1. i
Table of Contents
Chapter no. Title of the chapter Page No.
I
INTRODUCTION 1
I.1 Theoretical aspects of the Study 1
I.2 Importance and Relevance of the topic 3
I.3 Objectives of the Study 4
I.4 Literature Review 5
II
RESEARCH METHODOLOGY 24
II.1 Universe of the study and Data Collection 24
II.2 Primary and Secondary source of Data 25
II.3 Tools and Techniques Used 25
III
ABOUT THE ORGANISATION 29
III.1 Company Profile 29
III.2 Business Verticals 30
III.3 Existing Future Plans and Policies 32
IV
RESEARCH ANALYSIS 34
IV.1 Analysis and Findings 34
IV.2 Limitations 40
IV.3 Final Outcomes 40
V CONCLUSIONS AND RECOMMENDATIONS 41
Bibliography 45
Appendix Annexure - 1 Questionnaire (Sample)
Annexure - 2 Questionnaire (Filled)

2. ii
List of Tables
Serial No. Title Page No.
1 Stogdill Personality Traits 10
2 Master Sheet of Tabulated Data 34
Table of Graphs
Graph No. Title of Graph Page No.
I Blake-Mouton Grid 1
II Task - Relationship Graph 15
III Leadership Matrix 26
IV Pie-Charts 36
V Five styles of Leadership 44

3. 1
CHAPTER I - INTRODUCTION
I.1 Theoretical aspects of the Study :
A popular framework for thinking about a leader’s 'task versus person' orientation was
developed by Robert Blake and Jane Mouton in the early 1960s called the Managerial Grid, or
Leadership Grid, it plots the degree of 'task-centeredness' versus 'person-centeredness' and
identifies five combinations as distinct leadership styles. The treatment of task orientation and
people orientation as two independent dimensions was a major step in leadership studies. Blake
and Mouton proposed the famous managerial grid with these two dimensions, each dimension
ranging from low (1) to high (9). This describes the five styles of the leadership.
I.1.1 Balancing Task - Oriented and People - Oriented Leadership :
a. Concern for People – This is the degree to which a leader considers the needs of team
members, their interests, and areas of personal development when deciding how best to
accomplish a task.
b. Concern for Production – This is the degree to which a leader emphasizes concrete
objectives, organizational efficiency and high productivity when deciding how best to
accomplish a task.
Using the axis to plot leadership 'concerns for production' versus 'concerns for people', Blake
and Mouton defined the following five leadership styles:

4. 2
I.1.2 Five styles of Leadership :
a. Impoverished Leadership : (Low Production - Low People)
This leader is mostly ineffective. He/she has neither a high regard for creating systems
for getting the job done, nor for creating a work environment that is satisfying and
motivating. The result is disorganization, dissatisfaction and disharmony.
b. Country Club Leadership : (Low Production - High People)
This style of leader is most concerned about the needs and feelings of members of his/her
team. These people operate under the assumption that as long as team members are happy
and secure then they will work hard. What tends to result is a work environment that is
very relaxed and fun but where production suffers due to lack of direction and control.
c. Produce or Perish Leadership : (High Production - Low People)
Also known as Authoritarian or Compliance Leaders, people in this category believe that
employees are simply a means to an end. Employee needs are always secondary to the
need for efficient and productive workplaces. This type of leader is very autocratic, has
strict work rules, policies, and procedures, and views punishment as the most effective
means to motivate employees.
d. Middle-of-the-Road Leadership : (Medium Production - Medium People)
This style seems to be a balance of the two competing concerns, and it may at first appear
to be an ideal compromise. Then the problem originates, though: When you compromise,
you necessarily give away a bit of each concern, so that neither production nor people
needs are fully met. Leaders who use this style settle for average performance and often
believe that this is the most anyone can expect.
e. Team Leadership : (High Production - High People)
According to the Blake-Mouton model, this is the best managerial style. These leaders
stress production needs and the needs of the people equally highly. The premise here is
that employees understand the organizations purpose and are involved in determining
production needs. When employees are committed to, and have a stake in the
organization’s success, their needs and production needs coincide. This creates a team
environment based on trust and respect, which leads to high satisfaction and motivation
and, as a result, high production.
This report involves a survey in the Management and the Function/Line heads of the GRASIM
Industries (Aditya Birla Group), Nagda , Madhya Pradesh and find out the leadership style which
prevails in the organization and also the importance of Emotional Intelligence in Leadership.
This study is to put into perspective the level of awareness and satisfaction from the employees

5. 3
point of view in front of the management and to help them understand what more can be done in
the various fields.
I.2. Importance and Relevance of the topic :
I.2.1 Importance :
Leadership is an extremely popular topic in organizational behaviour because of the role we
assume it plays in group and organizational effectiveness. We assume that the success of a group
depends primarily on the quality of leadership. To have a winning season requires a good coach;
to achieve a military victory requires a good commander; and to have a productive work group
requires a supervisor. Whether they deserve it or not, leaders are usually credited for the group’s
success and blamed for the group’s failure. When a team has a losing season, instead of firing the
team, the coach is fired. Although leadership is similar to management, there is a clear
difference between these topics. For managers to be effective, they need to be good leaders.
However, not all leaders are good managers. Leadership is more narrowly defined; it refers to
influencing the behaviour of others. Not all acts of influence, however, are necessarily acts of
leadership. There are important differences, for example, between leadership and the exercise of
power described in this report.
I.2.2 Relevance :
Good leadership is essential to business, to government and to the numerous groups and
organizations that shape the way we live, work and play. Leadership is an important factor for
making an organization successful. Here we are concerned with the manager as a leader.
Leadership transforms potential into reality. They are a key human resource in any organization.
We generally think of companies competing by means of their products, but they probably
compete more by means of their leaders than their products. Better leaders develop better
employees and the two together develop better products.
The importance of leadership in management cannot be over emphasized. To get things done by
people, management must supply leadership in the organization. Team-work is essential for
realizing organizational goals. Managers must influence the team for work accomplishment
through leadership.
There are limits to the use of authority in obtaining high performance amongst subordinates.
Authority alone cannot generate a favourable attitude for improved performance. Because of its
main reliance on influence, leadership is essential for obtaining successful work
accomplishment. If the management fails to provide able and prominent leadership which best
fits the organizational culture and climate, informal leadership will develop which will
eventually regulate the behavior of the employees and may come into conflict with managerial
leadership. If management cannot provide leadership, people will be forced to rely on informal

6. 4
leadership. Lastly, management is transformed into a social process through leadership action. It
is the social skill of leadership which accomplishes organizational goals by utilizing the potential
of the people.
The Blake Mouton Managerial Grid is a practical and useful framework that helps us think about
our leadership style. By plotting ‘concern for production’ against ‘concern for people’, the grid
highlights how placing too much emphasis in one area at the expense of the other leads to low
overall productivity.
The model proposes that when both people and production concerns are high, employee
engagement and productivity increases accordingly. This is often true, and it follows the ideas of
Theories X and Y, and other participative management theories.
While the grid does not entirely address the complexity of “Which leadership style is best?” It
certainly provides an excellent starting point for thinking about the performance and improving
the general leadership skills.
I.3 Objectives of the Study :
To understand and to extract the work culture exercised with a view of the leadership style which
prevails in the GRASIM Industries. Also, to learn and understand the management-employee
relationship with respect to concern for people and concern for production. This study was to put
forward the leadership style being practiced in the organization according to the Blake and
Mouton Leadership Model and to give rise to the element of Emotional Intelligence in
Leadership. With the help of this survey and data gathered from the respondents through a
framed questionnaire, suggestions (if any) can be provided to the management for the room of
improvement.
I.3.1 Main focus is on the following parameters :
a. Emphasis on goal and task
b. Empowering and De-centralization
c. Creativity and innovation
d. Emotional Intelligence
e. Job satisfaction
f. Accountability
g. Rewards
h. Management-Employee relationship
i. Time management
j. Openness
k. Simplicity
l. Transparency within organization

7. 5
m. Team building
n. Challenging work place
o. Empathy towards the employees
p. Encouragement
q. Counseling
r. Situational Leadership
I.3.2 After the study on this topic I should be able to :
a. Explain the difference between management and leadership and identify some of the
major personal traits associated with leadership.
b. Explain the limitations of using personal traits to understand leadership.
c. Identify and describe the major leadership behaviors that occur within a group.
d. Identify some of the major situational factors influencing leadership and explain how
they influence group performance.
e. List and describe the major variables that determine the appropriate leadership style.
f. Explain some of the strategies for improving leadership effectiveness.
g. Explain the importance of Emotional Intelligence in Situational Leadership.
I.4 - Literature Review :
Overall Reflection on Leadership : The word “leadership’ has been used in at least three
different ways. Occasionally it refers to a position within an organization, e.g., “We are inviting
all of the leadership to attend the seminar. "Leadership" has also been used to describe a
personality characteristic, e.g.. 'Our new supervisor doesn’t have as much leadership as our
previous one.'
Although leaders may use force or coercion to influence the behavior of followers, leaders by our
definition use their ability to induce voluntary committee. By this definition, anyone in the
organization can be a leader, whether or not that individual is formally identified as such. Indeed,
informal leaders are extremely important to the effectiveness of most organizations.
An important distinction is made by some between leadership and management. To manage
means to direct, to bring about to accomplish, and to have responsibility for. The functions of
management are planning, organizing, directing, and controlling. The successful manager is
viewed as someone who achieves results by following the prescribed activities and by
maintaining behaviors and products within prescribed limits. To lead, however, 'is to inspire', 'to
influence', and 'to motivate'. Effective leaders inspire others to pursue excellence, to extend
themselves and to go beyond their perform job requirements by generating creative ideas. It has

