CHAPTER I INTRODUCTION - Shodhgangashodhganga.inflibnet.ac.in/.../32420/9/09_chapter_1.pdf · 2018....
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CHAPTER I
INTRODUCTION
Introduction
It is well known that in every human activity a leader is needed to guide a group
of people. In general practice the head of the family is the most common leader. On the
quality of this leader, be it the father or the mother depends the progress, happiness and
fortunes of the family.
In modern society thousands of individuals are appointed or elected to shoulder
the role and responsibilities of leadership. It happens in schools and colleges ( Class
captains, sports team captains and captains of other activities) factories and farms,
business enterprises, dispensaries and hospitals, in the civil and military organizations of
a country and public life, at all levels, in short in every walk of life. If these leaders are
good men or women then they promote unity, harmony, strength, prosperity and
happiness in society.
It is well to remember that leadership cannot be taught in class. However every
individual does have the capability to transform himself. To improve our character is one
of the most challenging, yet the most exciting rewarding and joyful human activity.
The true leader is one who holds enterprise together and keeps spirit high; wear
no standard uniform of personality and spring from no single heritage.
Nature of Leadership
Leadership has been well researched over the years, yet a lack of consensus in
many aspects of leadership still remains. Despite the fact that several thousand books,
articles, and papers have been written on the phenomenon of leadership, there is still not
an appropriate, consensus definition that is universally accepted. According to Stogdill
(1974), “there are almost as many definitions of leadership as there are persons who have
attempted to define the concept”.
Although most researchers generally define leadership according to their major
areas of interest and personal perspectives, most definitions are based on the belief that
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leadership is a process that occurs as one individual influences one or more others in an
effort to facilitate organizational or group performance Yukl G (2002). Similarly,
Northouse (2001) identified four central components to the concept of leadership: (1)
leadership is a process, (2) leadership involves influence, (3) leadership occurs within a
group context, and (4) leadership involves goal attainment.
The following examples reflect the various definitions of leadership that have
been proposed over the years. Gardner (1990) defined leadership as “the process of
persuasion or example by which an individual (or leadership team) induces a group to
pursue objectives held or shared by the leader and his or her followers” (P. 1).
Kouzes & Posner (1997) defined leadership as “the art of mobilizing others to
want to struggle for shared aspirations” (P. 30). Northouse (2001) defined leadership as
“a process whereby an individual influences a group of individuals to achieve a common
goal” (P. 3). Bass (1990) defined leadership as “an interaction between two or more
members of a group that often involves a structuring or restructuring of the situation and
the perceptions and expectations of the members” (P. 19).
One of the characteristics common to each of these definitions is the presence of
other people. In his book Lead, Follow, or Get Out of the Way James Lundy (1990)
offers the following simple definition of a leader, "A leader is anyone who has followers"
(P. 20). According to this definition, leaders can exist anywhere within the organizational
hierarchy. Leadership should not be equated with position, power, authority, or status
(Bolman & Deal, 1997; Gardner, 1990). Leadership should be viewed as more of a
function of the relationship that exists between leaders and followers rather that the title,
power, status or authority one possesses within the organization. This is not to say that
people in administrative and management positions should not be considered leaders.
They are leaders not because of their title, but because people around them grant their
cooperation and follow them (Bolman & Deal).
Leadership is a universally accepted concept, yet one that is surrounded by
confusion and disagreement (Bolman & Deal, 1997). According to Bennis and Nanus
(1997), " 'Leadership' is a word on everyone's lips," and "Everyone agrees there is less of
it than there used to be" (P. 1). They go on to point out that although specific leadership
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competencies have remained more or less the same over the years, theories of what
exactly leadership is, how it works, how it is learned, and how it is applied have not
remained as quite as constant.
According to Hemphill (1954), To lead is to engage in an act that initiates a
structure in the interaction as part of the process of solving a problem. This definition was
taken forward by Henry Harris in his book ‘The Group Approach to Leadership Testing’.
He wrote that leadership is a collective function, a relationship between the leader and the
group, the authority lies in the situation. It is the situation that creates the imperative and
not in the leader or individual. This approach considers leadership as dynamics process
and balance the importance of leader, the group and the situation in it. In simple words
leadership is to influence a group to achieve organizational goals.
Figure 1.1 Leadership Dynamic Processes
The role of leader can be a part of design of an organization where the leader
holds the position to influence, however the real role is outside the organizational
position where a leader influences the group is as important as being within the group.
The leaders can be appointed and can also emerge from within the group. There can be a
little question that the success of an organization or a group within an organization
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depends largely on the quality of leadership. Whether in business, government,
education, medicine, religion or armed forces, the quality of leadership determines the
quality of organization itself. Successful leaders anticipate change, positively exploit
opportunities, motivate their followers to higher levels of productivity, improve poor
performance and lead the organization towards objectives.
LEADERSHIP versus MANAGEMENT
The terms leadership and management are used interchangeably in some contexts.
The term manager tends to be more widely used and has often been used in lieu of the
term leader. It also appears that the term manager sits more comfortably with people in
the private sector while the term leader is more comfortable in the military sector.
Leaders exist in all sectors and at all levels, and they have a profound influence on
modern thinking and behavior. Maxwell (1999) cites leadership examples from different
fields including business, politics, science, philanthropy and the military.
There is reason to view the two terms as quite distinct. In recent literature, notably
Kotter (1996) and Conger and Kanungo (1998), there has been an effort to distinguish
between the two concepts. Kotter (1996) provides a distinction between the essentials of
leadership and management as shown in Table 1.1
Table 1.1 Kotter’s Distinction between the Essentials of Leadership and
Management
Management Leadership
Planning and Budgeting – detailed plans for short-term goals
Establishing direction – defining the future vision and long-term objectives
Organizing and Staffing – organizing work teams and delegating responsibility
Aligning people – articulating the vision and influencing people
Controlling and Problem Solving – monitor results and reactive problem resolution
Motivating and Inspiring – energizing people to deliver results and meet higher needs
Result: produces predictable results and order.
Result: produces change to a dramatic degree
Source : From Kotter (1996)
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Kotter (1999) further comments that leadership is centrally important because it is
different from management, and the primary force behind successful change is leadership
and not management. While leadership and management are complementary, they serve
different goals. Leadership and management have quite different impacts on
organizational performance. Organizations need both good leadership and management to
realize their objectives. Leadership is about coping with change whereas management is
about coping with complexity. Management brings order and consistency in order to
achieve the desired outcomes. Kotter (1999) emphasizes that major changes are necessary
to survive and compete in today’s environment and greater change always demands more
leadership.
Kotter (1996, 1999) and Conger and Kanungo (1998) show similarity in the
distinction between leadership and management. Leadership is about the future direction
and vision for the organization and it can be likened to a path of discovery. Leadership is
considered to be more conceptual than management and requires individuals to think
deeply about the future direction of the organization. This conceptual thinking takes time
and energy, and should incorporate a range of different opinions. Maxwell (1995)
identifies common characteristics concerning thinking that applies to leaders. These
features include thinking continuously and strategically, without boundaries, and
considering the needs of others. In contrast, management is about achieving short-term
goals, operating excellence, and maintaining order and predictability in relation to the
status quo.
The following table from Conger and Kanungo (1998) expands Kotter’s (1996)
essentials from Table 1.2 and further clarifies the distinction between management and
leadership.
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Table 1.2 Distinctions between Leadership and Management
Management Leadership
Engages in day-to-day activities: Maintains and allocates resources.
Formulates long-term objectives for reforming the system: Plans strategy and tactics.
Exhibits supervisor behavior: Acts to make others maintain standard job behavior.
Exhibits leading behavior: Acts to bring about change in other congruent with long-term objectives.
Administers sub-systems within organizations. Innovates the entire organization.
Asks how and when to engage in standard practice.
Asks when and why to change standard practice.
Acts within established culture of the organization.
Creates vision and meaning for the organization and strives to transform culture.
Uses transactional influence: Induces compliance in manifest behavior using rewards, sanctions, and formal authority.
Uses transformational influence: Induces change in values, attitudes, and behavior using personal examples and expertise.
Relies on control strategies to get things done by subordinates.
Uses empowering strategies to make followers internalize values.
Supports the status quo and stabilizes the organization. Challenges the status quo and creates Change.
While Kotter and Maxwell are able to differentiate the functions of leadership and
management, this is not always easy to achieve in practice. Leadership and management
are recognized as two distinct concepts. However, leaders and managers must understand
that both functions are necessary for organizational success. Leadership helps to set the
strategic direction and leaders act as change agents to realize the vision. Management
helps the organization to execute the current business plan and deliver the required
results. Another key distinction between leaders and managers is the quality of
interactions with their people. Leaders inspire, energize and motivate their people
whereas managers help people achieve their more basic needs.
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In contrast, Zalenik (1977) argued that leaders and managers themselves are
different and distinct. He distinguished between leaders and managers based on three
areas of suggested differences: motivation, personal history, and in how they think and
act and go on to argue that managers and leaders are in fact different types of people
(Zalenik). As a result of his belief that leaders and managers are two different types of
people, Zalenik went on to argue that training and developing managers may actually
inhibit the development of leaders.
Similarly, Bennis and Nanus (1985) described distinct differences between
managers and leaders as people. According to them, “managers are people who do the
things right and leaders are the people who do the right things”. For theorists such as
Kotter, Zalenik, and Bennis and Nanus, the essential distinction between leaders and
managers seems to be that leaders influence commitment while managers simply exercise
authority as they perform the responsibilities associated with their position (Yukl, 1989).
Colvard J (2009) distinguish between leaders and managers in Table 1.3
Leaders Managers
Leaders are the heart of an organization Managers are the brain of an organization
Motivates, encourage, and work with people Establish systems
Create a vision and set a direction, and sharing with followers Creates rules and operational procedures
Ask how and when Asks what and why
Take you to a new place Take care of where you are
Align people based on their knowledge, abilities and personality
Are a task-oriented and often not people-oriented
Wonder that if the problem set in a new environment might require a different solution
Think that a successful solution to a management problem can be used again
They write business plans, sets budgets and monitor progress They get organizations and people to change
Do things right Do the right things
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Changing Styles for the New Millennium from Management towards Leadership
Quality: Empowerment
Moving from Management: Moving toward Leadership:
Punishment Reward
Demands "respect" Invites speaking out
Drill sergeant Motivator
Limits and defines Empowers
Imposes discipline Values creativity
"Here's what we're going to do!" "How can I serve you?"
