Chapter-8

Leadership
Leadership is a process
whereby an individual
inspires a group of
individuals to achieve a
common goal.

It is a process of influencing
people, so that they will
attempt willingly and
strongly towards
achievement of group goals.
It is about influencing, motivating and enabling
others to contribute toward the effectiveness
and success of the organization.

Leadership is the special influential quality and

ability of leader that is stimulating members of
the group towards attaining the predetermined
objectives.
It is a quality of behaviour by which an
individual guides and directs the activities of
his/her subordinates.
Leadership is the ability to
influencing a group towards
the achievement of goals.

- Robbins
Leadership is the process of
moving a group in some
direction through mostly
non-coercive means.
J. Kotter
8.2. Traditional Theories of Leadership :
1) Trait Theory:
This is a traditional theory which is propounded the field of
leadership till 1940s . This theory focuses on personal
qualities and characteristics of the leaders. It assumes that
the leaders are born not made. In other words, leadership is
innate rather than being developed.

Success of leaders largely depend on the personality of leader.

To be a leader a person must have certain qualities. leader
should have physical qualities- energy, appearance, height
and Intelligence qualities- adoptability, aggressiveness,
enthusiasm, self confidence. Likewise, Performance
qualities- achievement, drive, perseverance, initiative and
social qualities- cooperativeness, interpersonal skills,
administrative ability etc.
 If such qualities are not in the leaders they
cannot lead the organization nor can the
operate effectively. These qualities are not
acquired but they can get by birth and some
qualities can build by training and
development programmes.

Some studies and approaches of trait theories are

described as below:
i) Ralph Stogdill (1948) Study:
• Ralph Stogdill is the originator of the trait theory.
He started his first study in 1948 and second in
1974. Firstly, he recommended 124 different traits
between leaders and non-leaders.

• He found some specific traits like Intelligence,

Initiative, self-confidence, accept responsibility,
dominance and control etc.

• He suggested that the traits especially the inborn

characteristics and skill as competencies of
successful leaders. He recommended following
traits and skills
Traits Skills
Adaptable to situation Clever
Alert to social environment Conceptual skilled
Ambitious and achievement oriented Creative
Assertive Diplomatic and tactful
Cooperative Fluent in speaking
Decisive Knowledge about group task
Dependable Organized
Dominant Persuasive
Energetic Social skilled
Persistent
Self-confidence
Tolerant of stress
Willing to assume responsibility
ii) McCall and Lombardo (1983) Study:
Based on this study, he identified following four
primary traits for successful leader.

* Emotional Stability and Composure:

Leaders are featured by calm, cool, confident
and predictable particularly in the situation of
stress. They have a stable emotion in any
situation.
* Admitting Error- leaders own up to mistakes
rather than covering them up.
* Good Interpersonal Skills: Leaders have
ability to communicate and persuade others
without resorting to negative tactics.
* Intellectual Breadth: Leaders have the ability
to understand a wide range of areas, rather
than having a narrow area of expertise.
iii) Judge, Bone, Ilies, Gerhardt (2002) Study:
The study was completed by T.A. Judge, J.E.
Bono, R.Ilies and M.W. Gerhardt in 2002.

They considered possible linkages between

personality and leadership for the study. They
found that the big five personality dimensions
have significant impact on leadership
emergence and leader effectiveness.

They are agreeableness, conscientiousness,

Extraversion, Neuroticism and Openness.
iv) Bennis and Thomas (2002) Study:
This study was emerged by W.G. Bennis and
R.J. Thomas in 2002.
They took interview with 40 leaders both young
and old on effective leadership.
They have looked at leadership from its broader
social context.
This study is concluded four features and traits
for effective leadership. They are-
Features Traits
Adaptive Capacity Hardiness, Keen Observance,
Proactive seizing of
opportunities, Creativity
Engaging Others by creating Encouraging dissent, Empathy,
shared Meaning Obsessive Communication
Voice Purpose, Self-awareness, Self
confidence, Emotional
Intelligence
Integrity Ambition, Competence, Moral
Compass
2) Group and Exchange Theories of
Leadership:
These theories are derived from social
psychology. According to this approach,
Leaders provide more benefits and rewards
than efforts (costs ) to followers.
There must be a positive exchange between the
leaders and followers to achieve goals. This
perspective advocates that leadership is an
exchange process between the leaders and
subordinates.
i) Social Exchange Theory (SET):
Social exchange theory is a social psychological
and sociological perspective that explains
social change and stability as a process of
negotiated exchanges between parties.

It attempts to explain the social factors that

influence how individuals interact within a
reciprocal (give and take )relationship.
This theory was developed by George Homans
in 1959. He described that the social
behaviour is the result of an exchange
process.
The purpose of the exchange
is to make the most of
benefits and minimize
costs. People evaluate the
risk and potential benefits
out of the social
relationship and involve
in social exchange.
The basic formula for
predicting behaviour is
Behaviour = reward of
interaction - cost of
interaction
ii) The Leader–Member Exchange (LMX)
Theory:
This theory was developed by George Grain and
his associates. This theory is presents the
perspective that leaders act differently to
different members in the group.

