UNIT 4

Leadership Concept

Leadership is defined as the action or an act of guidance of leading a group of people or an organisation.
Leadership is a powerful social cycle that includes collaborations among individuals. Leadership is a practical
skill and a research area that helps individuals to influence or lead teams, organisations, or individuals. Great
leaders are created through an endless cycle of self-study, training, preparing and experience.

Great leaders are persistently working and concentrating on improving their administration aptitudes; they are
not settling for the status quo. Authority is a cycle by which an individual impacts other to achieve a target and
coordinates the association such that it makes it more durable and cognizant. Leaders complete this cycle by
applying their administration ascribes, for example, – convictions, values, morals, character, information, and
abilities.

Role of Leadership

1. Required at all levels- Leadership is a function which is important at all levels of management. In the top
level, it is important for getting co-operation in formulation of plans and policies. In the middle and lower
level, it is required for interpretation and execution of plans and programmes framed by the top
management. Leadership can be exercised through guidance and counselling of the subordinates at the time
of execution of plans.

2. Representative of the organization- A leader, is said to be the representative of enterprise. He/she must
represent the concern at seminars, conferences, general meetings, etc. His/her role is to communicate
rationale of enterprise to outside public. He/she is also representative of the own department which he leads.

3. Integrates and reconciles the personal goals with organizational goals- A leader through leadership
traits helps in reconciling/integrating the personal goals of the employees with the organizational goals. A
Leader is trying to co-ordinate the efforts of people towards a common purpose and thereby achieves
objectives. This can be done only if he can influence and get willing co-operation and urge to accomplish
the objectives.
4. He/she solicits support- A leader is a manager and is a person who entertains and invites support and co-
operation of subordinates. This he can do by his personality, intelligence, maturity, and experience which
can provide him positive result. In this regard, a leader must invite suggestions and implement them into
plans and programmes of enterprise. This way, he can solicit full support of employees which results in
willingness to work and thereby effectiveness in running of a concern.
5. As a friend, philosopher, and guide- A leader must possess the three-dimensional traits in him. He can be
a friend by sharing the feelings, opinions, and desires with the employees. A Leader can be a philosopher by
utilizing his intelligence and experience and thereby guiding the employees as and when time requires.
he/she can be a guide by supervising and communicating the employees the plans and policies of top
management and secure their co-operation to achieve the goals of a concern. At times he can also play the
role of a counsellor by counselling and a problem-solving approach. He can listen to the problems of the
employees and try to solve them.

Need of Leaders

1. IMPROVES COMMUNICATION: One of the most important duties of a leader is to facilitate

communication within the workplace. Clear and concise communication is essential for any team to function
correctly. Effective leaders will make it a point to always keep lines of communication open and create an open
and inclusive environment where everyone feels comfortable sharing their ideas. By ensuring employees have a
forum to voice their concerns and opinions, a leader can encourage a work culture where new ideas are
welcome, and misunderstandings are avoided.

2. CREATES A BETTER WORK ENVIRONMENT: Leaders have a profound impact on their overall work
environment. They create an atmosphere of trust and respect, which in turn fosters creativity and collaboration.
Employee morale is also higher in workplaces with strong management, leading to greater motivation.

3. IMPROVES PRODUCTIVITY: An effective leader makes all the difference in a team’s productivity.
When employees feel valued and motivated, they are more likely to be productive. On the other hand, a poor
leader can cause employees to become disengaged and uninterested in their work. A team that is led effectively
will be more productive, efficient, and successful overall.

4. INCREASES EFFICIENCY: A productive leader can help to improve efficiency by getting the most out of
their team. Leaders can help improve efficiency by ensuring everyone is working towards the same goal and
doing what they do best. They can provide guidance and direction and delegate tasks to make the most of
everyone’s strengths.

5. DECREASES MISTAKES: A capable leader is essential for any workplace that wants to minimize
mistakes and run smoothly, especially important in high-pressure environments where mistakes can have
serious consequences. A leader needs to be able to identify potential problems early on and head them off to
avoid costly mistakes.

6. MOTIVATES EMPLOYEES: Good leaders know how to effectively motivate their employees. They
understand that people are different and that what works for one person may not work for another. As a result,
they take the time to get to know their team members and discover what makes them tick. They also create a
positive work environment where employees feel valued and appreciated. When employees feel like they are
part of a team and that their contributions matter, they are more likely to be engaged and motivated.