8. 6
been said that managers are people who do things right and leaders are people who do the right
thing. This distinction is somewhat overstated, since effective leaders do a lot of managing and
effective managers need to lead. But it serves to emphasize an Important organizational outcome;
the creation of an energetic and highly committed work force that is successfully adapting to the
demands of a changing environment and competently producing a viable product or service.
Need for Leadership : Why is leadership necessary? Most organizations are highly structured
and have relatively clear lines of authority, stated objectives, and momentum to carry them
forward. Why, then, is there a need for incremental influence beyond the routine directives and
formal job requirements? Four reasons have been proposed to explain the need for ongoing
leadership.
a. Incomplete organizational structure : The first reason why leadership is necessary is
because there is a degree of incompleteness in every organization design. Social
organizations cannot be designed to be like machines, which are simply turned on and
allowed to run untouched. Leaders are needed to structuring the tasks, decide who should
do what, and delegate work assignments, level. Leaders help the people they lead to
accomplish their collective goals.
b. External change : The second reason why leadership is necessary is because the
organization exists in a changing environment. As the external environment changes,
leaders are needed to identify the strategic mission of the organization and help it adapt to
its changing environment.
c. Internal change : The third reason for leadership stems from the dynamics of internal
change in the organization. Leadership is needed to coordinate the efforts of diverse
organizational units, particularly during periods of rapid growth or decline. Leadership is
necessary to solve internal conflicts and settle differences of opinion.
d. Motivate and inspire : The fourth reason why organizations require leadership stems
from the need to motivate people and maintain their involvement in the organization.
Individuals are not permanent fixtures within the organisation. Instead, they come and go,
and when they are present, their needs and Intel interests change. Effective leadership
provides meaning and purpose by creating a vision of where the organization is going.
This ability to inspire and motivate others and transform them into committed
contributors to the organisation is the function of leadership that has captured the interest
of philosophers and scholars and propelled the study of leadership. (Ashwathapa, 2013)
Patterns of Organizational Leadership : The type of influence required for effective leadership
is not the same for all leaders. Depending on their level in the organization, different cognitive
and affective skills are required of leaders. Three basic leadership roles have been identified:
'origination', 'interpolation', and 'administration'.

9. 7
a. Origination : It refers to strategic decision making regarding policy formulation or
structural change. These critical decisions determine the culture and mission of the
organization.
b. Interpolation : It refers to interpreting strategic decisions and designing a method for
implementing them within the organisation. Interpolation includes adapting or
supplementing the present structure to new policy directives,
c. Administration : It consists of implementing the policies and procedures that have been
provided to keep the organization operating efficiently.
These three types of Leadership are typically performed at different levels in the organization
and require different abilities and skills. The origination of new programs and policies, which
may involve a change in the organization’s structure or a reinterpretation of the organisation’s
mission, occurs at the top level of the organization. Individuals at this level must have an
understanding of the entire organization and of the ways it interacts with the external
environment. Top-level managers symbolize the organization and what it stands for.
Interpolation - interpreting policy decisions and applying them to the existing organization is
typically done by intermediate-level managers. Middle-level managers must maintain a two-way
orientation by taking directives from hose above and accommodating them for people below.
Lower-level supervisors administer the policies and procedures of the organization. Successful
supervisors need to possess both technical knowledge and a clear understanding of the
organization’s rules. Lower-level supervisors must be concerned with equity and with the
administration of rewards and punishments, since they continually deal with these issues in
leading others, contingency theories of leadership. Leadership plays an essential role in
organizational dynamics and often makes the difference between effective and ineffective
organizations. As defined earlier, leadership occurs when one person influences others to do
something of their own volition they would not ordinarily do. Leadership is an essential
organizational process and, like other processes it can be studied on three different levels - 'the
individual', 'the group', and 'the organisation'.
At the individual level of analysis, leadership studies have focused on the traits of successful
leaders, At the group level, leadership studies have focused on leadership behaviors of both
formal and informal leaders. The organizational level of analysis has examined how
organizational effectiveness is determined by the interaction between the leader, the follower,
and the situation. These studies have given rise to situational leadership theories or contingency
theories of leadership. Each level will be analyzed separately, beginning with leadership traits.
(Pareek, 2013)
In Search of Leadership : Although early writers attempted to describe the characteristics of
effective leaders, systematic investigations of leadership traits first began after the turn of the
century. World War I highlighted the need for selecting and training effective leaders, and for the

10. 8
quarter century between World War l and World War II, numerous studies investigated the
personal traits of good leaders. These studies are generally referred to as trait studies, since their
primary goal was to identify the traits and personal characteristics of effective leaders.
A variety of methods were used to study leadership traits, and this variety is probably one reason
why the results were so inconsistent. Most studies compared effective leaders with ineffective
leaders or leaders with non-leaders. The studies were inconsistent in the methods used to identify
leaders Some were identified by outside observers, some were selected by the group via
nominations or voting, others were named by qualified observers such as teachers, and some
were selected because they occupied a position of leadership such as student-body president or
team captain. The studies were also inconsistent -the way they measured traits. In some studies
the traits were measured b psychological tests; other studies relied on observers to identify the
traits they saw; and some studies relied on the individuals to report their own character traits.
In general, the trait studies were quite disappointing, especially to researchers who had hoped to
develop a measure of leadership that predicted leader effectiveness as accurately as intelligence
tests predicted problem solving ability. Because of weak results, the focus of leadership research
shifted from trait studies to contingency studies, which examined more than just the traits of the
leader.
Research on leadership traits should not be dismissed too quickly, however. Although the traits
studies were disappointing, they were not worthless.
Several traits produced a significant difference in leadership effectiveness, but they did not act
alone. Instead, they interacted with other situational variables to influence leader effectiveness,
Four major reviews have surveyed the trait studies, and the results can be summarized according
to physical traits, intelligence, and personality traits.
Physical Traits : Trait studies examined such physical factors as height, weight, physique,
energy, health, and appearance. To the extent that anything can be concluded regarding the
relationship between these factors and leadership, it appears that the leaders tend to be slightly
taller and heavier, have better health, a superior physique, a higher rate of energy output, and a
more attractive appearance.
To illustrate, one of the early studies on the effects of height found that executives in insurance
companies were taller than policyholders, that bishops were taller than clergymen, that university
presidents were taller than college presidents, that sales managers were taller than sales
representatives, and that railway presidents were taller than station agents. Results of this sort,
how-ever, have not always been consistent. While one literature review found nine studies
showing that leaders tend to be taller, it reported two studies showing that leaders tended to be
shorter. Attractiveness and a pleasant appearance found to be highly correlated with leaders
among Boy Scouts: but among groups of delinquent youth, leaders were rated as more slovenly
and unkempt.

11. 9
Intelligence : Numerous studies have investigated the relationship between leadership and
general intelligence, and they generally agree that leaders are more intelligent than non-leaders.
The relationship between intelligence and leadership probably stems from the fact that so many
leadership functions depend upon careful problem solving. All three leadership roles -
'origination', 'interpolation', and 'administration' require significant mental ability.
An interesting conclusion coming from this study is the suggestion that leaders should be more
intelligent than the group but not by too wide a margin. Members who are significantly brighter
than other group members are seldom selected as leaders. Because of their superior intellect,
other group members tend to reject them; they are too different from and out of touch with the
rest of the group. Individuals with high IQ's tend to have different vocabularies, interacts, and
goals, which create communication and interpersonal relations problems.
Leadership effectiveness also appears to be related to two other variables closely associated with
intelligence: scholarship and knowledge. Leaders generally excel scholastically and receive
better than average grades. General information, practical knowledge, and simply knowing how
to get things done appears to be important for effective leadership, and several studies have
shown a positive relationship between general knowledge and leadership ability.
Personality Traits : Studies of the relationship between leadership and personality traits have
examined a lengthy list of factors. Unfortunately, most of the results have been inconsistent and
even contradictory. Only a limited number of personality traits appear to be related to leadership,
and most of these relationships are not especially strong. A list of the personality traits most
frequently associated with leadership are lead shown in table below. This list is based upon the
1948 review by Ralph Stogdill were of 124 studies of leadership traits. This list suggests that the
average leader is use a more social, displays greater initiative, is more persistent, knows how to
get things done, is more self-confident, displays greater cooperativeness and adaptability, and
possesses greater verbal skills to facilitate communication. Studies examining personality
integration or emotional adjustment consistently found that leaders were more emotionally
mature than non-leaders. Rather consistent. The support was also found for the relationship
between leadership and self-confidence or self-esteem. Indeed, the relationship between self-
confidence and leadership generally produced some of the highest correlations of any of the
personality traits tested Consequently, it is not correct to conclude that personal characteristics
are unrelated to leadership; there are indeed some relationships, but they are more complex than
they first appear to be. (Stogdill, Leadership, 2012)
After four major reviews of the trait studies, researchers concluded that the effective leadership
does not depend solely upon a combination of personality the traits. Situational variables were
also important: they frequently determined of whether a personality characteristic was positively
or negatively associated with effective leadership. Each review concluded that leadership must
be examined as an interaction of three variables: characteristics of the leader, characteristics of
the subordinate, and the nature of the task.

