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Leaderhip in organisations

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  • 1. LEADERSHIP MAY BE DEFINED AS THE ART OF INFLUENCING & INSPIRING SUBORDINATES TO PERFORM THEIR DUTIES WILLINGLY, COPETENTLY & ENTHUSIASTICALLY TO ACHIEVE THE ORG. OBJECTIVES.
  • 2.  LEADERSHIP IS NOT AN ATTRIBUTE IN BUSINESS ALONE. IT IS REQUIRES IN OUR ALL FIELDS OF ACTIVITIES. IN FACT, ALL MANAGERS ARE BUSINESS LEADERS THOUGH MANAGEMENTS RELIES ON FORMAL POSITION POWER TO INFLUENCE PEOPLE, WHEREAS LEADERSHIP STEMS FROM SOCIAL INFLUENCE PROCESS.
  • 3.  ,IT IS IMPORTANT TO HAVE THE ELEMENT OF WILLINGNESS IN THE ABOVE DEFINATION. LEADERSHIP MAY BE DEFINED AS UNDER: L = F (f.g.w.s ). WHERE LEADERSHIP (L) IS A FUNCTION OF (F) OF f= follower, g= goal, w= measure of willingness, S= a given situation.
  • 4.  THE FORMAL LEADERSHIP OCCURS, WHEN A PERSON IS APPOINTED OR ELECTED AS AN AUTHORITY FIGURE. THE INFORMAL LEADERSHIP OCCURS WHEN A PERSON USES HIS INTERPERSONAL INFLUENCE IN A GROUP WITHOUT A DESIGNATED AUTHORITY OR POWER. THESE LEADERS EMERGE IN CERTAIN SITUATIONS, BECAUSE OF THEIR CHARM, INTELLIGENCE, SKILLS OR OTHER TRAITS.
  • 5.  RELIGIOUS LEADERS & CIVIC LEADERS FIT INTO THIS CATEGORY. SUCCESSFUL MANAGERS WHO EXERCISE THEIR GIVEN AUTHORITY IN A FORMAL WAY ARE ALSO CAPABLE OF EXERCISING INFORMAL LEADERSHIP RELATIONSHIPS WITH PEOPLE WITHIN & OUTSIDE THE ORGANISATIONS.
  • 6.  1. ENERGY & DRIVE. 2. PRESENTABILITY. 3. COOPERATIVENESS. 4. ENTHUSIASM. 5. PERSONALITY. 6. INITIATIVE. 7. INTELLIGENCE. 8. JUDGEMENT. 9. SELF-CONFIDENCE.
  • 7.  10. SOCIABILITY. 11. TACT & DIPLOMACY. 12. MORAL COURAGE & INTEGRITY. 13. WILL POWER & FLEXIBILITY. 14. EMOTIONAL STABILITY. 15. HUMAN-RELATIONS. 16. NEVER GIVE-UP APPROACH. 17. VISIONARY. 18. TEAM-BUILDER. 19. ASSERTIVENESS. 20. STAR PERFORMER
  • 8.  THE TRAIT THEORY IS PRIMARILY BASED ON THE TRADITIONAL APPROACH, WHICH DESCRIBES LEADERSHIP IN TERMS OF CERTAIN PERSONAL & SPECIAL CHARACTERISTICS. THIS IS NOT ACQUIRED BY KNOWLEDGE & TRAINING, BUT ARE CONSIDERED INHERITED. SOME OF THE INBORN TRAITS ARE CONSIDERED TO BE INTELLIGENCE,
  • 9.  UNDERSTANDING, PERCEPTION, HIGH MOTIVATION, SOCIO-ECONOMIC STATUS, INITIATIVE, MATURITY, NEED FOR ACTUALIZATION, SELF-ASSURANCE & INTERPERSONAL HUMAN BEHAVIOUR. AS PER STUDY OF STUDY OF JENNINGS, ‘’ FIFTY YEARS OF STUDY HAVE FAILED TO PRODUCE ONE PERSONALITY TRAIT THAT COULD DISCRIMINATE LEADERS & NON- LEADERS.’’
