UNIT- IV

LEADING
LEADERSHIP

George R. Terry “Leadership is the activity of influencing people to strive willingly for group
objective”

Koontz and O’Donnell, “Leadership is the ability of a manager to induce subordinate to work
with zeal and confidence”

Leadership provides direction for a company and its workers. Employees need to know the
direction in which the company is headed and who to follow to reach the destination. Leadership
involves showing workers how to effectively perform their responsibilities and regularly supervising
the completion of their tasks.

Leadership is also about setting a positive example for staff to follow, by being excited about the
work, being motivated to learn new things, and helping out as needed in both individual and team
activities.
Nature of leadership

• Important function of management

• Performed by managers at all levels

• Process of influencing others

• Dynamic

• Formal or informal

• Acceptance of followers

• Leadership is situational

• Goal oriented
Functions of a Leader
Setting the vision and mission

Determination of Goals

Explanation of Goals and Objectives

Preparation Polices and Strategies

Assigning tasks

Providing Direction

Motivation

Building team spirit

Coaching

Initiating change
Leadership qualities or qualities of a leader
Intelligence

High energy levels

Ability to inspire followers

Self confidence

Vision of the future

Emotional connect with followers

Effective communication

Good interpersonal skills

Positive spirit

Patience
LEADERSHIP CONCEPT

Leadership concepts refer to factors that leaders consider when applying a

leadership style and overseeing a team of individuals.

These principles focus on ideas and perceptions about the traits leaders should
have and how they should perform in a leadership role.

Additionally, leadership concepts help professionals understand what kind of

skills and character traits to develop in order to advance in leadership roles.
Leadership styles
Autocratic leadership
• Strict autocrat
• Benevolent autocrat
• Manipulated autocrat
Democratic leadership
Laissez-faire leadership or free rein or hands off
Bureaucratic leadership
Charismatic leadership
Transactional leadership
Transformational leadership
Paternalistic leadership
Autocratic Leadership
Autocratic leadership is the inverse of democratic leadership. In this leadership style, the leader
makes decisions without taking input from anyone who reports to them. Employees are neither
considered nor consulted prior to a change in direction, and are expected to adhere to the decision at
a time and pace stipulated by the leader. An example of this could be when a manager changes the
hours of work shifts for multiple employees without consulting anyone — especially the affected
employees.

Democratic Leadership

Democratic leadership is exactly what it sounds like — the leader makes decisions based on
the input of each team member. Although he or she makes the final call, each employee has an equal
say on a project's direction. For example, in a company board meeting, a democratic leader might give the
team a few decision-related options. They could then open a discussion about each option. After a discussion,
this leader might take the board's thoughts and feedback into consideration, or they might open this decision up
to a vote.
Bureaucratic Leadership
A bureaucratic leader is a “by the books” leader. They adhere strictly to company policy and
tradition, and set clearly-defined expectations for their team members to follow. This is a stable,
systematized approach to leadership that can be an effective style in highly regulated departments.

Transformational Leadership
The transformational leadership style is defined by the leader’s desire to improve upon or
“transform” the business or company they work for. Great leaders who employ the transformational
style seek to empower their team members in order to streamline or upgrade company conventions.

Laissez-Faire Leadership
The laissez-faire leadership style is a “hands-off” approach to leadership, which involves the
manager delegating responsibility and decision-making to team members with minimal interference
and supervision. This leadership model can encourage innovation by empowering self-motivated
employees to engage with their own passions and interests.
Transactional Leadership

A transactional leadership approach involves offering incentives for effective

performance and penalties or disciplinary action for poor performance. A
transactional management style can be a particularly strategic leadership approach
when you want to achieve specific performance-related benchmarks.

Charismatic Leadership
Charismatic leaders rely on charm and personality to communicate goals and
encourage performance. These leaders are particularly adept at inspiring team
members to accomplish a shared objective, often through a rallying speech or their
infectious enthusiasm.
Theories of leadership
 Trait theory
Trait theory, assumes certain traits or characteristics leads to effective
leadership.

