Leadership styles in organizations

General management project on
“A study of leadership styles in organizations”
Submitted in partial fulfilment for the award of the degree of
Master of Management Studies (MMS)
(Under University of Mumbai)
Submitted by
Pankaj J. Shukla
(Roll no. :-MB/A/107)
Under the guidance of
Prof. Snehal Pawar
2016-18
SAS INSTITUTE OF MANAGEMENT STUDIES

CERTIFICATE
This is to certify that project titled “A study of leadership styles in
organizations” is successfully completed by Miss. Pankaj J. Shukla
during the fourth Semester, in partial fulfilment of the Master‟s degree in
Management Studies recognized by the University of Mumbai for the
academic year 2016-18 through SAS Institute of Management Studies.
This project is original work and not submitted earlier for the award of any
degree /diploma or associateship of any other University/Institution.
Date: ______________
Signature of the Guide: Signature of the Director:
College seal

DECLARATION
I hereby declare that this Project Report submitted by me to the SAS
INSTITUTE OF MANAGEMENT STUDIES (Mumbai University) is a
bonafide work undertaken by me and it is not submitted to any other
University or Institution for the award of any degree diploma/certificate or
published any time before.
Name: Pankaj J. Shukla
Roll no. : MB/A/107 Signature of the Student:

ACKNOWLEDGEMENTS
I am extremely grateful to the University of Mumbai for having prescribed
this project work as a part of academic requirement in the SAS Institute of
Management Studies (MMS) course.
I wish to appreciate the management and staff of SAS institute of
management studies for providing state of art infrastructure and resources.
I wish to express a special thanks to my project guide Miss Snehal Pawar
ma‟am without her guidance the project may have not taken shape and a
sincere thanks to Director of the college “Bhagesh Sankhe sir” for his
continuous assistance and motivation.
Finally I would like to thanks all those who have directly or indirectly
helped me towards the execution of this project with full sincerity.
Sincere thanks to all.
PANKAJ J. SHUKLA

TABLE OF CONTENTS
Chapter No. Contents Page no.
1 Introduction 1-5
1.1 Background of the study 6
2 Review of literature 7-9
3 Project objectives 10
4 Project plan 11
5 Methodology of the research 12-15
5.1 Research design 13
5.2 Data collection method 13-15
6 Case study -Developing appropriate leadership
styles
16-22
6.1 Introduction 16
6.2 Management and leadership 17-18
6.3 Leadership styles 18-20
6.4 Leadership styles in action 20
6.5 Factors influencing leadership styles 21
6.6 Conclusion of the case study 22
7 Interpretation 23-33
7.1 Leadership theories by gurus 23-24
7.2 Leadership and leadership styles 24-26
7.3 Leadership approach 27-29
7.4 The effects of leadership styles on the
organization-William Pirraglia
29-30
7.5 How does a leadership style influence
organizational productivity?
30-32
7.6 How managers with different leadership style
motivate their teams?
32-33
7.7 Positives and Negatives of Leadership styles
with examples
33-40
8 Findings 41-43
9 Conclusion 44
10 Bibliography 45-46

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Chapter 1
Introduction
Leadership and the different associated styles have an immense impact on how
employees perform and grow, to lead positive organisational outcomes. The
purpose of this study would be to investigate the impact of leadership styles on
motivation and commitment, as a predictor of group or organizational
performance. For ages, Leadership has been a subject of much debate and
deliberation and how the different styles of leadership evoke different responses
from followers. In corporate context the dynamics of these two entities „the
leader‟ and „the led‟ play a key role in shaping the destiny of the organisation.
The study followed the positivist paradigm which provided an objective reality
against which claims were compared and truth was ascertained. In this
descriptive study, the goal has been to discover the pattern of cause and effect,
which can predict phenomenon. As a part of the descriptive research
methodology, data collected has been subjected to the thinking process in terms
of ordered reasoning. A quantitative research approach has been used to analyse
the hypothesized relationships.
The concept of leadership
The global financial crisis has resulted in a wave of unprecedented challenges to
the world‟s economic & political order. In a situation of turbulence, the one key
factor that can make a difference, through foresight and dexterity, is Leadership.
However, as this study was initiated and probe started, to gain conceptual
clarity, the results are baffling. The search for the right definition has been age-
old. According to Bass and Avolio (1997), a single specific definition of
leadership is a very complex task as literature and studies on this topic are varied
and there is no definition which is widely and universally accepted. Some
definitions describe leadership as an act of influence, some as a process and yet
others have looked at a person‟s trait qualities.
Nel et al. (2004) define leadership as the process whereby one individual
influences others to willingly and enthusiastically direct their efforts and
abilities towards attaining defined group or organisational goals. Cole (2005)
defines Leadership as a dynamic process whereby one man influences other to
contribute voluntarily to the realization and attainment of the goals objectives;
aspiration of values of the group that is representing the essence of Leadership is
to help a group or an Organisation to attain sustainable development and growth.

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There are various styles of leading, such as transformational, transactional and
laissez-faire.
1. Autocratic Leadership
Autocratic leadership style is centred on the boss. In this leadership the leader
holds all authority and responsibility. In this leadership, leaders make decisions
on their own without consulting subordinates. They reach decisions,
communicate them to subordinates and expect prompt implementation.
Autocratic work environment does normally have little or no flexibility.
In this kind of leadership, guidelines, procedures and policies are all natural
additions of an autocratic leader. Statistically, there are very few situations that
can actually support autocratic leadership.
Some of the leaders that support this kind of leadership include: Albert J Dunlap
(Sunbeam Corporation) and Donald Trump (Trump Organization) among others.
2. Democratic Leadership
In this leadership style, subordinates are involved in making decisions. Unlike
autocratic, this headship is centred on subordinates‟ contributions. The
democratic leader holds final responsibility, but he or she is known to delegate
authority to other people, who determine work projects.
The most unique feature of this leadership is that communication is active
upward and downward. With respect to statistics, democratic leadership is one
of the most preferred leadership, and it entails the following: fairness,
competence, creativity, courage, intelligence and honesty.
3. Strategic Leadership Style
Strategic leadership is one that involves a leader who is essentially the head of
an organization. The strategic leader is not limited to those at the top of the
organization. It is geared to a wider audience at all levels who want to create a
high performance life, team or organization.
The strategic leader fills the gap between the need for new possibility and the
need for practicality by providing a prescriptive set of habits. An effective
strategic leadership delivers the goods in terms of what an organization naturally
expects from its leadership in times of change. 55% of this leadership normally
involves strategic thinking.

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4. Transformational Leadership
Unlike other leadership styles, transformational leadership is all about initiating
change in organizations, groups, oneself and others.
Transformational leaders motivate others to do more than they originally
intended and often even more than they thought possible. They set more
challenging expectations and typically achieve higher performance.
Statistically, transformational leadership tends to have more committed and
satisfied followers. This is mainly so because transformational leaders empower
followers.
5. Team Leadership
Team leadership involves the creation of a vivid picture of its future, where it is
heading and what it will stand for. The vision inspires and provides a strong
sense of purpose and direction.
Team leadership is about working with the hearts and minds of all those
involved. It also recognizes that teamwork may not always involve trusting
cooperative relationships. The most challenging aspect of this leadership is
whether or not it will succeed. According to Harvard Business Review, team
leadership may fail because of poor leadership qualities.
6. Cross-Cultural Leadership
This form of leadership normally exists where there are various cultures in the
society. This leadership has also industrialized as a way to recognize front
runners who work in the contemporary globalized market.
Organizations, particularly international ones require leaders who can
effectively adjust their leadership to work in different environs. Most of the
leaderships observed in the United States are cross-cultural because of the
different cultures that live and work there.
7. Facilitative Leadership
Facilitative leadership is too dependent on measurements and outcomes – not a
skill, although it takes much skill to master. The effectiveness of a group is
directly related to the efficacy of its process. If the group is high functioning, the
facilitative leader uses a light hand on the process.
On the other hand, if the group is low functioning, the facilitative leader will be
more directives in helping the group run its process. An effective facilitative