  • 10.  SOME OF THE WEAKNESSES OF TRAIT THEORY COULD BE INDICATED AS UNDER: 1. ALL TRAITS ARE NOT IDENTICAL WITH REGARD TO ESSENTIAL CHARACTERISICS. 2. SOME TRAITS COULD BE ACQUIRED BY TRAINING & MAY NOT BE INHERITED.
  • 11.  3. IT DOESNOT IDENTIFY, WHICH ARE IMPORTANT OR LESS-IMPORTANT FOR A SUCCESSFUL LEADER. 4. THE TRAITS REQUIRED TO ‘’ATTAIN’’ LEADERSHIP MAY NOT BE SAME TO ‘’ SUSTAIN’’ IT. 5. REASON FOR LEADERSHIP FAILURES. 6. THE MANY TRAITS FOUND IN LEADERS ARE ALSO FOUND IN FOLLOWERS.
  • 12.  7. IT IGNORES THE ENVIRONMENTAL FACTORS. 8. IT IS DIFFICULT TO DESCRIBE IN ABSOLUTE TERMS. FOR EXAMPLE: INTELLIGENCE COULD BE MEASURED BY IQ. 9. THE EXTENT & INFLUENCE OF TRAITS, DEPENDS UPON THE LEVEL OF LEADERSHIP IN ORGANISATION.
  • 13.  THIS REFLECTS THE INDIVIDUALS ACTS MORE THAN HIS TRAITS. THE LEADERSHIP EFFECTIVENESS IS INDICATED IN TERMS OF LEADER- SUBORDINATE INTERACTION & OUTCOME. RESEARCH CONDUCTED BY KATD, MACCOBY & MORSE INDICATES THAT LEADERSHIP BEHAVIOUR COULD BE DEFINED ALONG EMPLOYEE CENTRIC & PRODUCTION-CENTRIC DIMENSIONS.
  • 14.  FURTHER TO THIS STUDIES WERE CONDUCTED AT OHIO-STATE UNIVERSITY. IT INDICATES TWO-PARTICULAR FACTORS AFFECTING THE LEADERSHIP DIMENSION: A. CONSIDERATION: IT REFERS TO THE EXTENT THERE IS RAPPORT BETWEEN THE LEADER & THE GROUP, A MUTUAL WARMTH & TRUST, CONCERN FOR MEMBERS, PARTICIPATIVE MANAGEMENT.
  • 15.  B. INITIATING STRUCTURE: IT REFERS TO THE EXTENT A LEADER IS TASK- ORIENTED & HIS ABILITY & CONCERN IN UTILIZING RESOURCES & PERSONNEL AT OPTIMUM-LEVEL. IT INVOLVES CREATING AN ENVIRONMENT, SO THAT THE WORK OF THE GROUP IS ORGANISED, COORDINATED, SEQUENTIAL & ORGANISATIONALLY RELEVANT TO THE PEOPLE.
  • 16. HIGH HIGH LOW STRUCTURE STRUCTURE & AND HIGH HIGH CONSIDERATION CONSIDERATION LOW STRUCTURE HIGH STRUCTURE & LOW & LOWLOW CONSIDERATION CONSIDERATION(COMS) LOW HIGH (IS)
  • 17.  THUS A MANAGER WITH HIGH STRUCTURE & HIGH CONSIDERATION RATES USUALLY HIGH IN DIRECTING & CONTROLLING HIS SUBORDINATES & HAS A HIGH-LEVEL OF CONCERN & WARMTH TOWARDS THEIR EMPLOYEES. SUBORDINATES HAVE FEWER GRIEVANCES, MORE SATISFIED & STAY LONGER IN THE ORGANISATION.
  • 18.  THERE IS ALSO EVIDENCE THAT SUCH MANAGERS, WHO EXHIBITE HIGH-LEVEL OF BOTH CONSIDERTION & INITIATING STRUCTURE GENERATE HIGH LEVELS OF SUBORDINATE PERFORMANCE. BOTH THE DIMENSIONS ARE TANGIBLE & OBSERVABLE & DO ACCOUTS FOR THE LEADERSHIP BEHAVIOUR.
