Third Chapter

Motivation and Leadership

 Good human relations and work environment

Human relations, also called employee relations,

labour relations, industrial relations and
personnel relations, represent the relationship
that exists between the employer and employees
in an industrial undertaking. If these relations are
strained, industrial disputes occur and industrial
progress suffers. The employers suffer losses, the
workers do not get wages and there is shortage
of goods and services for community.
• There are three parties involved in human and industrial
relation called employer, employees and trade unions. In
general the relations ship between these three parties is
called human and industrial relations. If the relationship
between these three parties is not good then there will
be many problems like strike, conflict, disputes, job
dissatisfaction, low performance, lockout, and gharao in
the organization which leads the organization to the
backwards. Good human relation can be maintained
through the motivation.
 Meaning of motivation

• As we know each and every organization has its own

aims and objectives. To achieve the organizational
aims, an organization appoints employees having
different skills, knowledge and experiences.
Organization success depends on employee
performance. Management gets jobs done by
working with and through employees to achieve
goals. Motivation here is totally related with the
employees of the organization. Motivation is the act
of energizing employees for higher performance.
Motivation is concerned with individual needs.
• Different people have different interest and thinking
so that motivating people in the organization is very
difficult task. The manager of the organization is
responsible for the motivation of employees by
studying individual interest and thinking of entire
employees. Providing good working environment,
good salary, leave, incentive, good behavior,
training, using latest technology are some
techniques of motivating employees in
organization.
 Nature and features of motivation

Various authors have defined motivation in their own words.

However, the basic contents are the same. On the analysis of
these definitions, we can derive the following nature and features
of motivation.
• Unending process: man has innumerable wants which induce him
to work. All human wants cannot be satisfied at one time.
One want is satisfied and the other emerges. Satisfaction of wants
is an unending process, so motivation is also unending process.
• Psychological concept: motivation is a psychological concept. It is
concerned with needs and motives, which generate within an
individual. So, it is an internal feeling of an individual that
generates behaviour, which forces a person to action.
• Whole individual: each individual is an integrated
organized while and a part of him cannot be
motivated. So motivation is total and not piece meal.
• Influences the behaviour: motivation directly
influences the behaviour and performance of a
person. It energies the behaviour of people and
directs it towards attaining some goals.
• Inspire and encourage: motivation is the task of
every manager because he has to inspire and
encourage his subordinates to complete their jobs
efficiently.
• Complex and unpredictable: motivation is complex.
It is difficult to explain and predict the behaviour of
employees because it is not an observable
phenomenon.
• Positive or negative: motivation may be positive or
negative. Positive motivation implies use of
incentives such as increase in pay, reward,
promotion etc. For better work. Negative motivation
means forcing pole to work by holding out threats or
punishment such as reprimands, threat of
demotion, fear of loss of job etc.
 Importance of motivation
• Higher productivity: motivation induces men to work
efficiently and it results in increased production and
productivity. The inherent qualities are developed through
various techniques of motivation. A number of researches
have proved the relationship between productivity and
motivation.
• Utilization of factors of production: motivation makes
employee work sincerely for completing the task assigned to
them. By this, there is a possibility of utilizing the organization
resource human, physical and finance to the maximum.
• 3. Willingness to work: motivation influences the willingness
of employees to work and willingness comes from within. It
helps to present better performance.
• Low employee turnover and absenteeism: attractive motivation
schemes provide satisfaction to employees. A motivated employee
stays in the organization more and their absenteeism is quite low.
High turnover and absenteeism can create many problems in the
organization and affects the reputation adversely. Motivation brings
these rates lower.
• Acceptance of organizational changes: the changes in organization
are usual phenomenon due to various reasons such as changes in
technology, environment etc. When the changes are introduced in
the organization, there is tendency to resist them by the
employees. Hove ever, if they are properly motivated they accept
those changes with zeal and enthusiasm and support in
implementation tools.
• Realizing organizational goals: motivated employees develop a
feeling of total involvement in the task of organization and work
wholeheartedly for the realization of organisational goals.
 Peoples needs and wants
• Quite simply, the economic definition of a need is something needed to survive.
In economics, the idea of survival is real, meaning someone would die without
their needs being met. This includes things like food, water, and shelter.
• A want, in economics, is one step up in the order from needs and is simply
something that people desire to have, that they may, or may not, be able to
obtain. Again, with those two simple definitions, it doesn't seem like there
should be much to talk about, but there is. Economics deals with how we
allocate scarce resources, and those scarce resources may be needed to meet
someone people's needs and other people's wants. So, we do need to talk about
wants and needs.
• Imagine a farmer of barely. After his harvest he can has two potential customers:
one that wants to buy his barely in the hopes to make an import beer and the
other that wants to use the barely to make bread. Most people, if answering
seriously, could acknowledge that bread is more important in a healthy diet than
beer. Who does the farmer sell to? Should the reason someone wants to buy his
product matter? Shouldn't he just sell for the highest price? These are the
difficult questions about wants and needs that economics struggles to answer.
 Maslow's Hierarchy of Need theory of Motivation

• Developed by Abraham Maslow in 1943, his need

hierarchy concept of motivation is a widely used
theory of motivation in our organizations. This
theory primarily attempts to answer the question
what factors motivate employees at work?
According to Maslow's experiment, he finds five
basic needs which motivate employees to behave in
certain ways at work. These five needs are related
to each other and arranged in a hierarchical form.
 Physiological needs:
hunger, thirst, and sleep are the foundations for other
levels of needs. In physiological terms, these are the
strongest motivators to act in a particular job. These
basic needs arise out of physiological or biological
tension and they are important to sustain life. In our
organizations these needs are generally satisfied by
adequate salary and work environment. Once the
physiological needs ie satisfied, the employee will
start to work for higher level of needs.
• Security needs: once physiological needs are
met, the security needs become predominant.
These needs are protection against danger,
threat and deprivation. Most of these needs
are satisfied by job security, medical and
retirement benefits provided by the
organization. A manger can satisfy these
needs by providing adequate incentives and
benefits to employees.
• Social needs: next to the security needs, people
need to have a sense of belonging and acceptance
to motivate their behavior towards certain action.
These needs include the needs for association with
others, belonging to groups, and giving and
receiving friendship and affection. Such needs are
generally satisfied by relationship with friends,
families and co workers. Managers can satisfy these
needs at work by allowing employees t interact with
co workers.
 Esteem needs:
once social needs are satisfied, the esteem needs become
predominant. Esteem needs include the needs for self
respect, respect of others and ego or status. Self respect
is the internal recognition whereas respect of others is
the internal recognition whereas respect of others is the
external recognition. The manager can provide self
respect by offering a nice office, job title and similar pay
arrangements. On the other hands giving them
challenging and meaningful jobs may motivate people.
These are the special sources of motivation to work.
 Self actualisation needs:
• this is the final and highest level of needs that arise
after the completion of other four needs of Maslow's
hierarchy of needs. The self actualisation needs
include achieving the potential within oneself,
maximum self development, creativity and self
expression. The fulfilment of such needs depends on
how a manager provides opportunities for his
subordinate to participate in decision making, learn
new things on the job and in the organization. In other
words, in this stage employees seek challenging work
assignments that allow for creativity. There should be
opportunities for personal growth and advancement.
 Some important facts about Maslow's hierarchy of needs

• Maslow categorises five needs into two levels.

