INTERNATIONAL UNIVERSITY COLLEGE

OF TECHNOLOGY TWINTECH
(IUCTT)

ASSIGNMENT 01

Prepared for: Prof. Dr. Chandra Sekaran Muniratnam

Dean Twintech School of Business (TBS)
Course : Organization Behavior
Prepared By: Gulam Mahiuddin Murad
Student DBA TBS (IUCTT)
ID: IUC (SD)- 5/13 - 11382
Date: 04 April 2011
 INDEX

i. Title Page P-1

ii. Title fly P-2
ii. Acknowledgement p-3
1. Answer to question no 1(a) P-4
Introduction P-4
Definition of Leadership P-4
Charismatic leadership style P-4
Transactional leadership Style P-5
Transformational Leadership Style P-6
Authentic Leadership Style P-8
Select and Retain Highly Successful P-8
Leaders for the Organization.
Develop Effective Leader P-10
Applying Transformational Leadership P-12
to the Organization
Conclusion P-12
2. Answer to question no 1(b) P-13
Table 2 P-14
3. References P-15
4. End Notes P-18

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 Acknowledgement

I am very much grateful to Prof. Dr. Chandra Sekaran Muniratnum, who is

our course Director and the Dean of Twintech School of Business (TBS),
for assigning the Assignment. By this assignment I have got the
opportunity to learn about the impact of Leadership in Organization
Behavior. This assignment helps me to know the deep Leadership theories,
to select and develop leadership for the organization and distinguish
Difference between Leadership and Management.

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Question -1
a) Leaders in any organization may fall under four (4) types, namely
Charismatic, Transformational, Transactional and Authentic. Discuss how
organizations select and develop effective leaders.
Answer:
Introduction
Good leaders are made not born. To be a good leader one must be clean in character, honest
to people, man of word (commitment), deep behavioral knowledge
(moral), skill, gaining trust, Visionary and finally the desire and
willpower only then s/he can be an effective leader. Good leaders develop
through a never ending process of self-study, education, training, and
experience (Jago, 1982).
"The person who exhibits leadership is ... someone that makes things
happen that would not happen otherwise."- A.D. Edwards and D. Jones

Definition of Leadership
There are several definition can be seen in different books of Leadership research. Here I state
some of them in follows.
(I) 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.
(II) Leadership is a process whereby an individual influences a group of individuals to
achieve a common goal.
(III) Leadership is influencing people — by providing purpose, direction, and motivation
— while operating to accomplish the mission and improving the organization.
In this assignment, I will take a look at those four of the better-known leadership types of
Charismatic, Transformational, Transactional and Authentic Leadership of Max Weber
(1948), George Burns (1978), and Daniel Goleman (1995). These three theorists had taken us
from the development of the concept of transformational leadership through the beginnings of
emotional intelligence by using the Leadership Levelsi.

Charismatic leadership style

"A rare personal quality attributed to leaders who arouse fervent popular devotion and
enthusiasm." A definition of Charisma
Throughout history we can see example of how some leaders have used the Charismatic
leadership style to reach their objectives.
This world had seen the great religious and an immensely effective political leader, the most
charismatic leader MUHAMMAD1 (PBUH) born in the year 570, in the city of Makkah. Michael
H. Hart rated MUHAMMAD (PBUH) as number one in his book “The 1002”.In the
introduction he stated “Today, thirteen centuries after his death, his influence is still
powerful and pervasive.” He concluded the biography with the words “It is this
unparalleled combination of secular and religious influence which I feel entitles
MUHUMMAD to be considered the most influential single figure in human history.”
And former US President John F Kennedy and his look-alike Former US President Bill
Clinton have often been called “The most charismatic leaders of 2020th century” Another
1
Muhammad is the prophet of Islam and Only Charismatic Leader to follow by MUSLIMS.
2
The book “THE 100” states a ranking of the most influential person in History. By Michael H. Hart

