CHAPTER I INTRODUCTION - Shodhgangashodhganga.inflibnet.ac.in/.../32420/9/09_chapter_1.pdf · 2018....

CHAPTER I

INTRODUCTION

Introduction

It is well known that in every human activity a leader is needed to guide a group

of people. In general practice the head of the family is the most common leader. On the

quality of this leader, be it the father or the mother depends the progress, happiness and

fortunes of the family.

In modern society thousands of individuals are appointed or elected to shoulder

the role and responsibilities of leadership. It happens in schools and colleges ( Class

captains, sports team captains and captains of other activities) factories and farms,

business enterprises, dispensaries and hospitals, in the civil and military organizations of

a country and public life, at all levels, in short in every walk of life. If these leaders are

good men or women then they promote unity, harmony, strength, prosperity and

happiness in society.

It is well to remember that leadership cannot be taught in class. However every

individual does have the capability to transform himself. To improve our character is one

of the most challenging, yet the most exciting rewarding and joyful human activity.

The true leader is one who holds enterprise together and keeps spirit high; wear

no standard uniform of personality and spring from no single heritage.

Nature of Leadership

Leadership has been well researched over the years, yet a lack of consensus in

many aspects of leadership still remains. Despite the fact that several thousand books,

articles, and papers have been written on the phenomenon of leadership, there is still not

an appropriate, consensus definition that is universally accepted. According to Stogdill

(1974), “there are almost as many definitions of leadership as there are persons who have

attempted to define the concept”.

Although most researchers generally define leadership according to their major

areas of interest and personal perspectives, most definitions are based on the belief that

2

leadership is a process that occurs as one individual influences one or more others in an

effort to facilitate organizational or group performance Yukl G (2002). Similarly,

Northouse (2001) identified four central components to the concept of leadership: (1)

leadership is a process, (2) leadership involves influence, (3) leadership occurs within a

group context, and (4) leadership involves goal attainment.

The following examples reflect the various definitions of leadership that have

been proposed over the years. Gardner (1990) defined leadership as “the process of

persuasion or example by which an individual (or leadership team) induces a group to

pursue objectives held or shared by the leader and his or her followers” (P. 1).

Kouzes & Posner (1997) defined leadership as “the art of mobilizing others to

want to struggle for shared aspirations” (P. 30). Northouse (2001) defined leadership as

“a process whereby an individual influences a group of individuals to achieve a common

goal” (P. 3). Bass (1990) defined leadership as “an interaction between two or more

members of a group that often involves a structuring or restructuring of the situation and

the perceptions and expectations of the members” (P. 19).

One of the characteristics common to each of these definitions is the presence of

other people. In his book Lead, Follow, or Get Out of the Way James Lundy (1990)

offers the following simple definition of a leader, "A leader is anyone who has followers"

(P. 20). According to this definition, leaders can exist anywhere within the organizational

hierarchy. Leadership should not be equated with position, power, authority, or status

(Bolman & Deal, 1997; Gardner, 1990). Leadership should be viewed as more of a

function of the relationship that exists between leaders and followers rather that the title,

power, status or authority one possesses within the organization. This is not to say that

people in administrative and management positions should not be considered leaders.

They are leaders not because of their title, but because people around them grant their

cooperation and follow them (Bolman & Deal).

Leadership is a universally accepted concept, yet one that is surrounded by

confusion and disagreement (Bolman & Deal, 1997). According to Bennis and Nanus

(1997), " 'Leadership' is a word on everyone's lips," and "Everyone agrees there is less of

it than there used to be" (P. 1). They go on to point out that although specific leadership

3

competencies have remained more or less the same over the years, theories of what

exactly leadership is, how it works, how it is learned, and how it is applied have not

remained as quite as constant.

According to Hemphill (1954), To lead is to engage in an act that initiates a

structure in the interaction as part of the process of solving a problem. This definition was

taken forward by Henry Harris in his book ‘The Group Approach to Leadership Testing’.

He wrote that leadership is a collective function, a relationship between the leader and the

group, the authority lies in the situation. It is the situation that creates the imperative and

not in the leader or individual. This approach considers leadership as dynamics process

and balance the importance of leader, the group and the situation in it. In simple words

leadership is to influence a group to achieve organizational goals.

Figure 1.1 Leadership Dynamic Processes

The role of leader can be a part of design of an organization where the leader

holds the position to influence, however the real role is outside the organizational

position where a leader influences the group is as important as being within the group.

The leaders can be appointed and can also emerge from within the group. There can be a

little question that the success of an organization or a group within an organization

4

depends largely on the quality of leadership. Whether in business, government,

education, medicine, religion or armed forces, the quality of leadership determines the

quality of organization itself. Successful leaders anticipate change, positively exploit

opportunities, motivate their followers to higher levels of productivity, improve poor

performance and lead the organization towards objectives.

LEADERSHIP versus MANAGEMENT

The terms leadership and management are used interchangeably in some contexts.

The term manager tends to be more widely used and has often been used in lieu of the

term leader. It also appears that the term manager sits more comfortably with people in

the private sector while the term leader is more comfortable in the military sector.

Leaders exist in all sectors and at all levels, and they have a profound influence on

modern thinking and behavior. Maxwell (1999) cites leadership examples from different

fields including business, politics, science, philanthropy and the military.

There is reason to view the two terms as quite distinct. In recent literature, notably

Kotter (1996) and Conger and Kanungo (1998), there has been an effort to distinguish

between the two concepts. Kotter (1996) provides a distinction between the essentials of

leadership and management as shown in Table 1.1

Table 1.1 Kotter’s Distinction between the Essentials of Leadership and

Management

Management Leadership

Planning and Budgeting – detailed plans for short-term goals

Establishing direction – defining the future vision and long-term objectives

Organizing and Staffing – organizing work teams and delegating responsibility

Aligning people – articulating the vision and influencing people

Controlling and Problem Solving – monitor results and reactive problem resolution

Motivating and Inspiring – energizing people to deliver results and meet higher needs

Result: produces predictable results and order.

Result: produces change to a dramatic degree

Source : From Kotter (1996)

5

Kotter (1999) further comments that leadership is centrally important because it is

different from management, and the primary force behind successful change is leadership

and not management. While leadership and management are complementary, they serve

different goals. Leadership and management have quite different impacts on

organizational performance. Organizations need both good leadership and management to

realize their objectives. Leadership is about coping with change whereas management is

about coping with complexity. Management brings order and consistency in order to

achieve the desired outcomes. Kotter (1999) emphasizes that major changes are necessary

to survive and compete in today’s environment and greater change always demands more

leadership.

Kotter (1996, 1999) and Conger and Kanungo (1998) show similarity in the

distinction between leadership and management. Leadership is about the future direction

and vision for the organization and it can be likened to a path of discovery. Leadership is

considered to be more conceptual than management and requires individuals to think

deeply about the future direction of the organization. This conceptual thinking takes time

and energy, and should incorporate a range of different opinions. Maxwell (1995)

identifies common characteristics concerning thinking that applies to leaders. These

features include thinking continuously and strategically, without boundaries, and

considering the needs of others. In contrast, management is about achieving short-term

goals, operating excellence, and maintaining order and predictability in relation to the

status quo.

The following table from Conger and Kanungo (1998) expands Kotter’s (1996)

essentials from Table 1.2 and further clarifies the distinction between management and

leadership.

6

Table 1.2 Distinctions between Leadership and Management

Management Leadership

Engages in day-to-day activities: Maintains and allocates resources.

Formulates long-term objectives for reforming the system: Plans strategy and tactics.

Exhibits supervisor behavior: Acts to make others maintain standard job behavior.

Exhibits leading behavior: Acts to bring about change in other congruent with long-term objectives.

Administers sub-systems within organizations. Innovates the entire organization.

Asks how and when to engage in standard practice.

Asks when and why to change standard practice.

Acts within established culture of the organization.

Creates vision and meaning for the organization and strives to transform culture.

Uses transactional influence: Induces compliance in manifest behavior using rewards, sanctions, and formal authority.

Uses transformational influence: Induces change in values, attitudes, and behavior using personal examples and expertise.

Relies on control strategies to get things done by subordinates.

Uses empowering strategies to make followers internalize values.

Supports the status quo and stabilizes the organization. Challenges the status quo and creates Change.

While Kotter and Maxwell are able to differentiate the functions of leadership and

management, this is not always easy to achieve in practice. Leadership and management

are recognized as two distinct concepts. However, leaders and managers must understand

that both functions are necessary for organizational success. Leadership helps to set the

strategic direction and leaders act as change agents to realize the vision. Management

helps the organization to execute the current business plan and deliver the required

results. Another key distinction between leaders and managers is the quality of

interactions with their people. Leaders inspire, energize and motivate their people

whereas managers help people achieve their more basic needs.

7

In contrast, Zalenik (1977) argued that leaders and managers themselves are

different and distinct. He distinguished between leaders and managers based on three

areas of suggested differences: motivation, personal history, and in how they think and

act and go on to argue that managers and leaders are in fact different types of people

(Zalenik). As a result of his belief that leaders and managers are two different types of

people, Zalenik went on to argue that training and developing managers may actually

inhibit the development of leaders.

Similarly, Bennis and Nanus (1985) described distinct differences between

managers and leaders as people. According to them, “managers are people who do the

things right and leaders are the people who do the right things”. For theorists such as

Kotter, Zalenik, and Bennis and Nanus, the essential distinction between leaders and

managers seems to be that leaders influence commitment while managers simply exercise

authority as they perform the responsibilities associated with their position (Yukl, 1989).

