PRINCIPLES AND PRACTICE OF

MANAGEMENT

UNIT – IV

LEADING
 UNIT-IV
LEADING
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“Leadership is the art or process of influencing people so that they will strive willingly
and enthusiastically toward the achievement of group goals.” — Koontz and Weihrich
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4.0 INTRODUCTION
In any work situation, when two or more persons come together to work for a goal, a
structure or a group develops and the leadership emerges. The reasons for success
and failure with regard to business, sports, or any movement can be attributed to the
leadership. Hence, leadership can be defined as an activity that influences people to
strive willingly for group objectives. It exists only in relationships and only in the
imagination and perceptions of ‘followers’.

Even though there is a lot of disagreement over the meaning of leadership, it is

commonly agreed upon that leadership is very important since it makes a substantial
difference to organizations. It is typically a solution for most organizational problems.

4.1 LEADERSHIP
The word leader first appeared in the English language in the 1300s. It stems from the
root word leden, which means ‘to travel’ or ‘show the way’. Leadership is what a leader
does. It also means something that a leader does to a follower. The success of every
industrial enterprise is dependent upon the quality of its leadership.
Leadership involves the use of influence to get tasks accomplished through the group
members. It is the process of influencing people to work hard to accomplish their
organizational, departmental and individual goals. Since leading is one of the core
managerial functions of the management, typically all managers should be leaders.
The effectiveness of leadership usually depends on the relationship among the leaders
(say, managers), followers (subordinates), and the circumstances involved. As
leadership is a complex task, it needs to be developed through training, experience
and analysis.

 “Leader is someone who can influence others and who has managerial
authority.” — Stephen P. Robbins
 “Leadership is the process of directing and influencing the task related activities
of group members.” — James Stoner

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  “Leadership is the art or process of influencing people so that they will strive
willingly and enthusiastically toward the achievement of group goals.” —
Koontz and Weihrich

We may define leadership as a process of influencing people in such a way that they
willingly contribute to the accomplishment of intended goals.

4.2 CHARACTERISTICS OF A LEADER

While some leaders seem like they were naturally born that way, leadership skills can
be learned. It doesn’t matter one hasn’t led before. There are certain leadership
characteristics, traits, and skills that ultimately build the most effective leaders. Here
are the most important leadership qualities and skills to look for in a great leader.
1. Effective Communication. In a leadership position or role, good communication
skills are one of the leadership attributes that are absolutely crucial.
2. Active Listening. Strong leaders listen and pay attention to all of their followers,
employees, and every single individual person they are leading. Good leaders,
and even great leaders, are not born; they are made.
3. Integrity. C.S. Lewis says “Integrity is doing the right thing, even when no one
is watching”. A manager cannot expect his followers to be honest when he lack
integrity himself. Great leaders succeed when they stick to their word, live by
their core values, led by example, and follow-through.
4. Accountability. Strong and good leaders are accountable for the team’s results,
good or bad. They hold themselves and their employees accountable for their
actions, which creates a sense of responsibility among the team. They give
credit where credit is due, and take responsibility for blame when necessary.
5. Empathy. Empathy is understanding. Empathy is one of the fundamental
leadership qualities. Truly great leaders understand their followers’ motivations,
hopes, dreams, and problems so that they can forge a deep personal
connection with them.
6. Humility. A good leaders will never be effective if they’re more concerned with
themselves than with the well-being of their team. Being humble with their team
members will make a leader much more relatable and effective.
7. Resilience. Resilience is one of the essential leadership qualities that is earned
from experience. The true grit of a good leader is not how they perform during
good times, but how they roll up their sleeves and produce when times get
difficult.
8. Vision. A company’s vision only goes as far as a leader’s influence over others.
Good leaders clearly sets the organizational direction and exercises keen
decisiveness. Hence, every leader has to develop the leadership attributes of
vision and foresight.

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 9. Influence. Leadership and influence are not interchangeable and mutual
respect has to be earned, not given. Here are some things that leaders can do to
increase their influence: clearly state what they want, connect with people
emotionally, make others feel important etc.
10. Positivity. Leaders inspire their team not based on their own goals or outcomes,
but on their exhibited behaviour, life outlook, and positive attitude in any given
situation.
11. Delegation. A difficult transition for many leaders is shifting
from doing to leading. Many new leaders are accustomed to doing all the work
themselves and struggle to let others handle responsibilities on their own. Great
leaders must elevate their team – they must delegate the authority.
12. Confidence. Being confident in every situation is one of the leadership attributes
that a leader must develop. Truly great leaders are able to be confident during
any situation even if they feel fear or uncomfortableness.

