INTRODUCTION :
 Leadership has originated and formed from the
verb ‘to lead’ means to provide direction.
 A person who directs, shows the path,
motivates, initiates is a leader.
 Successful managers should try to create a
desire to achieve goals, recognition, flexibility,
and should instill a sense of co-operation.
 If managers provide effective leadership, then
employees are motivated, inspired and get the
proper guidance.
 Managers should themselves provide good
leadership and it is very essential.
DEFINITION :
 “Leadership is an activity of controlling the
voluntary efforts of people achieving
corresponding objectives.”
- Dr. George R. Terry
 “Leadership is such a behaviour through which
others are motivated to work.”
- La Payere and Franceworth
 “Leadership is an act influencing people so that
they will strive willingly towards achievement of
goals.”
- Koontz and O’Donnell
MEANING :
 Continuous process stimulating others.
 Includes leaders and subordinates
 An effort to direct and stimulate the
behaviour and efforts of employees and
subordinates.
 Interpersonal relations has to be used as a
means of communication.
 It is an objective to achieve the goals of an
enterprise.
NATURE OF LEADERSHIP :
o Desired result not possible without a
o
o
o
o
competant leader.
Leadership is required at economic,
commercial, social or national activities.
It is an art.
Without leadership qualities a manager will
not be able to reach the height of success.
As per Koontz and O’Donnell, “Every
manager should be a leader, every leader be a
manager is not necessary”.
o Management is an art of doing things
through the efforts of others.
o A competant leader is able to create a sense
of unity and co-operation between groups.
o A leader is a part of the group but still he has
a better status and recognition.
o Various meanings of leadership such as :
•
•
•
•
•
•
Focal point of any group activity
Stimulus for discipline
Providing direction
Tool for achieving desired goals
Tool for authority and power
Element of interpersonal behaviour, etc.
o “Leadership results from the qualities that are
within a leader”.
o The qualities may be present when a person
is born, but they can certainly be created.
o Leadership qualities can be acquired through
training and competencies.
o The use of leadership qualities is always done
in context with a group.
FUNCTIONS OF LEADERSHIP - LEADER
1) Instructions
2) Fulfillment of objectives
3) Security
4) Representative
5) Motivator
6) Recognition
7) Problem Solver
LEADERSHIP STYLE :
A. Autocratic leadership :
- Leader doesnot give freedom to employees.
- Gives orders and instructions
- They have to be strictly deallt with
- According to this style, it is believed that
employees are unable to do work on their own.
- This style becomes more necessary in case of
untrained, uneducated and illiterate employees.
This style is divided into three categories :
(1) Centralization of Authority :
- Total authority retained by leader.
- Subordinates are not given any power.
- For untrained and illiterate employees.
- Limitation : Leader has to face work
overload.
- Unable to concentrate on important
decisions due to workload.
- Labour turnover rate increases here.
(2) Lay stress on orders only :
- Orders are issued to subordinates to get the
work done.
- Educated employees not interested and
uneducated employees get bored of such
orders.
- No enthusiasm towards work.
- When employees are not interested to take
up any responsibility this technique is useful.
- Detailed instructions given to perform work.
- Employees cannot use their own creativity
and skills.
(3) Main strict supervision :
- It is one of the policies.
- Where employees are uneducated,
untrained, etc. such kind of leadership is
suitable.
- But if employed and trained than results
don’t provide fruitful.
 Benefits :
Employees accustomed to receive directions and
orders can accept this style.
ii. Self motivates manager
iii. Speedy decisions taken
iv. No planning, organizing, so they can
concentrate on work
i.
 Demerits :
Not favoured by employees
ii. Employees get depressed and inactive
iii. Reduces morale and enthusiasm
iv. No opinions and advice
v. Misuse of power
i.
 When is this style useful ?
 Strict policy and regulations have to be
considered
 Emplopyees are uneducated, untrained and
irresponsible
 Emergency or critical situation
 Work has to be undertaken from less efficient
employees
 Employees are demotivated and dissatisfied
B. Democratic Leadership
approach :
o Employees efforts are co-ordinated with
each other.
o Their views and suggestions are considered.
o Through formal and informal meetings,
employees suggestions are taken into
account.
o Formal meeting notice is given, whereas in
informal meeting are called without any
notice.
 Benefits :
 Importance given to employees
 Productivity and efficiency increased
 Work harder
 Morale and enthusiasm increases
Demerits :
 If managers not able to use effectively than this
method donot show good benefits.
 Sometimes employees themselves not interested
to take decisions as they are confused.
