What is Leadership ? Discuss the Functions of a Leader and Significance of Leadership.

Weihrich and Knootz :

“Leadership is defined as the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of organizational goals.”

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Peter Drucker :

“Leadership is lifting of a man’s vision to higher sights, the raising of man’s performance to a higher standard, and the building of a man’s personality beyond its normal limitation.”

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Theo Haimann :

“Leadership can be defined as the process by which an executive imaginatively guides and influences the work of others on choosing and attaining specified goals by medicating between the individual and the organization in such a manner that both will obtain maximum satisfaction.”

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Following are the Functions that a Leader should perform:

1. TAKING THE INITIATIVE :-The first and foremost job of

a Leader is to take the initiative in all activities. He should not depend upon other’s guidance and direction to do any work. He himself should present in the field, lay down the goals, commence its implications and see that the goals are achieved as per the predetermined targets.

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2. REPRESENTING THE ENTERPRISE :-

As the leader is the true representative of the entire organization he should represent the enterprise and objectives not only to those serving for it but also to the others in the outside world.

3. INTERPRETING :-A Leader is

expected to give reason to his every order. He has to instruct things in the easiest way. If his instructions are not clear, it must create problem for the subordinates.

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4. GUIDING & DIRECTING THE SUBORDINATES :-

A Leader should guide and advice people and direct their behavior for the achievement of organizational goals.

5. ENCOURAGE TEAMWORK :-Without teamwork,

a leader cannot succeed in his task of accomplishing organizational goals. Thus, he must try to win the confidence of his subordinates.

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6. MOTIVATES EMPLOYEES :-

A good leader motivates the employees for higher and better performance. Motivation helps in getting the work done, realizing the objectives, inspiring group efforts, teamwork and getting cooperation and support from the employees for the accomplishment of the assigned tasks.

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1. It is necessary for goal accomplishment.

2. It motivates employees to work to their utmost capacity and full enthusiasm towards the attainment of organizational goals.

3. It causes high performance, especially by building good employee relations.

4. It gives confidence to the followers by making them aware about their qualities and capacities and strengthening their emotions.

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Explain Leadership Styles in detail along with its merits and demerits.

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The term Leadership Style refers to the pattern of behavior, which a Leader adopts to guide his followers towards the attainment of organizational goals.

The nature and form of Leadership Style also affected by existing circumstances, time period, personality of leader, his experience, attitude, nature of followers, external environment and so on.

Basically and broadly there are three important Leadership Style.

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It is also known as Directive Style. An Autocratic Leader possesses decision-making power and exercise complete control over the subordinates. He uses both positive and negative motivations.

For Instance, reward, praise, fear of criticism or punishment.

The Positive Motivation is called as Benevolent Autocratic Style and the Negative Motivation is called as Directional or Oppressive Autocratic Style.

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The Autocratic Leader himself decides all his policies. He gives orders to the subordinates and expects them to follow such orders completely without any question.

This style may be appropriately used where subordinates are uneducated, unskilled, unwise and inexperienced.

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Main advantages of Autocratic Style of Leadership are:

It permits quick decisions as a single person takes most of the decisions.

There are many subordinates in the enterprises that prefer to work under centralized authority structure, a Strict Discipline. They get satisfaction from this style.

As there is no consultation with subordinates, confidential matters can be kept secret.

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Main disadvantages of Autocratic Style of Leadership are:

Subordinates in the enterprise dislike it specially when it is strict and motivations are lacking.

Frustration, low morale and conflict develop in the enterprise which harms the organizational efficiency.

The success of this type of Leadership entirely depends upon the efficiency of the leader.

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The Democratic Leader involves subordinates in the decision making. He encouraged subordinates to use their full capacities and assume greater responsibilities.

The Democratic Leader keeps the subordinates well informed about the matters of their interest and concern, and gives them freedom to think, discuss, express and make decisions.

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Democratic Style is more appropriate where subordinates are educated, skilled, wise and creative. This will help the leader to be the part of a strong and capable force of followers.

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Main advantages of Democratic Style of Leadership are:

It is a successful style of leadership because it is based upon Positive assumption about human beings.

It encourages development of subordinates for better performance of their jobs.

Participation in decision making will lead to better leader-subordinates relations.

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Main disadvantages of Democratic Style of Leadership are:

Decisions cannot be take quickly because the leader consults the subordinates before taking decisions.

It may fails when the communication pattern and the skills are not strong enough.

It is not workable when the subordinates do not want to take extra responsibilities of decision making and becoming part of every decision.