7. SETS A GOOD EXAMPLE FOR OTHERS: An effective leader knows that setting a good example is one
of the best ways to inspire others. After all, people are more likely to follow someone they see as a role model.
That’s why it’s so crucial for leaders to lead by example. By behaving in a way that exemplifies the values and
goals of their team or organization, they can show others what it means to be a committed and successful
member.

8. INSPIRES HARD WORK: A great leader is able to instil a sense of purpose in their team. When people
feel like they are working towards something bigger than themselves, they are more likely to be willing to put
in the hard work required to achieve it. An effective leader knows how to tap into this sense of purpose and
channel it into productive effort.

9. CREATES A STRONG VISION AND DIRECTION FOR THE FUTURE: A successful leader
understands the importance of having a solid vision and how to create one that will guide their organization
toward a bright future. A strong vision means having a clear idea of where the organization is going and what it
wants to achieve. It also means articulating this vision in a way that inspires and motivates others to follow.
Without a clear vision, maintaining momentum or progressing toward long-term goals can be challenging. A
leader with a strong vision can create a sense of direction and purpose, helping to focus and energize an entire
organization.

10. HELPS KEEP EMPLOYEES ON TRACK: Once the company’s vision is well-articulated and
understood, sound leadership is essential to keep employees focused on reaching that goal. This means clearly
communicating the company’s vision and objectives as progress is made and changes occur and then providing
the necessary support and resources. Maintaining lines of communication throughout projects, being positive,
and ensuring employees receive the support they need to achieve their tasks all help keep staff on track with an
organization’s overarching vision.
Trait Theory of Leadership

The trait leadership model is based on the characteristics of many leaders- both successful and unsuccessful –
and is used to predict leadership effectiveness. The resulting lists of traits are then compared to those of
potential leaders to assess their likelihood of success or failure.

Scholars taking the trait approach, attempted to identify physiological, demographic, personality, self-
confidence, aggressiveness, intellectual, task-oriented, and social characteristics with leader emergence and
effectiveness.

Successful leaders have interests, abilities, and personality traits that differ from those of less effective leaders.
Through many types of research conducted in the last three decades of the 20th century, a set of core traits of
successful leaders have been identified. These traits are not responsible solely for identifying whether a person
will be a successful leader or not. Still, they are seen as preconditions that endow people with leadership
potential.

This theory, focusing on the leader, attempts to identify leaders from non-leaders based on certain traits. It
mentions that leaders are born, not made. Finally, this theory, also called Great-man Theory, gave way to a
more realistic trait approach which views that traits are not completely inborn but can also be acquired through
learning and experience. There is no agreement in research findings on which traits are generally found in
leaders and which traits are more important than others. This approach, at best, is descriptive but not analytical
or predictive. It is still alive, though the focus has shifted from personal traits to job-related skills. As identified
by Katz, being an effective manager requires technical, conceptual, and interpersonal skills. One important
limitation of this theory is that it overlooks the needs of the followers and ignores situational factors.

The theory also fails to mention the traits necessary to maintain leadership. Measurement of a trait usually
occurs after a person becomes a leader, and it is difficult to suggest the traits which are prerequisites of a
successful leader.

Advantages of Trait Theory

• This is a naturally pleasing theory.

• It is valid a lot of research has validated the foundation and basis of the theory.
• It gives a detailed knowledge and understanding of the leader element in the leadership process.

Limitations of Trait Theory

• There is bound to be some subjective judgment in determining who is regarded as a good or successful
leader.
• The list of possible traits tends to be very long. This theory is very complex.

6 Traits in Trait Theory of Leadership That Differentiate Leaders

Drive: Leaders exhibit a higher effort level. They have a relatively high desire for achievement, are ambitious,
have a lot of energy, are tirelessly persistent in their activities, and show initiative.

The desire to Lead: Leaders have a strong desire to influence and lead others. They demonstrate a willingness
to take responsibility.

Honesty and Integrity: Leaders build a trusting relationship between themselves and followers by being
truthful or not deceitful and by showing high consistency between word and deed.
 Self-confidence: Followers look to leaders for an absence of
self-doubt. Leaders, therefore, need to show self-confidence to
convince followers of goals and decisions.

