9(b) PRINCIPLES OF

MANAGEMENT.
LEADERSHIP AND DIFFERENT
LEADERSHIP STYLES, CORPORATE
CULTURE, POLITICS AND USE OF
POWER, PERSONAL VALUES, BUSINESS
ETHICS & CSR.

1
 Behavioral Implementation of Strategies.
 The Behavioral Implementation of Strategies deals with Five Major
Issues: Leadership, Corporate Culture, Corporate Politics and Use of
Power, Personal Values and Business Ethics, and Corporate Social
Responsibility.
 Leadership: Leadership Plays an important Role in the Strategic
Success of an Organization. A Leader must:
 Develop New Qualities to perform effectively.
 Be a Visionary, Willing to take Risks, and be highly Adaptable to
Change.
 Exemplify the Values, Goals, and Culture of the Organization, and be
aware of the Environmental Changes affecting the Organization.
 Pay Attention to Strategic Thinking and Intellectual Activities.
 Adopt a collective view of Leadership in which the Leaders Influence is
dispersed across all levels of the Organization.
 Lead by Example.
 Lead by Empowering Employees and place increasing Emphasis on
Statesmanship.
 Create Leadership at Lower Levels and facilitate the transformation of
2
followers into Leaders and
 Delegate Authority and place emphasis on Innovation.
 Leaders Vs Managers.
 Leadership is of the spirit compounded of Personality and Vision.
Management is of the mind, more a matter of accurate calculation of
statistics, of methods, time tables, and routine.
 Practice of Leadership is an Art. Practice of Management is a Science.
 Leaders do the Right Things. Managers do the Things Right.
 Leaders work hard to develop a strong sense of Direction and are guided
by a Clear Vision for the Future and not by a need to simply achieve
today’s goals. Managers are sometimes seen as being there to achieve the
objectives set by others( Owners, Directors etc).
 Leaders are interested in the “Why” & “What”. Managers interested in
the “How to get things done today”.
 Leaders lead by example, they inspire confidence and they generate in
others a genuine enthusiasm and commitment for the work in hand.
Managers often Motivate by balancing Rewards and Threats( Carrot &
Stick Method).
 Leaders are responsible for new Objectives and Aims against a
background of thinking through the interplay of the fundamental purpose
of the Firm and its Changing and Challenging Environment. Managers are
good Administrators of Money &Time. They respect& Use Systems for the
balance between order & freedom.
3
 LEADERS Vs MANAGERS (Cont’d).
 A Person Emerges as Leader. A Manager on the other hand is always put into
his position by Appointment.
 A Leader has some Personal Power that enables him to Lead. He may or may
not have Authority to Command. A Manager has the Authority to Command,
but may not have Personal Power.
 A Leader has Followers, but a Manager has Subordinates.
 A Leader seeks the Objectives which are the same as Objectives of his
Subordinates, but Manager seeks the Objectives which may be different from
the Objectives of his Subordinates.
 A Leader generally looks at the Horizon and not just the Bottom Line. He is
Innovative and believes in doing the Right Things. A Manager on the other
hand, is generally Bureaucratic and believes in doing things Right according to
the rules, to cope with complexity.
 Leadership involves an unequal distribution of Authority among Leaders and
Group Members. Leaders can Direct some of the activities of Group Members;
i.e. Group Members are compelled or are willing to Obey most of the Leader’s
Directions. The Group Members cannot similarly Direct the Leader’s activities,
though they will obviously affect those activities in a number of ways.
 Leadership implies that Leaders can influence their followers, apart from
giving them Legitimate Directions.
4
 LEADERSHIP STYLES.
 There are Four Basic Leadership Styles and the same are:
 1) Directing Type-S1
 2) Coaching Type-S2
 3) Supporting Type-S3
 4) Delegating Type-S4
 Directing Type:S1: Here the Leader gives specific Instructions to
the subordinates and closely Supervises/Monitors task
accomplishments. The Leader tells the subordinates what, when,
where and how to do the things and then closely Supervises them
on the problem/task.
 Coaching Type:S2: Here the Leader continues to direct and closely
Supervises/Monitors task accomplishment, but also explains his
decisions, invites suggestions and supports the progress made by
the subordinates.
 Supporting Type:S3: Here the Leader Facilitates and Supports the
subordinates towards task accomplishment and shares
responsibility for decision making with them.
 Delegating Type:S4: Here the Leader turns over responsibility for
Day to Day decision making and problem solving to the
subordinates with very little supervision and support.
5
 Leadership Styles (Cont’d).
 The four Leadership Styles shown in the last slide are made up from
combinations of two Basic Leadership Behaviors that a Leader can use
when trying to influence someone else : Directive Behavior and
Supportive Behavior.
 Directive Behavior means Structure, Control, and Supervise.
 Supportive Behavior means Praise, Listen and Facilitate.
 It is a well established fact that there is No One Best Leadership Style. A
successful Leader uses all 4 Types of Leadership Styles depending on the
Development Level of the people he is dealing with and on the Situation to
get the Best results.
 The Leader uses “Different Strokes for Different Folks” sometimes and he
also uses “Different Strokes for Same Folks” sometimes.
 It is necessary to learn 3 Skills:
 1) To Learn to use a variety of Leadership Styles Flexibly (Flexibility).
 2) To Learn to Diagnose the Needs of the People you Supervise
(Diagnosis).
 3) To come to some agreement with them, to contract with them for the
Leadership Styles they need from you (Contracting).
 Such a Leadership Style is known as “Situational Leadership”.
6
 People at Different Levels of Development need to be treated Differently to
get the Best Results.
 Leadership Styles (Cont’d).& Development
Levels.
High High Some Low
Competence. Competence.Competence Competence.
High Variable . High
Commitment. Commitment.Low Commitment.
Commitment
.
Development Level. Appropriate
Leadership
D4 D3 D2 D1
Style.