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leadership involves monitoring of group dynamics, offering process suggestions
and interventions to help the group stay on track.
8. Laissez-faire Leadership
Laissez-faire leadership gives authority to employees. According to azcentral,
departments or subordinates are allowed to work as they choose with minimal or
no interference. According to research, this kind of leadership has been
consistently found to be the least satisfying and least effective management
style.
9. Transactional Leadership
This is a leadership that maintains or continues the status quo. It is also the
leadership that involves an exchange process, whereby followers get immediate,
tangible rewards for carrying out the leader‟s orders. Transactional leadership
can sound rather basic, with its focus on exchange.
Being clear, focusing on expectations, giving feedback are all important
leadership skills. According toboundless.com transactional leadership
behaviours can include: clarifying what is expected of followers‟ performance;
explaining how to meet such expectations; and allocating rewards that are
contingent on meeting objectives.
10. Coaching Leadership
Coaching leadership involves teaching and supervising followers. A coaching
leader is highly operational in setting where results/ performance require
improvement. Basically, in this kind of leadership, followers are helped to
improve their skills. Coaching leadership does the following: motivates
followers, inspires followers and encourages followers.
11. Charismatic Leadership
In this leadership, the charismatic leader manifests his or her revolutionary
power. Charisma does not mean sheer behavioural change. It actually involves a
transformation of followers‟ values and beliefs.
Therefore, this distinguishes a charismatic leader from a simply populist leader
who may affect attitudes towards specific objects, but who is not prepared as the
charismatic leader is, to transform the underlying normative orientation that
structures specific attitudes.

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12. Visionary Leadership
This form of leadership involves leaders who recognize that the methods, steps
and processes of leadership are all obtained with and through people. Most great
and successful leaders have the aspects of vision in them.
However, those who are highly visionary are the ones considered to be
exhibiting visionary leadership. Outstanding leaders will always transform their
visions into realities.

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1.1 Background of the Study
Leadership varies in definition due to its complexity and diverse contexts
ranging from business to politics and organization. Most leadership gurus have
discrepancies in their definition and none seem to share the same view about its
actual meaning. However, one of the foremost thinkers of leadership and
leadership development, John Adair, describes leaders as a fore shadow or
reflection of what they expect from their subjects. He argued that leaders must
personify the qualities desired; he noted that for a leader to be successful, one
has to attend to the task at hand, the needs of the team and the needs of the
individual. (John Adair's Definition of leadership, 2007)
My topic “A study of leadership styles in organization” is conducted to know
the various types of leadership styles, their qualities, their way of leading, the
relationship that exists between a leader and followers, the various approaches
of leadership, practices and principles of a leader etc. A leader is one who leads
the whole group they have an impact on the performance and productivity of the
followers which in turn decide the progress of the whole organization.
The study is conducted with some objectives like;
1. To study the different leadership styles in organizations.
2. To know the type of existing leadership styles.
3. To know the various characteristics of different leadership styles.
4. To know the nature of different leaders.
5. To know the roles of leader in an organization.
6. To study and identify the kind of relationship exists between leaders and
their followers.
7. To know the importance of leadership in an organization.
8. To know the perception of organization toward different leadership styles.
I have used case study of Tesco “Developing appropriate leadership styles” as a
primary source of information to know about the various leadership styles and
their development. Secondary data has been collected from internet and books.

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Chapter 2
Review of literature
Leadership is a social influence process in which the leader seeks the voluntary
participation of subordinates in an effort to reach organization goals. A leader
can be defined as a person who delegates or influencing others to act so as to
carry out specified objectives. Today‟s organizations need effective leaders who
understand the complexities of the rapidly changing global environment. If the
task is highly structured and the leader has good relationship with the
employees, effectiveness will be high on the part of the employees. The study
further revealed that democratic leaders take great care to involve all members
of the team in discussion and can work with a small but highly motivated team.
Barchiesi measured the leadership effectiveness and leadership role and its
influence on performance, leadership behaviours, and attitudes. They found that
high leadership indexes are not related to past performance records but
associated both to higher potentiality of enhanced performance and to higher
reputation of organizations, pointing in the direction of a meaningful influence
of behavioural complexity and dynamics on the leadership perceived level. A
mechanism of leadership styles affecting team innovation in the private research
centres investigated the relationship between different leadership styles and
team innovation with the mediating effects of knowledge sharing and team
communication.
Voon found out the influence of leadership styles on employees‟ job satisfaction
in public sector organizations in Malaysia. They used the factors like salaries,
job autonomy, job security, workplace flexibility. Out of these factors, they
found that transformational leadership style has a stronger relationship with job
satisfaction.
Chung – Hsiung Fang identified that leadership style can affect organizational
commitment and work satisfaction positively and work satisfaction intern can
affect organizational commitment and work performance positively. Leadership
is largely culturally orientated, embracing traditional beliefs, norms and values
and a preoccupation.
According to Goh Yuan study, leadership style is significantly influenced by the
leader‟s immediate and extended family, clan and tribe. This study finds the
linkages between organizational leadership and business ethics, thereby making
a contribution toward increasing the quality of organizational life which may
have a positive influence on both members of the organization and the wider

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community. Lu Ye study explained employees‟ perceptions about transactional
or transformational leadership style of executive, both have highly positive
correlation with perceptions about executive‟s encouragement factors of its
innovation climate.
Podsakoff said that leadership behaviour can affect trust and satisfaction of
employees to organization and organizational citizenship behaviour further
enhances the relationship between leadership style and organizational
commitment directly. Transactional leadership is considered as the
subordinates‟ rewards through their efforts and performance. Guang-yi
compared the Transactional leadership. Transformational leadership theory is
deemed to improve the subordinates‟ performance by changing the motives and
values of employees.
Bass divided leadership style into transformational leadership and transactional
leadership. Transformational leadership has the characteristics of individual
influence, spiritual encouragement and intellectual stimulation. They often take
individual into consideration, establish vision and aim inside, create open
culture, trust the staff to reach their goals and give full play for staff's potential
Transactional leadership is focused on staff‟s basic and external demand, the
relationship between leaders and subordinates is based on the contract. They
tend to attain organizational goal by pacific job roles and mission design, their
basic purpose is to maintain a stable organization.
Podsakoff said that leadership behaviour can affect trust and satisfaction of
employees to organization and organizational citizenship behaviour further
enhances the relationship between leadership style and organizational
commitment directly.
Leadership style is the relatively consistent pattern of behaviour that
characterizes a leader. Today‟s organizations need effective leaders who
understand the complexities of the rapidly changing global environment.
Different leadership styles may affect organizational electiveness or
performance. According to the Oladipo, the success or failure of proper
organizations, nations and other social units has been largely credited to the
nature of their leadership style,
Jeremy explained in manufacturing company, leadership is really a process for
impacting on others commitment towards recognizing their full potential in
achieving goals, vision with passion and integrity. The study also revealed that
the associations between leader and worker give additional factor employees‟

