Leadership

Introduction

Leadership is the process of influencing the behaviour of others towards the accomplishment of goals in a given situation.

It is the ability of a manager to induce subordinates to work with confidence and zeal.

According to Louis Allen, 

“A leader is one who guides and directs other people. He gives the efforts of his followers a direction and purpose by influencing their behaviour.”

Characteristics of Leadership

• A leader must have followers
• Leadership is a working relationship between the leader and his followers
• The purpose of leadership is to achieve a common goal
• A leader influences his followers not by force or coercion
• Leadership is a process of influence
• Leadership is a continuous and dynamic process

Importance of Leadership

• Setting goals: A leader lays down the targets that he and his people are to attain.
• Motivating employees: Good leadership is a motivating force for individuals, inspiring people to work hard.
• Building morale: Good leadership is indispensable to high employee morale. The leader lifts a man’s vision to higher sights, raises his performance and builds up his personality.
• Creating confidence: An effective leader creates and sustains self confidence and enthusiasm among his followers.
• Discipline: Discipline is the force that prompts individuals to observe rules, regulations and procedures which are necessary for the attainment of objectives.
• Developing teamwork: Leadership helps to unify individual efforts.
• Facilitates change: Leadership is the mechanism to convince people about the need for change.

Manager vs Leader

Leadership is often confused with management. While management is about coping with complexity, leadership is about coping with change.

Management establishes plans while leadership establishes direction for an organisation. 

Manager

• Drives the employee
• Accomplishes work at the expense of the employees
• Uses negative approach, ‘Never mind what you think, do it my way’
• Instills fear in employee by threats and coercion
• Says I
• Passes the buck
• Blame others for loss in production or sales

Leader

• Inspire the employee
• Accomplishes work and develops the employee
• Uses positive approach, “We will work it out together. What do you suggest”?
• Coaches the employee, shows her how to do her job
• Says We
• Assumes obligation
• Fixes the blame for loss in production or sales in himself

Formal and Informal Leader

Formal Leaders

• They have formal authority over their subordinates.
• They focus on the accomplishment of organizational goals.
• They are formally appointed.
• They use orders to seek obedience
• They do very little to increase the morale and job satisfaction of subordinates.

Informal Leaders

• They do not have formal authority over their subordinates.
• They focus on accomplishment of the goals of their subordinates.
• They emerge through mutual consent of group members.
• They seek obedience through commitment
• They increase the morale and job satisfaction of their subordinates

Styles of Leadership

Leadership style refers to a leader’s behaviour. Behavioural patterns which the leaders reflect in his or her role as a leader is often described as the style of leadership.

1. Autocratic or authoritarian leadership

An autocratic leader exercises complete control over the subordinates.

He centralises power in himself and takes all decisions without consulting the subordinates.

2. Participative or Democratic Leader

A consultative or democratic leader takes decisions in consultation and participation with the subordinates.

He decentralises authority and allows the subordinates to share its power.

3. Free Rein or Laissez Faire Leader

Free-rein leadership involves complete delegation of authority so that subordinates themselves take decisions.

The free-rein leaders avoids power and relinquishes the leadership position.

He serves only as a ‘contact’ to bring the information and resources needed by the subordinates. 

4. Paternalistic Style

Under this, the leader assumes that his function is fatherly.

His attitude is that of treating the group as a family with leader as the head of the family.

He works to help, guide, protect and keep his followers happily working together as members of the family

Likert’s Management Systems and Leadership

Rensis Likert and his associates of the University of Michigan, U.S.A conducted an extensive survey of management styles and patterns.

There are four management systems or leadership styles, according to Likert:

System 1 ⇒ Exploitative Authoritative

System 2 ⇒ Benevolent Authoritative

System 3 ⇒ Consultative

System 4 ⇒ Participative

1. Exploitative Authoritative

• The managers under this system make all work-related decisions and order their subordinates to carry out the decisions.
• The subordinates have no say in the decision making process. The communication between the manager and his subordinates is highly formal in nature and downward in direction.