Higher and lower needs. Physiological and
security are the lower level needs, whereas social,
esteem and self actualization needs are the higher
order needs. The lower level needs are satisfied
by the managers by offering higher salary and
wages, pleasant working conditions, medical
insurance and retirement benefits. On the other
hand, higher level needs are satisfied by providing
opportunity for participation in decision making,
challenging and meaningful jobs.
• Maslow argues that the average person is
satisfied 85 percent in physiological needs, 70
percent in security needs, 50 percent in social
needs, 40 percent in self esteem needs and 10
percent in self actualization needs.
• The lower order needs are dominant early in
life, whereas the higher order needs become
more important as a person matures.
 Weaknesses of Maslow's needs hierarchy theory

• The model may not apply at all times, in all places and in all
circumstances. It may not follow the sequence stated by
Maslow. Different people may have different orders.
• The behaviour of a man is not a result of his needs or desires
only. There is many other determinant of behaviour such as
perceptions, expectations, and experience.
• A person is hardly motivated by a single need. Motivation is
caused by multiplicity of needs.
• It is general expression not specific. Hierarchical order is not
very much right as Maslow himself accepted.
• People differ in their expectations ; the same need does not
lead to the same response in all individuals.
 
• While the five needs are presented separately
from the viewpoint of discussion, a manager
should understand that they are probably all
active in actual behaviour pattern. For
example, an employee may desire esteem and
self actualisation needs even when his or her
physiological needs and security needs are not
satisfied.
 Herzberg's Motivation Hygiene Theory
• Herzberg and his associates found that people
like to work in those organizations where two
factors hygiene and motivator are present.
Hygiene factors are pay, working conditions
(heating, lighting and ventilation), company's
policy, and quality of supervision. These
factors lead to increase productivity.
• Motivation are, on the other hand, the feeling
of self improvement, recognition,
achievement, and a desire for greater
responsibility. In their experiment at
Pittsburgh industry, they asked two hundred
accountants and engineers to recall their
experience at work.
• Accountants and engineers responded that they were
motivated to work when motivator factors were present
in their jobs. For them these factors were strong
determiners of job satisfaction, also referred to as
satisfiers. They also experienced strong dissatisfaction in
the absence of hygiene factors. Thus, hygiene factors are
also known as dissatisfies. . In other words, presence or
absence of hygiene factors either result in dissatisfaction
or no satisfaction, whereas presence or absence of
motivator factors can cause satisfaction or no
satisfaction. Managers should understand these finding
to motivate employees at work.
 Hygiene factors

• Company policy and administration

• Technical supervision
• Interpersonal relations
• Salary
• Job security
• Personal life
• Work conditions.
• Status
• The absence of these factors causes job
dissatisfaction. Absence of these factors leads to
absenteeism, turnover and grievances. Job
dissatisfaction increases. When these factors are
adequate, individuals will not be dissatisfied.
 Motivating factors
• Achievement, the drive to excel.
• Recognition, of high performance
• Responsibility, obligation to perform assigned jobs
• Advancement, promotion to higher level post.
• Personal growth: opportunity for growth.
• The presence of these factors causes job
satisfaction but absence of these factors does not
lead to job dissatisfaction. These factors motivate
employees.
• If motivating factors are not provided to the
employees then they will not be motivated.
But the absences of motivating factors will not
necessary cause for job dissatisfaction. These
factors cause high levels of job satisfaction.
However absence of these factors does not
lead to job dissatisfaction.
• The relevance of two factor theory for mangers
is significantly very high. Traditionally,
managements used to believe that the best
way to motivate employees by providing
attractive pay and other facilities. Herzberg’s
theory suggests that such measures may only
be a preventive measure against employee
dissatisfaction. If managements are interested
in motivating employees, they must be
prepared to do something more than all this
like to provide for professional growth in the
job and so on.
• Money is a week motivational tools because it
can only eliminate dissatisfaction. Managers
should understand that both hygiene and
motivation factors are important. They have
their own significance. Hygiene factors
prevent dissatisfaction and motivation factors
provide satisfaction.
 Appreciation of Herzberg's theory

• Herzberg's theory is widely used in management research

and practice. Using this approach, a series of job
enrichment studies (how to make job interesting) were
made. These studies concluded that job enrichment leads
to beneficial outcomes both for the individuals involved
and for the employing organization.
• The distinction between motivator and hygiene factors has
made it easy to predict the likely impact of various
planned changed on motivation. It provides basic ideas for
managers to plan in such a way as to enhance employee
motivation on the job.
 Criticism of Herzberg theory /Limitations of motivation hygiene theory

• The outcome of Herzberg's experiment was based on

white collar employee's responses (accountants and
engineer). Thus it is difficult to generalise its outcome
for the interpretation of motivating of blue collar
workers.
• A number of researchers have failed to provide empirical
support for the major finding of the Herzberg theory. It
ignores the situational variables.
• Herzberg assumes that there is a relation between
satisfaction and productivity. However his research
methodology only looked at satisfaction, not at
productivity.
 Comparison of Maslow's and Herzberg's theories

• Maslow has need hierarchy. Higher order needs

become operational after the satisfaction of lower
order needs.
• Maslow thinks unsatisfied needs motivate. Herzberg
thinks that only the higher order needs motivate.
• Both theories are related with needs. Maslow
describes needs. Herzberg describes factors that
make a person satisfied or dissatisfied with his job.
Herzberg factors fit with Maslow's needs.
 Theory X and Theory Y
• Theory X and Theory Y are theories of human
motivation created and developed by 
Douglas McGregor  in the 1960s that have
been used in human resource management.
 Theory X

• In this theory management assumes employees are

automatically lazy and will avoid work if they can and they
instantly dislike work. As a result of this, management
believes that workers need to be closely supervised.
According to this theory, employees will show little ambition
without attracting incentive program and will avoid
responsibility whenever they can. A theory X manager
believes that his or her employees do not really want to
work, that they would rather avoid responsibility and that it
the manager’s job is to structure the work and energize the
employees. A systematic control system is developed to
control and supervise the activities of the entire staff of the
organization
 The assumptions are:
– Employees are lazy. They dislike work and tend to avoid it.
– Employees need to be controlled and threatened to get
the job done.
– Employees avoid responsibility. They seek formal
direction by superiors.
– Employees seek security above all. They display little
ambition and initiative.
– Most employees have little capacity for creativity in
solving organizational problems.
– It is pessimistic, static, rigid and control oriented. It
presents negative view of people. Managers need to
persuade, reward, punish, control and direct employees.
 Theory Y

• In this theory, management assumes employees are self-

motivated and exercise self-control. It is believed that
employees enjoy their mental and physical work duties.
According to them work is as natural as play. They possess
the ability for creative problem solving, but their talents
are underused in most organizations. Given the proper
conditions, theory Y managers believe that employees will
learn to seek out and accept responsibility and to exercise
self-control and self-direction in accomplishing objectives
to which they are committed. A Theory Y manager
believes that, given the right conditions, most people will
want to do well at work. They believe that the satisfaction
of doing a good job is a strong motivation.
 The assumptions are:

• Employees view work as a natural activity like play or rest.