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good example would be Adolf Hitler. While looking in retrospect, Hitler was a tyrant. But the
primary reason for him to raise from a “Bohemian corporal” to “Herr Führer” was his ability
to captivate people into following him (right into the grave, I might add).
It is interesting to watch a Charismatic Leaderii3 ' work the room' as they move from person
to person. They pay much attention to the person they are talking to at the moment, making
that person feel like they are, for that time, the most important person in the world.
Charismatic leaders, who are building a group, be it is a political party, a cult or a business
team, will often focus strongly on making the group very clear and distinct, separating it from
other groups. They will then build the image of the group in the minds of their followers, as
being far superior to all others. – This is exactly what HITLER and his Aryan Superiority
Theory did.
The Charismatic Leader will typically attach themselves firmly to the identity of the group,
such that to join the group is to become one with the leader. In doing so, they create an
unchallengeable position for themselves.
Charismatic Leadership

Figure 1

Charismatic Leader is comprised of three components: Envisioning, Empathy and

Empowerment. These key components stimulate followers, need for achievement, need for
affiliation and need for power. These motivational effects of charismatic Leadership then act
to improve followers, role perceptions, task performance, Job satisfaction, sense of collective
identity, Organizational citizenship behavior, and self leadership.
Transactional leadership Style
Transactional leadership seeks to motivate followers by appealing to their own self-interest.
Transactional leaders use conventional reward and punishment to gain compliance from
their followers.
They have continuing, often unspoken interaction that sound like forms like:
"Do as I say and you will get a raise."
"Meet this quota or you will get fired."

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Charismatic leadership is a component of transformational leadership and idealized influence
includes idealized traits and idealized behaviors. Inspiring the honor and proud to followers and their
contribution to group interests are, inter alia, most obvious idealized characteristics of a leader.

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Transactional leaders accept the goals, structure and culture of the existing organization. They
must do so because this type of leadership is ineffective at bringing significant change. Some
researchers added to Burns original theory and it is thought by many today that transactional
leadership can encompass the following types of behavior:
1. Contingent Reward – To influence behavior, the leader clarifies the work needed to be
accomplished. The leader uses rewards or incentives to achieve results when expectations are
met.
2. Management by Exception:
- Passive: To influence behavior, the leader uses correction or punishment as a response to
unacceptable performance or deviation from the accepted standards.
- Active - To influence behavior, the leader actively monitors the work performed and uses
corrective methods to ensure the work is completed to meet accepted standards.
3. Laissez-Faire Leadership – laissez-faire leaders avoid attempting to influence their
subordinates and shirk supervisory duties. They bury themselves in paperwork and avoid
situations that preclude any possibility of confrontation. They leave too much responsibility
with subordinates, set no clear goals, and do not help their group to make decisions. They tend
to let things drift, since their main aim is stay on good terms with everyone.

Transformational Leadership Style

Leadership CANNOT BE TAUGHT such as Teaching, and therefore courses, cannot produce
great leaders precisely because leadership is essentially an AESTHETIC4 activity. The most
schools can do is provide some of the tools and techniques usable in creative work but they
cannot create creativity. One can be taught to draw, sculpt, compose and write better than one
would otherwise, but one cannot be taught to do so creatively with excellence.
Students are taught to seek solutions that their teachers expect; student success depends on it.
This even carries over to corporate managers who, when presented with a problem, want to
know what kind of solution their bosses expect. This approach precludes creativity because
creativity is the production of solutions that are not expected. Transformational leaders are
driven by ideas, not by the expectations of others. They are skillful at beating the system, not
surrendering to it.
To use this approach in the workforce, one must first understand exactly what
transformational leadership is. In the simplest terms, transformational leadership is a process
that changes and transforms individuals (Northouse, 2001). In other words, transformational
leadership is the ability to get people to want to change, to improve, and to be led. It involves
assessing associates' motives, satisfying their needs, and valuing them (Northouse,
2001).Therefore, a transformational leader could make the company more successful by
valuing its associates.
One such example is Sam Walton, founder of Wal-Mart, who often visited Wal-Mart stores
across the country to meet with associates to show his appreciation for what they did for the
company. Sam Walton gave “rules for success” in his autobiography, one of which was to
appreciate associates with praise (Walton, 1996).
There are four factors to transformational leadership, (also known as the “four I's”): idealized
influence, inspirational motivation, intellectual stimulation, and individual consideration.
Each factor will be discussed to help managers use this approach in the workplace.