 Lack of co-ordination
 Under which situation this style is useful ?
 When employees are trained and educated and
they have logical reasoning to understand
situations.
 To take routine decisions
 Confident employees to take decisions
C. Free Reign Style of
Leadership :
 Interference of top management is as minimum
as possible.
 Maximum freedom given to employees.
 Top managers only supervise.
 General guidelines provided wherever
necessary.
 Final decision taken by employee.
 Here employees should be trained and
educated, and should understand situations
properly than only this method proves good.
 The leader believes to create suitable
environment to achieve goals.
 Employees inner strength is developed.
 Managers show trust and confidence in
employees
 But at times employees may also take wrong
decision.
 This style suitable for educated and well
trained employees.
 Benefits :
 Develops hidden talents of people
 Employees administrative skills are developed
 Less interference of work is done of employees
 Demerits :
 Employees may take wrong decisions
 Lack of co-ordination
 Employees are sometimes confused to take
wrong decisions.
 When is this approach benefitial ?
 Where employees have good knowledge
 Routine decisions are to be taken
 Employees are confident to take decisions
Essential Qualities required
in a LEADER :
Energy
II. Emotional stability
III. Knowledge of human relations
IV. Interest
V. Knowledge of communication
VI. Good teaching skill
VII. Technical competence
VIII.Social competence
I.
Required qualities in a
leader :
Physical
qualities
Psychological
Qualities
Social Qualities
Behavioural
Qualities
Other
Qualities
1) Physical Qualities :
Healthy, Good appearance (Face,
Physiqye, Appearance), Good and sweet
voice.
2) Psychological Qualities :
Self confidence, Efficient, Vision, Intellect,
Competence, Skills, Patience.
3) Social Qualities :
Communication, Interpersonal
effectiveness, Presentation skills, Honesty,
Humility, Co-operation, Popularity.
4) Behavioural Qualities :
Interest, Honesty, Commitment,
Dedication, Creativity, Expectation.
5) Other Qualities :
Education, Training, Leadership
Experiences.
 There were 163 types of researches regarding
leadership qualities conducted in America.
 Till 1904 to 1947, 124 leadership surveys have
been undertaken and given importance.
 On that basis peculiar characteristics of
leadership has been evolved :
1. Itellect
17. Decision making skills
2. Education
18. Physical Height
3. To participate in Social Activities
19. Technical competence
4. Self confidence
20. Strategic competence
5. Acceptance of responsibility
21. Achievement motivation
6. Social status
22. Physical weight
7. Competence of interpersonal
relations
23. Stable decisions
8. Good voice
24. Firm commitment
9. Good physical appearance
25. Dedication
10. Liability to complete responsibility
26. Humility
11. Co-operation
27. Force
12. Knowledge
28. Honesty
13. Impact
29. Mobility
14. Recognition and Praise
30. Communication Ability
15. Efficiency
31. Teaching skills
16. Age
Leadership Continuum :
 Under Autocratic leadership, all the power is
kept by leader himself. He is task oriented and
does not give importance to employees.
 In the democratic style, employees are kept at
the centre. Human relations are given much
more importance.
 In reality, manager adopts both the styles in
different situations.
 When centralization of authority reduces, then
subordinates independency and freedom is
increased.
Use of power among
subordinates
1
2
3
Autocratic leader
4
5
6
7
8
9
People centred leader
Tannen Baum :
o Researches conducted by Tannen Baum and
Schmidt is of much importance.
o Development opportunities can be created
for employees and he have considered social
changes to improve quality of decisions.
o 2 sides of the group : Left side – Authoritative
leadership and Right side – Democratic
leadership.
o 7 parts portraying 7 types of leadership are as
under :
1. Leader takes decisions and presents it –
Employees have to implement it.
2. Leader takes decisions and employees
accept it, efforts are undertaken.
3. Leader presents his views in front of
employees and invites querries. Possibilities
of discussions.
4. Leader tries to present possible solutions or
decisions. There is possibility of taking
decisions.
5. Leader presents problems in front of
Employees, gets querries and than take
decisions
6. Leader entrust the employees to take decisions,
but also explains the constraints.
7. Leader asks the employees to freely take
decisions.
Decisions are taken independently, so that it
becomes effective in long run.
Employees personal development takes
place.
In democratic leadership it becomes easy to
accept goals in groups. Leadership qualities are
developed in subordinates. More time is spent in
taking decisions. Leader should be patient to
take decisions. Leader should be effective in
providing leadership skills.
Theories of Leadership
 Fiedler’s contingency model leadership and
its effectiveness principle.