• Employees exercise self directing and self control when
committed to objectives. Self direction is better than
external control
• The average employee can learn to accept and seek
responsibility. Employees want to learn new thing for self
development.
• Creativity is not the monopoly of managers. Employees
also have capacity for creativity in solving problems.
Human being have unlimited potential.
• Greater freedom in doing work and challenging work
provides long lasting incentives.
• The theory Y is optimistic, dynamic and
flexible. It emphasizes self control and
direction. It aims at integration of employees
goals with organizational goals. It presents a
positive view of people.
 McClelland's Motivation Achievement theory

• McClelland, a psychologist, developed his

Achievement Motivation Theory in the 1940s.
McClelland developed his theory based on his
belief that all human beings have needs and
naturally seek out ways to have those needs
met.
This theory divides human needs as follows:
 The Need for Achievement Branch of the Theory

• This is the desire to solve complex problems and

master complex tasks. People with a high degree
of nAch are interested to take more job challenges
and care less about money as motivator.
Therefore people with high nAch tend to be
successful entrepreneurs. They establish
challenging goals and work hard to achieve them.
Whereas people with a low degree of nAch work
for money and other financial incentives. Instead
of working for developing their own goals, they
like to work for goals of others in the organization
 The Need for Power

• This refers to a desire to control and influence others in

the organization. People with a high degree of nPow desire
to control and influence others behaviors and want to take
leadership positions. Some other characteristics of the
people with this need are, for example, ready to speak and
suggest more in meetings and try to evaluate situations
and events publicly in different forum. There are
personalized and socialized needs for power. People with a
high degree of personalized power tend to use power for
the benefit of themselves and their careers in the
organization. Whereas people with a high degree of
socialized power tend to used power for the benefit and
welfare of society or to help others.
 The Need for Affiliation

• It refers to the desire to maintain good relations with coworkers,

managers and other in the organization. People who fall into this
category are concerned with gaining and maintaining friendships.
People with the high degree of nAff seek approval of other and
avoid any sort of conflict or confrontation in the organization.
These individuals don't necessarily want to be leaders, but they do
enjoy teaching and influencing others.
It is desire to establish and maintain friendly and warm relationship
with others. Managers coordinate work activities of subordinates.
They are also effective for the jobs such as sales manager or sales
supervisor. However, people with a high degree of nAff tend to be
less fit in making decisions and allocating resources properly
• All these needs are acquired and develop
overtime as a result of life experience. In a
study conducted in India, Mc Clelland found
that people with a high degree of
achievement have started their own business
and invested more to expand their business
after attending a business training program.
• Entrepreneurs have high achievement need.
Managers have high power need. Nurses have
high affiliation need.
 Clayton Alderfers ERG theory of Motivation

• To bring Maslow’s need hierarchy theory of

motivation in synchronization with empirical
research, Clayton Alderfer redefined it in his
own terms. His rework is called as ERG theory
of motivation. He re categorized Maslow’s
hierarchy of needs into three simpler and
broader classes of needs:
• Existence needs: related to the physiological and safety of
human being, they are needs for food, shelter and safe
working conditions.
• Relatedness need: these needs include human desires to
satisfy interpersonal relationships. Such needs are mostly
fulfilled interacting with other people, receiving public
recognition and through the feeling of interpersonal safety.
• Growth needs: they include desires to make growth and
development while working in the organization. These
desires normally lead to the fulfilment of self esteem and
self actualisation needs.
• According to Maslow, an individual remains at a
particular need level until that need is satisfied. While
according to ERG theory, if a higher- level need
aggravates, an individual may revert to increase the
satisfaction of a lower- level need. This is called
frustration- regression aspect of ERG theory. For
instance- when growth need aggravates, then an
individual might be motivated to accomplish the
relatedness need and if there are issues in accomplishing
relatedness needs, then he might be motivated by the
existence needs.
• While Maslow’s need hierarchy theory is rigid as it
assumes that the needs follow a specific and orderly
hierarchy and unless a lower-level need is satisfied, an
individual cannot proceed to the higher-level need; ERG
Theory of motivation is very flexible as he understood the
needs as a range/variety rather than understanding them
as a hierarchy. According to Alderfer, an individual can
work on growth needs even if his existence or relatedness
needs remain unsatisfied. Thus, he gives explanation to
the issue of “starving artist” who can struggle for growth
even if he is hungry.
• Although based on the work of Maslow, this
theory states that a person can have lower
order needs such as food and shelter and, at
the same time, can have higher order needs
such as growth and ego. Similarly, a person
tries to satisfy his or her growth needs even
though related needs are not met fully.
• There is no difference in the arrangement of the
order of needs of Maslow's and Adler's theories
of motivation. Whereas existence needs are
similar to Maslow's physiological and safety
needs, relatedness needs generally correspond
to his affiliation needs. Similarly, Adler's growth
needs correspond to Maslow's esteem and self
actualization needs. The difference is in the way
the needs are satisfied. Maslow states that only
unfulfilled needs are the prime motivators.
• In contrast, according to Adler's theory, if a
person continuously fails to satisfy his or her
higher order needs, he or she might return to
satisfy the lower order needs. In other words,
unlike Maslow's model, the Adler model states
a frustration regression process in the
satisfaction of needs.
 Expectancy theory of motivation

• This theory was propounded by Victor Vroom.

He has explained motivation as expectancy
and hopes. If people perform high, they
expect high salary/ benefit, attractive benefits
and remuneration. According to this theory
there is interrelationship in between efforts,
performance, expectancy and outcome.
 The theory states that an individual's performance depends on

• Effort to performance (E--- > P) expectancy: it

refers to person's perception of the probability
that effort will lead to performance. Expectancy
is defined as a probability range between 0.0
and 1.0. When a person expects that his effort
will certainly accomplish the task then E---->P
will be 1.0. On the contrary, when a person is
not certain that his or her performance will lead
to task performance then E---->P will be close
to 0.0.
Performance to outcome (P-->O) expectancy

• the degree to which an individual perceives the

probability that performance will lead to certain
outcomes. If a person perceives there is
absolute certainty that a high performance will
lead to a pay raise then P--->O will be close to
1.0. Whereas, if the individual perceives that
there is no certainty of a pay raise even after a
high performance level then P---->O will be
close to 0.0.
 Outcome valances
rewards performance relationship

• when an individual perceives that outcome leads to

a high level of satisfaction then he or she will be
motivated to work. Valance is the expected
satisfaction or dissatisfaction that an individual feels
towards an outcome. It ranges from -1 to +1 or from
-100 to +100. A positive valance means that the
outcome will satisfy our needs whereas a negative
valance means that the outcome will not satisfy our
needs.
• In more practical terms, expectancy theory
says that an employee will be motivated to
exert a high level of effort when he or she
believes that effort will lead to good
performance appraisal, that a good appraisal
will lead to organizational rewards such as
bonus, a salary increase, or a promotions, and
that the rewards will satisfy the employees
personal goals.
• As far as practical implications of expectancy theory are
concerned, three conditions must be met to motivate
individual behavior at work. Firstly, the E---->P
expectancy must be well above zero. In such a situation
workers expect that exerting effort will certainly produce
a high level of performance. Second, similar to E----->P,
the P----->O expectancy must also be well above zero.
That is, the person must believe that performance will
realistically result in valued outcomes. Finally, the sum
of all valances to the individual must be positive.
Apparently, performance outcomes influence work
effort only when they are valued by employees.
  
