The ability of a superior to influence the
behaviour of subordinates and persuade
them to follow a particular course of action.
Manager is a copy.
Leader is original.
Manager focuses on system and
Leader focuses on people.
Manager does things right.
Leader does right things.
A person becomes manager by virtue
of his position.
A person becomes a leader on basis
of his personal qualities.
All managers are leaders.
Not all leaders are managers.
Strict & close control over followers.
Gives orders, which must be followed by the
Shares ideas with
Guides and controls
One of the most
A free rein leader doesn’t lead; leaves the group to
fend for itself.
Subordinates decide policies and methods on
Beneficial if the subordinates are skilled.
Ohio State studies
University of Michigan studies
Situational Leadership Theory (SLT)
Leader participation model
Leader-member exchange theory
Acc. to this theory, a LEADER has a specific
set of personal traits, which distinguish him
“Leaders are Born, not made”.
Started shortly after World War II. (late 1940s)
Identified two dimensions of leader behaviour:
Initiating structure: refers to leader behaviour that
defines and organises the group task, assigns the tasks
to employees and supervise their activities.
Consideration: refers to leader behaviour that can be
characterised by friendliness, respect, supportiveness,
openness, trust and concern for welfare of employees.
Two dimensions of leader behaviour:
Employee-oriented: Emphasis on interpersonal
relations; personal interest in the needs of
Production-oriented: Emphasis on completion of
Employee-oriented leaders were associated with
higher productivity and job satisfaction.
Developed by Blake and Mouton, it’s a Graphical
portrayal of 2 dimensions of leadership style:
Concern for People
Concern for Production
Effective group performance depends upon the
proper match between the leader’s style of
interacting with followers and demand of the
A certain leadership style should be most effective in
different types of situations.
Leaders do not readily change leadership styles.
Matching the leader to the situation or changing the
situation to make it favorable to the leader is
Least Preferred Coworker (LPC) questionnaire:
Determines leadership style by measuring responses to 18 pairs of
▪ High score: a relationship-oriented leadership style
▪ Low score: a task-oriented leadership style
Situational factors in matching leader to the situation:
Leader-member relations: The degree of confidence, trust, and
respect subordinates have in their leader.
Task structure: The degree to which the job assignments are
Position power : Influence derived from one’s formal structural
position in the organization; includes power to hire, fire, discipline,
promote, and give salary increases.
By Hersey and Blanchard.
Successful leadership is achieved by selecting
the right leadership style which is contingent
on the level of the followers’ readiness.
Acceptance: leadership effectiveness depends on
whether followers accept or reject a leader.
Readiness: the extent to which followers have the
ability and willingness to accomplish a specific
Unable & Unwilling to do a task
Need to give clear directions
Unable & Willing
Display high task and high relationship
Able & Unwilling
Use a supportive and Participative
Both Able & Willing
Doesn’t need to do much
Developed by Victor Vroom and Philip Yetton
A leadership theory that provides a set of
rules to determine the form and amount of
participative decision making in different
Leader’s job to provide followers with the
information, support or other resources
necessary for them to achieve their goals.
Leaders assume different leadership behaviours:
LMX theory argues that because of time
pressures, leader establish a special
relationship with a small group of their
The creation by leaders of in-groups and outgroups; subordinates with in-groups status
will have a higher performance rating, less
turnover, and greater job satisfaction.
Transactional and Transformational Leadership
‘Transactional leadership’ involves exchange
relationship between the leader and follower.
Features of Transactional Leader
Management by Exception (Active)
Management by Exception (Passive)
Leaders who inspires followers to transcend their
own self-interests for the good of the
One who is capable of having a extraordinary
effect on his or her followers.
Features of Transformational Leaders
Visionary Leadership : The ability to create a
realistic, credible, attractive vision for the future
for an organization that grows out of and
improves on the present.
Charismatic Leadership: According to Plato’s and
Confucius ‘a leader is born not made.’ Charisma
is a god-gifted attribute in a person which makes
him a leader.
