LEADERSHIP

Leadership is the art of motivating a group of people to act towards

achieving a common goal.
Effective leaders are those who increase their companies' bottom lines.
Leadership is a process by which a person influences others to accomplish an
objective and directs the organization in a way that makes it more cohesive
and coherent.
Concepts of Leadership
Good leaders are made not born. If you have the desire and willpower, you
can become an effective leader. Good leaders develop through a neverending process of self-study, education, training, and experience (Jago,
1982). This guide will help you through that process.
To inspire your workers into higher levels of teamwork, there are certain
things you must be, know, and, do. These do not come naturally, but are
acquired through continual work and study. Good leaders are continually
working and studying to improve their leadership skills; they are NOT resting
on their laurels.
The Two Most Important Keys to Effective Leadership
1. Trust and confidence in top leadership was the single most reliable
predictor of employee satisfaction in an organization.
2. Effective communication by leadership in three critical areas was
the key to winning organizational trust and confidence:

Helping

employees

understand

the

company's

overall

business strategy.

Helping employees understand how they contribute to

achieving key business objectives.

Sharing information with employees on both how the

company is doing and how an employee's own division is
doing relative to strategic business objectives.

Four Factors of Leadership

Leader
You must have an honest understanding of who you are, what you know, and
what you can do. Also, note that it is the followers, not the leader or
someone else who determines if the leader is successful. If they do not
trust or lack confidence in their leader, then they will be uninspired. To
be successful you have to convince your followers, not yourself or your
superiors, that you are worthy of being followed.
Followers
Different people require different styles of leadership. For example, a new
hire requires more supervision than an experienced employee. A person who
lacks motivation requires a different approach than one with a high degree of
motivation. You must know your people! The fundamental starting point is
having a good understanding of human nature, such as needs, emotions, and
motivation. You must come to know your employees.
Communication
You lead through two-way communication. Much of it is nonverbal. For
instance, when you set the example, that communicates to your people
that you would not ask them to perform anything that you would not be
willing to do. What and how you communicate either builds or harms the
relationship between you and your employees.
Situation
All situations are different. What you do in one situation will not always work
in another. You must use your judgment to decide the best course of action
and the leadership style needed for each situation. For example, you may
need to confront an employee for inappropriate behavior, but if the

confrontation is too late or too early, too harsh or too weak, then the results
may prove ineffective.

Principles of Leadership
Know yourself and seek self-improvement - In order to know
yourself, you have to understand your be, know, and do, attributes.
Seeking self-improvement means continually strengthening your
attributes. This can be accomplished through self-study, formal
classes, reflection, and interacting with others.

Be technically proficient - As a leader, you must know your job and

have a solid familiarity with your employees' tasks.

Seek responsibility and take responsibility for your actions - Search

for ways to guide your organization to new heights. And when things
go wrong, they always do sooner or later do not blame others.
Analyze the situation, take corrective action, and move on to the
next challenge.

Make sound and timely decisions - Use good problem solving,

decision making, and planning tools.

Set the example - Be a good role model for your employees. They
must not only hear what they are expected to do, but also see. We
must become the change we want to see - Mahatma Gandhi

Know your people and look out for their well-being - Know human
nature and the importance of sincerely caring for your workers.

Keep your workers informed - Know how to communicate with not

only them, but also seniors and other key people.

Develop a sense of responsibility in your workers - Help to develop

good character traits that will help them carry out their professional
responsibilities.

Ensure that tasks are understood, supervised, and accomplished Communication is the key to this responsibility.

Train as a team - Although many so called leaders call their

organization, department, section, etc. a team; they are not really
teams...they are just a group of people doing their jobs.

Use the full capabilities of your organization - By developing a team

spirit, you will be able to employ your organization, department,
section, etc. to its fullest capabilities.

Attribute of Leadership
BE KNOW DO
BE a professional. Examples: Be loyal to the organization, perform selfless
service, take personal responsibility.
BE a professional who possess good character traits. Examples: Honesty,
competence, candor, commitment, integrity, courage, straightforwardness,
imagination.
KNOW the four factors of leadership follower, leader, communication,
situation.
KNOW yourself. Examples: strengths and weakness of your character,
knowledge, and skills.
KNOW human nature. Examples: Human needs, emotions, and how people
respond to stress.
KNOW your job. Examples: be proficient and be able to train others in their
tasks.

KNOW your organization. Examples: where to go for help, its climate and
culture, who the unofficial leaders are.
DO provide direction. Examples: goal setting, problem solving, decision
making, planning.
DO

implement.

Examples:

communicating,

coordinating,

supervising,

evaluating.
DO motivate. Examples: develop morale and esprit de corps in the
organization, train, coach, counsel.