There are certain traits are personal characteristics which make a person to
become a leader. Anybody who possesses these traits would become a leader

According to trait theory “ leadership characteristics” are in born and

accordingly some peoples are in “born leaders” due to their psychological make up

Charles bird and ralph stodgill were important contributors to this theory.
Some of the important traits of a leader
I. Intelligence

II. Physical features

III. Inner motivation drive

IV. Maturity

V. Vision and foresight

VI. Acceptance of responsibility

VII. Adaptability

VIII. Open mindedness

IX. Importance to human relations

X. Fairness and objectivity

Situational theory
This theory states that leadership is situational in nature. The
effectiveness of leadership depends on the situation. A leadership style
which is effective in one situation may be ineffective in other situation .
There is no one best style of leadership that can be applied to all
situation

An effective leader is one who can modify his leadership style

according to the situation. If a leader tries to use the same style in all
situations, he may not be successful.
The situational leadership model of Hersey and Blanchard, suggests four leadership
styles and four levels of followers – development.

In this model leadership behavior becomes a function not only of the characteristics
of the leader. Other situational leadership models introduces a variety of situational
variables. These includes
 The nature of the task

 Organizational polices, climate and culture

 The preference of the leaders superiors

 The expectations of peers

 The response of followers

DIRECTING
Meaning

Direction is the process by which employees are guided to contribute towards

organizational objectives. It involves guiding, supervising, motivating and
controlling employee. The function of direction is performed by all levels of
management.

Definition:-
Ur wick and Breach, “direction is the guidance, the inspiration, the leadership, of
those men and women that constitute the real core of the responsibilities of
management.
Nature:-
• Direction is important managerial function

• It initiates action

• It is a continuous function of management

• Initiates at top level of management and flows down the hierarchy

• Communication is essential for direction.

Elements:-
• Issuing order

• Continuous training

• Motivation

• Maintain discipline and providing reward

Importance of Direction
• Initiates Action

• Minimize Error

• Efficient utilization of resources

• Boosts morale

• Improve efficiency
Principle of Direction:-
• Principle of maximum individual contribution

• Principle of unity of command

• Principle of managerial communication

• Principle of direct supervision

• Principle of effective leadership

SUPERVISION
Meaning

Supervision refers to guiding, instruction and motivating subordinates for better performance. The
supervisor monitors the performance of subordinates to verify whether

performance is according to plan

cost and time standard are met

Supervision refers to instructing subordinates and monitoring their performance on a regular basis

Definition:-
According to R. C. Davis, “supervision is the function of assuring that the work is being done in
accordance with the plans and instruction.
Role of supervisor

• Verify weather subordinates work according to the organizational plan

• Monitoring weather the time and cost standards are met

• Ensuring achievement of production targets

• Maintaining quality standards

• Improving efficiency of operations

• Ensuring regular training of workers

• Communicating organizational policies and goals to subordinates

• Motivating subordinates to perform better

Function of supervisor

A supervisor act as a link between management and workers. He provides key inputs for
planning, organizing, directing, coordinating and controlling
• Scheduling of activities

• Assignment of work

• Setting targets

• Arranging materials and tools

• Issuing instruction

• Guidance and advice

• Motivation

• Link between management and worker

• Provides information to management

Qualities of good supervisor:-

The supervisor plays an important role by serving as the link between management
and workers. Effective supervision leads to improve efficiencies , better performance,
harmony in the work place and achievement of organizational goals

• The supervisor should be physically active and mentally alert

• He should have good knowledge of the technical aspects of the job

• Effective communication skills are essential to ensure clarity

• Ability to think and act quickly

• Supervisor should possess good interpersonal skills in order to motivate

• He should be fair in dealing with subordinates and should not display

favoritism
 MOTIVATION
• Motivation refers to those factors operating within an individual which pushes
him to act in a certain way. It is that process which induces ordinary people to do
extra ordinary things.

• It is encouraging people to work towards achievement of goals. Motivating means

encouraging people to take more initiative and interest in the work assigned
Definition:-
BARON AND GREENBERG, “motivation is the set of process that arouse, direct
and maintain human behaviour towards attaining same goal.”

