LEADERSHIP

LEADERSHIP : AN OVERVIEW
Leadership is the interpersonal influence
exercised in a situation & directed through
communication
process,
towards
the
attainment of a specific goal or goals : Robert
Tennenbaum
Leader:- Those who are able to influence
others & who posses managerial authority.

Theories of Leadership
Major theories are:
Trait theory
Behavioural theory
Situational theory
Contingency theory

Trait theory
This theory attempts to classify what the
personal characteristics or traits like physical,
personality and mental are associated with
leadership success.
Eg: height, weight, good health, appearance,
intelligence, decision making skill, dominance,
self-confidence etc.
Only those individuals who possess at least a few
of such qualities are considered as potential
leaders as per this theory.

This theory has its own limitations:

1. It is not accepted universally as a valid theory
2. No consistent set of traits were identified
from research that differentiated leaders
with non-leaders.
3. Many of these traits are difficult to measure.
Hence it is not always possible to distinguish
between leaders and followers.

Behavioural Theory
Limitations of Trait theory led the researchers
to study on the behaviors of individuals.
According to this theory, leaders can be
described in terms of what they can do rather
than what they are.
Here leaders are identified by reference to
their behavior in relation to followers.
These theory are mostly validated by
researches.

 It differs from trait theory in two ways:

1. Actual leader behavior and not the traits are
the main focus.
2. Trait theory distinguishes leaders and nonleaders while behavioral theory determines
how different kind of behaviors affect the
performance and satisfaction of followers.

Fiedlers Contingency Theory

It proposes that the success of leadership
depends on both the factors, leader's personality
and the situation in which a leader operates.
Developed by Fred E Fiedler
Leaders effectiveness depends on the following
three situational factors:
1. Leader- followers relations: i.e the degree of
followers trust, confidence and respect for the
leader.

2. Task structure: the nature of task performed

by the subordinates.
3. The status power : the degree of power
associated with the position or status held by
the leader in the organization.
The most favourable situation for a leader is
when he is most liked, task performed is
highly structured and leader has enough
power attached to his/her position in
organization.

Identifying leadership style - Fiedlers

Contingency Theory
Fiedler believed that leadership style is fixed, and
it can be measured using a scale he developed
called Least-Preferred Co-Worker (LPC) Scale
The scale asks you to think about the person with
whom you've worked with in your job, or in
education or training.
If your total score is high, you're likely to be a
relationship-orientated leader. If your total score
is low, you're more likely to be task-orientated
leader.

Situational Theory
Developed by Paul Hersey and Kenneth Blanchard.
It suggests that leadership effectiveness depends on
the situation in which leadership is exercised.
This theory focuses on the use of a leaders personal
skills and natural ability to lead in a current situation
In this model two dimensions of leadership behavior is
used:
a. Task or production oriented dimension
b. Relationship or people oriented dimension

Hersey- Blanchard Model

of Situational Leaership

The level of followers

development or maturity
is categorized into four
levels based on their
ability and willingness to
accept responsibility for
completing the task.
Those who are able and
willing are considered as
most mature and those
who are unable and
unwilling are considered
as least mature.
S1 (Situation 1: Directing) to S4 (Situation 4: Delegating). The process follows each situation
describing the state of direct reports (or followers if you will).

LEADERSHIP STYLES

 The ways the leader influences his/her

followers is called 'leadership styles'.
There are three basic styles of leadership:
1. Autocratic or Authoritative Style
2. Democratic or Participative Style
3. Laissez-Faire or Free-Rein Style.

Autocratic or Authoritative Style

Leader centralizes power and decision-making
in him/her.
Leader commands complete control over the
subordinates.
Subordinates are compelled to obey the orders
No opportunity to make suggestions or take
part in decision-making function

 The autocratic leadership style is subject to

several limitations:
1. It results in low morale and job
dissatisfaction.
2. Employees efficiency tends to decline over
period.
3. Potential manager-leader employees do not
get opportunity to exhibit their capabilities.

Democratic or Participative Style

Leader takes decision in consultation with the
subordinates
Subordinates participate in decision-making
function
Participation leads to satisfaction of social and
ego needs of subordinates
Creates more commitment in the minds of
subordinates.