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satisfaction which is considerably affected through the leadership style adopted
by the leader. However from the available literature we can summarize the
different dimensions of leadership styles and their effect on employee
satisfaction, team work, organizational change and employee performance.
Elance & Aggarwal (1975) investigated the leadership behavior taking different
variables affecting the leadership style along with delegation of authority of 123
executives from public and private sector. They found that 67% executives in
private sector and 57% in public sector units have employed democratic
decision style or leadership.
Norman (1970), the women in leadership position were found by Norman to be
women of high intelligence, confidence, composed, preserving, experimenting,
liberal, socially precise, self-motivated and calculating, with an intellectual
approach to situations. They could maintain cordial relations with their
superiors. He conducted a study of women in leadership position in north
California.
Singh (1978), in a study of leadership behaviour found that total leadership was
significantly related to the four personality factors: outgoingness, intelligence,
emotional stability and assertiveness. He conducted a study of leadership
behaviour of head of secondary school in the state of Haryana.
Noel. M Tichy, David.O. Ulrich (1984), author purport that a new brand of
leadership-transformational leadership is the key to revitalizing large U.S
corporations such as general motors, AT&T, general electric etc. Based on the
premise that the pressure for basic organizational change will intensify, not
diminish, over the years, they argue that transformational leaders must develop a
new vision for the organization. Mobilize employees to accept and work towards
achieving the new vision and institutionalize the needed changes. Unless the
creation of this breed of leaders becomes a national agenda, the authors are not
very optimistic about the revitalization of the U.S economy. Based on the
premise that the pressure for basic organizational change will intensify, the
authors concluded that transformational leadership is required for revitalizing
our organizations. Ultimately, it‟s up to our leaders to choose the right kind of
leadership and corporate lifestyle.

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Chapter 3
Project Objectives
A study or research is always conducted with some objectives because the
project undertaken without any objective is rendered meaningless considering
this I have undertaken my project with some objectives.
Following are the objectives of my project:-
1. To study the different leadership styles in organizations.
2. To know the type of existing leadership styles.
3. To know the various characteristics of different leadership styles.
4. To know the nature of different leaders.
5. To know the roles of leader in an organization.
6. To study and identify the kind of relationship exists between leaders and
their followers.
7. To know the importance of leadership in an organization.
8. To know the perception of organization toward different leadership styles.

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Chapter 4
Project plan
A project plan is the key to a successful project and is one of the most important
step for initiating a study or research. Flow-chart mentioned below is depicting
project plan of my research:-
Selecting research topic
Defining research problem
Objectives of the research
Literature survey
Formulation of research hypothesis
Interpretation and findings
Conclusions

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Chapter 5
Methodology of the research
A research method is a systematic plan for conducting research. Sociologists
draw on a variety of both qualitative and quantitative research methods
including experiments, survey research, participant observation and secondary
data. Quantitative method aim to classify features, count them and create
statistical model to test hypothesis and explain observations. Quantitative
methods aim for a complete, detailed description of observations including the
context of events and circumstances.
Research comprises "creative work undertaken on a systematic basis in order to
increase the stock of knowledge, including knowledge of humans, culture and
society, and the use of this stock of knowledge to devise new applications. “It is
used to establish or confirm facts, reaffirm the results of previous work, solve
new or existing problems, support theorems, or develop new theories. A
research project may also be an expansion on past work in the field. To test the
validity of instruments, procedures, or experiments, research may replicate
elements of prior projects, or the project as a whole.
I had used descriptive research method in order to study “The leadership styles
in organizations.” Descriptive research is the one which is description of the
state of affairs as it exists at present. It include survey and fact finding enquiries
of different kinds. There searcher has no control over the variables. The
researcher used this research design to find out respondent attitude and opinion
about products offered.
So I had used descriptive research method to find out the various types of
leadership styles in organizations. Assigned project task is completed by going
through internet links, books and through various reports and research already
conducted earlier by different researcher.

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The project report is entitled here is purely descriptive study and does not
include any predictions. The project is based on various references taken from
magazines, links and reports mentioned in the bibliography at the end of the
assign project.
5.1 Research design
The research design refers to the overall strategy that you choose to integrate the
different components of the study in a coherent and logical way, thereby,
ensuring you will effectively address the research problem; it constitutes the
blueprint for the collection, measurement, and analysis of data.
Exploratory research has been used for this study. It involves gathering
information and developing ideas about a relatively under-researched problem
or context. The value of exploratory research could be that it clears the ground
for other kinds of research, or that it throws up interesting differences and
comparisons between more well-studied topics, and those that are less well-
studied.
The prime purpose is to develop understanding in an area that is little
understood. This kind of research has the primary objective of the development
of insight into the problems. It studies the main area where the problems lies and
also tries to evaluate appropriate courses of action.
5.2 Data collection method:-
Data collection is a process of collecting information from all the relevant
sources to find answers to the research problem, test the hypothesis and evaluate
the outcomes. Data collection methods can be divided into two categories:
Primary methods of data collection and Secondary methods of data collection.
Primary Data Collection Methods
Primary data collection methods can be divided into two groups: quantitative
and qualitative.
 Quantitative data collection method is based in mathematical calculations
in various formats. Methods of quantitative data collection and analysis

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include questionnaires with closed-ended questions, methods of
correlation and regression, mean, mode and median and others.
Quantitative methods are cheaper to apply and they can be applied within
shorter duration of time compared to qualitative methods. Moreover, due
to a high level of standardisation of quantitative methods, it is easy to
make comparisons of findings.
 Qualitative data collection, on the contrary, does not involve numbers or
mathematical calculations. Qualitative research is closely associated with
words, sounds, feeling, emotions, colours and other elements that are non-
quantifiable. Qualitative studies aim to ensure greater level of depth of
understanding and qualitative data collection methods include interviews,
questionnaires with open-ended questions, focus groups, observation,
game or role-playing, case studies etc.
Secondary Data Collection Methods
Secondary data is a type of data that has already been published in books,
newspapers, magazines, journals, online portals etc. There is an abundance of
data available in these sources about your research area in business studies,
almost regardless of the nature of the research area. Therefore, application of
appropriate set of criteria to select secondary data to be used in the study plays
an important role in terms of increasing the levels of research validity and
reliability.
1. Primary data:
The source of primary data used in my project is the Case study. Primary are the
raw data like raw material. Primary data are according to object of investigation
and used without correction. The collection of primary data requires large sum,
energy and time. Precautions are not necessary in the use of the primary data.
For this study the primary data is collected in the following ways:
• Through observations
• Through studying Case study

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2. Secondary data:
The secondary data is collected about the study is from various sources where
information is available like,
a) Past researches on the same topic
b) Internet
c) Books
d) Magazines

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Chapter 6
Case- study
Developing appropriate leadership styles
A Tesco case study
6.1 Introduction
Tesco is a customer-orientated business. It aims to offer products that provide
value for money for its customers and to deliver high-quality service. Tesco
wants to attract new customers, but it also wants to keep its existing customers
happy. Building customer loyalty is a cost-effective strategy to grow the
business. This is because satisfied customers are a good advert for the business.
Tesco has more than a 30% market share of the UK grocery market; nearly
double that of its nearest rival. In its 2009/2010 financial year, Tesco earned
revenues of £38.6 billion in the UK and employed more than 280,000 people. To
keep at the top of its game and to maintain its number one spot in the market, the
company needs skilled staff at all levels and in all roles.
Roles in Tesco
Roles in Tesco range from business development, supply chain management and
marketing to finance, store operations and personnel management. Each area of
expertise requires leadership and management skills. Tesco aims to develop the
leadership qualities of its people throughout the organisation, from
administrators and customer assistants to the board of directors. It adopts a
similar approach to leadership development for staff at all levels. This is in line
with Tesco‟s employment philosophy: „We believe in treating each other with
respect, with everyone having an equal opportunity to get on, ensuring
Tesco is a great place to work.’
This case study will show how Tesco‟s leadership framework is fundamental to
developing the qualities of leadership needed at every level in the business.