Colvard J (2009) distinguish between leaders and managers in Table 1.3

Leaders Managers

Leaders are the heart of an organization Managers are the brain of an organization

Motivates, encourage, and work with people Establish systems

Create a vision and set a direction, and sharing with followers Creates rules and operational procedures

Ask how and when Asks what and why

Take you to a new place Take care of where you are

Align people based on their knowledge, abilities and personality

Are a task-oriented and often not people-oriented

Wonder that if the problem set in a new environment might require a different solution

Think that a successful solution to a management problem can be used again

They write business plans, sets budgets and monitor progress They get organizations and people to change

Do things right Do the right things

8

Changing Styles for the New Millennium from Management towards Leadership

Quality: Empowerment

Moving from Management: Moving toward Leadership:

Punishment Reward

Demands "respect" Invites speaking out

Drill sergeant Motivator

Limits and defines Empowers

Imposes discipline Values creativity

"Here's what we're going to do!" "How can I serve you?"

Bottom line Vision

Quality: Restructure


Control Change

Rank Connection

Hierarchy Network

Rigid Flexible

Automatic annual raises Pay for performance

Performance review Mutual contract for results

Mechanistic Wholistic

Compartmental Systemic

9

Quality: Teaching


Order-giving Facilitating

Military archetype Teaching archetype

Quality: Role Model


Issues orders Acts as role model

Demands unquestioning obedience Coaches and mentors others

Quality: Openness


Keeping people on their toes Nourishing environment for growth

Reach up/down Reach out

Information control Information availability

Quality: Questions and Answers


Knows all the answers Asks the right questions

Not interested in new answers Seeks to learn and draw out new ideas

10

Leadership:

A Concept Map

Leadership is very diverse and individualized. Below is the graphic representation of

leadership in form of a concept map.

Figure 1.2 Leadership: A Concept Map

A leader does basic things to do the best of his ability, accepting no wrong and

having the courage to the right thing. He has vision and is able to look at the past events

and plan for what is coming ahead. All the concepts were taken into consideration to

create the leadership concept map.

Leadership consists of many aspects special to each individual in a position to

create their own style in accordance with theory and personal traits, such as emotional

intelligence. The concept map shows how all the parts work together in the organization

11

to accomplish goals. The followers are an important aspect because without them, there

would not be leadership. The personal relationships built help create a stable base on

which the leadership can thrive. This concept map is one example of leadership by an

individual with many variations possible. Leadership is diverse and individualized.

Finish Line Leadership - Qualities for Successful Leadership

What and who is a leader? “The Webster’s Dictionary defines leader as a person who by

force of example, talents or qualities of leadership plays a directing role, wields

commanding influence, or has a following in any sphere of activity or thought. It defines

leadership as that ingredient of personality that causes men (and/or women) to follow.

Contrasting the belief of vision and concern are ten important themes that help

leadership. It is his belief that by not adhering to the ten traits, leaders not only fail but

also bring chaos to their organization. To assist in creating a balanced organization, and

good stewardship, Drew offer to the leaders the following thoughts based on

LEADERSHIP.

L = Listening

Good listening is required in order to understand employee attitudes and motivators. Get

to know the employees by asking a lot of open-ended questions. When leader ask

questions, you have a chance to listen, and when you listen, you begin to better

understand employee motivations, body language and issues. Get them to speak of issues

that confront them and enable them to find solutions. Offer challenges to corporate issues

with solutions. And, provide credit to the employee with a solid reply.

E = Enthusiasm

Employees want to be motivated. This begins with positive energy and positive

commitment. Leader’s personal ills and corporate pressures are unimportant to their

employees. They are concerned about number one- themselves. In good times and bad

leader must always express a positive and energetic attitude. Finish line energy gets finish

line results.

12

A = Awareness

Be aware of issues that are non-verbal. Leaders must have a keen sense that denotes when

employees are happy, frustrated, tired or overwhelmed. He must sense the issue and

eliminate it quickly so that leader keeps organizational harmony.

D = Decisive

Employees loathe procrastinators, even if they are a procrastinator! They want quick,

decisive and meaningful replies. Leaders do not ponder; they make quick decisions to

difficult problems and find immediate solutions.

E = Equal

The cliché “equal pay, for equal treatment” is so true. Leaders do not treat employees

based on title, age, race, religion etc. Leaders understand that “everyone” and “anywhere”

in the organization is equal. Leaders go by the principle that the sum of the parts is

greater than the whole.

R = Reward

Adults desire more than just money with work. They desire recognition and kudos for a

job well done. However, in today’s marketplace, employees although happy, are looking

for more contentment from their current job. This sense of pride and self-worth is a large

issue for most people. If people feel that they make a difference, they will care about

organizational objectives, if not, apathy emerges. In sum, the job affects the person and

the person affects the job. So what can be accomplished to gain a better sense of

company pride and loyalty? Establish a reward system and watch the attitudes soar!

S = Shallow Mission/Vision

Leaders understand the reasons of having corporate and divisional mission and vision

statements. These statements of purpose enable employees to understand, 1) Who the

firm is, 2) Where they are going? and 3) how they will get there. True leaders establish

missions as a roadmap to future success.

13

H = Hypocrite

Leaders make decisions and stick with them. Leaders understand that reversing decisions

make them a hypocrite. Further leaders take action when they offer action. For example,

if a leader decides employees need training, he or she also takes the training. If a leader

decides pay cuts are necessary to preserve profits they too take a cut. Leading by example

creates a happier employee core and loyalty; contradicting the efforts creates dispassion,

disbelief and attrition.

I = Isolate

Leaders believe in teamwork and team play. Every employee counts toward the bottom

line. Leaders do not isolate themselves from the team and do no isolate the team from

each other. As the saying goes, “There is no “I” in team”

P = Positive Communication

In good times and in bad leaders create positive communication and feedback to

employees. Positive and meaningful communication creates loyalty and mutual exchange

of ideas and attitudes. When ideas are fresh and positive, profits and productivity soar!

Leadership Characteristics

Self-Esteem – A leader need high self-esteem to persuade its team. A leader without high

self-esteem will never be able to get good output from its team. So an excellent leader

needs high amount of self-esteem.

Need to Achieve – A good leader need to continually keep realistic goals and need to

achieve them in specified time-period.

Screening for Opportunity – A leader need to be in continuous search of opportunities,

and as the opportunity comes into way, he needs to take it not immediately but after

quickly analyzing it.

Locus of Control – A successful leader needs high internal locus of control to get more

success in his profession. External locus of control is not so much useful now days.

Goal Orientation - Businesses come and go, but those that last always share a common

characteristic with their founder—a relentless drive to accomplish goals. They understand

14

what the priorities are and continue to work at toward that goal, day in and day out. A

leader need to be goal oriented to become successful.

Optimism – A leader need to be optimistic to become persuade his team members. Until

and unless a leader is not optimistic, the team will not get good results. Here the

optimistic means to see an opportunity in every difficult situation.

Courage – A leader need to have high level of courage because a leader come across

many difficulty situations continuously and to face these problems he needs high level of

courage.

Tolerance to Ambiguity - This term refers to a person's tolerance to uncertainty and risk.

A leader needs to be tolerable to face the difficult situations. Some time such situations

come before the leaders that it is difficult for the leaders to control their emotions and

motivate but they need to do so to keep the moral of their team at high level.

Strong Internal Motivation - The motivation that drives our behavior comes from two

sources: internal (intrinsic) and external (extrinsic). Intrinsic factors include constructs

like needs, desires, motives, and will power. Extrinsic factors include any type of

motivational influence from the environment such as rewards and punishments. A leader

needs to be highly motivated from inside to face the current days business difficulties.

Styles of Leadership

All leaders do not possess same attitude or same perspective. Few leaders adopt the carrot

approach and a few adopt the stick approach. Thus, all of the leaders do not get the things

done in the same manner. Their style varies. The leadership style varies with the kind of

people the leader interacts and deals with. A perfect/standard leadership style is one

which assists a leader in getting the best out of the people who follow him.

Autocratic Leadership Style

Autocratic leadership style is often considered 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.

15

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

Characteristics of Autocratic Leadership

The major autocratic leadership style characteristics include:

1. The autocratic leader retains all power, authority, and control, and reserves the

right to make all decisions.

2. Autocratic leaders distrust their subordinate’s ability, and closely supervise and

control people under them.

3. Autocratic leaders involve themselves in detailed day-to-day activities, and rarely

delegate or empower subordinates.

4. The autocratic leader adopts one-way communication. They do not consult with

subordinates or give them a chance to provide their opinions, no matter the

potential benefit of such inputs.

5. Autocratic leadership assumes that employee motivation comes not through

empowerment, but by creating a structured set of rewards and punishments.

6. Autocratic leaders get work done by issuing threats and punishments and evoking

fear.

7. The primary concern of autocratic leaders remains dealing with the work at hand

and not on developmental activities.

8. Autocratic leaders assume full responsibility and take full credit for the work. (N

Nayab, 2011)

Yet, autocratic leadership is not all bad. Sometimes it is the most effective style to use.

16

Figure 1.3 Autocratic Leadership Style

Autocratic leadership style is effective when:

- 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 manager’s power is challenged by an employee

- The area was poorly managed

- 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

17

- Employees expect to have their opinions heard

- Employees begin depending on their manager to make all their decisions

- There is low employee morale, high turnover and absenteeism and work stoppage

Democratic (Participative) 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.

Characteristics of Democratic Leadership

Some of the primary characteristics of democratic leadership include:

1. Manager seeks consultation on all major issues and decisions.

2. Manager effectively delegate tasks to subordinates and give them full control and

responsibility for those tasks.

3. Manager welcomes feedback on the results of initiatives and the work

environment.

4. Manager encourages others to become leaders and be involved in leadership

development.

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.

18

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 problem-solving

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.

- The leader wants to encourage team building and participation.

Democratic leadership should not be used when:

- There is not enough time to get everyone’s input.

