LEADERSHIP

Meaning of Leadership
Leading is one important function of management only next to planning and organizing. It is the
liveliest element in the management process. It initiates actions to translate the decisions into
concrete actions. Managers have to lead their subordinates through guiding and motivating.
Leading involves directing, influencing and motivating employees to perform essential tasks.
Every manager has to act as a leader in his area of operation. This means he has to guide,
instruct, lead and motivate his subordinates so as to use their skills, efficiency, capacity etc. for
the benefit of his Organization. He has to influence the behavior of his subordinates and get the
work done through their collective efforts. Leadership qualities are required in order to conduct
various managerial functions effectively. Each and every group of people engaged in a particular
activity needs a leader in order to guide, co-ordinate and control their efforts. In this sense,
leadership is required for the conduct of economic, social, political or cultural activities. George
Washington, Abraham Lincoln, Winston Churchill, Dr. Babasaheb Ambedkar, Mahatma
Gandhi, Nelson Mandella, John F. Kennedy are world known political leaders while Henry
Ford, J. R. D. Tata and S. L. Kirloskar are known leaders in the business world. Here, we are
concerned only with the managerial leadership. Managerial leadership is that part of a manager's
activities by which he influences the behavior of his subordinates towards a desired objectives or
results.
Leadership is followership. A good leader leads but does not push. Effective leadership can
guide a group towards certain ideals without exerting much force. Managers who possess the
quality of guiding and directing the subordinates under inspired impulses can be called business
leaders. Leadership is concerned with getting results through people and implies the organisation
of staff into productive teams, groups and departments. Leadership entails the creation of human
structures, their motivation and direction; the resolution of conflicts at the workplace, creating
vision for the entire business and providing resources in support of this.

Definitions of Leadership
 According to Koontz and O'Donnell, "Leadership is the ability of a manager to induce
subordinates (followers) to work with confidence and zeal."
 According to George Terry, "Leadership is the activity of influencing people to strive for
mutual objectives."
 According to Peter Drucker, "Leadership is the shifting of own's vision to higher sights,
the raising of man's performance to higher standards, the building of man's personality
beyond its normal limitations."

Differences between Management and Leadership

Three main points of difference between management and leadership are as follows:
 Leadership can exist in both organized and unorganized groups but management cannot
operate without formal organization structure. There can be leaders of completely
informal and unorganized groups. On the other hand, there can be managers only where
organizational structure creates such roles.
 A manager directs people through the use of formal authority. But a leader may or may
not have formal authority (i.e. the right to command) but he always has power (i.e. the
ability to influence). He influences people through the use of informal authority. Thus
important distinction hinges on the concept of authority.

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  The scope of management is wider than that of leadership. A manager has to perform all
the five functions of planning, organizing, staffing, directing and controlling. A leader
directs followers by influencing their behavior. A manager is more than a leader. He
plans, organizes and controls the effort of subordinates towards the accomplishment of
organizational objectives. Thus leadership is a part of management but not all of it. A
good leader need not necessarily be a manager but an effective manager must have many
of the qualities of a good leader. A manager influences the behavior of the subordinates
by enforcing formal authority. He must possess both power and ability to influence
subordinates.

Need and importance of leadership

Good leadership is essential to effective management. The significance of leadership is reflected
in the following functions:
 Motivating employees
 Morale building: the leader lifts a man’s vision to higher sights raises his performance
and builds up his personality.
 Creating confidence: a good leader serves as a father figure and member gain strength
and security by identifying emotionally with him.
 Coordination: leadership helps to unify individual efforts. Leadership is the cohesive
force which holds the group intact, the force that transforms chaos into order, the
disciplinary power that keeps the group working towards the goal, the electric current that
energizes human action and the insight that converts despair into hope and changes half-
hearted endeavor into superior performance.
 Facilitates change: convinces people about the need for change.
 Goal setting: leader provides guidance to the group by setting and interpreting the
objectives. He outlines the operations of the organization. He moulds the internal
relationships within the group.
 Representation: a leader is the representative of his followers. He serves as the personal
embodiment of the group and as the true guardian of its interests. He defends the integrity
of the group.