Intelligence: Leaders need to be intelligent enough to gather,

synthesize and interpret large amounts of information and to be
able to create visions, solve problems and make correct
decisions.

Job-Relevant Knowledge: Effective leaders have a high degree

of knowledge about the company, industry, and technical
matters. In-depth knowledge allows leaders to make well-informed decisions and to understand the implications
of those decisions.

Behavioural Leadership:

The behavioural leadership theory is a management theory that evaluates leaders according to their behaviours,
actions and management style. This philosophy proposes that all you require to become an influential leader is
to adopt a specific set of behaviours. If you are looking to become a better leader or implement a new
leadership style, you can benefit from learning about this theory and the different types of leadership it defines.
In this article, we describe the behavioural theory of leadership, explain its various types and discuss the
behaviours associated with each style.

The behavioural theory of leadership suggests that the success of a business organisation depends on capable
leaders whose behaviours drive their success and work ethics. This theory says that by observing and evaluating
a leader's actions and behaviours and noting their responses regarding specific situations, you can determine
what kind of a leader they are. According to this theory, successful leaders build themselves through learned
behaviour and are not born successful. This leadership theory is highly action-focused and relies heavily on
assessing leaders' actions in predicting leadership success.

The behavioural theory of leadership, also known as the style theory, focuses on patterns of behaviours,
categorised as 'styles of leadership'. Some leadership styles include task-oriented, people-oriented, status-quo,
and dictatorial leaders. This theory enables individuals to practise learned behaviours to direct their actions to
become the leaders they want to become. A core part of this theory is that it is flexible and allows leaders to
adapt to various circumstances to better predict the outcomes of their behaviour.

Types of behavioural leadership

People-oriented leaders

People-oriented leaders inculcate behaviours that allow them to meet the requirements of the people they
interact with, such as their clients, supervisors and employees. Effective interpersonal communication and
networking drive these leaders to build lasting relationships with those around them and inspire their teams to
perform. They regularly enhance their relations with their team members and motivate them to excel in their
roles. Some common behaviours associated with these kinds of leaders include:

• promoting collaboration
• rewarding the success of others
• observing and analyses their teams' progress
• mentoring their team members to perform better

Task-oriented leaders

Task-oriented leaders usually focus on setting up goals and achieving organisational objectives as their primary
focus is on task execution rather than people management. These leaders often display authoritative behaviour
and usually excel in well-structured and organised environments. Their focus is on the outcome of their projects
rather than the day-to-day developmental tasks and people's progress leading up to that result. Some common
behaviours associated with task-oriented leaders include:

• project initiation
• organising company processes
• clarifying instructions to relevant stakeholders
• gathering necessary data

Participative leaders

Participative leaders ensure the active participation of all their team members in the decision-making processes.
These leaders focus on functional communication, collaboration and feedback to enhance the workflow and
productivity of their projects. They identify the strengths and weaknesses of every team member and assign
them tasks accordingly to maximise team efficiency. This leadership style ensures that the leaders see and hear
every member and consider their feedback effectively. Some common behavioural traits of participative leaders
may include:

• facilitating and coordinating team meetings

• asking for constructive feedback
• implementing suggestions for improvement
• delegating tasks to other team members for improved efficiency

Dictatorial leaders

Dictatorial leaders usually emphasise achieving results than the well-being of their team members. These
leaders may also exert pressure on employees to perform well, even during challenging or demanding
situations. While dictatorial leaders can often ensure high-quality results for a company, their discouraging
behaviour may cause high turnover rates due to lower employee satisfaction. Some common behaviours
associated with dictatorial leaders include:

• setting strict deadlines for employees

• disregarding excuses
• avoiding feedback from the team
• focussing on achieving short-term goals over employees' well-being

Advantages of a behavioural theory of leadership

Some advantages of studying leadership through the behavioural theory:

• emphasises concern for team members and people of an organisation while promoting collaboration
• encourages participative decision making to ensure effective processes
• promotes team development by supporting individual and organisational needs
• supports the alignment of individual and group objectives to achieve company goals
• helps managers understand the impact of their behaviour on the leadership style and productivity of their
team
• helps leaders build lasting relationships with team members
• promotes commitment and contribution to achieving organisational objectives