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It is one of the four aspects of development identified by Ancient Greek philosophers each
of which is separately necessary but all of which, taken together, are sufficient for continuous
development. These are the pursuits of truth, plenty, the good, and beauty /fun (aesthetics).
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• Idealized influence describes managers who are exemplary role models for associates.
Managers with idealized influence can be trusted and respected by associates to make good
decisions for the organization.
• Inspirational motivation describes managers who motivate associates to commit to the
vision of the organization. Managers with inspirational motivation encourage team spirit to
reach goals of increased revenue and market growth for the organization.
• Intellectual Stimulation describes managers who encourage innovation and creativity
through challenging the normal beliefs or views of a group. Managers with intellectual
stimulation promote critical thinking and problem solving to make the organization better.
• Individual consideration describes managers who act as coaches and advisors to the
associates. Managers with individual consideration encourage associates to reach goals that
help both the associates and the organization.
Effective transformational leadership results in performances that exceed organizational
expectations. Figure 1 illustrates the “additive” effect of transformational leadership because
managers must pull together the components to reach “performance beyond expectations”
(Northouse, 2001).
Each of the four components describes characteristics that are valuable to the
“transformation” process. When managers are strong role models, encouragers, innovators,
and coaches, they are utilizing the “four I's” to help “transform” their associates into better,
more productive and successful individuals. Northouse (2001) states that in 39 studies of
transformational literature, individuals who exhibited transformational leadership were more
effective leaders with better work outcomes. This was true for both high- and low-level
leaders in the public and private sectors (Northouse, 2001). Therefore, it can be very
advantageous for managers to apply the transformational approach in the workplace.

IDEALIZED INF

INSPIRATIONAL M
Figure 1. Additive effect of transformational leadership.

Authentic Leadership Style

INTELLECTUAL ST
Leadership is a subset of action. But not all action is authentic leadership. Leadership is
authentic action, a unique and honorific mode of engagement in life.

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Authentic Leadership defined: “Authenticityiii5” is knowing, and acting on, what is true and
real inside yourself, your team and your organization AND knowing and acting on what is
true and real in the world. It is not enough to walk one’s talk if one is headed off, or leading
one’s organization, community or nation, off a cliff! ~Bob Terry
The word authentic derives originally from Greek sources meaning one who accomplishes.
To be authentic is to act, to embody and to participate in life. Webster’s New International
Unabridged Dictionary defines authenticity as “fidelity, actuality and fact, compatibility with
a certain source or origin, accordance with usage or tradition, a complete sincerity without
feigning or hypocrisy.” However, this dictionary definition does not reveal all the word’s
philosophical complexity.
Authentic leadership can be define as a pattern of leader behavior that draws upon and
promotes both positive psychological capacities and a positive ethical climate, to foster
greater self-awareness, an internalized moral perspective, balanced processing of information,
and relational transparency on the part of leaders working with followers, fostering positive
self-development.
Self-awareness refers to demonstrating an understanding of how one derives and makes
meaning of the world and how that meaning making process impacts the way one views
himself or herself over time. It also refers to showing an understanding of one’s strengths and
weaknesses and the multifaceted nature of the self, which includes gaining insight into the self
through exposure to others, and being cognizant of one’s impact on other people (Kernis,
2003).
Relational transparency refers to presenting one’s authentic self (as opposed to a fake or
distorted self) to others. Such behavior promotes trust through disclosures that involve openly
sharing information and expressions of one’s true thoughts and feelings while trying to
minimize displays of inappropriate emotions (Kernis, 2003).
Balanced processing refers to leaders who show that they objectively analyze all relevant
data before coming to a decision. Such leaders also solicit views that challenge their deeply
held positions (Gardner, Avolio, Luthans, et al., 2005).
Internalized moral perspective refers to an internalized and integrated form of self-
regulation (Ryan & Deci, 2003). This sort of self-regulation is guided by internal moral
standards and values versus group, organizational, and societal pressures, and it results in
expressed decision making and behavior that is consistent with these internalized values
(Avolio & Gardner, 2005; Gardner, Avolio, Luthans, et al., 2005).