George R. Terry, “Motivation is the desire within an individual that stimulates him
or her to action.
NATURE OF MOTIVATION
• Internal feeling

• Continuous process

• Goal directed

• Complex process

• Motivation differs from satisfaction

• Motive change

IMPORTANCE OF MOTIVATION
• Utilization of employee potential

• Improved efficiency

• Optimum usage of resources

• Reduced labour turnover

• Strikes and lock outs avoided

Types of motivation
 Extrinsic Motivation

 Intrinsic Motivation

Extrinsic Motivation

This is when motivation comes from "external" factors that are given or
controlled by others. Salary or praise are good examples. This type of motivation is
everywhere and frequently used within society. When you are motivated to perform,
achieve, learn or do something based on a highly considered outcome, rather than
for the fun, development or personal fulfilment, you are being extrinsically
motivated.
Intrinsic Motivation
This is when motivation comes from "internal" factors to meet personal
needs. We do things we do because we enjoy them, not because we have to.
Intrinsic means internal or inside of yourself; when you are intrinsically motivated,
you enjoy an interest, a course of study or skill development solely for the
fulfilment of education and having fun. EMS is a career field that really touches our
intrinsic motivation. We’re not going to retire with mansions or private jets; instead
we get our satisfaction from helping others and being the best part of their worst
day. Examples include exploring opportunities for personal development for the
satisfaction of being competent in a task, or setting the standards to become a role
model or mentor. Whatever you take on, you do it for personal accomplishment and
gratification.
Theories of Motivation
Maslow's hierarchy of needs theory
Maslow's hierarchy is a psychological theory that outlines the types of needs a
person must meet in order to progress to more complex needs. The hierarchy of needs
includes five levels, including

Physiological

To meet physiological needs, or basic survival needs, you can ensure you have
adequate water, shelter, clothing and food. In a work setting, an employee's salary
may allow them to fulfil their physiological needs

Safety

This level refers to the need to feel protected. In the workplace, this need may
align with employees feeling safe in the workplace and feeling a sense of job security
Socialization
To meet socialization needs, employees may strive for their co-workers to accept them,
seek to make friendships at work or job groups to feel a sense of belonging. A workplace
may fulfil this need by creating opportunities for employees to bond by hosting employee
lunches and team-building activities

Esteem

Employees often reach this level by receiving recognition, which can help them feel
confident in their work and increase their self-esteem. Recognizing their achievements and
providing positive feedback are two methods you can use to help build an employee's self-
esteem

Self-actualization

To reach this level, employees may seek to achieve complex, long-term or personal goals.
McGregor’s Theory X and Theory Y
• This approach assumes that some employees are lazy or not motivated by the
work (in fact, they have a distaste of the work), unambitious, avoid responsibility,
is self-centred, indifferent about organizational goals, and prefers to be directed.

• It calls on the leader to be proactive in managing the employees and allocation of

resources. She should motivate the subordinate through specific directives, closely
supervise their efforts, and take steps to motivate (through reward or punishment)
accordingly.

• In other words, it is an authoritative style of management.

Theory X
According to McGregor, Theory X management assumes the following:

 Work is inherently distasteful to most people, and they will attempt to avoid work whenever
possible.

 Most people are not ambitious, have little desire for responsibility, and prefer to be directed.

 Most people have little aptitude for creativity in solving organizational problems.

 Motivation occurs only at the physiological and security levels of Maslow’s hierarchy of needs.

 Most people are self-centred. As a result, they must be closely controlled and often coerced to
achieve organizational objectives.

 Most people resist change.

 Most people are gullible and unintelligent.

Essentially, Theory X assumes that the primary source of employee motivation is monetary, with security as a
Theory Y
• Theory Y assumes that subordinates do not dislike the work, are self-motivated, can be
creative, seeks responsibility (leadership roles), and can be self-directed. Leaders must
respond with a participative style of management.

• As such, threats of punishment are far less effective in motivating the employee. Also,
the employee is committed to an objective that is based upon rewards - though they
may respond to different types of rewards.

• These types of employees generally respond better to rewards leading to esteem and
self-actualization. Management attempts to get the maximum output with the least
efforts on their part.

• As you can see, these theories are diametrically opposed. They do, however, view
The higher-level needs of esteem and self-actualization are ongoing needs that, for most people, are
never completely satisfied. As such, it is these higher-level needs through which employees can best
be motivated.
In strong contrast to Theory X, Theory Y management makes the following assumptions:

• Work can be as natural as play if the conditions are favorable.