  • 19.  IT IS AN EXTENSION OF THE BEHAVIOURAL THEORY REPRESENTED BY MANAGERIAL GRID. IT WAS DEVELOPED BY ROBERT BLAKE & JANE MOUTON. THEY HAVE DEVELOPED TWO PRIMARY CONCERNS IN ORGANISATIONS, NAMELY, THE CONCERN FOR PRODUCTON & CONCERN FOR PEOPLE.
  • 20.  IT IS UNDERSTOOD THAT A HIGH CONCERN FOR PRODUCTION NECESSARY MEANT LOW CONCERN FOR PEOPLE. HOWEVER, THE GRID MODEL EMPHASISED ON INTEGRATING BOTH CONCERNS TO ACHIEVE THE ORG. OBJECTIVES & THEY ARE COMPLEMENTARY TO EACH OTHER.
  • 21.  ACCORDING TO RAO & NARAYANA,’’ THE CONCERN FOR PRODUCTION IS NOT LIMITED TO THINGS ONLY & CONCERN FOR PEOPLE CANNOT BE CONFINED TO NARROW CONSIDERATIONS OF INTERPERSONAL WARMTH & FRIEDLINESS. PRODUCTION CAN BE MEASURED IN TERMS OF CREATIVE IDEAS OF PEOPLE THAT TURN INTO USEFUL PRODUCTS, PROCESSES, PROCEDURES & EFFICIENCY ETC.
  • 22.  SIMILARILY, CONCERN FOR PEOPLE INDICATES THE DEGREE OF PERSONAL COMMITMENT TO THE WORK REQUIREMENTS ASSIGNED TO EACH PERSONS.:1. ACCOUTABILITY BASED ON TRUST.2. ABSENCE OF FEAR-PSYCHOSIS.3. SENSE OF JOB-SECURITY.4. HEALTHY WORKING CLIMATE.
  • 23.  THE MANAGEMENT GRID IS BUILT ON TWO-AXIS, ONE REPRESENTING THE ‘’PEOPLE’’ & OTHER REPRESENTING THE ‘’ TASK.’’ BOTH THE HORIZONTAL & VERTICAL AXIS ARE TREATED IN A SCALE FROM (1-9), WHERE (1) REPRESENTS THE LEAST INVOLVEMENT & (9) REPRESENTS MAXIMUM INVOLVEMENT.
  • 24.  THE MANAGERIAL GRID DIAGRAM AS SHOWN IN THE NEXT SLIDE COULD BE INTERPRETED AS UNDER: 1. COORDINATES(1,1): THIS REPRESENT AN IMPOVERISHED MANAGEMENT & THE MANAGER MAKES MINIMUM EFFORTS TO GET THE WORK DONE. 2. COORDINATES(9,1): EXCELLENT WORK DESIGN, WELL-ESTABLISHED PROCEDURES & EFFICIENT OPERATIONS.
  • 25. 9 (1,9) (9,9) 8ConcernFor 7people 6 5 (5,5) 4 3 2 1 (1,1) (9,1) Concern for production 1 2 3 4 5 6 7 8 9
  • 26.  3. COORDINATES(1,9): MEANINGFUL RELATIONSHIP WITH PEOPLE. FRIENDLY ATMOSPHERE & HIGH MORALE. POOR WORK-DESIGN. 4. COORDINATES(9,9): ULTIMATE IN MANAGERIAL EFFICIENCY. THOROUGHLY DEDICATED PEOPLE. POPULARLY KNOWN FOR TEAM-WORK. RELATIONSHIPS BASED ON TRUST & RESPECT FOR EACH OTHER.
  • 27.  5. COORDINATES(5,5): KNOWN FOR MIDDLE – OF-ROAD MANAGEMENT STYLE. IT IS CONCERNED WITH BALANCING THE NECESSITY TO GET THE WORK DONE, WHILE MAINTAINING THE EMPLOYEES AT AN APPRECIABLE LEVEL. THE GOAL IS TO ACHIEVE ADEQUATE ORG. PERFORMANCE.
  • 28.  THE MANAGERIAL GRID PROVIDES INDICATIONS OF THE HEALTH OF THE ORGANISATION & THE ABILITY OF MANAGERS. THE MODEL INDICATES THAT (9,9) IS THE MOST EFFECTIVE STYLE OF MGT. AS SUCH, MGT. DO APPROACH FOR ACHIEVING THIS STYLE AT THE EARLIEST. THOUGH IT LACKS EMPIRICAL EVIDENCES.
