CHAPTER- 

LEADING
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Learning Objectives:
 To understand the meaning & nature of direction.
 Present leadership styles and theories.
 Present Motivation theories.
 Discuss meaning & importance of communication.
 Understand the types & forms of communication.

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Directing is simply defined as;
 The process of influencing people so that they will
contribute to the organization & group goals or

 Actuating organizational members to work efficiently

& effectively for the attainment of organizational goals
/objectives.

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 It is also a function of management which is related
with instructing, guiding and inspiring human factor
in the organization to achieve organizational mission
and objectives.

It requires the integration of organizational &

individual goals.

It is the heart of managerial functions because 4it

involves with initiating actions.
 ELEMENTS OF DIRECTING

 Managers to direct individuals require three basic

elements. They are ;

 Leadership
 Motivation &
 Communication

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 LEADERSHIP
What is leadership?
“Leadership is a process whereby an individual influences
a group of individuals to achieve a common goal.”
 According to Hersey & Blanchard, leadership is a
function of the leader, followers and situation which can
be depicted as: L=F (L, F, S)
 Where L denotes leadership F- the function of, L- leader,
F-followers and S -the situation
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 Leadership at-Individual level involves mentoring, coaching,
inspiring and motivating.
 Group level, leaders build team, create cohesion and resolve
conflicts; and
 Organizational level, leaders build culture, and create
change.

LEADERSHIP STYLE
o It is the typical pattern of behavior a leader uses to
influence employees to achieve organizational goals.

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CONT`D

 Leadership styles are also broadly classified based on some

points of view: Motivation, Authority and supervision.
 On the basis of motivation leadership style can be
positive or negative style.
 In positive style a leader motivates his followers to work
hard by offering them rewards, for example, higher bonus.
 In negative styles, a leader forces his followers to work
hard and punishes them for lower productivity.
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 On the basis of Authority, leadership styles are divided as
follows;
1. AUTOCRATIC (AUTHORITARIAN) LEADERSHIP
• “Look, I’m the boss around here. I’ll make the decisions and I’ll
tell you what I want you to do.
• You’d better do your job because I’ll be watching your every
move.”
• Autocratic leadership Style is also known as ‘’I’’ approach.
• A Leader having this style does not consult staff, nor allowed to
give any input.
• Communication tends to be primarily in one direction from
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manager to follower.
 An advantage of autocratic leadership is the speed of decision-
making, as the leader does not have to obtain group members
approval.
 An autocratic leader is one who dominates and drives his
subordinates through coercion, command and the instilling of
fear in his followers.
 They never like to delegate their power for they fear that they may
lose their authority.

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 MERITS

 Such a leadership style is suitable when subordinates

are basically lazy and avoiding duties.
 It helps to make quick decisions as decision-making is
the prerogative of the leader alone.
 As subordinates are under constant threat of
disciplinary action, they are always cautious.
 Inefficient and insincere workers can easily be
identified and removed from service.
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 DEMERITS
 Subordinates normally show resistance to this type of
leadership style as it curtails their freedom to act.
 It kills initiative to work and results in frustration among
workers.
 It often gives scope for conflicts between the leader and his
followers which is bad for the organization.
 At some stage, the subordinates may stop obeying the
orders of the leader and start showing their protest. If such
a stage is reached, the leader will become helpless.
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2. BUREAUCRATIC LEADERSHIP STYLE
 It is also known as manages “by the book”. Everything
done according to procedure or policy if not covered by
the book, referred to the next level above.
 Enforces the rules
Most effective when:
 Staff performing routine tasks over and over

 Staff needs to understand certain standards or

procedures.
 Safety or security training conducted
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Ineffective when:
 Staff loses their interest in their jobs and in their co-workers
 Staff do only what is expected of them and no more

3. DEMOCRATIC LEADERSHIP STYLE

 is also known as participative leadership.
 Subordinates have considerable freedom of action.

 The leader shows greater concern for his people’s

interest, is friendly and helpful to them.

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 receives information and ideas from his subordinates to make
decisions
 boosts the morale of employees.
Merits:
 As the followers are able to participate in the decision-making
process, they feel motivated.
 The decision finally made is mutually acceptable.
 There is no resistance from the subordinates.
 It improves the job attitudes of the subordinate staff.
 the labour-management relationship is bound to improve.

