Chapter 5- Leading/directing

LEADERSHIP
• Definition: Leadership is the
process or art of influencing
people so that they will strive
willingly toward the
achievement of group goals.
• A leader is one who leads others and is able to hold
an individual or a group towards the accomplishment
of a common goal.
• French and Raven have proposed the following bases
of power for a person exercise influence over
others :
1. Legitimate power -That the followers know that
the leaders have legal right / formal position to
influence them.
2. Reward power -That the followers know that the
leader has the power to grant promotions, monetary
inducements or other rewards if his orders are
fulfilled with.
3. Coercive power - That the followers know that
if the leader’s orders are not complied with, he
has the power to hire, fire, and discharge the
followers.
4. Expert power - That the followers know that
the leader possesses specialist knowledge in
the field they lack it.
5. Referent power - That the followers feel
attracted towards him because of his sociable
manners, enjoyable personality or they feel that
he is well connected with high-up.
 LEADERSHIP STYLES

The leadership style we will discuss here are:

a) Autocratic style
b) Democratic Style
c) Laissez Faire Style
 a) Autocratic style of leadership
• Manager retains as much power and
decision-making authority as possible.
• The manager does not consult
employees, nor are they allowed to
give any input.
• Employees are expected to obey
orders without receiving any
explanations.
 b) Democratic Style:
• It is the leadership style that promotes the
sharing of responsibility, the exercise of
delegation and continual consultation.
characteristics
• Manager seeks consultation on all major
issues and decisions.
• Manager effectively delegate tasks to
subordinates and give them full control
and responsibility for those tasks.
 c) Laissez-Faire Style:
• It is a delegative leadership style in
which leaders are hands-off (non
interference) and allow group members
to make decisions.
• The manager doesn’t understand his
or her responsibilities and is hoping
the employees can cover for him or
her.
 LEADERSHIP THEORIES

The various leadership theories are

includes:
• Trait Theory
• Behavioral Theory
• Situational Leadership theory
• Transformational Leadership theory
• Transactional leadership theory
 
 Trait Theory:
• People are born with inherited traits.
• Some traits are particularly suited to
leadership.
• People who make good leaders have
the right (or sufficient) combination of
traits.
 
.
 Behavioral Theory:
• Leaders can be made, rather than born.
• Successful leadership is based in definable,
learnable behavior.
 Behavioral theories of leadership do not seek
inborn traits or capabilities. Rather, they look at
what leaders actually do.
 Situational Leadership:
  
• The best action of the leader depends on
a range of situational factors.
• When a decision is needed, an effective
leader does not just drop into a single
preferred style.
• Factors that affect situational decisions
include motivation and capability of
followers
 Transformational Leadership:
 
 • People will follow a person who inspires
them.
• A person with vision and passion can achieve
great things.
• Transformational Leaders, by definition, seek
to transform the entire organization through
injecting enthusiasm on followers or
subordinates .
 Transactional leadership Theory
• Transactional leadership or transactional management is the part of
one style of leadership that focuses on supervision, organization, and 
performance.
• Transactional leadership is a style of leadership in which leaders
 promote compliance by followers through both rewards and
punishments. Through a rewards and punishments system, transactional
leaders are able to keep followers motivated for the short-term.
• Unlike transformational leaders, those using the transactional approach
are not necessarily looking to change the future.
• Transactional leadership "occurs when one person takes the initiative in
making contact with others for the purpose of an exchange of valued
things" (Burns, 1978).
• This type of leadership is effective in crisis and emergency situations,
as well as for projects that need to be carried out in a specific way.
• Transactional leadership is generally attributed to two
factors.
• The leadership of the first conditional reward is viewed as
both an efficient and constructive relationship between the
leader and the followers.
• These followers get bonuses, merits, or recognition with the
organization that they are with when they meet certain goals
depending on what the company is.
• The rewards, from this contingent reward, is solely based on
an agreement between the leader and follower.
• The second factor of transactional leaders is management by
exception. This can be active or passive. Active leaders are
always watching to evaluate performances of employees.
Passive management only assess after the task has been
done and will only let you know about problems after they
 Motivation: Meaning, Purpose of Motivation

 MOTIVATION
Motivation may be defined as those
forces that reason people to perform in
certain ways.
• According to Koontz and O'Donnell,
"Motivation is a class of drives, needs,
wishes and related forces".
 IMPORTANCE OF MOTIVATION

  
• Motivating the workers for accomplishing the goals
of the organization
• improve the progress of the organization thereby
increasing productivity.
• For performing any tasks, two things are necessary.
(a) ability to work and (b) willingness to work.
-Without willingness to work, ability to work is no
use .
- The willingness to work can be created only by
motivation.
• Motivation is the best remedy for resistance to
changes. When changes are introduced in an
organization, generally, there will be
resistance from the workers. But if the
workers of an organization are motivated, they
will accept,.
• Motivation facilitates the maximum utilization
of all factors of production.
• Motivation promotes a sense of belonging
among the workers.
 MOTIVATION THEORIES

