This document discusses business leadership and different leadership styles. It provides an overview of leadership, including defining leadership as influencing others towards a common goal. It outlines different levels of leadership such as strategic, operational, and team leaders. Several leadership styles are described, including autocratic, democratic, transactional, and laissez-faire. Key qualities of a good leader are listed as honesty, confidence, decision-making, communication, creativity, fairness, and enthusiasm. The functions and traditional approaches to leadership are also summarized.
2. WHY LEADERSHIP?
• The success of every industrial enterprise is dependent upon the quality of its
leadership.
• E.g. Steve Jobs.
• Tasks of a leader in business enterprise:
• Determine the objectives of the enterprise.
• Designing methods to achieve them.
• Direct and coordinate the activities of various departments.
3. WHAT IS LEADERSHIP
• Leadership is the art of influencing the activities of a group of people towards
achieving a common goal.
4. DIFFERENT LEVELS OF LEADERSHIP
• Strategic leader:- Leads the whole organisation , with overall accountability for
leadership levels below.
• Operational leader:- Leads a unit within organisation comprising of number of
teams. The individual team leader reports to the operational leader.
• Team leader:- Leads a team of 10-20 people.
• Project leader:- Leads for a limited time for a specific purpose.
5. LEADERSHIP STYLES
• Autocratic :-
• The autocratic leadership style allows leaders to make decisions alone without the
input of others.
• Leaders possess total authority and impose their will on employees.
• Leaders enforces their decision by use of reward and fear of punishment
• Communication is mainly in one direction from leader to followers
• The main advantage is quick decisions.
6. • Democratic or participative leadership:-
• In contrast to autocratic this encourages subordinates to participate in decision
making.
• Participative leadership boosts employee morale because employees make
contributions to the decision-making process.
• Communication takes place in both direction and also horizontally.
• Smooth implementation since subordinates take part in making decision.
• This style meets challenges when companies need to make a decision in a short
period.
• The disadvantage is slower decisions and lack of accountability.
7. • Transactional leadership:-
• In this style, leaders receive certain tasks to perform and provide rewards or
punishments to team members based on performance results.
• Leaders and team members set predetermined goals together, and employees
agree to follow the direction and leadership of the manager to accomplish those
goals.
• The manager possesses power to review results and train or correct employees
when team members fail to meet goals.
• Employees receive rewards, such as bonuses, when they accomplish goals.
8. • Laissez-Faire Leader:-
• In this leader uses his power very little giving his subordinates freedom of actions and
setting their goals and means of achieving them.
• This promotes individual growth and freedom of action.
• However the loose control by the leader over the group may lead to ;ack of
and unity of purpose toward organisational objective.
9. LEADERSHIP STYLE IN INDIAN ORGANIZATIONS
• Children of entrepreneurs are promoted to the top with no tests given or
questions asked.
• Known as management by inheritance.
10. CHARACTERISTICS OF LEADERSHIP
• Leaders within organization are also followers. E.g. supervisor working for
manager.
• Thus, a leader has to be able to wear both hats gracefully.
• Influence subordinates to work for mutual interest.
11. QUALITIES OF A GOOD LEADER
• Honesty and Integrity:- Honesty and integrity are two important ingredients
which make a good leader.
• Confidence:- To be an effective leader, you should be confident enough to
ensure that other follow your commands.
• Decision-Making Capabilities:- A leader should have the ability to take the right
decision at the right time.
• Good Communicator:- Words have the power to motivate people and make
them do the unthinkable. If you use them effectively, you can also achieve better
results.
12. • Creativity and Innovation:- Innovation distinguishes between a leader and a
follower.
• Fairness:- A good leader must treat every subordinate equally.
• Enthusiasm:- A good leader should motivate his team with positive attitude.
“If your actions inspire others to dream more, learn more,
do more and become more, you are a leader.”
13. FUNCTIONS OF A LEADER
• Setting and achieving organisational goals
• Goal-setter
• Planner: Assigns tasks to subordinates and plans work schedule.
• Executive: Sees that the assigned tasks are properly executed.
• Planning operations of the organisation
• Representative of the organization.
• Coordinator of various departments.
• Administrator of rewards and punishments.
• Peace keeper among the organization.
14. • Symbolic figure for the organization
• Serves as an example.
• First person responsible.
• Organizing resources.
• Directing the team.
• Controlling the processes.
15. TRADITIONAL APPROACHES TO LEADERSHIP
a) Traits approach
• Belief that some men are leaders because they have attributes which they have not
earned but are born with.
• If we can identify these qualities, we shall have the clue to the leadership problem.
b) Behavioural approach
• Leaders are not born but can be trained.
c) Contingency approach
• Views the leader as a product of the times and situation.
16. LEADERSHIP EFFECTIVENESS
• Effective leadership is partly situational and partly intrinsic to the person.
• Leader can improve his effectiveness with the correct mix of the following 4 types
of factors:
1. Factors in himself.
2. Factors in subordinates.
3. Factors in the situation.
4. Factors in the organization.