Leadership

• The ability to influence a group toward the

achievement of goals is called leadership.
Leadership is a special case of interpersonal
influence that gets an individuals or group to
do what the leader wants done.
• Although it is very difficult to say about leadership
very definitely, we are convinced that there should
be a common quality of influencing people among
the leaders. Therefore, to influence people,
leaders should provide the environment to work in
order to achieve individual as well as
organizational objectives. In this process, a leader
has to play several and distinct roles from common
people, and therefore, we have an obvious need
for effective leadership in our organizations.
• Leadership behavior in organizations refers to
the ability of a leader or manager to influence
people by designing, teaching, serving and
offering environments and opportunities for
the process and prosperity of people and
organizations.
 Features of leadership

• Process of interpersonal influence: leadership is a process of

interpersonal influence. A leader, in it, influences the behaviour
and activities of subordinates though power, inspiration, reward,
motivation and other tools. A manager is said to be a leader
when he is able to influence his subordinates in accordance with
organizational requirements.

• Leaders and followers: there should be mutual reaction between

a leader and followers. Followers are supposed to follow their
leader's foot/steps only by getting inspiration from his ability
and behaviour. Similarly, followers influence the leader through
their performance, effort and behaviour. Indeed, they influence
the behaviour of each other through mutual which and not by
the use of authority.
• Common goals: leadership aims at the pursuit of common goals,
in other words, a leader and followers must have common
objectives. Leaders direct and guide the followers to gain planned
objectives. Followers also perform their activities in accordance
with directions from the leader. There is no meaning of
leadership if objectives of the leader and the followers are
different.

• Continuous exercise: leadership is a continuous managerial

process till the existence of an organization. Managers have to
influence the behaviour and performance of subordinates on a
regular basis. Whenever leadership becomes poor, the
performance of people turns into a mere routine function and
organizational effectiveness may decrease. Hence, it is the
responsibility of the manager to direct and guide the
subordinates regularly.
• Leadership is situational: the role of leadership
assumes significance in critical situations. It is
the duty of leader to inspire subordinates to
overcome the critical situation and help them
to lead to the destination in a successful way.
A leader must be innovative and creative to
handle difficult and unexpected situations.
• Rest on power: leadership rests on power rather than formal
authority. Here, power focuses on the personal outstanding
qualities of the leader through which he influences the flowers. In
the contest of the manager, some formal authority is rested due to
managerial designation. But, at this stage, there is little value of
formal authority in comparison to power ie personal quality.

• Blend of inspiration, motivation and communication: leadership is

a blend of inspiration, motivation and commutation. It is the
process of influencing the behaviour and performance of followers
by inspiring them. A leader has to apply appropriate motivational
tools to inspire subordinates. For this, there must be free and
complete flow of information between managers and
subordinates. In the absence of any one element, a leadership
mission cannot be successful.
 Functions of leadership

• Leadership is the art of influencing the

behavior and performance of others to
achieve common goals. As leader, a manager
has to perform various types of functions. All
activities of the organization totally
concentrate on the functions of the manager.
The following are the major roles that a
managerial leader plays in the organization.
• Goal determination: this is the primary function of a manager.
As a leader of the organization, it is the responsibility of the
manager to establish organizational objectives. He determines
both short term and long term goals of the organization.
Determination of goals is a mental works which needs creativity
and vision. For setting goals, he might have to take technical and
logical support from skilled person.
• Coordinate organizational activities: a leader lays the role of
coordinator. Organizational activities are divided into different
groups on the basis of their nature. A separate department is
created for each work and handed over to the responsible
person. It is the responsibility of the manager to maintain
coordination among all the departments and their activities. But
it is a must to achieve the determined goals.
• Represent the organization: as a leader, a manager represents his
group and also the organization. He makes agreement and contract
with outside organizations and authorities on behalf of the
organisation. He also represents the organization while
participation in meeting, conference, seminars and other programs.
• Integrate objectives: a manager plays an important role in
integrating both individual and organizational objectives. In it the
workers might see their best performance when they feel that their
personal objectives will be fulfilled after the attainment of
organizational objectives. This objective is a part of managerial
functions of the leader to develop such an environment in the
organization. Hus when employees perform their work by using
their best effort and efficiency, it will become easy to gain
organizational objectives
• Direct and motive staff: the manager is responsible for
implementing plans. After designing the organizational structure, a
manager has to divide work among the staff and give clear
instructions on how to discharge the given responsibilities. Besides,
a manager has to inspire and induce groups and individuals to
perform the job efficiently.
• Organize activities: as a head of the organization, a manager has to
organize many activities of the enterprise. His activities involve
production, distribution etc, which are essential to achieve planned
objectives. At the initial stage, it is essential to identify various types
of activities to be performed in the organization. And again on the
basis of their nature, they should be divided into groups and
delegated to responsible employees.
• Encourage teamwork: the feeling of teamwork among all the
authorities of the organization is a must to gain common objectives.
It is the responsibility of leaders to encourage all the subordinates to
work as a group. For this, he has to maintain coordination among all
the departments and individuals working in the organization.
• Communication: communication is an important tool for the flow of
information in and outside the organization. The manager provides
instructions, guidance and suggestions to the subordinates through
appropriate means of communication. In the similar manner, he gets
feedback of output and problems. Thus, it is the responsibility of the
manager to develop a proper communication system in the
organization.
• Control and supervision: controlling is one of
the important functions of manager to
measure actual achievement of work with that
of planned works and take corrective action.
For this, it is the responsibility of the manager
to supervise the performance of subordinates
according to time and situation. But, a
corrective action must be taken if any
deviation is found.
• Leadership is an important function of management. It is
the key to effective managerial performance.
Organizational success depends on the quality of
leadership. People are the focus point of leadership.
Leadership involved with initiating action. Someone in the
organization has to tell employees what to do. Somebody
has to see that the employees do their work to the best of
their ability. Also, someone has to direct, lead, supervise,
and motivate the employees. Thus, leadership involves
determining the course, giving orders and instructions and
providing supervision. The more effective the leadership
process, the greater will be the contribution of employees
to organizational goal. Leader ship influences employees’
behavior towards goal achievement.
• According to Stoner, Freeman and Gilbert
“Leadership is the process of directing and
influencing the task related activities of group
members. “

• According to Stephen Robbins “Leadership is

the ability to influence a group towards the
achievement of goals.”
 Theories of leadership

• Leadership is one of the most observed and least

understood phenomena on earth. There is not any single
theory to understand leaders and followers behaviors.
There are different perspectives of leadership that were
developed in different times. No one can easily predict
which theory is most useful to understand the practice of
leadership in organizational settings. However, it is useful
to understand different aspects of these perspectives in
order to evaluate critical issues related to leadership in
our organization. In the following part, different
perspectives will be presented.
 Trait perspective (theory) of leadership
The trait approach to leadership is based on early
research which assumes that a good leader is
born and not only made. It is a modification of
The great man theory which assumes that
leadership qualities can be acquired. The trait
theory of leadership emphasizes that there are
certain identifiable qualities that good leaders
must possess. Trait approach considers
leadership as a set of qualities possessed by an
individual. Leadership qualities may be in born or
they may be acquired through higher education,
training and practice.
• Some researchers on trait theory emphasize on
intelligence, initiative, self confidence, and individuality
being superior ability for leadership. Others stress
intelligence, scholarship, dependability, responsibility,
social participation and socio economic status as the
basics of leadership. However, the common traits
necessary for successful leadership are intelligence,
imitative, imagination, optimism, enthusiasm, courage,
creativity, originality, communicative ability, self
confidence, human understanding and a sense of fair
play.
• Several studies were made on the common
traits to understand leader's behavior and
distinguish them from non leaders. As a result,
recently, researchers have been successful in
this part. They have identified following six
common traits to distinguish leaders from non
leaders.
Six traits that differentiate leaders from non leaders