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6.2 Management and leadership
There is a difference between management and leadership. Management is about
getting things done. Managers organise human and physical resources to achieve
business aims and objectives. Leadership is about influencing, motivating and
inspiring people. It is about coaching and developing people, treating them with
respect but challenging them. Leaders seek to create strong teams, with people
committed to the organisation‟s overall goals.
The process of managing starts with the target or objective to be achieved. A
manager must decide on the appropriate approach for reaching that target. The
manager then needs to communicate this approach clearly to his or her team and
to allocate tasks to each team member. Task allocation and delegation of
responsibility is part of the management function. However, other factors will
also have an influence on whether the target is achieved, including the task in
hand, the skills of the team and the style of leadership.
The style of leadership can vary depending on the task. Some managers allow
teams to take charge of their own decision-making for many tasks. Team leaders
will set the objectives but empower team members to decide how these
objectives are achieved. This has several advantages. It helps to motivate
individuals in the team and it draws on the expertise of the members of the team.
Berian is a bakery manager
Berian manages a team of 17 in a Tesco in-store bakery. One of the key
challenges of Berian‟s job is to ensure his team produces the right products to
meet demand at key times. His usual management approach is to allow the team
to take responsibility for achieving the desired result. In this way, the team not
only buys into the activity, but also develops new skills. For example, when the
bakery expanded its product range and Berian needed to ensure that all the
products would be on the shelves by 8.00 am, rather than enforce a solution, he
turned to the team for ideas. The team solved the problem by agreeing to split
break times so that productivity could be maintained. Berian‟s approach
produced a positive outcome and increased team motivation.

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Tesco‟s leadership framework sets out not just the skills and competencies but
also the personal characteristics and behaviours it expects of its leaders. Tesco
looks for managers who are positive, confident and genuine, with the capacity to
inspire and encourage their teams. A key part of Tesco‟s programme for
building leaders is encouraging self-review and reflection. This allows staff to
assess their strengths and find ways of demonstrating the characteristics that are
vital to the long-term development of the business.
6.3 Leradership styles
The business writers Tannenbaum and Schmidt categorised different leadership
styles. They suggested that leadership styles could be explained on a scale
ranging from „autocratic‟ through „democratic‟ to „laissez-faire‟.
The autocratic or authoritarian style is characterised by an „I tell‟ philosophy.
Autocratic leaders tell their staff what to do. This can give a business clear
direction but it may also lead managers to undervalue or ignore input from their
teams. However, an autocratic approach is appropriate in some situations. It is
valuable when the business faces a crisis or when an urgent problem arises that
requires an immediate response.
Stephen is a Tesco store manager
Stephen is the manager of a medium-sized Tesco store. He has been with the
company for over 10 years and his first job was filling shelves in the dairy
section. He is currently working towards the Tesco foundation degree. Stephen
directly manages a team of around 20 departmental managers, who between
them are responsible for almost 300 people. Stephen‟s leadership style is usually
to allow his managers to make most operational decisions. However, if, for
example, an accident occurs in the store, Stephen may take control to ensure a
prompt and co-ordinated response.

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There are some leadership approaches that sit between autocratic and
democratic. These styles allow team participation up to a point. However, the
manager reserves the right to make the final decision.
Managers adopting an „I sell‟ philosophy will try to persuade their teams to
accept their viewpoint.
Managers adopting an „I consult‟ approach will seek the opinions of
subordinates before taking a decision. This is moving closer to a democratic
style of management.
The best managers adopt leadership styles appropriate to the situation. Stephen‟s
preferred leadership style is to take a democratic approach. He consults widely
as he feels that staff responds better to this approach. For example, when
planning a major stock reduction programme, he encourages his managers to put
forward ideas and develop plans. This increases team motivation and encourages
creativity. Some mistakes may be made, but they are used as a learning
experience. However, as a store manager, Stephen deals with many different
situations. Some may be business critical and it is important that he responds to
these in the most appropriate way. In such situations, Stephen may need to adapt
his leadership approach and exert more authority.
Martin is Tesco's Programme Manager for Education and Skills
The democratic approach is characterised by an „I share‟ philosophy. Decisions
are made within teams, with each member having equal input. Martin is Tesco‟s
Programme Manager for Education and Skills in the UK. He has a range of
responsibilities associated with people, processes and standards. Martin may use
a democratic approach when setting training budgets. Managers can suggest
ideas to make cost savings and they can jointly discuss their proposals with
Martin. By empowering his managers, he gets them to take ownership of the
final agreed budget.
Laissez-faire is at the other end of the spectrum from autocratic. A laissez-faire
manager takes a „hands-off‟ approach and trusts teams to take appropriate

20
decisions or actions with broad agreed boundaries. For example, Martin might
leave an experienced departmental manager to develop a budget. This could be
because he trusts that the manager has a good knowledge of the needs of the
department and of the business.
6.4 Leadership styles in action
Although each person will have their own preferred leadership style, the most
effective leaders adopt a style appropriate for the situation. They will consider
several factors in deciding which style to use:
The task - Is it business critical? Must a decision be made immediately? What
will be the potential impact on the business?
The team - Does it have the right skills and resources? Is it used to making
decisions?
Tradition - What has been the norm in the past?
For example, Martin uses a more authoritarian style if something needs
achieving in a particular way or in a very quick timeframe. Sometimes budgets
need to be reduced quickly in order to make cost savings. Martin will tell
managers what needs to be done and by when, so that they can then resubmit
their budgets in line with expectations.
Stephen regards inspiring, guiding and influencing his staff as an important part
of his role. Sometimes he may need to inform his teams about a new in-store
innovation or corporate initiative. Even though this is a 'tell' situation, Stephen
aims to 'sell' the idea. He tries to ensure that staff understands why it is
necessary. If his people are able to give their opinions, it is more likely that they
will readily support the initiative.
Managers have to be aware of the possible consequences of using the wrong
style in a particular situation. For example, Berian would not adopt a laissez-
faire approach with a new member of the bakery team. If the employee is not
given proper instruction before operating the baking equipment, the bread might
be overcooked. Employees might also injure themselves if they don't use the
equipment properly. In this situation, it is essential to adopt a 'tell' approach.

21
6.5 Factors influencing leadership style
People at each level of responsibility in Tesco, from administrators and
customer assistants to directors, face different types of decisions. Each comes
with its own responsibilities and timescales. These will influence the most
appropriate leadership style for a particular piece of work or for a given project
or audience.
Tesco managers have responsibilities for „front of house‟ (customer-facing) staff
as well as „behind the scenes‟ employees, such as office staff. Before making a
decision, the manager will consider the task in hand, the people involved and
those who will be affected (such as customers). Various internal and external
factors may also affect the choice of leadership style used.
Internal factors include the levels of skill that employees have. Large teams may
have members with varying levels of skill. This may require the manager to
adopt a more directive style, providing clear communication so that everyone
knows what to do to achieve goals and tasks. On the other hand, team leaders
may take a more consultative approach with other managers of equal standing in
order to get their co-operation for a project. External factors may arise when
dealing with customers. For example, Berian may need to use a persuasive style
to convince a customer to accept a replacement product for an item that is
temporarily out of stock.
Critical success factors (CSFs)
In order to build a sustainable and robust business, Tesco has set out critical
success factors (CSFs). These are linked at all levels to its business goals. Some
CSFs apply to all employees. These are:
 Customer focus – to ensure delivery of „every little helps‟
 Personal integrity – to build trust and respect
 Drive –to achieve results, even when the going gets tough
 Team working – to ensure positive relationships in and across teams
 Developing self/others – to motivate and inspire others.