Styles of leadership
There are different styles of leadership. This classification is based on the methods used by the
leaders.
Edwin Flippo has defined leadership style as "a pattern of behavior designed to integrate
organizational and personal interest in pursuit of some objectives."
In the past several decades, management experts have undergone a revolution in how they define
leadership and what their attitudes are toward it. They have gone from a very classical autocratic
approach to a very creative, participative approach. Somewhere along the line, it was determined
that not everything old was bad and not everything new was good. Rather, different styles were
needed for different situations and each leader needed to know when to exhibit a particular
approach.

Four of the most basic leadership styles are:

1. Autocratic
2. Bureaucratic

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 3. Laissez-faire
4. Democratic

1) Autocratic Leadership Style

This 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.
This leadership style has been greatly criticized during the past 30 years. Some studies say that
organizations with many autocratic leaders have higher turnover and absenteeism than other
organizations. 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 organization
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
 There is low employee morale, high turnover and absenteeism and work stoppage

2) Bureaucratic Leadership Style

Bureaucratic leadership is where the manager manages "by the book¨ Everything must be done
according to procedure or policy. If it isn't covered by the book, the manager refers to the next
level above him or her. This manager is really more of a police officer than a leader. He or she
enforces the rules.
This style can be effective when:
 Employees are performing routine tasks over and over.
 Employees need to understand certain standards or procedures.
 Employees are working with dangerous or delicate equipment that requires a definite set
of procedures to operate.
 Safety or security training is being conducted.
 Employees are performing tasks that require handling cash.
This style is ineffective when:

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  Work habits form that are hard to break, especially if they are no longer useful.
 Employees lose their interest in their jobs and in their fellow workers.
 Employees do only what is expected of them and no more.

3) Democratic Leadership Style

The democratic leadership style is also called the participative style as it encourages employees
to be a part of the decision making. The democratic manager keeps his or her employees
informed about everything that affects their work and shares decision making and problem
solving responsibilities. This style requires the leader to be a coach who has the final say, but
gathers information from staff members before making a decision.
Democratic leadership can produce high quality and high quantity work for long periods of time.
Many employees like the trust they receive and respond with cooperation, team spirit, and high
morale. Typically the democratic leader:
 Develops plans to help employees evaluate their own performance
 Allows employees to establish goals
 Encourages employees to grow on the job and be promoted
 Recognizes and encourages achievement.
Like the other styles, the democratic style is not always appropriate. It is most successful when
used with highly skilled or experienced employees or when implementing operational changes or
resolving individual or group problems.
The democratic leadership style is most effective when:
 The leader wants to keep employees informed about matters that affect them.
 The leader wants employees to share in decision-making and problem-solving duties.
 The leader wants to provide opportunities for employees to develop a high sense of
personal growth and job satisfaction.
 There is a large or complex problem that requires lots of input to solve.
 Changes must be made or problems solved that affect employees or groups of employees.
 You want to encourage team building and participation.
Democratic leadership should not be used when:
 There is not enough time to get everyone's input.
 It's easier and more cost-effective for the manager to make the decision.
 The business can't afford mistakes.
 The manager feels threatened by this type of leadership.
 Employee safety is a critical concern.

4) Laissez-Faire Leadership Style

The laissez-faire 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 determine goals, make decisions, and
resolve problems on their own.
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 manager.
 The manager cannot provide regular feedback to let employees know how well they are
doing.
 Managers are unable to thank employees for their good work.
 The manager doesn't understand his or her responsibilities and is hoping the employees
can cover for him or her.

Varying Leadership Style

While the proper leadership style depends on the situation, there are three other factors that also
influence which leadership style to use.
1) The manager's personal background. What personality, knowledge, values, ethics, and
experiences does the manager have? What does he or she think will work?
2) The employees being supervised. Employees are individuals with different personalities
and backgrounds. The leadership style managers’ use will vary depending upon the
individual employee and what he or she will respond best to.
3) The company. The traditions, values, philosophy, and concerns of the company will
influence how a manager acts.

Theories of Leadership
1. Trait Approach Theory (The Traits Approach),
2. Behavioral Approach Theory, and
3. Contingency / Situational Approach Theory.

1) Trait Approach Theory (The Traits Approach).