12. 10
Capacity Achievements Responsibility Participation Status
Intelligence Scholarship Dependability Activity Socioeconomic
position
Alertness Knowledge Initiative Sociability Popularity
Verbal facility Athletic
accomplishment
Persistence Cooperation
Originality Personality
adjustment
Aggressiveness Adaptability
Judgment Self-Confidence Humor
Desire to Excel
(Stogdill, Leadership, 2012)
While the trait studies focused on individual leaders, another line of research examined leader
behaviors within the context of a group and attempted to describe what leaders actually do.
These studies essentially asked whether certain ways of behaving were more effective than
others: How do effective readers behave differently from other group members? Most of these
studies occurred during the l940s and 50s.
Various styles of leadership were defined as a result of these studies of leader behaviors. One of
the earlier studies compared three leadership styles: authoritarian democratic and laissez-faire.
Perhaps the best research on styles of leadership, however, occurred simultaneously at The Ohio
State University and the University of Michigan. At each university, researchers identified two
leader behaviors that were essentially similar, even though both investigations were conducted
independently. These two dimensions of leadership have been to form an instrument, called the
Managerial Grid, that has been used for research and training.
Authoritarian, Democratic, and Laissez-faire Leadership : The contrasting political systems
in the United States and Germany preceding World War II inspired one of the early classic
studies of leadership that compared the effects of three leadership styles: 'authoritarian',
'democratic', and 'laissez-faire'. This study involved groups of ten-year-old boys who were
organised in groups of five. Each group met regularly after school to engage in hobbies and other
activities under the direction of a leader who adopted one of the three styles of leadership. Every
six weeks the leaders were rotated among the groups so that each group experienced each type of

13. 11
leadership. The leaders of these groups, who were graduate students in social psychology, were
trained to lead the boys using one of three leadership styles. Under the democratic style of
leadership, group decisions were made by majority vote in which equal participation was
encouraged and criticism and punishment were minimal. Under the autocratic leader, all
decisions were made by the leader and the boys were required to follow prescribed procedures
under strict discipline. Under the laissez-faire leader, the actual leadership was minimized and
the boys were allowed to work and play essentially without supervision.
During the eight weeks of this study, the performance of the workers were observed in order to
assess the effects of the three leadership styles. Under democratic leadership, the groups were
more satisfied and functioned in the most orderly and positive manner. Aggressive acts were
observed most frequently under the autocratic leadership. The effects of the leadership styles on
productivity were somewhat mixed, although actual objective measures of productivity were not
obtained. Under autocratic leadership the groups spent more time in productive work activity and
had more work-related conversations. However, the autocratic groups appeared to be more
productive Only when the leader was present. When the leader left the room, the amount of
work-related activity dropped drastically.
Other studies have also shown that democratic leadership styles are not always the most
productive. In fact, some studies have found that both the satisfaction and the productivity of
group members is higher under directive leaders than democratic leaders. For example a study of
488 managers in a consumer loan company found that employees who had high authoritarianism
scores (high acceptance of strong authority relationships) were more satisfied and productive
when they worked for supervisors who had little tolerance for freedom. Greater satisfaction with
an authoritarian leader was also found in another study of over 1,000 workers. This study found
that employees who worked independently but were required to have frequent interaction with
their superior preferred and were more satisfied with an autocratic leader. Some examples of
such employees are fire fighters, police officers, and administrative aides. (Pareek, 2013)
Initiating Structure and Consideration : This project involved a series of studies that also
produced a two-factor theory of leader behavior. The two leadership factors were referred to as
initiating structure and consideration. Initiating structure consisted of leadership behaviors
associated with organizing and defining the work, the work relationships, and the goals. A leader
who initiated structure was described as one who assigned people to particular tasks, expected
workers to follow standard routines, and emphasized meeting deadlines. The factor of
consideration involved leader behaviors that showed friendship, mutual trust, warmth, and
concern for subordinates. These two factors were identified by administering questionnaires
containing numerous descriptions of leader behaviors and combining the items that seemed to
measure the same dimension, through a statistical technique called 'factor analysis'. After the
data from many employees had been collected and analyzed, I concluded that the responses were
measuring just two factors: initiating structure and consideration.

14. 12
The research indicates that initiating structure and consideration are separate and independent
dimensions of leadership behavior. Therefore, a leader could be high on both dimensions, low on
both dimensions, or high on one and low on the other. Since both factors were considered
important dimensions of leadership, the early studies assumed that the most effective leaders
were high on both dimensions.
After extensive research it can now be concluded that the most effective leaders are not always
high on both initiating structure and consideration. Although most studies show that leadership
effectiveness is associated with high scores on both dimensions occasionally other combinations
have produced the highest levels of satisfaction and performance, such as being high on one
scale and low on the other or being at moderate levels on both dimensions.
Production-Centered and Employee - Centered Leader Behaviours : Studies on the
relationship between production-centered and employee centered behaviors also found them to
be independent dimensions of leadership. A review of 38 managers dispelled a popular myth
which suggested that supervisors focused on either production or employees, and to the extent
they focused on one, they were necessarily disinterested in the other. The study indicated instead
that supervisors can be interested in both production and employees. Therefore, a leader who has
a strong production orientation is not necessarily disinterested in the employees. Knowing an
individual’s orientation on one leader dimension says nothing about that person’s orientation on
the other.
Managerial Grid : A conceptual framework combining a concern for task accomplishment and
a concern for people was created by Robert Blake and Jane Mouton called the Managerial Grid.-
An illustration of the Managerial Grid is shown in the Graph Managerial Grid. The concern for
production dimension is measured on a nine-point scale and represented along the horizontal
dimension, while the vertical dimension measures an individual’s concern for people, again
using a nine-point scale. Blake and Mouton assume that the most effective leadership style is a
9,9 style, demonstrating both concern for production and concern for people. By responding to a
questionnaire developed by Blake and Mouton, individuals can place themselves in one of the
eighty-one cells on the managerial grid.
Five different grid positions are typically used to illustrate different leadership styles. A 9,1
leader is primarily concerned with production and task accomplishment and unconcerned about
people; This person wants-to get the job - -done and wants a schedule followed at all costs. The
1,9 leadership style reflects a maximum concern for people with minimum concern for
production. This individual is not concerned whether the group a small produces anything, but is
highly concerned about the members’ personal needs, interests and inter-personal relationships.
The 1,1 leadership style reflects minimal concern for both production and people and is
characteristic of a person who essentially abdicates the leadership role. The 5,5 leadership style
reflects a moderate concern for both people and production, while the 9,9 leadership style

15. 13
reflects a maximum concern for both production and people. A 9,9 leader wants to meet
schedules and get the job done but at the same time is highly concerned about the feelings and
interests of the group members.
The Managerial Grid is popular among managers, and they have used it rather extensively to
assess their leadership style as part of a training program designed to move them to the 9,9 style.
In spite of its popularity, however, the usefulness of the Managerial Grid has not been
consistently supported by research. Most of the available research consists of case analyses
which have been loosely interpreted to support it. However, empirical research has failed to
show that a 9,9 leadership style is universally superior. The demands of the situation, the
expectations of other group members, and the nature of the work being performed interact in
complex ways that call for a variety of leadership styles. Consequently the 9,9 leadership style is
not always the most effective. Although the research has not shown that one leadership style is
universally superior, this research helps to identify the important leadership roles that occur
within a group. Rather than thinking of leadership strictly in terms of the behavior of the formal
leader, it is helpful to think of leadership as leadership roles performed within a group. Thinking
of leadership this way implies that leadership consists of leader behaviors performed by any
group members, whether they are formally appointed as leaders or not.
The two major leadership roles, initiating structure and consideration are similar to the work
roles and maintenance roles described. These two roles are necessary for a group to be effective
and can be performed either by the formally appointed leader or by other group members. If a
task is already highly structured, or if other group members are adequately structuring the task,
then efforts by the leader to add additional structure are unnecessary and ineffective. Likewise,
the maintenance role of showing consideration and concern for group members may be
performed by other group members thereby eliminating the need for the formal leader to perform
this role. In summarizing research on consideration and initiating structure, one review
concluded that when the formally appointed leaders fail to perform either of these leader
behaviors, an informal leader will emerge and perform them if it is necessary for success and if
the group desires success.
Situational Leadership : In analyzing leadership at the organizational level of analysis, the
effectiveness of the different leadership styles must be combined with different organisational
factors to assess their effect effectiveness. At this level of analysis, the study of leadership has
given rise to contingency theories of leadership or situational leadership theories. Four
situational leadership theories have received the primary attention: Paul Hersey’s and Ken
Blanchard’s situational leadership model, Fred Fiedler’s contingency theory of leadership,
Robert Houses path-goal theory of leadership, and Victor Vroom and Philip Yetton’s normative
decision-making model of leadership.

16. 14
Situational Leadership Model : Paul Hersey and Ken Blanchard developed a situational
leadership model that combined three variables:
a. the amount of guidance and direction (task behavior) a leader gives;
b. the amount of emotional support (relationship behavior) a leader provides; and
c. the readiness level (maturity) that followers exhibit in performing a specific task
or function.
The focus of this model is the relationship between the leaders and followers, and the maturity of
the followers is viewed as the most important situational variable influencing loader behaviors.
Maturity is defined as the ability and willingness of people to take responsibility for directing
their own behavior as it relates to the specific task being performed. An individual or group may
demonstrate maturity on some tasks and immaturity on others. Effective leadership requires that
the leader’s task behaviors and relationship behaviors must change to match the maturity of the
group.
The maturity of followers varies along a continuum and is determined by two components: job
maturity (ability) and psychological maturity (willingness). Job maturity refers to the ability to
do something and is a function of the follower’s knowledge and skills. Psychological maturity
refers to the willingness or motivation to do something and is a function of the followers
commitment and confidence. The appropriate combination of task and relationship behaviors for
different levels of follower maturity are shown in Exhibit. The bell-shaped curve is called a
“prescriptive” curve because it shows the appropriate leadership style directly above the
corresponding level of maturity. Four potential leadership styles are created by combining
different amounts of task and relationship behaviors. (Robbins, 2012)
Insight for Managers : Research on leadership behaviors has identified two essential roles that
leaders fill. One role consists of Leader activities that focus on task accomplishment and includes
such behaviors as identifying the task at hand, deciding boy, it should be done, setting goals and
objectives, delegating assignments, providing feedback, and supervising performance.
The other role consists of leader behaviors that focus on interpersonal relationships and includes
such behaviors as creating a vision of the organization, communicating that vision to each
member, inspiring and motivating people, evaluating and rewarding performance, providing
personal support and encouragement, and creating a friendly atmosphere.
These two roles represent essential functions of a successful group; both the task structuring
activities and the interpersonal relationship activities must be performed by someone. It is
possible For the appointed leader to perform both functions, but other group members can also
perform either or both functions.