Bottom line Vision
Quality: Restructure
Moving from Management: Moving toward Leadership:
Control Change
Rank Connection
Hierarchy Network
Rigid Flexible
Automatic annual raises Pay for performance
Performance review Mutual contract for results
Mechanistic Wholistic
Compartmental Systemic
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Quality: Teaching
Moving from Management: Moving toward Leadership:
Order-giving Facilitating
Military archetype Teaching archetype
Quality: Role Model
Moving from Management: Moving toward Leadership:
Issues orders Acts as role model
Demands unquestioning obedience Coaches and mentors others
Quality: Openness
Moving from Management: Moving toward Leadership:
Keeping people on their toes Nourishing environment for growth
Reach up/down Reach out
Information control Information availability
Quality: Questions and Answers
Moving from Management: Moving toward Leadership:
Knows all the answers Asks the right questions
Not interested in new answers Seeks to learn and draw out new ideas
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Leadership:
A Concept Map
Leadership is very diverse and individualized. Below is the graphic representation of
leadership in form of a concept map.
Figure 1.2 Leadership: A Concept Map
A leader does basic things to do the best of his ability, accepting no wrong and
having the courage to the right thing. He has vision and is able to look at the past events
and plan for what is coming ahead. All the concepts were taken into consideration to
create the leadership concept map.
Leadership consists of many aspects special to each individual in a position to
create their own style in accordance with theory and personal traits, such as emotional
intelligence. The concept map shows how all the parts work together in the organization
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to accomplish goals. The followers are an important aspect because without them, there
would not be leadership. The personal relationships built help create a stable base on
which the leadership can thrive. This concept map is one example of leadership by an
individual with many variations possible. Leadership is diverse and individualized.
Finish Line Leadership - Qualities for Successful Leadership
What and who is a leader? “The Webster’s Dictionary defines leader as a person who by
force of example, talents or qualities of leadership plays a directing role, wields
commanding influence, or has a following in any sphere of activity or thought. It defines
leadership as that ingredient of personality that causes men (and/or women) to follow.
Contrasting the belief of vision and concern are ten important themes that help
leadership. It is his belief that by not adhering to the ten traits, leaders not only fail but
also bring chaos to their organization. To assist in creating a balanced organization, and
good stewardship, Drew offer to the leaders the following thoughts based on
LEADERSHIP.
L = Listening
Good listening is required in order to understand employee attitudes and motivators. Get
to know the employees by asking a lot of open-ended questions. When leader ask
questions, you have a chance to listen, and when you listen, you begin to better
understand employee motivations, body language and issues. Get them to speak of issues
that confront them and enable them to find solutions. Offer challenges to corporate issues
with solutions. And, provide credit to the employee with a solid reply.
E = Enthusiasm
Employees want to be motivated. This begins with positive energy and positive
commitment. Leader’s personal ills and corporate pressures are unimportant to their
employees. They are concerned about number one- themselves. In good times and bad
leader must always express a positive and energetic attitude. Finish line energy gets finish
line results.
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A = Awareness
Be aware of issues that are non-verbal. Leaders must have a keen sense that denotes when
employees are happy, frustrated, tired or overwhelmed. He must sense the issue and
eliminate it quickly so that leader keeps organizational harmony.
D = Decisive
Employees loathe procrastinators, even if they are a procrastinator! They want quick,
decisive and meaningful replies. Leaders do not ponder; they make quick decisions to
difficult problems and find immediate solutions.
E = Equal
The cliché “equal pay, for equal treatment” is so true. Leaders do not treat employees
based on title, age, race, religion etc. Leaders understand that “everyone” and “anywhere”
in the organization is equal. Leaders go by the principle that the sum of the parts is
greater than the whole.
R = Reward
Adults desire more than just money with work. They desire recognition and kudos for a
job well done. However, in today’s marketplace, employees although happy, are looking
for more contentment from their current job. This sense of pride and self-worth is a large
issue for most people. If people feel that they make a difference, they will care about
organizational objectives, if not, apathy emerges. In sum, the job affects the person and
the person affects the job. So what can be accomplished to gain a better sense of
company pride and loyalty? Establish a reward system and watch the attitudes soar!
S = Shallow Mission/Vision
Leaders understand the reasons of having corporate and divisional mission and vision
statements. These statements of purpose enable employees to understand, 1) Who the
firm is, 2) Where they are going? and 3) how they will get there. True leaders establish
missions as a roadmap to future success.
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H = Hypocrite
Leaders make decisions and stick with them. Leaders understand that reversing decisions
make them a hypocrite. Further leaders take action when they offer action. For example,
if a leader decides employees need training, he or she also takes the training. If a leader
decides pay cuts are necessary to preserve profits they too take a cut. Leading by example
creates a happier employee core and loyalty; contradicting the efforts creates dispassion,
disbelief and attrition.
I = Isolate
Leaders believe in teamwork and team play. Every employee counts toward the bottom
line. Leaders do not isolate themselves from the team and do no isolate the team from
each other. As the saying goes, “There is no “I” in team”
P = Positive Communication
In good times and in bad leaders create positive communication and feedback to
employees. Positive and meaningful communication creates loyalty and mutual exchange
of ideas and attitudes. When ideas are fresh and positive, profits and productivity soar!
Leadership Characteristics
Self-Esteem – A leader need high self-esteem to persuade its team. A leader without high
self-esteem will never be able to get good output from its team. So an excellent leader
needs high amount of self-esteem.
Need to Achieve – A good leader need to continually keep realistic goals and need to
achieve them in specified time-period.
Screening for Opportunity – A leader need to be in continuous search of opportunities,
and as the opportunity comes into way, he needs to take it not immediately but after
quickly analyzing it.
Locus of Control – A successful leader needs high internal locus of control to get more
success in his profession. External locus of control is not so much useful now days.
Goal Orientation - Businesses come and go, but those that last always share a common
characteristic with their founder—a relentless drive to accomplish goals. They understand
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what the priorities are and continue to work at toward that goal, day in and day out. A
leader need to be goal oriented to become successful.
Optimism – A leader need to be optimistic to become persuade his team members. Until
and unless a leader is not optimistic, the team will not get good results. Here the
optimistic means to see an opportunity in every difficult situation.
Courage – A leader need to have high level of courage because a leader come across
many difficulty situations continuously and to face these problems he needs high level of
courage.
Tolerance to Ambiguity - This term refers to a person's tolerance to uncertainty and risk.
A leader needs to be tolerable to face the difficult situations. Some time such situations
come before the leaders that it is difficult for the leaders to control their emotions and
motivate but they need to do so to keep the moral of their team at high level.
Strong Internal Motivation - The motivation that drives our behavior comes from two
sources: internal (intrinsic) and external (extrinsic). Intrinsic factors include constructs
like needs, desires, motives, and will power. Extrinsic factors include any type of
motivational influence from the environment such as rewards and punishments. A leader
needs to be highly motivated from inside to face the current days business difficulties.
Styles of Leadership
All leaders do not possess same attitude or same perspective. Few leaders adopt the carrot
approach and a few adopt the stick approach. Thus, all of the leaders do not get the things
done in the same manner. Their style varies. The leadership style varies with the kind of
people the leader interacts and deals with. A perfect/standard leadership style is one
which assists a leader in getting the best out of the people who follow him.
Autocratic Leadership Style
Autocratic leadership style is often considered the classical approach. It is one in which
the 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. The motivation
environment is produced by creating a structured set of rewards and punishments.
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This leadership style has been greatly criticized during the past 30 years. Some studies
say that organizations with many autocratic leaders have higher turnover and absenteeism
than other organizations
Characteristics of Autocratic Leadership
The major autocratic leadership style characteristics include:
1. The autocratic leader retains all power, authority, and control, and reserves the
right to make all decisions.
2. Autocratic leaders distrust their subordinate’s ability, and closely supervise and
control people under them.
3. Autocratic leaders involve themselves in detailed day-to-day activities, and rarely
delegate or empower subordinates.
4. The autocratic leader adopts one-way communication. They do not consult with
subordinates or give them a chance to provide their opinions, no matter the
potential benefit of such inputs.
5. Autocratic leadership assumes that employee motivation comes not through
empowerment, but by creating a structured set of rewards and punishments.
6. Autocratic leaders get work done by issuing threats and punishments and evoking
fear.
7. The primary concern of autocratic leaders remains dealing with the work at hand
and not on developmental activities.
8. Autocratic leaders assume full responsibility and take full credit for the work. (N
Nayab, 2011)
Yet, autocratic leadership is not all bad. Sometimes it is the most effective style to use.
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Figure 1.3 Autocratic Leadership Style
Autocratic leadership style is effective when:
- New, untrained employees who do not know which tasks to perform or which
procedures to follow
- Effective supervision can be provided only through detailed orders and
instructions
- Employees do not respond to any other leadership style
- There are high-volume production needs on a daily basis
- There is limited time in which to make a decision
- A manager’s power is challenged by an employee
- The area was poorly managed
- Work needs to be coordinated with another department or organization
The autocratic leadership style should not be used when:
- Employees become tense, fearful, or resentful
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- Employees expect to have their opinions heard
- Employees begin depending on their manager to make all their decisions
- There is low employee morale, high turnover and absenteeism and work stoppage
Democratic (Participative) Leadership Style
The democratic leadership style is also called the participative style as it
encourages employees to be a part of the decision making. The democratic manager
keeps his or her employees informed about everything that affects their work and shares
decision making and problem solving responsibilities. This style requires the leader to be
a coach who has the final say, but gathers information from staff members before making
a decision.
Democratic leadership can produce high quality and high quantity work for long
periods of time. Many employees like the trust they receive and respond with
cooperation, team spirit, and high morale.
Characteristics of Democratic Leadership
Some of the primary characteristics of democratic leadership include:
1. Manager seeks consultation on all major issues and decisions.
2. Manager effectively delegate tasks to subordinates and give them full control and
responsibility for those tasks.
3. Manager welcomes feedback on the results of initiatives and the work
environment.
