UNIT 18

Leadership
Meaning
A leader is a person who guides and directs others, called followers. He gives focus to the efforts of his followers. The manager, as a leader, influences his subordinates to indulge in such activities as are vital for the accomplishment of the enterprise goal. According to Allen, a leader is one who guides and directs other people. He must giv4e effective direction and purpose.

Leadership is force that binds a group together and motivates it towards the desired goals.

Definition of leadership
Given below are some of the important definitions of leadership:

1. Leadership is the ability of a manager to induce subordinates to work with confidence and zeal- Koontz and ODonnell. 2. Leadership is the ability of a superior to influence the behavior of his subordinates and persuade them to follow a particular course of action- Chester Barnard. 3. Leadership is the activity of influencing people to strive willingly for mutual objectives- George R.Terry. 4. Leadership is the process by which an executive imaginatively directs guides and influences the work of other in choosing and attaining specified goals Theo Haimann.

5. Leadership is a process of influence on a group in a particular situation at a given point of time and in a specifies set of circumstances that stimulates people to strive willingly to attain organizational objectives-James Gibbon.

It is clear form the definitions that leadership is the act of guiding and directing the subordinates in order to attain the desired goal. Nature and characteristics of leadership The following are the characteristics of leadership

1. It is the personal quality of a person- Leadership, to a considerable extent, is an inborn or an inherent quality of a person. It is also possible to train a person to acquire leadership quali5ties. It is the potentials of the manager that determine his ability to guide, direct and co-ordinate the activities of his subordinates. 2. It is a process of influencing others- Leadership is a process of influencing others to act. In an enterprise, the manager has to get things done by his subordinates. For this, he has to influence their beliefs, behaviour and attitudes. The success of leadership lies in the willingness of the subordinates to comply with the directions of the manager. 3. It requires motivation of subordinates- To be accepted as a leader, the manager must gain the confidence of his subordinates. For this, he must be very knowledgeable, sincere and committed to his work. He must be a role model for his subordinates. He must have certain beliefs and values. 4. It requires motivation of subordinates-The leader is expected to motivate or induce his subordinate to work. By giving directions, orders and instructions alone, the manager may not be able to get things done. He has to suitably motivate the subordinates to put in efforts. Motivation need not always be in the form of offering certain monetary benefits. Even a word of appreciation may induce the subordinates to work hard.

5. Varying leadership styles- The styles of leadership vary from person to person. Some managers are, by nature, democratic leaders while there are others who may follow the autocratic style of leadership. 6. Leadership is a continuous process- The presence of a le3ader is always necessary in an organization. The subordinates need to be guided, influenced, controlled and induced to work continuously for the attainment of the organizational goal.

Important of Leadership
Leadership is important in view of the following reasons:

1.

To have team work- Leadership makes it possible for the employees to forget their individual differences and work as a team for the attainment of the organization objective. It develops co-operation and friendliness among the staff.

2. To guide- Although the subordinates have potentials, they need to be properly guided to contribute their best. The leader knows how to get optimum performance from each of the subordinates working under him. 3. To motivate- Leadership is necessary to induce the subordinate to put in greater efforts. The leader constantly motivates his subordinates to work for achieving the organizational goal. 4. To bring about changes- Any organization has to be dynamic to accept changes caused by political, economic, technological and scientific factors. The leader of the enterprise knows how to bring about such changes in his organization by getting the consent of the subordinate staff. 5. To handle crisis- Leadership is essential for handling crisis of any kind. When an organization faces a critical situation, the leader knows how to come out of it. The leader should be good at what is called crisis management.

Distinction between a leader and a manager

The points of distinction between a leader and a manager may be tabulated as follows:

Leader
his personal qualities. A leader has followers.

Manager
his official authority. a manager has subordinates

A person becomes a leader by virtue o A person becomes a manger by virtue of

The relationship between a leader and The relationship between a manager his followers is generally in formal A leader may strive for personal goal. and his subordinate is formal A manager has to strive to attain the organizational goal. Leadership is part of management. A Management is not a part of leadership. person with leadership qualities may no A manager is a leader in view of his not always be enterprise. Leadership qualities are to a greater Managerial qualities are acquired. extent inherent or in-born Leadership is possible both in formal Management is possible only in a formal and informal groups. structure. a manager of an formal authority.

Qualities of a leader
To be a successful leader, a person is expected to possess the following qualities: 1. Ability to analyse-The leader must be able to analyse any problem and offer an immediate solution. He should be alert mentally. 2. Emotional stability- The leader must not make decisions influenced by emotions. He has to approach any problem intellectually and find a solution. 3. Self-confidence- A person cannot be a successful leader if he lacks selfconfidence. If he has confidence in himself, he will be able to overcome resistance from anyone for his proposals.