In other words, Leaders often act very differently

toward different subordinates and develop
contrasting kinds of relationship with them.
According to this theory, leaders have very limited
time, energy and ability to devote to multiple
matters. So, they sort out their subordinates into
in-group and out-group subordinates.

* In Group: Leaders often have a special

relationship with an inner circle. The inner
circle members are given higher level of
responsibilities, decision influence and access to
resources. They involved highly with the leader
and more communicative than other members of
group. The members committed to the task and
loyal to their leaders.
* Out Group: Leaders often have traditional,
supervisory kind of relationship with the out
group members.
• The members have lower level of influence in
the group. They only fulfill their
responsibilities as prescribed by job itself.
They do work then go to the own place.

The relationship between leaders and

subordinates go through three stages.
• Role Taking: leaders evaluate the ability and
skills of the team members. On the basis of this
evaluation, leader may offer them opportunity to
show their capabilities. The role taking creates
relationship of leaders and his inner members.
• Role Making: Mutually, the leaders and the
members take part in an informal negotiation of
roles and responsibility of the members wherein
the roles are created.
• Routinization: The pattern of social exchange
begin between the leader and the member in this
stage. This stage comprise of working hard for
building trust and respect.
3) Contingency Theory of Leadership :
This theory was developed by Prof. Paul Hersey
and Ken Blanchard in 1969. They advocated
that the leadership is depends on the situation
of organization. A leader has to adopt his/her
leadership according to the situation of
organization.
This theory states that a leader's effectiveness is
dependent on how well the leader's style
matches a specific situation.
As the changing situation, leader must change
the style of leadership. There is no universally
applicable leader bahaviour. Same leadership
style may be effective under one situation and
ineffective under the other.

Therefore, Success leadership occurs when the

leader's style match with the situation, which
is called situational theory. Some of the major
studies on situational approaches to leadership
are described as below:
• Fiedler's Contingency Model: This theory was developed by
Fred E. Fiedler in 1967.
• It was the first comprehensive contingency model for
leadership.
• This model is purposes that effective group performance
depends on the proper matching between the leader's style and
the situation.
• In other words, effectiveness of a leaders depend on how their
ability to adopt appropriately in a given situation. According to
this model the effectiveness of leaders depend upon the
following three situations:
• i) Leader follower relation: It is the degree of followers trust,
confidence and respect for the leader. The relation can be good
or bad that is depends on the degree of unity, cooperation and
the level of conflict prevailing between the leaders and
followers.
• ii) Task Structure: It is the nature of task performed by
the subordinates. It can be structured and unstructured.
High task structure is related to a task where all actions
required to be taken are explained in sequential manner
and unstructured is related to the employees do not
know as to how to handle the work and group member's
role become vague.

• iii) Position Power: It is the degree of power or

authority a manager perceives the organization has
given them for purpose of directing, rewarding and
punishing to the subordinates. It determines by the
amount of control which the leader has over allocation
of resources, determination of compensation and hiring
of people.
4) Path Goal Theory: This theory was developed
by Robert J House and Martin Evans in 1971.
They described what leaders must do for
motivation the people to their well
performance.
According to this theory subordinates are
motivated by their leader to the extent that the
behaviours of the leader influence their
expectancies.
In other words, The leader affects subordinates
performance by clarifying the paths that will
lead to desired rewards.
• Leader helps subordinates to find out the best
way of doing things and remove the obstacles
that hinder them from realizing the set goals.
• According to this theory, Leaders choose
different behaviours or styles on the basis of
complexity of the situation. Following
different behaviours or styles are shown by the
leaders.
•  
i) Directive Leadership: It is the style of leadership in
which a leader is provides guidance and methodology
to accomplish the task. Leader gives order what to do,
how to do and maintains the standard of performance.
Leader uses rewards and disciplinary action to control
the subordinates activities.

ii) Supportive Leadership: It is people oriented

leadership. It is the style of leadership in which a leader
makes work interesting, shows equal behaivour to all the
team members, becomes friendly, accessible and gives
importance to the welfare of the subordinates. The
leader concerned subordinates needs, welfare and well
being.
iii) Participative Leadership: According to this
leadership style, a leader is participating to the
subordinates in decision making functions and
takes advice and suggestions from employees.
Leader respects advices and follows them for
effective decisions.

iv)Achievement oriented leadership: According

to this leadership, a leader is sets challenging
goals and encourages employees to push their
performance at the peak. It may emphasis regular
improvement and quality achievement of the
organization.
5) Hersey and Blanchard's Situational Theory
:
It was developed by Paul Hersey and Kenneth
Blanched in 1969.
They suggested that the effectiveness of the
leadership style is depends on the readiness
(Maturity) of the followers .
The readiness is about the desire of the
subordinates for the achievement, willingness
to accept responsibility and task related skills,
ability and experience.
Successful leadership is achieved by selecting
the right leadership style. The leadership style
is contingent on the level of the followers
maturity. The maturity is depends on following
variables:
* Task Behaviour: It is the extent to which a
leaders assigns jobs regarding what to do,
where to do and how to do . The leader is not
concerned about the feeling of followers rather
concerns about helping the follower to achieve
the set goal.
• Relationship Behaviour: It is the extent to
which a leader listens, provide supports and
encouragement and involves subordinates in
the decision making works.