4. Manager encourages others to become leaders and be involved in leadership
development.
Like the other styles, the democratic style is not always appropriate. It is most successful
when used with highly skilled or experienced employees or when implementing
operational changes or resolving individual or group problems.
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The democratic leadership style is most effective when:
- The leader wants to keep employees informed about matters that affect them.
- The leader wants employees to share in decision-making and problem-solving
duties.
- The leader wants to provide opportunities for employees to develop a high sense
of personal growth and job satisfaction.
- There is a large or complex problem that requires lots of input to solve.
- Changes must be made or problems solved that affect employees or groups of
employees.
- The leader wants to encourage team building and participation.
Democratic leadership should not be used when:
- There is not enough time to get everyone’s input.
- It’s easier and more cost-effective for the manager to make the decision.
- The business can’t afford mistakes.
- The manager feels threatened by this type of leadership.
- Employee safety is a critical concern.
Laissez-Faire Leadership Style
The laissez-faire leadership style is also known as the “hands-off¨ style. It is one
in which the manager provides little or no direction and gives employees as much
freedom as possible. All authority or power is given to the employees and they must
determine goals, make decisions, and resolve problems on their own.
Characteristics of Laissez-Faire Leadership
Laissez-faire leadership is characterized by:
Very little guidance from leaders
Complete freedom for followers to make decisions
Leaders provide the tools and resources needed
Group members are expected to solve problems on their own
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This is an effective style to use when:
- Employees are highly skilled, experienced, and educated.
- Employees have pride in their work and the drive to do it successfully on their
own.
- Outside experts, such as staff specialists or consultants are being used
- Employees are trustworthy and experienced.
This style should not be used when:
- It makes employees feel insecure at the unavailability of a manager.
- The manager cannot provide regular feedback to let employees know how well
they are doing.
- Managers are unable to thank employees for their good work.
The manager doesn’t understand his or her responsibilities and is hoping the
employees can cover for him or her.
Other Type of Leadership Style
Bureaucratic Leadership Style
Bureaucratic leadership is where the manager manages “by the book¨. Everything
must be done according to procedure or policy. If it isn’t covered by the book, the
manager refers to the next level above him or her. This manager is really more of a police
officer than a leader. He or she enforces the rules.
Bureaucratic leadership style can be effective when:
- Employees are performing routine tasks over and over.
- Employees need to understand certain standards or procedures.
- Employees are working with dangerous or delicate equipment that requires a
definite set of procedures to operate.
- Safety or security training is being conducted.
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- Employees are performing tasks that require handling cash.
Bureaucratic leadership style is ineffective when:
- Work habits form that is hard to break, especially if they are no longer useful.
- Employees lose their interest in their jobs and in their fellow workers.
- Employees do only what is expected of them and no more.
Charismatic Leadership
A charismatic leadership style can appear similar to a transformational leadership
style, in that the leader injects huge doses of enthusiasm into his or her team, and is very
energetic in driving others forward. A Charismatic leader is one who provides an
environment full of energy and positive reinforcement. Charismatic leaders inspire others
and encourage them to be their best. Employees and group members want to impress a
charismatic leader, so they work hard and strive to succeed. As such, charismatic
leadership carries great responsibility, and needs long-term commitment from the leader.
Downside of Charismatic Leadership
Under charismatic leadership, group members may view success in relation to
their leaders. A major problem with charismatic leadership is that group success tends to
hinge on the leader. The charismatic leader is the glue that holds a group together. So
what happens if the leader should have to step down or transfer? Normally, the group
dynamic will fizzle and individual members will lose enthusiasm.
People-Oriented Leadership or Relations-Oriented Leadership
This style of leadership is the opposite of task-oriented leadership. With people-
oriented leadership, leaders are totally focused on organizing, supporting, and developing
the people on their teams. This is a participatory style and tends to encourage good
teamwork and creative collaboration. People-oriented leaders treat everyone on the team
equally. They're friendly and approachable, they pay attention to the welfare of everyone
in the group, and they make themselves available whenever team members need help or
advice. The benefit of this leadership style is that people-oriented leaders create teams
that everyone wants to be part of. Team members are often more productive and willing
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to take risks, because they know that the leader will provide support if they need it. The
downside is that some leaders can take this approach too far; they may put the
development of their team above tasks or project directives.
Servant Leadership
This term, coined by Robert Greenleaf in the 1970s, describes a leader who is
often not formally recognized as such. When someone, at any level within an
organization, leads simply by virtue of meeting the needs of his or her team, he or she is
described as a “servant leader”. In many ways, servant leadership is a form of democratic
leadership, as the whole team tends to be involved in decision-making. Supporters of the
servant leadership model suggest it is an important way ahead in a world where values
are increasingly important, in which servant leaders achieve power on the basis of their
values and ideals. Others believe that in competitive leadership situations, people
practicing servant leadership will often find themselves left behind by leaders using other
leadership styles.
Task-Oriented Leadership
Task-oriented leaders focus only on getting the job done and can be autocratic.
They actively define the work and the roles required, put structures in place, and plan,
organize, and monitor work. These leaders also perform other key tasks, such as creating
and maintaining standards for performance. The benefit of task-oriented leadership is that
it ensures that deadlines are met, and it's especially useful for team members who don't
manage their time well. However, because task-oriented leaders don't tend to think much
about their team's well-being, this approach can suffer many of the flaws of autocratic
leadership, including causing motivation and retention problems
Transactional Leadership
This leadership style starts with the idea that team members agree to obey their
leader when they accept a job. The "transaction" usually involves the organization paying
team members in return for their effort and compliance. The leader has a right to "punish"
team members if their work doesn't meet an appropriate standard. Although this might
sound controlling and paternalistic, transactional leadership offers some benefits. For
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one, this leadership style clarifies everyone's roles and responsibilities. Another benefit is
that, because transactional leadership judges team members on performance, people who
are ambitious or who are motivated by external rewards – including compensation – often
thrive. The downside of this leadership style is that team members can do little to
improve their job satisfaction. It can feel stifling, and it can lead to high staff turnover.
Transactional leadership is really a type of management, not a true leadership style,
because the focus is on short-term tasks. It has serious limitations for knowledge-based or
creative work. However, it can be effective in other situations.
Transformational Leadership
Transformation leadership is often the best leadership style to use in business
situations. Transformational leaders are inspiring because they expect the best from
everyone on their team as well as themselves. This leads to high productivity and
engagement from everyone in their team. The downside of transformational leadership is
that while the leader's enthusiasm is passed onto the team, he or she can need to be
supported by "detail people." That's why, in many organizations, both transactional and
transformational leadership styles are useful. Transactional leaders ensure that routine
work is done reliably, while transformational leaders look after initiatives that add new
value. It's also important to use other leadership styles when necessary – this will depend
on the people leader is leading and the situation that he is in.
Theories of Leadership
Leadership theories help to explain how specific leaders are chosen and why some
succeed while others do not. The variety of these theories ranges from inborn leaders
with a perceived innate sense of command to situations that choose their own leaders,
regardless of ability. Others suggest that leadership is something that can be taught. There
is various leadership theories mentioned below
Great Man Theory
During the 19th century, the Great Man Theory of Leadership became very
popular. The theory was formulated mainly by analyzing the behaviors of mainly
military figures of the time. In the 1800s, authoritative positions were held solely by
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men and were typically passed on from father to son. Thus, it's not a coincidence that
the theory was named "Great Man Theory" as there weren't any women that were given
the opportunity to rise when the occasion presented itself. The 'great man' theory was
originally proposed by Thomas Carlyle (1840) and believed that effective leaders were
a package of Godly motivation and the right personality.
Assumptions
The leaders are born and not made and posses certain traits which were inherited
Great leaders can arise when there is a great need.
Criticism
Many of the traits cited as being important to be an effective leader are typical
masculine traits. In contemporary research, there is a significant shift in such a mentality.
Conclusion
Prompted by the great man theory of leadership, and the emerging interest in
understanding what leadership is, researchers focused on the leader - Who is a leader?
What are the distinguishing characteristics of great and effective leaders? This gave rise
to the early research efforts to the trait approach to leadership.
Trait theory of Leadership
The trait leadership theory believes that people are either born or are made with
certain qualities that will make them excel in leadership roles. That is, certain qualities
such as intelligence, sense of responsibility, creativity and other values puts anyone in the
shoes of a good leader.
The trait theory states that leaders have certain innate traits that enable them to
lead, such traits as assertiveness, dependability, persistence and adaptability etc. Ralph
Stodgill (1974), the originator of the trait theory, identified the main leadership traits and
skills mentioned below Table 1.4
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Traits Skills
Adaptable to situations Alert to social environment
Ambitious and achievement-orientated
Assertive Cooperative
Decisive Dependable
Dominant (desire to influence others)
Energetic (high activity level) Persistent
Self-confident Tolerant of stress
Willing to assume responsibility
Clever (intelligent) Conceptually skilled
Creative Diplomatic and tactful
Fluent in speaking Knowledgeable about group task
Organized (administrative ability)
Persuasive Socially skilled
McCall and Lombardo (1983), which expanded on the trait theory, argued that a
leader is made or broken based on
Emotional stability and composure: Calm, confident and predictable,
particularly when under stress.
Admitting error: Owning up to mistakes, rather than putting energy into covering
up.
Good interpersonal skills: Able to communicate and persuade others without
resort to negative or coercive tactics.
Intellectual breadth: Able to understand a wide range of areas, rather than having
a narrow (and narrow-minded) area of expertise.
Bennis (1984), a recent "neo-trait" researcher, conducted a longitudinal five-year
study of 90 of the most successful, effective leaders in the public and private sectors and he
discovered four common traits or competencies that the successful leaders shared:
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1. the management of attention: leaders manage attention through a compelling
vision that can mobilise action;
2. the management of meaning: to make their dream and visions apparent to others,
they must communicate effectively so that followers may personally enroll in the
vision;
3. the management of trust: people would much rather follow a leader they can
count on, one who is ideologically and behaviorally consistent over time, and
4. the management of self: good leaders know themselves, their strengths and skills,
and employ them effectively.
The trait theory can be applied by people at all levels in all types of organizations.
Managers can utilize the information from the theory to evaluate their position in the
organization and to assess how their position can be made stronger in the organization.