Dhirubhai Ambani has not only been a great leader but also an
inspirational story for several youngsters hailing from small towns
to make it big in their respective fields.
Mahatma Gandhi was a major political and spiritual leader of
India who led the country in the various movement during its
struggle for independence.
Adolf Hitler was the leader of the Nazi Party and a notorious
dictator of Germany. As a leader of the Nazi party, Hitler
promoted nationalism, anti-Semitism, anti-communism by
establishing a Fascist dictatorship in Germany
Abraham Lincoln was the 16th President of the United States
who led the country to victory during the American Civil War.
Steve Jobs was an unconventional leader. His management style wasn't
the stuff of university textbooks - he wasn't known for his consultative
or consensus building approach.
George Washington was the first President of the United States who
led the Continental Army to victory in the American Revolutionary
War against the Kingdom of Great Britain and saved the nation from
the threat of collapse during its most crucial time.
Mother Teresa was very humble and never cared about her own image,
a rare quality that could hardly be seen in any leader around the world.
1. Akio Morita
Morita co-founded Sony, a multi-billion dollar company. But the
company’s beginnings were not so rosy.
2. Bill Gates
Before building his empire, Gates started a business called Traf-O-Data
which went no-where and he dropped out of Harvard.
3. Colonel Sanders
Surprisingly, the Colonel’s famous secret chicken recipe was rejected over
a 1,000 times before a restaurant accepted it. He founded KFC in age of
4. Evan Williams
Before co-founding the social media giant Twitter, he founded a company
called Odeo. But Apple announced iTunes store, making Odeo obsolete.
5. Fred Smith
While studying at Yale University, Fred Smith presented a business idea to
his business management class that received a nearly failing grade. The
idea was for a parcel service that could deliver packages overnight. Smith
ignored the grade and founded FedEx.
6. Henry Ford
Ford’s first two car companies failed and left him broke. But that didn’t
stop him from founding Ford Motor Company.
7. Mark Cuban
Before making billions selling his company to Yahoo, Cuban failed at a
variety of jobs. He failed as a carpenter, as a cook, as a waiter.
8. Soichiro Honda
Honda initially applied for a job at Toyota as an engineer, but was turned
down. Being jobless, he started making scooters at home, which he sold
to neighbors. With the support of his family, he founded Honda.
9. Thomas Edison
Edison, one of the most prolific inventors in history , was told as a boy by
his teacher that he was too stupid to learn anything and suggested he go
into a field that did not require intelligence. He tried more than 9,000
experiments before he created the first successful light bulb.
10. Walt Disney
Disney was fired by an editor because, “he lacked imagination and had no
original ideas.” His first animation company went bankrupt and it’s said
that he was turned down hundreds of times when he sought financing for
Disney World. Now The Walt Disney company builds an entertainment
Be of the people
People usually identify with leaders from within. Because they believe
there is a “get me” feeling, When you lead by being part of the crowd.
Great leaders know that no one, including themselves, is better or worse.
Everyone brings their own value, and collectively there is power in that.
To be a great leader, avoid communicating over people’s heads. Instead,
communicate on the same level as everyone else.
Block and tackle
Great leaders defend, protect and help their team. They know their most
important job is to make everyone else’s job easier.
Believe in them
Forget trying to get the people to believe in you. Instead, get them to
believe in themselves. Let them know you believe they can do their job.
Not surprisingly there is a common thread that separates the world’s
best leaders from everyone else.
They don’t seek fame. Fame is merely a natural consequence of what
great leaders do.
They don’t fear criticism. Just like fame is of no importance.
They don’t make superstars. For great leaders, the hero is the team.
They are part of the team.
They kill “the cancer.” The best leaders know when something isn’t
working in the business it is their role to remove it immediately.
They ask ten times more questions than answers. Effective people “seek
to understand before they seek to be understood.”
Their “God” is the vision. Every great innovation that has ever happened,
first started with a vision and ultimately came to reality.