2. Benevolent Authoritative

• System 2 managers are also autocratic, but they are not exploitative.
• They adopt a paternalistic approach towards the subordinates. They allow some freedom to subordinates to carry out their tasks within the prescribed limits.

3. Consultative

• Managers under this system set goals and issue orders after discussing them with the subordinates. 
• They take major decisions themselves and allow subordinates to take the routine decisions. Subordinates are free to discuss the work-related matters with the managers. Thus, there is two-way communication. 

4. Democratic/ Participative

• Under this system, goals are set, and work-related decisions are taken by the subordinates. Supervision and control are group- oriented.
• Managers are friendly and supportive in their attitudes towards the subordinates.
• In addition to economic rewards, subordinates are given a sense of purpose and feeling of worth. The communication system is completely open.

Likert suggested that System 4 is the ideal towards which organizations should work. He advocated system 4 as the best way to develop and utilize human resources.

Leadership Continuum

Tannenbaum and Schmidt have developed the concept of leadership continuum to highlight the range of possible leadership styles.

• Manager makes decision and announces it: It is an extreme form of autocratic leadership whereby the boss takes the decision and asks the subordinates to implement it.
• Manager sells the decision: In this style the boss alone takes the decision and persuades the subordinates to accept it.
• Manager presents ideas and invites questions: This style involves greater involvement of subordinates. The boss arrives at the decision and asks subordinates to express their views on it.
• Management presents tentative decision subject to change: Herein the boss takes a tentative decision and modifies it in the light of views expressed by the subordinates.
• Manager presents problems, gets suggestions and takes decision: In this case the boss takes the decision after hearing the suggestions from subordinates
• Manager defines the limits and asks the group to make decisions: In this case the boss takes the decision after hearing the suggestions from subordinates
• Manager permits subordinates to functions within the limits defined by him
  

This style involves full participation of subordinates. The boss defines overall limits. Subordinates are free to decide and act within these limits.

As one moves from the left extreme to the right extreme, the degree of control goes down and the freedom of subordinates goes up.

The continuum approach to leadership provides a wide range of leader behavior. It identifies the behavioral activities to a manager and highlights the dynamic nature of leadership. It also suggests that the leadership style should be adapted to the requirements of the situation.

Great Man Theory of Leadership

The great man theory of leadership espouses that “great leaders are born, not made.”

It was attributed to a historian named Thomas Carlyle.

Assumptions

• The leaders are born and not made and possess certain traits which were inherited.
• Great leaders can arise when there is a great need.

Napoleon was said to have the ‘natural’ leadership abilities to rise out of any situation to be a great leader.

Modern theorists argue that there is nothing inborn about leadership qualities. Such qualities can be learnt through training and experience.

Trait Theory of Leadership

Trait theory seeks to determine universal personal characteristics of effective leaders. A list of universal personal characteristics were determined to define an effective leader.

According to trait theory, some of the important traits of an effective leader are:

• Intelligence 
• Physical Features
• Inner Motivation 
• Drive  
• Maturity
• Vision and Foresight  
• Acceptance of Responsibility
• Open minded and Adaptability
• Self confidence
• Human Relations Approach
• Fairness and Objectivity

  It must be noted that personal traits are only a part of the whole environment.

Thus, trait theory explains only a part of the effective leader. A person may be successful in a certain situation due to some traits but fail in another situation.

Behavioural Theories of Leadership

According to Behavioral theories, effective leadership depends on role behavior rather than traits. Success in leadership depends more on what the leader does than on his traits.

A leader uses

a) conceptual

b) human and 

c) technical skills to influence the behavior of his subordinates.

 Behavioral theories suggest that specific behaviors differentiate leaders from non-leaders.

 Some of the important behavioral theories are-

1. Michigan University

2. Ohio State Studies

3. Managerial Grid of Blake and Mouton

4. Tri-Dimensional Leader Effectiveness Model

Michigan Studies

The Michigan leadership study was a well - known series of leadership studies that

commenced at the University of Michigan in the 1950s. 

It is intending to identify the principles and types of leadership styles that led to greater productivity and enhanced job satisfaction among workers.