- It’s easier and more cost-effective for the manager to make the decision.

- The business can’t 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.

Characteristics of Laissez-Faire Leadership

Laissez-faire leadership is characterized by:

Very little guidance from leaders

Complete freedom for followers to make decisions

Leaders provide the tools and resources needed

Group members are expected to solve problems on their own

19

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.

The manager doesn’t understand his or her responsibilities and is hoping the

employees can cover for him or her.

Other Type of Leadership Style

Bureaucratic Leadership Style

Bureaucratic leadership is where the manager manages “by the book¨. Everything

must be done according to procedure or policy. If it isn’t 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.

Bureaucratic leadership 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.

20

- Employees are performing tasks that require handling cash.

Bureaucratic leadership style is ineffective when:

- Work habits form that is 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.

Charismatic Leadership

A charismatic leadership style can appear similar to a transformational leadership

style, in that the leader injects huge doses of enthusiasm into his or her team, and is very

energetic in driving others forward. A Charismatic leader is one who provides an

environment full of energy and positive reinforcement. Charismatic leaders inspire others

and encourage them to be their best. Employees and group members want to impress a

charismatic leader, so they work hard and strive to succeed. As such, charismatic

leadership carries great responsibility, and needs long-term commitment from the leader.

Downside of Charismatic Leadership

Under charismatic leadership, group members may view success in relation to

their leaders. A major problem with charismatic leadership is that group success tends to

hinge on the leader. The charismatic leader is the glue that holds a group together. So

what happens if the leader should have to step down or transfer? Normally, the group

dynamic will fizzle and individual members will lose enthusiasm.

People-Oriented Leadership or Relations-Oriented Leadership

This style of leadership is the opposite of task-oriented leadership. With people-

oriented leadership, leaders are totally focused on organizing, supporting, and developing

the people on their teams. This is a participatory style and tends to encourage good

teamwork and creative collaboration. People-oriented leaders treat everyone on the team

equally. They're friendly and approachable, they pay attention to the welfare of everyone

in the group, and they make themselves available whenever team members need help or

advice. The benefit of this leadership style is that people-oriented leaders create teams

that everyone wants to be part of. Team members are often more productive and willing

21

to take risks, because they know that the leader will provide support if they need it. The

downside is that some leaders can take this approach too far; they may put the

development of their team above tasks or project directives.

Servant Leadership

This term, coined by Robert Greenleaf in the 1970s, describes a leader who is

often not formally recognized as such. When someone, at any level within an

organization, leads simply by virtue of meeting the needs of his or her team, he or she is

described as a “servant leader”. In many ways, servant leadership is a form of democratic

leadership, as the whole team tends to be involved in decision-making. Supporters of the

servant leadership model suggest it is an important way ahead in a world where values

are increasingly important, in which servant leaders achieve power on the basis of their

values and ideals. Others believe that in competitive leadership situations, people

practicing servant leadership will often find themselves left behind by leaders using other

leadership styles.

Task-Oriented Leadership

Task-oriented leaders focus only on getting the job done and can be autocratic.

They actively define the work and the roles required, put structures in place, and plan,

organize, and monitor work. These leaders also perform other key tasks, such as creating

and maintaining standards for performance. The benefit of task-oriented leadership is that

it ensures that deadlines are met, and it's especially useful for team members who don't

manage their time well. However, because task-oriented leaders don't tend to think much

about their team's well-being, this approach can suffer many of the flaws of autocratic

leadership, including causing motivation and retention problems

Transactional Leadership

This leadership style starts with the idea that team members agree to obey their

leader when they accept a job. The "transaction" usually involves the organization paying

team members in return for their effort and compliance. The leader has a right to "punish"

team members if their work doesn't meet an appropriate standard. Although this might

sound controlling and paternalistic, transactional leadership offers some benefits. For

22

one, this leadership style clarifies everyone's roles and responsibilities. Another benefit is

that, because transactional leadership judges team members on performance, people who

are ambitious or who are motivated by external rewards – including compensation – often

thrive. The downside of this leadership style is that team members can do little to

improve their job satisfaction. It can feel stifling, and it can lead to high staff turnover.

Transactional leadership is really a type of management, not a true leadership style,

because the focus is on short-term tasks. It has serious limitations for knowledge-based or

creative work. However, it can be effective in other situations.

Transformational Leadership

Transformation leadership is often the best leadership style to use in business

situations. Transformational leaders are inspiring because they expect the best from

everyone on their team as well as themselves. This leads to high productivity and

engagement from everyone in their team. The downside of transformational leadership is

that while the leader's enthusiasm is passed onto the team, he or she can need to be

supported by "detail people." That's why, in many organizations, both transactional and

transformational leadership styles are useful. Transactional leaders ensure that routine

work is done reliably, while transformational leaders look after initiatives that add new

value. It's also important to use other leadership styles when necessary – this will depend

on the people leader is leading and the situation that he is in.

Theories of Leadership

Leadership theories help to explain how specific leaders are chosen and why some

succeed while others do not. The variety of these theories ranges from inborn leaders

with a perceived innate sense of command to situations that choose their own leaders,

regardless of ability. Others suggest that leadership is something that can be taught. There

is various leadership theories mentioned below

Great Man Theory

During the 19th century, the Great Man Theory of Leadership became very

popular. The theory was formulated mainly by analyzing the behaviors of mainly

military figures of the time. In the 1800s, authoritative positions were held solely by

23

men and were typically passed on from father to son. Thus, it's not a coincidence that

the theory was named "Great Man Theory" as there weren't any women that were given

the opportunity to rise when the occasion presented itself. The 'great man' theory was

originally proposed by Thomas Carlyle (1840) and believed that effective leaders were

a package of Godly motivation and the right personality.

Assumptions

The leaders are born and not made and posses certain traits which were inherited

Great leaders can arise when there is a great need.

Criticism

Many of the traits cited as being important to be an effective leader are typical

masculine traits. In contemporary research, there is a significant shift in such a mentality.

Conclusion

Prompted by the great man theory of leadership, and the emerging interest in

understanding what leadership is, researchers focused on the leader - Who is a leader?

What are the distinguishing characteristics of great and effective leaders? This gave rise

to the early research efforts to the trait approach to leadership.

Trait theory of Leadership

The trait leadership theory believes that people are either born or are made with

certain qualities that will make them excel in leadership roles. That is, certain qualities

such as intelligence, sense of responsibility, creativity and other values puts anyone in the

shoes of a good leader.

The trait theory states that leaders have certain innate traits that enable them to

lead, such traits as assertiveness, dependability, persistence and adaptability etc. Ralph

Stodgill (1974), the originator of the trait theory, identified the main leadership traits and

skills mentioned below Table 1.4

24

Traits Skills

Adaptable to situations Alert to social environment

Ambitious and achievement-orientated

Assertive Cooperative

Decisive Dependable

Dominant (desire to influence others)

Energetic (high activity level) Persistent

Self-confident Tolerant of stress

Willing to assume responsibility

Clever (intelligent) Conceptually skilled

Creative Diplomatic and tactful

Fluent in speaking Knowledgeable about group task

Organized (administrative ability)

Persuasive Socially skilled

McCall and Lombardo (1983), which expanded on the trait theory, argued that a

leader is made or broken based on

Emotional stability and composure: Calm, confident and predictable,

particularly when under stress.

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

up.

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 narrow-minded) area of expertise.

Bennis (1984), a recent "neo-trait" researcher, conducted a longitudinal five-year

study of 90 of the most successful, effective leaders in the public and private sectors and he

discovered four common traits or competencies that the successful leaders shared:

25

1. the management of attention: leaders manage attention through a compelling

vision that can mobilise action;

2. the management of meaning: to make their dream and visions apparent to others,

they must communicate effectively so that followers may personally enroll in the

vision;

3. the management of trust: people would much rather follow a leader they can

count on, one who is ideologically and behaviorally consistent over time, and

4. the management of self: good leaders know themselves, their strengths and skills,

and employ them effectively.

The trait theory can be applied by people at all levels in all types of organizations.

Managers can utilize the information from the theory to evaluate their position in the

organization and to assess how their position can be made stronger in the organization.

They can get an in-depth understanding of their identity and the way they will affect

others in the organization. This theory makes the manager aware of their strengths and

weaknesses and thus they get an understanding of how they can develop their leadership

qualities but this theory is criticized on many bases as there is bound to be some

subjective judgment in determining who is regarded as a ‘good’ or ‘successful’ leader.

The list of possible traits tends to be very long. More than 100 different traits of

successful leaders in various leadership positions have been identified. These descriptions

are simply generalities. There is also a disagreement over which traits are the most

important for an effective leader. The model attempts to relate physical traits such as,

height and weight, to effective leadership. Most of these factors relate to situational

factors. For example, a minimum weight and height might be necessary to perform the

tasks efficiently in a military leadership position. In business organizations, these are not

the requirements to be an effective leader.

26

Conclusion

The traits approach gives rise to questions: whether leaders are born or made; and

whether leadership is an art or science. However, these are not mutually exclusive

alternatives. Leadership may be something of an art; it still requires the application of

special skills and techniques. Even if there are certain inborn qualities that make one a

good leader, these natural talents need encouragement and development. A person is not

born with self-confidence. Self-confidence is developed, honesty and integrity are a

matter of personal choice, motivation to lead comes from within the individual, and the

knowledge of business can be acquired. While cognitive ability has its origin partly in

genes, it still needs to be developed. None of these ingredients are acquired overnight.

Behavioral Theory

Behavioral theories of leadership are classified as such because they focus on the

study of specific behaviors of a leader. For behavioral theorists, a leader behavior is the

best predictor of his leadership influences and as a result, is the best determinant of his or

her leadership success.