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In Free-Reign Style the subordinates are given a goal to achieve in their own way or sometimes they themselves decide their group goals. In this style the leader behaves as the member of the group. He gives his opinion and suggestion only when it is demanded from him.

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The Free-Reign Style is appropriate where subordinates themselves are very well trained and highly knowledgeable about their tasks and ready to assume extra responsibilities. This style is valid when the company has an effective communication network acceptable to the subordinates and where the leader is ready to compromise with the status in the group and is interested in giving the whole authority to the subordinates.

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Main advantages of Free-Reign Style of Leadership are:

It provides complete freedom to the subordinates so that their motivation and morale can be improved.

There is a full scope for creativity on the part of the subordinates. It helps the subordinates to develop their own Personality.

There is a free flow of communication between the leader and the subordinates.

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Main disadvantages of Free-Reign Style of Leadership are:

Leader’s contribution is completely ignored.

Members of the group do not get the guidance of the leader.

This type of Leadership Style is suitable where the

organizational goals are communicated well in advance and are acceptable to subordinates.

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What are the factors that take part in Choosing a Leadership Style ? Explain different Theories of

Leadership.

In actual practice, it is difficult to suggest that which style is the best because all the three styles have their merits and demerits. Hence the choice of a style depends upon the following factors:

FORCES IN THE MANAGER :- A Manager/Leader must have

confidence in his subordinates. He must feel secure in an uncertain situation.

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FORCES IN THE SUBORDINATES :-The subordinates must be

independent, ready to assume responsibility for decision making. They must have the power of tolerance. They must be interested in solving the problems at hand. They must understand and identify the goals of organization.

FORCES IN SITUATION :-There may be critical situations in

the organization like complex problems, pressure of time etc. The manager and his followers must be effective in this way, to deal with such crucial situations.

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Keith Davis puts forward four important qualities necessary for the Leader.

1) INTELLIGENCE :-The intelligence level of Leader

must be higher than his subordinate’s intelligence level.

2) HUMAN RELATIONS ATTITUDE :-A successful manager/leader must

have good relations with his subordinates, he must understand their problems and give due importance to the self-respect of his followers.

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3) SOCIAL MATURITY :-Leaders are socially mature and

sensitive, emotionally stable, able to bear shocks and pressures, and have a variety of interest and activities.

4) MOTIVATION & ACHIEVEMENT DRIVES :-

Leaders must be interested in inner satisfaction and not in material rewards. The Leader must possess creativity, knowledge of his field, communication skill and ability to judge the situation.

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Autocratic Leaders

Democratic Leaders

Best Leaders

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High Structure & High Consideration

High Consideration & Low Structure

Low Structure & Low

Consideration

High Structure & Low Consideration

+ Structure- Structure

- Consideration

+ Consideration

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Leadership Theories Continue ……

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iii. MIDDLE OF THE ROAD POLICY :-

People & Production are equally important for the managers.

iv. TASK-ORIENTED MANAGERS :-

In this style the leaders have greatest concern for organization and almost no concern for subordinates.

v. TEAMWORK MANAGEMENT :-

The leader must give his full attention to the workers and towards the organization’s goal.

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ii. SYSTEM “2” :-It is known as “Benevolent-

Authoritative System”. In this approach managers have confidence in subordinates but up to some extent. He motivates them with rewards, fear and punishment. Subordinates also participate in decision-making but in a particular limit.

iii. SYSTEM “3” :-It is referred to as “Consultative

System”. Managers belonging to it have sizeable trust in their subordinates, invite suggestions and opinions, and motivate with rewards although using little threat and punishment.

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iv. SYSTEM “4” :-It is known as “Participative-

Group System”. Managers fall in this category believe in full employee participation, two-way communication and have trust in subordinates.

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Situation Theory explains that the leadership quality is associated with person’s ability to act accordingly to the situation or environment. A leader must be able to understand and analyze the situation.

There are the three main Situation Approaches:

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Leader VS Manager

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The material was collected from the following sources:

Book: ‘Principles of Management’ by Naveed Nawab.

Book: ‘New Management’ by Prof. Mohammad Amin

Khalid.

Book: ‘Management’ by Richard L. Deft.

Internet: All the relevant pictures were searched

from ‘Google Search Engine.’

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Thank you so much

Our honorable teacher Sir Hassan Raza.

The students of BS Commerce (3rd Semester) to cooperate with us. We wish you

all the very best for your future.

Please pardon us if we hurt you throughout the Presentation.