CHAPTER 15

LEADERSHIP

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 Introduction
 Success of a business concern is
dependent upon the ability of its
leadership. Whenever and in whatever
situation if someone tries to influence the
behavior of another individual, there is a
leadership. It helps to attain the business
goals of an organization.

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 Definition

 Leadership is the ability to

awaken in others the
desire to follow a common
objective.

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 Importance of Leadership
Developing
Perfect
good human
organization
relation
structure

Promoting Reconciliation
the spirit of of goals
coordination

Source of
Directing group motivation
activities

Technological, Fulfilling social

economic Better Avoiding responsibilities
and social utilization of imbalances
changes manpower
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 Approaches or Theories of Leadership
 According to this theory, leadership behaviour is influenced
by certain qualities of a person. A successful leader has the
following qualities.
 Good Personality
 Tirelessness
 Ability to take quick decision
 Courage to face competitors
 Persuasion
 Lesson out of experience
 Intelligence
 Different thinking
 Reliability
 Physical fitness.

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 Behavioral approach or theory
 This theory had popularity during 1950s.
It assumes that people are lazy and
irresponsible by nature. So there is need
of an instrument to give motivation to
workers.
 Autocratic, democratic or supervisory
styles are some of the leadership styles.
Behavioral approach developed these
leadership styles which produce different
and conflicting results.
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Situationalist approach or theory
 During 1970s this theory was developed
where some traits and behaviours are
effective in a particular situation and
ineffective in another situation. Situation
helps persons to develop their leadership
qualities and emerge as leaders

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 Follower’s theory or acceptance
theory
 Here, only followers decide whether a
person is a leader or not. Followers take
decision on the quality of the leader who
fulfills their needs. Traits and behaviour
are not considered as essential element
of leadership. This is mainly applied in
politics.

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System theory or a path goal theory
 This is focused on a person’s act
rather than his traits or behaviour. A
leader coordinates the efforts of his
followers. This considers all variables
like leader, followers, situation,
leadership traits, environment goals
and group’s nature, characteristics and
needs, role behaviour of leader. It is
also termed as modern theory of
leadership.
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 Functions of Leader
Representation Taking Planner
initiative

Communication
Production

Leader
Encouraging Arbitrator
others and
mediator

Rewards and Guide Integration

punishments

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 Qualities of Leadership
 Physical appearance and strength
 mental vigour
 emotional stability
 sense of judgment
 goodwill
 motivation
 communication skill
 guiding ability
 sociability
 technical knowledge
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 Types of Leadership
 Autocratic leader
 Intellectual leader
 Liberal leader
 Democratic leader
 Institutional leader
 Inducing leader
 Paternal leader
 Creative leader
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 Techniques of Leadership
 Securing cooperation
 the use of power
 coordination
 discipline
 morale

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 Characteristics of Leadership
 There must be followers
 working relationship between leader and
followers
 personal quality
 reciprocal relationship
 community of interests
 guidance
 related to a particular situation
 shard function
 power relationship
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 Leadership Styles
 Positive style
 Negative style
 Autocratic or authoritarian style
 Democratic style
 Free-rein style

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 Positive style

 A leader motivates
followers to work hard by
offering them rewards like
bonus and incentives

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 Negative style
 Leader foresees his followers to
work hard and penalize them if
the work is not upto the standard.
This has high human cost. Here
everyone tries to shift
responsibility over to others.

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 Autocratic or authoritarian style
Advantages:
 Leadership style provides strong
motivation to followers.
 Quick decision is possible.
 less talented followers can perform job
effectively
 Followers do not take any decision
 Decision making planning need no
initiative
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 Autocratic or authoritarian style
Disadvantages
 Most dislike this style as it takes negative
motivation approach.
 frustration, low morale and conflict develop
easily
 New ideas and creative ideas have no
scope for application
 followers have no opportunity for
development
Suitability: It is suitable to where followers are
uneducated and unskilled.
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 Democratic style
Advantages
 Consultation give satisfaction to the followers
 due reorganization is given to the followers
 followers are aware of the activities
 leader can improve decision making ability
 followers get opportunity to show their ability

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 Democratic style
Disadvantages
 Taking decision and implementation
require more time.
 Followers can dominate the leader
 leader can easily shift the responsibility
to his followers for failure
 it requires communicating skill on part of
leaders otherwise it may ruin the
organization
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 Free-rein style
Advantages
 Morale and job satisfied of the followers
are increased to some extent.
 The talent of the followers is properly
utilized.
 The followers get full opportunity to
develop their talents.

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 Free-rein style
Disadvantage
 The leader does not care to motivate his
followers.
 The contribution of a leader is nothing.
 The leader does not support the follower
and no guidance is available to the
fanner.

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 THANK YOU

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