They can get an in-depth understanding of their identity and the way they will affect
others in the organization. This theory makes the manager aware of their strengths and
weaknesses and thus they get an understanding of how they can develop their leadership
qualities but this theory is criticized on many bases as there is bound to be some
subjective judgment in determining who is regarded as a ‘good’ or ‘successful’ leader.
The list of possible traits tends to be very long. More than 100 different traits of
successful leaders in various leadership positions have been identified. These descriptions
are simply generalities. There is also a disagreement over which traits are the most
important for an effective leader. The model attempts to relate physical traits such as,
height and weight, to effective leadership. Most of these factors relate to situational
factors. For example, a minimum weight and height might be necessary to perform the
tasks efficiently in a military leadership position. In business organizations, these are not
the requirements to be an effective leader.
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Conclusion
The traits approach gives rise to questions: whether leaders are born or made; and
whether leadership is an art or science. However, these are not mutually exclusive
alternatives. Leadership may be something of an art; it still requires the application of
special skills and techniques. Even if there are certain inborn qualities that make one a
good leader, these natural talents need encouragement and development. A person is not
born with self-confidence. Self-confidence is developed, honesty and integrity are a
matter of personal choice, motivation to lead comes from within the individual, and the
knowledge of business can be acquired. While cognitive ability has its origin partly in
genes, it still needs to be developed. None of these ingredients are acquired overnight.
Behavioral Theory
Behavioral theories of leadership are classified as such because they focus on the
study of specific behaviors of a leader. For behavioral theorists, a leader behavior is the
best predictor of his leadership influences and as a result, is the best determinant of his or
her leadership success.
This behavior-focused approach provides real marketing potential, as behaviors
can be conditioned in a manner that one can have a specific response to specific stimuli.
As a result, we have gone from the supposition that leaders are born (Great Man Theory)
through to the possibility that we can measure your leadership potential (Trait Theory)
via psychometrics measurements and then to the point that anyone can be made a leader
(Behavioral Theories) by teaching them the most appropriate behavioral response for any
given situation.
There are three most popular studies looked at behavioral style done at the
University of lowa, Ohio State, and the University of Michigan.
University of lowa studies
Kurt Lewin and his associates conducted studies at lowa State University that
concentrated on leadership styles ( Lewin , Lippett & White, 1939 ). They identified the
following two basis leadership styles in their studies:
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- Autocratic leadership style
The autocratic leader makes the decisions, tells employees what to do and closely
supervises workers ( Lewin, et al 1939); ( Likert ,1967).
- Democratic leadership style
The democratic leader encourages participation in decisions, works with employees
to determine what to do and does not closely supervise employees. (Lewin, et al.
1939); (Likert, 1967).
According to Likert (1967), the first studies on leadership behaviour conducted at
lowa State University by Kurt Lewin and his associates included groups of children, each
with its own designated adult leader who was instructed to act in either an autocratic or
democratic style. These experiments produced some interested findings. The groups with
autocratic leaders performed very well as long as the leader was present to supervise
them. However, group members were displeased with the autocratic style of leadership
and feelings of hostility frequently arose. The performance of groups who were assigned
democratic leaders was almost as good and these groups were characterized by positive
feeling rather than hostility. In addition, under the democratic style of leadership, group
members performed well even when the leader was absent. The participative technique
and decision-making by majority rule as used by the democratic leader served to train and
involve the group members, so that they performed well with or without the leader being
present ( Likert, 1967). These characteristics of democratic leadership may partly explain
why the empowerment of employees is a popular trend in many organizations.
This early work implied that leaders were either autocratic or democratic in their
approach. However, work done by Tannenbaum and Schmidt (1973) indicated that
leadership behavior could exist on a continuum reflecting different degrees of employee
participation. One leader might be autocratic (boss-centered), another democratic
(subordinate centered) and a third, combination of the two styles. The leadership
continuum is illustrated below
28
Figure 1.4 Leadership Continuum Model
Figure 1.3 Tannenbaum, R, and Schmidt, W. (1973). How to Choose a Leadership
Pattern. Harvard Business Review.
The boss-centered leadership style refers to the extent to which the leader takes
charge to get the work done. The leader directs subordinates by communicating clear
roles and goals, while the manager tell them what to do and how to do it as they work
towards goal achievement (Likert, 1961).
The employee-centered leadership style refers to the extent to which the leader
focuses on meeting the human needs of employees whilst building relationships. The
leader is sensitive to subordinates and communicates to develop trust, support and respect
while looking out for their welfare (Likert, 1961).
According to Tannenbaum and Schmidt (1973), the extent to which leaders
should be boss-centered or subordinate-centered depended on organizational
circumstances. Leaders should adjust their behavior to fit the circumstances. For
example, should there be a time pressure on a leader or if it takes too long for
LEADERSHIP CONTINUUM (Autocratic) (Democratic) Boss-centered Subordinate-centered Leadership Leadership Use of authority by manager Area of freedom for subordinates Manager makes Manager presents Manager presents Manager permits decision and ideas and invites problems, gets subordinates to announces it questions. suggestions, makes function within decision defined limits
29
subordinates to learn how to make decisions, the leader will tend to use an autocratic
style. When subordinates are able to readily learn decision-making skills, participative
style can be used. Also, the grater the skills difference, the more autocratic the leader’s
approach, because it is difficult to bring subordinate’s up to the leaders expertise level.
Followers may however not be as independent when the leader is autocratic (Heller &
Yukl, 1969).
Ohio State University Studies (1940)
As leadership studies that were aimed at identifying the appropriate traits didn't
yield any conclusive results, a group of people from Ohio State University developed a
list of 150 statements from their generated responses that included 1,800 hundred
statements. The list was designed to measure nine different behavioral leadership
dimensions. The resulting questionnaire is now well-known as the LBDQ or the Leaders
Behavior Description Questionnaire.
As part of the study, the LBDQ was administered to various groups of individuals
ranging from college students and their administrators, private companies including
military personnel. One of the primary purposes of the study was to identify common
leadership behaviors. After compiling and analyzing the results, the study led to the
conclusion that there were two groups of behaviors that were strongly correlated. These
were defined as Consideration (People Oriented behavioral Leaders) and Initiating
Structure (Task Oriented Leaders).
Task-oriented Leaders/Initiating Structure
The task concerned leaders are focusing their behaviors on the organizational
structure, the operating procedures and they like to keep control. Task-oriented leaders
are still concern with their staff motivation; however it's not their main concern. They
will favor behaviors that are in line with:
1. Organizing work
2. Organizing and defining relationships or roles
3. Establishing well-defined patterns of organization, channels of communication
and ways of getting jobs done.
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People-oriented Leader/Consideration
The people oriented leaders are focusing their behaviors on ensuring that the inner
needs of the people are satisfied. Thus they will seek to motivate their staff through
emphasizing the human relation. People oriented leaders still focus on the task and the
results; they just achieve them through different means. Leaders with a people focus will
have behaviors that are in line with:
1. Building friendship,
2. Mutual trust, 3. Respect
4. Openness (Northouse, 2007).
The four types of leadership behavior as described have tried to bridge the gap
between initiating structure and consideration. (Stogdill, 1957). Initiating Structure and
Consideration are two independent variables that shows four stages mentioned below
Initiating Structure
Low High
Figure: 1.5 Ohio State Leadership Theories
The leaders high on consideration showed that they developed a positive work
culture. The leaders high on initiating structure show that the leader structures their roles
and their subordinates towards attainment of goals. A high score on one dimension does
not necessarily mean low score on other dimension. The behavior of leader could be
High HIGH CONSIDERATION HIGH STRUCTURE AND AND LOW STRUCTURE HIGH CONSIDERATION LOW STRUCTURE HIGH STRUCTURE AND AND LOW CONSIDERATION LOW CONSIDERATION Low
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described as any mix of both dimensions. A number of studies support the general
findings of this theory while some studies present contradictory evidence. Despite these
differences Ohio University study has stimulated interest of layman and researchers in
studying leadership systematically.
University of Michigan Leadership Theory
The University of Michigan leadership studies (Katz and Kahn, 1952; Katz,
Maccoby, and Morse, 1950; Katz, et al., 1951) were a series of corelational studies to
examine the relationships between leadership behavior, group processes, and group
productivity. Manager effectiveness was equated with group productivity. In a summary
of these studies, Likert (1961) writes that three types of leadership behavior were found
to be good predictors of management effectiveness: task-oriented behavior, relationship-
orientated behavior, and participative leadership. Task-orientated behaviors are the same
as the initiating structures in the Ohio studies, and relationship-orientated behaviors are
similar to the consideration construct in the Ohio studies. The difference between the two
studies was that the Michigan study viewed participative leadership as separate from the
other relationship-orientated behaviors.
Leadership Grid Theory
Blake and Moutons developed a two-dimensional leadership theory called the
“Leadership Grid” that builds on the work of the Ohio State and the Michigan studies
(Blake and Mouton, 1985). Researchers rated leaders on a scale of one to nine, according
to the following two criteria: concern for people and concern for results. The scores of
these criteria were plotted on a grid with an axis for each criterion. The two-dimensional
leadership model and five major leadership styles are reflected in figure below:
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Figure 1.6 Blake, R.R & McCanse, A.A. (1991) Managerial Grid
Team management (9,9) is often considered the most effective style because
employees are encouraged to work together to accomplish tasks. Country club
management (1,9) occurs when the most emphasis is placed on people rather than on
achieving results. Authority-compliance management (9,1) occurs when operational
efficiency is the main focus. Middle-of-the-road management (5,5) reflects a moderate
degree of concern for both people and productivity. Improvised management (1,1)
indicates that little effort is made in terms of both interpersonal relationships and work
accomplishment (Blake and Mouton, 1985)
The leadership styles specified in the grid as described by Blake and McCanse
(1991) as below:
High 9
8
7
6
5
4
3
2
Low 1
1 2 3 4 5 6 7 8 9
Low High
(1,9) Country Club Management Thoughtful attention to the needs of people, leads to comfartable, friendly work enviroment
(9,1) Authority Compliance Management
Effciency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree.
(1,1) Improvished Management
Excertion of minimum effort to get the required work done as appropraite to sustain the organisation membership.