Environment
Goals, Values, and Concepts
Leaders exert influence on the environment via three types of actions:
1.

The goals and performance standards they establish.

2.

The values they establish for the organization.

3.

The business and people concepts they establish.

Successful organizations have leaders who set high standards and goals
across the entire spectrum, such as strategies, market leadership, plans,
meetings and presentations, productivity, quality, and reliability. Values
reflect the concern the organization has for its employees, customers,
investors, vendors, and surrounding community. These values define the
manner in how business will be conducted.

Concepts define what products or services the organization will offer and the
methods and processes for conducting business.
These goals, values, and concepts make up the organization's personality or
how the organization is observed by both outsiders and insiders. This
personality defines the roles, relationships, rewards, and rites that take place
The Process of Great Leadership
Challenge the process - First, find a process that you believe
needs to be improved the most.

Inspire a shared vision - Next, share your vision in words that can
be understood by your followers.

Enable others to act - Give them the tools and methods to solve
the problem.

Model the way - When the process gets tough, get your hands
dirty. A boss tells others what to do, a leader shows that it can be
done.

Encourages the heart - Share the glory with your followers' hearts,
while keeping the pains within your own.

Leadership styles
Autocratic Leadership Style
This is often considering the classical approach. It is one in which the
manager retains as much power and decision-making authority as possible.
The manager does not consult employees, nor are they allowed to give any
input. Employees are expected to obey orders without receiving any
explanations. The motivation environment is produced by creating a
structured set of rewards and punishments.
This leadership style has been greatly criticized during the past 30 years.
Some studies say that organizations with many autocratic leaders have
higher turnover and absenteeism than other organizations. 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
instructions

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 managers power is challenged by an employee

Work needs to be coordinated with another department or organization

The autocratic leadership style should not be used when:

Employees become tense, fearful, or resentful

Employees expect to have their opinions heard

Employees begin depending on their manager to make all their

decisions

Bureaucratic Leadership Style

Bureaucratic leadership is where the manager manages by the book
Everything must be done according to procedure or policy. If it isnt covered
by the book, the manager refers to the next level above him or her. This
manager is really more of a police officer than a leader. He or she enforces
the rules.

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
longer useful.
--Employees lose their interest in their jobs and in their fellow workers.

--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. The democratic
manager keeps his or her employees informed about everything that affects
their work and shares decision making and problem solving responsibilities.
This style requires the leader to be a coach who has the final say, but
gathers information from staff members before making a decision.
Democratic leadership can produce high quality and high quantity work for
long periods of time. Many employees like the trust they receive and respond
with cooperation, team spirit, and high morale. Typically the democratic
leader:

--Develops plans to help employees evaluate their own performance

--Allows employees to establish goals

--Encourages employees to grow on the job and be promoted

--Recognizes and encourages achievement.

Like the other styles, the democratic style is not always appropriate. It is
most successful when used with highly skilled or experienced employees or
when implementing operational changes or resolving individual or group
problems.
The democratic leadership style is most effective when:
--The leader wants to keep employees informed about matters that affect
them.
--The leader wants employees to share in decision-making and problemsolving duties.
--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.
--You want to encourage team building and participation.
Democratic leadership should not be used when:
--There is not enough time to get everyones input.
--Its easier and more cost-effective for the manager to make the decision.
--The business cant 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. All authority or power is given to the
employees and they must determine goals, make decisions, and resolve
problems on their own.
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 used
--Employees are trustworthy and experienced.
This style should not be used when:
--It makes employees feel insecure at the unavailability of a manager.
--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.
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 managers 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 acts.

Great Man Theory:Assumptions

Leaders are born and not made.
Great leaders will arise when there is a great need.

Description
Early research on leadership was based on the study of people who were already great
leaders. These people were often from the aristocracy, as few from lower classes had the
opportunity to lead. This contributed to the concept that leadership had something to do
with breeding.
The idea of the Great Man also strayed into the mythic domain, with notions that in times
of need, a Great Man would arise, almost by magic. This was easy to verify, by pointing to
people such as Eisenhower and Churchill, let alone those further back along the timeline,
even to Jesus, Moses, Mohammed and the Buddah.

Discussion
Gender issues were not on the table when the 'Great Man' theory was proposed. Most
leaders were male and the thought of a Great Woman was generally in areas other than
leadership. Most researchers were also male, and concerns about andocentric bias were a
long way from being realized.

Trait Theory:Assumptions
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.