17. 15
Effective group leaders are probably those who can sense which leadership roles are not being
adequately performed and either perform themselves or delegate then, to other group members.
Although these leadership roles are important to the effective functioning of a group, they do not
necessarily need to be performed by the formally appointed leader. Indeed the most effective
groups may occur ‘when the leadership roles are widely shared by many group members.
(Robbins, 2012)
a. Telling - Provide specific instructions and closely supervise performance. This style is
suited for followers of low maturity who are unable and unwilling.
b. Selling - Explain your decisions and provide opportunity for clarification. This style is
appropriate for followers who are willing but unable.
High Relationship and Low Task
Participating
S3
S4
Delegating
High Task and High Relationship
Selling
S2
S1
Telling
Low Relationship and Low Task High Task and Low Relationship

18. 16
c. Participating - Share ideas and facilitate in making decisions. This style is suited for
followers who are able but unwilling.
d. Delegating - Turn over responsibility for decisions and implementation. This style is
appropriate for followers who are able and willing.
Hersey and Blanchard have developed instruments for measuring maturity to determine the
appropriate leadership style, and they have applied their teacher-student relationships and parent-
child relationships. Support for their theory is provided by the experiences of managers who
have used it and a small number of research studies. They also have used this model to
reinterpret and understand the inconsistent findings in other leadership studies.
Contingency Theory of Leadership : The most popular and extensively researched situational
theory of leadership was first proposed by Fred Fiedler during the 1960s. Fiedler’s model claims
that group performance depends on the interaction of the leader style and the favourableness of
the situation. Fiedlers major contributions consist of :
a. Identifying the leadership orientation of the leader and developing a way to measure it,
and
b. Identifying three situational factors influencing leadership and developing a method of
measuring them. (Pareek, 2013)
Relationship-oriented versus Task-oriented : Leadership orientation is measured by the Least
Preferred Co-worker (LPC) scale. Individuals are asked to think of a person with whom they
have worked who they least preferred as a co-worker, and describe this person using sixteen
scales. When the responses arc summed, an individual with a favourable description of the least
preferred co-worker would have a high LPC score, suggesting a relationship-oriented leader. An
unfavourable description of the least preferred co-worker would result in a low score, suggesting
a task-oriented leader.
Difficulty in interpreting the LPC scores has been a problem for Fiedler’s contingency theory.
The LPC scale is not related to any of the well-known personality measures. In spite of
uncertainty about what exactly it measures, however, the evidence indicates that it is a reliable
measure of something, and Fiedler concludes that “there can be little doubt that we are dealing
with a very important aspect of personality.” A review of 25 years of research using the LPC
scale concluded that high LPC leaders are primarily relationship-oriented while low LPC leaders
are primarily task-oriented consistent with Fiedler's claims.’ In general, a low LPC leader is
more directive, more structuring, more goal-oriented, and more concerned with efficiency. A
high LPC leader is more considerate, more human relations oriented, more participative, and
more sensitive to the feelings of others. (Ashwathapa, 2013)

19. 17
Situational favourableness: Fiedler’s model claims that whether a high LPC leader or low LPC
leader will be more effective depends upon the favourableness of the situation. In some
situations, a high LPC leader is most effective, while a unenthusiastic low LPC leader is more
effective in other situations. Fiedler claimed that the favourableness of the situation is
determined by three variables:
a. Whether the relationships between the leader and the members are good or poor.
b. Whether the task is relatively structured or unstructured.
c. Whether the power position of the leader is relatively strong or weak.
In studies testing the model, Fiedler and his colleagues developed instruments to measure each of
these three situational variables. Of the three situational variables, the leader-member relations
variable was considered to be the most important for determining the favourableness of the
situation. Leader-member relations were measured using a simple questionnaire with ten scales
on which the leader was asked to describe the group. This instrument was called a “group
atmosphere scale”.
The second most important situational variable was the task structure which was evaluated by
judges who examined four aspects of the task structure.
a. Goal clarity : The degree to which the requirements of the job are clearly stated and
known by the people performing then,
b. Goal-path multiplicity : The degree to which the problems encounter in the job can be
solved by a variety of procedures.
c. Decision verifiability : The degree to which the correctness of the solutions or decisions
can be demonstrated and ascertained.
d. Decision specificity : The degree to which there is generally more than one correct
solution involved in performing the task.
In a highly structured task, goals are very clear, there is only one correct procedure for
performing the task, the correctness of the decisions can be immediately verified, and there is
only one correct solution. Obviously, a highly structured task does not require leaders to provide
additional structure.
The third situational variable was the power position of the leader. This factor was measured by
a series of questions asking whether the leaders could recommend rewards or promotions,
whether they could assign tasks and evaluate performance, and whether they had been given
official titles by the organization to differentiate them from subordinates.
By determining whether a group is high or low on each of the three situational factors, Fiedler
classified each group into one of eight categories, which ranged along a scale from extremely
favourable situations to extremely unfavourable situations for the leader. A highly favourable
situation consisted of good leader-member relations, a highly structured task, and a strong power

20. 18
position, as illustrated in Exhibit. On the other hand, an extremely unfavourable situation existed
when the leader-member relations were poor, the task was unstructured, and the leader possessed
a weak power position. (Stogdill, Leadership, 2012)
Group effectiveness : Fiedler examined the relationship between the leaders' LPC score and the
effectiveness of the group in a variety of situations. The results indicated that a high LPC leader
was most effective when the situation was moderately favourable. If the situation was extremely
favourable or unfavourable, however, the low LPC leaders tended to have the most effective
groups.
Although these results may look rather complex and difficult to understand, they seem plausible
after a brief consideration. Relationship-oriented leaders (high LPC) tend to excel in situations
of intermediate favourableness' where concern for the group members is apparently a necessary
prerequisite for motivating them to perform well. In these situations, people want to have
leaders who care about them. Task-oriented leaders (low LPC), however, are more effective
when the situation is either very favourable or very unfavourable. In a highly favourable
situation, the personal needs of members are apparently already satisfied and what is needed is a
task-oriented leader to get the job done. In an extremely unfavourable situation, however,
satisfying individual needs is probably impossible. A task-oriented leader who simply focuses
on getting the work done is more effective than a relationship-oriented leader who spends time
fruitlessly trying to build good relationships in an impossible situation.
Fiedler's theory has some interesting implications for the selection and training of leaders in
organizations. Candidates for leadership positions should be evaluated to assess their basic
orientations, and they should be placed in jobs consistent with their leadership orientation. The
favourableness' of a situation should be assessed before assigning a leader to that position.
Leaders who are struggling may need to be placed in a different situation, or their current
situation may need to be changed.
When leaders are not successful, it is tempting to suggest that they need to change their
leadership orientation. Fiedler does not recommend this approach, however, and argues that the
basic leadership orientation of an individual is a relatively stable personality characteristic that
cannot be easily changed. Rather than changing the leader to fit the situation, Fiedler
recommends changing the situation to fit the leader through what he calls job engineering. Job
engineering consists of changing one of the situational factors to increase or decrease the
favourability of the situation. For example, the task structure and power position can be
effectively changed through job redesign programs or changes in personnel policies.
The validity of Fiedler's contingency theory has been examined in numerous studies. Although
most of the studies have been supportive, there have been enough contradictory findings for the
model to remain somewhat controversial among leadership scholars. The most serious
controversy about Fiedler's model concerns the LPC scale. Although the theory seems to predict

21. 19
leader effectiveness, the ambiguity over what the LPC score is actually measuring is disturbing.
(Pareek, 2013)
Leader behaviours : The path-goal model suggests that leadership consists of two basic
functions. The first function is path clarification: the leader helps subordinates understand which
behaviors are necessary to accomplish the tasks. The second function is to increase the number
of rewards available to subordinates by being supportive and paying attention to their personal
needs. To perform these functions, leaders may adopt a variety of leadership styles. Four distinct
leadership styles are explained in the model:
a. Directive leadership : Tells subordinates what is expected of them and provides specific
guidance, standards, and schedules of work.
b. Supportive leadership : Treats subordinates as equals and shows concern for their well-
being, status, and personal needs; attempts to develop pleasant interpersonal relationships
among group members.
c. Achievement-oriented leadership : Sets challenging goals expects subordinates to
perform at their highest level, and continually seeks improvement in performance.
d. Participative leadership : Consults with subordinates and uses their suggestions and
ideas in decision making.
Unlike Fiedler's model, which suggested that leadership style was resistant to change, the path-
goal model suggests that these four styles can be performed by the same manager at different
times and in different situations. In other words, the path-goal theory suggests that if a directive
leader discovers the situation has changed and now requires a participative leader, it is possible.
For the leader to change. The appropriate leadership style depends on the situation. Although the
path-goal model does not explain how to identify the appropriate leadership leader style, the
model does present a list of situational factors that need to be considered. (Robbins, 2012)
Situational factors : Two types of situational factors are proposed - "the characteristics of the
follower" and "environmental factors". Three characteristics of the followers have been
identified as significant variables determining the appropriate leadership style:
a. Locus of control : It refers to the individual’s belief concerning the determinants of
reward. Individuals with an internal locus of control believe their rewards are based on
their own efforts, while those with an external locus of control believe their rewards are
controlled by external forces. Internals prefer a participative leadership style while
externals are generally more satisfied oh are with a directive leadership style.
b. Authoritarianism : Authoritarianism refers to an individual’s willing to accept the
influence of others. High authoritarian followers tend to be less receptive to a
participative leadership style and more responsive to directive leadership.
c. Abilities : The ability and experience of the followers will influence leader whether they
are able to work more successfully with an achievement oriented leader who sets