4. Foresight-The leader must foresee what is likely ot happen. He must be able to visualize the future events and prepare his followers to meet challenges. 5. Sense of judgment- The leader must be able to judge what is good under the given circumstances. Only then he will be able to evolve certain practical decisions. 6. Understanding- The leader must not always thrust his views on his followers. He must also listen to their view points particularly while making decision in a critical situation. 7. Mental courage- the leader must be capable of taking certain bold decisions. For this he must have mental courage. He need not play safe by just endorsing the decisions of others. 8. Capacity to motivate- Needless to say, the leader must be able to induce and motivate his followers to work for the mission he has undertaken. 9. Ability to guide- The leader will be able to guide his followers in the work process only if he himself is well erased in the actual work. 10. Communication skills- Successful leaders are always known for the communication skills. Such skills are essential to direct the followers to work for attaining the desired goal. Moreover, the leader will always be able to defend himself if he possesses good communication ability. 11. Sociability- The leader should not be indifferent to the needs of his followers. As his followers work wholeheartedly for fulfilling his mission, the leader has the duty to reciprocate. If any follower has certain personal problems, the leader must do his best to help him. The leader must make himself accessible to his followers. 12. Sound physical health- The leader must possess robust physical health. Mental health, no doubt, is important, physical health is equally important. If only the leader has sound physical health, he will be able to work for his main with endurance. He will be able to ravel extensively and also speak for hours only if he has good physical health.

13. Practicing what is preached- The leader must be a person who practices what he preaches. He can talk of committed to work only if he himself is committed to work. He can talk of honesty if only he is honest in his dealings. 14. Ambitions- The leader must always be an ambitious person. Only then his subordinates will be able to work with enthusiasm. He must always have some novel plans to make things interesting for the followers. 15. Positive thinking- Last and not the least, the leader must be and optimist. He must always have a positive attitude toward his work. Only then he will be able to instill such a feeling in his followers.

Functions of a leader
The following are the important functions of a leader: 1. Planning- He has to prepare suitable plans for the effective functioning of his group/ organization. Planning enables his followers to work for the attainment of the desired goal in a systematic manner. 2. Policy-making- The leader has to evolve suitable policies that guide his group in arriving at decisions. Once he makes known to the followers the fundamental policies, the stand of the group on certain matters will become clear to everyone concerned. For example, the leader may evolve a policy if favouring merit in matters pertaining to selection of candidates to various posts. 3. Execution of plans and policies- Preparing plans and formulating policies by it self will not serve any purpose. What is actually important is execution the leader has to instigate his followers to work in accordance with the place and policies in order to achieve the desired goal. 4. Controlling internal relations- The leader has to ensure that there is cordial relations among his group members and that they work in an atmosphere of proper co-operation and co-ordination. If there is any misunderstanding among

his followers, the leader must do his best to set it right. He must always ensure that his followers repose faith in his leadership. 5. Representing the group- The leader has to represent his group both within and outside the organization and convey the feelings, sentiments and the stand of his group on important issues. 6. Providing reward and punishment- If any subordinate has performed his task well and is sincere and committed to work, the leader shall reward such a person suitably. It may be done by offering certain tangible or intangible benefits. If, on the other hand, a subordinate is found to be insincere and shirking duties, the leader has to initiate disciplinary action against him. 7. Settlement of disputes- The leader has the duty to amicably settle any dispute between him and his group members and also among the group members. He can always use his position to resolve any crisis. 8. Role-model- The leader must set an example his followers. He must practice what he preaches. He must say what he does and do what he says. He must be such a person that his followers always want to emulate him. 9. Inseparable from the group- The leader must so lead his followers that he and his group must be cons9idered as one and the same. He must be seen as a symbol of the group. 10. Answerability- The leader becomes accountable or answerable not only for his actions but also for those of his followers. 11. Adherence to Value system- The leader must have certain values and beliefs and must adhere and also make his followers adhere to the same.

Different kinds of leadership styles

The following are the different kinds of leadership styles that have been identified. i) ii) Autocratic Democratic

iii) iv) v) vi)

Laissez faire Functional Institutional and Paternalistic

Let us discuss each one in detail.

Autocratic leader
An autocratic leader wants his subordinates to work in the manner he wants. He tells them what they should do, where, when and how. He does not let his followers offer any suggestion. He specifies the goal, makes available the resources that he thinks are enough and sets subordinates have to report to him at regular intervals to show the progress of work. The autocratic leader thinks that his followers are incapable of making decisions. To secure performance from his subordinates, he may use coercive power. A subordinate, who performs as per the specifications of the leader, is rewarded while the one who fails to perform is punished. The punishment may be in the form of fines, suspension, transfer, demotion or dismissal. The autocratic leader does not have confidence in his subordinates. He thinks that they are basically lazy, have an inherent dislike for work and are not ambitions and creative.