(9,9) Team Management
Interdependence through a "comman stake" in organisation propose leads to relationships of trust and respect.
(5,5) Middle of the Road Management
Adequate organisation performance is possible through balancing the necessity to get the work done while maintainnig the morale of people at a satisfactory level.
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1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude)
In this style, managers have low concern for both people and production. Managers
use this style to avoid getting into trouble. The main concern for the manager is not to
be held responsible for any mistakes, which results in less innovative decisions.
2. The country club style (1, 9). The accommodating Leader (Yield & Comply)
This style has a high concern for people and a low concern for production. Managers
using this style pay much attention to the security and comfort of the employees, in
hopes that this would increase performance. The resulting atmosphere is usually
friendly, but not necessarily that productive.
3. The produce or perish style (9, 1). The Controlling Leader (Direct & Dominate)
Contingency theory of Leadership
This believes in the authority-obedience. With a high concern for production, and a
low concern for people, managers using this style find employee needs unimportant;
they provide their employees with money and expect performance back. Managers
using this style also pressure their employees through rules and punishments to
achieve the company goals. This dictatorial style is based on Theory X of McGregor.
4. The middle-of-the-road style (5, 5). The Status – Quo Leader. (Balance &
Compromise)
Managers using this style try to balance between company goals and workers needs.
By giving some concern to both people and production, managers who use this style
hope to achieve acceptable performance but doing so gives away a bit of each
concern so that neither production nor people needs are met.
5. The team style (9, 9). The Sound / Team Leader (Contribute & Commit)
In this style, high concern is paid both to people and production. As suggested by the
propositions of Theory Y, managers choosing to use this style encourage teamwork
and commitment among employees. This method relies heavily on making employees
feel as a constructive part of the company.
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Whilst behavioral theories may help managers develop particular leadership
behaviors they give little guidance as to what constitutes effective leadership in different
situations. Indeed, most researchers today conclude that no one leadership style is right
for every manager under all circumstances. Instead, contingency-situational theories were
developed to indicate that the style to be used is contingent upon such factors as the
situation, the people, the task, the organization, and other environmental variables.
Hence, Contingency approach concludes that there is no "one best style" of
leadership under all conditions. Efficient leadership style varies with situations and an
efficient leader is one who studies the prevailing situation and finds out the leadership
style which would be most suitable for the given situation. Here, the focus is on the
situation and not on the personal qualities and behavior of a leader.
Fiedler Contingency Model
In 1951, Fiedler began to develop the first contingency leadership theory. It was
the first theory to focus on how situation variables interact with leader personality and
behavior. Fiedler believes that leadership style is a reflection of personality (trait-theory
oriented) as well as the behavior (behavioral-theory oriented) and that leadership style is
basically constant. Leaders do not change style, they change situations. To measure the
leader styles, Fiedler developed the least Preferred Coworker (LPC) scale. When the
leader scores high on the LPC, it means that the leader is relationship oriented, whereas
being low on the LPC means that the leader is task oriented (Daft, 2005). Task-oriented
leaders want to achieve goals. Relationship- oriented leaders want to develop close
relationships with their followers (Yukl, 2006).
35
Figure 1.7 Fiedler Contingency Model (1967)
Fiedler said that low LPCs are very effective at completing tasks. They're quick to
organize a group to get tasks and projects done. Relationship-building is a low priority
whereas High LPCs focus more on personal connections, and they're good at avoiding and
managing conflict. They're better able to make complex decisions.
Fiedler suggests that situations can be characterized by assessing three factors:
1. Leader-Member Relations, referring to the degree of mutual trust, respect and
confidence between the leader and the subordinates.
2. Task Structure, referring to the extent to which group tasks are clear and
structured.
3. Leader Position Power, referring to the power inherent in the leader's position
itself.
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Three Variables in the Contingency Model Table 1.5
Leader –Member Relations
Good Poor
Subordinates Atmosphere
-like leader -unfriendly
-trust leader -friction between leader / followers
-get along with leader
Followers
-no confidence in leader
-no loyalty to leader
-no attracted to leader
Task Structure High Low Task accomplishment Task accomplishment
-requirements clear -requirements vague & unclear
-few paths to achieving task -many paths to achieving tasks
-end to task clear -end to task vague
-solutions limited -many correct solutions
Leader's position power Strong Weak
Leader has authority to Leader has no authority to
-hire subordinates -hire subordinates
-fire subordinates -fire subordinates
-promote -promote
-give pay raises -give pay raises
Source : Northouse (2007). Copyright © 2007, Sage Publications, Inc.
The best LPC approach depends on a combination of three. Generally, a high
LPC approach is best when leader-member relations are poor, except when the task is
unstructured and the leader is weak, in which a low LPC style is better. According to the
theory, the task-oriented leader will be more effective in extremely favorable or
37
extremely unfavorable situations. When the situation is moderately favorable, the person-
oriented leader will be more effective.
The validity of contingency theory remains in dispute as much of the research
conducted to support it took place in the laboratory. In response to these criticisms,
Fiedler offered the cognitive resource theory of leadership.
Cognitive Resource Theory (CRT)
The cognitive resource theory is a leadership theory of industrial and
organizational psychology developed by Fred Fiedler and Joe Garcia in 1987 as a
reconceptualization of the Fiedler contingency model. The theory focuses on the
influence of the leader's intelligence and experience on his reaction to stress. The essence
of the theory is that stress is the enemy of rationality, damaging leaders' ability to think
logically and analytically. However, the leader's experience and intelligence can lessen
the influence of stress on his actions: intelligence is the main factor in low-stress
situations, whilst experience counts for more during high-stress moments. Cognitive
Resource Theory predicts that:
1. A leader's cognitive ability contributes to the performance of the team only when
the leader's approach is directive.
When leaders are better at planning and decision-making, in order for their plans
and decisions to be implemented, they need to tell people what to do, rather than hope
they agree with them. When they are not better than people in the team, then a non-
directive approach is more appropriate, for example where they facilitate an open
discussion where the ideas of team can be aired and the best approach identified and
implemented.
2. Stress affects the relationship between intelligence and decision quality.
When there is low stress, then intelligence is fully functional and makes an
optimal contribution. However, during high stress, a natural intelligence not only makes
no difference, but it may also have a negative effect. One reason for this may be that an
intelligent person seeks rational solutions, which may not be available. In such situations,
a leader who is inexperienced in 'gut feel' decisions is forced to rely on this unfamiliar
38
approach. Another possibility is that the leader retreats within him, to think hard about
the problem, leaving the group to their own devices.
3. Experience is positively related to decision quality under high stress.
When there is a high stress situation and intelligence is impaired, experience of
the same or similar situations enables the leader to react in appropriate ways without
having to think carefully about the situation. Experience of decision-making under stress
also will contribute to a better decision than trying to muddle through with brain-power
alone.
4. For simple tasks, leader intelligence and experience is irrelevant.
When subordinates are given tasks which do not need direction or support, then it
does not matter how good the leader is at making decisions, because they are easy to
make, even for subordinates, and hence do not need any further support.
Hersey-Blanchard Situational Theory
The Hersey–Blanchard situational leadership theory, is a leadership theory
conceived by Paul Hersey, a professor who wrote a well known book “Situational
Leader” and Ken Blanchard, author of the book “The One Minute Manager” while
working on the first edition of Management of Organizational Behavior. The Theory was
first introduced as "Life Cycle Theory of Leadership"(Hersey & Blanchard, 1969).
During the mid-1970s "life-cycle theory of leadership" was renamed "situational
leadership theory".
The essence of the situational leadership theory is that there is no single “best”
style of leadership. Effective leadership is task-relevant, and the most successful leaders
are those that adapt their leadership style to the Maturity i.e. (the capacity to set high but
attainable goals, willingness and ability to take responsibility for the task, and relevant
education and/or experience of an individual or a group for the task) of the individual or
group they are attempting to lead/influence. That effective leadership varies, not only
with the person or group that is being influence, but it will also depend on the task, job or
function that needs to be accomplished. (Hersey & Blanchard, 1977). The Hersey–
Blanchard situational leadership theory rests on two fundamental concepts; Leadership
39
Style and the individual or group's Maturity level. Hersey and Blanchard present these
four main leadership styles:
S1: Telling – is characterized by one-way communication in which the leader
defines the roles of the individual or group and provides the what, how, when, and
where to do the task (High-task/Low-relationship)
S2: Selling – while the leader is still providing the direction, he or she is now
using two-way communication and providing the socio emotional support that
will allow the individual or group being influenced to buy into the process. (High-
task/High-relationship)
S3: Participating – this is now shared decision making about aspects of how the
task is accomplished and the leader is providing less task behaviors while
maintaining high relationship behavior. (Low-task/High-relationship)
S4: Delegating – the leaders is still involved in decisions; however, the process
and responsibility has been passed to the individual or group. The leader stays
involved to monitor progress. (Low-task/Low-relationship)
Figure 1.8 Hersey and Blanchard Model
40
Maturity Levels
The right leadership style will depend on the person or group being led – the
follower. The Hersey-Blanchard Situational Leadership Theory identified four levels of
Maturity M1/R1 through M4/R4:
Low (M1) – They generally lack the specific skills required for the job in hand
and are unable and unwilling to do or to take responsibility for this job or task.
Low to moderate (M2) – They are still unable to take on responsibility for the
task being done; however, they are willing to work at the task.
Moderate to high (M3) – They are experienced and able to do the task but lack
the confidence to take on responsibility.
High (M4) – They are experienced at the task, and comfortable with their own
ability to do it well. They able and willing to not only do the task, but to take
responsibility for the task
According to Hersey & Blanchard (1977) employees usually start working at an
M1 maturity level requiring clear direction and close supervision. As their ability to
perform the job increases, the leader can begin to give less direction and be more
supportive to develop a working relationship with the followers. Leaders should
gradually develop their employees from M1 level to M3 or M4 over time.
Tannenbaum & Schmidt’s Leadership Continuum
Robert Tannenbaum and Warren Schmidt also developed a contingency theory in
the 1950’s ( Tannenbaum and Schmidt, 1958). They concluded that leadership behavior
is on a continuum from boss-centered to subordinate-centered leadership. Their model
focuses on who make the decisions. Tannenbaum and Schmidt (1973) identified seven
major styles from which the leader can choose. The leadership continuum model is used
to determine which one of the seven styles should be selected to suit the situation in order
to maximize performance
41
According to Tannenbaum and Schmidt (1973), the leader must consider the
following three forces or variables before choosing the best leadership style for a
particular situation.