22. 20
challenging goals and expects high performance, or a supportive leader who is willing to
patiently encourage and instruct them.
The path-goal model identifies three environmental factors moderating the effects of leadership
styles:
a. The nature of the task,
b. The formal authority system within the organization, and
c. The group norms and dynamics.
These environmental factors can influence the effectiveness of different leadership styles in a
variety of ways. A highly structured task, for example, may reduce the need for a directive leader
and even make a directive leader’s attempt to provide additional structure seem unwarranted and
unwanted. However, a directive leader would be more likely to succeed than a participative
leader if the organization had a highly formal authority structure that followed a strict chain of
command. Likewise, a concern for the personal needs of subordinates by a supportive leader may
seem superficial and unnecessary in a highly cohesive work group. The perceptions of the
followers concerning the situation and the followers’ level of motivation determine their job
satisfaction, performance, and acceptance of the leader.
In the first two situations, subordinates have an ambiguous job or they feel insufficiently
rewarded. Both situations call for a directive leader who explains the job and helps subordinates
know how to get rewarded for performing it. The next two situations, boring work and a lack of
self-confidence call for a support leader. Repetitive jobs are not as boring if a supportive leader
helps subordinates see that their work is meaningful and significant. Likewise, a supportive
leader can help subordinates feel greater self-confidence by coaching them and praising their
accomplishments. In situation 5, subordinates are not challenged by the task. An achievement-
oriented leader will set high goals and emphasize the intrinsic and extrinsic rewards from more
effort. Finally, situation 6 involves a task that is unstructured and poorly defined, calling for
participative leadership. By participating in the decision making, subordinates help to create an
effective solution to the problem and, as a result of their involvement, feel committed to making
it work. (Stogdill, Leadership, 2012)
Criteria for selecting a leadership style : Two criteria are used for assessing the effectiveness
of a leadership style: quality and acceptance. The quality of the decision refers to its accuracy
and the extent to which it will achieve some objective, such as increase profitability, raise
productivity, lower costs, reduce turnover, or increase sales. Decision quality depends on
gathering accurate and which tree relevant information, identifying good alternatives, and
evaluating them carefully to select the best solution. Consulting other group members often
provides additional information, but when there are severe time constraints or styles vested
interests on the part of the members, participative decision making would be inappropriate. For
example, participative decision making is quite quality inappropriate during a commando raid, in

23. 21
the middle of a police rescue action, style is autocratic or during the twenty-second huddle of a
football team.
Decision acceptance refers to the degree to which the subordinates or might group members are
willing to implement the decision. There are two questions that leaders should consider in order
to determine whether acceptance is an issue:
a. Do subordinates feel strongly about the decision? and
b. Is individual initiative and judgment on the part of members required to
implement the decision?
If the answer to either of these questions is yes, then the acceptability of the decision is
important. Regardless of the technical quality of the solution, the decision may be a failure if the
members are not willing to accept it.
Diagnostic decision rules : Vroom and Yetton suggested that leaders select an able appropriate
decision making style by diagnosing the situation using a sequence of decision rules. These
decision rules are designed to help the leader know how to involve subordinates in decisions in a
way that enhances the quality and series acceptability of the decision. The first three rules focus
on the quality of the decision.
The decision rules are contained in eight questions that a leader answers either yes or no.
a. As long as it is accepted, does it make any difference which decision is selected? Are
some decisions qualitatively superior to others?
b. Do I have sufficient information to make a high-quality decision?
c. Do subordinates have sufficient additional information that needs to be considered to
result in a high-quality decision?
d. Do I know exactly what information is needed, who possesses it, and how to collect
it?
e. Is acceptance of the decision by subordinates critical to effective implementation?
f. If I were to make the decision by myself is it certain that it would be accepted by my
subordinates?
g. Can subordinates be trusted to base their solutions on considerations consistent with
the organization’s goals?
h. Is conflict among the subordinates likely, given the preferred solutions?

24. 22
These diagnostic questions are used to determine the appropriate decision making style. The
application of these diagnostic questions is contained in the decision-tree chart shown above. The
chart reads from left to right and the letters at the top, A through H, represent the questions
shown above the decision tree. The boxes in the decision tree below each number represent the
point where that question is asked. The lines connecting the boxes indicate the decision making
path the manager follows, depending upon whether the answers to the questions are yes or no.
The symbols at the far right illustrate which decision style is appropriate for the various paths
through the decision tree. (Ashwathapa, 2013)
Emotional Intelligence and Leadership : In 1985 an influential psychologist called Howard
Gardener also challenged the current view of Emotional Intelligence. Emotional Intelligence has
become a vital part of how today's leaders meet the significant challenges they face. Emotional
Intelligence can help leaders in an ever more difficult leadership role, one that fewer and fewer
people seem capable of fulfilling. And in the middle of the "Talent War", especially at the
highest levels in organizations, emotional intelligence can give developing leaders a competitive
edge.
Emphasis on :
a.How the importance of Emotional Intelligence was recognized?
b.Why Emotional Intelligence is needed in Leadership?
c.The new demands leaders have to meet.
d.How to use Emotional Intelligence in developing leadership?
How the importance of Emotional Intelligence was recognized : In 1980 Reuven Baron was
researching the qualities that lead to success. He showed there was much more than traditional
Intelligence or IQ and developed the concept of Emotional Intelligence the Emotional Quotient
or EQ was born. Intelligence and proposed 7 multiple intelligences which included social
intelligence.
The idea that success in both life and in work (at least where managing people is a significant
factor) became highly credible and organizations have recognized how their best leaders and
managers need to develop their understanding of themselves and others.
In 1995 Daniel Goleman published the best seller "Emotional Intelligence" which has done a
great deal for popularizing the concept.
Need of Emotional Intelligence in Leadership : Emotional Intelligence does not fit the classic
historical models of leadership. The latter are usually associated with great figures of military
history and conjure up charismatic and sometimes despotic images. However, people often use
the same language for leadership today - bold, brave and tough with a strong sense of purpose
and resolve. However, this does not fit today's needs, because:

25. 23
a. Today’s workforce does not accept the autocratic style often adopted by leaders
following historical models of leadership.
b. Leadership has had to evolve to match a growing sense of democracy and
independence in the workforce.
c. Employees now have far more options and choices than the foot soldiers of yesterday.
The new demands leaders have to meet : Leaders now need to manage and lead an
'empowered' workforce and go beyond the consultative, co-operative and democratic styles of
today. These new demands include:
a. Consultation and involvement - but leaders still get criticized for not having and
communicating a compelling vision and purpose
b. Autonomy and freedom - but leaders are still expected to take full responsibility
when things go wrong
c. Opportunities for growth, challenge and glory - but leaders must be on hand to
coach and mentor us so that we develop our potential
d. Inclusion and team spirit - but we still want our leaders to give us individual
recognition and acknowledgement.
Use Emotional Intelligence in developing leadership : There are now a number of models and
questionnaires aimed at measuring Emotional Intelligence, often based on self-report
questionnaires. However, this approach has obvious limitations in identifying levels of self-
awareness - how can you be aware of what you are not aware of!
So, whilst questionnaires can play a part, better approaches also involve:
a. Experiential exercises
b. 360 feedback processes
These provide much more effective and comprehensive ways of identifying possible strengths
and weaknesses in Emotional Intelligence terms. When the self-assessment and 360 is
undertaken online, and results processed by someone independent, it assures confidentiality to
the extent that achieves a much higher level of honesty in the feedback and assessment. This
approach challenges complacency and can enable people to grow and develop.
However, the assessment of EI in leadership is complex. The use of simple self-report
questionnaires to explore self-awareness has significant limitations. Team Focus approach the
topic using a sophisticated variety of approaches including 360 feedback and experiential
exercises. This brings the whole concept alive and allows individuals to go beyond their existing
knowledge and comfort zones thus producing real impact, growth and change.

26. 24
CHAPTER II - RESEARCH METHODOLOGY
The term ‘Research Methodology’ indicates an exhaustive search and investigation into some
accepted principles and conclusions, so as to bring into light some new and noble facts. Research
has been done to analyze the present leadership style which prevails in the GRASIM Industries,
Nagda-Dhar whether effective or not and also to know the present trends of the management
style and relationship between the management and the employee and to check if any further
improvement and suggestions can be put into place for enhancing the overall climate of the
organization.
II.1 Universe of the study and Data Collection :
This consists of the entire work force at GRASIM Industries, Nagda-Dhar which comprises of
256 Employees (Managerial Functions).
II.1.1 Sample Size :
I am presenting a sample size of 38 Managers who are functional heads and departmental
heads.
II.1.2 Data Collection :
This is primarily a Qualitative and Quantitative Study in which investigative method is applied.
This includes the use of the following:
a. Stratified Random Sampling
b. Questionnaires
c. Personal interviews and discussions
d. Analysis of data
e. Interpretation through statistical techniques
f. Use of Records of the Organization
g. Use of Internet and Intranet
Methods refer to the designing of evaluation instrument. Evaluation instrument is a data
collection device administered at the appropriate stage of any analysis. Data Collection is a
major ingredient of any research project.
II.1.3 The Concept :
a. Methods are to be used for collecting required information.
b. Interpretation of data will be done to get the required result through an analysis.
c. Outcome will be necessary recommendations and suggestions.

27. 25
II.2 Primary and Secondary source of Data :
II.2.1 Design :
The research will be focused on the collection of data, interpretation of data, and analysis of data.
There will use of two types of data involved:
a. Primary data: Information provided by the administration of the questionnaire.
b. Secondary data: Information collected by reviewing literature about the company from
journals, books, magazines, articles and also from the usage of the internet facility.
II.3 Tools and Techniques Used :
a. Questionnaire will be administered with weighted scores being assigned to each question.
b. Weightage will be assigned to the various categories and category wise analysis will also
be done.
c. Comparative study will be done of each parameter for which mean of weighted average
of each parameter will be calculated.
d. There will be use of percentages and pie-charts for the illustration of the analysis.
II.3.1 Scoring Section :
After completing the Questionnaire, filled the responses to the spaces below:
People-Concern Questions :
Q. No. Response
1. ______
4. ______
6. ______
9. ______
10. ______
12. ______
14. ______
16. ______
17. ______
Calculate Total ________
Total Score x 0.25 = ________
(Multiply the Total by 0.25 to get individual's final score)

28. 26
Task/Production-Concern Questions :
Q. No. Response
2. ______
3. ______
5. ______
7. ______
8. ______
11. ______
13. ______
15. ______
18. ______
Calculate Total ________
Total Score x 0.25 = ________
(Multiply the Total by 0.25 to get individual's final score)
II.3.2 Matrix Section :
Plot your final scores on the graph below by drawing a horizontal line from the approximate
people score (vertical axis) to the right of the matrix, and drawing a vertical line from the
approximate task score on the horizontal axis to the top of the matrix. Then, draw two lines from
each dot until they intersect. The area of intersection is the leadership dimension that you operate
out of.