Ohio State Studies

  The leadership studies initiated at Ohio state university attempted to identify various dimensions of leader behavior.

  These studies narrowed the description of leader behavior into two dimensions:

1. Initiating Structure Behavior

2. Consideration behavior

The Ohio State Leadership studies also concluded that you are not born to become a leader; you can learn, practice, and develop yourself to become one. 

   Initiating Structure Behavior- The behavior of leaders who define the leader-subordinate role so that everyone knows what is expected, establish formal lines of communication, and determine how tasks will be performed. (Like task orientation)

   Consideration Behavior- The behavior of leaders who are concerned for subordinates and attempt to establish a warm, friendly, and supportive climate. (like employee orientation)

   The findings of Ohio State Leadership Studies suggest that effective leaders possess a strong ability to work with others and build a cohesive team that is balanced with the capability to create structure within which activities can be accomplished.

Managerial Grid

Robert Blake and Jane Mouton developed the managerial grid.

The model is based on two behavioral dimensions:

1. Concern for people

2. Concern for results/production

Concern for People: This is the degree to which a leader considers team members’ needs, interests and area of personal development when deciding how best to accomplish a task.

Concern for Results/Production: This is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task.

Blake and Mouton defined five leadership styles based on these:

• Impoverished: The manager has maximum concern for people and minimum concern for production.
• Country Club: The manager has moderate concern for both production and people.
• Task Management: The leader is mainly concerned with production with little concern for people.
• Team Management: The leader has maximum concern for both production and people. It is considered as the best leadership style.
• Middle of the road: The manager has moderate concern for both people and production.

The managerial grid can be used to enable managers to identify their current leadership behavior. 

Managers who are found to have low concerns for people and for production can be given training to help them to move 9.9 style.

The grid approach is useful not only for leadership training but organizational development too

Tri-dimensional leader effectiveness model

M J Reddin added effectiveness dimension to the two dimensions of managerial grid.

   When the style of leader is appropriate to a specific situation, it is termed effective. The difference between effective and ineffective styles is not actual behavior of the leader but the appropriateness of the behavior to the environment in which it is used. Therefore, the third dimension is environment.

Situational Theories of Leadership

Leadership style may be effective under one situation and ineffective under the other.

Winston Churchill for instance, the most effective and successful Prime Minister

of Britain during the period of the second World War, but he was a flop afterwards

when the situation changed.

Some of the important situational theories are - 

1. Fiedler’s Contingency Model

2. Hersey and Blanchard Theory

3. Path Goal Theory

Fiedler’s Contingency Model

• This theory was developed by Austrian Psychologist, Professor Fred Fiedler.
• Fiedler’s contingency model state that there is no one best style of leadership.
• Fiedler believed that right leader must be chosen for each job based on their skill set and the requirements of the situation.

According to Fiedler, there are 2 major leadership styles

1. Task orientation 

2. Relation orientation

Step 1 is to Figure out what style does one leader belong to. LPC Score is used to

identify the style of a leader.

Step 2- Identify SITUATIONAL variables

According to him, there are three variables:

1. Leader Member Relations

2. Task Structure

3. Position Power

 8 categories are formed from 3 variables, divided into favorable, moderate and unfavorable - determine what leader is effective in what situation

  The most favorable situation is one in which the leader-follower relations are very good, the leader enjoys great position, power and task structure is well defined.

  The most  unfavorable situation signifies that the leader is disliked, the leader has little position, power and the task is unstructured

 Thus, it explains why a manager may be very successful in one situation but unsuccessful in another situation.

Hersey and Blanchard Theory

It is also known as life cycle theory of leadership.

An Improvement over Behavioral theories, the life cycle theory used 3 variables to create the right leadership style in different situations:

1. Task Behavior = directive

2. Relationship behavior = supportive

3. Maturity level of follower

Managers who live by the model must choose the leadership style as it relates to

the maturity of followers.

  They also developed four types of leadership styles based on the task

and relationships that leaders experience in the workplace.