  • 29.  THE ANALYSIS OF LEADERSHIP INVOLVES NOT THE INDIVIDUAL TRAITS & BEHAVIOUR BUT ALSO FOCUSES ON THE SITUATION. THE LEADERSHIP BEHAVIOUR IS USED IN COMBINATION WITH WORK-GROUP CONTINGENCIES TO PREDICT PERFORMANCE OUTCOMES. THE EFFECTIVENESS OF LEADERSHIP BEHAVIOUR IS CONTINGENT UPON THE DEMANDS OF THE SITUATION.
  • 30.  DIFFEENT TYPES OF SITUATIONS IN WHICH LEADERSHIP IS EXERCISED DEMAND DIFFERENT CHARACTERISTICS & BEHAVIOURS, BECAUSE EACH TYPE OF LEADER FACES DIFFERENT SITUATIONS. SIMILARILY, A SUCCESSFUL LEADER UNDER ONE SET OF CIRCUMSTANCES MAY BE A FAILURE UNDER A DIFFERENT SET OF CONDITIONS.
  • 31. LEADER CHARATERISTICS LEADER PERF. SUBORDINATE CHARATS. BEH. OUTCOME GROUP CHARATS. ORG. STRUCTURE CHARATS.
  • 32.  FOR EXAMPLE: WINSTON CHURCHILL WAS CONSIDERED A VERY SUCCESSFUL PRIME MINISTER & EFFECTIVE LEADER OF ENGLAND DURING WORLD-WAR –II. IT IS CONSIDERED AS A SITUATIONAL APPROACH THEORY OF LEADERSHIP IN TERMS OF HIS ABILITY TO HANDLE THE SITUATION, BASED ON LEADERSHIP SKILLS.
  • 33.  A HYPOTHETICAL SITUATION MAY BE CONSIDERED, WHICH IS DEVELOPED BY ROBERT A. BARON: THE TOP EXECUTIVES OF A LARGE CORPORATION WERE GOING IN THEIR LIMOUSINE TO MEET THE PRESIDENT OF ANOTHER LARGE COMPANY AT SOME DISTANCE. ON THE THEIR LIMOUSINE BREAKS DOWN.
  • 34.  WHO TOOK THE CHARGE OF THE SITUATION? GUESS? DRIVER OF THE CAR. THE LIMOUSINE STARED & HE GIVE ORDERS TO THESE TOP ECHELONS OF THE ORGANISATION, WHO COMPLIED. THEY ARRIVED AT THE MEETING & THE DRIVER SURRENDERS HIS AUTHORITY & BECOMES SOBORDINATE ONCE AGAIN.
  • 35.  THE EXAMPLE SUGGESTS THAT IN A GIVEN SITUATION, THE PERSON MOST LIKELY TO ACT AS A LEADER IS ONE WHO IS MOST COMPETENT TO HANDLE SUCH SITUATIONS. ACCORDING TO WALLACE, THERE ARE FOUR CONTINGENCY VARIABLES: 1. LEADERS CHARACTERISTICS. 2. SUB. CHARACTERISTICS. 3. GROUP CHARACTERISTICS. 4. ORG. STRUCTURE CHARACTS.
  • 36.  THESE ARE THREE VARIABLES: 1. LEADER-MEMBER RELATIONS. 2. TASK-STRUCTURE & 3. LEADER’S POSITIONAL POWER.
  • 37.  THIS RELATIOSHIP REFLECTS THE EXTENT TO WHICH FOLLOWERS HAVE CONFIDENCE & TRUST IN THEIR LEADERSHIP ABILITIES. A SITUATION IN WHICH THE LEADER- MEMBER ARE RELATIVELY GOOD WITH MUTUAL TRUST & OPEN COMMUNICATIONS, IS MUCH EASIER TO MANAGE THAN A SITUATION WHERE RELATIONS ARE STRAINED.
  • 38.  IT MEASURES THE EXTENT TO WHICH THE TASK PERFORMED BY THE SUBORDINATES ARE SPECIFIED & STRUCTURED. IT INVOLVES CLARITY OF GOALS, ESTABLISHED STEPS TO COMPLETE THE TASK. THE CHANCES OF AMBIGUITY IS MINIMISED, AS TO HOW THE JOBS ARE TO BE PERFORMED.