29. 27
The above sample shows score of 4 in the people section and a score of 6 in the task section. The
quad where the two lines intersect is the leadership style, in this case - Authoritarian section.
II.3.3.The Results :
This chart will give you an idea of your leadership style. But, like any other instrument that
attempts to profile a person, you have to take in other factors, such as, how your peers and
employees rate you as a leader, do you get your job done, do you take care of your employees,
are you helping to "grow" your organization, etc.
One should review the statements in the survey and reflect on the low scores by asking yourself,
"If I scored higher in that area, would I be a more effective leader?" And if the answer is yes,
then it should become a personal action item.
a. Authoritarian Leader (high task, low relationship) : People who get this rating are very
much task oriented and are hard on their workers (autocratic). There is little or no
allowance for cooperation or collaboration. Heavily task oriented people display these
characteristics: they are very strong on schedules; they expect people to do what they are
told without question or debate; when something goes wrong they tend to focus on who is
to blame rather than concentrate on exactly what is wrong and how to prevent it; they are
intolerant of what they see as dissent (it may just be someone's creativity), so it is
difficult for their subordinates to contribute or develop.
b. Team Leader (high task, high relationship): This type of person leads by positive
example and endeavors to foster a team environment in which all team members can
reach their highest potential, both as team members and as people. They encourage the
team to reach team goals as effectively as possible, while also working tirelessly to
strengthen the bonds among the various members. They normally form and lead some of
the most productive teams.
c. Country Club Leader (low task, high relationship) : This person uses predominantly
reward power to maintain discipline and to encourage the team to accomplish its goals.
Conversely, they are almost incapable of employing the more punitive coercive and
legitimate powers. This inability results from fear that using such powers could
jeopardize relationships with the other team members.
d. Impoverished Leader (low task, low relationship) : A leader who uses a "delegate and
disappear" management style. Since they are not committed to either task
accomplishment or maintenance; they essentially allow their team to do whatever it
wishes and prefer to detach themselves from the team process by allowing the team to
suffer from a series of power struggles.

30. 28
The most desirable place for a leader to be along the two axis at most times would be a 9 on task
and a 9 on people -the Team Leader. However, do not entirely dismiss the other three. Certain
situations might call for one of the other three to be used at times. For example, by playing the
Impoverished Leader, you allow your team to gain self-reliance. Be an Authoritarian Leader to
instill a sense of discipline in an unmotivated worker. By carefully studying the situation and the
forces affecting it, you will know at what points along the axis you need to be in order to achieve
the desired result.
I have used all the above tools to get along with research project, but the main emphasis is given
to the responses collected through questionnaires, personal and telephonic interviews and
discussions. The numerous official records of the past and the present, intranet site were also
referred for the collection of exact information and statistical data.

31. 29
CHAPTER- III : COMPANY PROFILE
Grasim Industries has a strong presence in textile industry in India in the fabrics and synthetic
yarns sector. Grasim is well known for its branded suiting's. Grasim and Graviera, mainly in the
polyester - cellulosic branded menswear. Its textile plants are located in Bhiwani (Hariyana) and
Nagda (Madhya Pradesh).
Grasim's strong nation-wide retail network includes exclusive showrooms, wholesalers, and
Multi-Brand outlets through which it reaches its customers. Grasim also has a strong presence in
the international market, catering to international fashion in the US, supplying fabric for
manufacturing garments. These garments are available in retail stores around the world.
Grasim Industries, a flagship company of the Aditya Birla Group, ranks among India's largest
private sector companies, with a consolidated net revenue of Rs 279 billion and consolidated net
profit of Rs 27 billion (FY 2013).
Starting as a textiles manufacturer in 1948, today Grasim's business also includes the
manufacture of viscose staple fibre (VSF), cement and chemicals.
Under its chemicals business, the company manufactures caustic soda using the latest membrane
cell technology. For gainful utilisation of chlorine, the unit has expanded its operations with the
production of stable bleaching powder (SBP) used in water purification, sanitation and as a
bleaching agent; poly aluminium chloride (PAC) used in water treatment, paper sizing and
effluent treatment; and chloro-sulphonic acid (CSA) used in vinyl sulphate, the raw material for
dyes and intermediates, drugs and pharmaceuticals and chlorinated paraffin wax (CPW), used in
plasticisers.
Grasim's caustic soda business at Nagda, Madhya Pradesh, started with an initial capacity of
33,000 tpa, and has since grown to 258,000 tpa, making it the country's largest caustic soda unit.
The company has recently commissioned a new chlor-alkali plant at Vilayat in Gujarat, India.
(Grasim)
III.1.1 Vision :
To be a leading customer-focused global chemicals business that delivers best-in-class products
and specialty solutions using safe, sustainable and innovative processes.
III.1.2 Mission :
To deliver superior value to our customers, shareholders, employees and society at large.

32. 30
III.1.3 Values :
a. Integrity : Acting and taking decisions in a manner that is fair and honest. Following the
highest standards of professionalism and being recognized for doing so. Integrity for us
means not only financial and intellectual integrity, but encompasses all other forms as are
generally understood.
b. Commitment : On the foundation of Integrity, doing all that is needed to deliver value to
all stakeholders. In the process, being accountable for our own actions and decisions,
those of our team and those in the part of the organisation for which we are responsible.
c. Passion : An energetic, intuitive zeal that arises from emotional engagement with the
organisation that makes work joyful and inspires each one to give his or her best. A
voluntary, spontaneous and relentless pursuit of goals and objectives with the highest
level of energy and enthusiasm.
d. Seamlessness : Thinking and working together across functional groups, hierarchies,
businesses and geographies. Leveraging diverse competencies and perspective to garner
the benefits of synergy while promoting organisational unity through sharing and
collaborative efforts
e. Speed : Responding to internal and external customers with a sense of urgency.
Continuously striving to finish before deadlines and choosing the best rhythm to optimise
organisational efficiencies.
III.2 Business Verticals :
Grasim Industries, the flagship company of the Aditya Birla Group was incorporated on August
25,1947. It ranks among India's largest private sector companies. Starting as a textiles
manufacturer in 1948, today Grasim’s businesses comprise viscose staple fibre (VSF), cement,
chemicals and textiles. Its core businesses are VSF and cement, which contribute to over 90 per
cent of its revenues and operation.
Total Income - Rs. 59882.9 Million ( year ending Mar 2014)
Net Profit - Rs. 8959.9 Million ( year ending Mar 2014)
(Annual Report - Grasim, 2013)
III.2.1 Viscose Staple Fibre :
Grasim is India's pioneer in Viscose Staple Fibre (VSF), a man-made, biodegradable fibre with
characteristics akin to cotton. As an extremely versatile and easily bendable fibre, VSF is widely
used in apparels, home textiles, dress material, knitted wear and non-woven applications.
Grasim's VSF plants are located at Nagda in Madhya Pradesh, Kharach in Gujarat and Harihar in
Karnataka, with an aggregate capacity of 454,425 tpa.

33. 31
III.2.1.1. Nagda :
Nagda is its largest unit producing a wide range of VSF to suit customer requirements in terms of
length, denier and colour and also second and third generation fibres like Modal, Excel and
Solvent Spun fibres, respectively. Nagda is also the largest producer of spun-dyed specialty fibre
in the world.
III.2.1.2 Harihar :
The Harihar unit houses facility for manufacture of both VSF and rayon grade pulp, the basic
raw material for VSF. The company's Rayon Grade plant was the first in India to use totally
indigenous wood resources with in-house technology for producing rayon pulp with an
innovative oxygen bleaching process to reduce the use of chlorine.
III.2.1.3 Kharach :
The VSF plant at Kharach, set up in 1996, employs the most modern technology giving it a
competitive edge in the export market.
III.2.2 Joint Ventures (JV) :
Grasim has the following joint ventures overseas :
 AV Cell Inc. and AV Nackawic Inc. in Canada :
o AV Cell and AV Nackawic supply dissolving grade pulp to the Group’s VSF
units in India, Thailand and Indonesia.
 Domsjö Fabriker AB in Sweden :
o Grasim acquired one-third stake in Domsjö Fabriker AB, a leading Swedish
speciality pulp and bio-refinery company in June 2011. With this acquisition,
Grasim is assured of high-quality dissolving grade pulp.
 AV Terrace Bay Inc. in Canada :
o In line with the strategy to secure key inputs, Grasim acquired assets of Terrace
Bay in July 2012 in JV with Thai Rayon, a Group company. This will help in
meeting the increasing pulp requirement for VSF business after the mill is
converted into a dissolving grade mill.
 Birla Lao Pulp & Plantation Limited in Laos :
o To further strengthen the backward integration in pulp, Birla Lao has been formed
as a JV with other associate companies for raising captive plantations at Laos.
This will provide a low cost source for wood to meet future requirements of a
green field pulp plant in due course of time.
 Birla Jingwei Fibres Company Limited in China :