This behavior-focused approach provides real marketing potential, as behaviors

can be conditioned in a manner that one can have a specific response to specific stimuli.

As a result, we have gone from the supposition that leaders are born (Great Man Theory)

through to the possibility that we can measure your leadership potential (Trait Theory)

via psychometrics measurements and then to the point that anyone can be made a leader

(Behavioral Theories) by teaching them the most appropriate behavioral response for any

given situation.

There are three most popular studies looked at behavioral style done at the

University of lowa, Ohio State, and the University of Michigan.

University of lowa studies

Kurt Lewin and his associates conducted studies at lowa State University that

concentrated on leadership styles ( Lewin , Lippett & White, 1939 ). They identified the

following two basis leadership styles in their studies:

27

- Autocratic leadership style

The autocratic leader makes the decisions, tells employees what to do and closely

supervises workers ( Lewin, et al 1939); ( Likert ,1967).

- Democratic leadership style

The democratic leader encourages participation in decisions, works with employees

to determine what to do and does not closely supervise employees. (Lewin, et al.

1939); (Likert, 1967).

According to Likert (1967), the first studies on leadership behaviour conducted at

lowa State University by Kurt Lewin and his associates included groups of children, each

with its own designated adult leader who was instructed to act in either an autocratic or

democratic style. These experiments produced some interested findings. The groups with

autocratic leaders performed very well as long as the leader was present to supervise

them. However, group members were displeased with the autocratic style of leadership

and feelings of hostility frequently arose. The performance of groups who were assigned

democratic leaders was almost as good and these groups were characterized by positive

feeling rather than hostility. In addition, under the democratic style of leadership, group

members performed well even when the leader was absent. The participative technique

and decision-making by majority rule as used by the democratic leader served to train and

involve the group members, so that they performed well with or without the leader being

present ( Likert, 1967). These characteristics of democratic leadership may partly explain

why the empowerment of employees is a popular trend in many organizations.

This early work implied that leaders were either autocratic or democratic in their

approach. However, work done by Tannenbaum and Schmidt (1973) indicated that

leadership behavior could exist on a continuum reflecting different degrees of employee

participation. One leader might be autocratic (boss-centered), another democratic

(subordinate centered) and a third, combination of the two styles. The leadership

continuum is illustrated below

28

Figure 1.4 Leadership Continuum Model

Figure 1.3 Tannenbaum, R, and Schmidt, W. (1973). How to Choose a Leadership

Pattern. Harvard Business Review.

The boss-centered leadership style refers to the extent to which the leader takes

charge to get the work done. The leader directs subordinates by communicating clear

roles and goals, while the manager tell them what to do and how to do it as they work

towards goal achievement (Likert, 1961).

The employee-centered leadership style refers to the extent to which the leader

focuses on meeting the human needs of employees whilst building relationships. The

leader is sensitive to subordinates and communicates to develop trust, support and respect

while looking out for their welfare (Likert, 1961).

According to Tannenbaum and Schmidt (1973), the extent to which leaders

should be boss-centered or subordinate-centered depended on organizational

circumstances. Leaders should adjust their behavior to fit the circumstances. For

example, should there be a time pressure on a leader or if it takes too long for

LEADERSHIP CONTINUUM (Autocratic) (Democratic) Boss-centered Subordinate-centered Leadership Leadership Use of authority by manager Area of freedom for subordinates Manager makes Manager presents Manager presents Manager permits decision and ideas and invites problems, gets subordinates to announces it questions. suggestions, makes function within decision defined limits

29

subordinates to learn how to make decisions, the leader will tend to use an autocratic

style. When subordinates are able to readily learn decision-making skills, participative

style can be used. Also, the grater the skills difference, the more autocratic the leader’s

approach, because it is difficult to bring subordinate’s up to the leaders expertise level.

Followers may however not be as independent when the leader is autocratic (Heller &

Yukl, 1969).

Ohio State University Studies (1940)

As leadership studies that were aimed at identifying the appropriate traits didn't

yield any conclusive results, a group of people from Ohio State University developed a

list of 150 statements from their generated responses that included 1,800 hundred

statements. The list was designed to measure nine different behavioral leadership

dimensions. The resulting questionnaire is now well-known as the LBDQ or the Leaders

Behavior Description Questionnaire.

As part of the study, the LBDQ was administered to various groups of individuals

ranging from college students and their administrators, private companies including

military personnel. One of the primary purposes of the study was to identify common

leadership behaviors. After compiling and analyzing the results, the study led to the

conclusion that there were two groups of behaviors that were strongly correlated. These

were defined as Consideration (People Oriented behavioral Leaders) and Initiating

Structure (Task Oriented Leaders).

Task-oriented Leaders/Initiating Structure

The task concerned leaders are focusing their behaviors on the organizational

structure, the operating procedures and they like to keep control. Task-oriented leaders

are still concern with their staff motivation; however it's not their main concern. They

will favor behaviors that are in line with:

1. Organizing work

2. Organizing and defining relationships or roles

3. Establishing well-defined patterns of organization, channels of communication

and ways of getting jobs done.

30

People-oriented Leader/Consideration

The people oriented leaders are focusing their behaviors on ensuring that the inner

needs of the people are satisfied. Thus they will seek to motivate their staff through

emphasizing the human relation. People oriented leaders still focus on the task and the

results; they just achieve them through different means. Leaders with a people focus will

have behaviors that are in line with:

1. Building friendship,

2. Mutual trust, 3. Respect

4. Openness (Northouse, 2007).

The four types of leadership behavior as described have tried to bridge the gap

between initiating structure and consideration. (Stogdill, 1957). Initiating Structure and

Consideration are two independent variables that shows four stages mentioned below

Initiating Structure

Low High

Figure: 1.5 Ohio State Leadership Theories

The leaders high on consideration showed that they developed a positive work

culture. The leaders high on initiating structure show that the leader structures their roles

and their subordinates towards attainment of goals. A high score on one dimension does

not necessarily mean low score on other dimension. The behavior of leader could be

High HIGH CONSIDERATION HIGH STRUCTURE AND AND LOW STRUCTURE HIGH CONSIDERATION LOW STRUCTURE HIGH STRUCTURE AND AND LOW CONSIDERATION LOW CONSIDERATION Low

31

described as any mix of both dimensions. A number of studies support the general

findings of this theory while some studies present contradictory evidence. Despite these

differences Ohio University study has stimulated interest of layman and researchers in

studying leadership systematically.

University of Michigan Leadership Theory

The University of Michigan leadership studies (Katz and Kahn, 1952; Katz,

Maccoby, and Morse, 1950; Katz, et al., 1951) were a series of corelational studies to

examine the relationships between leadership behavior, group processes, and group

productivity. Manager effectiveness was equated with group productivity. In a summary

of these studies, Likert (1961) writes that three types of leadership behavior were found

to be good predictors of management effectiveness: task-oriented behavior, relationship-

orientated behavior, and participative leadership. Task-orientated behaviors are the same

as the initiating structures in the Ohio studies, and relationship-orientated behaviors are

similar to the consideration construct in the Ohio studies. The difference between the two

studies was that the Michigan study viewed participative leadership as separate from the

other relationship-orientated behaviors.

Leadership Grid Theory

Blake and Moutons developed a two-dimensional leadership theory called the

“Leadership Grid” that builds on the work of the Ohio State and the Michigan studies

(Blake and Mouton, 1985). Researchers rated leaders on a scale of one to nine, according

to the following two criteria: concern for people and concern for results. The scores of

these criteria were plotted on a grid with an axis for each criterion. The two-dimensional

leadership model and five major leadership styles are reflected in figure below:

32

Figure 1.6 Blake, R.R & McCanse, A.A. (1991) Managerial Grid

Team management (9,9) is often considered the most effective style because

employees are encouraged to work together to accomplish tasks. Country club

management (1,9) occurs when the most emphasis is placed on people rather than on

achieving results. Authority-compliance management (9,1) occurs when operational

efficiency is the main focus. Middle-of-the-road management (5,5) reflects a moderate

degree of concern for both people and productivity. Improvised management (1,1)

indicates that little effort is made in terms of both interpersonal relationships and work

accomplishment (Blake and Mouton, 1985)

The leadership styles specified in the grid as described by Blake and McCanse

(1991) as below:

High 9

8

7

6

5

4

3

2

Low 1

1 2 3 4 5 6 7 8 9

Low High

(1,9) Country Club Management Thoughtful attention to the needs of people, leads to comfartable, friendly work enviroment

(9,1) Authority Compliance Management

Effciency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree.

(1,1) Improvished Management

Excertion of minimum effort to get the required work done as appropraite to sustain the organisation membership.

(9,9) Team Management

Interdependence through a "comman stake" in organisation propose leads to relationships of trust and respect.

(5,5) Middle of the Road Management

Adequate organisation performance is possible through balancing the necessity to get the work done while maintainnig the morale of people at a satisfactory level.

33

1. The impoverished style (1, 1). The indifferent Leader (Evade & Elude)

In this style, managers have low concern for both people and production. Managers

use this style to avoid getting into trouble. The main concern for the manager is not to

be held responsible for any mistakes, which results in less innovative decisions.

2. The country club style (1, 9). The accommodating Leader (Yield & Comply)

This style has a high concern for people and a low concern for production. Managers

using this style pay much attention to the security and comfort of the employees, in

hopes that this would increase performance. The resulting atmosphere is usually

friendly, but not necessarily that productive.

3. The produce or perish style (9, 1). The Controlling Leader (Direct & Dominate)

Contingency theory of Leadership

This believes in the authority-obedience. With a high concern for production, and a

low concern for people, managers using this style find employee needs unimportant;

they provide their employees with money and expect performance back. Managers

using this style also pressure their employees through rules and punishments to

achieve the company goals. This dictatorial style is based on Theory X of McGregor.