 The base of leader’s effectiveness, as per this
model is :
 System or type of leadership
 Favourability of condition
1) System of leadership :
- Here there are two types of leaders :
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Task oriented
Relationship oriented
Task oriented leaders pay more importance to the
task rather than people.
Relationship oriented leaders believe in
maintaining healthy relations with their
subordinates.
Fiedler has developed a numerical table of “Least
preferred co-worker” (LPC)
LPC are those employees with whom the leader
experiences most difficulty to work.
Certain tests are used :
Intelligent ………… Dull
Efficient
………... Inefficient
Co-Operate ………… Non Co-operative
Interested ………… Disinterested
 If a leader adopts a positive attitude towards
subordinates, LPC rate would be high and
vice versa.
 If LPC ranking Is high, it denotes relationship
centered leader and if low, task oriented.
2) Favourability of
Situation :
• Within 3 variables a leader has to work :
- Leader-member relations
- Work-structure
- Position-Authority
(i) Leader-member relations :
•
•
It is determined in which manner the leader is
accepted or rejected.
If co-operation between them, orders are carried
out properly and as per leaders desires.
(ii) Work-structure :
- In a highly structured task leader’s ability to
influence the group is restricted because task
dilutes leaders ability and potential influence.
- In an unstructured task, the leader has great
potential to influence group as he has more
knowledge than the followers.
(iii) Leader position power :
- Power to have n fire, status symbols, power
to give promotions, etc.
Condition /
Situation
Attitude
1
2
3
4
Leadermember
relations
Good
Good
Good
Task structure
high
high
Position power
strong weak
5
6
7
8
Good bad
bad
bad
bad
low
low
high
Low
low
strong
weak strong
High
weak strong
weak
 1,2,3 = favourable situation
 4,5 = general favourability
 6,7,8 = adverse situation
 Task structure is favourable in highly
favourable situation and highly unfavourable
situations, In general conditions, relationshipbased leader are good.
Evaluation :
 More clear
 Derived this model after scientific researches
 Depends on various situations
 This model is useful to select the leader
 Related with different situations with
leadership system
 This model tells us that leadership is based on
situation
Criticisms :
 Measuring rod quite confusing and unreliable.
No direct relationship between combinations
and style.
 Fails to explain favourable and unfavourable
situations.
 Complex model based on small samples.
 Table of LPC is unclear.
LIKERT’S SYSTEM OF
MANAGEMENT
 The professor of Chicago University, Rensis
Likert has given the system of management.
 Important ideas have evolved related to the
leader’s behavior in his research.
 Likert is a pioneer of participative form of
management.
 In his research of effective leaders, he has noted
that :
“Effective leaders adopted a humanly approach
towards their subordinates and they were able to
motivate and direct the efforts of their
subordinates successfully.”
 The following are the 4 management systems
adopted by likert :
1) System – 1 :
o
o
o
o
System 1 is called “Exploitative Authoritative
form of management”.
Such leaders donot have any trust in their
subordinates.
They get their work done forcefully through
punishments and subordinates fear leaders.
They believe in formal communication and they
themselves take decisions.
2) System – 2 :
o Such style is called “Benevolent Authoritative”.
o Such leaders are authoritative but still they
behave humanly with subordinates.
o They trust their subordinates and try to motivate
them.
o Try to know views of subordinates and encourage
participation in decision making process.
o But keep all the authority with themselves.
3) System – 3 :
o This style is called “Consultative leadership”.
o They trust their subordinates.
o They encourage and apply the ideas and creativity
of their subordinates.
o They believe in motivation.
o Communication is in the form of dialogue.
o The top order decisions are centralized only the
routine decisions are decentralized.
4) System – 4 :
o This style is known as “Participative style”.
o Total trust and confidence is shown on
o
o
o
o
subordinates.
Their views and suggestions are given importance.
Informal communication is encouraged.
Subordinates are made to participate in decision
making.
They work with subordinates in groups, as they
believe in group effort.
 Likert’s research stated that managers
adopted system-4 in their work practice.
 System-4 is helpful to achieve the goals
effectively.
 It encourages participation and unity.
 Efforts are focussed over here.
IMPORTANCE OF LEADERSHIP
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An important organ of direction.
Provides motivation.
Directs activities of group.
He creates unity, co-ordination and dedication among his
group members.
Provides confidence, strength, will-power in his
subordinates.
Helps to get best results through minimum wastage of time
and energy.
A base for effective organization structure.
Improves the effectiveness of teams and groups.
Effective management of business is not possible without
an effective leader.