  • 39.  IT REFLECTS THE LEGITIMATE POWER INHERENT IN THE LEADER’S ORG. POSITIONS. IT REFERS TO THE DEGREE TO WHICH A LEADER CAN MAKE DECISIONS ABOUT ALLOCATION OF RESOURCES, REWARDS & SANCTIONS. LOW POSITION POWER INDICATES LIMITED AUTHORITY. A POSITION POWER GIVES THE RIGHTS TO CONTROL THE SITUATIONS.
  • 40.  THE MOST FAVOURABLE SITUATION FOR A LEADER WOULD BE INDICATED AS UNDER: 1. GROUP RELATIONS ARE POSITIVE. 2. TASK HIGHLY STRUCTURED. 3. LEADER’S WITH SUBSTANTIAL POWER.
  • 41.  THE LEADERSHIP MODEL PROPOSED BY FIEDLER’S MEASURES THE LEADERSHIP ORIENTATION & EFFECTIVENESS WITH A DIFFERENTIAL ATTITUDE SCALE WHICH MEASURES THE LEADERSHIP ESTEEM FOR THE LEAST PREFERED CO- WORKER.(LPC). THE EXHIBITS A SITUATION WHERE A LEADER WOULD LIKE TO WORK WITH THE PERSON UNDER CONSIDERATION.
  • 42.  FOR EXAMPLE: A LEADER WOULD DESCRIBE HIS LPC IN A FAVOURABLE WAY WITH REGARD TO FACTORS LIKE, FRIENDSHIP, WARMH, HELPFULNESS & ENTHUSIASM ETC. IN GENERAL, A HIGH LPC LEADER IS MORE RELATONSHIP-ORIENTED THAN A LOW-SCORE LEADER IS MORE TASK-ORIENTED.
  • 43.  CONTINGENCY THEORY OF LEADERSHIP ATTEMPTS TO ACCOUT SYSTEMATICALLY FOR ANY RELATIONSHIP BETWEEN SITUATIONAL FACTORS & LEADERSHIP EFECTIVENESS. FRED FIEDLER WAS ONE THE EARLIEST PROPONENTS OF LEADERSHIP MODEL, WHICH ACCOUTED FOR SITUATIONAL FACTORS.
  • 44.  A HIGH LPC LEADER IS MOST EFFECTIVE WHEN THE SITUATION IS REASONBLY STABLE & REQUIRES ONLY MODERATE DEGREE OF CONTROL. THE EFFECTIVENESS DEPENDS ON THE MOTIVATIONAL LEVEL OF THE GROUP MEMBER’S & FOCUSSED TOWARDS GOAL OF THE ORG. A LOW LPC LEADER WOULD EXERT MORE PRESSURE ON THEIR SUB. FOR GOAL ACHIEVEMENTS.( BASED ON RULES & PROCEDURES).
  • 45.  HE SITUATION CAN BE MADE MORE FAVOURABLE BY ENHANCING RELATIONS WITH SUBS., BY CHANGING THE TASK STRUCTURE & GAINING SOME FORMAL POWER WHICH COULD BE USED TO INDUCE A MORE CONDUCIVE WORK-SETTINGS BASED ON PERSONAL LEADERSHIP STYLE. TRG. PROG. ON ‘’ LEADERS MATCH’, WAS DEVELOPED BY FIEDLERS.
  • 46.  THE SPECIFIC LEADERSHIP STYLE, WHICH IS MOST EFFECTIVE IS CONTINGENT UPON TWO- SITUATIONAL FACTORS: 1. CHARCTERISTICS OF SUBORDINATES: THE LEADERSHIP STYLE SELECTED BY THE LEADER SHOULD BE COMPATIBLE WITH THE ABILITY, EXPERIENCE, NEEDS, MOTIVATIONS & PERSONALITIES OF THE FOLLOWERS.