Select and Retain Highly Successful

Leaders for the Organization:
According to Burns', the TRANSFORMATIONAL LEADERSHIP6
is more effective than those of the discussed typed Leadership
Style’s such as CHARISMATIC, AUTHENTIC and
TRANSACTIONAL LEADERSHIP7. A comparisons table (Table 1) of these Four (4) types theory
is attached in the endnote of the Assignment. Where the appeal is to more selfish concerns.

5
Authenticity, like any category of thought, carries with it historical baggage. The term’s original meaning and
multiple contemporary interpretations both limit and provide the foundation for this definition.
6
“…occurs when one person takes the initiative in making contact with others for the purpose of an exchange of
valued things”. From “Leadership” Burns (1978), page 20.
7
“…occurs when one person takes the initiative in making contact with others for the purpose of an exchange of
valued things”. From “Leadership” Burns (1978), page 19

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An appeal to social values thus encourages people to collaborate, rather than working as
individuals (and potentially competitively with one another).
Many business leaders, consultants, practitioners and academics have written about leadership
and being a good leader and that wealth of material is both a boon and bane. On the one hand
information is readily available. On the other hand there are so many different definitions and
interpretations that it can easily become confusing. Since there is more than one way to be a
good leader developing leadership skills is about selecting ideas that are personally effective.
Selecting and retaining highly successful leaders is a critical challenge for any organization.
Selecting a successful leader who is a good fit for your organization is in itself a difficult task.
But the challenge does not end there. The best people are always in high demand and
retaining them is critical for the success of your enterprise. Here are some time-tested tips that
will enable you to effectively select and retain the most successful leaders for your
organization. (by Wayne Nemeroff)
An error in judgment in the hiring process can prove to be disastrous. A bad hiring decision,
especially for a leadership role, affects the organization negatively in various ways. Some of
them are increased management time and efforts, training time and costs, increased error rates
leading to customer dissatisfaction, product development problems, loss of competitive
advantage, loss of others’ productivity, damage to the organization’s image, decreases in
people’s performance, out of pocket costs and many more.
Thus, scientific processes with guaranteed results like employee assessments should be used
while selecting the leaders for your organization. These tools give you a complete
psychological profile of the candidate and help you correctly determine his/ her job match for
the position that you have in mind. The best results are obtained when a comprehensive and
objective assessment tool is used for the selection process, measuring various behavioral
traits, cognitive abilities, interests, ethics, values, and work style.
Next is the challenge of retention. According to recent research, most HR professionals in top
level organizations use the following programs and policies in order to help retain their
leaders. The 3 most common programs that companies used are:
- Competitive vacation and holiday benefits
- Competitive salaries
- Tuition reimbursement
Also, it has been observed that retention is directly correlated to the work environment offered
to the employees. As long as your leaders are well motivated, offered fresh challenges, given
competitive compensation and other benefits, and given opportunities to develop themselves,
they are most likely to stay on with you for the long haul.
Equally important, it has been demonstrated when leaders are placed in positions that are not
good matches for the requirements of a given position then job dissatisfaction sets in, sooner
or later. And, when job satisfaction decreases, these leaders will begin to explore different job
opportunities. Under these conditions, two things are likely to happen. First, they may quit
and leave the organization. Or, second, some of these leaders will quit and stay. These Q & S
leaders do just enough to get by so they do not get fired. But, they are not performing up to
their capabilities; nor are they motivated or committed employees. They are just bidding their
time until some other job they like better comes along. An organization can not afford to have
leaders who are quitters. These leaders can do irreparable harm and seriously reduce an
organization’s performance levels and quality standards.
Leaders aren’t good matches for the organization, it is only a matter of time before their job
satisfaction goes down and they will eventually quit even though they may not immediately
leave. The solution is simple. Use assessments to make sure you do not hire these miss-
matched leaders. Selecting high leader-job matches will ensure that you not only hire but also
retain successful leaders for your organization.

