Leadership: Leadership is an influence relationship among leaders and followers

who intend real changes and outcomes that reflect their shared purposes.
Intention or will means that peopleleader and followersare actively involved in
the pursuit of change. Each person takes personal responsibility to achieve the
desired future.
Management: Management can be defined as the attainment of organizational
goals in an effective and efficient manner through planning, organizing, staffing,
directing, and controlling organizational resources.
Trait Approach: Certain traits make a successful leader. Traits such as
extroversion, intelligence, conscientiousness, openness to experience.
Behaviour Approach: Attempts to identify how a leaders behaviour will result in
certain leadership styles which would result in certain outcomes. The Blake and
Mouton Leadership Grid evaluates leaders based on their concern for results and
concern for people. It suggests that Team Management, 9,9 is the best leader
behaviour because it emphasizes of members working together well to accomplish
tasks.
Situational Approach: The situational approach suggests that effective leadership
may be examined by looking at 3 aspects, the Leader, the Followers and the
Situation.
The Hershey and Blanchard situational theory suggests that the characteristics of
the followers are the most important element of the situation and a leader should
adopt different leadership styles based on his followers ability and willingness,
which contributes to their readiness level for certain tasks.
Influence Theories: These theories examine influence processes between leaders
and followers. Leaders influence people to change by providing an inspiring vision of
the future and shaping the culture and values needed to attain it. These theories
examine things like charismatic leadership and examines how leadership influence
may be based on the qualities and charismatic personalities of the leader rather
than positions of influence.
Relational Theories: These theories focus on the relational aspect, that is, how
leaders and followers interact and influence one another. Rather than being seen as
something a leader does to a follower, leadership is viewed as a relational process
that meaningfully engages all participants and enables each person to contribute to
achieving the vision. Interpersonal relationships are seen as the most important
facet of leadership effectiveness.
Corporate Governance: The system of rules, practices and processes by which a
company is directed and controlled. Corporate governance essentially involves
balancing the interests of the many stakeholders in a company - these include its
shareholders, management, customers, suppliers, government and the community.

Corporate Social Responsibility (CSR): Corporate social responsibility is the

firms social responsibility based on a social contract. As a participant of society, it
has an obligation to contribute to society.
Leaders Frame of Reference: A frame is a perspective from which a leader
views the world, and it influences how the leader interacts with followers, makes
decisions, and exercises power.
Perceptual Distortions: Errors in perceptual judgment that arise from
inaccuracies in perception. E.g. Stereotyping and Projection.
Moral leadership: refers to leaders distinguishing right from wrong and doing
right, seeking the just, the honest, the good, and the right conduct in achieving
goals and fulfilling purpose.
Morality: Social principles concerning the distinction between right and wrong or
good and bad behaviour.
Ethics: Moral principles that govern a person's behaviour or the conducting of an
activity.
Kohlbergs Levels of Moral Development:
Stage 5 Social Contract -> People recognize that rules are more of social contracts rather than
rigid edicts. People act to do the greatest good for the greatest number, regardless of the rules.
Stage 6 Universal Principles -> People develop their own set of moral principles which they follow.
In Stage five (social contract driven), the world is viewed as holding different opinions, rights, and
values. Such perspectives should be mutually respected as unique to each person or community.
Laws are regarded as social contracts rather than rigid edicts. Those that do not promote the
general welfare should be changed when necessary to meet the greatest good for the greatest
number of people. This is achieved through majority decision and inevitable compromise.
Democratic government is ostensibly based on stage five reasoning.
In Stage six (universal ethical principles driven), moral reasoning is based on abstract reasoning
using universal ethical principles. Laws are valid only insofar as they are grounded in justice, and a
commitment to justice carries with it an obligation to disobey unjust laws. This involves an individual
imagining what they would do in anothers shoes, if they believed what that other person imagines to
be true.[ The resulting consensus is the action taken. In this way action is never a means but always
an end in itself; the individual acts because it is right, and not because it avoids punishment, is in
their best interest, expected, legal, or previously agreed upon. Although Kohlberg insisted that stage
six exists, he found it difficult to identify individuals who consistently operated at that level.
Types of Leaders:
Authoritarian Leader: Leader that uses position and authority to direct followers.
Participative Leader: Leader that encourages some participation from employees through focus
group discussions etc.
Stewardship Leader: Stewardship means that leaders are guardians of organizational resources
and values and they place the long-term interests of the organization first.

4 Conditions: Adopt a partnership mindset, give decision-making power and authority to act to those
closest to the work and the customer, tie rewards to contributions rather than formal position and
expect core work teams to build the organization
Servant Leader: Servant leaders transcend self-interest to serve the needs of others,
help others grow and develop, and provide opportunity for others to gain materially
and emotionally.

4 Conditions: Put service before self-interest, listen first to affirm others, inspire
trust by being trustworthy, nourish others and help them become whole.