• Drive: leaders exhibit a high level of effort. They have a

relatively high desire for achievement. They are
ambitious, they have a lot of energy, are tirelessly
persistent in their activities and they show initiative.
• Desire to lead: leaders have a strong desire to influence
and lead others. They demonstrate the willingness to
take responsibility.
• Honesty : leaders build trusting relationship between
themselves and followers by being truthful or by
showing high consistency between words and deed.
• Self confidence: followers look to leaders for an absence of
self doubt. Leaders, therefore, need to show self
confidence in order to convince followers of the rightness
of goals and decisions.
• Intelligence: leaders need to be intelligent enough to
create, gather, and interpret large amount of information
and to be able to create vision, 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.
 Behavioral theories
• The failure of trait theory to identify the clear cut set of
traits has motivated researchers to focus attention on
leadership behavior. Behavioral theory attempts to describe
what an effective leader should perform in the day to day
management. And effective leader is one who performs
those acts, and who supports groups to achieve objectives.
The overall goal of the behavioral approach is to identify
and measure relevant leadership actions and behavior that
leads to enhance subordinates productivity and morale.
Hence, the attention has shifted from who the leaders are to
what the effective leaders do, how they delegate task, how
they communicate and try to motivate employees.
• Several attempts have been made to identify
the dimensions of leader behavior during,
1955 to 1960s. The three leadership behavior
studies that attempt to identify the leadership
behavior are explained below.
 Ohio state studies
• A group of researchers at Ohio state university
conducted a study of leadership behavior and
effectiveness. The basic purpose of this study
was to identify the independent dimensions of
leader behavior and to determine the effect of
these dimensions on the work performance
and satisfaction.
• After considerable research and analysis, the
researchers concluded that there were two dimensions
of the leader's behavior. They are structure and
consideration. Structure refers to the extent to which a
leader is likely to set goals, define and structure his or
her roles, define and organize the task which his
followers have to do, specifies work relationship and
instructions and regulated the performance of his
group members. Leaders scoring high structure could
achieve high productivity or performance.
• Consideration is described as the extent to
which the leader has supportive work
relationship characterized by warmth and
mutual trust, good relations and a respect for
feelings, ideas and suggestions of group
members. There is a strong concern for
followers comfort, well being, status and
satisfaction. The leader is friendly,
approachable and treats subordinates fairly.
• The two leadership orientations discussed
above are independent of each other. That is,
leader may be high in both, high in one while
low on the other or low on both. However, the
studies concluded that the combination of high
consideration and high structure in leader
behavior were likely to result in high
productivity and satisfaction at the same time.
 Michigan studies
• Researchers at university of Michigan, lead by
Rensis Likert began studying leadership in the
late 1940s. The purpose of this study was to
identify the behavioral characteristics of
leaders that were related to performance
effectiveness. After studying a large number of
supervisors in several factories, the Michigan
group also came up with two dimensions of
leadership behavior ie employee centered and
production centered.
• Managers using employee centered leader behavior
allowed sufficient freedom and provided necessary
assistance to subordinates. They emphasized on
interpersonal relations, and took a personal interest
in the hands of their employees. Their primary
concerned was the welfare of subordinates. On the
other hand, a production centered leader paid close
attention to subordinates work, explained work
procedures and regarded group members as focal
point.
• Michigan researchers strongly favored
employee oriented leadership behavior.
Employee oriented leaders were associated
with high group productivity and higher job
satisfaction. Production oriented leaders were
associated with low group productivity and
lower job satisfaction.
 The leadership grid
we have been familiar with two opposite dimensions
of leadership behaviours, people oriented and task
oriented from Michigan studies. Some leaders are
more people oriented while others are task
oriented. Moreover, some leaders are high in one
perspectives and others are low in another
perspectives. It means that it is not necessary that a
leader typically behaves within only one
perspectives, ie people oriented or task oriented.
Based on the theory of leadership behaviour by
Michigan studies, Robert Blake and Jane Mouton
have developed a different approach of leadership
known as the leadership grid.
• Leadership grid states the leadership
effectiveness behaviours in terms of leader's
orientations such as people concern or
production concern. Some leaders have people
concern orientation and some are production
concern orientation. However, a leader might
show his moderate of all these behaviours and
thus they are equal in both dimensions.
• Furthermore, some leaders are more people
concerned and less production concerned. In
contrast, some are more production concerned and
less people concerned. In the figure, hi hi perceptive
of leadership behaviours (9, 9) incorporate both
concern for people and concern for production,
which are crucial to enhance commitment,
participation and conflict resolution to get the result.
According to leadership grid theory, there are mainly
five main perspectives of leaderships.
• According to this theory, leaders are most
effective when they achieve a high and
balanced concern for both people and task.
Blake and Mouton argued that a leader's
managerial style is a point on the grid; they
have identified five combinations of styles for
illustrative purposes, out of 81 possible
combinations.
• 1,1 Impoverished leadership: there is little concern
neither for productions nor for people. This is the
worst style of leadership. Their attitude towards
getting things done and maintaining relation with
people are casual. Exertion of minimum effort is
required to get work done and sustain organization
members.

• 1,9 Country club leadership: under this style the

leader is primarily concerned about the people and
has minimum concern for production. He tries to
maintain friendly relations with subordinates to
motivate people to work with enthusiasm.
• 9,1Autocratic task management: the leader s mainly
concerned with production and has little concern
for people. He focuses on task by planning and
controlling the production environment. People's
needs and satisfaction are secondary matters.

• 5,5 Middle of the road leadership: this is a safe style

where there is moderate concern for production
and people. The manager attempts to balance and
trade off concern for work in exchange for a
satisfactory level.
• 9,9 Team leadership: this is the most effective
combination. This is practiced by those leaders who
achieve high production through effective use of
participation and involvement of people. The leader
creates highly encouraging maximum concern for both
production and people.

The managerial grid is used to assess leadership styles of

men and women prior to training. This style assumes
that people can be trained to become 9,9 leaders. It is a
technique of organizational development. It reality the
extreme positions shown in the grid are rarely found.
 Contingency theories

• Contingency approach assumes that appropriate leader

behavior varies from one situation to another. The
effectiveness of leadership depends on the interaction of
the leader's personal characteristics, the leader's behavior
and factors in the leadership situation. It is based on the
idea that effective leadership cannot be defined by any
one factor. A successful leader must be adoptive and
flexible. As the situation changes, the leader must change
his style of leadership. The situational theory says that
there is no one best style of leadership universally
applicable for all situations.
• The same leadership style may be effective under
one situation and ineffective under the other. The
situational approach to leadership is based on the
assumption that all instance of successful leadership
are somewhat different and requires a unique
combination of leaders, followers and situations. This
interaction is commonly expressed in a formula: SL =
f(L, F, S) where SL stands for successful leadership, F
stands for function, and L, F and S are the leader, the
follower and the situation respectively. So the leader,
follower and the situation must be appropriate for
one another. Some of the major studies based on
situational perspective are described below:
 Fielder‘s Contingency Model