Disadvantages Of Behavioural Theory

• Behavioural Theories Are Learned Processes That Take Time and May Not Always Be Successful
• Personal Biases May Influence a Manager’s Decision Because they’re Expected to Make Independent
Decisions And Respond To Different Situations Differently
Tannenbaum and Schmidt Theory
The Tannenbaum and Schmidt Continuum of Leadership depicts seven different styles of management
differentiated by the degree of control exerted by the manager over their team. It can also be read as a
continuum of team autonomy, with more collaborative approaches on the right-hand side, and individual role-
based work, with tasks set by managers, on the left.
Let’s break down the seven Leadership Styles which the continuum contains, and the relative advantages and
disadvantages of each leadership style.
The Seven Components of the Tannenbaum Schmidt Leadership Continuum
1: Telling
At the control extreme, the leader simply tells their people what to do. This mode is most found in the military,
in which authority is absolute because it may be necessary to make soldiers do things which human nature
would ordinarily rebel against (such as killing another human being).
In theory, if a leader is capable of endlessly exercising good judgement, this mode could be profitable for an
organisation in the short term, but it rarely proves popular with employees who relish the chance to exercise
their own judgement and autonomy.
2: Selling
Selling is still mainly a top-down approach, but it requires the leader to sell their concepts to their employees,
or at least their top managers. It requires powers of persuasion and charisma in addition to raw authority.
Tannenbaum and Schmidt captured this approach with the quotation: “once I have decided on a course of
action, I do my best to sell my ideas to my employees.”
By explaining the process behind decision making, a leader adopting this approach aims to persuade
subordinates that their decisions are valid, evidence-based, and not merely superficial. This may be especially
important when these ideas are innovative or disruptive.
When this approach works, middle-managers extend the process, selling the top-down decisions to their own
team members, so that each employee “owns” the decisions made by the leader. Many franchise businesses
necessarily operate this way, since each branch must exemplify the same principles, practices, approach, and
service model.
3: Suggesting
In this mode, a leader offers a range of options to their employees, and then allows consensus to form around
the best course of action. Such an approach necessarily limits the scope of Decision-Making, while allowing
teams a greater degree of choice. It is often an approach which can be used within a research and development
setting, whereby several options are market tested before the most successful is adopted.
Working by suggestion also requires powers of persuasion, since leaders need to protect the corral of ideas they
have shortlisted from the incursion of irrelevant alternatives. It can prove a politically sensible approach when
bringing ideas to a board of directors, for instance, since it demonstrates that the leader possesses a helpful
balance of authority and flexibility.
Suggesting can work both ways of course. Leaders would do well to encourage suggestions at key points from
trusted employees. This is a mistake, since even if most employee suggestions are unhelpful or unworkable, the
act of inviting suggestion enhances engagement and loyalty.
4: Consulting
Consultation is one of the most common modes of leadership, lying right in the middle of Tannenbaum and
Schmidt’s continuum. This method involves the leader having a pool of executives whose opinions they trust,
and to whom they can turn for advice, ideas, and courses of action. Contrasting with suggestion, this is not an
occasional act, but more of a standard operating procedure. A business with this type of leadership fully
entrenched will make very few entirely top-down decisions.
5: Joining
In this mode, a leader joins a decision-making group and oversees the process, while trying not to dominate
excessively. For obvious reasons, this can be a delicate balancing act. Nevertheless, it is probably the most
common leadership mode undertaken by middle managers when holding meetings, for instance. There will
necessarily be a degree of decision-making delegation, with the leader agreeing to abide by choices made by the
team, within set parameters.
If this mode is to work, it is vital the leader’s role, limits and degree of authority are delineated from the start.
Ideally, at the very first session in such a collaborative approach, the leader will set forth the limits of their
authority within the group setting. This commitment should be explicitly recorded in the minutes, so that there
can be no ambiguity.
Coaches and mentors follow this approach as standard practice. They are there to bring out the best in their
mentees, rather than dictate what should be done. In a work context, a leader performing this role should bear in
mind that they may be shaping a future leader. While they may want to instil their own values, they are helping
to build an employee who will be able to take on more and more autonomy in future, and who may forge their
own path.
6: Delegating
When a leader has a high degree of confidence in their team members, they may begin to delegate more and
more decision-making responsibility. However, with the power to decide comes the need to be accountable for
those decisions. When leaders delegate fully, they remain liable for that act of delegation, and by extension for
the decisions made by their underlings.
Delegation allows a leader to draw upon talent and abilities which they may not personally possess. It requires
trust, good judgement, and humility, since by delegating, the leader is admitting that some decisions are better
taken by specialists, rather than second-guessed by senior management. Delegation requires leaders to get to
know the respective strengths and weaknesses of their managers.
7: Abdication
While this type of leadership might not seem like leadership at all, sometimes its vital to know when to step
down, move on, or try something new. There is both a positive and pejorative connotation this this style of
leadership. Let’s take the downside first.
When a leader abdicates responsibility and lets their employees run the company, with them as mere
figurehead, then they quickly lose respect, both within the company and with business rivals. This can seriously
damage a brand’s standing, and even undermine the market valuation of a company.
However, when a successful company divests itself of a particular product line, brand, or division for monetary
gain, or to better focus on core service offering, this can be both lucrative and transformative. Leadership will
change to, at most, an arms-length model, with the newly created entity will no longer fall under the aegis of
the company’s founder or CEO.