Description
Early research on leadership was based on the psychological focus of the day, which was of people having
inherited characteristics or traits. Attention was thus put on discovering these traits, often by studying successful
leaders, but with the underlying assumption that if other people could also be found with these traits, then they, too,
could also become great leaders.
Stodgily (1974) identified the following traits and skills as critical to leaders.

Traits

Skills

Adaptable to situations

Clever (intelligent)

Alert to social environment

Conceptually skilled

Ambitious and achievement-orientated

Creative

Assertive (forcefully)

Diplomatic and tactful

Cooperative

Fluent in speaking

Decisive (crucial)

Knowledgeable about group task

Dependable

Organized (administrative ability)

Dominant (desire to influence others)

Persuasive

Energetic (high activity level)

Socially skilled

Persistent (constant)

Self-confident

Tolerant of stress

Willing to assume responsibility

McCall and Lombardo (1983) researched both success and failure identified four primary traits by which leaders
could succeed or 'derail':

Emotional stability and composure: Calm, confident and predictable, particularly when under stress.

Good interpersonal skills: Able to communicate and persuade others without resort to negative or
coercive tactics.

Intellectual breadth: Able to understand a wide range of areas, rather than having a narrow (and narrowminded) area of expertise.

Admitting error: Owning up to mistakes, rather than putting energy into covering up.

Discussion
There have been many different studies of leadership traits and they agree only in the general good qualities
needed to be a leader.
For a long period, inherited traits were sidelined as learned and situational factors were considered to be far more
realistic as reasons for people acquiring leadership positions.
Paradoxically(inconsistently), the research into twins who were separated at birth along with new sciences such as
Behavioral Genetics have shown that far more is inherited than was previously supposed. Perhaps one day they
will find a 'leadership gene'.

Behavioral Theory:Assumptions
Leaders can be made, rather than are born.
Successful leadership is based in definable, learnable behavior.

Description
Behavioral theories of leadership do not seek inborn traits or capabilities. Rather, they look at what leaders actually
do.

If success can be defined in terms of describable actions, then it should be relatively easy for other people to act in
the same way. This is easier to teach and learn then to adopt the more ephemeral (temporary) 'traits' or
'capabilities'.

Discussion
Behavioral is a big leap from Trait Theory, in that it assumes that leadership capability can be learned, rather than
being inherent. This opens the floodgates to leadership development, as opposed to simple psychometric
assessment that sorts those with leadership potential from those who will never have the chance.
A behavioral theory is relatively easy to develop, as you simply assess both leadership success and the actions of
leaders. With a large enough study, you can then correlate statistically significant behaviors with success. You can
also identify behaviors which contribute to failure, thus adding a second layer of understanding.

Contingency Theory:Assumptions
The leader's ability to lead is contingent(conditional) upon various situational factors, including the leader's
preferred style, the capabilities and behaviors of followers and also various other situational factors.

Description
Contingency theories are a class of behavioral theory that contend that there is no one best way of leading and that
a leadership style that is effective in some situations may not be successful in others.
An effect of this is that leaders who are very effective at one place and time may become unsuccessful either when
transplanted to another situation or when the factors around them change.
This helps to explain how some leaders who seem for a while to have the 'Midas touch' suddenly appear to go off
the boil and make very unsuccessful decisions.

Discussion
Contingency theory is similar to situational theory in that there is an assumption of no simple one right way. The
main difference is that situational theory tends to focus more on the behaviors that the leader should adopt, given
situational factors (often about follower behavior), whereas contingency theory takes a broader view that includes
contingent factors about leader capability and other variables within the situation.

Fiedler's Least Preferred Co-worker (LPC) Theory

Assumptions
Leaders prioritize between task-focus and people-focus.
Relationships, power and task structure are the three key factors that drive effective
styles.

Description
Fiedler identified the a Least Preferred Co-Worker scoring for leaders by
asking them first to think of a person with which they worked that they
would like least to work with again, and then to score the person on a range
of scales between positive factors (friendly, helpful, cheerful, etc.) and
negative factors (unfriendly, unhelpful, gloomy, etc.). A high LPC leader
generally scores the other person as positive and a low LPC leader scores
them as negative.
High LPC leaders tend to have close and positive relationships and act in a supportive
way, even prioritizing the relationship before the task. Low LPC leaders put the task
first and will turn to relationships only when they are satisfied with how the work is
going.
Three factors are then identified about the leader, member and the task, as follows:

Leader-Member Relations: The extent to which the leader has the

support and loyalties of followers and relations with them are friendly
and cooperative.
Task structure: The extent to which tasks are standardized,
documented and controlled.

Leader's Position-power: The extent to which the leader has authority

to assess follower performance and give reward or punishment.