• Fred E Fiedler developed the first contingency

model in 1967. Fiedler and his associates made a
research for more than thirty years and developed
a theory called Fiedler's Contingency Theory. He
proposed that effective group performance
depends on the popper match between leader's
style of interacting with his followers and the
degree to which the situation allowed the leader
to control and influence. He distinguished two
leadership personalities which are task oriented
leaders and human relations oriented leaders.
• Fiedler's model suggests that the best
leadership style depends on the level of
situational control, that is, the degree of
power and influence that the leaders possess
in a particular situation. The situational
control is affected by three factors in the
following order of importance: leader member
relations, task structure and position power.
 Leader member relations:

leader member relation is the degree to which

employees trust and respect the leader and
are willing to follow his guidance. A leader can
be more effective if he is trusted and liked by
followers and if they are willing to accept his
influence.
 Task structure:
• task structure refers to the extent of clarity
standardization in the work activities assigned
to the group. If the task is clear and routine,
group members can be easily held responsible
for performance. Low task structure describes
and ambiguous situation which changing
circumstances unpredictable events.
 Position power:
position power is the extent to which a leader
possesses legitimate, rewarding and coercive
power over subordinates. A situation with
high position power lets the leader hire
people and directly reward or punish behavior.
A leader with less power cannot take such
action.
 Fiedler's Contingency Model

• Matching Leadership Style to a Situation

• What is your natural leadership style?
• Do you focus on completing tasks or on building
relationships with your team?
• And have you considered that this natural style of
leadership might be more suited to some situations than it
is to others?
• In this article, we'll explore Fiedler's Contingency Model,
and we'll look at how it can highlight the most effective
leadership style to use in different situations.
Make sure your leadership style is a perfect match to your
situation
 Understanding the Model
• The Fiedler Contingency Model was created in the mid-1960s by Fred Fiedler, a
scientist who studied the personality and characteristics of leaders.
• The model states that there is no one best style of leadership. Instead, a leader's
effectiveness is based on the situation. This is the result of two factors – "leadership
style" and "situational favorableness" (later called "situational control").
Leadership Style
• Identifying leadership style is the first step in using the model. Fiedler believed that
leadership style is fixed, and it can be measured using a scale he developed called
Least-Preferred Co-Worker (LPC) Scale (see Figure 1).
• The scale asks you to think about the person who you've least enjoyed working with.
This can be a person who you've worked with in your job, or in education or training.
• You then rate how you feel about this person for each factor, and add up your
scores. If your total score is high, you're likely to be a relationship-orientated leader.
If your total score is low, you're more likely to be task-orientated leader.
 Figure 1: Least-Preferred Co-Worker Scale
Unfriendly 1   2   3   4   5   6   7   8 Friendly

Unpleasant 1   2   3   4   5   6   7   8 Pleasant

Rejecting 1   2   3   4   5   6   7   8 Accepting

Tense 1   2   3   4   5   6   7   8 Relaxed

Cold 1   2   3   4   5   6   7   8 Warm

Boring 1   2   3   4   5   6   7   8 Interesting

Backbiting 1   2   3   4   5   6   7   8 Loyal

Uncooperative 1   2   3   4   5   6   7   8 Cooperative

Hostile 1   2   3   4   5   6   7   8 Supportive

Guarded 1   2   3   4   5   6   7   8 Open

Insincere 1   2   3   4   5   6   7   8 Sincere

Unkind 1   2   3   4   5   6   7   8 Kind

Inconsiderate 1   2   3   4   5   6   7   8 Considerate

Untrustworthy 1   2   3   4   5   6   7   8 Trustworthy

Gloomy 1   2   3   4   5   6   7   8 Cheerful

Quarrelsome 1   2   3   4   5   6   7   8 Harmonious

• The model says that task-oriented leaders usually
view their LPCs more negatively, resulting in a lower
score. Fiedler called these low LPC-leaders. He said
that low LPCs are very effective at completing tasks.
They're quick to organize a group to get tasks and
projects done. Relationship-building is a low priority.
• However, relationship-oriented leaders usually view
their LPCs more positively, giving them a higher
score. These are high-LPC leaders. High LPCs focus
more on personal connections, and they're good at
avoiding and managing conflict. They're better able
to make complex decisions.
 Situational Favorableness

Next, you determine the "situational favorableness" of your

particular situation. This depends on three distinct factors:
• Leader-Member Relations – This is the level of trust and
confidence that your team has in you. A leader who is more
trusted and has more influence with the group is in a more
favorable situation than a leader who is not trusted.
• Task Structure – This refers to the type of task you're doing:
clear and structured, or vague and unstructured.
Unstructured tasks, or tasks where the team and leader have
little knowledge of how to achieve them, are viewed
unfavorably.
• Leader's Position Power – This is the amount of power you
have to direct the group, and provide reward or punishment.
The more power you have, the more favorable your
situation. Fiedler identifies power as being either strong or
weak.
Applying the Fiedler Contingency Model

• Step 1: Identify your leadership style

Think about the person who you've least
enjoyed working with, either now or in the
past.
Rate your experience with this person using the
scale in Figure 1, above. According to this
model, a higher score means that you're
naturally relationship-focused, and a lower
score means that you're naturally task-
focused.
 Step 2: Identify your situation

• Answer the questions:

• Are leader-member relations good or poor?
• Is the task you're doing structured, or is it more
unstructured, or do you have little experience of solving
similar problems?
• Do you have strong or weak power over your team?
• Step 3: Determine the most effective leadership style
• Figure 2 shows a breakdown of all of the factors we've
covered: Leader-Member Relations, Task Structure, and
Leader's Position Power. The final column identifies the
type of leader that Fiedler believed would be most
effective in each situation.
 Figure 2: Breakdown of Most Effective Leader Style
Leader-Member Leader's Position Most Effective
Task Structure
Relations Power Leader

Good Structured Strong Low LPC

Good Structured Weak Low LPC

Good Unstructured Strong Low LPC

Good Unstructured Weak High LPC

Poor Structured Strong High LPC

Poor Structured Weak High LPC

Poor Unstructured Strong High LPC

Poor Unstructured Weak Low LPC

• For instance, imagine that you've just started working at a
new company, replacing a much-loved leader who recently
retired. You're leading a team who views you with distrust
(so your Leader-Member Relations are poor). The task
you're all doing together is well defined (structured), and
your position of power is high because you're the boss, and
you're able to offer reward or punishment to the group.
The most effective leader in this situation would be high LPC
– that is, a leader who can focus on building relationships
first.
• Or, imagine that you're leading a team who likes and
respects you (so your Leader-Member relations are good).
The project you're working on together is highly creative
(unstructured) and your position of power is high since,
again, you're in a management position of strength. In this
situation a task-focused leadership style would be most
effective.
 Key Points

• The Fiedler Contingency Model asks you to think

about your natural leadership style, and the
situations in which it will be most effective. The
model says that leaders are either task-focused,
or relationship-focused. Once you understand
your style, it says that you can match it to
situations in which that style is most effective.
• However, the model has some disadvantages. It
doesn't allow for leadership flexibility, and the
LPC score might give an inaccurate picture of
your leadership style.
 Path goal theory of leadership