Advantages of a Continuum Approach

• The model captures the interrelation between managerial authority and team autonomy, and the various
points at which a balance can be struck.
• This approach includes both viable and non-viable modes of management, something that many models
neglect.
• The continuum identifies modes which work within specific industries or sectors, where other modes would
be less appropriate.
• The Tannenbaum and Schmidt model captures historical approaches which have fallen out of favour
(dictatorship), as well throwing a spotlight on forms of leadership which are experiencing a surge in
popularity (collaboration).
Disadvantages of a Continuum Approach

• The continuum may give the erroneous impression that leaders follow a single style which sits somewhere
on this continuum. In reality, leaders may adopt different styles at different times.
• The Tannenbaum and Schmidt model doesn’t identify that certain departments within the same company
may operate under different styles of leadership. Finance is unlikely to adopt the same approach as
Research and Development, for instance.
• The model doesn’t recognize that at times of emergency, a company may adopt a style of leadership out of
keeping with the norm (temporarily becoming more top-down to survive a hostile takeover attempt, for
instance).
• The continuum focuses largely on the decision-making aspect of leadership. It is less interested in the
importance of inspiration and mentorship, for instance.
• Lastly, the model doesn’t make the plasticity of approaches explicit. A leader may have a range of decisions
to make, some of which can be fully delegated, whereas others cannot. The continuum can perhaps best be
seen as the complete set of possible approaches to corporate decision-making.

What is LPC Model (Contingency Theory)?

The Contingency Theory of Leadership states that a leader’s effectiveness is contingent upon with how his or
her leadership style matches to the situation (Leadership Theories). That is, the leader must find out what kind
of leadership style and situation he or she thrives in. The Contingency Theory is concerned with the following:
• “There is no one best style of leadership” (Fiedler’s Contingency Model)
• A leader is effective when his or her style of leadership fits with the situation (Fiedler’s Contingency
Model)
The Contingency Theory of leadership was developed by Fred Fiedler in 1958 during his research of leader
effectiveness in group situations. Fiedler believed that one’s effectiveness to lead depended on one’s control of
the situation and the style of leadership. Unlike the Situational Theory of leadership, leader effectiveness is
contingent on the leader’s style matching the situation, not adapting to it. This theory assumes that styles are
fixed, and that they cannot be adapted or modified. A leader is most effective when his or her attributes and
style of leadership is matched with the situation and environment around them.
The Contingency theory is not concerned with having the leader adapt to a situation, rather the goal is to match
the leader’s style with a compatible situation. To make best use of this theory, it is important to find what style
a leader has. This is done through the Least Preferred Co-worker Scale (LPC).
The LPC is a list of questions designed to find out what kind of employee a leader would most like to work
with, and in turn shows the leader’s style. Fiedler’s Contingency Model attempts to match the leader’s style
using LPC to the situation in which they would thrive.
• High LPC Score– leader with good personal skills and relies on relationships with others to accomplish
tasks (Fiedler’s); people-oriented
• Low LPC Score– leader that accomplishes goals through focus on the task and positional power (Fiedler’s);
task-oriented
Task-oriented leaders are most effective when their positional power is high, as well as the task structure.
People or relation-oriented leaders perform their best when the relationship levels between themselves and
followers are at their greatest. After finding the style of the leader, Fiedler’s Model states that finding the best
situation for the leader, also known as “situational favourableness” (Fiedler’s Contingency Model).
A situation is defined by three factors in the contingency theory:
1. Leader-Member Relation- how the leader interacts with employees.
2. Task Structure- how tasks are set up by the leader.
3. Positional Power- the amount of power a leader has over followers.
These three factors combine to form the situation in which a leader’s style is effective or ineffective. If the three
factors match up to the style of the leader, success is projected. It is important to remember that the opposite
can happen as well. If a leader is put into a situation opposite of his or her favoured task structure, member
relation, and level of power, then failure is to ensue. The three factors of contingency situation have less of an
impact on leaders who are task-oriented, or score low LPC’s, than leaders who are people oriented and score
high LPC’s (Fiedler’s). By using the results from the LPC to find a person’s leadership style, and analysing
their preferred leader-member relation, task structure, and positional power, finding the right job or position for
someone can be more accurately accomplished (Fiedler’s Contingency Model).