Discussion
This approach seeks to identify the underlying beliefs about people, in particular
whether the leader sees others as positive (high LPC) or negative (low LPC). The neat
trick of the model is to take someone where it would be very easy to be negative about
them. This is another approach that uses task- vs. people-focus as a major
categorization of the leader's style.

Cognitive Resource Theory

Assumptions
Intelligence and experience and other cognitive resources are factors in leadership success.
Cognitive capabilities, although significant are not enough to predict leadership success.
Stress impacts the ability to make decisions.

Description
Cognitive Resource Theory predicts that:
1. A leader's cognitive ability contributes to the performance of the team only when the leader's approach is
directive.
When leaders are better at planning and decision-making, in order for their plans and decisions to be implemented,
they need to tell people what to do, rather than hope they agree with them.
When they are not better than people in the team, then a non-directive approach is more appropriate, for example
where they facilitate an open discussion where the ideas of team can be aired and the best approach identified and
implemented.

2. Stress affects the relationship between intelligence and decision quality.

When there is low stress, then intelligence is fully functional and makes an optimal contribution. However, during
high stress, a natural intelligence not only makes no difference, but it may also have a negative effect. One reason
for this may be that an intelligent person seeks rational solutions, which may not be available (and may be one of
the causes of stress). In such situations, a leader who is inexperienced in 'gut feel' decisions is forced to rely on
this unfamiliar approach. Another possibility is that the leader retreats within him/herself, to think hard about the
problem, leaving the group to their own devices.
3. Experience is positively related to decision quality under high stress.
When there is a high stress situation and intelligence is impaired, experience of the same or similar situations
enables the leader to react in appropriate ways without having to think carefully about the situation. Experience of
decision-making under stress also will contribute to a better decision than trying to muddle through with brainpower alone.
4. For simple tasks, leader intelligence and experience is irrelevant.
When subordinates are given tasks which do not need direction or support, then it does not matter how good the
leader is at making decisions, because they are easy to make, even for subordinates, and hence do not need any
further support.

Discussion
CRT arose out of dissatisfaction with Trait Theory.
Fiedler also linked CRT with his Least Preferred Co-worker (LPC) Theory, suggesting that high LPC scores are the
main drivers of directive behavior.
A particularly significant aspect of CRT is the principle that intelligence is the main factor in low-stress situations,
whilst experience counts for more during high-stress moments.

Situational Theories:
Situational theories propose that leaders choose the best course of action based upon situational
variables. Different styles of leadership may be more appropriate for certain types of decision-making.

Management Theories:
Management theories (also known as "Transactional theories") focus on the role of supervision,
organization and group performance. These theories base leadership on a system of rewards and
punishments. Managerial theories are often used in business; when employees are successful, they
are rewarded; when they fail, they are reprimanded or punished.

Relationship Theories:
Relationship theories (also known as "Transformational theories") focus upon the connections formed
between leaders and followers. Transformational leaders motivate and inspire people by helping group
members see the importance and higher good of the task. These leaders are focused on the
performance of group members, but also want each person to fulfill his or her potential. Leaders with
this style often have high ethical and moral standards.

B a s s ' Tra n s f o r m a t i o n a l L e a d e r s h i p
Theory
Assumptions
Awareness of task importance motivates people.
A focus on the team or organization produces better work.

Description
Bass defined transformational leadership in terms of how the leader affects followers, who are intended to trust,
admire and respect the transformational leader.
He identified three ways in which leaders transform followers:

Increasing their awareness of task importance and value.

Getting them to focus first on team or organizational goals, rather than their own
interests.

Activating their higher-order needs.

Charisma is seen as necessary, but not sufficient, for example in the way that charismatic movie stars may not
make good leaders. Two key charismatic effects that transformational leaders achieve is to evoke strong emotions
and to cause identification of the followers with the leader. This may be through stirring appeals. It may also may
occur through quieter methods such as coaching and mentoring.
Bass has recently noted that authentic transformational leadership is grounded in moral foundations that are based
on four components:

Idealized influence
Inspirational motivation

Intellectual stimulation

Individualized consideration

...and three moral aspects:

The moral character of the leader.

The ethical values embedded in the leaders vision, articulation, and program (which
followers either embrace or reject).

The morality of the processes of social ethical choice and action that leaders and
followers engage in and collectively pursue.

This is in contrast with pseudo-transformational leadership, where, for example, in-group/out-group 'us and them'
games are used to bond followers to the leader.

Discussion
In contrast to Burns, who sees transformational leadership as being inextricably linked with higher order values,
Bass sees it as amoral, and attributed transformational skills to people such as Adolf Hitler and Jim Jones.