We are using this opportunity to express our gratitude to everyone who supported us throughout the

course of this PGPM project. We are thankful for their aspiring guidance, invaluably constructive
criticism and friendly advice during the project work. We are grateful for sharing her truthful and
illuminating views on a number of issues related to the project. We express our warm thanks to Dr.
Shalini Khandelwal for her support and guidance at IBS Gurgaon

Table of Contents

Chapter -1 Introduction......................................................................................... 1

Chapter -2 Trait theories of leadership………………………………………………………………….. 2

Chapter – 3 Behavioural Theories of leadership…………………………………………………….

Chapter- 4 Charismatic Leader

Chapter -5 Transactional and transformational leaders

Chapter- 6 Key learning

References………………………………………………………

Introduction

Leadership is any behaviour that influences the actions and attitudes of others to achieve certain results.
Leadership in itself is neither good nor bad. Societal values determine whether the leadership of an
individual is positive or negative, based on the goals and results being pursued and, on the means, used
to influence others. There are many examples of “good” (e.g., moral, noble, virtuous) and “bad” (e.g.,
corrupt, immoral) people who have been extremely effective leaders.

How Do People Become Leaders?

Broad categories such as the following can be used to illustrate how people attain leadership positions.
Examples are given for each category described below.

· Qualified: Some people become leaders because they achieve the necessary certification or credentials
for a position. They may otherwise meet established criteria or prerequisites that persons in authority
over them associate with the leadership position.

Examples: lifeguard, teacher

Merited: Some people become leaders primarily through faithful and enthusiastic participation and
competent performance over time. These leaders may be considered to have “paid their dues.”
Examples: Olympic flag bearer, captain of a high school football team

Captured: Some people become leaders by campaigning for a position, being “political,” or otherwise
manoeuvring themselves into a position. Leaders in this category may also take possession or seize the
position through positive or negative means.

Examples: school principals, city mayor, dictator

Identified: Some people become leaders because they possess personal or professional qualities that
are recognized as beneficial and undeniable, and are appropriate for meeting the team’s needs at a
particular time.

Examples: project manager of a business, military general

Defaulted: Some people become leaders simply because other team members are unwilling or unable
to accept the position or responsibility.

Example: someone in a small discussion group needs to lead the discussion

The categories also overlap, resulting in many ways that someone can attain a leadership position.
Leaders can perform at high levels and make valuable contributions to their teams, regardless of how
they were selected or designated as leaders.

TRAIT THEORIES OF LEADERSHIP

Theories that consider personal qualities and characteristics that differentiate leaders from non-leaders.
Not very useful until matched with the Big Five Personality Framework

Essential leadership traits are:

Ø Extroversion

Ø Conscientiousness

Ø Openness

Ø Emotional intelligence

LIMITATIONS OF TRAIT THEORIES

No universal trait found can predict leadership in all the situations.

Unclear evidence of the cause-and-effect relationship of leadership and traits.

Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

Assumes that leaders are born and not made.

Traits do not generalize across situations

BEHAVIORAL THEORIES OF LEADERSHIP:

Theories proposing that specific behaviors differentiate leaders from non-leaders.

As per the trait theory, leadership was inherent

But according to behavioral theory, leadership is a skill set and can be taught to anyone, so we must
identify the proper behaviors to teach potential leaders.

We could train people to be leaders.

Important Behavioral Studies

Ohio

Initiating structure

Consideration

Michigan

Employee-oriented

Production-oriented

OHIO STATE STUDIES

Ohio State Studies sought to identify independent dimensions of leader behavior. Two dimensions are:

INITIATING STRUCTURE

The extent to which a leader is likely to define and structure his or her role and those of subordinates in
the search for goal attainment.

It includes behavior that attempts to organize work, work relationships, and goals

A leader high in initiating structure is someone who assigns group members to particular tasks, expects
workers to maintain definite standards of performance, and emphasizes the meeting of deadlines.

CONSIDERATION

The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for
subordinates' ideas, and regard for their feelings.
A leader high in consideration helps employees with personal problems, is friendly and approachable,
treats all employees as equals, and expresses appreciation and support.

In a recent survey, when asked to indicate what most motivated them at work, 66 percent of employees
mentioned appreciation.

CONTINGENCY THEORIES

While trait and behavior theories do help us to understand leadership, an important component is
missing, the environment in which the leader exists.

Contingency theory adds this additional aspect to our understand of leadership.

There are four contingency theories:

ØFiedler's model

ØHersey and Blanchard's situational leadership theory

ØPath-Goal theory

ØLeader participation model

Fiedler Model

Effective group performance depends on the proper match between leadership style and the degree to
which the situation gives the leader control.

Assumes that leadership style (based on orientation revealed in LPC questionnaire) is fixed

Considers Three Situational Factors:

Leader-member relations: degree of confidence and trust in the leader

Task structure: degree of structure in the jobs

Position power: leader's ability to hire, fire, and reward

For effective leadership: must change to a leader who fits the situation or change the situational
variables to fit the current leader.
IDENTIFYING LEADERSHIP STYLE

Fiedler believes a key factor in leadership success is the individual's basic leadership style. He created the
least preferred co-worker (LPC) questionnaire to identify that style by measuring whether a person is
task or relationship oriented.

