environment and structure of
organization create physical barrier. It includes office design,
layout, distance, noise, working environment, location etc.
• Psychological barriers: psychology of both senders and
receivers affect in communication. Individual perception,
attitude, belief, superiority and inferiority complex, mental
disturbance etc are the psychological factors influence
communication.
• Semantic barriers: barriers created by languages, words,
sentences etc. If there is ambiguity, complex, harsh
language used in communication, create barriers.
• Technological barriers: technological defects affect in
communication. No network, information overload etc.