Situational Leadership Theory:

Situational leadership theory suggests that no single leadership style is best. Instead, it depends on which type
of leadership and strategies are best suited to the task.
According to this theory, the most effective leaders are those that are able to adapt their style to the situation
and look at cues such as the type of task, the nature of the group, and other factors that might contribute to
getting the job done.
Situational leadership theory is often referred to as the Hersey-Blanchard Situational Leadership Theory, after
its developers, Dr. Paul Hersey, author of "The Situational Leader," and Kenneth Blanchard, author of "One-
Minute Manager."

Leadership Styles: Hersey and Blanchard suggested that there are four primary leadership styles:

• Telling (S1): In this leadership style, the leader tells people what to do and how to do it.
• Selling (S2): This style involves more back-and-forth between leaders and followers. Leaders "sell" their
ideas and message to get group members to buy into the process.
• Participating (S3): In this approach, the leader offers less direction and allows members of the group to
take a more active role in coming up with ideas and making decisions.
• Delegating (S4): This style is characterized by a less involved, hands-off approach to leadership. Group
members tend to make most of the decisions and take most of the responsibility for what happens.

Maturity Levels: The right style of leadership depends greatly on the maturity level (i.e., the level of
knowledge and competence) of the individuals or group. Hersey and Blanchard's theory identifies four different
levels of maturity, including:

• M1: Group members lack the knowledge, skills, and willingness to complete the task.
• M2: Group members are willing and enthusiastic, but lack the ability.
• M3: Group members have the skills and capability to complete the task, but are unwilling to take
responsibility.
• M4: Group members are highly skilled and willing to complete the task.

Matching Styles and Levels

Leadership styles may be matched with maturity levels. The Hersey-Blanchard model suggests that the
following leadership styles are the most appropriate for these maturity levels:
1. Low Maturity (M1)—Telling (S1) 3. Medium Maturity (M3)—Participating (S3)
2. Medium Maturity (M2)—Selling (S2) 4. High Maturity (M4)—Delegating (S4)

How It Works

A more "telling" style may be necessary at the beginning of a project when followers lack the responsibility or
knowledge to work on their own. As subordinates become more experienced and knowledgeable, however, the
leader may want to shift into a more delegating approach.
This situational model of leadership focuses on flexibility so that leaders are able to adapt according to the
needs of their followers and the demands of the situation.
The situational approach to leadership also avoids the pitfalls of the single-style approach by recognizing that
there are many different ways of dealing with a problem and that leaders need to be able to assess a situation
and the maturity levels of subordinates in order to determine what approach will be the most effective at any
given moment.
Situational theories, therefore, give greater consideration to the complexity of dynamic social situations and the
many individuals acting in different roles who will ultimately contribute to the outcome.

Path Goal Theory

The path-goal theory of leadership says that a leader's style, traits and behaviors influence team productivity,
motivation and satisfaction. This theory comes from expectancy theory, which is the assertion that individuals
act in a certain way based on the expectation of a desirable outcome.