22
 Others are specific to the level of responsibility the person or role has and
covers:
 Analysing and decision making
 Managing performance
 Managing change
 Gaining commitment.
By meeting the requirements of these CSFs, Tesco managers can build their
leadership skills & contribute to the growth of the business.
6.6 Conclusion of the case study
Tesco leaders need to be inspirational, creative and innovative, ready to embrace
change and with a long-term vision for achievement. Effective leaders manage
by example and in doing so, develop their teams. Tesco encourages all its
managers to lead by example. It requires leaders who can motivate, problem
solve and build great teams. Tesco employs people in a wide range of roles and
provides a career structure which allows employees to progress through the
organisation. Tesco‟s process of 360-degree feedback allows its employees to
reflect on their own progress and improve. Even if someone starts as working in
store filling shelves – as did Stephen – they can progress through the
organisation into positions of authority and responsibility.

23
Chapter 7
Interpretations
In this chapter, the theoretical framework is presented. The theoretical
framework has been chosen on the basis of the importance of topics which are
related to the research subject. For instance, managerial approaches induce the
actions of employees toward the organization and it affects productivity in the
long run. However, as one of the most ambiguous topics, several leadership
theories have emerged over the years. The theories of leadership will be
discussed in length in this chapter; these theories are needed to be studied in
order to attain the objective of this research.
7.1 Leadership theories by gurus
Over time, several models of leadership have emerged, listed below are the main
leadership theories: relationship, behaviour, participation, management,
situations, contingency, trait and the great man theory
Relationship theories
This theory is also known as the transformational theories; it concentrates
(Northouse, 2007) on the connection developed between leaders and their
subordinates. These leaders (transformational leaders) inspire their subordinates
by motivating them to realize the importance of the task at hand. These leaders
possess high moral standards and want their subordinates to reach the peak of
their potential. (Cherry)
Behavioural theories
This school of thought promotes the idea that great leaders are not born but
made. With deep root in behaviourism, these leaders (behavioural leaders)
concentrate on actions rather than internal state. In line with this theory, anyone
can become a great leader either by teaching or by observing. (Cherry)
Participative theories
This theory considers the input of its associates by stipulating the ideal
leadership style and defining it. It promotes the inclusion from members by
making them feel relevant and important, especially in the areas of decision
making. However, the leaders reserve the right to object suggestions from any
member. (Cherry)

24
Management theories
This theory can also be referred to as transactional theories; it concentrates on
organization, group performance and supervision. The system of rewards and
punishment is highly promoted by this theory. Most organization and businesses
practice management theories, when employees succeed, they are rewarded,
when they fail, punishment are meted out. (Cherry)
Situational theories
In this school of thought, situational variables are the bases of every action
taken. For example, when a leader is the most experienced, the leader is in the
position of calling all the shots. Different styles of leadership can be applied to
different situations. (Northouse, 2007)
Contingency theories
This theory focus on variables that are environmentally related which
determines the style of leadership that fits the situation best. It also promotes the
idea that no single leadership style is the best, rather success are based on
variables, subordinates and type of the situation. (Northouse, 2007)
Trait theories
With similarities in some ways to the Great man theories, it promotes the idea
that leadership is inborn. It means that a successful leader must inherit certain
quality that produces greatness. (Northouse, 2007)
Great Man theories
This theory assumes that great leaders are not made but born. It promotes the
mentality that leaders inherit inborn leadership skills. In line with this theory,
you can be a born leader or not. (Northouse, 2007)
Having studied the aforementioned theories, I got some idea about various
theories conducted on leadership earlier. Now I got the full understanding of the
research topic.
However, most gurus stick and make reference to these theories.
7.2 Leadership and leadership styles
Since the 19th century, there have been two approaches to the definition of
leadership, which are trait and process approaches. The trait approach has over
the century proposed the idea that leadership is inherent while the process

25
approach shows that leadership is a transactional event, which is modern and
more logical. These systems have theoretically tried to define and interpret
leadership in a logical way of reasoning. According to Northouse, he outlined
four different criteria pertaining to leadership, and they are: process orientation,
influence, group context, and goal attainment. (Northouse, 2007)
Before proceeding to the leadership style that exists, the definition of leadership
has to be understood. However, there are countless definitions of leadership by
different gurus. This writer prefers one of the recent and acceptable definitions
by Northhouse; he defines leadership as a process in which a person influences a
group of individual to achieve a common goal. Considering this definition, some
major words standout, and they are: process, influence and goal.
Referring to leadership as a process negates old assumptions that leadership is
inherent. Also mentioning influence is noteworthy as it is practically impossible
to make effective changes without the power of influence. And finally, goals are
the motivation or driving force behind every organization or institution. These
facts make this definition concise yet comprehensive and acceptable.
(Northouse, 2007)
An understanding of various leadership styles will let the researcher make the
very best recommendation for the case company. Like leadership theories, there
are also several leadership styles that are been practiced. Below are the listed
styles of leadership:
Transactional Leadership
This form of leadership promotes the idea that employees are in subjection to
their superiors. It also operates under the rule of reward and punishment.
Bureaucratic Leadership
This form of leadership ensures absolute compliance to procedures and rules to
the last letter. Employees usually appreciate this leadership in the long run
especially in a high risk working environment such as a chemical plant or a
factory. (Leadership Styles Choosing the Right Style for the Situation, 2012)
Charismatic Leadership
With resemblance to transformational leadership, a charismatic leader usually
focuses on them. Although employees might frown at this attitude, the
difference between transformational leadership is the motive behind the method.
(Leadership Styles Choosing the Right Style for the Situation, 2012)

26
Task oriented leadership
Under this leadership, attention is focused on accomplishing the task. One
advantage of this leadership is that deadlines are usually met, however task
oriented leaders don‟t usually care about their employees. (Leadership Styles
Choosing the Right Style for the Situation, 2012)
People oriented Leadership
Team work and creative collaboration is encouraged under this style. Most
employees prefer this style as it carries them along, however it is the opposite of
task oriented leadership and it sometimes put team interest ahead of
organizational goals. (Leadership Styles Choosing the Right Style for the
Situation, 2012)
Servant Leadership
These leaders often lead by example, although it is usually admired in politics,
employees prefer a servant leader. This form of leadership is often criticized as
weak. (Leadership Styles Choosing the Right Style for the Situation, 2012)
Autocratic Leadership
With this form of leadership, employees are in absolute subjection to their
superiors. Although decisions are made very quickly and work gets done faster,
suggestions and opinions are rarely appreciated from employees. (Leadership
Styles Choosing the Right Style for the Situation, 2012)
Democratic Leadership
These leaders allow employees in joint critical thinking, yet final decisions are
made by the leaders. (Leadership Styles Choosing the Right Style for the
Situation, 2012)
Laissez-Faire Leadership
Coined from the French phrase that means “allow to act”, this leadership style
allows employees to work on their own with little interference. (Leadership
Styles Choosing the Right Style for the Situation, 2012)
Transformational Leadership
Arguably the most widely acclaimed leadership style as the best in business and
organizational leadership. Although, it displays traits of other leadership styles,
yet it remains unique by changing it mode of operation from time to time. That