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Demerits:
 There may be delay in arriving at a decision, as
consensus among the individuals is necessary.
 Democratic leadership is suitable only if the
subordinates are all capable of making worthwhile
suggestions. If they are less efficient and prefer to work
as per the leader’s directions, participative leadership
will not serve the purpose.
 It may, sometimes, be very difficult to evolve a
solution that is acceptable to everyone. 16
4. LAISSEZ-FAIRE/FREE-REIN LEADERSHIP STYLE
 the leaders exercise absolutely no control.
 The leader only provides information, materials and facilities
to his subordinates.
 This type of leadership is employee centered and the
subordinates are free to establish their own goals and chart
out the course of action
 This type of leadership can be disaster if the leader does not
know well the competence and integrity of his people and
their ability to handle this kind of freedom.
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Merits
 Obviously, as the subordinates have full freedom to act, their level of motivation is
bound to be very high.
 Those subordinates, who are highly efficient, can make use of the freedom given to
them to excel.
 The superior-subordinate relationship is bound to be very good.
Demerits:
 It will produce good results only if the subordinates are all highly efficient and
capable of doing their work independently.

 As the leader does not involve himself at all in the activities of his subordinates,
control may become difficult.

 The leader does not exercise his formal authority. As a result, the work place may
lose its official character.
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 The subordinates are deprived of the expert advice and moral support of their leader.
5. SITUATIONAL LEADERSHIP STYLE
 Effectiveness of leadership depends on the situation. The styles a
manager chooses may depend on the following situations.
 Forces in the manager i.e. his value system & confidence in
subordination
 Forces in subordinate e.g. subordinates expectation
 Forcer in the situation e.g. types of the organization, the nature
of the problem, the pressure of time, etc.

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Varying Leadership Style
 3 factors that influence which leadership style to use.
1. The manager’s personal background: What personality,
knowledge, values, ethics, and experiences does the manager
have. What does he or she think will work?
2. Staff being supervised: Staff individuals with different
personalities and backgrounds; the leadership style used will vary
depending upon the individual staff and what he or she will
respond best to.
3. The organization: The traditions, values, philosophy, and
concerns of the organization influence how a manager acts
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 LEADERSHIP THEORIES
Four commonly used theories of leadership
I. Great Man Theory,
II. Trait Theory,
III. Behavioral Theories.
IV. Contingency Theories,
I. GREAT MAN THEORY (Thomas Carlyle, 1847)
 Assumes that the traits of leadership are intrinsic
 It means that great leaders are born they are not made.
 is based on the belief that leaders are exceptional people, born
with innate qualities, destined to lead.
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 II. TRAIT THEORY :LATE 1800S TO MID-1940S

 is similar to the Great Man theory.

 tries to identify the traits that differentiated leaders from non-
leaders.
 It focuses on "what" an effective leader is, not on 'how' to
effectively lead.
 assumes that certain physical, social, and personal characteristics
are inherent in leaders.
 Physical traits include being young to middle-aged, energetic, tall,
and handsome.
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 CONTD…
 Social background traits include being educated at the "right"
schools and being socially prominent or upwardly mobile.
 Social characteristics include being charismatic, charming, tactful,
popular, cooperative, and diplomatic.
 Personality traits include being self-confident, adaptable,
assertive, and emotionally stable.
 Task-related characteristics include being driven to excel,
accepting of responsibility, having initiative, and being results-
oriented.

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Stogdill (1974) identified the following traits & skills

Traits Skills
 Adaptable to situations  Clever (intelligent)
 Alert to social environment  Conceptually skilled
 Ambitious and achievement  Creative
orientated  Diplomatic and tactful
 Assertive  Fluent in speaking
 Cooperative  Knowledgeable about group task
 Decisive  Organized (administrative ability)
 Dependable  Persuasive
 Dominant (desire to influence  Socially skilled
others)
 Energetic (high activity level)
 Persistent
 Self-confident

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Limitations / Short coming of Trait theory

 All the leaders may not possess all the traits & many of non
leaders may possess most or all of them.
 The trait approach gives no guidance as to how much of any trait
a person should have.
 It doesn’t indicate the best style of leadership.
 It ignores situational factors.
III. BEHAVIORAL LEADERSHIP THEORY: Mid 1940s
to Early1970s
 Behavior theory focuses on what an effective leader
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“does.”
 Behavioral theories of leadership do not seek inborn traits or
capabilities. Rather, they look at what leaders actually do.
 leadership capability can be learned, rather than being inherent.
 It is relatively easy to develop, as you simply assess both
leadership success and the actions of leaders.
 Focusing on behaviors provides several advantages over a trait
approach:
 Behaviors can be observed more objectively than traits.
 Behaviors can be measured more precisely and more accurately
than traits
 As opposed to traits, which are either innate or develop early in
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life, behaviors can be taught.
IV. THE CONTINGENCY (SITUATIONAL) THEORY: EARLY 1960S TO PRESENT

 the practice of leadership is too complex to represent by unique

traits or behaviors.
 that leaders choose the best course of action based upon
situational variable.
 Different styles of leadership may be more appropriate for certain
types of decision-making i.e. leaders are products of a given
situation; what is effective in one situation may not be effective in
other situation.