 Benefits offered by the democratic style of

leadership are:
1. It gives opportunity to the subordinates to
develop their potential abilities and assume
greater responsibilities.
2. It provides job satisfaction, on the one hand,
and improves the morale of subordinates, on
the other.
3. Subordinates' participation in decisionmaking helps make right decision because 'two
heads are better than one'.

Laissez Faire Style

Just the opposite of autocratic style
Manager-leader leaves decision-making to the
subordinates
Subordinates enjoy full freedom to decide as
and what they like
This can create chaos and mismanagement in
decision-making

 Laissez faire style is found suitable in the

following situations:
1. Leader is able to fully delegate the powers of
decision-making to his/her subordinates.
2. Subordinates are also well competent and
knowledgeable.
3. Organizational goals and objectives are well
communicated to the employees.

Diagrammatic Representation of Leadership Style

Autocratic Style

Democratic Style

Laissez Faire Style

Charismatic Leadership Theory

Also called great man theory
Ancient studies based on the insights from
Plato and Confucius have suggested that a
leader is born and is not made.
Charismatic leaders inspire followers and have
a major impact on their organisations through
their personal vision and energy.
They have very high levels of referent power
(power of an individual over the Team or
Followers)

1.
2.
3.

4.

Basic assumptions and implications of charismatic

leadership theory
Leaders in general, and great leaders in particular,
have some exceptional inborn leadership qualities
which are bestowed upon them by the divine power.
These inborn qualities are sufficient for a leader to be
successful.
Since these qualities are inborn, these cannot be
enhanced through education and training. Further,
since these qualities are of personal nature, these
cannot be shared by others.
These leadership qualities make a leader effective and
situational factors do not have any influence.

Limitations:
1. It assumes that there are certain inborn
qualities of a great leader, and hence nothing
can be done to develop leaders in the
organisations. But this isnt true always.
2. A charismatic leader may fail in the changed
situation.
Eg: Winston Churchill who was highly successful
during world war II failed completely after
the war.

Transactional and Transformational

Another kind of leadership style is transactional and
transformational leadership identified by Burns
Transactional Leadership:
Transactional leaders manage the transactions
between the organisation and its members so that the
organisational objective is achieved.
They get things done by giving contingent rewards in
terms of recognition, pay hike and advancement for
those who perform better.
They often use Management-By-Exception (MBE)
principle to get expected things done through their
subordinates

Transformational Leadership:
These leaders focus on changing the attitude
and assumptions of their employees, towards
building commitment for organizational
mission and objectives.
Leaders of this type generate awareness and
acceptance of the purposes and mission of the
group.
They stir their subordinates to look beyond
their own self-interest for the good of the
whole group/organisations.

Characteristics of Transactional and

Transformational Leadership
Transactional Leadership

Transformational Leadership

Charisma: Provides vision and

sense of mission, instills pride,
gains respect and trust.
Inspiration: Communicates high
expectations, uses symbols of
focus efforts, expresses important
purposes in simple ways.
Intellectual Simulation: Promotes
intelligence,
rationality,
and
careful problem solving.
Individualized
Consideration:
Gives personal attention, treats
each
employee
individually,
coaches, advises.

Contingent Reward: Contracts

exchange of rewards for effort,
promises rewards for good
performance,
recognizes
accomplishments.
Management
by
Exception
(active): Watches and searches for
deviations
from
rules
and
standards, takes corrective actions.
Management
by
Exception
(Passive): Intervenes only if
standards are not met.
Laissez-Faire: Abdicates (fail to fulfil
or undertake) responsibilities,
avoids making decisions

Managerial grid
One of the most widely known styles of
leadership
Developed by Blake and Mouton.
The grid is based on two underlying dimensions
labelled as Concern for Production and Concern
for People.
This 9 by 9 grid represents concern for production
along the horizontal dimension and concern for
people along the vertical dimension

Concern for People:

This includes degree of personal
commitments
towards
goal
achievement, maintaining the
self
esteem
of
workers
responsibility based on trust, and
satisfying interpersonal relations.