27
explains the reason it stood the test of time, in a nut shell, it breeds happy
employees and happy leaders. (Leadership Styles Choosing the Right Style for
the Situation, 2012)
7.3 Leadership approach
Northouse continued in his research on leadership and came up with approaches
to leadership. These approaches give deeper understanding to leadership and
make leadership concept easily comprehensible. Moreover, these approaches
provide a direct understanding of leadership principles. The following are the
approaches to leadership: style approach, situational approach, trait approach
and skill approach. (Northouse, 2009) These approaches are explained below.
Situational approach: - Although this approach focuses mostly on event as it
occurs, it extensively applied during training and development. In this approach,
the leader examines the situation and applies the desired style to the followers.
Moreover, the leaders have the responsibility of determining the level of
development of employees on a particular task. The table below shows the
strength and weakness of situational approach. (Northouse, 2009)
Strength and weakness of Situational approach
STRENGHTH WEAKNESS
The flexibility of the leader is highly
stressed.
It is criticized for not addressing the
issue of one to one.
Mostly used in training and
development.
Obscurity of development levels.
The prescriptive value is very high. Obscurity of commitment.
It is practically applicable in all
contexts.
The prescription of models not fully
substantiated.
The style of operation makes it unique. Unsubstantiated published research
findings.
Style approach: -
This approach is concentrated on the action of the leader, how the leader leads
and the leader‟s behaviour. Most researchers studying this approach conclude
that there are two main behaviours of leaders under this approach. The first
behaviour is the task behaviour which facilitates goal accomplishment. The

28
second is the relationship behaviour, this makes subordinates feel at home with
themselves and their co-workers. Moreover, style approach also provides
framework for assessing leadership behaviour. It also reminds leaders that the
task they perform and the relationship they create make lots of impact. The
strength and weakness of style approach is listed below. (Northouse, 2009)
Strength and weakness of Style approach
STRENGTH WEAKNESS
Application is easy. The approach is not employee
oriented.
It is applicable to every action of the
leader.
It provides no replacement system for
future leaders.
Leadership studies give credibility to
the approach.
Lack of consistency in behaviour.
It focuses on organizational goal. Employee‟s interest is limited.
Trait approach: -
Known as one of the oldest approach yet coined from the Great man‟s theory.
This approach assumes that the effectiveness of a leader is dependent on
psychological, physiological or appearance traits. Although it focuses on the
leader, yet it selects the right people. The researchers who came up with this
approach often make a list of attributes that they believe must be possessed by a
great leader. However, trait approach has done little in contributing to the
understanding of leadership as a concept. Below are the strength and weakness
of trait approach. (Northouse, 2009)
Strength and weakness of Trait approach
STRENGTH WEAKNESS
It provides benchmark. There is no end to list of traits.
It focuses on the leader. Lack of situation consideration.
It was one of the pioneers of
leadership study.
Failed the test of time.

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Skill approach:-
This approach concentrates on skills and abilities that can be developed. Under
this approach, the leader use ability and skill to solve problems and accomplish
goals and objectives. Skill acquisition is the major yardstick for measuring a
successful leader under this approach. Below are the strength and weakness of
skill approach. (Northouse, 2009)
Strength and weakness of Skill approach
STRENGTH WEAKNESS
Leadership is centred on skill. Less precision due to boundless skill
It makes leadership available to
everyone as it is attainable.
Skills can be trait-like.
It produces an expert leader. Fails to explain the relationship
between skill and leadership.
It is a consistent approach. There is more to leadership than just
skills.
7.4 The Effects of Leadership Styles on the Organization -by
William Pirraglia
Leaders help set the tone and culture in a business -- and that can be a good or
bad thing. Choose managers with a leadership style that meshes with your
corporate culture for the best results. Leadership styles have significant effects
not only in small businesses but also in the world's largest corporations. These
styles affect everyone from senior management to the newest college intern.
They create the corporate culture that influences the organization and its
performance.
Autocratic Style Effects
Also known as authoritarian leadership, autocratic style clearly defines the
division between leaders and workers. Autocratic leaders make decisions with
little or no involvement from employees. These leaders are supremely confident
and comfortable with the decision-making responsibility for company operating
and strategic plans. Although research indicates that autocratic leaders display
less creativity than more contemporary styles, this style still works when fast

30
decisions must be made without employee involvement. Employees may feel
some disconnect with this style.
Participative Leadership Effects
Also called democratic leadership, this style is usually considered the best
option for most companies. The opposite of autocratic leadership, this style
emphasizes that management offers guidance to its teams and departments while
accepting input from individual staff members. Leaders reserve the right to
make final decisions but encourage feedback, ideas, and suggestions from all
employees. Participative leaders generally have a more content workforce, since
each individual has input into decision-making.
Delegative Leadership Effects
This style, also called laissez-faire leadership, is typically considered the least
effective option. In stark contrast to the other primary styles, delegative leaders
rarely make decisions, leaving this function up to the group. These leaders
seldom offer guidance to the team and delegate decision-making to trusted team
members. While offering few advantages, this style often creates some
disadvantages. Job descriptions and lines of authority become blurred and
confusing. A loss of motivation and positivity often accompanies the confusion
of team members.
Corporate Culture Effects
Also called organizational culture, corporate culture defines "the way we do
things." Leadership styles have strong effects on corporate culture because
employees tend to act in ways that mirror their leaders. Staffs also
subconsciously want to please supervisors and management. Over time, leaders
and employees usually become "comfortable" with each other, which can cause
some "culture friction" when new leaders take over. Every business, regardless
of size, has a culture. It can help or hurt operations, often dependent on the
strength and efficiency of leadership.
7.5 How Does Leadership Style Influence Organizational
Productivity?
The leadership style you use as you lead your business and its employees affects
morale and productivity for everyone in the office. Your leadership style affects
the motivation, effectiveness and productivity of employees. Different types of
leadership styles generate different results. There are times when one type of
leadership style is the overt style in an office, but other styles are incorporated in

31
specific department needs. Understanding how various leadership styles affect
productivity allows leaders to analyse and adapt for effectiveness.
Democratic Leadership Style
The democratic leadership style takes the stance that everyone's opinion counts.
Employees like this style because they feel empowered and engaged in the
success of the company. However, sometimes employee input on major
company decisions can be negative. When one group of employees outvotes
another group, the losing group can harbour resentment because their ideas were
not implemented. The democratic leadership style also creates confusion about
the company's direction because no one is sitting at the helm giving that
direction. Confusion about business direction and leadership negatively affects
productivity.
Coaching Leadership Style
The coaching leadership style has a positive impact on morale and productivity.
Leaders who coach not only encourage team members but also look at what
works and what doesn't to target areas of growth. Employees feel good that
action plans help them improve rather than focus on negative qualities or
performance problems. Employees feel the company is investing in their
success. Coaching doesn't work if it isn't consistent and done as a standard part
of employee training and review.
Pacesetting Leadership Style
The pacesetting leadership style is common where leaders set the bar for
productivity through personal actions. While pacesetters are inspiring, staff can
become burnt out trying to keep up with the leader. This leadership style results
in a lack of motivation because employees feel there is no way to keep up, and
they stop trying. This style can be effective when mixed with coaching
leadership to build employees' skills and abilities to perform at higher levels.
Authoritative Leadership Style
The authoritative leadership style puts lines in the sand and enforces those lines
without flexibility. This leadership style can work in areas of a company such as
sales where a team must hit specific sales goals for company profitability.
However, when the authoritative leadership style is the dominant style in an
office, employees feel fearful that any misstep can result in being fired.
Authoritative leaders need to incorporate other styles such as coaching to help

32
employees define goals and set standards and timelines for improvement to meet
and exceed goals.
Affiliative Leadership Style
The affiliative leadership style focuses on developing friendships among the
team and leaders. This style creates a positive work environment where
employees trust leaders and share details about problems or issues in
departments. However, the affiliative leadership style makes it difficult for
managers to make disciplinary decisions, announce layoffs or bypass a friend for
promotion.
7.6 How Managers with Different Leadership Styles Motivate
Their Teams
There are several different styles of leadership in the corporate world. Each uses
its own particular way to motivate employees. There are general leadership
styles in which managers reach out and motivate their employees to produce at a
high level, and managers incorporate their own personal style when
administering their brand of leadership.
Autocratic Leadership
An autocratic manager is one who rarely seeks input from her employees in
order to make decisions. This kind of management style can be advantageous in
a fast-paced work environment where people need to quickly make the decisions
for daily work tasks. Autocratic managers tend to motivate employees by
establishing confidence in the manager's ability to make accurate and productive
decisions. Employees become comfortable with the manager's knowledge of the
industry and the company processes and derive motivation from the manager's
ability to keep the department focused on achieving company goals.
Democratic Leadership
Democratic leaders let employees get involved in the decision-making process
and often do not make major decisions without the consensus of the staff. The
motivational tactic used by a democratic leader is inclusion: The employees are
part of the decision-making process that keeps the department running smoothly.
Employees take an emotional interest in the success of the department because
they have helped to craft departmental policies and processes.