• Path goal theory was developed by Robert

House in 1971. It is based on expectancy
theory of motivation. Like other situational
models, the path goal theory attempts to
predict leadership effectiveness in different
situations. The main functions of a leader are
to clarify and set goals by providing guidance,
support and rewards.
• The term path goal is derived from the belief
that effective leaders clarify the path to help
their followers get from where they are to
achieve their work goal and make the journey
along the path easier. Path goal theory states
that effective leaders influence employee's
satisfactions and performance by making their
need satisfaction .
• The leader has to facilitate overall learning by
helping followers better understand how their
actions are linked to organizational rewards.
Employees make optimum contribution to the
organizational goals where they perceive that
their personal satisfaction is dependent on their
effective performance. He should provide
guidance and support to remove difficulties in
achieving the goals. Path goal theory identifies
four types of leader behavior to motivate and
satisfy employees.
 Directive behavior:
the leader clarifies performance goals. It is the
same as task oriented and structure behavior.
The leader focuses on planning organizing and
coordinating the activities of subordinates.
The leader tells subordinates what is expected
of them and provide specific guidance,
schedules, rules, regulations and standard.
 Supportive behavior:
• these behaviors provide psychological support
for subordinates. The leader, in this behavior,
is friendly and approachable, makes the work
more pleasant, treat employees equally and
shows concern for the status, needs, and well
being of employees. The style is similar to the
consideration in Ohio state studies.
 Participative behavior:
• participative leaders actively consult with
employees, ask for their suggestions and take
these ideas into serious consideration before
making a decision.
 Achievement oriented behavior:
• the leader sets challenging goals, expects
employees to perform at the highest level,
continuously seeks improvement in employee
performance and shows a highest degree of
confidence that employees will assure
responsibility and accomplish challenging
goals.
• Path goal theory proposes two classes of
situational variables they are personal
characteristics of group members and
environmental conditions. An effective leader is
one who understands the characteristics of
subordinates and environmental situation and
who matches his behavior accordingly. The
behavior of a leader is dependent on the nature
of situation and the characteristics of people.
• Path goal theory is more elaborate than
Fiedler's contingency theory because it takes
into account both the personality
characteristics of subordinates as well as
situational variables. It not only suggests what
type of leader may be effective in a given
situation but also explains why the leader is
effective.
 Lifecycle Theory of Leadership
• According to this model, the leader has to
match the leadership style according to the
readiness of subordinates which moves in
stage and has a cycle. Therefore, this theory is
also known as the life-cycle theory of
leadership
• The theory, developed by Paul Hersey and Kenneth
Blanchard, is based on the ’readiness’ level of the
people the leader is attempting to influence. Readiness
is the extent to which followers have the ability and
willingness to accomplish a specific task. Ability is the
knowledge, experience, and skill that an individual
possesses to do the job and is called job readiness.
Willingness is the motivation and commitment required
to accomplish a given task. The style of leadership
depends on the level of readiness of the followers.
 The readiness(R) is divided into four levels which are:

• R1 - low follower readiness - refers to low

ability and low willingness of followers i.e.
those who are unable and insecure.
• R2 - low to moderate follower readiness -
refers to low ability and high willingness of
followers i.e. those who are unable but
confident
• R3 - moderate to high follower readiness -
refers to high ability and low willingness of
followers i.e. those who are able but insecure

• R4 - high follower readiness - refers to high

ability and high willingness of followers i.e.
those who are both able and confident
• The direction is provided by the leader at the
lower levels of readiness. Therefore, the
decisions are leader directed. On the other
hand, the direction is provided by the
followers at the higher levels of readiness.
Therefore, the decisions in this case are
follower directed.
• For each of the four levels of readiness, the
leadership style used may be a combination of
task and relationship behavior.
• By combining the task and the relationship
behavior, we arrive at the following four
different styles of leadership which
correspond with the different levels of
readiness.
• - Telling: This style is most appropriate for low
follower readiness (R1). It emphasizes high
task behavior and limited relationship
behavior.
• - Selling: This style is most appropriate for low
to moderate follower readiness (R2). It
emphasizes high amounts of both task and
relationship behavior.
• - Participating: This style is most appropriate
for moderate to high follower readiness (R3). It
emphasizes high amount of relationship
behavior but low amount of task behavior.

• - Delegating: This style is most appropriate for

high follower readiness (R4). It emphasizes low
levels of both task and relationship behavior.
  
Leadership styles

• Leadership is the process of influencing the

subordinates so that they can perform their
works willingly and enthusiastically to achieve
common goals. The philosophy of leadership
might either be superior oriented or
subordinate oriented. Generally, it is
associated with power of authority of the
leader. The widely accepted leadership styles
are as follows.
 Autocratic leadership

• This is also known as authoritarian and

dictatorial leadership. In this leadership, the
leader has the sole authority to take a
decision. In other words, a leader believes in
centralized power and expects all decisions
from him without consultation with
subordinates. He always expects subordinates
to accept his decisions without any comment.
In short, he behaves like a dictator
• As a leader, manager centralizes total power with him and
enjoys full authority and bears responsibility of the
organization. He determines plans and policies
independently and implements them according his
knowledge and logic. He never takes any suggestion and
guidance from his subordinates. He solves every problem
of the organization himself. He also defines what to do
and how to do the work to subordinates. He determines
rewards to obedient and efficient subordinates and holds
out threats of punishment to inefficient or indiscipline
subordinates.
• In autocratic leadership, there is the system of
one way communication. In it the information
of instruction and guidance only flows from
top level to the subordinate level. This
autocratic leadership can also be sub classified
into two group strict autocracy and
benevolent autocracy.
• In strict autocracy, as leader always uses negative
motivation. He motivates the subordinates by
threatening them with penalty, punishment,
demotion etc. A leader is all in all in each and every
activity of the organization. In benevolent
autocracy, a leader uses positive motivation. He
encourages the subordinates by giving incentives
like promotion, more remuneration etc. In some
situation, he also takes suggestion and guidance
from subordinates
 Democratic leadership

• This is liberal type of leadership which is also known as

participate leadership. Under this type of leadership, a
leader believes in decentralization of power and invites
subordinates in the decision making process. This
leadership style is suitable and practicable where
subordinates are trained, experienced and skilled. The
upper level of management is responsible for the
preparation of plans and polices whereas subordinates
are responsible for their implementation. Here, upper
level management takes suggestions, guidance and
information from subordinates for preparation of plans
and policies. It emphasizes participate management.
• In democratic leadership, a two way communication
system exists. There the information of instruction and
guidance flows from the top-level to the subordinates
whereas the information of achievement, problems and
suggestions flows from the subordinate level to the upper
level. Here, a leader always uses positive motivation and
encourages subordinates providing rewards and
incentives. To some extent, subordinates are independent
in doing their work. The leader only provides guidance
and suggestions at the time of requirement. The feeling of
team work is developed among all the employees.
 Free rein leadership

• Under this style, leaders avoid power and responsibility

they grant authority and responsibility to groups. The
role of the leader here is to provide advice and direction
as requested by the subordinates. Group members
perform everything themselves. Leader behaves
primarily as a group and plays the role of member only.
The concept of management by exception promotes this
type of style, where subordinates themselves plan,
control, evaluate and decide and the manager interferes
exceptionally. This style is suitable for highly trained and
professional staff. There is primarily horizontal
communication among the peers.
 Quality of good leadership

• Leader is the process of influencing and inspiring

the behavior of others. It is the ability to motivate
others to accomplish pre determined objectives. In
fact, organizational performance totally depends
upon the ability of the managers. There must be
leadership qualities in the manager to produce
tremendous impact on subordinates performance
and behavior. Generally, leadership qualities may
broadly be studied under two heading.
 Personal qualities

• Physical fitness: this quality focuses on the physical outlook of

the leader. A leader must be a physically sound person. He
should be impressive in outlook. Only a healthy person can
proceed to his job with full energy and effort. Generally,
physical fitness is an ordinary and natural requirement of a
leader.
• Self confidence: a leader must have confidence for any kind of
work he is doing. He should have knowledge about the
outcomes of decision and activities. He has to guide and lead
the subordinates along with most enthusiastic lines of action.
Thus, he has to take decisions on his own showing the
subordinates that he has the capacity to do things better.
• Intelligence: it is the mental quality of the leader. A leader
must have the ability to deal with complex and difficult
types of problems and situation in a confident manner. He
should have the ability to study, analyze and take decisions
confidently. He should never be confused when any new or
complex problems arise in the organization. He has to solve
all kinds of problems through logical analysis and study.
• Vision and foresight: this quality of the leader is a must get
to the destination ie to achieve goals. A leader must have
vision and foresight of how to getting the work and how to
achieve organizational objectives. For this, he has to
prepare plans, policies and programs in a systemic manner.
He has to lead the subordinates by providing proper
guidance and instruction so that the goals may be achieved
in the future
• Optimistic outlook: a leader must always be an optimist. He must
have the quality to take initiation with confidence in difficult
situations. He must have the ability to face the worst conditions
with courage and willpower. An optimistic leader can lead the
subordinates in confident manner and can carry out organizational
activities smoothly and efficiently. Thus, an optimistic outlook of
the leader leads the subordinates in attaining common goals.