34. 32
o Through Birla Jingwei, Grasim has its footprint in China, the largest VSF market
globally. Plant capacity was doubled in 2012 and currently the capacity is 72,000
TPA.
This spread and scale of operations make the Group's VSF operations very cost competitive.
Moreover, vertical integration into manufacturing of rayon grade pulp and horizontal integration
into production of principal raw material required for VSF production, namely, caustic soda,
intermediate inputs namely CS2, sulphuric acid along with captive power and steam generation
facilities, further enhance its competitive edge.
III.3 Existing Future Plans and Policies :
For Grasim it has been an eventful year. The Company’s two key businesses – Cement and
Viscose Staple Fibre have performed well. The performance of the Chemicals, Sponge Iron and
Textile businesses has been constrained due to the economic slowdown. Overall the results have
been satisfactory. Revenues declined marginally on lower VSF and Sponge Iron volumes.
Improved profitability of the Cement business and reduced finance costs offset the impact. Gross
profits improved by 11% and pre-tax profits by 18% in FY02. Profit after current and deferred
taxes before exceptional charges due to business restructuring have grown 14% to Rs.386.8
crores in FY02. In the context of the prevailing difficult environment, the Company’s
performance is indeed commendable. The year was sluggish on several counts. GDP grew by
5.7% only because of the recovery in the agriculture sector, which benefited from a well
precipitated monsoon. The industrial sector suffered the most with growth rates nearly halving to
a decade low level of 2.7% taking a serious toll on consumer sentiment. The deepening of
recession in the US following the 9/11 attacks added further pressure. Reflecting weak sentiment
and the resultant reduction in consumer spending, demand contracted across the sectors, both in
India and abroad.
An Eventful year Strategically - It was an eventful year strategically. The Company closed the
loss making Pulp and Fibre Plants at Mavoor (Kerala) and sold its loss-making fabric unit at
Gwalior (Madhya Pradesh). The stake in its software subsidiary was divested as well. Apart from
these restructuring moves, the Company strengthened its cement operations by commissioning a
grinding plant at Bhatinda (Punjab) and made strategic investments in Larsen & Toubro Limited.
Mavoor Plant Closure The Company has been pursuing for closure of its Pulp and Fibre plants at
Mavoor with the Government, primarily due to non availability of raw materials, the resultant
poor quality of fibre and overall unviable operations. The plant operations were suspended from
May 1999. Subsequently, the Company reached a settlement with its Labour Unions for the
closure of Mavoor from 1st July 2001. The Company incurred a sum of Rs.55.3 crores towards
employee retrenchment compensation and provided an additional Rs.19.0 crores towards the
shortfall in realisation from fixed assets retired from active use. Following the closure, the
Company’s workforce stands reduced by 2300, which accounts for 11% of its aggregate

35. 33
workforce. An annual savings of Rs.27.0 crores towards employee costs and fixed overheads will
accrue in future. Textile Unit at Gwalior Divested The Textile business of the Company
consisted of fabrics unit at Gwalior (Madhya Pradesh), a composite unit at Bhiwani (Haryana)
and a spinning unit at Malanpur (Madhya Pradesh). The textile business has been under pressure
due to adverse market conditions and rising cost of operations in recent years. Given that the
domestic textile industry is not showing definite signs of recovery, the Company decided to
restructure operations to prevent value erosion in future. As part of a carefully chosen strategy,
the Company decided to sell its textiles manufacturing units / undertakings at Gwalior and
centralise fabric operations at Bhiwani. The operation at Gwalior been the biggest drag and
accounted for operating losses of Rs.27.3 crores against operating profit of Rs. 6.7 crores at other
textile units. A turnaround in the unit’s operations appeared unlikely due to in-efficient
operations, higher overheads and growing costs. The Company thus decided to sell the fabrics
unit at Gwalior as a going concern. The Company reached an agreement with Melodeon Exports
Limited for the sale of the textile manufacturing units at Gwalior for a consideration of Rs.1.0
lac. The Company also agreed to pay Rs.15.0 crores to the Buyer for taking over the liabilities
relating to employees. The Company has incurred Rs.31.9 crores as an exit cost, which is
charged to revenue account as an exceptional cost in FY02. With brands remaining under its fold
and the high cost operation sold-off, the Company hopes to improve its position and overall
profitability of the business. Divestment of Stake in Software subsidiary In another important
move, the Company divested its entire holding in its software subsidiary - Birla Technologies
Limited. With a view to bring focus on key businesses and divest its smaller businesses,
Company’s software division was hived off last year into a subsidiary, named Birla Technologies
Limited. The Company sold its entire stake in Birla Technologies to PSI Data Systems for a
consideration of Rs.11.3 crores in FY02. This was against its capitalised value of Rs.29.4 crores
and thus resulted in a non-cash loss of Rs.18.1 crores in FY02. The erosion in value of its
software subsidiary needs to viewed in the light of the deterioration in the industry environment
and the sharp fall in sector valuations. As you are aware, the Company had booked a non-cash
profit of Rs.18.4 crores last year thru the corporatisation. Hence even with the non-cash loss at
present, the Company made a net gain of Rs. 0.3 crores from the divestment efforts, which is
satisfactory. (Grasim at a Glance, 2014)

36. 34
CHAPTER IV - RESEARCH ANALYSIS
IV.1 Analysis and Findings :
IV.1.1 Master-Sheet :
S.
No.
Name Age Designation
People
Score
Y-axis
Value
Task
Score
X-axis
Value
Leadership
Style
1
Anurag
Gupta
39 General Manager
25 6.25 32 8 Team Leader
2
Ashok Jain 56
Deputy General
Manager 33 8.25 34 8.5 Team Leader
3
M P Agarwal 42
Deputy General
Manager 33 8.25 32 8 Team Leader
4 Sanjay K Lal 44 General Manager 35 8.75 36 9 Team Leader
5
Pranit
Nagwekar
53 General Manager
26 6.5 26 6.5
Middle of the
Road
6
Purna
Chandra
Samantray
40 General Manager
33 8.25 34 8.5 Team Leader
7
S P S Baghel 59
Deputy General
Manager 31 7.75 22 5.5 Team Leader
8
B S Sahani 57
Deputy General
Manager 25 6.25 31 7.75 Team Leader
9
Rajesh P
Sharma
50 General Manager
30 7.5 24 6 Team Leader
10 Rao K R 58 General Manager 31 7.75 33 8.25 Team Leader
11
Rajiv Kaul 54
Deputy General
Manager 31 7.75 30 7.5 Team Leader
12
Rajmal
Shrinath
52
Deputy General
Manager 32 8 30 7.5 Team Leader
13
Minesh
Agarwal
42
Deputy General
Manager 29 7.25 23 5.75 Team Leader
14
Jitendra
Jherwar
56 General Manager
30 7.5 33 8.25 Team Leader
15 Ashok Gupta 52 General Manager 30 7.5 31 7.75 Team Leader
16
Deepak
Surana
52
Deputy General
Manager 20 5 19 4.75
Middle of the
Road
17
Jagmohan
Gaur
54
Deputy General
Manager 29 7.25 30 7.5 Team Leader
18
Arunodaya
Seetha
46
Assistant General
Manager 26 6.5 29 7.25 Team Leader
19
Manoj
Kumar Joshi
51
Assistant General
Manager 29 7.25 23 5.75 Team Leader
20 Sajjan Singh 48 General Manager 31 7.75 29 7.25 Team Leader

37. 35
21
Nalin Soral 54
Deputy General
Manager 31 7.75 28 7 Team Leader
22
M R
Mansoori
47
Assistant General
Manager 25 6.25 26 6.5
Middle of the
Road
23
Jai Kishore
Roy
51
Deputy General
Manager 34 8.5 34 8.5 Team Leader
24
Shailendra
Deshlahra
44
Assistant General
Manager 31 7.75 25 6.25 Team Leader
25
Subir Atri 43
Deputy General
Manager 30 7.5 33 8.25 Team Leader
26
Saiduzzaman
Haque
43
Assistant General
Manager 33 8.25 29 7.25 Team Leader
27
Rajesh Matai 45 General Manager
27 6.75 21 5.25
Middle of the
Road
28
Partha
Samaddar
38
Assistant General
Manager 27 6.75 27 6.75
Middle of the
Road
29
Rajendra
Nagle
45 General Manager
31 7.75 29 7.25 Team Leader
30
Praveen
Surange
56
Assistant Vice
President 29 7.25 30 7.5 Team Leader
31 Abhay Nagar 41 Manager 32 8 31 7.75 Team Leader
32
Vivek Kale 44
Assistant General
Manager 30 7.5 32 8 Team Leader
33
Rajeev
Gupta
42
Assistant General
Manager 30 7.5 29 7.25 Team Leader
34
Vijay Singh 38 Manager
20 5 27 6.75
Middle of the
Road
35 Ajay Gupta 39 Manager 32 8 27 6.75 Team Leader
36
Deepak
Patidar
40 Manager
26 6.5 27 6.75
Middle of the
Road
37
Nirbhay
Gupta 32
Assistant General
Manager 27 6.75 27 6.75
Middle of the
Road
38
Vijay Kant
Sharma
42 Manager
32 8 32 8 Team Leader
Sample Average 29.3684 7.34211 28.816 7.20395 Team Leader

38. 36
IV.1.2 Pie - Charts :
(Figure 1)
Out of 38 managers (Sample Size) :
79% fall under "Team Leader Leadership Style"; and
21% fall under "Middle-of-the-road Leadership Style".
(Figure 2)
Executives at Manager Positions :
60% fall under "Team Leader Leadership Style"; and
40% fall under "Middle-of-the-road Leadership Style".
Team
leader
79%
Middle of
the road
21%
Distributionof sample size by their
leadershipstyle
60%
40%
Distributionof Managers according
to Leadership Style
Team Leader
Middle of the
Road

