A leader is best , when people barely know he
Not so good when people obey and acclaim him.
Worst when they despise him .
But of a good leader , who talks little,
when his work is done and aim fulfilled ,
they will say : we did it ourselves.
By Lao –tzu
According to Stephen Robbins leadership" is the
ability to influence a group towards the
achievement of goals”.
According to Paul Heresy and Kenneth Blanchard ,
leadership “is a process of influencing group activities
towards accomplishment of goals in a given
Besides influence, leadership has been defined in terms
of group process, personality,compliances,particular
behaviours, persuasion, goal achievement, interaction,
role differentiations and combination of two or more.
SOME REAL ORGANIZATIONAL LEADERS
The most successful business icons has been heroic
CEO’s who sit astride the giant corporations- the
huge system and steers it brilliantly along .
Michel Eisner at Disney
Jack Welch at GE
Bill Gates at Microsoft
John Reed at Citicorp
Indian Business Leaders
with Mukesh & Anil
JRD Tata with
The Birla Group
N.R. Narayana Murthy: Leader of Infosys
N. R. Narayana Murthy: Non-executive Chairman
of the Board and Chief Mentor of Infosys
5 ELEMENTS OF SUCCESS
Openness to learn: Openness to subordinate your
ego to take ideas from others.
Second, meritocracy: The best ideas are adopted
and implemented using data to arrive at the best
Third, speed: Assuring you do things faster
compared to yesterday and last quarter.
Fourth, imagination: You continually bring better
ideas and better innovation to the table.
And finally, excellence in execution: That is
implementation of these great ideas with a higher
level of excellence today than yesterday.
LEADERS OR MANAGERS?
According to Bennis “to survive in the 21st
we are going to need new generations of leaders not
John Kotter also argues that leadership is different
from management .Leadership is about coping with
change and management is about coping with
“Management is doing things right, leadership is
doing the right things”
(Warren Bennis and Peter Drucker)
Characteristics of …
MANAGER v/s LEADER
Focus on system & structures
Relies in control.
Short Range view.
Asks how and when.
Eyes on the bottom line.
Accept the status quo
Classic good soldier
Does things right
Focus on people.
Long range perspective.
Asks what and why.
Eyes on horizon.
Challenges the status quo.
Own person .
Does the right thing.
Some Qualities For Becoming A Successful
1. Sound Health :If you are healthy you can invest energy
you can work hard without any physical discomfort
2. Managerial Ability :You should be able to plan and control the
work of assistants.
3. Communication Skill :You should know what to speak, when and
how. Listen in depth !
4. Decision Making :Must possess capacity to think / analyze
problems and take right decisions.
5. Motivational Ability :You should possess the skill to energize &
keep the morale high.
6.Education and Training :Good academic education
In depth training in chosen field of operation.
7. Intelligence and Attitude :Your intellectual capacity is sharp &
approach is focused.
8. Impressive Personality :
Total behavior, writing, speech, dress ,manner- give a Role Model.
AUTOCRATIC LEADERSHIP STYLE
This is often considered the classical approach. It is one in which the manager
retains as much power and decision-making authority as possible. The managers
don't consult employees nor are they allowed to give inputs.
Certainly Gen X employees have proven to be highly resistant to this management
style. These studies say that autocratic leaders:
--Rely on threats and punishment to influence employees
--Do not trust employees
--Do not allow for employee input
Yet, autocratic leadership is not all bad. Sometimes it is the most effective style to
use. These situations can include:
--New, untrained employees who do not know which tasks to perform or which
procedures to follow
--Effective supervision can be provided only through detailed orders and
--Employees do not respond to any other leadership style
--There are high-volume production needs on a daily basis
--There is limited time in which to make a decision
--A manager’s power is challenged by an employee
--The area was poorly managed
--Work needs to be coordinated with another department or organization
BUREAUCRATIC LEADERSHIP STYLE
Bureaucratic leadership is where the manager manages “by the
book. Every thing must be done according to procedure and policy.
This style can be effective when:
--Employees are performing routine tasks over and over.