33
Quiet Leadership
Quiet leaders sit back and allow the staff to make the decisions that affect day-
to-day operations. This kind of managerial approach is most effective with
proactive and highly trained work groups. Quiet leaders motivate their teams by
being a resource for information when needed but allowing the employees to
dictate their own success. If an employee's production starts to drop off, the
quiet leader will offer a developmental program to help get the employee back
on track.
A transformational leader is a charismatic manager who believes he has a vision
for the future of the company that will bring success to the entire staff. He
motivates by trying to get employees enthusiastically on board with his ideas for
the future and then continually uses the vision of a brighter future as the
incentive for employees to be more productive. The transformational leader
creates a comprehensive plan for success that he delivers to employees and
explains how each employee will have a role in the company's success.
7.7 Positives and Negatives of Leadership styles with examples:-
Every company has president, board chairman or leader. For the most ways we
agree that someone individually needs to head our businesses and social
institutions. The leader of any organization expectedly completes his role which
is given by communicating the values of the organization he or she represents.
Leadership skills are required by a manger to operate effectively at a strategic
level and a successful manager will be able to identify personal skills to achieve
strategic ambitions as well manage personal leadership development to support
achievement of strategic ambitions. Where he will be able to evaluate the
effectiveness of the leadership plan and promote a healthy and safe environment
that supports a culture of quality. Leaders have good impact in our daily lives
and futures. In good times and bad, there is always need for strong leadership.
The success of a business or an industry is determined by the leaders it chooses
or inherits. How does someone earn the designation of being a great leader?
History and current experiences provide guidance on how one might develop the
abilities demonstrated by respected leaders.
Autocratic or Authoritarian Leadership
In this type of extreme leadership style, the leader possesses total authority and
exercises complete power over the people.

34
Positives Negatives
Enables leaders to impose their will
and perspective on others.
Does not take others inputs into
consideration.
This style is considered good for
getting routine jobs done by
employees who require close
supervision or in situations where
decisions need to be made quickly.
No one is allowed to make suggestions
or to question the decisions and
instructions of autocratic leaders, even
if it's in the best interest.
People who like order, and set rules
and instructions thrive under this kind
of leadership.
Most creative people resent being
treated this way.
Bureaucratic Leadership
Bureaucratic leaders work upon official rules fixed as duties by higher
authorities and go strictly by the book to apply rules for management and taking
decisions.
Positives Negatives
Such leaders work rigorously to ensure
that the procedures are being followed
precisely by those under them.
A serious drawback of bureaucratic
leadership is that it has no scope for
creativity and flexibility.
They are energetic, full of passion and
believe in motivating others to move
forward.
Can create the impression that a
project would fail or
an organisation would collapse if the
leader abandons the team.
Can be useful in boosting
the organisations standing in the
marketplace and in raising the morale
of the team members at organisations
This leadership style is usually employed by military commanders. North
Korean dictator Kim Jong-un exemplifies this leadership style.

35
Laissez- Faire Leadership
Laissez- faire leadership is based on trust. The leader is available to provide
guidance and furnish the necessary resources only if the need arises.
Positives Negatives
The leaders delegate the responsibility
to take decisions to group members.
People who prefer supervision, careful
monitoring, and clear instructions are
often not comfortable working under
the laissez- faire leadership style.
Allows people to work at their own
pace and provides maximum scope for
innovation and flexibility.
Most effective with self- motivated
employees.
The Indian Prime Minister, Narendra Modi, is often regarded as one of India‟s
most charismatic leaders. His party fought the Uttar Pradesh Assembly elections
in 2017 under his tutelage - highlighting his personal appeal to voters and
recorded the greatest win for any party ever.
Mahatma Gandhi was a laissez- faire leader. Gandhi believed that people should
lead by example and be the change that they wish to see in the world so that
others can follow.

36
Participative or Democratic Leadership
Participative or democratic leaders give importance to the opinion of the team
members and engage them in the decision- making process. This is normally
used when you have part of the information, and your employees have other
parts.
Positives Negatives
Boosts the morale of the team
members as when the leader considers
their inputs, it makes them feel valued
and satisfied.
The leaders reserve the right to take
final decisions.
Makes employee‟s more willing to
accept changes as they consider
themselves a part of the decision-
making process.
Slows down the decision- making and
can even affect efficiency.
Also marred by the likelihood that
team members may not have adequate
expertise to provide high-quality input.
Relationship- oriented Leadership
Such leadership is focused on skilled interaction with people. Relationship
oriented leaders inspire and motivate subordinates to achieve the team‟s
or organisation‟s targets.
Positives Negatives
Leaders assist subordinates in feeling
positive about their career prospects
and in navigating career opportunities
through the quality of their work.
Sometimes relationship oriented
leaders may get carried away and put
too much emphasis on the
development of their team members
than the project itself.
They are approachable, friendly,
understand the needs of the employees
These leaders are dependent on the
subordinates and seek their loyalty.
Carlos Ghosn, the chairman, and CEO of Renault believes that change in
the organisation‟s culture should not be forced by the top management but
should come from the bottom level. He believes in empowering employees to
take decisions and is quite reasonable when dealing with the subordinates.

37
and try to fulfil their expectations.
People usually like working under
such leadership and their productivity
is also higher, as these leaders make
the people want to be a part of the
team.
A good example of relationship-oriented leadership is Indian cricket team‟s ex-
captain, Mahendra Singh Dhoni who is known for encouraging players and has led the
team to many unbelievable victories.
Servant Leadership
Servant leaders lead by example and work behind the stage. Servant leadership
is best suited for people who provide their services to non- governmental
charity organisations or community development programmes.
Positives Negatives
They are generous, have high integrity
and work hard to fulfil all the
requirements of their team.
This type of leadership style is
considered unfit for competitive
tournaments.
They also involve the whole team in
the decision- making process and give
equal credits to all team members for
goals that are successfully achieved.
Servant leaders hesitate to take credits
and recognition for their work.
Servant leaders are said to have strong
ethics and values.

38
Mother Teresa is the perfect example of a servant leader. She invested her
entire life to the service of people and her motives behind her desire to help
others are unquestionable. She acquired mass- scale popularity over time, but
she never strived to achieve personal recognition.
It is usually considered the best leadership style to be used in business
scenarios. They employ empathy and rapport to engage followers.
Positives Negatives
These leaders not only expect the best
from their teams but also work hard to
be the best at everything that they do.
May lack managerial skills at the
practical level and require assistance
from the staff.
Known for taking new initiatives and
promoting the flow of innovative
ideas.
Good at increasing team engagement
and inspiring subordinates to become
more productive in their work.
Steve Jobs is widely regarded as an iconic transformational leader. He
worked hard and always challenged his employees to think bigger and better
and inspired them to create extraordinarily successful products.