The pros and cons of autocratic leadership style may be stated as follows:

Merits
1. Such a leadership style is suitable when subordinates are basically lazy and shirking duties. 2. It helps to make quick decisions as decision- making is the prerogative of the leader alone. 3. As subordinates are under constant that of disciplinary action, they are always cautious.

4.

Inefficient and insincere workers can easily be identified and removed from service.

Democratic leader
Such a style of leadership is also known as participative leadership. A democratic leader does not make unilateral or one sided decisions. He provides scope for his followers to participate in the decision making process. He allows his subordinates to discuss the problem and put forth their views freely. The final decision will be made based on the consensus of all. If any subordinate does anything that is opposed to the interests of the group, the other members of the group take the initiative to correct him.

Democratic leadership is based on the assumption that the followers are all capable.

The merits and demerits of democratic leadership are as follows:

Merits
1. As the followers are able to participate in the decision- making process, they feel motivated. 2. The decision finally made is mutually acceptable. The followers, therefore, work for its implementation wholeheartedly. 3. There is no resistance from the subordinates. 4. it improves the job attitudes of the subordinates staff, 5. As the subordinates do not have ill-feelings of any kind, the labormanagement relationship is bound to improve.

Demerits
1. There may be delay in arriving at a decision, as individuals is necessary. consensus among the

2. Democratic leadership is suitable only if the subordinates are all capable of making worthwhile suggestions. If they are less efficient and prefer to work as per the leaders directions, participative leadership will not serve the purpose. 3. It may, sometimes, be very difficult to evolve a solution that is acceptable to everyone.

Laissez faire leader

The dictionary meaning of laissez faire is policy of non interference. Also known as a free rein leader, a laissez faire leader gives full freedom to his followers to act. He does not lay down guidelines within which his followers have to work. He neither influences the subordinates decisions nor does not exercise the formal authority of a leader. The merits and demerits of such a kind of leadership style may be given as follows:

Merits
1. Obviously, as the subordinates have full freedom t act, their level of motivation is bound to be very high. 2. Those subordinates, who are highly efficient, can make use of the freedom given to them to excel. 3. The superior- subordinate relationship is bound to be very good.

Demerits
1. The laissez faire leadership style will produce good results only if the subordinates are all highly efficient and capable of doing their work independently. 2. As the leader does not involve himself at all in the activities of his subordinates, control may become difficult. 3. The leader does not exercise his formal authority. As a result, the work place may lose its official character.

4. The subordinates are deprived of the expert advice and moral support of their leader.

A functional Leader is one who is an expert in a particular field of activity. He has risen to the position of a leader by virtue of certain special skills that he possesses. He does not command any formal authority. Such a leader always thinks of the task he has undertaken and spends most of his time finding out ways and means of doing it better. The functional deader will be able to offer help to his subordinates provided the subordinates approach him for certain genuine job related problems. The leader expects the subordinates to perform to his level and if the followers are not very serious about their work, he may demand performance. If the subordinates are sincere and committed as their leader is, they will be able to utilize his potentials to the fullest extent. This will benefit the subordinates and the organization as well.

The pros and cons of functional leadership style are given below;

Merits
1. The very presence of and expert or a functional leader is beneficial to the followers and the organization. 2. As the functional leader is a specialist in a particular field of activity, the subordinates can certainly enrich their job knowledge and skill, provided they are as committed and sincere as their leader is.

Demerits
1. The functional leader is a taskmaster. He only believes in work. If only the subordinate is very efficient, he will be able to put up with such a leader. 2. The functional leader will not be able to go down to the level of an average worker and offer any help. 3. The leader may, sometimes, demand performance from his followers. This may frustrate them.

4. Misunderstandings may also arise between the leader and his followers.

Institutional Leader
An institutional leader is one who has become a leader by virtue of his official position in the organizational hierarchy. For example, a person appointed as the General Manager of a concern.

An institutional leader may not be an expert in his field of activity. He therefore, may not be able to provide expert guidance to his followers. But he has to secure performance from them. He may, therefore, be come demanding and thereby incur the displeasure of his concern.

The merits and demerits of the institutional leadership style may be stated as follows:

Merits
1. He has official authority to act. 2. He can demand performance from subordinates irrespective of his own credentials and the subordinates are officially answerable to him. He may initiate action against a subordinate who is shirking duties.