• Flexible attitude: a leader must be flexible or dynamic. It is well

known that social environment is changeable according time. A
successful leader has to adjust him with the changing
environment. For this, he has to modify himself modify himself
according to the time and situation. In some situations, he has to
modify his decisions and has to accept information and
suggestions of subordinates to take a correct decision.
 Managerial qualities

• Technical knowledge: a manager must have basic technical

knowledge on all the activities done in the organization. It is only
an expert leader who can technically guide the subordinates
towards the most efficient and economic completion of assigned
job. Besides, he must have the ability to convince subordinates
about his knowledge and impart suitable guidance to them.
Therefore, technical knowledge is necessary to take the right
decision in the right time.
• A moderate state of mind: this quality emphasises on maintaining
patience while taking any decision. A leader is a decision maker
and, he must have a moderate state of mind. It is essential to
come at a rational decision which should be free from bias and
emotions. A leader must be patient while taking any decision. He
must have the ability to identify the impact of his decision.
• Organizing ability: a leader must have an organizing ability. He
must have the ability to make appropriate division of works
among subordinates. Besides, he should have the ability to
arrange physical facilities and modern technology on the basis of
requirement. He has to establish well defined productive
relations among all the subordinates. He has to take care to
maintain coordination among the employees. This is essential to
maximize output within minimum cost and efforts.

• Motivation skill" a successful leader must possess motivation

skills. He must have the ability to induce the subordinates to
gain maximum efforts from them. For this, he must have
knowledge about the needs and requirements of subordinates'
and must apply appropriate motivational tools at the right time.
• Communication skill: a leader must also have
communication skills to maintain up to date relation with
subordinates and with outer authorities. He must ensure
the application of the open and two way communications
system within the organization. Since, communication and
motivation are interrelated terms in management.
• Human relation expert: a successful leader is one who is an
expert in human relation. He has to deal with various parties
of the organization like customers, visitors, subordinates,
suppliers, shareholders, etc. Thus, he must develop good
human relation ability through all possible means known to
him. He has to deal in a polite and friendly way to his
subordinates. He should never come into emotion even if
there is any unexpected behaviour form others.
• Wider perspective: a leader must have a wide vision. He must
have the ability to carry out organizational activities in accordance
of plan and system. He has to measure whether group
performance is going in accordance with organizational sittings or
not to manage the organizational performance by keeping in view
the broad outlook of objectives. Thus, over concentration on the
performance of a particular work grip must be avoided.

• Ability to judgement: a successful leader must have the ability to

maintain impartiality and judgement. He has to take various types
of decisions in different situations. Thus, he must have the ability
to take the right decision at the right time. While taking any
decision, he must avoid the feeling of close relation, friendship,
favouritism etc. He has to decide matters only by considering
organizational objectives.
 Factors for accomplishing effective leadership

• The entire manpower of the organization

• Other available resources
• Appropriate organizational structure
• Good working environment
• Good planning
• Good coordination
• Good direction
• Good supervision
• Effective communication system
 Emerging approaches to leadership

New perspectives of leadership have emerged

after trait, behavioral and contingency theories.
Most of them have been accompanied by
global and time factors. The new theories have
strategic perspectives on leadership and have
emerged specially to encounter behavioral
problems caused by globalization, diversity and
technological advances. Some of these theories
are briefly presented below.
 Transformational Leadership

• Transformational leaders can change the

organization and organizational teams by creating,
communicating and modeling a vision for the
organizations or work units and inspiring
employees to struggle for that vision. They are
really change makers and lead to the success of
organizations. With their own visions to encourage
subordinate they can easily change organizations.
They are highly committed towards organizational
goals.
 Charismatic leader

• A few authors have attempted to understand

charismatic leadership as transformational
leadership. However, there are differences in the
concept. Charisma means gift in the Greek
language. A charisma is a form of interpersonal
attraction that inspires support and acceptance
from others. Thus charismatic leadership is
defined as the type of influence based on a
leader's personal charisma. In this sense, a
charismatic leader processes attractive
personality traits and interpersonal skills.
 Contemporary issues in leadership

There are many researches going on different

issues relating to leadership. Research on
these issues could be a milestone for the
future development of their concepts and
practices. There are a few recent issues
concerning leadership.
 Gender issues in leadership :

• Recent studies reveal that the leadership and

management styles of a male manager differ significantly
from his female counterpart. Whereas women follow
participated and interactive approach, men depend less on
such an approach. However, there is still confusion about
these findings. The debate regarding who is the best in the
leadership style is not yet over. Some researchers believe
that women are more prone to the participate styles than
their male counterparts. They are less status oriented and
will have better interpersonal skills than men. Anyway
there are many researches yet to be done in this respect.
 Training for leadership

• Researchers are still working on the issue can

people be trained in new leadership? Some
researches reveal that leadership can be taught.
People can learn communicating, empowering
and visioning skills with the help of a trainer.
What is important is the supportive culture of
the management to provide such opportunities.
There are different methods available to
provide training on enhancing culture change.
 Is leadership always good

• After reading the story and watching television

programs, Adolf Hitler seems to be a leader
with charisma. But his work had immensely
negative impact on the development and
prosperity of the world. Thus it is difficult to
say that leadership or a new leadership is
always good for all. There are many examples
of leaders who have been jailed for misusing
their power.
 Managers Vs Leaders
• People often confuse the terms 'manager'
and 'leader'; they are not the same thing
although it is possible to be both.
• Managers have employees.      Leaders win followers.
• Managers react to change.       Leaders create change.
• Managers have good ideas.      Leaders implement them.
• Managers communicate.           Leaders influence .
• The main difference between leaders and
managers is that leaders have people follow
them while managers have people who work
for them. A successful business owner needs
to be both a strong leader and manager to get
their team on board to follow them towards
their vision of success.
• Leaders have vision and are of spirit, whereas
managers are of the mind.
• Leaders are essential for an organization,
whereas managers are necessary for
organization.
• Leaders look for growth and development,
whereas managers look for rapid results
• Managers direct groups.        Leaders create teams.
• Managers try to be heroes.  Leaders make heroes of
everyone around them.
• Managers take credit.        Leaders take responsibility.
 Managers leaders
• Demands coaches
• Relies on authority relies on goodwill
• issues ultimatums generates enthusiasm
• Says Isays we
• Uses people develops people
• Takes credit gives credit
• Places the blame accepts the blame
• Say go says lets go
• My way is the only way strength in unity