4.3 FUNCTIONS OF A LEADER

The basic objective of leaders is to ensure that the group accomplishes its goals.
Leaders’ functions depend on the group being led, with actions adjusted to different
situations. Therefore, they have to:
 develop a feeling of mutual interest among the group members,
 promote cooperation and effective communication to ensure maximum
efficiency of the group, and
 foster a feeling of team spirit among the group members.

Broadly speaking, managers perform task and maintenance functions (Krech, 1948),
depending upon different positions and situations.
Task functions

Task functions are the activities which are performed to realize organizational goals.
They concern leaders as:

1. Policy-makers. The primary function of leaders is to establish group goals and

policies in accordance with broader policies and organizational goals.
2. Planners. Leaders plan with a time perspective and develop a methodology for
implementation, including use of human and physical resources. Participation
of team members in the planning process facilitates smooth implementation.
3. Executives. An important responsibility of leaders is to coordinate the activities
of the various groups and individuals in their team.
4. Experts. Leaders are expected to be experts in their areas of specialization and
their job, so as to enhance the ability and effectiveness of group members.

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 5. Group representatives. Leaders represent their groups and expound group
demands, achievements and constraints to superiors. This is the ‘gate-keeping’
function.
6. Controllers. Leaders control group activities and interpersonal relations within
the group so that the goals of the organization can be achieved effectively.
7. Administrator of rewards and punishments. Leaders have powers of reward and
of punishment, by virtue of the authority they enjoy. These powers can be used
for disciplining, motivating and controlling.
Maintenance functions

Maintenance functions are those activities that help in gratifying the needs of group
members. These relate to leaders as:

1. Arbitrators and mediators. Leaders act as arbitrator-negotiators and as

mediators in resolving intergroup conflicts and re-establishing good group
relations.
2. Ideal role models. Depending on the situation, leaders sometimes have to
portray themselves as ideal role models for the group members to follow.
3. Group symbols. Leaders have to augment, reinforce and maintain a sense of
belonging and involvement within the group. They therefore have to have a
strong sense of identity with their groups. Only then can they properly represent
the group.
4. Surrogates for individual responsibility. Leaders have to assume responsibility
for decision making when group members do not want to be involved in the
process and prefer to escape from responsibility.
5. Ideologists. Influential and effective leaders are a source of beliefs and basic
views for group members, who start accepting the leader’s ideas and thinking.
6. Father figures. Leaders serve as a perfect focus for the positive emotional
feelings of individuals in the group. They are considered ideal for identification,
transference and feelings of submissiveness.
7. Scapegoats. Leaders are an obvious target for the hostility and onslaught of
frustrated, disappointed or disenchanted group members. Since leaders are
responsible for group activities and achievement, they have to accept the blame
for failure.

4.4 LEADERSHIP AND MANAGEMENT

Leadership is a quality of influencing people, so that the objectives are attained
willingly and enthusiastically. It is not exactly same as management, as leadership is
one of the major element of management. Management is a discipline of managing
things in the best possible manner. It is the art or skill of getting the work done through

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and with others. It can be found in all the fields, like education, hospitality, sports,
offices etc.
One of the key difference between leadership and management is, management is for
formal and organized group of people only, whereas leadership is for both formal and
informal groups.
The major differences between leadership and management are as under:

1. Leadership is a virtue of leading people through encouraging them.

Management is a process of managing the activities of the organisation.
2. Leadership requires trust of followers on his leader. Unlike, Management, which
needs control of manager over its subordinates.

3. Leadership is a skill of influencing others while Management is the quality of

the ruling.
4. Leadership demands foresightedness of leader, but Management has a short
range vision.

5. In leadership, principles and guidelines are established, whereas, in the case

of management, policies and procedures are implemented.
6. Leadership is Proactive. Conversely, management is reactive in nature.

7. Leadership brings change. On the other hand, Management brings stability.

4.5 PRINCIPLES OF LEADERSHIP

The basic principles of leadership can be grouped as the following:
1. Leaders must know themselves and continuously seek self-improvement:
To know one’s self, one has to understand attributes like being, knowing, and
doing. Seeking self-improvement means continually strengthening such
attributes, and this can be accomplished through reading, self-study, classes,
etc.
2. Leaders must be technically proficient: As a leader, one must know their job
and the job of their followers.
3. Leaders must seek responsibility and take responsibility for their actions:
A leader must guide their organization to new heights. In the process of guiding,
things may go wrong at times. They must not blame others but take
responsibility themselves. They must analyse the situation, take corrective
action, and move on to the next action.
4. Leaders must make sound and timely decisions: Using problem solving,
decision making, planning, and various controlling tools, a leader must make
sound and timely decisions.

