Question 1: Out of nine key areas of leadership, the two most important areas are importance of ethics and

understanding others. The reason behind the selection of these areas are quite evident as maintaining ethics in the organization is most desirable for any member of organization and people are keen to be treated in an ethical manner this also develops trust between employees and leaders. The second most important area is to understand others as it is very crucial for any leader to understand the members of organization so to assess their needs and wants related to the organization. Question 2: The third type of leadership behavior or style is called Democratic or Participative Leadership. In this, the leader involves other member of group or employees of the organization in decision making process. They collectively decide the course of action about what to do and how to do. However the leader is person who takes final decision. This leadership style is proved to be most efficient style and brings high productivity. Question 3: The vision of any organization tells where the firm or an individual wants to be in the future. This also explains and clarify that what an organization or person wants to do and achieve. Vision precisely explains organizational plans and the way to achieve goals. This also depicts the strategies to achieve the goals. Question 4: The upside down pyramid claims that the employees of the organization are on top of the priority by the upper-management of the firm. In the firms which believe this ideology, leaders and top executives are expected to turn the traditional pyramid of leadership upside down. By this the leaders are there to take care of the employees who tend to take care of the customers of the organization. This empowers the people in the organization who serve the customers. In this pyramid, employees are on top and in middle are the supervisors and section heads or middle managers. In the end there come the top executives. This model is also called inverted pyramid. The role of middle managers is like a bridge between top executives and lower level employees. Question 5: it is true that there is clear difference between managers and leaders as by these two terms it is quite clear that management manages the people where as leaders leads them upfront. The four basic functions of managers are planning, organizing directing and controlling whereas the functions of leaders are entirely different.

Question 6: There could be many different kind of abilities required for leadership excellence under different circumstances but the most common and utmost required abilities are intelligence (emotional intelligence), technical skills, and leadership. It means that a leader must have an ability to solve different complex and crucial organizational problems intelligently. Leader must come up with solutions quickly. Leader must also have emotional intelligence with help of participative management and keeping other at ease. Leader must also possess technical knowledge and skills about a particular subject matter. Question 7: There are six basic principles of trust and one of these principles is Lead by example which tells that leaders must set high standards for others by modeling the needed attitudes and actions. The other principle is Think beyond the moment which highlights that successful leaders avoid to make decisions for self-benefits and also consider the resulted impact of their decisions. This can inspire others and helps in creating trust. Another principle is Maintain constructive relationships. This tells that effective leader must maintain constructive relationships with other colleagues. Question 8: It is assumed that ethics has no value to the success of businesses but in the recent business environment this is proved to be wrong. Ethics has both financial and non-financial benefits of the organization. Ethics and corporate social responsibility helps in creating the trust of employees as well as from customers. It also increases the employee commitment towards organization and reduces the turnovers. This also can bring more potential investors for the business. In the end, it also creates goodwill for the organization in the eyes of customers. Question 9: The shared values are widely shared and deeply held principles among a group, society or an organization. These values can be explicit or implicit in nature and includes principles, fundamental believes, or concepts which underline the culture of a particular organization. These values have strong impact upon the behavior and decisions of members, management and employees of the organization. Question 10: There could be many red flags which tell the managers when to reinforce the values of the organization. One of the red flags is when the day-to-day life is disorganized in the organization and this is the time when managers must reinforce organizational values. The other is when

members of the organization start complaining about the organization. The last one is when the organization has such values which are not practiced by the members of the organization and at this point reinforcement of values becomes very important.