• People will be self-directed and creative to meet their work and organizational objectives if they are committed to
them.

• People will be committed to their quality and productivity objectives if rewards are in place that address higher
needs such as self-fulfillment.

• The capacity for creativity spreads throughout organizations.

• Most people can handle responsibility because creativity and ingenuity are common in the population.

• Under these conditions, people will seek responsibility.

• Under these assumptions, there is an opportunity to align personal goals with organizational goals by using the
employee’s own need for fulfillment as the motivator. McGregor stressed that Theory Y management does not
COMMUNICATION
Meaning

Communication is the process by which ideas, feeling, opinions, beliefs,

and message are passed on to one or more persons. It is said to be a
bridge of meaning between people

Employees in all level need to communicate in order to seek or give

information.

Definition:-

Koontz and O Donnell, “communication is the exchange of facts,

ideas, opinions or emotion by two or more people”
Elements of communication:-
• Sender

• Message

• Medium

• Receiver

• Noise

• Feedback
Nature of communication:-
• Involves atleast two persons

• Is a two way process

• Transfer process

• Objective is to create understanding

• May be in various forms

Types of communication:-
• Formal

• Informal

• Upward

• Downward

• Oral

• Written
Formal communication

Formal communication is often used when communicating with customers and

clients, especially during an official press release. Formal communication tends to follow
a specific organizational structure, such as mass communication in a carefully crafted
email campaign or at a meeting. It may be used in the following circumstances Press
Informal communication

Informal communication, also known as “grapevine” communication, is equally

important, as it is the most common way internal organizational communication occurs.
Employees use informal communication to connect with each other to Meet face-to-face in team
meetings, Ask questions over messaging apps, Share work via email

Directional communication—Downward

Downward communication refers to an employee communicating with another employee

in a lower-ranking position. Downward communication is most commonly used in an
instructional sense, such as

 A supervisor discussing work performance with a frontline employee

 The CEO sending a mass email about upcoming changes

Directional communication—Upward

Upward communication is the reversal of downward communication. It’s most commonly used in
the following workplace situations

 A frontline employee asking a manager for advice or guidance on a task

 An employee giving feedback to a supervisor or manager

 A frontline employee sharing information with a supervisor

• Directional communication—horizontal

Horizontal communication refers to the communication of employees on the same hierarchical

level. It might occur in the following situations:

 A team meeting to share ideas

 An employee asking a colleague for advice or support

Internal communication

Internal communications focus on the way employees interact with one another.
This workplace communication may involve the following:

 Professional collaboration via numerous communication channels such as video,

email or live chat

 Employee training modules such as decision-making courses or two-way reviews

 Messaging around an organization’s mission

 Interpersonal communications between management and employees

 Workplace social activities

External communication

External communication applies to the way an organization communicates

with the outside world. This includes:

 Public relations announcements, for example by social media, TV, or radio

 Marketing materials

 Branding of products or services

 Job posts and hiring, including LinkedIn adverts or recruitment drives

 Communication with stakeholders

 Customer support
Oral communication

Oral (spoken) communication is important. It’s the way a person communicates face-to-
face to their colleagues, employees, or customers. Interpersonal communication relies on body
language, eye contact, and gestures, as well as the words being said. An employee may use oral
communication in a one-to-one session, a small group meeting, or in front of a large crowd of
people. As such, oral communication helps us to form stronger relationships and build trust.

Written communication
Written communication is also important when running a business. It occurs via email,
instant messages, and social media, and can be both formal and informal. There are a number of
benefits to written communication over oral communication. For example, an employee has more
time to think of their response and ensure it adheres to the company guidelines. Written
communication is less impulsive and therefore can be more strategic.
Barriers to communication

• Alternation of information

• Unclarified assumption

• Missing information

• Noise

• Lack of attention

• Status difference

• Selective attention

• Lack of time

• Badly expressed message

• Poor retention
Steps to overcome barriers to communication

• Clarity

• Promptness

• Effective channel

• Healthy relationship

• Two way communication

• Evaluation

• Organizational policy

• Commitment of top management

• Encourage feedback