Path-goal theory assumes that a leader complements their employees and can compensate for their
shortcomings. Effective leaders, according to this theory, give their employees a clear path to follow to achieve
goals, removing challenges and obstacles. The theory provides guidance for ways leaders can encourage and
support employees in reaching their goals.

4 types of path-goal theory

1. Achievement-oriented

With this type of leadership style, the leader focuses on encouraging excellence by setting challenging goals.
Leaders encourage employees to pursue their highest level of performance and the leader trusts their ability to
handle this.

The leader encourages employees to display excellent work achievements and be continually improving.
Employees who are comfortable working fully independently and have strong problem-solving skills are
suitable for this type of management.

2. Directive path-goal clarifying

In directive leadership, the leader provides employees with clear guidelines for the processes and expectations
for them, as well as how they should best carry out tasks. This style of leadership aims to reduce ambiguity in
job functions and clarify work processes.

This can give employees a higher level of certainty regarding procedures, policies and rules. Leaders define the
relationship between performance goals and rewards, including pay increases and promotions, explicitly to
promote clarity and transparency. With this style of leadership, leaders supervise employees closely, which
makes it most appropriate for inexperienced employees who need guidance and to be checked on regularly.

3. Supportive

With supportive leadership, the leader pays attention to the needs and well-being of employees and makes work
pleasant for them by being friendly and empathetic. Leaders who operate under this style treat employees with
respect and offer support when needed. This management style is useful when employees have personal
problems or need a boost in motivation or confidence.

4. Participative

This type of leadership behaviour involves consulting with employees on important decisions related to work,
task goals and paths to reach goals, enabling the employee to be directly involved in the decision-making
process. This typically results in the employee exerting greater effort to achieve the goals they selected.
Leaders often use this style of leadership when employees are highly involved or have specialist knowledge. In
these situations, their insight can be invaluable to the leader.

Blake and Moutons Theory

The Blake Mouton Grid plots a manager's or leader's degree of task -centeredness versus their person-

centeredness, and identifies five different combinations of the two and the leadership styles they

produce. It's also known as the Managerial Grid, or Leadership Grid, and was developed in the early

1960s by management theorists Robert Blake and Jane Mouton.

The model is based on two behavioral dimensions:

• Concern for People: this is the degree to which a leader considers team members' needs, interests

and areas of personal development when deciding how best to accomplish a task.

• Concern for Results: this is the degree to which a leader emphasizes concrete objectives,

organizational efficiency and high productivity when deciding how best to accomplish a task.

Let us take a look at the five leadership styles in detail.

1. Impoverished Management – Low Results/Low People

The Impoverished or "indifferent" manager is mostly ineffective. With a low regard for crea ting

systems that get the job done, and with little interest in creating a satisfying or motivating team

environment, this manager's results are inevitably disorganization, dissatisfaction and disharmony.

2. Produce-or-Perish Management – High Results/Low People

Also known as "authoritarian" or "authority-compliance" managers, people in this category believe that

their team members are simply a means to an end. The team's needs are always secondary to its

productivity.

This type of manager is autocratic, has strict work rules, policies and procedures, and can view

punishment as an effective way of motivating team members. Thi s approach can drive impressive

production results at first, but low team morale and motivation will ultimately affect people's

performance, and this type of leader will struggle to retain high performers.

They probably adhere to the Theory X approach to motivation, which assumes that employees are

naturally unmotivated and dislike working. A manager who believes people are self -motivated and
happy to work is said to follow Theory Y. You can learn more about these theories in our

article, Theory X and Theory Y.

3. Middle-of-the-Road Management – Medium Results/Medium People

A Middle-of-the-Road or "status quo" manager tries to balance results and people, but this strategy is

not as effective as it may sound. Through continual compromise, they fail to inspire high performance

and also fail to meet people's needs fully. The result is that their team will likely deliver only mediocre

performance.

4. Country Club Management – High People/Low Results

The Country Club or "accommodating" style of manager is most concerned about their team members'

needs and feelings. They assume that, as long as their people are happy and secure, they'll work hard.

What tends to be the result is a work environment that is very relaxed and fun, but where productivity

suffers because there is a lack of direction and control.

5. Team Management – High Production/High People

According to the Blake Mouton model, Team Management is the most effective leadership style. It

reflects a leader who is passionate about their work and who does the best they can for the people they

work with.