--Employees need to understand certain standards or procedures.
--Employees are working with dangerous or delicate equipment
that requires a definite set of procedures to operate.
--Safety or security training is being conducted.
--Employees are performing tasks that require handling cash.
This style is ineffective when:
--Work habits form that are hard to break, especially if they are no
--Employees lose their interest in their jobs and in their fellow
--Employees do only what is expected of them and no more.
DEMOCRATIC LEADERSHIP STYLE
The democratic leadership style is also called the participative style as it
encourages employees to be a part of the decision making. This style
requires the leader to be a coach who has the final say, but gathers
information from staff members before making a decision.
The democratic leadership style is most effective when:
--The leader wants to keep employees informed about matters that affect
--The leader wants employees to share in decision-making and problem-
--The leader wants to provide opportunities for employees to develop a
high sense of personal growth and job satisfaction.
--There is a large or complex problem that requires lots of input to solve.
--Changes must be made or problems solved that affect employees or
groups of employees.
Democratic leadership should not be used when:
--There is not enough time to get everyone’s input.
--It’s easier and more cost-effective for the manager to make the
--The business can’t afford mistakes.
--The manager feels threatened by this type of leadership.
--Employee safety is a critical concern
LAISSEZ FAIRE LEADERSHIP STYLE
The laissez-faire leadership style is also known as the “hands-off¨
style. It is one in which the manager provides little or no direction
and gives employees as much freedom as possible.
This is an effective style to use when:
--Employees are highly skilled, experienced, and educated.
--Employees have pride in their work and the drive to do it
successfully on their own.
--Outside experts, such as staff specialists or consultants are being
--Employees are trustworthy and experienced.
This style should not be used when:
--It makes employees feel insecure at the unavailability of a
--The manager cannot provide regular feedback to let employees
know how well they are doing.
--Managers are unable to thank employees for their good work.
--The manager doesn’t understand his or her responsibilities and is
hoping the employees can cover for him or her.
VARYING LEADERSHIP STYLE
While the proper leadership style depends on the
situation, there are three other factors that also influence
which leadership style to use.
1. The manager’s personal background. What personality,
knowledge, values, ethics, and experiences does the
manager have. What does he or she think will work?
2. The employees being supervised. Employees are
individuals with different personalities and backgrounds.
The leadership style managers use will vary depending
upon the individual employee and what he or she will
respond best to.
3. The company. The traditions, values, philosophy, and
concerns of the company will influence how a manager
CHANGE IN LEADERSHIP
SELLING THE IDEA
RESENTMENT AND ILIENATION
The most challenging aspect of business is
leading and managing change
The business environment is subject to fast-
paced economic and social change
Modern business must adapt
and be flexible to survive
Problems in leading change stem mainly from
human resource management
– as rumours of the
change circulate, the
individual feels some
sense of shock and
possible disbelief –
so much so that they
deem it worthy of
2. Minimisation: As the
change becomes clearer,
people try to fit in the
change with their own
personal position and may
try to believe that it will
not affect them.
3. Depression: as reality
begins to dawn staff may
feel alienated and angry,
feelings of a lack of control
of events overtake people
and they feel depressed as
they try to reconcile what
is happening with their
own personal situation.
4. Acceptance/letting go:
The lowest point in self-
esteem finally sees people
starting to accept the
inevitable. Fear of the
future is a feature of this
5. Testing out:
Individuals begin to
interact with the change,
they start to ask questions
to see how they might
work with the change.
6. Search for meaning:
Individuals begin to work
with the change and see
how they might be able to
make the change work for
them – self esteem begins
the change is
adopted within the
understanding – they
now know how to
work with it and feel a
renewed sense of
confidence and self
THEORIES OF LEADERSHIP
TRAIT THEORY OF LEADERSHIP
People are born with inherited traits.
Some traits are particularly suited to leadership.