Supervisor
The leader’s personality and preferred behavioral style, expectation, values,
background, knowledge, feeling of security and confidence in the
subordinates should be considered in selecting the leadership style. Based on
personality and behavior, some leaders tend to be more autocratic and other
more participative.
Subordinates
The leadership style preferred by followers is based on personality and
behavior. Generally, the more willing and able the followers are to participate,
the more freedom of participation should be used and vice versa.
Situation (Enviroment)
The environmental considerations such as the organization size, structure,
climate, goals and technology, are taken into consideration when selecting a
leadership style. Managers on higher levels also influence leadership styles.
For example, if a senior manager uses an autocratic leadership style, the
middle manager may tend to follow the suit.
Tannenbaum and Schmidt developed two major leadership styles (autocratic and
participative) with seven continuum styles, which reflected in a one-dimensional model.
The leadership-styles part of their theory is similar to the University of Michigan
Leadership Model, in that it is based on two major leadership styles: one focusing on job-
centered behavior (autocratic leadership) and the other focusing on employee-centered
behavior (participative leadership).
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1 2 3 4 5 6 7Leader makes decision and announces it to followers individuality or in a group without discussion (it could also be in writing).
Leaders makes decisions and sell it to followers by expalinning why it is a good idea ( it could also be in writing)
Leader presents ideas and invites follower's questions
Leader presents tentative decision subject to change
Leader presents problem, invites suggested suggestions and make the decision.
Leader defines limits and asks the followers to make a decision
Leader permits followers to make ongoing decisions with defined limits.
Participative Style
Autocratic Style
One major criticism of this model is that how to determine which style to use, and when,
is not clear in model.(Yukl, 1998).
Path Goal Theory
The Path-goal Leadership theory was developed by Robert House, based on an
early version of the theory by M.G. Evans(1970), and published in 1971 (House , 1971).
House elaborated the Evans’s theory which included the situational variables. House
attempted to explain how the behaviour of a leader influences the performance and
satisfaction of the follower’s. Unlike the earlier contingency leadership models, House’s
theory does not include leadership traits and behaviour variables (House & Aditya, 1997).
According to the Path-goal Leadership Theory, the leader is responsible for increasing
follower’s motivation to attain personal and organisational goals. Motivation can be
increased by clarifying what follower’s have to do to get rewarded, or increasing the
rewards that the follower values and desires. Path clarification means that the leader
works with the followers to help them identify and learn the behaviours that will lead to
successful task accomplishment and organisational rewards. According to House (1971),
the Path-goal Leadership Theory consists of the following factors:
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Situational factors:
Authoritarianism is the degree to which employees prefer to, and want to, be
told what to do and how to do a job.
Locus of control is the extent to which employees believe they have control
over goal achievement (internal locus of control), or goal achievement is
controlled by others (external locus of control).
Ability is the extent of the employee’s ability to perform tasks to achieve
goals.
Environmental factors:
Task structure, i.e. the extent of the repetitiveness of the job.
Formal authority, i.e. the extent of the leader’s position power.
Work group, i.e. the relationship between followers.
Leadership styles:
Based on the situational factors in the Path-goal Model, the leader can select the most
appropriate leadership style for a particular situation. The original model included only
the directive and supportive leadership styles (from the Ohio State and University of
Michigan behavioural leadership studies). House and Mitchell added the participative and
achievement-oriented leadership styles in a 1974 publication (House & Mitchell, 1974).
These leadership styles can be described as follows:
Directive
The leader provides a high degree of structure. Directive leadership is appropriate
when the followers prefer autocratic leadership, have an external locus of control,
and the skills levels of the followers are low. Directive leadership is also
appropriate when the task to be completed is complex or ambiguous and followers
are inexperienced.
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Supportive
The leader exercises a high degree of consideration. Supportive leadership is
appropriate when the followers do not desire autocratic leadership, when they
have an internal locus of control and when the follower’s skills levels are high.
Supportive leadership is also appropriate when the tasks are simple and followers
have a lot of experience.
Figure 1.9 Path Goal Leadership Theories
Participative
The leader encourages and allows follower’s input into decision-making.
Participative leadership is appropriate when followers wish to be involved, when
they have an internal locus of control and when their skills levels are high.
Participative leadership is also appropriate when the task is complex and
followers have a lot of experience.
Achievement-orientated
The leader sets difficult but achievable goals, expects followers to perform at their
highest level and rewards them for doing so. In essence, the leader provides both
strong direction (structure) and a high level of support (consideration).
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Achievement-orientated leadership is appropriate when followers are open to
autocratic leadership, when they have an external locus of control and when
ability of followers is high.
Normative Leadership Theory/Vroom-Yetton Model
The Vroom–Yetton contingency model is a situational leadership theory
developed by Victor Vroom, in collaboration with Phillip Yetton (1973) and later with
Arthur Jago (1988). The situational theory argues the best style of leadership is
contingent to the situation. This model suggests the selection a leadership style for group
decision making.
Vroom and Yetton (1973) identified five leadership styles as described below:
Two are autocratic (AI and A II), two are consultative (CI and CII), and one is group-
oriented (GII).
Autocratic Leadership Styles:
AI:
The leader makes the decision alone, using available information without input from
others.
AII:
The leader obtains information from followers but makes the decision alone. Followers
are asked only for information and not for their input into the decision.
Consultative Leadership Style:
CI:
The leader meets individually with relevant followers, explains the situation and obtains
information and ideas on the decision to be made. The leader makes the final decision
alone. The leader may or may not use the follower’s input.
CII:
The leader meets with followers as a group, explains the situation, and gets information
and ideas on the decision to be made. The leader makes the decision alone after the
meeting. Leaders may or may not use the followers input.
Group-orientated Leadership Styles:
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GII:
The leader meets with the followers as a group, explains the situation, and the decision is
made on the basis of group consensus. The leader does not attempt to influence the group
and is willing to implement any decision that has the support of the entire group. In the
absence of consensus, the leader makes the final decision based on the input of the group.
Leader Member Exchange Theory
The Leader-Member Exchange theory (shortly LMX theory) occupies a unique
position among leadership theories because of its focus on the dyadic relationship
between leader and follower. LMX theory was originally called Vertical Dyad Linkage
(VDL) theory by Dansereau, Graen & Haga in 1975. According to LMX theory, Leaders
and followers develop dyadic relationships and leaders treat each follower differently,
resulting in two groups of followers—an in-group and an out-group. Leaders choose
subordinate with certain characteristics in their groups like age, sex, personality that are
compatible with leader and or higher level of competence than out group member.
Leader-member exchange theory predicts that subordinates in ‘in group status’ will have
higher performance ratings, less turnover and greater satisfaction with the superiors.
Research to test leader member exchange has been generally very supportive. The theory
and research substantiate that leaders do differentiate among subordinates and ‘in group’
and ‘out group’ status is related to employee performance and status.
Action Centered Leadership Model
Adair’s Action Centered Leadership Model following observations of leaders and
their followers during the 1970s. Adair captured his theory in a 3 circle diagram; in which
each of the circles overlapped. The three overlapping circles illustrate that each of the
functions are interdependent. This is because individuals make up teams,
teams/individuals complete tasks and without a task there is no need for a team or
individual. If one element is missing or weak then the other elements will suffer. For
example if the team is weak then the task will suffer and one weak individual can affect
team performance and subsequently task completion. Adair said that leaders should
therefore concentrate on:
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Figure 1.10 Action-Centered Leadership Model (Adair 1973)
Task Completion (achieve the task)
Creating and sustaining a group of people that work together as a team (build and
sustain a team) and
Development of individuals within the team (develop the individual).
Adair stated that the three objectives (above) can be achieved through the
following actions. These are often referred to as leadership functions. He list eight
leadership functions:
1. Defining the task: Using SMART goals (Specific, Measurable, Achievable,
Realistic and Time-Constrained) to set a clear objective.
2. Planning: An open minded, positive and creative search for alternatives.
Contingencies should be planned for and plans should be tested.
3. Briefing: Team briefings by the leader are a basic functions and essential in order
to create the right atmosphere, foster teamwork and motivate each individual.
4. Controlling: Leaders need self control, good control systems in place and
effective delegation and monitoring skills in order to get maximum results from
minimum resources.
5. Evaluating: Assess consequences, evaluate performance, appraise and train
individuals.
6. Motivating: Adair identifies eight basic rule for motivating people. He also
created the 50:50 rule which states that 50% of motivation comes from within a
person and 50% from his environment and particularly the leadership they
encounter.
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7. Organizing: Good leaders need to be able to organize themselves, their team and
their organization.
8. Setting an example: The best leader naturally set a good example. If efforts need
to be made it will slip and a bad example is noticed more than a good example.
Reddins three dimensional model
The Reddin model is based on the two basic dimensions of leadership, which he
referred to as “task-orientation” and “relationships-orientation.” In addition, he
introduced a third dimension: “effectiveness.” i.e. Reddin uses three dimensions of task-
orientation, relationship - orientation, and the effectiveness. Effectiveness results when
the right style of leadership is applied in each particular leadership situation.
“relationships-orientation.” Reddin identified four major leadership styles on the high-
effectiveness plane and four corresponding styles on the low-effectiveness plane,
effectiveness being where the leadership style matches the demands of the situation.
Figure 1.11 Reddin’s 3-D model
a) High task and low relation, dedicated
b) High task and high relation, integrated
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c) High relation and low task the related
d) Low task and low relation separated
BASIC STYLE EFFECTIVE STYLE INEFFECTIVE STYLE
Dedicated Benevolent Autocrat Autocrat
Integrated Executive Compromise
Related Developer Missionary
Separated Bureaucrat Deserter
For example, a manager who demonstrates a high level of task-orientation and
high level of relationships-orientation is referred to as a “Benevolent Autocrat”. On the
other hand, a manager who applies low relationship-orientation and high task-oriented
behavior is simply labeled an “Autocrat”. The real breakthrough with Reddin’s 3-D
model was the concept that one can assess each situation and identify the behavior that is
most appropriate.