Team or "sound" managers commit to their organization's goals and mission, motivate the people who

report to them, and work hard to get people to stretch themselves to deliver great results. But, at the

same time, they're inspiring figures who look after their teams. Someone led by a Team manager feels

respected and empowered, and is committed to achieving her goals.

Team managers prioritize both the organization's production needs and their people's needs. They do

this by making sure that their team members understand the organization's purpose, and by involving

them in determining production needs.

When people are committed to, and have a stake in, the organization's success, their needs and
production needs coincide. This creates an environment based on trust and respect, which leads to high
satisfaction, motivation and excellent results. Team managers likely adopt t he Theory Y approach to

motivation, as we mentioned above.

Vroom and Yetton Model
Leaders use the Vroom–Yetton decision model to determine the best course of decision-making by identifying
whether the decision should be made alone by the leader or by involving a group. In the latter, the extent to
which the group should be involved in decision-making is also determined.

The model was developed by Victor Vroom and Phillip Yetton in 1973. The Vroom–Yetton decision model is
an industrial and organizational psychology theory. In 1988 the idea was further modified with contribution by
Arthur Jago, after which it was known as the Vroom-Yetton-Jago model.

Three Factors to Consider Before using the Vroom-Yetton Decision Model

The Vroom–Yetton decision model starts by asking three important questions about decision quality,
subordinate commitment, and time constraints.

Decision Quality: Every leader wants to make good decisions; however, making a good decision requires
committing resources such as time, workforce, money, equipment, etc. Not every decision is worth committing
an excessive amount of resources and can lead to an unnecessary diversion of resources.

Subordinate / Team Commitment: Some decisions can affect an entire team/subordinates, whereas others can
go unnoticed. When your decision might affect your team, a collaborative process might be the best way to go.
This can help in better decision making and effective implementation of the decision.

Time Constraints: For some decisions time is a luxury the leader can afford, however, this isn’t always the
case. When faced with time critical decisions which don’t allow you to spend a lot of time researching the
variables which might result in a positive or negative outcome, you might require making the decision on your
own instead of involving your team.

Seven Questions on the Decision-Making Process

The Vroom-Yetton decision model formulated seven critical questions to create a decision tree enabling leaders
to make the right choice. These seven questions are associated with quality, commitment, problem structure,
leader’s information, goal congruence, and subordinate conflict.

When decision-making is happening, it´s essential to have a process that involves adequate stakeholders, such
as creating PowerPoint presentations where the team can understand the questions.

1. Quality Requirement (QR): This question implies considering if the problem process has some kind of
quality requirement associated with it.

2. Commitment Requirement (CR): Team commitment can be a major help or hurdle for leaders. This is why
second question in the Vroom-Yetton decision model asks if there is a need for commitment from your team.

3. Leader’s Information (LI): This question is meant for the leader to achieve clarity regarding the available
information and whether it is sufficient for him/her to make the decision alone.

4. Problem Structure (ST): This question asks if the problem is well structured. An unstructured problem, for
example, might require looking at the possibility of collaborating with a team.

5. Commitment Probability (CP): This question is meant to assess whether your team would provide you
with the necessary commitment for the decision if you made it on your own.

6. Goal Congruence (GC): This question is meant to analyse if the subordinates share the same goals as the
organization to resolve the problem.
7. Subordinate conflict (CO): Decision-making is a tricky business, and subordinate conflict can often occur
due to certain decisions. This question is meant to analyze this equation to determine if a subordinate conflict is
likely over the decision under consideration.

Five Decision-Making Processes

There are five decision-making processes in the Vroom-Yetton model. These processes are mentioned below,
with a few examples from famous leaders.

Autocratic (A1): This includes using existing information for decision-making without any input from the
team.

Autocratic (A2): Specific information from the team is acquired for consultation and for decision-making. The
final decision, in this case, is taken by the leader, which may or may not be shared with the team.

Consultative (C1): This involves acquiring information from team members individually before the leader
makes a decision. The team members don’t meet, and the members individually discuss, evaluate and share
information regarding the decision.

Consultative (C2): C2 is a style where the leader gathers a group for discussion but makes the final decision.

Collaborative (G2): G2 requires the group to make a collaborative decision, as the leader supports the team
during the process.