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 Generally, they argue that effective leadership is really a function
of the interaction of several variables, including
 superior - subordinate relationships;
 the power distribution between superior and subordinate;
 the degree to which the job is structured;
 Expectations and behavior of superiors;
 Subordinate characteristics, anticipation and behavior;
 Organizational culture and policies;

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 Qualities of leadership
 A leader should have some leadership qualities in order to
provide effective leadership. According to Henry Fayol, a
leadership should have the following qualities.
 Health and physical fitness
 Mental vigor and energy
 courage to accept responsibility
 steady, persistent and thoughtful determination
 should have general educational and
 management ability of embracing foresight and the
art of handling men
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In general, the important qualities of leadership are:
 Physical appearance and strength: A leader has to put hard
work physically. He should have a capacity to work for long
hours than others. This proves the diligence of the leader to his
followers easily.
 Mental strength: A leader has to be strong mentally. He is
expected to withstand strain in finishing the work properly.
 Emotional stability: A leader should not be moved by emotion
or sentiment, but he should analyze the problem rationally and
take decisions without bias.
 Sense of judgment: A leader should know human psychology.
He should understand the behavior, needs, thoughts, motives,
etc... of his followers. This helps him to take strategic decisions
and get recognized by his followers.
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 Goodwill: A leader should understand the feeling of others and take decisions
on the basis of his followers, and then he will win the goodwill of his
followers.
 Motivation: A leader should know the motivation techniques and how to use
them.
 Communication skill: A leader should communicate information to the
workers, and also be effective speaker & writer. Whatever the information
needed to the workers, it should pass through the leader.
 Guiding ability: A leader should act as a teacher for new workers and help his
followers to learn their work.
 Sociability: An able leader can easily mingle (mix) with the workers. The
workers should be encouraged to discuss their problems and difficulties with
their bosses. The leader should meet workers frequently.
 Technical knowledge: A leader should posses a thorough knowledge of
theory and practice of his job; and he also knows the current development in
his job along with technical knowledge.
 Be honest, sincere and fair: A leader should also be honest, sincere and fair.
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Others mostly like sincere, fair and honest people and their leadership is
accepted by one or all.
 MOTIVATION
 Motivation is defined as “inner burning passion caused
by need, wants and desire which propels an individual
to exert his physical and mental energy to achieve
desired objectives”.
 Efficiency of a person depends upon performance.
Performance can be expressed as;
 Performance = Ability × Motivation

 Scot defined motivation as “a process of stimulating

people to action or accomplish desired goals”.
 Something that moves the person to action and
continues him in the course of action already initiated–
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Robert Dubin.
 Motivation is the process of attempting to influence others to do
your will through the possibility of gain or reward. – Edwin B.
Flippo.
 The Encyclopedia of Management: Motivation refers to
degree of readiness or an organism to pursue some designated
goals and implies the determination of the nature and locus of
the forces, including the degree of readiness.
 Memoria: “A willingness to expand energy to achieve a goal or
reward. It is a force that activates dormant energies and sets in
motion the action of the people.
 It is the function that kindles a burning passion for action
among the human beings of an organization”.
 The author defines “motivation as inner burning passion caused
by needs; wants and desires that propels an individual to exert
physical and mental energy to achieve desired objective”. 33
 TYPES OF MOTIVATION
 Motivation can be classified on several bases. On the basis of
approach, motivation can be classified as positive and
negative.
1. Positive Motivation
 Positive motivation implies creation of an environment in which
people can satisfy their needs and aspirations.
 Under it rewards and incentives are offered to inspire employees.
 All necessary facilities are provided to workers. They are offered
prizes and awards for best performance.
 Positive motivation removes the psychological barrier and
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develops a sense of affiliation.

2. Negative Motivation
 Negative motivation involves creating a sense of fear or
unhelpful environment.
 Workers who do not perform well are penalized. There is
a cut in their facilities and remuneration.
 Demotion, layoffs are other punitive measures which the
workers have to suffer in case their performance does not
come up to the desired level.
 Negative motivation is based on pessimistic view which
holds that only fear of punishment will force employees
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to improve their performance.