Factors Affecting Choice of Leadership
In an organization, choice of a leader is governed by certain forces. These are,
forces acting on the leader; forces acting on the subordinates; and forces acting on the
situation. (Tannenbaum & Warren, 1958)
Forces Acting on the Leader
In any given situation, the behavior of the leader is influenced by his own
personality: that is, leadership is perceived on the basis of his background, knowledge
and experience. The important forces affecting him are his value system; that is the
relative importance he attaches to organizational efficiency, the personal growth of his
subordinates and company profits. His confidence in his subordinates, which is
influenced by the knowledge and competence they have his own leadership inclination;
whether he can function comfortably and naturally or he is uncomfortable when operating
in a team. His feeling of security in an uncertain situation. In other words, his tolerance
for ambiguity is taken as an important variable in his dealings with problems.
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Forces Acting on Subordinates
The Leader needs a knowledge of factors, which influences his employee’s
personality. The leader may grant greater freedom to his subordinate if he is assured that,
the subordinate has a relatively high need for independence, he is ready to assume
responsibility for decision, a relatively high tolerance of ambiguity, is interested in the
problem which is important, understand and identifies himself with the goals of the
organization, has the necessary knowledge and experience to deal with problems and he
has learnt to expect that he would share in the decision making process.
Forces acting on the situation
Some aspects of a general situation affect the leader’s behavior, these are, the type
of organization for which he works, its values and traditions which are communicated
through job description, policy announcements and public statements by top executives,
the qualities of the leader. Some organizations require that their executives should be
dynamic, imaginative, decisive, and persuasive, while other place emphasis on their
ability to work effectively with people. The size of a working unit, its geographical
location and the extent of inter and intra-organizational security which is needed to attain
company goals also affect the quality and extent of employee participation and group
effectiveness. The leader should know that a group, which has a long standing, is in the
habit of working in cooperation. Moreover, the confidence which member of a group
have in their ability to solve a problem as a group is also to be born in mind.
Cohesiveness, permissiveness, mutual acceptance and a common purpose also influence
the functioning of a group. The nature of the problem itself may determine whether the
authority should be delegated to subordinates and if so to what extent. The pressure of the
time is intense, decision have to be taken quickly with a high degree of authority, if this is
not possible and subordinates may be given a share in the decision making process.
Leadership Skills
Leadership skills are the tools, behaviors and capabilities that a person needs in
order to be successful at motivating and directing others. Leadership skills involve
something more; the ability to help people grow in their own abilities. It can be said that
most successful leaders are those that drives others to achieve their own success.
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Leadership skills are sets of qualities and attributes in the personality of managers that
enable them to effectively manage the working of a firm. Good leadership skills can
create a world of difference in the efficiency and performance of the organization.
Leaders who are lack in leadership skill need to be effective today. The ability to lead
effectively is based on many key skills. For effective execution of work or policies,
leader should focus to develop such skills which make them effective. It's rightly said,
Manager/leader causes the rise or fall of organization. In the era of Globalization, it's
become difficult to handle lot of expectation from, customers, employees and external
factors. So to handle these issues, Manager should enhance his leadership skills for
organizational effectiveness. There are Six types of key leadership skills i.e.
communication skills, knowledge skills, development of people skills, client orientation
skills, achievement orientation skills and team orientation skills. If these skills are highly
cultivated in the leadership, the organization is bound to attain heights of success and
vice versa.
Communicational Skill
Communication skills means to convey ideas and information clearly and in an
appropriate manner to the employees. A Leader should be good with words, skilled at
public speaking and make strong impression when taking parts in meetings or giving
presentations. A leader should
Delivers consistent messages that reinforce the government’s/department’s
priorities.
Provides a clear sense of direction for the team and Co-workers.
Provides information and exchange of ideas in a way that promotes open and
candid communication and understanding.
Gives feedback which is specific, timely and issue-focused
Encourages open discussion of differences of opinion through impartial
questioning and clarification that is directed toward a positive outcome
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Knowledge Skill
Knowledge skill may be described as possessing knowledge and professional
competence relative to work function. Knowledge is inextricably related to the
application and implementation of problem-solving skills in organizations. It directly
influences a leader’s capacity to define complex organizational problems and to attempt
to solve them (Mumford, Zaccaro, Harding, et al., 2000). Knowledge refers to the
accumulation of information and the mental structures used to organize information. Such
a mental structure is called schema (a summary, a diagrammatic representation, or an
outline). Knowledge results from having developed an assortment of complex schemata
for learning and organizes data. A leader should possess knowledge and professional
competence relative to work function. The behavior of leader should be
Produces sound conclusions and recommendations that contribute to effective
decision making
Knows when and where to obtain assistance when faced with challenging work
problems
Continually seeks sources of information or subject matter experts to maintain
current knowledge
Analyses pertinent information to better understand its impact prior to making
decisions
Applies expertise to perform the job effectively
Works toward creating practical solutions to problems
Development of people
Development of people involves working to develop people’s contribution and
potential. It involves a genuine intent to foster the long-term learning or development of
others, including direct reports, peers, team members or other staff. The focus is on the
developmental intent and effect rather than on a formal role of training. A leader should
Positively communicates the vision/goals of the department helping others to
understand their role in achieving the business plan
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Offers suggestions that help people find solutions to their problems
Documents a specific development plan to support the achievement of
performance targets and competencies, through the performance management
process
Shares information and expertise with others to increase understanding and
informed decision making
Helps people reflect and learn from previous experiences to avoid future pitfalls,
and build on past successes
Client Orientation
Client orientation skill involves the ability to develop contacts and maintain
strong relationships Focuses one’s efforts on discovering and meeting the client’s needs,
while balancing against the government’s key business and strategic priorities. Clients
may be broadly defined, including internal “customers” or “clients”, as well as the public.
A leader should
Provides clients with timely, effective information/products and services
States candidly what can be done to meet client needs, offering innovative/
creative solutions to problems
Responds to a client’s concern and ensures that the client is aware of what actions
are being taken
Works cooperatively with other departments/agencies to meet client needs
Elicits information from clients to identify needs and set realistic expectations
Achievement Orientation
Achievement orientation involves working to achieve results and improve
individual and organizational contribution. Achievement Orientation is a concern for
working well or for surpassing a standard of excellence. The standard may be one’s own
past performance (striving for improvement); an objective measure (results orientation);
outperforming others (competitiveness); challenging goals one has set; or trying
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something new that will improve organizational results (innovation). Achievement
Orientation also involves effectively managing internal and external resources to achieve
the Government’s goals. A leader should
Organizes people and allocates tasks and responsibilities so that multiple
objectives can be accomplished simultaneously
Assumes own responsibility for developing leadership competencies and
management skills to meet individual performance targets
Inspires and encourages others to do their best by providing meaningful
constructive feedback and encouragement
Organizes own work to stay on track toward targets, keeping others informed of
progress or barriers to achievement
Sets and achieves individual performance targets aligned with the business plan
Is receptive to feedback from others on existing ideas, procedures, and policies,
seeking out creative/innovative solutions for improvement
Team Orientation
Team orientation involves the ability to work collaboratively with others to
achieve common goals, to be part of a team and work together, as opposed to working
separately or competitively. Team Orientation also includes taking the role as leader in a
team or other group. It implies a desire to lead others. Leadership is not always shown
from a position of formal authority. The “team” here should be understood broadly as any
group in which the person takes on a leadership role, including the enterprise as a whole.
“Team” is broadly defined as any task or process oriented group of individuals. A leader
must know how to build and nurture such a team. A good leader knows when to be a
leader and when to be a follower. The best leaders are good followers when that's what is
needed. Building teamwork is another essential leadership skill example. A leader should
Gives praise and recognition to team members for their achievements and
contribution
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Fosters collaboration and exchange of ideas with others from diverse
backgrounds, experiences, and functions
Proactively raises difficult issues within the team providing suggestions and
support to move forward
Actively contributes individual expertise and experience to achieve team goals
Foresees and influences change by maintaining a positive attitude to new ideas
and new ways of doing things
Leadership Ethics
All leadership is responsible for influencing followers to perform an action,
complete a task, or behave in a specific manner. Effective leaders influence process,
stimulate change in subordinate’s attitudes and values, augment followers’ self-efficacy
beliefs, and foster the internalization of the leaders’ vision by utilizing strategies of
empowerment. It is believed that the nurturing aspect of leaders can raise organizational
cultures and employee values to high levels of ethical concern. Ethical leadership requires
ethical leaders. If leaders are ethical, they can ensure that ethical practices are carried out
throughout organization.
Ethical leadership is leadership that is involved in leading in a manner that
respects the rights and dignity of others. “As leaders are by nature in a position of social
power, ethical leadership focuses on how leaders use their social power in the decisions
they make, actions they engage in and ways they influence others”. Leaders who are
ethical demonstrate a level of integrity that is important for stimulating a sense of leader
trustworthiness, which is important for followers to accept the vision of the leader. These
are critical and direct components to leading ethically. The character and integrity of the
leader provide the basis for personal characteristics that direct a leader’s ethical beliefs,
values, and decisions. Individual values and beliefs impact the ethical decisions of
leaders.
Leaders who are ethical are people-oriented, and also aware of how their
decisions impact others, and use their social power to serve the greater good instead of
self-serving interests. In ethical leadership it is important for the leader to consider how
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his or her decisions impact others. Motivating followers to put the needs or interests of
the group ahead of their own is another quality of ethical leaders. Motivating involves
engaging others in an intellectual and emotional commitment between leaders and
followers that makes both parties equally responsible in the pursuit of a common goal.
These characteristics of ethical leaders are similar to inspirational motivation, which is a
style component of transformational leadership. Inspirational motivation “involves
inspiring others to work towards the leader’s vision for the group and to be committed to
the group”. Similarly, ethical leadership “falls within the nexus of inspiring, stimulating,
and visionary leader behaviors that make up transformational and charismatic
leadership”. Ethical leaders assist followers in gaining a sense of personal competence
that allows them to be self-sufficient by encouraging and empowering the
Ethical Leadership in Organizations
In organizational communication, ethics in leadership are very important.