Traits are distinguishing qualities or characteristics of a person, while character is the sum total
of these traits. The traits approach theory was one of the first attempts to explain the leadership
based on personal traits. Traits are inborn or acquired personal qualities of an individual. They
include physical qualities and the qualities of head and heart.
Traits theory refers to certain traits/characteristics which separate leaders from non-leaders. Such
traits enable some to rise above their followers. The basic traits useful for leadership include
height, energy, looks, knowledge and intelligence, imagination, self-confidence, integrity,
fluency of speech, mental balance, enthusiasm, courage, sociability, and friendliness and so on.
According to the traits theory, an individual possessing such traits is usually able to influence
others and gets the status of a leader. This suggests that a leader is quite different from an
average person in regard to personal qualities such as intelligence, perseverance and overall
personality including physical features.
The traits theory suggests that leaders are above the followers in regard to personal traits. A fair
combination of such traits makes them influential and impressive as compared to others.
Traits theory indirectly supports the view that leaders are born and not made. Researchers have
suggested different traits of leaders. Such traits are similar to physical, psychological, mental,
intellectual and other qualities which are normally treated as essential in the case of an ideal
leader. It may be noted that some traits are innate while some others can be acquired through
special efforts.

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The traits theory is based on the personal qualities (inborn/acquired) of an individual. Such
qualities play a positive role in building leadership. A person becomes leader due to such traits.
The theory is based entirely on personal traits and their contribution in developing leadership.

Traits of a Good Leader

Compiled by the Santa Clara University and the Tom Peters Group:
 Honest — Display sincerity, integrity, and candor in all your actions. Deceptive behavior
will not inspire trust.
 Competent — Base your actions on reason and moral principles. Do not make decisions
based on childlike emotional desires or feelings.
 Forward-looking — Set goals and have a vision of the future. The vision must be owned
throughout the organization. Effective leaders envision what they want and how to get it.
They habitually pick priorities stemming from their basic values.
 Inspiring — Display confidence in all that you do. By showing endurance in mental,
physical, and spiritual stamina, you will inspire others to reach for new heights. Take
charge when necessary.
 Intelligent — Read, study, and seek challenging assignments.
 Fair-minded — Show fair treatment to all people. Prejudice is the enemy of justice.
Display empathy by being sensitive to the feelings, values, interests, and well-being of
others.
 Broad-minded — Seek out diversity.
 Courageous — Have the perseverance to accomplish a goal, regardless of the seemingly
insurmountable obstacles. Display a confident calmness when under stress.
 Straightforward — Use sound judgment to make good decisions at the right time.

 Imaginative — Make timely and appropriate changes in your thinking, plans, and
methods. Show creativity by thinking of new and better goals, ideas, and solutions to
problems. Be innovative!

Limitations of Traits Approach Theory / Criticism of Traits Theory.

1. Examples of leaders without certain traits are common : According to this theory,
leadership is based on certain traits such as personality, intelligence, self-confidence,
courage and so on. However, it is very difficult to find out a particular leadership trait in
the greatest leaders of the world. Some known world leaders have had quite different
traits. People with limited education, limited training and without well developed
personality have proved to be great leaders. History is full of such examples of leaders.
2. Traits are not absolutely essential for leadership: As per the theory, many traits are
desirable in the case of leaders. However, none seems to be absolutely essential. Many
leaders are extremely popular even without certain useful traits.
3. Situational aspect is ignored: The theory fails to take into consideration the situation
within which the leaders have to function. There are instances in which a leader is
successful in one situation but may not be in another even when traits are same on both
the occasions. For example, Winston Churchill was Prime Minister of England and was
also war hero during the Second World War but was defeated in the general elections
under new situation i.e., after the end of World War II.
4. No reference to essential qualities: The theory fails to give the list of essential qualities
(innate and acquired) required for leadership purpose.

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 5. Superiority is not clearly stated: The theory states that a leader has superior personal
traits as compared to his followers. However, the nature or extent of superiority is not
given in a clear manner.

2) Behavioural Approach Theory.