4. The middle-of-the-road style (5, 5). The Status – Quo Leader. (Balance &

Compromise)

Managers using this style try to balance between company goals and workers needs.

By giving some concern to both people and production, managers who use this style

hope to achieve acceptable performance but doing so gives away a bit of each

concern so that neither production nor people needs are met.

5. The team style (9, 9). The Sound / Team Leader (Contribute & Commit)

In this style, high concern is paid both to people and production. As suggested by the

propositions of Theory Y, managers choosing to use this style encourage teamwork

and commitment among employees. This method relies heavily on making employees

feel as a constructive part of the company.

34

Whilst behavioral theories may help managers develop particular leadership

behaviors they give little guidance as to what constitutes effective leadership in different

situations. Indeed, most researchers today conclude that no one leadership style is right

for every manager under all circumstances. Instead, contingency-situational theories were

developed to indicate that the style to be used is contingent upon such factors as the

situation, the people, the task, the organization, and other environmental variables.

Hence, Contingency approach concludes that there is no "one best style" of

leadership under all conditions. Efficient leadership style varies with situations and an

efficient leader is one who studies the prevailing situation and finds out the leadership

style which would be most suitable for the given situation. Here, the focus is on the

situation and not on the personal qualities and behavior of a leader.

Fiedler Contingency Model

In 1951, Fiedler began to develop the first contingency leadership theory. It was

the first theory to focus on how situation variables interact with leader personality and

behavior. Fiedler believes that leadership style is a reflection of personality (trait-theory

oriented) as well as the behavior (behavioral-theory oriented) and that leadership style is

basically constant. Leaders do not change style, they change situations. To measure the

leader styles, Fiedler developed the least Preferred Coworker (LPC) scale. When the

leader scores high on the LPC, it means that the leader is relationship oriented, whereas

being low on the LPC means that the leader is task oriented (Daft, 2005). Task-oriented

leaders want to achieve goals. Relationship- oriented leaders want to develop close

relationships with their followers (Yukl, 2006).

35

Figure 1.7 Fiedler Contingency Model (1967)

Fiedler said that low LPCs are very effective at completing tasks. They're quick to

organize a group to get tasks and projects done. Relationship-building is a low priority

whereas High LPCs focus more on personal connections, and they're good at avoiding and

managing conflict. They're better able to make complex decisions.

Fiedler suggests that situations can be characterized by assessing three factors:

1. Leader-Member Relations, referring to the degree of mutual trust, respect and

confidence between the leader and the subordinates.

2. Task Structure, referring to the extent to which group tasks are clear and

structured.

3. Leader Position Power, referring to the power inherent in the leader's position

itself.

36

Three Variables in the Contingency Model Table 1.5

Leader –Member Relations

Good Poor

Subordinates Atmosphere

-like leader -unfriendly

-trust leader -friction between leader / followers

-get along with leader

Followers

-no confidence in leader

-no loyalty to leader

-no attracted to leader

Task Structure High Low Task accomplishment Task accomplishment

-requirements clear -requirements vague & unclear

-few paths to achieving task -many paths to achieving tasks

-end to task clear -end to task vague

-solutions limited -many correct solutions

Leader's position power Strong Weak

Leader has authority to Leader has no authority to

-hire subordinates -hire subordinates

-fire subordinates -fire subordinates

-promote -promote

-give pay raises -give pay raises

Source : Northouse (2007). Copyright © 2007, Sage Publications, Inc.

The best LPC approach depends on a combination of three. Generally, a high

LPC approach is best when leader-member relations are poor, except when the task is

unstructured and the leader is weak, in which a low LPC style is better. According to the

theory, the task-oriented leader will be more effective in extremely favorable or

37

extremely unfavorable situations. When the situation is moderately favorable, the person-

oriented leader will be more effective.

The validity of contingency theory remains in dispute as much of the research

conducted to support it took place in the laboratory. In response to these criticisms,

Fiedler offered the cognitive resource theory of leadership.

Cognitive Resource Theory (CRT)

The cognitive resource theory is a leadership theory of industrial and

organizational psychology developed by Fred Fiedler and Joe Garcia in 1987 as a

reconceptualization of the Fiedler contingency model. The theory focuses on the

influence of the leader's intelligence and experience on his reaction to stress. The essence

of the theory is that stress is the enemy of rationality, damaging leaders' ability to think

logically and analytically. However, the leader's experience and intelligence can lessen

the influence of stress on his actions: intelligence is the main factor in low-stress

situations, whilst experience counts for more during high-stress moments. 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. In such situations,

a leader who is inexperienced in 'gut feel' decisions is forced to rely on this unfamiliar

38

approach. Another possibility is that the leader retreats within him, 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 brain-power

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.

Hersey-Blanchard Situational Theory

The Hersey–Blanchard situational leadership theory, is a leadership theory

conceived by Paul Hersey, a professor who wrote a well known book “Situational

Leader” and Ken Blanchard, author of the book “The One Minute Manager” while

working on the first edition of Management of Organizational Behavior. The Theory was

first introduced as "Life Cycle Theory of Leadership"(Hersey & Blanchard, 1969).

During the mid-1970s "life-cycle theory of leadership" was renamed "situational

leadership theory".

The essence of the situational leadership theory is that there is no single “best”

style of leadership. Effective leadership is task-relevant, and the most successful leaders

are those that adapt their leadership style to the Maturity i.e. (the capacity to set high but

attainable goals, willingness and ability to take responsibility for the task, and relevant

education and/or experience of an individual or a group for the task) of the individual or

group they are attempting to lead/influence. That effective leadership varies, not only

with the person or group that is being influence, but it will also depend on the task, job or

function that needs to be accomplished. (Hersey & Blanchard, 1977). The Hersey–

Blanchard situational leadership theory rests on two fundamental concepts; Leadership

39

Style and the individual or group's Maturity level. Hersey and Blanchard present these

four main leadership styles:

S1: Telling – is characterized by one-way communication in which the leader

defines the roles of the individual or group and provides the what, how, when, and

where to do the task (High-task/Low-relationship)

S2: Selling – while the leader is still providing the direction, he or she is now

using two-way communication and providing the socio emotional support that

will allow the individual or group being influenced to buy into the process. (High-

task/High-relationship)

S3: Participating – this is now shared decision making about aspects of how the

task is accomplished and the leader is providing less task behaviors while

maintaining high relationship behavior. (Low-task/High-relationship)

S4: Delegating – the leaders is still involved in decisions; however, the process

and responsibility has been passed to the individual or group. The leader stays

involved to monitor progress. (Low-task/Low-relationship)

Figure 1.8 Hersey and Blanchard Model

40

Maturity Levels

The right leadership style will depend on the person or group being led – the

follower. The Hersey-Blanchard Situational Leadership Theory identified four levels of

Maturity M1/R1 through M4/R4:

Low (M1) – They generally lack the specific skills required for the job in hand

and are unable and unwilling to do or to take responsibility for this job or task.

Low to moderate (M2) – They are still unable to take on responsibility for the

task being done; however, they are willing to work at the task.

Moderate to high (M3) – They are experienced and able to do the task but lack

the confidence to take on responsibility.

High (M4) – They are experienced at the task, and comfortable with their own

ability to do it well. They able and willing to not only do the task, but to take

responsibility for the task

According to Hersey & Blanchard (1977) employees usually start working at an

M1 maturity level requiring clear direction and close supervision. As their ability to

perform the job increases, the leader can begin to give less direction and be more

supportive to develop a working relationship with the followers. Leaders should

gradually develop their employees from M1 level to M3 or M4 over time.

Tannenbaum & Schmidt’s Leadership Continuum

Robert Tannenbaum and Warren Schmidt also developed a contingency theory in

the 1950’s ( Tannenbaum and Schmidt, 1958). They concluded that leadership behavior

is on a continuum from boss-centered to subordinate-centered leadership. Their model

focuses on who make the decisions. Tannenbaum and Schmidt (1973) identified seven

major styles from which the leader can choose. The leadership continuum model is used

to determine which one of the seven styles should be selected to suit the situation in order

to maximize performance

41

According to Tannenbaum and Schmidt (1973), the leader must consider the

following three forces or variables before choosing the best leadership style for a

particular situation.

Supervisor

The leader’s personality and preferred behavioral style, expectation, values,

background, knowledge, feeling of security and confidence in the

subordinates should be considered in selecting the leadership style. Based on

personality and behavior, some leaders tend to be more autocratic and other

more participative.

Subordinates

The leadership style preferred by followers is based on personality and

behavior. Generally, the more willing and able the followers are to participate,

the more freedom of participation should be used and vice versa.

Situation (Enviroment)

The environmental considerations such as the organization size, structure,

climate, goals and technology, are taken into consideration when selecting a

leadership style. Managers on higher levels also influence leadership styles.

For example, if a senior manager uses an autocratic leadership style, the

middle manager may tend to follow the suit.

Tannenbaum and Schmidt developed two major leadership styles (autocratic and

participative) with seven continuum styles, which reflected in a one-dimensional model.

The leadership-styles part of their theory is similar to the University of Michigan

Leadership Model, in that it is based on two major leadership styles: one focusing on job-

centered behavior (autocratic leadership) and the other focusing on employee-centered

behavior (participative leadership).

42

1 2 3 4 5 6 7Leader makes decision and announces it to followers individuality or in a group without discussion (it could also be in writing).

Leaders makes decisions and sell it to followers by expalinning why it is a good idea ( it could also be in writing)

Leader presents ideas and invites follower's questions

Leader presents tentative decision subject to change

Leader presents problem, invites suggested suggestions and make the decision.

Leader defines limits and asks the followers to make a decision

Leader permits followers to make ongoing decisions with defined limits.

