Concept of leadership, theories..

1. Leadership
Presented by: Ashutosh Verma

2. “A leader lives in each of us”

3. Who is a Leader?
A Leader is someone in authority to
lead others to accomplish a goal(s).
A leader needs to be able to motivate
others to accomplish a goal(s) while at
the same time encourage others to
work toward their own professional
goals.

4. Leadership Defined
“Directing the activities of a group toward a
shared goal"
“The process of influencing the activities of an
organized group toward goal achievement"
“The process of making sense of what people are
doing together so that people will understand and be
committed"
“To influence, motivate, and enable others to
contribute toward the effectiveness and success of
the organization"

5. Leadership Vs. Management
“Management is about coping with complexity. . . . Without
good management, complex enterprises tend to become
chaotic in ways that threaten their very existence.
Good management brings a degree of order and consistency
to key dimensions like the quality and profitability of
products.”
“Leadership, by
contrast, is about coping with change. . . .
More change always demands more leadership

6. Foundations For Effective Leadership
Leadership is one of the four functions
of management.

7. Foundations For Effective Leadership
 Power
 the ability to get others to do what you want them to do
 Reward Power
 The capacity to offer something of value as a means of influencing other
people
 Coercive Power
 The capacity to punish or withhold positive outcomes as a means of
influencing other people.
 Legitimate Power
 The capacity to influence other people by virtue of formal authority or
the rights of office.
 Expert Power
 The capacity to influence other people by virtue of specialized
knowledge.
 Referent Power
 The capacity to influence other people because of their desire to identify
personally with you

8. Foundations For Effective Leadership
Managerial Power = Position Power + Personal Power
 Power of the POSITION:
 Based on things managers can offer to others.
 Rewards: "If you do what I ask, I'll give you a reward."
 Coercion: "If you don't do what I ask, I'll punish you."
 Legitimacy: "Because I am the boss; you must do as I ask."
 Power of the PERSON:
 Based on how managers are viewed by others.
 Expertise—as a source of special knowledge and
 information.
 Reference—as a person with whom others like
 to identify.

9. Leadership Styles
 Leadership Style
 The recurring pattern of behaviors exhibited by a
leader
 Autocratic Style
 Acts in unilateral command and control fashion
 Paternalistic Style
 Consults people over tasks
 Democratic Style
 Encourages participation with an emphasis on both
task accomplishments and development of people
 Laissez-faire Style
 Is low on both tasks and people

10. Leadership Styles
Autocratic
 Authoritarian OR Leader makes decisions
without reference to anyone else
 Works well if you don’t have much time to
accomplish goals or if employees are well
motivated.
 Generally, this style is not a good way to get
the best performance from a team.
 High degree of dependency on the leader
 Can create de-motivation and alienation of
staff
 May be valuable in some types of business
where decisions need to be made quickly
and decisively

11. Leadership Styles
Paternalistic:
Leader acts as a „father figure‟
Paternalistic leader makes decision
but may consult
Believes in the need to support staff

12. Leadership Styles
Democratic:
 Participative style
 The leader involves one or more
employees in the decision making
process (to determine what to do and
how to do it).
 Leader maintains the final decision
making authority.
 Allows everyone to be part of a team—
everyone feels that they have
participated and contributed.
 Encourages participation, delegates
wisely, values group discussion.
 Motivates by empowering members to
direct themselves and guides w/a loose
reign.

13. Leadership Styles
Positive
May help motivation and involvement
Workers feel ownership of the firm and its
ideas
Improves the sharing of ideas and
experiences within the business
Negative
Can delay decision making
Everything is a matter of group discussion
and decision—doesn’t really lead.

14. Leadership Styles
Laissez-Faire:
 Free Reign
 Leader allows employees/students to
make the decisions.
 Leader is still responsible for the
decisions.
 Employees/students analyze the
situation and determine what needs to
be done and how to do it. Leader sets
priorities and delegates.
 Leader has little control. Team has little
direction or motivation.

15. Theories of Leadership
 Trait theories
Traits are “distinctive, internal qualities or
characteristics of an individual such as physical
characteristics, personality, skills abilities and social
factors”
Based on these qualities Trait theory identify and
compare the:
a) Traits of leaders with those of non leaders
b) Traits of effective leaders with that of ineffective
leaders.

16.  Trait theories:
 Is there a set of characteristics
that determine a good leader?
 Personality?
 Dominance and personal presence?
 Charisma?
 Self confidence?
 Achievement?
 Ability to formulate a clear vision?

17. Theories of Leadership
 As per the Trait theory , the general
presumption is “ Leaders are Born and Not
made”
 It is based on “ Great Man theory” which
asserts that people who possess certain
physical and psychological characteristics
become good leaders.
 This theory however has not proved to be
true.