Demerits

1. As the institutional leader may not be an expert in his field of activity, he will not be in a position to offer proper guidance to his followers. 2. Although the leader has the official right to demand performance from his followers, he may not have the moral right, as his own credentials are less.

Paternalistic leader
A paternalistic leader takes care of his followers in the way the head of a family takes care of the family members. He is mainly concerned with the well being of his followers and is always ready to protect them. He may provide them with all the physical amenities needed. But he will not be able to guide them to perform their job well. Thus, the paternalistic leader is able to be sociable but is not able to offer intellectual help. The following are the merits and demerits of the paternalistic leadership style:

Merits
1. He is not in a position to offer intellectual help to his followers. 2. He is always ready to provide the necessary physical amenities to the subordinates.

Demerits
1. He is not in a position to offer intellectual help to his followers.

2. Those followers, who are capable and achievement-oriented, do feel frustrated, as the leader is not able to guide them to enrich their job knowledge and skill.

Theories on Leadership

Research studies were conducted in the past to ascertain the emergence of leadership. The researchers wanted to find out the determinants of leadership. Three such determinants were studied, namely, the personality of the leader, his behavior and the situation. As a result, the following three theories came to be developed;

i) ii) iii)

The Traits Theory, The Behavioural Theory and The situational Theory.

Let us now discuss these theories.

The Traits Theory

This theory is based on the assumption that a is a person who possesses certain exceptional traits or qualities. Many such or qualities were identified. Those, who were successful leaders in the past, were found to be having all such traits. These are:

i) Intelligence iii) Communication skills. v) Judgment vii) Inquisitiveness ix) Integrity xi) Integrity xiii) Imagination xv) Courage

ii) knowledge Iv) Initiative vi) Sincerity viii) Endurance x) Determination xii) Mental ability xiv) persuasion xvi) physical appearance

A person with these qualities cans certainly emerge as a successful leader. These need not always be inborn. These can be acquired through proper training.

Evaluation of the traits theory Merits

The following are the merits of the traits theory: 1. It is simple to understand. 2. It makes it clear that a person who lacks certain qualities cannot be a successful leader. 3. It guides management to develop leadership qualities of the staff through proper training.

Demerits
The traits theory suffers from the following limitation: 1. It gives undue importance to the traits of a person. Many persons have become leader in politics and in such other sphere without possessing most of the qualities highlighted by the theory. 2. If a person with the traits mentioned in the theory can become a leader, there are many with such traits who have not become leaders. 3. The theory ignores the fact that a person may emerge as a leader due to a particular situation. For example, when the leader of a political party dies, someone from his family may takeover the party leadership. 4. The extent of certain personal qualities- intelligence, knowledge, communication skills, etc., present in a person is sometimes more important for leadership about which nothing is said in the theory.

The behavioral theory

According to this theory, leadership depends more on the acts of a person than on his personality traits. The behaviour of a person attracts many followers towards him. These followers are ready to accept him their leader as they leader, influenced and

impressed by his behaviour. The interaction between the leader, the followers, the goals and the environment will bring out the right behaviour. Certain leadership acts are favourable while others may be unfavourable. The unfavourable acts the outcome of the inability of a leader to accept the views of his subordinates or his tendency to thrust his views on them and so on. If the leader is able to give his followers what they want, he will be successful.

Evaluation of the behavioural theory

The behavioural theory is superior to the traits theory in so far as it gives utmost importance to what the leader does rather than what he is. But its main drawback is that it is not possible to determine the kind of behaviour that will be ideal under all circumstances. A behaviour that is effective at a particular point of time may not be so always.

Situational theory
According to this theory, leadership is much influenced by the environment or the situation in which it is exercised. The style of leadership should change according to the situation. It, therefore, become clear that there is no particular style of leadership that can be universally relevant. The leader, in order to be successful, should adapt himself to the situation.

Three major situational variables are found to influence the leaders effectiveness. They are:

i) ii) iii)

The leader-subordinates relationship, The nature of the task of the subordinate and The ability of the leader to influence the subordinates

If the relationship between the leader and his subordinates is good, the leader will be able to exercise influence. The same is true if the task to be accomplished by the subordinates is easy for him. Above all, the leader himself must be in a position to influence subordinates through his power. Thus, whether a given situation is favorable for the leader or not is influenced by these three variables.

Evaluation of the situational Theory

The theory considers the situation, in which the leader operates, as a key factor determining success. Even if the leader has all the personality traits necessary to excel, the environment should be conducive. Only then he will be able to influence his followers. The theory also makes it clear that the same style of leadership will not work in different situations.