Business leaders must make decisions that will not only benefit them, but also they must
think about how the other people will be affected (Stansbury, 2009). The best leaders
make known their values and their ethics and preach them in their leadership style and
actions. It consists of communicating complete and accurate information, where there is a
personal, professional, ethical, or legal obligation to do so (McQueeney , 2006). When
practicing ethics, you gain the respect and admiration of employees, with the satisfaction
of knowing you did the right thing. If you never make clear what you want, and expect,
then it can cause mistrust.
For organization, the leader might want to let employees know his values right off
the bat. Such values can be teamwork, ambition, honesty, efficiency, quality,
accomplishment, and dedication.
Characteristics of ethical Leader Focus on organizational success rather than on personal ego
Ethical leaders understand their place within the larger network of constituents
and stakeholders. It is not about the leader as an individual, it is about something
bigger—the goals and dreams of the organization. Ethical leaders also recognize that
value is in the success of people in the organization.
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Find the best people and develop them
This task is fairly standard in different models of leadership. Ethical leaders pay
special attention to finding and developing the best people precisely because they see it as
a moral imperative—helping them to lead better lives that create more value for
themselves and for others. Finding the best people involves taking ethics and character
into account in the selection process.
Make tough calls while being imaginative
Ethical leaders inevitably have to make a lot of difficult decisions, from
reorienting the company’s strategy and basic value proposition to making individual
personnel decisions such as working with employees exiting the organization. Ethical
leaders do not attempt to avoid difficult decisions by using an excuse of “I’m doing this
for the business.” The ethical leader consistently unites “doing the right thing” and
“doing the right thing for the business.
Know the limits of the values and ethical principles they live
All values have limits, particular spheres in which they do not work as well as
others. The limits for certain values, for instance, may be related to the context or the
audience in which they are being used. Ethical leaders have an acute sense of the limits of
the values they live and are prepared with solid reasons to defend their chosen course of
action. Problems can arise when managers do not understand the limits of certain values.
Frame actions in ethical terms
Ethical leaders see their leadership as a fully ethical task. This entails taking
seriously the rights claims of others, considering the effects of one’s actions on others
(stakeholders), and understanding how acting or leading in a certain way will have effects
on one’s character and the character of others. There is nothing amoral about ethical
leaders, and they recognize that their own values may sometimes turn out to be a poor
guidepost.
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Principles of Ethical Leadership
Ethical Leaders Respect Others
Respect for others is a complex ethic that is similar to but goes dipper than the
kind of respect that parents teach children when they are little. Respect means that a
leader listens closely to his or her subordinates, is empathic, and is tolerant of opposing
point of view. It means treating subordinates in ways that confirm their beliefs, attitudes
and values. When a leader exhibits respect to subordinates, subordinates can feel
competent about their work. In short, leaders who show respect in fact treat others as
worthy human beings.
Ethical Leaders Serve Others
Leaders who serve are altruistic; they place their follower’s welfare foremost in
their plans. In the workplace, altruistic service behavior can be observed in activities such
as mentoring, empowerment behavior, team building and citizenship behavior, to name a
few (Kauungo & Mendonca, 1996). Ethical leaders have a responsibility to attend to
others, be of service to them and make decision pertaining to them that are beneficial and
not harmful to their welfare. Effective leaders see their own personal vision as an
important part of something larger than themselves- a part of the organization and
community at large.
Ethical Leaders are Just
Ethical leaders are concerned about issues of fairness and justice. They make it a
top priority to treat all of their subordinates in an equal manner. Justice demands that
leaders place issues of fairness at the center of their decision making. As a rule, no one
should receive special treatment or special consideration except when their particular
situation demands it. In instances where individuals are treated differently, the grounds
for differential treatment need to be clear, reasonable and based on sound moral values.
When resources and rewards or punishments are distributed to employees, the
leader plays a major role. The rules that are used and how they are applied say a great
deal about whether the leader is concerned about justice and how he or she approaches
issues of fairness.
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Ethical leaders are Honest
To be a good leader, leaders need to be honest. When leaders are not honest,
others come to see them as undependable and unreliable. People lose faith in what leader
say and stand for; their respect for leaders is diminished. As a result, the leader’s impact
is compromised because others no longer trust and believe in the leader. But being honest
is not just telling the truth. It has to do with being open with others and representing
reality as fully and completely as possible. However, this not an easy task because there
are times when telling the complete truth can be destructive or counterproductive. The
challenge for leaders is to strike a balance between being open and candid while at the
same time monitoring what is appropriate to disclose in a particular situation. It is
important for leaders to be authentic but at the same time it is essential that they be
sensitive to the attitudes and feelings of others. Honest leadership involves a wide set of
behaviors.
Ethical Leaders build Community
Leaders need to take into account their own and follower’s purposes, while
working towards goals that are suitable for both of them. An ethical leader takes into
account the purposes of everyone involved in the group and is attentive to the interests of
community and the culture. Such a leader demonstrates an ethic of caring towards others
(Gilligan, 1982) and does not force others or ignore the attentions of others. (Bass &
Steidlmeier, 1999)
Significance of the study
Leadership is the ability to help others to meet their goals .Good leadership is
required for the effective and efficient outcome. Leadership remains one of the most
relevant aspects of the organizational context. As organizations continuously improve
and evolve, the role of a leader becomes more demanding and important. Many leaders
are facing greater challenges than ever before due to increased environmental complexity
and the changing nature of organizations (Riaz & Haider, 2010). Effective leadership
leads to competitive advantage for any kind of organization (Avolio ,1999 ; Lado et al.,
1992; Rowe, 2001; Zhu et al., 2005). Leaders are conferred the opportunity to lead, not
because they are appointed by senior managers; they lead because they are perceived and
60
accepted by followers as leaders (Boseman, 2008). In fact, a leader is responsible for not
only leading but also providing followers with a sense of direction needed to accomplish
organizational goals. The success of an organization depends upon how effectively and
efficiently a leader manages and influences the subordinates to achieve the organizational
objective which in turn depends upon the role/behavior/style a leader applied in an
organization.
Leadership style is the ―relatively consistent pattern of behavior that
characterizes a leader (DuBrin, 2001). Leadership style means the ways/method through
which he influences his subordinates or followers. Different leadership style will result
different impact to organization. The leader has to choose the most effective approach of
leadership style depending on situation because leadership style is crucial for a team
success. Thus studying the leadership style in organization is essential to know the way
leaders influence and manages their subordinates in their day-to-day activities whereas
leadership skills are sets of qualities and attributes in the personality of managers that
enable them to effectively manage the working of a firm. Good leadership skills can
create a world of difference in the efficiency and performance of the organization.
Leaders who are lack in leadership skill need to be effective today. The ability to lead
effectively is based on many key skills.
For effective execution of work or policies, leader should focus to develop such
skills which make them effective. It's rightly said, Manager/leader causes the rise or fall
of organization. In the era of Globalization, it's become difficult to handle lot of
expectation from, customers, employees and external factors. So to handle these issues,
manager should enhance his leadership skills for organizational effectiveness. Thus
keeping in view the importance of leadership this research focus on the following
objectives:
To find out the Leadership Styles of Indian bank managers in Private and
Public Sector Banks.
To find out the effectiveness of Leadership Style.
To study the personal characteristics and skills of a leader.
61
To study the attitudes of employee’s towards managers at work place.
To study effect of demographic and social factors on leadership styles.
To study the leadership ethics of bank managers in private and public sector
bank
Definition of Terms
Bank: a commercial institution that keeps money in accounts for individuals or
organizations, makes loans, exchanges currencies, provides credit to businesses, and
offers other financial services. (Macesich, 2000)
Bank manager: Manager of a branch office of a Bank.(Macesich, 2000, p.80)
Employee: A person who has agreed by contract to perform specified services for
another, the employer, in exchange for money.
Leadership: ultimately about creating a way for people to contribute to making
something extraordinary happen (Kouzes and Posner 2007)
Leadership Style: Leadership style is the ―relatively consistent pattern of behavior that
characterizes a leader (DuBrin, 2001).
Autocratic leadership style: A leadership style where the leader solves the problem or
makes the decision by himself/herself using the information available at the time.
(Richard and Robert, 2009)
Democratic leadership style: a style of leadership characterized by group participation
in decision-making where the leader shares the problem with the relevant team members
as a group. (Parker, 2003)
Laissez fair leadership style: It is one in which the manager provides little or no
direction and gives employees as much freedom as possible. All authority or power is
given to the employees and they must determine goals, make decisions, and resolve
problems on their own. (Richard and Robert, 2009)
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Plan of the study
Chapter I Introduction
Chapter I deals with introduction about leadership, Nature of Leadership , Leadership and
Management, Changing Styles for the New Millennium from Management towards
Leadership, Leadership: A Concept Map , Qualities for Successful Leadership,
Leadership Characteristics, Styles of Leadership, Other Type of Leadership Style,
Theories of Leadership, Factors Affecting Choice of Leadership, Leadership skills,
Leadership Ethics, Ethical Leadership in Organisations, Characteristics of ethical Leader,
Principles of Ethical Leadership, Significance of the study, Objectives of the study, Plan
of study and Summary
Chapter II Review of Literature
This chapter includes literature, local and international studies about the topic of the
research, which was collected by reviewing different books and studies from different
university libraries. The studies done in India or in abroad bearing direct or indirect effect
on the present study has been reviewed and presented in this chapter. The review of
literature contains studies related with Leadership Styles, Characteristics of Leader,
Leadership skills and Leadership Ethics. These studies pertains to the period from 1977
to 2012
Chapter III Research Methodology
This chapter incorporates Research Methodology, Research Design, Sampling Designs,
Selection of Banks, Selection of Towns, Sampling Size, Tools of Data Collection, Scales
used in Research Study, Data Analysis Techniques, Development of Variables, Need of
Study and objectives of the study.
Chapter IV Analysis and Discussions
This chapter discusses the results of data obtained from branch managers on Leadership
Styles, Characteristics and Skills of Leaders and effect of demographic and social factors
on leadership styles and also the data obtained from employees on attitudes of
employee’s towards managers at work place and leadership ethics of branch managers. It
also discusses the effectiveness of leadership style.
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Chapter V Summary & Conclusion
This chapter incorporates the summary, conclusion & recommendations for Public banks,
recommendations for private banks. It also discusses the directions for future research.