  • 47.  FOR EXAMPLE: SUBS. WHO PERCEIVE THEIR OWN ABILITY TO BE HIGH WOULD NOT APPRECIATE A DIRECTIVE APPROACH WOULD BE MOTIVATED BY A SUPPORTIVE LEADERSHIP STYLE. SIMILARILY, THE PEOPLE WHO BELIEVE THAT WHAT HAPPENS TO THEM IS A RESULT OF THEIR OWN BEHAVIOUR.
  • 48.  SUCH PEOPLE PREFER THE PARTICIPATIVE LEADRSHIP STYLE. ON THE OTHERHAND, PEOPLE BELIEVING IN CHANCE FACTORS OR LUCK, PREFER DIRECTIVE LEADERSHIP.
  • 49.  THEY ARE BEYOND THE CONTROL OF SUBS. BUT ARE SIGNIFICANT IN AFFECTING THEIR SATISFACTION OR ABILITY TO PERFORM EFFICIENTLY. THESE INCLUDES THE STRUCTURE OF WORK-TASKS, OPENNESS IN COMUNICATION, EXTENT OF FEEDBACK, FORMAL AUTHORITY SYSTEM & THE NATURE OF INTERACTION WITHIN THE GROUP.
  • 50.  IF THE TASK IS OF ROUTINE NATURE & WELL-STRUCTURED, THE ORG. AUTHORITY IS FORMAL & GROUP NORMS ARE RESPECTED & IN SUCH CASES DIRECTIVE LEADERSHIP WOULD BE UNDESIRABLE. AS SUCH, IT IS SUGG.ESTED THAT THE LEADERSHIP, WHICH MOTIVATES SUBS. TO COPE WITH THE ENVIRONMENTAL UNCERTAINITIES.
  • 51.  IT IS CLASSIFIED ACCORDING TO THE PHILOSOPHY OF THE LEDERS. THE ‘’STYLE’’, IS RELATIVELY ENDURING SET OF BEHVIOURS, WHICH IS THE CHARACTERISTIC OF THE INDIVIDUAL, REGARDLESS OF THE SITUATION. THE FOLLOWING ARE THE SPECIFIC LEADERSHIP STYLES:
  • 52.  1. AUTOCRATIC OR DICTATORIAL LEADERSHIP. 2. PARTICIPATIVE OR DEMOCRATIC LEADERSHIP. 3. LASSEZ-FAIRE OR FREE-REIN LEADERSHIP. 4. CHARISMATIC. 5. TRANSFORMATIONAL LEADERSHIP.
  • 53.  SUCH LEADERSHIP ASSUMES FULL RESPONSIBILITY FOR ALL ACTIONS & THE DECISION-MAKING REMAINS HIGHLY CENTRALISED. THE SUBS. ARE REQUIRED TO IMPLEMENT INSTRUCTIONS OF THE LEADERS WITHOUT QUESTIONS. THEY ARE ENTIRELY DEPENDED ON THE LEADERS & OUTPUTS SUFFERS IN THE ABSENCE OF LEADERS.
  • 54.  IT RANGES FROM A VERY TOUGH & DICTATORIAL TO PATERNALISTIC APPROACH, WHICH IS EITHER THREAT & PUNISHMENT OR APPRECIATION & REWARDS. IN A HIGHLY AUTOCRATIC SITUATIONS, THE SUBS. DEVELOP A SENSE OF INSECURITY, FRUSTRATION, LOW-MORALE & THEY INDUCE TO AVOID RESPONSIBILITY, INITIATIVE & INNOVATIVE BEHAVIOUR.
  • 55.  IN SUCH LEADERSHIP SUBS, ARE CONSULTED & FEEDBACK TAKEN, BEFORE A DECISION IS TAKEN THE LEADER. THE LEADER’S JOB IS PRIMARILY MODERATION, EVEN THOUGH HE MAKES THE FINAL DECISION. THE MANAGEMENT RECOGNISES THAT THE SOBS. ARE EQUIPPED WITH TALENTS & ABILITIES & CAPABLE OF DEMONSTRATE INITIATIVE & CREATIVITY.