Participative Style

Autocratic Style

One major criticism of this model is that how to determine which style to use, and when,

is not clear in model.(Yukl, 1998).

Path Goal Theory

The Path-goal Leadership theory was developed by Robert House, based on an

early version of the theory by M.G. Evans(1970), and published in 1971 (House , 1971).

House elaborated the Evans’s theory which included the situational variables. House

attempted to explain how the behaviour of a leader influences the performance and

satisfaction of the follower’s. Unlike the earlier contingency leadership models, House’s

theory does not include leadership traits and behaviour variables (House & Aditya, 1997).

According to the Path-goal Leadership Theory, the leader is responsible for increasing

follower’s motivation to attain personal and organisational goals. Motivation can be

increased by clarifying what follower’s have to do to get rewarded, or increasing the

rewards that the follower values and desires. Path clarification means that the leader

works with the followers to help them identify and learn the behaviours that will lead to

successful task accomplishment and organisational rewards. According to House (1971),

the Path-goal Leadership Theory consists of the following factors:

43

Situational factors:

Authoritarianism is the degree to which employees prefer to, and want to, be

told what to do and how to do a job.

Locus of control is the extent to which employees believe they have control

over goal achievement (internal locus of control), or goal achievement is

controlled by others (external locus of control).

Ability is the extent of the employee’s ability to perform tasks to achieve

goals.

Environmental factors:

Task structure, i.e. the extent of the repetitiveness of the job.

Formal authority, i.e. the extent of the leader’s position power.

Work group, i.e. the relationship between followers.

Leadership styles:

Based on the situational factors in the Path-goal Model, the leader can select the most

appropriate leadership style for a particular situation. The original model included only

the directive and supportive leadership styles (from the Ohio State and University of

Michigan behavioural leadership studies). House and Mitchell added the participative and

achievement-oriented leadership styles in a 1974 publication (House & Mitchell, 1974).

These leadership styles can be described as follows:

Directive

The leader provides a high degree of structure. Directive leadership is appropriate

when the followers prefer autocratic leadership, have an external locus of control,

and the skills levels of the followers are low. Directive leadership is also

appropriate when the task to be completed is complex or ambiguous and followers

are inexperienced.

44

Supportive

The leader exercises a high degree of consideration. Supportive leadership is

appropriate when the followers do not desire autocratic leadership, when they

have an internal locus of control and when the follower’s skills levels are high.

Supportive leadership is also appropriate when the tasks are simple and followers

have a lot of experience.

Figure 1.9 Path Goal Leadership Theories

Participative

The leader encourages and allows follower’s input into decision-making.

Participative leadership is appropriate when followers wish to be involved, when

they have an internal locus of control and when their skills levels are high.

Participative leadership is also appropriate when the task is complex and

followers have a lot of experience.

Achievement-orientated

The leader sets difficult but achievable goals, expects followers to perform at their

highest level and rewards them for doing so. In essence, the leader provides both

strong direction (structure) and a high level of support (consideration).

45

Achievement-orientated leadership is appropriate when followers are open to

autocratic leadership, when they have an external locus of control and when

ability of followers is high.

Normative Leadership Theory/Vroom-Yetton Model

The Vroom–Yetton contingency model is a situational leadership theory

developed by Victor Vroom, in collaboration with Phillip Yetton (1973) and later with

Arthur Jago (1988). The situational theory argues the best style of leadership is

contingent to the situation. This model suggests the selection a leadership style for group

decision making.

Vroom and Yetton (1973) identified five leadership styles as described below:

Two are autocratic (AI and A II), two are consultative (CI and CII), and one is group-

oriented (GII).

Autocratic Leadership Styles:

AI:

The leader makes the decision alone, using available information without input from

others.

AII:

The leader obtains information from followers but makes the decision alone. Followers

are asked only for information and not for their input into the decision.

Consultative Leadership Style:

CI:

The leader meets individually with relevant followers, explains the situation and obtains

information and ideas on the decision to be made. The leader makes the final decision

alone. The leader may or may not use the follower’s input.

CII:

The leader meets with followers as a group, explains the situation, and gets information

and ideas on the decision to be made. The leader makes the decision alone after the

meeting. Leaders may or may not use the followers input.

Group-orientated Leadership Styles:

46

GII:

The leader meets with the followers as a group, explains the situation, and the decision is

made on the basis of group consensus. The leader does not attempt to influence the group

and is willing to implement any decision that has the support of the entire group. In the

absence of consensus, the leader makes the final decision based on the input of the group.

Leader Member Exchange Theory

The Leader-Member Exchange theory (shortly LMX theory) occupies a unique

position among leadership theories because of its focus on the dyadic relationship

between leader and follower. LMX theory was originally called Vertical Dyad Linkage

(VDL) theory by Dansereau, Graen & Haga in 1975. According to LMX theory, Leaders

and followers develop dyadic relationships and leaders treat each follower differently,

resulting in two groups of followers—an in-group and an out-group. Leaders choose

subordinate with certain characteristics in their groups like age, sex, personality that are

compatible with leader and or higher level of competence than out group member.

Leader-member exchange theory predicts that subordinates in ‘in group status’ will have

higher performance ratings, less turnover and greater satisfaction with the superiors.

Research to test leader member exchange has been generally very supportive. The theory

and research substantiate that leaders do differentiate among subordinates and ‘in group’

and ‘out group’ status is related to employee performance and status.

Action Centered Leadership Model

Adair’s Action Centered Leadership Model following observations of leaders and

their followers during the 1970s. Adair captured his theory in a 3 circle diagram; in which

each of the circles overlapped. The three overlapping circles illustrate that each of the

functions are interdependent. This is because individuals make up teams,

teams/individuals complete tasks and without a task there is no need for a team or

individual. If one element is missing or weak then the other elements will suffer. For

example if the team is weak then the task will suffer and one weak individual can affect

team performance and subsequently task completion. Adair said that leaders should

therefore concentrate on:

47

Figure 1.10 Action-Centered Leadership Model (Adair 1973)

Task Completion (achieve the task)

Creating and sustaining a group of people that work together as a team (build and

sustain a team) and

Development of individuals within the team (develop the individual).

Adair stated that the three objectives (above) can be achieved through the

following actions. These are often referred to as leadership functions. He list eight

leadership functions:

1. Defining the task: Using SMART goals (Specific, Measurable, Achievable,

Realistic and Time-Constrained) to set a clear objective.

2. Planning: An open minded, positive and creative search for alternatives.

Contingencies should be planned for and plans should be tested.

3. Briefing: Team briefings by the leader are a basic functions and essential in order

to create the right atmosphere, foster teamwork and motivate each individual.

4. Controlling: Leaders need self control, good control systems in place and

effective delegation and monitoring skills in order to get maximum results from

minimum resources.

5. Evaluating: Assess consequences, evaluate performance, appraise and train

individuals.

6. Motivating: Adair identifies eight basic rule for motivating people. He also

created the 50:50 rule which states that 50% of motivation comes from within a

person and 50% from his environment and particularly the leadership they

encounter.

48

7. Organizing: Good leaders need to be able to organize themselves, their team and

their organization.

8. Setting an example: The best leader naturally set a good example. If efforts need

to be made it will slip and a bad example is noticed more than a good example.

Reddins three dimensional model

The Reddin model is based on the two basic dimensions of leadership, which he

referred to as “task-orientation” and “relationships-orientation.” In addition, he

introduced a third dimension: “effectiveness.” i.e. Reddin uses three dimensions of task-

orientation, relationship - orientation, and the effectiveness. Effectiveness results when

the right style of leadership is applied in each particular leadership situation.

“relationships-orientation.” Reddin identified four major leadership styles on the high-

effectiveness plane and four corresponding styles on the low-effectiveness plane,

effectiveness being where the leadership style matches the demands of the situation.

Figure 1.11 Reddin’s 3-D model

a) High task and low relation, dedicated

b) High task and high relation, integrated

49

c) High relation and low task the related

d) Low task and low relation separated

BASIC STYLE EFFECTIVE STYLE INEFFECTIVE STYLE

Dedicated Benevolent Autocrat Autocrat

Integrated Executive Compromise

Related Developer Missionary

Separated Bureaucrat Deserter

For example, a manager who demonstrates a high level of task-orientation and

high level of relationships-orientation is referred to as a “Benevolent Autocrat”. On the

other hand, a manager who applies low relationship-orientation and high task-oriented

behavior is simply labeled an “Autocrat”. The real breakthrough with Reddin’s 3-D

model was the concept that one can assess each situation and identify the behavior that is

most appropriate.

Factors Affecting Choice of Leadership

In an organization, choice of a leader is governed by certain forces. These are,

forces acting on the leader; forces acting on the subordinates; and forces acting on the

situation. (Tannenbaum & Warren, 1958)

Forces Acting on the Leader

In any given situation, the behavior of the leader is influenced by his own

personality: that is, leadership is perceived on the basis of his background, knowledge

and experience. The important forces affecting him are his value system; that is the

relative importance he attaches to organizational efficiency, the personal growth of his

subordinates and company profits. His confidence in his subordinates, which is

influenced by the knowledge and competence they have his own leadership inclination;

whether he can function comfortably and naturally or he is uncomfortable when operating

in a team. His feeling of security in an uncertain situation. In other words, his tolerance

for ambiguity is taken as an important variable in his dealings with problems.

50

Forces Acting on Subordinates

The Leader needs a knowledge of factors, which influences his employee’s

personality. The leader may grant greater freedom to his subordinate if he is assured that,

the subordinate has a relatively high need for independence, he is ready to assume

responsibility for decision, a relatively high tolerance of ambiguity, is interested in the

problem which is important, understand and identifies himself with the goals of the

organization, has the necessary knowledge and experience to deal with problems and he

has learnt to expect that he would share in the decision making process.