* Follower's Maturity: It is the extent to which

follower's motivation and willingness to take
responsibility, accomplish the job and
directing their behaviour.
8.3.Modern Theoretical Processes of
Leadership:
1) Charismatic Leadership Theory: This theory
was developed by Max Weber in 1947, along
with the bureaucratic and traditional leadership
styles.
This leadership style is based on a form of heroism
or extreme of character, almost of divine origin.
It gathers followers through dint (impression) of
personality and charm, rather than any form of
external power or authority.
This style injects (bring in) huge amount of
enthusiasm into team and is very energetic in
getting a team to do their work.
The word charisma is spiritual grace and enthuse
others. It is an individual trait of the leader to
inspire others.
It involves more than a set of extraordinary
leadership abilities of a leader. Charismatic
leaders influence to the followers by following
activities:
i) Setting Appealing Vision: Such leaders
formulate long term strategy for attaining
goals with linking present and future state of
organization.

ii) Articulating an Appealing Vision

Statement: Leaders communicate visions to
their followers formally. Such vision helps to
impress followers an overarching the goal.
iii) Conveying New Set of Value: Leader set a
pattern of leadership act and behave it with
followers. Leaders become example to their
followers. Followers catch the emotion of
leaders.

iv) Self Sacrifice: Finally, leaders engages in

emotion-inducing and often unconventional
beahviour to encourage their followers.
Key Characteristics of Charismatic Leader
i) Vision: Leaders have unique vision. They
express it clearly and make sacrifices to
make it a reality.

ii) Risk Takers: Leaders can easily take high

degree of risk to accomplish the vision.

iii) Sensitivity to Follower's Need: Leaders are

more sensitive to follower's ability and needs.
They respect the feeling of followers and
responsive to their needs.
iv)Extraordinary Behaviour: Leaders are
different from others in their behaviour. They
often have sympathy, supportive and follower
oriented.

v) Self Confidence: Leaders are highly

confident in their ability and judgment
2) Transformational Leadership Theory:
This theory was developed by James MacGregor
in 1978. In this style leaders and followers
engage each other and rise to new levels of
motivation, morality and performance.

This is the style of leadership whereby a leader

is motivating people to go above and beyond
by providing a new vision and transform the
followers into, people who want to self
actualization.
Leaders help followers grow and develop into
leaders by responding to their individual
needs, empowering them and aligning
individual goals and objectives with the large
organization.
Elements of Transformational Leadership:
i) Creating a strategic vision
ii) Communicating the vision
iii) Modeling the vision – Leaders enact the
vision. They make reliable their actions.
iv) Building commitment to the vision-
3) Substitute for Leadership:
This theory was developed by S.Kerr and J.M.
Jerminer in 1978. This theory argues that
different situational factors can boost up
neutralize for leader's behaviours.

Neutralize or substitute sets limits of leadership,

making leadership behaviours inefficient and
irrelevant certain circumstance.
It represents situational variables that can
substitute for, neutralize or enhance the effects
of leadership .

Research shows that substitutes for leadership

directly influence employee attitudes and
performance.

It is identifies situations in which leader

behaviour is neutralized or replaced by
characteristics of subordinates, the task and the
organization.
In conclusion, This theory do not give all credits
to leaders only, followers are equally important
for organizational success. The situation of the
organization indicates demand of leaders.

It advocates that some things are beyond leader's

control and they don't have mystical power. The
situation plays a role rather than leaders.

According to Luthans – This theory does not

neglect leadership but it may put a realistic
boundary on what leadership is capable of
achieving from followers.
4) Social Cognitive Approach:
This theory was developed by Albert Bandura in
1978. He describes that learning can be made
from social resources or environment.
It is a psychological theory that describes the
three way relationship between personal
factors, behaviour and environment.
Leader

Leader Behaviour Environment

It is the interaction between the leader, followers
and environmental situation.

It views personalities in terms of how the person

thinks about the situations encountered in
daily life and behaves in response to them.

It emphasizes the importance of observational

learning, self efficiency, situational influences
and cognitive process.
4) Authentic Leadership:
This theory was developed by B.J. Avolio and
W.L. Gardner in 2005.
They focused on the qualities and features of
leaders that reflects the follower's perception
of trust, connection and following leaders.

If the action of leader is consistent over time and

are authentic than only they will be followed
and supported by the followers.
In this style, leader must have the positive
psychological capabilities such as confidence,
hope, optimism and moral reasoning etc.

These elements influence the decision and

behaviour of authentic leaders.

In other words, authentic leadership consists of

the components of self awareness and self
regulation behaviour, that would adopt their
moral perspective and transparency.
If the leader is authentic in action and behaviour
they will further connect to the followers and
shorten the gap between the leader and
followers.
It inspires and motivates their followers through
the alignment of their action and character
traits.
8.4. Contemporary Issues in Leadership
1) Culture Issue
2) Gender Issue
3) Team Leadership Issue
4) Empowerment Issue
5) Ethical Leadership Issue
6) Emotional Intelligence Issue