• Telling/ Directing: High task low relationship style, effective at a very low maturity level of followers
• Selling/ Coaching: High task high relationship style, effective at a low maturity level of followers
• Participating/ supporting: Low task high relationship style, effective at a high maturity level of follower
• Delegating: Low task low relationship style, effective at a very high maturity level of followers.

Path Goal Theory

Robert J. House and Martin Evans developed another situational theory of leadership. 

This theory is known as ‘path goal theory’ because its focus is on how the leader provides subordinates with a path to achieve valued goals.

Like Fiedler’s theory, the path-goal model asserts that effective leadership depends on the situation.

A leader may be required to choose between four distinct styles as per the demands of the situation.

• Directive leadership: This style is like initiating style under Ohio studies. This style is considered effective when the task is ambiguous.
• Supportive leadership: It is considered to consideration style of Ohio Studies. Supportive style is more effective under stressful tasks when the members/ employees need psychological support in order to complete their job.
• Participative leadership: It is more effective under non-repetitive tasks because such tasks face unique and changing situations, which require active participation of all members to overcome the challenge.
• Achievement oriented leadership: This style is more effective under both ambiguous and non-repetitive tasks.

Successful Leader vs. Effective Leader

Transactional Leadership v/s Transformational Leadership

Miscellaneous Theories on Leadership

 This theory was developed in 1973 by Victor Vroom and Phillip Yetton, and later in 1988 with the help of Arthur Jago.

Aim – to identify the best management style that can be applied in different situations, and subsequently the optimal decision-making approach to implement in these situations.

According to this theory, decisions we make are affected by 3 main factors-

According to this theory, decisions we make are affected by 3 main factors. In order to determine the influence of each of these factors on a decision, they defined the following eight questions-

Using simple yes or no answers, the decision maker uses five different leadership styles-

Leader Member Exchange Theory

George Graen and his colleagues constructed the formal leader-member exchange theory. It is a two-way relationship or dyadic relationship between the leaders and their team members that focus on how the leader’s relationship with subordinates vary and how it affects the resource allocations and outcomes.

The quality of leadership is measured by means of the level of trust, respect, loyalty, job satisfaction and job performance.

Risk Taking: It takes place when a new member joins a team, and their abilities are initially assessed by the leader.

Role Making: It is evidently where a role is created for the member. Building trust is also a key factor to this stage.

•Additionally, the member is classified into one of two groups

Routinization: Where routines, norms and expectations are established and both parties get an insight into how you both work.

James Kouzes and Barry Posner Model (Leadership Participation inventory)

Kouzes and Posner introduced the leadership Participation Inventory Model of Transformational Leadership.

According to them, Leadership includes the skills and capabilities that are observable.

They recommend 5 characteristics that make a good leader

John Adair’s Action centered theory

John Adair's simple Action-Centred Leadership Theory. Adair firmly believes that leadership can be taught, that it does not depend on a person's traits and that it is a transferable skill.

His model was figuratively based on three overlapping circles representing-

1. Achieve the task

2. Build and Maintain the team

3. Develop the individual

Adair's concept asserts that these three needs are the watchwords of leadership, as people expect their leaders to help them achieve the common task, build the synergy of teamwork, and respond to individuals' needs

For Adair, the task, team and individual needs overlap as follows:

Achieving the task builds the team and satisfies the individual

If the team needs are not met - if the team lacks cohesiveness - then performance of the task is impaired and individual satisfaction is reduced

If individual needs are not met the team will lack cohesiveness and performance of the task will be impaired

Zenger and Folkman’s 10 Fatal Leadership Flaws

 Leadership consultants Jack Zenger and Joseph Folkman used two studies to identify their 10 fatal leadership flaws.

They observed that people challenged to improve their leadership effectiveness found that focusing on weakness is often the best approach to improvement.

Weaknesses have a dramatic negative impact on perceptions of overall leadership effectiveness. These “Fatal Flaws” create a “Negative Halo effect” and absolutely must be fixed.

Zenger and Folkman's 10 Fatal Leadership Flaws should be a required reading for anyone in a position of leadership.