The behavioral approach theory is an extension of the traits theory and is superior in certain
respects. The traits theory failed to explain what caused effective leadership. The behavioral
approach is based on the study of behavior of a leader. Leadership grows/develops not by traits
but by the acts or experience of a person. The behavioral theory is based on the assumption that
leaders are not born but they develop gradually by experience and maturity. The attention is
given to what leaders do (i.e., their behavior) rather than to what they are. A leader learns new
traits through his experience (behavior or acts). The focus point, here, is on what the leader does
while leading.
This behavioral theory suggests that a leader do not behave in the same manner under all
situations. Similarly, his actions are not identical under all situations which he faces. He adjusts
his behavior as per the need of the situation. There is an element of flexibility in his approach
and behavior. He studies the situation and adjust his leadership style accordingly. He adopts
different leadership styles to meet the need of different situations.
The most popular behavioral theories are:
a. Douglas McGregor's Theory 'X' and Theory 'Y', and
b. Dr. Rensis Likert's Four Management Systems.
The behavioral approach theory is practical in nature. It gives more attention to acts and behavior
of a person and not to the personal traits. Leadership develops by experience and not by inborn
traits. A leader has to acquire certain qualities by experience only.
Like the traits theory, the behavioral approach oversimplifies the complexities of the leadership
process. However, the behavioral approach is responsible for the development of a classification
of leadership styles which has provided managers suitable opportunities to secure greater insight
into their own behavior.

3) Situational Theory
Situational/Contingency Theory is a new addition to the existing theories of leadership. It is a
combination of different leadership styles such as autocratic, democratic and so on. An ideal
leader studies the overall prevailing situation, draws conclusions about the whole situation and
adopts the leadership style which is most appropriate to the prevailing situation. He is not
concerned with one specific leadership style but will use any style as per the available situation.
He is interested in achieving his objectives and is willing to use suitable means for this purpose.
Sometimes he may be democratic but may be autocratic on some other occasions. "Different
strokes for different folks" is his leadership approach. He will consider the group of employees
(skilled, unskilled, supervisory, etc.) to be handled and adjust his leadership style accordingly.
He will not use one leadership style for controlling/motivating all categories of employees. On
the other hand, he will be democratic with some categories of employees and autocratic with the
employees working at the other level. In other words, adjusting the leadership style as per the
need of the situation or as per the group of employees/subordinates to be handled is the essence
of situational leadership style. In brief, he studies the situation and adjust his leadership style
accordingly. He adopts a practical approach in order to get his work done i.e. achievement of
organizational objectives. In brief, in the situational leadership style, the leader adopts practical

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and flexible approach in decision-making. This is the essence of situational/contingency theory
or approach.
Contingency approach concludes that there is no "one best style" of leadership under all
conditions. Efficient leadership style varies with situations and an efficient leader is one who
studies the prevailing situation and finds out the leadership style which would be most suitable
for the given situation. Situational leadership style is flexible/adjustable and is normally more
effective as compared to other types of leadership.
The three most well-known situational theories are
 Fiedler's contingency theory
 Hersey-Blanchard's situational model
 House's path-goal theory

Qualities of leadership
Integrity, honesty, humility, courage, commitment, sincerity, passion, confidence, positivity,
wisdom, determination, compassion, and sensitivity
 Integrity
How deep are your convictions on the things you believe in? What do you believe in SO MUCH
about your work that you will stand up to anyone about it? How much are you willing to
compromise your important beliefs? To what extent do your behavior and the choices you make
align with your guiding values and principles?
Integrity means honesty and more. It refers to having strong internal guiding principles that one
does not compromise. It means treating others as you would wish to be treated. Many experts
believe that a solid sense of right and wrong and strong guiding principles are the most essential
and basic of all leadership skills or characteristics. Integrity promotes trust, and not much is
accomplished without trust.
 Vision/strategy
Can you see, do you see where your department, team, and organization are going? How often
do you talk about the ways in which what you are doing in your area are related to the overall
mission? Do you think and speak inspiringly about what the organization is doing and about the
future of the organization?
A leader must have a clear idea where his or her organization and unit are going beyond this
month’s results or this year’s budget. Where is it going in the long term? Even tactical leaders
must be clear about this and need to refer frequently to the vision, mission, and values of the
organization in their communications with others. Vision is another example of an essential
leadership quality.
 Communication
How much and how willingly do you speak out and keep information flowing? Conversely, can
you keep confidential information private? How often can and do you listen more than you speak
in conversations with your employees? How would you assess your communication skills with
each of your employees? How do you handle “bad news” when you receive it?
The chief complaint of employees in nearly every organization of all types, whether large or
small from any industry segment, is “lack of communication.” Communication in the context of
leadership refers to both interpersonal communications between the leader and followers and the
overall flow of needed information throughout the organization. Leaders need to learn to be
proficient in both the communication that informs and seeks out information (gives them a voice)