39
Task- Oriented Leadership
Task – oriented leadership is a behavioural approach that revolves around the
proficiency of getting tasks done within set deadlines.
Positives Negatives
They always aspire to set high
standards with utmost efficiency.
Task- oriented leaders are so strongly
focused on increasing work efficiency
and achieving goals that they often
overlook their team‟s well- being.
They look for efficiency in their
subordinates and provide clear
instructions about the requirements
and schedule.
May even exhibit autocratic leadership
traits.
Subordinates who work best with easy
to follow work structure and have a
knack for method and management
appreciate such leadership.
Transactional Leadership
Transactional leadership is interchangeably called managerial leadership. It is
based on the idea of a transaction between the leader and the team members.
POSITIVES NEGATIVES
The leader provides supervision,
evaluates performance and sets goals.
Team members are punished by the
leader for not meeting an appropriate
standard.
Team members are shown
appreciation for their good work and
consistent efforts in terms of rewards.
Self- motivated people consider this as
interference.
People who admire external rewards
are often motivated to improve the
quality of their work.
Lenin, the Russian political leader and ideological figurehead behind Marxism-
Leninism is viewed by supporters as a task- oriented leader who championed
socialism and the working class.

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Bill Gates is a transactional leader who aims at inspiring positive changes in his
followers. He is dedicated to his work, has a remarkable business vision. He
expects the best from his subordinates and incorporates the reward- punishment
motivation strategy.

41
Chapter 8
Findings
Leadership style is the way a person uses power to lead other people. Research
has identified a variety of leadership styles based on the number of followers.
The most appropriate leadership style depends on the function of the leader, the
followers and the situation. Through the case study of Tesco “Developing
appropriate leadership styles” and study on leadership styles in organizations I
came to know following things:-
1. Leadership has a direct cause and effect relationship upon organizations
and their success.
2. Leaders determine values, culture, change tolerance and employee
motivation.
3. Leaders shape institutional strategies including their execution and
effectiveness.
4. Leaders can appear at any level of an institution and are not exclusive to
management.
5. Transformational leadership is the most appropriate leadership style for
making employees committed to organizational change which can
positively impact change implementation bringing out improved
organizational performance.
6. Successful leaders do, however, have one thing in common. They
influence those around them in order to reap maximum benefit from the
organization‟s resources.
7. In fact, the influence of leaders and their effectiveness in moving people
to a shared vision can directly shape the organization‟s people, its
materials etc.
8. There are various types of leadership styles such as Autocratic
Leadership, Democratic Leadership, Strategic Leadership Style,
Transformational Leadership, Team Leadership, Cross-Cultural
Leadership, Facilitative Leadership, Laissez-faire Leadership,
Transactional Leadership, Coaching Leadership, Charismatic Leadership,
Visionary Leadership etc.
9. Autocratic leadership style is centred on the boss. In this leadership the
leader holds all authority and responsibility.
10. In Democratic leadership style, subordinates are involved in making
decisions. The democratic leader holds final responsibility, but he or she

42
is known to delegate authority to other people, who determine work
projects.
11.Strategic leadership is one that involves a leader who is essentially the
head of an organization. An effective strategic leadership delivers the
goods in terms of what an organization naturally expects from its
leadership in times of change.
12.Transformational leaders motivate others to do more than they originally
intended and often even more than they thought possible. They set more
challenging expectations and typically achieve higher performance.
13.Team leadership involves the creation of a vivid picture of its future,
where it is heading and what it will stand for. The vision inspires and
provides a strong sense of purpose and direction.
14.Cross-Cultural Leadership normally exists where there are various
cultures in the society. This leadership has also industrialized as a way to
recognize front runners who work in the contemporary globalized market.
15.Facilitative leadership is too dependent on measurements and outcomes –
not a skill, although it takes much skill to master. The effectiveness of a
group is directly related to the efficacy of its process. If the group is high
functioning, the facilitative leader uses a light hand on the process.
16.Laissez-faire leadership gives authority to employees. According to
research, this kind of leadership has been consistently found to be the
least satisfying and least effective management style.
17.Transactional Leadership maintains or continues the status quo. It is also
the leadership that involves an exchange process, whereby followers get
immediate, tangible rewards for carrying out the leader‟s orders.
Transactional leadership can sound rather basic, with its focus on
exchange.
18.Coaching leadership involves teaching and supervising followers. A
coaching leader is highly operational in setting where results/
performance require improvement. Basically, in this kind of leadership,
followers are helped to improve their skills.
19.In Charismatic leadership, the charismatic leader manifests his or her
revolutionary power. Charisma does not mean sheer behavioural change.
It actually involves a transformation of followers‟ values and beliefs.
20.Visionary Leadership involves leaders who recognize that the methods,
steps and processes of leadership are all obtained with and through
people. Most great and successful leaders have the aspects of vision in
them
21.Each of the leadership style has its own advantage and limitations.

43
22.There are various leadership theories given by gurus such as Relationship
theories, Behavioural theories, Participative theories, Management
theories, Situational theories, Contingency theories, Trait theories and
Great man theories
23.Relationship theories are also known as the transformational theories; it
concentrates on the connection developed between leaders and their
subordinates.
24.Behavioural theories-This school of thought promotes the idea that great
leaders are not born but made. With deep root in behaviourism, these
leaders (behavioural leaders) concentrate on actions rather than internal
state.
25.Participative theories-This theory considers the input of its associates by
stipulating the ideal leadership style and defining it. It promotes the
inclusion from members by making them feel relevant and important,
especially in the areas of decision making.
26.Management theories-This theory can also be referred to as transactional
theories; it concentrates on organization, group performance and
supervision. The system of rewards and punishment is highly promoted
by this theory.
27.Situational theories-In this school of thought, situational variables are the
bases of every action taken. For example, when a leader is the most
experienced, the leader is in the position of calling all the shots.
28.Contingency theories-This theory focus on variables that are
environmentally related which determine the style of leadership that fits
the situation best.
29.Trait theories-With similarities in some ways to the Great man theories, it
promotes the idea that leadership is inborn. It means that a successful
leader must inherit certain quality that produces greatness.
30.Great Man theories-This theory assumes that great leaders are not made
but born. It promotes the mentality that leaders inherit inborn leadership
skills.
31.There are various approaches to leadership such as Situational approach,
Style approach and Skill approach.
32.Leadership styles affect the productivity and performance of the
employees.

44
Chapter 9
Conclusion
After going through the whole study and undergoing in-depth study of
leadership styles I came to know about the various leadership styles in
organization. There are various types of leaders like autocratic, democratic,
lassiez-faire, transactional, transformational etc. each of the leadership style has
its own traits, qualities, abilities etc. all are best at their place. Different
organization follows different types of leaders who adopt unique style and way
of leading a team and help in accomplishment of organizational goals and
objectives.
The experience and knowledge that I gained during the entire project was a
whole new and a very interesting experience. I learnt many new things in the
due course of time like how important are LEADERSHIP STYLE upon
conducting this research, new findings was discovered. However, the main
objectives of this research were achieved.
The research managed to determine the relationship between the leader and the
followers, the style by which goals/missions/objectives of the organizations are
fulfilled. From the study conducted to know the different leadership styles in
organizations, it was found that all three attributes that exist in an organization
had a significant relationship with leadership style. Finally, to conclude it all,
future research is still needed to justify and strengthen the outcomes of this
research.
There may have been many researchers who had conducted research earlier
similar to this topic but the situations in all the researches may be different,
including this research. Therefore, future researchers are welcomed to conduct a
similar research as this in the same context. I have a got a good knowledge and
information about the research topic and I came to know about the leadership
style in brief. Overall it was a good experience and I am happy and satisfied by
conducting descriptive research on “A study of leadership styles in
organizations”.

45
Chapter 10
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