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Develop Effective Leader
To develop an effective leader one should Practice the following top 10
Characteristics:
Leadership plays an important role in one’s life. If you are a business
owner you need to be a leader in the field of your business. To be a
successful leader, one must demonstrates some or all of the following
characteristics:
The first characteristic of a competent leader is the ability to listen to other people. Many
leaders do too much talking and sometimes ignore the needs of others from what they say
which leads to negativity and incompetence. A leader has to stand up and talk but too much
talking and not enough listening will drive pre-alphas and aspiring leaders who are prospects
for your home based business away from it. A leader is responsible for everyone and a
successful leader knows how to listen to and take care of peoples’ concerns. When you listen
to people and take care of their needs they will gain your respect and they will want to
become your business partner or associate.
The second characteristic of a successful leader is the ability to acknowledge and change: This
is probably the hardest part to do. People often refuse to change. They believe their services
or products are the best, which, there’s nothing wrong with that. But when there are feedbacks
coming from customers or future leaders in your business you have to listen, then
acknowledge them and make changes to provide better customer service or relationships with
your partners. Along your journey in your personal and professional lives you will have to
also make changes in your strategy and have an open mind to help cater to your business
partners or customers because they are the ones who will keep your business alive through
their interests. Also when times changes strategies need to be twirked as well to keep up with
modern times and a successful leader will be open to change in order to stay number one as
time goes on.
The third characteristic of a successful leader is the ability to form one-on-one relationships
with your future business associates or customers. If you develop a trusting relationship over
time you will develop a strong trust between your associates and customers and this will keep
them loyal to you and your business and you will develop a long-lasting friendship.
The fourth characteristic of a successful leader is that a leader surrounds himself or herself
around like-minded or positive people. Remember that you are an average of the five people
that you spend the most time with. Leaders surround themselves with other leaders or people
who want to become leaders in their business because they want to learn and grow in positive
leadership or teach others to become successful leaders and positive influences in their
business. Leaders toss out negativity and help people who are negative try to become positive
and put them around them positive leaders to try and get them to change for the better and if
they are not becoming positive they do not get them involved in their potential success
because it will only bring it down.
The fifth characteristic of a successful leader the ability to know yourself: It is very important
to know what you’re best at, and what are your weaknesses. A business is a team sport and a
leader must develop a team chemistry in their business and make sure that everyone respects
each other or else the team will not function properly and as a result the business or
organization will not be successful. Often one cannot handle all the aspects of a business.
Leaders need to know when to seek for assistance and delegate tasks in their business to the
appropriate people who are the best for each position. There’s no shame on that because a
leader needs followers to support his organization and a true leader will help those followers
become leaders if they want to become a faithful and inspiring leader themselves.

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The sixth characteristic of a successful leader is that they refuse to let other people dictate
how they should do certain things. We are not living under someone else’s shadow. We must
take control and ownership of our lives and careers and never let go. A leader has a vision and
a dream and will capitalize on every opportunity he or she has to fulfill that vision. A leader
will never let anyone bring them or their team members or customers down and they will
continue to motivate their subordinates and themselves to never give up and to do what it
takes to continue to live out their vision and accomplish their dreams until they come true. A
true leader will not let anyone stop them or hinder them from them success and they learn
how to manage the biggest distractions.
The seventh characteristic of a successful leader is the ability to communicate:
Communication is important. Even if you are running a home online business and you use
email as a communication channel. Down the road, you might want to do a video to promote
your company. You might receive TV interviews. It’s never too late to practice your
presentation and communication skills. Successful leaders always make sure that everyone
involved or who will be involved in their business are well informed about everything that is
going on in their business and makes sure that everyone is on the same page and getting their
tasks done or continuously learning and understanding what it takes to become a successful
business leader or individual person. A leader should also never be afraid or out of reach in
order to help somebody with a simple task or for a way for them to improve their lives or get
to their ultimate goals.
The eighth characteristic of a successful leader is that successful people display high levels
of optimism and confidence. They believe in themselves and they are not afraid of failures.
They see every obstacle as a stepping-stone to their success. They turn challenges into
motivators and become their advantages. They also teach these same philosophies to their
subordinates and they have faith and confidence in them as well. If someone does not have
confidence in their partners and followers they will never get anywhere because of a lack of
trust that will push morale very low and people will not perform their tasks well or they will
end up giving up and the organization or business will fail. A true leader will have confidence
in every person in the business and everyone will work as a team and trust one another and in
the end everyone will all work harder and smarter together in order to accomplish their goals.
The ninth characteristic of a successful leader is that they have passion for what they do. If
someone doesn’t like what they do they will not be happy and perform poorly and as a result
it will seep down through the business and then everyone else will lose passion and eventually
the organization will fail. A leader must love what they do and demonstrate that to everyone
else and that will motivate everyone to love their jobs. The more passionate that a leader is,
the more they will practice and spend time at what they love in order to become better and
eventually the best. This passion and time spent on practice will help the organization or your
own business expand and become the best.
The tenth characteristic is that people who are successful are the ones who develop high levels
of patience and dedication to see the results. They continue to practice as much as they can
and do not try to rush the results. A leader is willing to do what ever it takes in order to
practice and become better everyday. They also understand that success does not happen
overnight and that it might take time and failed tries before they begin to see success. The key
is that the most successful people practice everyday and never give up! The people who give
up will never be successful because they will never continue towards their success when they
give up! Tiger Woods is a human being just like the rest of us. The reason why he is rich and
successful is because he stood at the head of the pack by practicing all the time until he did
become number one and not letting the bad days bring him down even if it took a very long
string of bad days in order for the good day to come around. Tiger Woods is the most
successful because he is the most passionate about what he does and practiced more than any

