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1. Welingkar’s Distance Learning Division
CHAPTER-15
LEADERSHIP
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2. Welingkar’s Distance Learning Division
Introduction
• Success of a business concern is dependent
upon the ability of its leadership. Whenever
and in whatever situation if someone tries to
influence the behavior of another individual,
there is a leadership. It helps to attain the
business goals of an organization.
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3. Welingkar’s Distance Learning Division
Does water flowing in a
distant mountain think
about its distance from
the ocean?
The distance between my
current position and my
desired goals is very big.
But I shall
reach my goals.
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4. Welingkar’s Distance Learning Division
Definition
• Leadership is the ability to awaken in others
the desire to follow a common objective.
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5. Welingkar’s Distance Learning Division
Importance of Leadership
Perfect Developing good
organization structure human relation
Promoting the spirit Reconciliation
of coordination of goals
Directing group Source of
activities motivation
Technologies economic
and social changes Better Avoiding Fulfilling social
utilization of imbalance responsibilities
manpower
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6. Welingkar’s Distance Learning Division
Approaches or Theories of Leadership
• According to this theory, leadership behaviouris is influenced by
certain qualities of a person. A successful leader has the following
qualities.
• Good Personality
• Tirelessness
• Ability to take quick decision
• Courage to face competitors
• Persuasion
• Lesson out of experience
• Intelligence
• Different thinking
• Reliability
• Physical fitness
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7. Welingkar’s Distance Learning Division
Behavioral approach or theory
• This theory had popularity during 1950s. It
assumes that people are lazy and irresponsible
by nature. So there is need of an instrument to
give motivation to workers.
• Autocratic, democratic or supervisory styles are
some of the leadership styles. Behavioral
approach developed these leadership styles
which produce different and conflicting results.
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8. Welingkar’s Distance Learning Division
Situationalist approach or theory
• During 1970s this theory was developed
where some traits and behaviours are
effective in a particular situation and
ineffective in another situation. Situation
helps persons to develop their leadership
qualities and emerge as leaders
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9. Welingkar’s Distance Learning Division
Follower’s theory or acceptance theory
• Here, only followers decide whether a person
is a leader or not. Followers take decision on
the quality of the leader who fulfills their
needs. Traits and behavior are not considered
as essential element of leadership. This is
mainly applied in politics.
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10. Welingkar’s Distance Learning Division
System theory or a path goal theory
• This is focused on a person’s act rather than his
traits or behavior. A leader coordinates the
efforts of his followers. This considers all
variables like leader, followers, situation,
leadership traits, environment goals and group’s
nature, characteristics and needs, role behavior
of leader. It is also termed as modern theory of
leadership.
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11. Welingkar’s Distance Learning Division
Functions of Leader
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LEADER
Integration
PlannerTaking initiative
Guide
representation
Rewards and
punishments
communication
Encouraging
others
Production
Arbitrator
and mediator

12. Welingkar’s Distance Learning Division
Qualities of Leadership
• Physical appearance and strength
• mental vigour
• emotional stability
• sense of judgment
• goodwill
• motivation
• communication skill
• guiding ability
• sociability
• technical knowledge
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13. Welingkar’s Distance Learning Division
Types of Leadership
• Autocratic leader
• Intellectual leader
• Liberal leader
• Democratic leader
• Institutional leader
• Inducing leader
• Paternal leader
• Creative leader
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14. Welingkar’s Distance Learning Division
Techniques of Leadership
• Securing cooperation
• the use of power
• coordination
• discipline
• morale
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15. Welingkar’s Distance Learning Division
Characteristics of Leadership
• There must be followers
• working relationship between leader and followers
• personal quality
• reciprocal relationship
• community of interests
• guidance
• related to a particular situation
• hard function
• power relationship
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16. Welingkar’s Distance Learning Division
Leadership Styles
• Positive style
• Negative style
• Autocratic or authoritarian style
• Democratic style
• Free-rein style
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17. Welingkar’s Distance Learning Division
Positive style
• A leader motivates followers to work hard by
offering them rewards like bonus and
incentives
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Negative style
• Leader foresees his followers to work hard
and penalize them if the work is not up to the
standard. This has high human cost. Here
everyone tries to shift responsibility over to
others.
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19. Welingkar’s Distance Learning Division
Autocratic or authoritarian style
Advantages:
• Leadership style provides strong motivation to
followers.
• Quick decision is possible.
• less talented followers can perform job
effectively
• Followers do not take any decision
• Decision making planning need no initiative
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20. Welingkar’s Distance Learning Division
Autocratic or authoritarian style
Disadvantages
• Most dislike this style as it takes negative motivation
approach.
• frustration, low morale and conflict develop easily
• New ideas and creative ideas have no scope for
application
• followers have no opportunity for development
Suitability: It is suitable to where followers are
uneducated and unskilled.
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21. Welingkar’s Distance Learning Division
Democratic style
Advantages
• Consultation give satisfaction to the followers
• due reorganization is given to the followers
• followers are aware of the activities
• leader can improve decision making ability
• followers get opportunity to show their ability
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22. Welingkar’s Distance Learning Division
Democratic style
Disadvantages
• Taking decision and implementation require
more time.
• Followers can dominate the leader
• leader can easily shift the responsibility to his
followers for failure
• it requires communicating skill on part of
leaders otherwise it may ruin the organization
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23. Welingkar’s Distance Learning Division
Free-rein style
Advantages
• Morale and job satisfied of the followers are
increased to some extent.
• The talent of the followers is properly utilized.
• The followers get full opportunity to develop
their talents.
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24. Welingkar’s Distance Learning Division
Free-rein style
Disadvantage
• The leader does not care to motivate his
followers.
• The contribution of a leader is nothing.
• The leader does not support the follower and
no guidance is available to the fanner.
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