Concern for Production:

The attitude of supervisors
towards a variety of things, such
as quality of decision, procedures
and processes, creativeness of
research, quality of staff service,
work efficiency, and volume of
output

Impoverished manager: 1.1- has low concern for both production and people. He
exerts the minimum efforts to get essential work done, while maintaining
organizational membership. This style of management is similar to the laissez-faire
style of leadership.
Country-club manager: 1.9- has high concern for people but low concern for
production. Thoughtful attention to needs of people leads to a friendly and
comfortable organisational atmosphere
Authority-obedience manager: 9.1- has more concern for production but low concern
for people. Production maximization is the hall mark of such manager. This style
resembles the autocratic style.

Middle road/organization manager: 5.5- has moderate levels of concern for both
production and people. Such manager goes along to get along, conforming to and
maintaining the status quo.
Team manager: 9.9- has high concern for both production and people
The best of all the above styles is considered to be the team manager style.

POWER
Power refers to a capacity that A has to
influence the behaviour of B so that B acts in
accordance with As wish.
Power may exist but not be used. It is,
therefore, a capacity or potential.
The most important aspect of power is that it
is a function of dependency.
The greater Bs dependence on A, the greater
is As power in the relationship.

Sources of Power
Formal power
Formal power is based on an individuals position
in an organization. Formal power can come from
the ability to coerce or reward or it can come
from formal authority.
Coercive power
The coercive power base is dependent on fear. A
person reacts to this power out of fear of the
negative results that might occur if she failed to
comply.

Reward power
The opposite of coercive power is reward power.
People comply with the wishes or directives of
another because doing so produce positive benefits;
therefore, one can distribute rewards that others
view as valuable will have power over those of
others.
Legitimate power
In formal groups and organizations, probably the
most frequent access to one or more of the power
bases is ones structural position. This is called
legitimate power. It represents the formal authority
to control and use organizational resources.

Personal power
You dont have to have a formal position in an organization to
have power. Many of the most competent and productive chip
designers at Intel, for instance, have power, but they are not
managers and have no formal power. What they have is
personal power- power that comes from an individuals
unique characteristics.
Expert power
Expert power is influence wielded as a result of expertise,
special skill, or knowledge. Expertise has become one of the
most powerful sources of influence as the world has become
more technologically oriented. As jobs become more
specialized, we become increasingly dependent on experts to
achieve goals.

Referent power
Referent power is based on identification with a
person who has desirable resources or personal
traits. If X like, respect, and admire Y, then Y can
exercise power over X because X want to please Y.
Referent power develops out of admiration of
another and desire to be like that person.

Leader and power politics

By nature, a leader deals with power and
politics.
Power is the ability to influence other people
and events. It is the way a leader extends his
influence over others.
Authority is delegated by a superior to a
junior. But power is earned and gained by a
leader on the basis of his personality, activities
and the situation in which he operates.

 Politics relate to the ways a leader gains and

use power.
It is through politics that a leader is able to
gain control over events and people.

Tactics to Gain Power

Power Tactics - Ways in which individuals translate
power bases into specific actions.
Creating and managing uncertainties
Norm of reciprocity
Identification with power centers
Impression management
Pressure building
Competition
Coalition

1. Creating & Managing Uncertainties person who

can create a fiction of uncertainties and steer the org
into areas of uncertainties will gain power.

The power seeker may manipulate, filter, or withhold

the inf. in his possession and may create the fiction of
uncertainty.

2. Norm of Reciprocity two persons in a continuing

relationship feel a strong obligation to repay their
social debts to each other.
(If you do something for me, I will do something for
you.)

3. Identification with power centers the person

can enjoy more power by identifying himself with
power centers/figures in the organisation and this
can be perceived as a source of power.

4. Impression Management is concerned with the

protection of self image by the person while
intentionally affecting others assessment of him.
Self image of the person affects his attraction to
others which helps him to gain more power. (using
flattery, doing favours for others,.)

5. Pressure Building adopted by persons with high

non-substitutability or group of people like trade
unions to gain more power. (lockout, strikes)
6. Competition refers to rivalry among competing
parties to gain control over organisational resources
which are limited by their nature.
7. Coalition combination of two or more
persons/groups, or organisation for common goal.
(temporary alliance to gain more power)