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of his other peers because he was the most determined to be the best. You can become the
best as well if you determine to practice and continue to do so until you know you are the
best. The one who practices the most and is the most passionate is usually going to be the
best.
By Following these concepts, one can be a successful leader!
Applying Transformational Leadership to the Organization:
GREAT LEADERS ARE GREAT LISTENERS!!!!!- Robert K. Greenleaf8.
Because transformational leadership covers a wide range of aspects within leadership, there
are no specific steps for a manager to follow. Becoming an effective transformational leader is
a process. This means that conscious effort must be made to adopt a transformational style.
Understanding the basics of transformational leadership and the four I's can help a manager
apply this approach. According to Northouse (2001), a transformational leader has the
following qualities:
• empowers followers to do what is best for the organization;
• is a strong role model with high values;
• listens to all viewpoints to develop a spirit of cooperation;
• creates a vision, using people in the organization;
• acts as a change agent within the organization by setting an example of how to initiate and
implement change;
• helps the organization by helping others contribute to the organization.
Conclusion
It has some “strength and weaknessesiv” added in the endnote of this assignment.
Transformational leadership is a vital role for effective managers because leader effectiveness
determines the success level of the organization. According to Hesselbein and Cohen (1999,
p. 263), organizations that take the time to teach leadership are far ahead of the competition.
By becoming familiar with the transformational leadership approach and combining the four
I's, managers can
become effective leaders in the business world.
Transformational leadership can be applied in one-on-one or group situations. Using this
approach, the manager (leader) and the associates (followers) are “transformed” to enhance
job performance and help the organization be more productive and successful.

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”The only test of leadership is that somebody follows.”- Robert K. Greenleaf

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Question -1
b) Are leadership and Management different from one another? If so, how?
Answer
"The world is full of managers and desperately short of leaders – real leaders”. According to
the current wisdom, managers are principally administrators they write business plans, set
budgets and monitor progress. Leaders on the other hand, get organizations and people to
change. That's true, as far as it goes, but there is a more useful distinction between
management and leadership: Management is a function that must be exercised in any
business, leadership is a relationship between leader and led that can energize an
organization.
Leaders Provide vision. Managers9 Provide resources. Leadership (Leader) and
management (Manager/Bossv) must go hand in hand. They are not the same thing. But they
are necessarily linked, and complementary. Any effort to separate the two is likely to cause
more problems than it solves.
Management is mandatory. Not managing effectively and efficiently to meet one’s assigned
responsibilities means certain organizational death, Leadership on the other hand, is optional.
Still, much ink has been spent delineating the differences. The manager’s job is to plan,
organize and coordinate. The leader’s job is to inspire and motivate. In his 1989 book “On
Becoming a Leader,” Warren Bennis composed a list of the differences:
– The manager administers; the leader innovates.
– The manager is a copy; the leader is an original.
– The manager maintains; the leader develops.
– The manager focuses on systems and structure; the leader focuses on people.
– The manager relies on control; the leader inspires trust.
– The manager has a short-range view; the leader has a long-range perspective.
– The manager asks how and when; the leader asks what and why.
– The manager has his/her eye always on the bottom line; the leader’s eye is on the horizon.
– The manager imitates; the leader originates.
– The manager accepts the status quo; the leader challenges it.
– The manager is the classic good soldier; the leader is his or her own person.
– The manager does things right; the leader does the right thing.
Perhaps there was a time when the calling of the manager and that of the leader could be
separated. A foreman in an industrial-era factory probably didn’t have to give much thought
to what he was producing or to the people who were producing it. His or her job was to follow
orders, organize the work, assign the right people to the necessary tasks, coordinate the
results, and ensure the job got done as ordered. The focus was on efficiency.
But in the new economy, where value comes increasingly from the knowledge of people, and
where workers are no longer undifferentiated cogs in an industrial machine, management and
leadership are not easily separated. People look to their managers, not just to assign them a
task, but to define for them a purpose. And managers must organize workers, not just to
maximize efficiency, but to nurture skills, develop talent and inspire results.
The late management guru Peter Drucker was one of the first to recognize this truth, as he was
to recognize so many other management truths. He identified the emergence of the
“knowledge worker,” and the profound differences that would cause in the way business was
organized.