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 5. Leaders must set an example: A leader is a role model for followers. The
followers must not only be told what they are expected to do, but also be able
to see their leader guiding by example.
6. Leaders must know people and think about their well-being: Leaders must
know the nature of their followers and be nurturing and caring towards them.
7. Leaders must keep followers informed: Transparency in information
enhances commitment from the followers. Hence, a leader must know how to
communicate and keep their followers informed.
8. Leaders must develop a sense of responsibility in their followers:
Development orientation requires inculcating good character traits in followers,
which will help them to carry out their professional responsibilities.
9. Leaders must train followers as a team: Inculcating the team spirit and
culture enables a leader to accomplish goals.
10. Leaders must develop full capabilities of an organization: By developing
the team spirit, a leader develops an organization to its fullest capabilities.

4.6 STYLES OF LEADERS

The problem of a leadership style is basically concerned with deciding the extent to
which a manager should be dictatorial and the extent to which they are supposed to
be participative or consultative.
Leadership styles can be categorized as follows:
1. Authoritarian or leader-centred or autocratic style
2. Democratic or participative or consultative or group-centred style
3. Laissez-faire or Free-rein style
4. Paternalistic leadership
Autocratic style of leadership
The autocratic style of leadership is characterized by centralization of authority and
decision making and very limited participation by the subordinates of the group. The
autocratic leader accomplishes results through use of authority, fear of deprivation,
punishment and other coercive measures. Since it is negative in character, an
authoritarian approach will succeed only in the short run and will fail to motivate
subordinates for better performance in the long run. Resentment, absenteeism, and a
higher turnover rate for employees are some of the common consequences of this
approach. However, the autocratic style still deserves consideration because of the
following reasons:
 There may be very little time for participation, particularly in a situation of crisis.
 Confidential matters may not permit normal consultation.
 A leader may have more knowledge and thereby compensate for no
participation by subordinates.

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Democratic style of leadership
The democratic style of leadership allows substantial participation by members of the
group in the management and decision-making processes. Subordinates are
frequently consulted by the manager on wide-ranging problems and are allowed
sufficient freedom to communicate with the leader and also with their fellow
subordinates. The democratic style of leadership is based upon a positive assumption
about human beings. It encourages a cooperative spirit and development of the skills
of subordinates to make them capable of managing higher responsibilities. This style
of leadership contributes substantially to the satisfaction of the subordinates.
Disadvantages of Democratic Leadership style:
 A major limitation of the democratic leadership style is that their lack of secrecy.
 Democratic leadership style slows down the decision-making process.
 many times there may be disharmony among team members causing low
productivity.
 The democratic leader always faces the challenges of rejecting the opinions of
team members for choosing the most appropriate one.
 Consultation of subordinates is sometimes perceived as inefficiency of the
leader by the subordinates.

Laissez-faire or Free-rein style of leadership

In the laissez-faire style of leadership, leader gives all power to his subordinates to act
on their own. The leader defines goals and the limitations for action and then leaves
the remaining process. The leader is passive and assumes the role of just another
member of the group. If the subordinate is intelligent, highly qualified, and
experienced, and desires self-fulfilment, a manager may follow this approach without
much risk. laissez-faire leadership helps to bring creativity in the organization.
Disadvantages of Laissez-Faire Leadership:
 It lacks proper supervision, monitoring and controlling because of the freedom
given to the employees.
 Lack of clearly defined roles and responsibilities of superiors and subordinates,
may create confusion and misunderstanding in the group.
 Employee may ignore their superiors because of their weak position.
 Employees may also take advantage of the limited supervision, which can
impact productivity.

Paternalistic style of leadership

In the paternalistic style of leadership, the leader assumes their function like a father.
The leader treats the followers as members of a family and guides them as the head
of the family. They prefer to help the followers do their work, guide and protect them,
and keep them happy while working. This type of leader tries to provide their followers
with good working conditions, fringe benefits, and employee services. Followers under
this style of leadership work harder to accomplish the job.

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Advantages of paternalistic style of leadership
 High loyalty because employees feel acknowledged and their needs are taken
care of.
 Good behavior and work are always rewarded.
 Reduced absenteeism and quitting.
 Decisions are made with the employees’ best interests in mind.

Disadvantages of paternalistic style of leadership

 Managers, like parents, will occasionally have to reprimand employees in
unconventional ways, that sometimes upsets employees.
 Employees become more reliant on the leader to complete tasks in a timely and
suitable manner.
Which style is better?
A manager is not always free in the choice of leadership style in a given situation.
While a democratic style of leadership may work better, in some work situations, the
manager should be able to occasionally switch to the autocratic style so that people
are led effectively. Generally, the choice of the style of leadership depends upon the
following factors:
 Skill, personality, and values of the manager
 The expectations, aspirations, needs, and values of subordinates
 Factors such as type of structure, clarity or ambiguity in defining work and
objectives, nature of the problems, and the pressure of time
 Composition of the people in the group, for example, differences in education,
interests, motives, loyalty, etc.

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