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and the communication that connects interpersonally with others. Communication is another
example leadership skill that must be cultivated by all leaders.
 Relationships
What is the level of trust and respectful feelings you have with each of your employees? With
each of your peers? How easy or difficult is it for you to initiate new relationships? Deepen
existing relationships?
Networking (the art of social “schmoozing”) is also a relationship skill. Relationships develop
from good interpersonal and group communication skills but relationship skills also go deeper.
A leader who likes dealing with people issues, who can initiate and deepen relationships with
others, has a great leadership advantage. This is a leader who can build a team and achieve
impressive results. This kind of leadership is based on personal power (the right kind of power),
not position power. Relationship-building is an example of an essential leadership quality.
 Persuasion
How persuasive and influential are you? Under what circumstances can you persuade others to
your point of view? To what extent do people value your opinion and follow your lead?
The ability to influence others and cause them to move in a particular direction is a highly
important skill in leadership. In fact, leadership is often defined as the ability to persuade or
influence others to do something they might not have done without the leader’s persuasion.
Your ability to be persuasive is directly related to how much people trust you and how good your
communication and relationships are. Persuasion (also called influence) is a good example of an
essential leadership skill.
 Adaptability
To what degree can you relinquish rigidity? Control? When is it easy and when difficult for you
to embrace change? How do you react when things don’t go as planned?
Adaptability and flexibility in not being bound by a plan are important success factors in
leadership today. The leader must move easily from one set of circumstances (the plan) to the
next (the plan is not going as expected) and take them all in stride, even when the circumstances
are unexpected. The good leader has to embrace change and see it as opportunity. The leadership
skill of adaptability is another example of a critical skill.
 Teamwork
To what extent do you value working cooperatively as part of a group? How do you promote
teamwork among those you lead? In what ways do you work collaboratively with your peers?
How do you handle team conflict?
No one person can do it all. That’s why a team, comprised of others with different skill sets, is
essential. A leader must know how to build and nurture such a team. A good leader knows when
to be a leader and when to be a follower. The best leaders are good followers when that's what is
needed. Building teamwork is another essential leadership skill example.
 Coaching and Development
How do you feel about developing others around you? How do you encourage, nurture, and
build the capacity of those you lead? How easy or hard is it for you to set your needs aside and
share control with others? Can/do you delegate well?
Developing others is an important role for a leader. Encouraging others to expand their
capabilities and take on additional assignments is part of the leader’s responsibility. Leaders who
feel threatened by the capabilities of others are challenged in this area. Coaching and
development are essential skills all leaders must cultivate.

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  Decision-making
How comfortable are you with having to make the “final decision” on things? Do you have any
tendency to decide too quickly without due consideration or, conversely, to gather data, analyze
and ponder endlessly and be unable to decide? In what areas do you struggle with making firm
decisions and standing up for what you believe?
A leader must be able to wade through information, comprehend what’s relevant, make a well-
considered decision, and take action based on that decision. Making decisions too quickly or too
slowly will impede your leadership effectiveness. Decisiveness is another example of an
essential leadership quality.
 Planning
How easy is it for you to put together plans for activities and projects, including contingency
plans (what will happen IF…)? How easily are you able to focus your attention and stick to your
plan, yet without being rigid about it? How do you decide when to push ahead or, instead, to
modify your plan?
Planning involves making certain assumptions about the future and taking actions in the present
to positively influence that future. To plan means to focus more strategically. Plans are important
for guidance and focus, but plans can seldom be cast in stone. Planning is an excellent and
necessary example leadership skill.

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