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You can be appointed as a manager, but you aren’t a leader till people chose to follow you”
John Adair

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With the rise of the knowledge worker, “one does not ‘manage’ people,” Mr. Drucker wrote.
“The task is to lead people. And the goal is to make productive the specific strengths and
knowledge of every individual.”
After all of the above abstract findings there are so many things to take us in a confusing state
about Leadership and Management is not same. According to John Reiling, we have Ten
structured differencesvi, which are as follows:
Table 210
SL.N Leadership Skills Management Skills
1 More concerned with vision More concerned with implementation than
the vision
2 Oriented toward a driving change, Â Â Â andOriented toward a adapting to change, not
anticipating environmental changes taking the initiative
3 Concerned with dynamics of a situation, whichConcerned more with technique; sometimes
provides hints on how to leverage or shape;preoccupied with maintaining order and the
concerned with setting or changing the culture status quo, but otherwise with adapting to
the culture
4 Concerned with empowering Concerned with BEING empowered
5 Actions demonstrate skill, but are strongly character Actions tend to be more strongly skill-
based based
6 More concerned with positive possibilities More concerned with negative
consequences
7 Concerned with building and/or reshaping theConcerned with filling out the prescribed
organization; willing to use skills of persuasion toorganization; adopt behavior and attitudes
advance vision and ideas of possibilities –according to level or position; tend to be
regardless of position more protective of position, information,
and knowledge; may feel that a situation is
out of their control or influence
8 Understand their strengths and weaknesses, and areTend to avoid risks for self protection, and
willing to learn from their mistakes and grow; able hence growth is more limited; might
and interested in helping others do the same understand strengths and weaknesses, but
unaware of how to manage them to achieve
goals
9 See relationships as opportunities for growth;See a more limited web of relationships in
personal goals in alignment with organizationalterms of immediately adjacent areas; tend
goals; recognize that interdependence is the bestto focus mostly on goals set by others, and
way to achievement work more independently within
organizational limitations   Â
10. Build a system to support goals, empower others,Concerned with segmenting areas of
and provide direction; promote sharing andresponsibility; become indispensable and
collaboration; concerned with removal ofpart of the system; overly concerned with
performance barriers; and continued growth of teamwhat team members do and how   Â
members
By observing those above difference we can evaluate ourselves on these and think about what
we need to do to raise our level of leadership.
This is how Management and Leadership are different from each other.

References
10
The following matrix offers a good grouping of characteristics to think about for project
managers:

14
Hart, Michael H., The 100,A ranking of the most influential person in history, pp1-3.
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CA: Sage Publications, Inc.
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Quarterly, 15(6), 801-823.
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15
Bass, B., & Steidlmeier, P. (1999). Ethics, character, and transformational leadership
behavior. Leadership Quarterly, 10(2), 81-217.
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Web Reference:
http://www.coastwiseconsulting.com/Charismatic%20Leadership%20-%20OCRed.pdf.
http://www.transformationalleadership.net
http://archon.educ.kent.edu/Oasis/Leadership/over2.htm
http://Top7Business.com/?expert=Akhil_Shahani
http://www.lawofattractionsuccessonline.com/author/ddlawofa/
http://www.lawofattractionsuccessonline.com/successful-leaders/
http://www.lawofattractionsuccessonline.com/top-10-characteristics-of-a-successful-leader/
http://www.nwlink.com/~donclark/leader/leadob.html
http://leader.html/
http://www.amazon.com/exec/obidos/tg/detail/-/007239675X/bigdogsbowlofbis/
http://www.amazon.com/HUMAN-RELATIONS-WORK-Organizational-
Behavior/dp/B003BFNY0Y/
http://www.amazon.com/exec/obidos/tg/detail/-/007239675X/bigdogsbowlofbis/
http://www.amazon.com/Origins-Growth-Action-Learning/dp/9144990715/
bigdogsbowlofbis/