Forces acting on the situation

Some aspects of a general situation affect the leader’s behavior, these are, the type

of organization for which he works, its values and traditions which are communicated

through job description, policy announcements and public statements by top executives,

the qualities of the leader. Some organizations require that their executives should be

dynamic, imaginative, decisive, and persuasive, while other place emphasis on their

ability to work effectively with people. The size of a working unit, its geographical

location and the extent of inter and intra-organizational security which is needed to attain

company goals also affect the quality and extent of employee participation and group

effectiveness. The leader should know that a group, which has a long standing, is in the

habit of working in cooperation. Moreover, the confidence which member of a group

have in their ability to solve a problem as a group is also to be born in mind.

Cohesiveness, permissiveness, mutual acceptance and a common purpose also influence

the functioning of a group. The nature of the problem itself may determine whether the

authority should be delegated to subordinates and if so to what extent. The pressure of the

time is intense, decision have to be taken quickly with a high degree of authority, if this is

not possible and subordinates may be given a share in the decision making process.

Leadership Skills

Leadership skills are the tools, behaviors and capabilities that a person needs in

order to be successful at motivating and directing others. Leadership skills involve

something more; the ability to help people grow in their own abilities. It can be said that

most successful leaders are those that drives others to achieve their own success.

51

Leadership skills are sets of qualities and attributes in the personality of managers that

enable them to effectively manage the working of a firm. Good leadership skills can

create a world of difference in the efficiency and performance of the organization.

Leaders who are lack in leadership skill need to be effective today. The ability to lead

effectively is based on many key skills. For effective execution of work or policies,

leader should focus to develop such skills which make them effective. It's rightly said,

Manager/leader causes the rise or fall of organization. In the era of Globalization, it's

become difficult to handle lot of expectation from, customers, employees and external

factors. So to handle these issues, Manager should enhance his leadership skills for

organizational effectiveness. There are Six types of key leadership skills i.e.

communication skills, knowledge skills, development of people skills, client orientation

skills, achievement orientation skills and team orientation skills. If these skills are highly

cultivated in the leadership, the organization is bound to attain heights of success and

vice versa.

Communicational Skill

Communication skills means to convey ideas and information clearly and in an

appropriate manner to the employees. A Leader should be good with words, skilled at

public speaking and make strong impression when taking parts in meetings or giving

presentations. A leader should

Delivers consistent messages that reinforce the government’s/department’s

priorities.

Provides a clear sense of direction for the team and Co-workers.

Provides information and exchange of ideas in a way that promotes open and

candid communication and understanding.

Gives feedback which is specific, timely and issue-focused

Encourages open discussion of differences of opinion through impartial

questioning and clarification that is directed toward a positive outcome

52

Knowledge Skill

Knowledge skill may be described as possessing knowledge and professional

competence relative to work function. Knowledge is inextricably related to the

application and implementation of problem-solving skills in organizations. It directly

influences a leader’s capacity to define complex organizational problems and to attempt

to solve them (Mumford, Zaccaro, Harding, et al., 2000). Knowledge refers to the

accumulation of information and the mental structures used to organize information. Such

a mental structure is called schema (a summary, a diagrammatic representation, or an

outline). Knowledge results from having developed an assortment of complex schemata

for learning and organizes data. A leader should possess knowledge and professional

competence relative to work function. The behavior of leader should be

Produces sound conclusions and recommendations that contribute to effective

decision making

Knows when and where to obtain assistance when faced with challenging work

problems

Continually seeks sources of information or subject matter experts to maintain

current knowledge

Analyses pertinent information to better understand its impact prior to making

decisions

Applies expertise to perform the job effectively

Works toward creating practical solutions to problems

Development of people

Development of people involves working to develop people’s contribution and

potential. It involves a genuine intent to foster the long-term learning or development of

others, including direct reports, peers, team members or other staff. The focus is on the

developmental intent and effect rather than on a formal role of training. A leader should

Positively communicates the vision/goals of the department helping others to

understand their role in achieving the business plan

53

Offers suggestions that help people find solutions to their problems

Documents a specific development plan to support the achievement of

performance targets and competencies, through the performance management

process

Shares information and expertise with others to increase understanding and

informed decision making

Helps people reflect and learn from previous experiences to avoid future pitfalls,

and build on past successes

Client Orientation

Client orientation skill involves the ability to develop contacts and maintain

strong relationships Focuses one’s efforts on discovering and meeting the client’s needs,

while balancing against the government’s key business and strategic priorities. Clients

may be broadly defined, including internal “customers” or “clients”, as well as the public.

A leader should

Provides clients with timely, effective information/products and services

States candidly what can be done to meet client needs, offering innovative/

creative solutions to problems

Responds to a client’s concern and ensures that the client is aware of what actions

are being taken

Works cooperatively with other departments/agencies to meet client needs

Elicits information from clients to identify needs and set realistic expectations

Achievement Orientation

Achievement orientation involves working to achieve results and improve

individual and organizational contribution. Achievement Orientation is a concern for

working well or for surpassing a standard of excellence. The standard may be one’s own

past performance (striving for improvement); an objective measure (results orientation);

outperforming others (competitiveness); challenging goals one has set; or trying

54

something new that will improve organizational results (innovation). Achievement

Orientation also involves effectively managing internal and external resources to achieve

the Government’s goals. A leader should

Organizes people and allocates tasks and responsibilities so that multiple

objectives can be accomplished simultaneously

Assumes own responsibility for developing leadership competencies and

management skills to meet individual performance targets

Inspires and encourages others to do their best by providing meaningful

constructive feedback and encouragement

Organizes own work to stay on track toward targets, keeping others informed of

progress or barriers to achievement

Sets and achieves individual performance targets aligned with the business plan

Is receptive to feedback from others on existing ideas, procedures, and policies,

seeking out creative/innovative solutions for improvement

Team Orientation

Team orientation involves the ability to work collaboratively with others to

achieve common goals, to be part of a team and work together, as opposed to working

separately or competitively. Team Orientation also includes taking the role as leader in a

team or other group. It implies a desire to lead others. Leadership is not always shown

from a position of formal authority. The “team” here should be understood broadly as any

group in which the person takes on a leadership role, including the enterprise as a whole.

“Team” is broadly defined as any task or process oriented group of individuals. A leader

must know how to build and nurture such a team. A good leader knows when to be a

leader and when to be a follower. The best leaders are good followers when that's what is

needed. Building teamwork is another essential leadership skill example. A leader should

Gives praise and recognition to team members for their achievements and

contribution

55

Fosters collaboration and exchange of ideas with others from diverse

backgrounds, experiences, and functions

Proactively raises difficult issues within the team providing suggestions and

support to move forward

Actively contributes individual expertise and experience to achieve team goals

Foresees and influences change by maintaining a positive attitude to new ideas

and new ways of doing things

Leadership Ethics

All leadership is responsible for influencing followers to perform an action,

complete a task, or behave in a specific manner. Effective leaders influence process,

stimulate change in subordinate’s attitudes and values, augment followers’ self-efficacy

beliefs, and foster the internalization of the leaders’ vision by utilizing strategies of

empowerment. It is believed that the nurturing aspect of leaders can raise organizational

cultures and employee values to high levels of ethical concern. Ethical leadership requires

ethical leaders. If leaders are ethical, they can ensure that ethical practices are carried out

throughout organization.

Ethical leadership is leadership that is involved in leading in a manner that

respects the rights and dignity of others. “As leaders are by nature in a position of social

power, ethical leadership focuses on how leaders use their social power in the decisions

they make, actions they engage in and ways they influence others”. Leaders who are

ethical demonstrate a level of integrity that is important for stimulating a sense of leader

trustworthiness, which is important for followers to accept the vision of the leader. These

are critical and direct components to leading ethically. The character and integrity of the

leader provide the basis for personal characteristics that direct a leader’s ethical beliefs,

values, and decisions. Individual values and beliefs impact the ethical decisions of

leaders.

Leaders who are ethical are people-oriented, and also aware of how their

decisions impact others, and use their social power to serve the greater good instead of

self-serving interests. In ethical leadership it is important for the leader to consider how

56

his or her decisions impact others. Motivating followers to put the needs or interests of

the group ahead of their own is another quality of ethical leaders. Motivating involves

engaging others in an intellectual and emotional commitment between leaders and

followers that makes both parties equally responsible in the pursuit of a common goal.

These characteristics of ethical leaders are similar to inspirational motivation, which is a

style component of transformational leadership. Inspirational motivation “involves

inspiring others to work towards the leader’s vision for the group and to be committed to

the group”. Similarly, ethical leadership “falls within the nexus of inspiring, stimulating,

and visionary leader behaviors that make up transformational and charismatic

leadership”. Ethical leaders assist followers in gaining a sense of personal competence

that allows them to be self-sufficient by encouraging and empowering the

Ethical Leadership in Organizations

In organizational communication, ethics in leadership are very important.

Business leaders must make decisions that will not only benefit them, but also they must

think about how the other people will be affected (Stansbury, 2009). The best leaders

make known their values and their ethics and preach them in their leadership style and

actions. It consists of communicating complete and accurate information, where there is a

personal, professional, ethical, or legal obligation to do so (McQueeney , 2006). When

practicing ethics, you gain the respect and admiration of employees, with the satisfaction

of knowing you did the right thing. If you never make clear what you want, and expect,

then it can cause mistrust.

For organization, the leader might want to let employees know his values right off

the bat. Such values can be teamwork, ambition, honesty, efficiency, quality,

accomplishment, and dedication.

Characteristics of ethical Leader Focus on organizational success rather than on personal ego

Ethical leaders understand their place within the larger network of constituents

and stakeholders. It is not about the leader as an individual, it is about something

bigger—the goals and dreams of the organization. Ethical leaders also recognize that

value is in the success of people in the organization.