  • 56.  THIS ENSURES BETTER MANAGEMENT- LABOUR RELATIONS, HIGHER MORALE & GREATER JOB-SATISFACTION. THIS TYPE OF LEADERSHIP IS SPECIALLY EFFECTIVE WHEN THE WORK-FORCE IS EXPERIENCED & DEDICATED & ABLE TO WORK INDEPENDENTLY WITH LEAST DIRECTIVE. THIS ENSURES PROPER GROWTH & DVELOPMENT OF ORG. & PERSONALITY.
  • 57.  THE FEASIBILITY & USEFULNESS OF THE PARTICIPATIVE DECISION-MAKING STYLE IS DEPENDENT ON THE FOLLOWING FACTORS: 1. IT IS TIME-CONSUMING PROCESS & THERE SHOULD BE NO URGENCY OF DECISION. 2. THE COST OF PARTICIPATION OF SUBS. SHOULD NOT BE MORE THAN THE BENEFITS DERIVED FROM THEM.
  • 58.  3. THE INPUTS FROM THE SUBS. SHOULD BE FREE FROM ANY FEAR OF REPERCUSSIONS. 4. THE PARTICIPATION OF SUBS. SHOULD NOT BE PERCEIVED AS THREAT TO THE FORMAL AUTHORITY. 5. CONFIDENTIALITY OF INFORMATION BE MAINTAINED BY THEM.
  • 59.  THIS TYPE OF LEADERSHIP IS FOCUSSED ON ETHOS OF THE LEADER’S PERSONALITY & DOESNOT GIVE DIRECTION, BUT DELEGATES THE AUTHORITY TO THE SUBS. SO THAT CAN PLAN, MOTIVATE & CONTROL OTHERWISE. THE LEADER ACTS AS A LIAISON BETWEEN THE GROUP & THE OUTSIDE ELEMENTS & SUPPLIES MATERIALS & INFORMATION TO THE GROUP MEMBERS.
  • 60.  THE SUBS. DEVELOPS THEIR OWN TECHNIQUES FOR ACCOMPLISHING GOALS WITHIN THE GENERALISED ORG. POLICIES & OBJECTIVES. THIS TYPE OF LEADERSHIP IS MOST EFFECTIVE WHEN THE GROUP MEMBER’S ARE HIGHLY INTELLIGENT & ARE FULLY AWARE OF THEIR ROLES & RESPONSIBILITIES. THEY HAVE THE REQUISITE SKILLS & KNOWLEDGE TO ACCOMLISH THESE.
  • 61.  THESE TYPE OF LEADERSHIP WOULD BE VISUALISED IN RESEARCH LABS. IT CREATES AN ENVIRONMENT OF FREEDOM & INDIVUALITY & AS WELL AS TEAM-SPIRIT. IT IS CREATIVE & WORKS IN INFORMAL ENVIRONMENT. PEOPLE ARE HIGHLY MOTIVATE & ACHIEVEMENT-ORIENTED. PROBLEMS MAY ARISE DUE TO DISORGANISED ACTIVITIES & FRUSTRATION.
  • 62. ONE OF THE MOST SUCCESSFUL DISCOUNT DEPARTMENT STORES AT AMERICA IS KNOWN AS WAL-MART STORES & IS NAMED AFTER ITS FOUNDER SAM WALTON.BECAUSE OF THE PHENOMENAL SUCCESS OF THESE STORES, SAM WALTON BECAME THE RICHEST MAN IN AMERICA.ALSO, BECAUSE OF HIS LEADERSHIP, THE STORES HAVE ENJOYED CONTINUOUS GROWTH & EXPANSION.
  • 63.  AS SUCH, BY MID-EIGHTIES THE CHAIN HAD OVER 700 STORES & INCREASING AT THE RATE OF AN ADDITIONAL 100-STORES PER YEAR. IT SALES INCREASED ANNUALLY BY OVER 35%, & THE PROFITS HAVE SOARED OVER 40% PER YEAR, EVERY YEAR SINCE 1975. SAM WALTON, UNTIL HE DIED IN 1992, TOOK PERSONAL INTEREST IN HIS EMPLOYEES.
  • 64.  HIS MANAGERIAL PHILOSOPHY WAS TO GET THE RIGHT PEOPLE IN THE RIGHT PLACES & THEN GIVE FREEDOM TO BE INNOVATIVE TO ACCOMPLISH THEIR TASKS. HE CALLED HIS EMPLOYEES AS ‘’ASSOCIATES’’ & TREATED THEM AS ASSOCIATES. AS PER THE COMPANY’S POLICIES, ALL ASSOCIATES ARE ELIGIBLE FOR PROFIT-SHARING PLANS & MOTIVATES THEM.