16

Comparisons of Charismatic Leadership, Authentic Leadership Theory, Transactional Leadership Theory, and Transformational
Leadership Theory
Theoretical Components
Charismatic Leadership
1.Vision
2. Inspiration
3. Role modeling
4. Intellectual stimulation
5. Meaning-making
6. Appeals to higher order needs
7. Empowerment
8. Setting of high expectations
9. Fostering collective identity
Transformational Leadership
Idealized influence
Inspirational motivation
Intellectual stimulation
Individualized Consideration
Transactional Leadership
Contingent Reward
Management by Exception
Authentic Leadership
1.Leader self-awareness
2.Leaders self-sacrificing
3.Self-disclosure
4.Self-transcendence
5.Relational transparency
6.Internalized moral perspective
7.Balanced processing
Note: � √ = Focal component; � * = Minor or Implicit component.
Table 1
Charismatic Transformational Transactional Authentic
Leadership Leadership Leadership Leadership
√ √
√ √
√ √
√ √
√ √
√ √
√ √
√ √
√ √
√ *
√
√
√
√
√
√ √
√ √
√ √
√ √
* √
√ √
* √
17
End Notes:

18
i

ii
"Charismatic visionaries lead people ahead-and sometimes astray." – Fortune Magazine
iii
Leadership is the ability to make wise adept choices, both singularly and collectively, by persons who courageously serve
the welcoming promise of authenticity. ~Bob Terry
iv
Strengths and Weaknesses of Transformational Leadership: As with any theory or approach to leadership,
strengths and weaknesses become evident. Northouse (2001) identifies the strengths and weaknesses of the transformational
leadership approach as follows:
• Strengths are widely researched (using well-known leaders), effectively influence associates on all levels (from one-on-
one to the whole organization), and strongly emphasize associates' needs and values.
• Weaknesses have many components that seem too broad, treat leadership more as a personality trait than as a learned
behavior, and have the potential for abusing power.
v
Although your position as a manager, supervisor, lead, etc. gives you the authority to accomplish certain tasks and
objectives in the organization (called Assigned Leadership), this power does not make you a leader, it simply makes you the
boss (Rowe, 2007). Leadership differs in that it makes the followers want to achieve high goals (called Emergent
Leadership), rather than simply bossing people around (Rowe, 2007). Thus you get Assigned Leadership by your position
and you display Emergent Leadership by influencing people to do great things.
vi
The differences
Starting the debate from the basic purpose of leadership and management will certainly help us in better understanding the
overlap among the two as it starts there. In the organizational context leadership can be defined as a process through which
an individual influences a group of individuals to achieve a common goal (Peter G. Northhouse, Leadership theory and
practice). The function of management is to ensure fulfilment of organizational goals in a consistent, efficient and orderly
way.
What prompts comparisons of leadership and management is the fact that they both are viewed as effective means of
achieving organizational goals. Leadership is about influence and so is management. But the similarity ends here. John P.
Kotter has distinguished leadership from management in a fundamental way as shown below:
Functions of managementLeadershipPlanning
Establishing agendas
setting time frames
Budgeting (prioritising and allocating resources)Establishing direction
Creating vision
Seeking commitment through culture building
Identifying strategiesOrganizing / staffing
Providing structure
Establishing rules and procedures
Deploying people (placement)Aligning people
Communicating goals
Seeking commitment through culture building
Building teamsControlling
Designing incentive schemes
Review against plans
Initiating corrective actionsMotivating and inspiring
Inspiring and energizing people
Empowering people
Satisfying unmet needs of the people