57

Find the best people and develop them

This task is fairly standard in different models of leadership. Ethical leaders pay

special attention to finding and developing the best people precisely because they see it as

a moral imperative—helping them to lead better lives that create more value for

themselves and for others. Finding the best people involves taking ethics and character

into account in the selection process.

Make tough calls while being imaginative

Ethical leaders inevitably have to make a lot of difficult decisions, from

reorienting the company’s strategy and basic value proposition to making individual

personnel decisions such as working with employees exiting the organization. Ethical

leaders do not attempt to avoid difficult decisions by using an excuse of “I’m doing this

for the business.” The ethical leader consistently unites “doing the right thing” and

“doing the right thing for the business.

Know the limits of the values and ethical principles they live

All values have limits, particular spheres in which they do not work as well as

others. The limits for certain values, for instance, may be related to the context or the

audience in which they are being used. Ethical leaders have an acute sense of the limits of

the values they live and are prepared with solid reasons to defend their chosen course of

action. Problems can arise when managers do not understand the limits of certain values.

Frame actions in ethical terms

Ethical leaders see their leadership as a fully ethical task. This entails taking

seriously the rights claims of others, considering the effects of one’s actions on others

(stakeholders), and understanding how acting or leading in a certain way will have effects

on one’s character and the character of others. There is nothing amoral about ethical

leaders, and they recognize that their own values may sometimes turn out to be a poor

guidepost.

58

Principles of Ethical Leadership

Ethical Leaders Respect Others

Respect for others is a complex ethic that is similar to but goes dipper than the

kind of respect that parents teach children when they are little. Respect means that a

leader listens closely to his or her subordinates, is empathic, and is tolerant of opposing

point of view. It means treating subordinates in ways that confirm their beliefs, attitudes

and values. When a leader exhibits respect to subordinates, subordinates can feel

competent about their work. In short, leaders who show respect in fact treat others as

worthy human beings.

Ethical Leaders Serve Others

Leaders who serve are altruistic; they place their follower’s welfare foremost in

their plans. In the workplace, altruistic service behavior can be observed in activities such

as mentoring, empowerment behavior, team building and citizenship behavior, to name a

few (Kauungo & Mendonca, 1996). Ethical leaders have a responsibility to attend to

others, be of service to them and make decision pertaining to them that are beneficial and

not harmful to their welfare. Effective leaders see their own personal vision as an

important part of something larger than themselves- a part of the organization and

community at large.

Ethical Leaders are Just

Ethical leaders are concerned about issues of fairness and justice. They make it a

top priority to treat all of their subordinates in an equal manner. Justice demands that

leaders place issues of fairness at the center of their decision making. As a rule, no one

should receive special treatment or special consideration except when their particular

situation demands it. In instances where individuals are treated differently, the grounds

for differential treatment need to be clear, reasonable and based on sound moral values.

When resources and rewards or punishments are distributed to employees, the

leader plays a major role. The rules that are used and how they are applied say a great

deal about whether the leader is concerned about justice and how he or she approaches

issues of fairness.

59

Ethical leaders are Honest

To be a good leader, leaders need to be honest. When leaders are not honest,

others come to see them as undependable and unreliable. People lose faith in what leader

say and stand for; their respect for leaders is diminished. As a result, the leader’s impact

is compromised because others no longer trust and believe in the leader. But being honest

is not just telling the truth. It has to do with being open with others and representing

reality as fully and completely as possible. However, this not an easy task because there

are times when telling the complete truth can be destructive or counterproductive. The

challenge for leaders is to strike a balance between being open and candid while at the

same time monitoring what is appropriate to disclose in a particular situation. It is

important for leaders to be authentic but at the same time it is essential that they be

sensitive to the attitudes and feelings of others. Honest leadership involves a wide set of

behaviors.

Ethical Leaders build Community

Leaders need to take into account their own and follower’s purposes, while

working towards goals that are suitable for both of them. An ethical leader takes into

account the purposes of everyone involved in the group and is attentive to the interests of

community and the culture. Such a leader demonstrates an ethic of caring towards others

(Gilligan, 1982) and does not force others or ignore the attentions of others. (Bass &

Steidlmeier, 1999)

Significance of the study

Leadership is the ability to help others to meet their goals .Good leadership is

required for the effective and efficient outcome. Leadership remains one of the most

relevant aspects of the organizational context. As organizations continuously improve

and evolve, the role of a leader becomes more demanding and important. Many leaders

are facing greater challenges than ever before due to increased environmental complexity

and the changing nature of organizations (Riaz & Haider, 2010). Effective leadership

leads to competitive advantage for any kind of organization (Avolio ,1999 ; Lado et al.,

1992; Rowe, 2001; Zhu et al., 2005). Leaders are conferred the opportunity to lead, not

because they are appointed by senior managers; they lead because they are perceived and

60

accepted by followers as leaders (Boseman, 2008). In fact, a leader is responsible for not

only leading but also providing followers with a sense of direction needed to accomplish

organizational goals. The success of an organization depends upon how effectively and

efficiently a leader manages and influences the subordinates to achieve the organizational

objective which in turn depends upon the role/behavior/style a leader applied in an

organization.

Leadership style is the ―relatively consistent pattern of behavior that

characterizes a leader (DuBrin, 2001). Leadership style means the ways/method through

which he influences his subordinates or followers. Different leadership style will result

different impact to organization. The leader has to choose the most effective approach of

leadership style depending on situation because leadership style is crucial for a team

success. Thus studying the leadership style in organization is essential to know the way

leaders influence and manages their subordinates in their day-to-day activities whereas

leadership skills are sets of qualities and attributes in the personality of managers that

enable them to effectively manage the working of a firm. Good leadership skills can

create a world of difference in the efficiency and performance of the organization.

Leaders who are lack in leadership skill need to be effective today. The ability to lead

effectively is based on many key skills.

For effective execution of work or policies, leader should focus to develop such

skills which make them effective. It's rightly said, Manager/leader causes the rise or fall

of organization. In the era of Globalization, it's become difficult to handle lot of

expectation from, customers, employees and external factors. So to handle these issues,

manager should enhance his leadership skills for organizational effectiveness. Thus

keeping in view the importance of leadership this research focus on the following

objectives:

To find out the Leadership Styles of Indian bank managers in Private and

Public Sector Banks.

To find out the effectiveness of Leadership Style.

To study the personal characteristics and skills of a leader.

61

To study the attitudes of employee’s towards managers at work place.

To study effect of demographic and social factors on leadership styles.

To study the leadership ethics of bank managers in private and public sector

bank

Definition of Terms

Bank: a commercial institution that keeps money in accounts for individuals or

organizations, makes loans, exchanges currencies, provides credit to businesses, and

offers other financial services. (Macesich, 2000)

Bank manager: Manager of a branch office of a Bank.(Macesich, 2000, p.80)

Employee: A person who has agreed by contract to perform specified services for

another, the employer, in exchange for money.

Leadership: ultimately about creating a way for people to contribute to making

something extraordinary happen (Kouzes and Posner 2007)

Leadership Style: Leadership style is the ―relatively consistent pattern of behavior that

characterizes a leader (DuBrin, 2001).

Autocratic leadership style: A leadership style where the leader solves the problem or

makes the decision by himself/herself using the information available at the time.

(Richard and Robert, 2009)

Democratic leadership style: a style of leadership characterized by group participation

in decision-making where the leader shares the problem with the relevant team members

as a group. (Parker, 2003)

Laissez fair leadership 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. (Richard and Robert, 2009)

62

Plan of the study

Chapter I Introduction

Chapter I deals with introduction about leadership, Nature of Leadership , Leadership and

Management, Changing Styles for the New Millennium from Management towards

Leadership, Leadership: A Concept Map , Qualities for Successful Leadership,

Leadership Characteristics, Styles of Leadership, Other Type of Leadership Style,

Theories of Leadership, Factors Affecting Choice of Leadership, Leadership skills,

Leadership Ethics, Ethical Leadership in Organisations, Characteristics of ethical Leader,

Principles of Ethical Leadership, Significance of the study, Objectives of the study, Plan

of study and Summary

Chapter II Review of Literature

This chapter includes literature, local and international studies about the topic of the

research, which was collected by reviewing different books and studies from different

university libraries. The studies done in India or in abroad bearing direct or indirect effect

on the present study has been reviewed and presented in this chapter. The review of

literature contains studies related with Leadership Styles, Characteristics of Leader,

Leadership skills and Leadership Ethics. These studies pertains to the period from 1977

to 2012

Chapter III Research Methodology

This chapter incorporates Research Methodology, Research Design, Sampling Designs,

Selection of Banks, Selection of Towns, Sampling Size, Tools of Data Collection, Scales

used in Research Study, Data Analysis Techniques, Development of Variables, Need of

Study and objectives of the study.

Chapter IV Analysis and Discussions

This chapter discusses the results of data obtained from branch managers on Leadership

Styles, Characteristics and Skills of Leaders and effect of demographic and social factors

on leadership styles and also the data obtained from employees on attitudes of

employee’s towards managers at work place and leadership ethics of branch managers. It

also discusses the effectiveness of leadership style.

63

Chapter V Summary & Conclusion

This chapter incorporates the summary, conclusion & recommendations for Public banks,

recommendations for private banks. It also discusses the directions for future research.

CHAPTER I INTRODUCTION - Shodhgangashodhganga.inflibnet.ac.in/.../32420/9/09_chapter_1.pdf · 2018....

Documents

Transcript of CHAPTER I INTRODUCTION - Shodhgangashodhganga.inflibnet.ac.in/.../32420/9/09_chapter_1.pdf · 2018....