Abraham Maslow’s “Need Hierarchy

Theory”:
Maslow ‘s human needs in the form of a hierarchy, ascending
from the lowest to the highest.
• SELF-ACTUALIZATION NEEDS : Highest need level: need to fulfill one’s self;
to grow and use abilities to fullest and most creative extent
• ESTEEM NEEDS : Need for esteem of others: respect, prestige,
recognition, need for self esteem, personal sense of competence, mastery
• SOCIAL NEEDS: Need for love, affection, sense of belongingness in one’s
relationships with other persons
• SAFETY NEEDS: Need for security, protection and stability in the physical
and interpersonal events of day- to-day life
• PHYSIOLOGICAL NEEDS: Most basic of all human needs: need for
biological continuance; food, water , shelter etc.
 Monetary and Non-Monetary Factors of Motivation

• The motivational factors that motivate a person

to work and which can be used to enhance their
performance can be classified into two
categories—
• Monetary factors ( salary , bonus, financial
incentive , promotion & profit sharing )
• Non monetary factors (status ,recognition ,
work life balance ,delegation , working condition
& job security ) .
 Monetary Motivation Techniques

 1. Salary or wages:

 This is one of the most important motivational factors in an organization. Salaries
and wages should be fixed reasonably and paid on time.
2. Bonus:
Bonus is an extra payment over and above salary, and it acts as an incentive to
perform better. It is linked to the profitability and productivity of the organization.
 3. Financial incentives:
The organization provides additional incentives to their employees such as medical
allowance, travelling allowance, house rent allowance, hard duty allowance and
children educational allowance.
4. Promotion (monetary part)
Promotion is attached with increase in pay, and this motivates the employee to
perform better.
5. Profit sharing:
This is an arrangement by which organizations distribute compensation based on
some established formula designed around the company’s profitability.
 Non-monetary Motivation Techniques:

1. Status:
An employee is motivated by better status and designation. Organizations should offer
job titles that convey the importance of the position.
 2. Recognition:
 Employees must be appreciated and reasonably compensated for all their
achievements and contributions.
 3. Work-life balance:
 This balance makes employees ensure the quality of work and life. A balanced
employee is a motivated employee.
 4. Delegation:
 Delegation of authority promotes dedication and commitment among employees.
Employees are satisfied that their employer has faith in them and this motivates them
to perform better.
 5. Working conditions:
 Healthy working conditions such as proper ventilation, proper lighting and proper
sanitation improve the work performance of employees.
6. Job security:
 This promotes employee involvement and better performance. An employee should
not be kept on a temporary basis for a long period.
 McGregor’s Theory X and Theory Y:

McGregor states that people inside the organization can

be managed in two ways. The first is basically
negative, which falls under the category X and the
other is basically positive, which falls under the
category Y.
Under the assumptions of theory X :
• Employees inherently do not like work and whenever
possible, will attempt to avoid it.
• Because employees dislike work, they have to be
forced, coerced or threatened with punishment to
achieve goals.
• Employees avoid(keep away from) responsibilities
 The assumptions of theory Y :

• Physical and mental effort at work is as natural

as rest or play.
• People do exercise self-control and self-
direction and if they are committed to those
goals.
• Average human beings are willing to take
responsibility and exercise imagination, and
creativity in solving the problems of the
organization.
• On analysis of the assumptions it can be detected that
theory X assumes that lower-order needs dominate
individuals and theory Y assumes that higher-order
needs dominate individuals.
• An organization that is run on Theory X lines tends to
be authoritarian in nature. In contrast Theory Y
organizations can be described as “participative”,
where the aims of the organization and of the
individuals in it are integrated; individuals can achieve
their own goals best by directing their efforts towards
the success of the organization.
 
 Change Management – process, types and challenge

Change management is an approach to shifting

or transforming individuals, teams &
organizations from a current situation to a
desired future situation.
Change Management Process
Change management process contain the
following three phases:
• Phase 1 - Preparing for change
• Phase 2 - Managing change
• Phase 3 - Reinforcing change
1) Preparing for change (Assessment)
• Identifying the problem:
• Data collection:
• Data analysis
• Strategic determination: Identifying possible
solutions, barriers, strategies
• Decide if the change is necessary.
• Make others aware of the need for the change.
2) Managing change (Planning and
Implementation)
 State goal and specific measurable
objectives and also the time allotted.
 Establishing the who, how, what, and when
of change.
 Allocating resources, budget and evaluation
methods.
 Evaluate the change then modify if
necessary.
3) Reinforcing change (Evaluation)
 Determining effectiveness of change.
 Achieved objectives and benefits -
qualitative as well as financial and the
documented evidences of being
achieved.
 Stabilize the change: - taking measures to
reinforce and maintain the change.
 Types of Change

There are two types of change in an organization: -

• Planned change and - “Emergent” change
 Planned change - refers to initiatives that are driven “top-down”
in an organization.
 Emergent” change - refers to a situation in which change can
originate from any level in the organization.
Reasons for Change
• External pressures(Change in technology and equipment ,
Market situation ,social and political changes
• Internal pressures (pressures for change from within the
organization) like change in managerial personnel, lack of
uniformity in the policies and styles ,systems and procedure ,as
well as employee attitude and improvement in working
condition
 Challenges in Change Management
• Planning
Without step-by-step planning, change in
an organization is likely to cause more
problems than benefits.
• Lack of agreement on implementation
• Employee Resistance to change
 
 
 
 
 Causes for Resistance to Change

• Lack of trust /lack of confidence on change

• Perception that change is not necessary
• Perception that change is not possible
• Relatively high cost
• Fear of personal failure
• Loss of status or power
• Fear of the unknown
• managerial disagreements  
Thank you!!!