  • 65.  THE MANAGERS OF THE STORES ARE REQUIRED & ENCOURAGED TO MEET THEIR EMPLOYEES IN A SOCIAL SETTINGS TO DISCUSS THEIR CONCERNS & THE ISSUES OF ORG. CONTEXT & INTEREST & MAKE THEM FEEL THAT THEIR INPUTS ARE TAKEN SERIOUSLY BY THE MANAGEMENT SAM WALTON HIMSELF LED A VERY SIMPLE LIFE.
  • 66.  HE DID NOT EXHIBIT ANY AURA ABOUT HIMSELF, GIVING THE EMPLOYEES A FEELING THAT HE WAS ONE OF THEM. HE & HIS EXECUTIVES REGULARLY TRAVELLED IN COMPANY, AS THE STORES WERE SITUATED AT VARIOUS SITES ACROSS THE COUNTRY. HE MET WITH HIS SALES CLERKS, STOCK-BOYS & SALES MANAGERS TO FIND OUT WHICH ITEMS WERE POPULAR.
  • 67.  HE KNEW MOST OF THEM BY THEIR FIRST NAMES & ADDRESSED THEM SO. HE INITIATED ‘’ THE EMPLOYEES OF THE MONTH’’, IN ALL CATEGORIES & CREATED HONOUR ROLES FOR EACH SUCCESSFUL STORES. THIS CREATED INNER COMPETITION REQUIRING EXTRA EFFORT TO IMPROVE SALES & SERVICES.
  • 68.  HE INITIATED ‘’ EMPLOYEES OF THE MONTH’’, IN ALL CATEGORIES & CREATED HONOUR ROLES FOR MORE SUCCESSFUL STORES. THIS CREATED A SENSE OF INNER COMPETITION REQUIRING EXTRA EFFORT TO IMPROVE SALE & SERVICE. THIS POLICY GAINED HIGH RESPECT FOR HIM AS A LEADER.
  • 69.  THE ADMINSTATION OF THE ORGANISATION WAS VERY COST- CONSCIOUS. IT ONLY SPENT ABOUT 2% OF SALES FOR GENERAL ADMINSTRATION EXPENSES. IT SHOPS FOR SUPPLIERS AT BARGAIN PRICES ALL OVER THE WORLD & BUILT GIANT WAREHOUSES AROUND THE COUNTRY.
  • 70.  THIS HELPED IN BETTER DELIVERY SYSTEM & REDUCED INVENTORIES AT THEIR RETAIL STORES. EACH STORES PREPARES A MONTHLY FINANCIAL REPORT WHICH COULD BE STUDIED ON LINE TO REVIEW THE COSTING PATTERNS. THE COST SAVINGS ARE PASSED ON TO THE CUSTOMERS & IN TURN GENERATES CUSTOMER LOYALTY.
  • 71.  WAL-MART SLOGAN OF ‘’ QUALITY YOU NEED, PRICE YOU WANT’’. WAL-MART WITH MORE THAN 2000 STORES AT PRESENT WAS FACED WITH CUT-THROAT COMPETITION FROM SIMILAR CHAIN OF DISCOUNT STORES AS K-MART. HOWEVER, SAM WALTON DID NOT WORRY ABOUT THE COMPETITION, BECAUSE HE FELT THAT HIS PEOPLE-
  • 72.  ORINTED POLICY & PHILOSOPHY OF OPERATIONS & COST-CUTTING EFFORTS, WITHOUT DILUTING THE QUALITY OF MERCHANDISE WOULD ALWAYS MEET THE CMPETITION AHEAD-ON.
  • 73.  QUESTION(1): HOW WOULD YOU DESCRIBE SAM WALTON AS AN EFFECTIVE-LEADER? QUESTION(2): WHAT FACTORS, OTHER THAN THE LEADERSHIP STYLE CONTRIBUTED TOWARDS THE SURVIVAL & GROWTH OF THE ORGANISATION? JUSTIFY?