D1-Low Competence & High Commitment

S1

D2-Some Competence &Low Commitment.

S2

D3-High Competence &Variable Commitment.

S3

D4-High Competence &High Commitment.

7
S4
 Leadership Styles (Cont’d).
 While the chart given in the previous slide is a broad
guideline for using Different Styles of Leadership Styles
for people at Different Levels of Development, it has been
found that people tend to be at Different Levels of
Development depending on the Specific Tasks or Goals
they are assigned.
 In view of this, a Situational Leader, not only should use
“Different Strokes for Different Folks”, but also in many
cases has to use “Different Strokes for Same Folks”,
depending on the task assigned.
 To give an example, an Engineer is Competent and
Confident of handling Technical Aspects of his Job, but
has not demonstrated the same Level of Development on
Commercial matters.
 Therefore the Engineer’s Manager may use S4-Delegating Style for
Technical Aspects and may use S1 or S2 Style for the Commercial
8
Aspects while dealing with the above Engineer, for optimum results.
 Corporate Culture.
 The Phenomenon which often distinguishes Good Organizations from
Bad Ones could be summed up as “Corporate Culture”. The well
managed Organizations apparently have distinctive cultures that are in
some way responsible for their ability to successfully implement
Strategies.
 “It has been clearly demonstrated that every Organization has a
Culture (which often includes sub-cultures) that exerts powerful
influence on the Behavior of Managers”.
 Composition of Corporate Culture: Corporate Culture is the set of
important assumptions- often unstated-that members of an
Organization share in common.
 There are two Major Assumptions in common: Beliefs & Values.
Beliefs are assumptions about reality and are derived and reinforced
by experience. Values are assumptions about Ideals that are desirable
and worth striving for. When Beliefs and Values are shared in an
Organization, they create Corporate Culture. The manifestation of
Corporate Culture in an Organization is evident in:
 Shared Things (e.g. the way people dress)
 Shared Sayings (e.g. let us get down to work)
 Shared Actions ( e.g. a service oriented approach)
9  Shared Feelings (e.g. hard work is not rewarded here)
 Corporate Politics and Use of Power.
 All Corporate Cultures include a Political Component and therefore , all
Organizations are Political in nature.
 Power is defined as “the ability to influence others” and Corporate Politics
is “the carrying out of activities not prescribed by Policies for the purpose
of influencing the distribution of advantages within the Organization.
 Politics is related to the use of power but it is not similar to it. We tend to
view Politics and Power negatively as means of domination, manipulation,
and subjugation. But these can be viewed in a positive way also. In this
sense, Politics and Power may be thought of as a means for the achievement
of Organizational Objectives.
 Power within an Organization is derived from Five types of Sources:
1) Reward Power arises from the ability of Managers to Reward Positive
Outcomes.
2) Coercive Power arises from the ability of Managers to Penalize negative
Outcomes.
3) Legitimate Power arises from the ability of Managers to use Position to
influence Behavior.
4) Referent Power arises from the ability of Managers to create a liking among
sub-ordinates due to charisma or personality.
5) Expert Power arises from the Manager’s Competence, Knowledge and
10 Expertise that is acknowledged by others.
 Personal Values & Business Ethics and Corporate
Social Responsibility.
 Personal Values and Business Ethics: Personal Values and a sense of
Business Ethics can help a Strategist to distinguish between a Moral or Amoral
use of Politics and Power as a means to achieve Organizational Goals.
 Strategists will have to realize that if the Organization has to succeed in
Business on a Long Term Basis, they will have to follow Ethical Ways of doing
Business and Consider Means as Important as the Ends. There is enough
Evidence to prove that Unethical Behavior is going to tarnish the Image of the
Company, bring down the Business and Profitability of the Organization and
also bring down the Share Value of the company in the Market.
 Corporate Social Responsibility: Since the Organizations are doing
Business and Earning Profits due to the Cooperation, Support and Help from
the Society, it becomes its Moral Responsibility to give something back to the
Society.
 By carrying out Social Welfare Activities, the Organizations Public Image
receives a Big Boost and more and more Customers will become Loyal to the
Company, thereby increasing the Volume of Business of the Company as well
as its Profit.

11