People who make good leaders have the right (or sufficient) combination
of traits. Stogdill (1974) identified the following traits and skills of leaders
•Adaptable to situations
•Alert to social environment
•Ambitious and achievement-orientated
•Dominant (desire to influence others)
•Energetic (high activity level)
•Tolerant of stress
•Willing to assume responsibility
•Diplomatic and tactful
•Fluent in speaking
•Knowledgeable about group task
•Organised (administrative ability)
Leaders can be made, rather than are born.
Successful leadership is based in definable, learnable behavior.
Imply that leaders can be trained – focus on the way of doing things
Iowa leadership studies by R.lippit and Ralph k White is a
behavioural theory of leadership based on the impact of leadership styles
on a group. It was experimentally found that democratic leadership lead to
an overwhelming behaviour were as laissez faire lead to a worst form of
The Ohio State Leadership study: In 1945 the bureau of business
research initiated a series of studies on leadership. They plotted
behaviour on 2 separate axis
1. Initiating structure :the extent to which the leader is suppose to define
his and his subordinates role .
2.Consideration : the extent to which a leader is suppose to have trust,
regards, job relationship with is subordinates.
UNIVERSITY OF MICHIGAN STUDIES
In the Michigan university, a group of researcher also
came up with 2 dimensions of leadership behavior. They
Employee centered: Emphasizing interpersonal
relationship considered with the welfare of the
Production centered: Emphasizing task or technical
THE MANAGERIAL GRID THEORY
Robert R Blake and Jane S Mouton developed managerial grid which is
very famous among leaders and manager for adopting styles . They
proposed managerial grid based on two dimensions.
A. Concern for people
B. Concern for production
The scale range for each dimension range from 1 to 9 . Based on these
range 5 types of basic management styles evolved .
(1,1) :Also known as impoverished managers , were leaders plays least
importance to production and concern for people
(1,9) : Also known as Country club managers , the leaders have high concern
for people and low concern for production
(5,5): Leaders maintains adequate performance , maintaining a balance .
(9.1):Leaders initiate autocratic control with least interference of human
(9.9): Leaders initiate high concern for people and production , leading to
CONTINGENCY THEORIES OF LEADERSHIP
This model states that most appropriate style of leadership depends upon
the nature of situations the leaders face. The first contingency theory was
developed by Fred Feidler (1967)
He developed an instrument which was called LPC (least preferred
According to him , there are 3 situational variables
Leader member relationship : The manner a leader is accepted in a group.
Task structure : One's specific ways one is required to do the job.
Leader position power: The organizational power a leader occupies
PATH GOAL LEADERSHIP THEORY
Developed by Robert House and others , the theory mainly
emphasize on the path and goal concept , were a leader mainly
helps his subordinates or followers on what need to be done
(Goal) and how to be done (Path)
According to this theory a leader can adopt 4 styles while
following the path and goal concept .They are:
LIKERTS FOUR SYSTEM THEORY
Renis Likert developed four basic system or styles of
organizational leadership called the “style of management
Exploitative Autocratic :Tries to exploit subordinates.
Benevolent Autocratic: Initiate paternalistic approach while
Participative or consultative
Democratic: Total participation and consensus by majority
FACTORS AFFECTING STYLE
Risk - decision making and change initiatives
based on degree of risk involved
Type of business – creative business
or supply driven?
How important change is –
change for change’s sake?
Organisational culture – may be long
and difficult to change
Nature of the task – needing cooperation?
PROBLEMS OF LEADERSHIP IN MODERN
No uniformity in attitude, personality &
Lack of transparency in decision making,
provide very little scope for participation.
Unable to cope up with the fast pace of
Corporate Leadership in the 21st
• The magnitude of change will demand:The magnitude of change will demand:
More leadershipMore leadership
Newer forms of leadershipNewer forms of leadership
• Tomorrow’s corporate leaders should be:Tomorrow’s corporate leaders should be:
Strategic opportunistsStrategic opportunists
Decentralized managersDecentralized managers
Interpersonally competentInterpersonally competent
Builders of organizationalBuilders of organizational
The first responsibility of a leader is to define
reality. The last is to say thank you. In between the
two, the leader must become a servant and debtor.
That sums up the progress of an artful leader.”
- Max DePree
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