18. Behavioural Theories of Leadership
 Failure of the Trait theories to differentiate successful leaders from
unsuccessful ones led to the emergence of behavioral theories.
 These theories emphasize on what the leaders do, rather than
what the leaders are.
 While dealing with subordinates the leaders adopt the styles
based on leader behavior:
 Task-Oriented : Getting work done through employees without
focusing on their development
 Employee Oriented: Getting work done through friendly behavior
and participative decision making.

19. Behavioural Theories of Leadership
a. Assumption1 of this theory is “leader are not completely in
born, but also can be acquired from learning and experience”
b. Assumption2 of this theory is “Specific behavior differentiates
leaders from non leader”
c. This theory conduct two researches:
1. Ohio Studies at Ohio state University,
USA
2. Michigan Studies at University of
Michigan during 1945-47

20. Ohio state studies of Leadership
 Ohio state university conducted a research to identify leader
behavior.
 Two dimensions of leader behavior were identified:
a) Consideration : “Behavior indicating friendship, mutual trust,
respect and warmth in the relationship between leader and
his staff”
it can be termed as “ Employee oriented behavior”
a) initiating structure : It Is where the leader is focused on
establishing well defined patterns of organization and
channels of communication”
it can be termed as “ Production oriented Behaviour”

21. OHIO STUDIES:LEADERSHIP
HIGH
HIGH HIGH
CONSIDERATION CONSIDERATION
CONSIDERATION AND LOW AND HIGH
(RELATIONSHIP
STRUCTURE STRUCTURE
BEHAVIOUR)
LOW LOW
CONSIDERATION CONSIDERATION
AND LOW AND HIGH
STRUCTURE STRUCTURE
INITIATING STRUCTURE (TASK BEHAVIOUR)
LOW HIGH

22. OHIO STUDIES:LEADERSHIP (cntnd)
 The results revealed that the leaders depicted neither of the two
behaviors on single continuum.
 None of the four leadership styles were considered to be Best.
 It was generally felt that in military organizations, leaders
ranking high in initiating structure were more successful.
 in business, leaders with more consideration were successful.
 the style that the leaders adopt is normally what the
subordinates want them to adopt.

23. Michigan studies
 In these studies two types of leaders were identified:
a) Employee- Centered Behavior: these managers accomplish the
group goals through employees participation.
a) Job –Centered Behavior: These managers accomplish goals
through identification of task, division into units and control of
employee activities.
Results:
 Effective leaders invite workers participation in decision
making process.
 The group which produced more had leaders with employee
centered approach than production centered approach.

24. The managerial grid theory
 Developed by Robert Blake and Jane Mouton in 1960‟s.
 According to them , the leadership style i.e. employee oriented
or production oriented depends on where the Leader positions
himself on the managerial grid.
 In this grid: horizontal axis represents leaders concern for
production, and vertical represents concern for people.

25. The managerial grid theory :-
HIGH
9 1.9 9.9
(country club) (TEAM)
8
7
6 5.5
5 (MIDDLE OF THE ROAD)
CONCERN
FOR THE 4
PEOPLE
3
2 1.1 9.1
1 (IMPROVERISHED) (TASK)
1 2 3 4 5 6 7 8 9
CONCERN FOR
LOW PRODUCTION HIGH

26. Based on the managerial Grid five leadership styles can be
adopted with varying degrees of concern for people and task:
 1.1 ( impoverished Management) : Here the leader has low
concern for people and production. It represents the laissez Faire
management style.
 1.9 ( Country Club Management) : It represents Low concern for
production and high concern for People. Here the leader shows
concern, love affection and motivates the employees to
accomplish group goals.
 9.1 ( Task Management) : Here the leader has High concern for
production and less for people. Represents the Autocratic style of
management.
 5.5 ( Middle of Road) : This styles of leadership satisfies both
organizational and human needs through moderate concern for
people and production.
 9.9 (Team) : This is the most effective style of leadership where
the leaders show maximum concern for people and the task.

27. Rensis Likert system of management
 Likert studied the leadership styles by studying leader
behaviour in business and non –business organizations.
Four styles of leadership emerged:
System 1 Exploitative – Authoritative
“ This style of leadership aims at production maximization and
ignores the human aspect of organizational behavior”
System 2 Benevolent – Authoritative
“This system of leadership is an improvement over system 1.
Although it aims at production maximization but with a friendly
approach towards subordinates”

28. Rensis Likert system of management
System 3 Consultative – Authoritative
“ It is an improvement over the previous system. Although the important
decisions are taken at the top level but operating decisions are taken by
lower level managers”
 System 4 Participative – Democratic
“ This system represents optimum situation for the management or
leadership style. Leaders extensively interact with the subordinates and
involve them fully in the goal setting process.