 On the basis of the type of incentives used, motivation
may be financial or non-financial.
1. Financial Motivation
 Financial motivation implies use of monetary benefits to
inspire employees.
 Financial incentives include wages and salaries, bonus, fringe
benefits, retirement benefits, etc.,
 Money helps to satisfy physiological and security needs of
workers. Money is also useful in satisfying social needs to some
extent because money is often recognize as a symbol of power,
prestige and status. 36
2. Non-financial Motivation
 Non-financial motivators are not associated with monetary
rewards.
 These include recognition of work done, greater involvement in
decision-making, responsibility, challenging job, etc. Praise,
competition, knowledge of results, suggestion system, and
opportunity for growth are other important non-financial
motivators.
 On the basis of nature of reward used, motivation may be
extrinsic or intrinsic.
1. Extrinsic Motivation
 These factors include pay allowances, bonus, and fringe benefits.

 Extrinsic reward may be direct which are linked with performance

and indirect compensation like free housing, conveyance, medical
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facilities, etc., generally direct compensation is more effective
motivator.
2. Intrinsic Motivation
 Intrinsic motivation occurs on the job and provides
satisfaction while the job is being performed. Intrinsic or
internal motivators include status, authority, participation,
challenging task etc., variety of work, freedom for
discretion, greater responsibility opportunity for
advancement are also intrinsic rewards.

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 THEORIES OF MOTIVATION

 Many experts have developed different theories on the concept of

motivation. Popular ones are given below:

1. Maslow’s Theory of Need Hierarchy

2. Motivation & Hygiene -Two Factor Theory
3. Theory X and Theory Y
4. ERG Theory
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 1. MASLOW’S NEED HIERARCHY THEORY

1. Physiological Needs - As per Maslow physiological need is

strongest in every human being and hence it has highest strength
as compared to the other needs. Individual behaves in a particular
manner to satisfy basic bodily needs like hunger; thirst, shelter
and clothing. These needs keep dominating unless they are
reasonably satisfied. Human being is therefore motivated to work
in that direction.
2. Safety Needs or Security Needs - Once the physiological need of
an individual is satisfied, the safety need /security need arises and
is dominant at that point of time.
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3. Social Needs - Once the safety need is satisfied, third need i.e.
social need arises. People want to belong to some social group
where their emotional need of love, affection, warmth and
friendship are satisfied. Being member of sports club, social
organizations or being the company of friends and relatives, needs
can satisfy social. In the work setting individuals want to be
member of work group and contribute towards it so that the social
need of the individual is fulfilled.
4. Esteem Need or Ego Need - Fourth need in the hierarchy of needs
as suggested by Maslow is Esteem need or Ego need. Individual
wants self-recognition, appreciation for the work done. It is related
to self-respect, self-confidence, praise, power and control. It these
needs are satisfied it gives an individual a sense self-worth and ego
satisfaction.

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5. Self-actualization Need - Self-actualization is the last need in the
need hierarchy.
 Once esteem need is satisfied, there appears the self-actualization
need of human being.
 It is related to an intense carving for something supreme one
wants to achieve in life.
 People set high goals, achieve them and set a higher goals again
and to achieve the same by utilizing fullest potential. It is related
to development of intrinsic capabilities.
 Mahatma Gandhi wanted to achieve freedom for India by unique
weapons of peace and non-violence.
 He strived hard, faced various challenges but ultimately achieved
his goal with his innovative freedom.
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 2. HERZBERG’S MOTIVATION— HYGIENE
THEORY (Two factor theory)
 Fredrick Herzberg and his associates developed Motivation Theory based
on two main factors in late 1950’s. This theory is also known as Two Factor
Theory.
 The purpose of the study was to identify various factors for goal
achievement and also the factors that could be included so that motivation
levels do not fall.
 “There are two types of needs, independent of each other”.

(a) Motivational Factors: There is a set of job conditions, which operates

primarily to build strong motivation and job satisfaction. These factors are
called motivational factors.
 They are intrinsic in nature and help increase one’s output. These factors
have positive effect on morale, productivity, and job satisfaction and overall
efficiency of the organization.
 These factors are as : Achievement, Advancement, Possibility of Growth, 43