39. 37
(Figure 3)
Executives at Assistant General Manager Positions :
67% fall under "Team Leader Leadership Style"; and
33% fall under "Middle-of-the-road Leadership Style".
(Figure 4)
Executives at Deputy General Manager Positions :
92% fall under "Team Leader Leadership Style"; and
8% fall under "Middle-of-the-road Leadership Style".
67%
33%
Distributionof AssistantGeneral
Managers according to Leadership
Style
Team Leader
Middle of the
Road
92%
8%
Distribution of Deputy General
Managers according to
Leadership Style
Team Leader

40. 38
(Figure 5)
Executives at General Manager Positions :
95% fall under "Team Leader Leadership Style"; and
5% fall under "Middle-of-the-road Leadership Style".
(Figure 6)
Executives between the age 30 to 39 (Generation Z) :
40% fall under "Team Leader Leadership Style"; and
60% fall under "Middle-of-the-road Leadership Style".
95%
5%
Distribution of General
Managers according to
Leadership Style
Team Leader
Middle of the
Road
40%
60%
Distribution according to
age(30-39)
Team Leader Middle of the Road

41. 39
(Figure 7)
Executives between the age 40 to 49 (Generation Y) :
82% fall under "Team Leader Leadership Style"; and
18% fall under "Middle-of-the-road Leadership Style".
(Figure 8)
Executives between the age 50 to 59 (Generation X) :
87% fall under "Team Leader Leadership Style"; and
13% fall under "Middle-of-the-road Leadership Style".
82%
18%
Distributionaccording to age(40-
49)
Team Leader Middle of the Road
87%
13%
Distribution according to
age(50-59)
Team Leader Middle of the Road

42. 40
IV.2 Limitations :
Theories of leadership have moved on a certain amount since the Blake-Mouton Grid was originally
proposed. In particular, the context in which leadership occurs is now seen as an important driver of the
leadership style used.
And, in many situations, the "Team Leader" as an ideal has moved to the ideal of the "Transformational
Leader". Someone who:
a. Is a model of integrity and fairness?
b. Sets clear goals.
c. Have high expectations.
d. Encourages.
e. Provides support and recognition.
f. Stirs people's emotions.
g. Gets people to look beyond their self-interest.
h. Inspires people to reach for the improbable.
So, use Blake Mouton as a helpful model, but don't treat it as an "eternal truth".
And, keeping in mind problems and obstacles that occurred while conducting the study in the
organization such as- time constraints, insufficiency of data collection, uncertainty of the sample
matching with the entire population, and proper data analysis.
IV.3 Final Outcomes :
 The correlation between the age and people orientation of the managers is positive. Therefore
with rising age the managers become more concern towards employees expectations.
 As the managers rise higher In the hierarchy a similar effect takes place that is they become more
sensitive towards people's needs.
 Situational Leadership plays a vital role in any manufacturing concern. As it forces managers to
behave differently according to the situation.
 Emotional Intelligence is an integral part of the Leadership behaviour. It goes hand in hand.

43. 41
CHAPTER V - CONCLUSIONS AND RECOMMENDATIONS
The Managerial Grid developed by Robert Blake and Jane-Mouton focuses on task (production)
and employee (people) orientations of managers as well as combinations of concerns between
the two extremes. A grid with concern for production on the horizontal axis and concern for
people on the vertical axis and plots five basic leadership styles. The first number refers to a
leader's production or task orientation; the second, to people or employee orientation. The Blake
Mouton Managerial Grid they proposed that “Team Management” - a high concern for both
employees and production is the most effective type of leadership behavior.
Blake and Mouton focused on purpose, people, and hierarchy (power) as the common features of
organizations and asked how organization purposes are achieved through people by bosses. They
developed the grid by setting concern for people on the horizontal axis and concern for
production on the vertical axis in order to express the attitudes of bosses. Each axis ranged on a
scale of 1 to 9 from low to high. Then, Blake and Mouton called this grid the Managerial Grid
and categorized the attitudes of bosses into 5 types on this grid:
While they proposed that the ideal attitude was 9,9: Team Management, that stressed
participation as an interaction process based on openness, strong initiative, thorough inquiry,
effective advocacy, confrontational approach to conflict solving, appropriation delegation, sound
teamwork, and two-way critique, they also understood it was difficult to actualize because
followers did not always have the ability that leaders expected, and followers abilities were
diverse.
Being aware of the various approaches is the first step in understanding and improving how well
you perform as a manager. It is important to understand how you currently operate, so that you
can then identify ways of becoming effective in both areas.
It is important to recognize that the Team Leadership style isn’t always the most effective
approach in every situation. While the benefits of democratic and participative management are
widely accepted, there are times that call for more attention in one area than another.
If the company is in the midst of a merger or some other significant change, it can be acceptable
to place a higher emphasis on people than on production. Likewise, when they faced with an
economic hardship or physical risk, people concerns may be placed on the back burner, for the
short-term at least, to achieve high productivity and efficiency.
By interpreting leadership as a form of culture, a new conception of leadership emerges:
"Leadership as the management of influence processes". The Managerial Grid model offers a
model of leadership which is consistent with this new conception. In an era of "cross-functional
teams", "learning organizations" and "continuous quality improvement" where the emphasis is
squarely on the dynamic interactions within teams, Grid as a model of leadership culture,

44. 42
deserves to be seriously reappraised by leadership researchers and practitioners. As an initial step
in the re-appraisal of Grid, it is proposed that research focus on measuring and differentiating the
five basic Grid leadership cultures and then establishing whether the Teamwork (9,9) leadership
culture represents the “one best way”.
Although deciding what makes an effective leader seems as if it should be a simple decision, the
theories and research reviewed earlier illustrate the complexity of the issue. In spite of the
complexity, however, individuals who are in positions of leadership are still faced with the
practical question of deciding which leadership pattern to adopt.
Realizing that there are constraints on a leader’s behavior and that other the factors may serve to
neutralize or substitute for the influence of a leader helps to explain why the research on
leadership has produced such inconsistent results. The fact that the results are inconsistent and
generally weak does not necessarily mean that leadership is unimportant or that leaders are not
really account for much. Instead, it illustrates the complexity of the world in which leaders are
required to function. Finally, 'Leadership' is an extremely important function that influence
enormously the effectiveness of groups and organizations. The complexity of the situation,
however, may prevent the leadership style if they know how to control their emotions in advance
which may called as 'effective leadership behaviors'.

45. 43
RECOMMENDATIONS :
1. Self - Introspection through:
A. Step One: Identify the leadership style :
a. Think of some recent situations where you were the leader.
b. For each of these situations, place yourself on the grid according to
where you believe you fit (autocratic, democratic, participative or team
leadership).
B. Step Two - Identify areas of improvement and develop your leadership skills:
a. Look at your current leadership approach, and think about whether it
suits the context.
b. Look at ways that you could improve. Are you settling for ‘middle of the
road’ because it is easier than reaching for more?
c. Identify ways to get the skills you need to reach the ‘Team Leadership
position’. These may include involving others in problem solving or
improving how you communicate with them, if you feel you are too
task-oriented. Or it may mean becoming clearer about scheduling or
monitoring project progress if you tend to focus too much on people.
d. Continually monitor your performance and watch for situations where
you slip back into bad old habits.
C. Step Three - Put the Grid in Context
2. Behaving as per the Situation :
a. Sometimes the manager should use his/her authority to simply make the decision and
announce it.
b. Sometimes the manager provides an area of freedom for subordinates and permits
them to function within certain limits to make decisions and direct their own
activities.
c. Includes the manager's value system and the value the manager places on
participation and involvement by subordinates.
d. The amount of confidence managers have in their subordinates and the manager's
ability to handle uncertainty are also relevant.
e. As subordinates gain greater skill and competence in managing themselves, leaders
ought to provide more autonomy for them.
f. The culture of the organization and its history of allowing subordinates to exercise
autonomy.

46. 44
g. Successful leader is one who is aware of the situational forces and responds
appropriately to them.
h. Effective leaders need to understand themselves, the members of the group, the
company, and the broader social environment in which they operate.
3. Strategies for Improving Leadership :
a. Reward the leader by the ways they perform.
b. Encouraging reciprocal nature of influence between leaders and subordinates.
c. It is important to remember that leadership may be significantly constrained by the
followers.
d. Participating Approach should be there in the Organisation.
4. Constraints on leader behavior :
a. External factors : Leaders are constrained in what they can do because of various
economic realities and a host of state and federal laws. For example, leaders are
required to pay at least the minimum wage and they are required to enforce safety
standards. Leaders who have unskilled followers will have difficulty leading
regardless of their leadership style, and the availability of skilled followers is
influenced by the external labor market. Some geographical areas have a much better
supply of skilled employees than others.
b. Organizational policies : The organization may constrain a leader’s effectiveness by
limiting the amount of interaction between leaders and followers and by restricting
the leader’s ability to reward or punish followers.
c. Group factors : Group norms are created by the dynamics of the group. If the group
is highly cohesive and very determined, it can limit the leader’s ability to influence
the group.
d. Individual skills and abilities : The leader’s own skills and abilities may act as
constraints since leaders can only possess so much expertise, energy, and power.
Some situations may simply require greater skills and abilities than the leader may
possibly hope to possess.
5. Substitutes for leadership :
a. Making the leader’s behavior unnecessary or by neutralizing the leader’s ability to
influence subordinates.
b. The task-oriented instructions from an instrumental leader are simply unnecessary
when subordinates already know what to do.

47. 45
Bibliography
1. Annual Report (2013).- Grasim. Nagda.
2. Ashwathapa, K. (2013). Human Resource Management.
3. Grasim. (n.d.). Retrieved from www.grasim.com: http://www.grasim.com/about_us/
4. Grasim at a Glance. (2014, March).
5. Pareek, U. (2013). Organisation Behavior.
6. Robbins, S. (2012). wikipedia. In S. Robbins, Organisational Behaviour (pp. 344-389).
7. Stogdill, R. (2012). Leadership.
8. Stogdill, R. (2012). Leadership.

48. 46
APPENDIX
Annexure 1 : Questionnaire (Sample)

49. 47
Annexure : Questionnaire (Filled)