29. Contingency Models
Fiedler’s Model: effective leadership is
contingent on both the characteristics of the
leader and the situation.
 Leader style: the enduring, characteristic approach to
leadership a manager uses.
 Relationship-oriented: concerned with developing good
relations with workers.
 Task-oriented: concerned that workers perform so the job gets
done.

30. Fiedler’s Model
 Situation characteristic: how favorable a
given situation is for leading to occur.
 Leader-member relations: determines how much
workers like and trust their leader.
 Task structure: extent to which workers tasks are
clear-cut.
 Clear issues make a situation favorable for leadership.
 Position Power: amount of legitimate, reward, &
coercive power a leader has due to their position.
 When positional power is strong, leadership opportunity
becomes more favorable.

31. Fiedler’s Contingency Model
Leader-
Member
Relations GOOD POOR
Task
HIGH LO W HIGH LOW
Structure
Position S W S W S W S W
Power
Kinds of I II III IV V VI VII VIII
Leadership Very Very
Situations Favorable Unfavorable
Relationship-oriented managers most effective in IV, V, VI, VII.
Task-oriented managers most effective in I, II, III or VIII.

32. PATH GOAL THEORY
a. The path goal theory developed by Robert House.
a. The path goal theory founded on the belief that it is
the Leader’s job to assist followers in attaining
their goals and to provide necessary direction or
support to ensure that their goals are compatible
with the overall objective of the group or
organization.

33. Path-Goal Theory

34. Leadership Behaviors
a. Directive leadership :- leader gives instructions, expectations,
time lines, rewards norms, clarify the rules and regulation as
applicable and monitor their performance
b. Supportive Leadership :- leader is friendly and approachable,
attends to the well being of subordinates, and treats everyone as
equals.
c. Participative Leadership :- leader invites subordinates to give
ideas, share opinions and integrates their suggestions into the
decision making process.
d.Achievement-Oriented Leadership :- leader challenges
subordinates to perform at the highest level possible. Leader has
high standards of excellence and seeks continuous improvement.

35. How Does Path-Goal Theory Work?
a. The leader‟s job is to help subordinates
reach their goals by directing, guiding,
and coaching them along the way
b. Leaders must evaluate task and
subordinate characteristics and adapt
leadership style to these
c. The theory suggests which style is most
appropriate for specific characteristics

36. Hersey and Blanchard’s situational Theory
 This theory relates leadership style to situation and maturity of
employees.
 It assumes that as the maturity level increases, leadership style
also varies.
 The theory divides the maturity level into following:
M1: Low level of maturity
M2: & M3 : Moderate level of maturity
M4: High level of maturity
Relationship between the leadership behavior and maturity
level of employees gives rise to four styles of leadership:
 L1 style (Telling)
 L2 style (Selling)
 L3 style (Participating)
 L4 style (Delegating)

37. Hersey and Blanchard’s situational Theory
(HIGH) PARTICIPATION
SELLING
RELATIONSHIP
BEHAVIOUR
TELLING
DELEGATION
(LOW) TASK (HIGH)
BEHAVIOUR
(LOW)
HIGH MODERATE LOW
MATURITY
LEVEL M4 M2 & M3 M1

38. L1 style (Telling) :
•This style deals with people with low level of maturity.
•They do not take responsibility for a particular task
• Leaders are task oriented and less relationship oriented in their behavior.
•L2 style ( Selling)
• Here although the maturity level of people gets increased from M1 to M2.
• They are not skilled to do the tasks.
• The leader focuses on high task orientation as well as high relationship
oriented behavior.
•L3 style (participating )
• Here the employees have the skill, knowledge and competence to handle the
jobs on their own.
• The leader has high relationship and low task behavior.
•L4 style ( Delegating)
• High level of maturity is shown by the employees (M4)
• The employees are ready, able and willing to take responsibilities with
respect to their jobs.
• The leadership style is delegating where the job is delegated to the workers
to be done on their own.

39. Transformational Leadership
 Started with von Pierer, CEO of Siemens, and
allows dramatic improvements in management
effectiveness.
 Transformational managers:
 Make subordinates aware of how important their
jobs are by providing feedback to the worker.
 Make subordinates aware of their own need for
personal growth and development.
Empowerment of workers, added training help.
 Motivate workers to work for the good of the
organization, not just themselves.

40. Transformational Leaders
 Transformational leaders are charismatic and
have a vision of how good things can be.
 They are excited and clearly communicate this to
subordinates.
 Transformational leaders openly share
information with workers.
 Everyone is aware of problems and the need for
change.
 Empowers workers to help with solutions.
 Transformational leaders engage in
development of workers.
 Manager works hard to help them build skills.

41. Transactional Leadership
 Involves managers using the reward and
coercive power to encourage high
performance.
 Managers who push subordinates to
change but do not seem to change
themselves are transactional.
 The transactional manager does not have
the “vision” of the Transformational leader.