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 & LOW
LOW 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)
8
Concern
For 7
people
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?