The LPC questionnaire asks respondents to think of all the co-workers they have ever had and describe
the one they least enjoyed working with by rating that person on a scale of 1 to 8 for each of 16 sets of
contrasting adjectives (such as pleasant-unpleasant, efficient–inefficient, open-guarded, supportive-
hostile).

If you describe the person, you are least able to work with in favorable terms (a high LPC score), Fiedler
would label you relationship oriented.

If you see your least-preferred co-worker in unfavorable terms (a low LPC score), you are primarily
interested in productivity and are task oriented.

HERSEY AND BLANCHARD'S SITUATIONAL LEADERSHIP THEORY

Considers Leader Behaviors (Task oriented & Relationship oriented)

Assumes Leaders CAN change their behaviors

Considers Followers as the Situation

Follower Task maturity (ability & experience)

Follower Psychological maturity (willingness to take responsibility)

Assumptions

Leaders can and should change their style to fit their followers' degree of readiness (willingness and
ability)

Therefore, it is possible to TRAIN leaders to better fit their style to their followers.
PATH GOAL THEORY

Developed by Robert House

A theory that states that it is the leader's job to assist followers in attaining their goals and to provide the
necessary direction and/or support to ensure that their goals are compatible with the overall objectives
of the group or organization.

Four types of leaders

Directive: focuses on the work to be done

Supportive: focuses on the well-being of the worker

Participative: consults with employees in decision making

Achievement oriented: sets challenging goals

According to path-goal theory, whether a leader should be directive or supportive or should

demonstrate some other behavior depends on complex analysis of the situation. It predicts the
following:

Directive leadership yields greater satisfaction when tasks are ambiguous or stressful than when they are
highly structured and well laid out.

Supportive leadership results in high performance and satisfaction when employees are performing
structured tasks.

Directive leadership is likely to be perceived as redundant among employees with high ability or
considerable experience.

LEADER PARTICIPATION MODEL

Proposed by Victor Vroom and Phillip Yetton's.

How a leader makes decision is as important as what is to be decided.

A leadership theory that provides a set of rules to determine the form and amount of participative
decision making in different situations.

Rule based decision tree to guide leaders about when and when not to include subordinate participation
in decision making.

LEADER-MEMBER EXCHANGE (LMX) THEORY

Leaders select certain followers to be “in” (favorites) Based on competence and/or compatibility &
similarity to leader

"Exchanges" with these "In" followers will be higher quality than with those who are “Out"

RESULT: "In" subordinates will have higher performance ratings, less turnover, and greater job
satisfaction.

CHARISMATIC LEADERSHIP

Max Weber, a sociologist, defined charisma (from the Greek for “gift”) more than a century ago as “a
certain quality of an individual personality, by virtue of which he or she is set apart from ordinary people
and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or
qualities.

These are not accessible to the ordinary person and are regarded as of divine origin or as exemplary,
and on the basis of them the individual concerned is treated as a leader.

KEY CHARACTERISTICS OF CHARISMATIC LEADER

Vision and articulation: Has a vision-expressed as an idealized goal—that proposes a future better than
the status quo; and is able to clarify the importance of the vision in terms that are understandable to
others.

Personal risk: Willing to take on high personal risk, incur high costs, and engage in self-sacrifice to
achieve the vision.

Sensitivity to follower needs: Perceptive of others' abilities and responsive to their needs and feelings.

Unconventional behavior: Engages in behaviors that are perceived as novel and counter to norms.

HOW DO CHARISMATIC LEADERS INFLUENCE FOLLOWERS?

1) Articulate a Vision
2) Create a Vision Statement

3) Create new set of values

4) Demonstrate the Vision

TRANSACTIONAL AND TRANSFORMATIONALLEADERS

Leaders who guide or motivate their followers in the direction of established goals by clarifying role and
task requirements are called Transactional Leaders.

Leaders who inspire followers to transcend their own self-interests and who are capable of having a
profound and extraordinary effect on followers are called transformational leaders.

APPROACHES OF TRANSACTIONAL LEADERS

Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance,
recognizes accomplishments.

Management by Exception (active): Watches and searches for deviations from rules and standards, takes
correct action.

Management by Exception (passive): Intervenes only if standards are not met.

Laissez-Faire: Abdicates responsibilities, avoids making decisions.

APPROACHES OF TRANSFORMATIONAL LEADER

Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust.

Inspirational Motivation: Communicates high expectations, uses symbols to focus efforts, expresses
important purposes in simple ways.

Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving.

Individualized Consideration: Gives personal attention, treats each employee individually, coaches,
advises.

OTHER TERMS RELATED TO LEADERSHIP

Authentic Leaders
Leaders who know who they are, know what they believe in and value, and act on those values and
beliefs openly and candidly. Their followers would consider them to be ethical people.

Socialized Charismatic Leadership

A leadership concept that states that leaders convey values that are other centered versus self-centered
and who role-model ethical conduct.

Servant Leadership

A leadership style marked by going beyond the leader's own self-interest and instead focusing on
opportunities to help followers grow and develop

Trust

A positive expectation that another will not act opportunistically.

Followers who trust their will align their actions and attitude with the leader's behaviors/ requests.