Recognition, and Work Itself

(b) Maintenance Factors: There are some job conditions which operate
primarily to dissatisfy employees when these conditions are absent.
 These factors are also called hygiene factors. When these factors are
present they do not motivate in a strong way, when absent they dissatisfy,
that is why these factors are called dissatisfiers. These factors are.
• Company Policy and administration.
• Technical supervision.
• Interpersonal relationship with superiors.
• Interpersonal relationship with peers.
• Interpersonal relationship with subordinates.
• Salary.
• Job security.
• Personal Life.
• Working condition.
• Status. 44
3. THEORY X AND THEORY Y
 Douglas McGregor introduced Theory X and Theory Y which are
diagonally opposite to each other.
1. Theory X
 It assumed that people would be passive therefore management must
persuade, reward and punish the worker to achieve the desired behavior of
workers.
 Human nature –stated that Human being have indolent nature, he works
minimum. McGregor summaries workers as lacks ambition, dislike
responsibility, prefers to be led.
2. Theory Y
 Expenditure of physical and mental efforts on the part of employees is as
natural as play or rest. The average human being does not inherently dislike
work.
 Workers seek direction and exercises self control. He dislikes punishment.

 Commitment to organizational objective is associated with rewards like pay

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promotion etc, ego satisfaction and satisfaction of self-actualization needs.
 4. ERG THEORY OF MOTIVATION
 It identifies three basic needs of human being against five needs of
Maslow.
 These are as under:

(a) E-Existence need - There are related to provision of basic material

requirement of human being and are related to Maslow’s
Physiological and safety needs.
(b) R-Relatedness - This need is related to desire of an individual to
maintain sound interpersonal relationship. It is related to Maslow’s,
Social needs and external component of esteem needs i.e., status,
recognition and attention.
(c) G-Growth - Growth is an intrinsic desire for personal
development. It is related to intrinsic component of esteem need like
advancement, self respect, autonomy, achievement and self-
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actualization need.
 3. COMMUNICATION
 Communication is the exchange of facts, ideas,
opinions or emotions by two or more people.
 It is the transfer of information from the sender to the
receiver with the information being understood by the
receiver.
 The communication process

 To be effective communicator, a manager should

understand the basic framework of communication
process.
 The basic elements of communication are source;
message; medium; receiver; and feedback.
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 Source (Communicator) - is the source that sends the message and
it can be managers, non managers, department, & outside public
 Message- is what a manager or any communicator is
communicating and it may take the form of verbal or non verbal. It
must be clear & precise.
 Medium- is the carrier of the message sent by communicator. It
can be face to face, telephone, group meeting, memorandums, etc.
 Receiver- is the second party to whom the source sends a message.

 Feed back- is the receiver’s response to the source. It reduces the

potential or probability of distortion between the intended & the
received message in the communication process.

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 Encoding and decoding- are translating information into a
message.
• To encode a message, the sender first decides what to transmit
based on the receiver's knowledge.
• Decoding refers to the process by which the receiver translates the
message into the terms that are meaningful to him.
 Communication Methods

 Organizations used different methods of communications

depending on the nature & purpose of the message needed to be
communicated; the characteristics of the receiver; the nature of the
channel, etc
 Therefore, the most common communication methods are

 Verbal communication

 Non-verbal communication
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 IMPORTANCE OF COMMUNICATION
 Communication is the means by which people are linked together in an
organization to achieve a common purpose. The importance of communication
are;
• An aid to managerial performance- With the help of communication, a
manager can take appropriate decision; may solve problems without difficulty;
can get things done by subordinates; can impart the objectives of the
organization to the subordinates.
• Achieving coordination- Co-ordination among employees working on the
basis of division of work obtained through communication.
• Helps in smooth working- Communication helps workers to know the real
situation & perform their duties without any delay, which leads to the smooth
functioning of an organization
• Increases managerial efficiency- Communication helps the manager to
discharge his duties systematically & facilitates him to increase his efficiency.
• Helps in decision making- Good communication system provides all the
necessary information which enables the manager to take quality decisions 50 in
the proper time.
 BARRIERS TO EFFECTIVE COMMUNICATION
 Barriers are obstacles to the free flow of communication.
 Barriers can be classified into different types according to their nature. They are
generally grouped as:
 Physical barriers

 relate to defects in the system such as due to source, distance, time, physical
noise, source credibility, wrong choice of medium
 Semantics barriers

 Defects related with the language/ words’ meanings such as bad expressions,
inaccurate translations, words having different connotations,…
 Human barriers,

 Barriers are usually of human rather than technological origin. Human barriers
are often less visible but generally more consequential.
 Such as socio -cultural barriers, psychological barriers, organizational barriers.
 The principles of communication

 The principles of communication are: commonly called the “7Cs”, i.e. clarity; 51
completeness; correctness; concreteness; conciseness; courtesy and consideration
Thank you for
Attention!

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