This document discusses various leadership styles and theories. It begins by distinguishing between leadership and management, noting that leaders take a more active role in achieving goals while managers play a relatively passive role. It then describes several leadership styles including autocratic, participative, and laissez-faire. It also covers leadership theories such as the trait theory, behavioral theories including the Ohio State and University of Michigan studies, and contingency theories including Fiedler's model and the situational leadership theory. Overall, the document provides an overview of key concepts in leadership studies.

1. Leadership

2. IntroductionIntroduction
The study of leadership in organizations is very crucial in the field of
OB.
An effective leader is capable of inspiring and motivating even the
most inefficient employees to strive towards attaining the goals of the
organization.
Leadership is a psychological process of influencing followers or
subordinates and providing guidance to them.


3. Distinction between Leadership and ManagementDistinction between Leadership and Management
Leaders take a personal and active interests in achieving goals
whereas managers tend to play a relatively passive role in
accomplishing the goals.
Managers need power to be entrusted to them by the organization
to deal with people . Leaders have power within themselves and
the required drive to lead people and motivate them to work
enthusiastically towards achieving goals.
Managers limit their interactions with people to the minimum
extent required to carry out their managerial responsibilities.
Leaders interact with people frequently and in a more natural
way. In the process they inspire people, motivate them and lead
them.

4. Leadership Styles
The behavioural pattern which a leader exhibits is known as his
style of leadership.
There are three important leadership styles:
1. Autocratic Leadership
2. Participative Leadership
3. Free-Rein leadership

5. Autocratic Leadership
It is also known as authoritarian or directive style of
leadership. The autocratic leader gives orders which must be
obeyed by the subordinates. He centralizes decision-making
power in himself. He takes decisions for the group members
and simply tells the group what the members have to do.
Autocratic leaders have proved to be successful in many
cases. In particular, subordinates who depend upon the boss
and do not want to take any initiative get satisfaction from
this style.
However autocratic leadership does not help to develop
future leaders in the organization.

6. Participative Leadership
A democratic leader is one who gives orders after consulting
the group. He sees to it that policies are worked out in group
discussions and with the acceptance of the group.
Participative leadership increases the acceptance of
management’s ideas and reduces resistance to change.
It also leads to reduction in the number of grievances of the
workers.

7. Laissez Faire/ Free Rein Leadership
A free rein leader does not lead, but leaves the group
entirely to itself. The free rein leader avoids using power. He
depends largely upon the group to establish its own goals and
work out its problems.
This type of leadership is evident in research laboratories
where the scientists are fairly free to conduct their research
and make their decisions.
It is suitable where people are highly motivated and
achievement oriented.

8. Charismatic Leadership
Charisma is a leadership trait that can help influence employees to
take early and sustained action.
It is a form of inter-personal attraction that inspires support and
acceptance from others.
Charismatic leaders are dynamic risk-takers who show their
expertise, self-confidence and express high performance
expectations.
They can also be warm mentors who treat employees individually
and guide them to work enthusiastically.
People working for charismatic leaders are motivated to work
extra, because they like their leader, and attain greater satisfaction
by working with him.

9. Transformational Leadership
A transformational leader is the one who inspires
organizational success by profoundly affecting followers’
beliefs in what an organization should be, as well as their
values, such as justice and integrity.
This style of leadership creates a sense of duty within an
organization, encourages new ways of handling problems,
and promotes learning for all organization members.

10. Transactional Vs. Transformational
Transactional Leaders
Transformational
Leaders
Contingent Reward-
Contracts exchange of
rewards for effort, promises
rewards for good
performance, recognizes
accomplishments.
Management by
exception- Watches and
searches for deviations from
rules and standards, takes
corrective action.
Laissez Faire- Abdicates
responsibilities, avoids
making decisions.
Provides vision and sense
of mission, instills pride,
gains respect and trust.
Inspiration-
Communicates high
expectations and expresses
important purposes in
simple ways.
Intellectual
Stimulation- Promotes
intelligence, rationality and
careful problem solving.

11. Leadership TheoriesLeadership Theories
There are three main theories that attempt to explain
Leadership.
 Personality Trait Theories
 Behavior theories
 Contingency Theories

12. Trait TheoryTrait Theory
Earlier researchers believed that there were certain unique
characteristics in people that made them leaders .
These studies of leadership focused on the “great man
theory” that leaders are born not made.
According to them , a person must possess certain unique
personality traits that are essential for effective leadership.
Stogdill’s Trait factors, Ghiselli’s Personal Traits are
some of the important trait theories.
One of the major drawbacks of the trait theory is that the list
of personality traits is very long. Researchers often disagree
over which traits are most essential for an effective leader.

13. Behavioral TheoriesBehavioral Theories
The inability to strike “gold” in trait “mines” led researchers
to look at the behaviours that specific leaders exhibited. They
wondered if there was something unique in the way that
effective leaders behave.
The behavioral theorists concentrated on the unique
behavioral aspects found in leaders that enabled them to
attain effective leadership. Following are the main behavior
theories of leadership
1. The Ohio State studies
2. Universities of Michigan studies
3. The Managerial Grid
4. Scandinavian studies

14. The Ohio State StudiesThe Ohio State Studies
In 1945 researchers from various fields conducted studies on leadership at
Ohio State university. The research was based on a questionnaire called
‘Leader Behavior Description Questionnaire’,that asked subordinates
to indicate the extent to which leaders engaged in particular behaviours.
They narrowed down to two independent behavioural dimensions along
which an individual’s leadership behavior could be studied.
1. Initiating Structure – Individual’s ability to define his own task as well as
the subordinates tasks and also accomplish them in time. People who score
high in this dimension put pressure on subordinates to meet deadlines and
maintain certain level of performance.
2. Consideration – This refers to the extent to which a leader cares for his
subordinate, respects their ideas and feelings and establishes work relations
which are characterized by mutual trust and respect.

15. The Ohio State StudiesThe Ohio State Studies
Extensive research based on these definitions, found that
leaders high in initiating structure and consideration(a ‘high-
high’ leader) tended to achieve high employee performance
and satisfaction more frequently than those who rated low on
either consideration, initiating structure or both.
However further studies indicated that the ‘high-high’ style
did not always resulted in positive outcomes and enough
exceptions were found to indicate that other situational
factors needed to be integrated into the theory.

16. University of Michigan studies
A research was conducted at the Survey Research Centre at
the University of Michigan. The research was conducted on
twelve pairs of sections ,each section consisted on one high
producing section and one low producing section.
During the study , researchers also interviewed 24
supervisors and 400 workers. And following was observed.
1. Employee-oriented leadership style (relationship
oriented) emphasizing concern for employee welfare ,
needs, advancement and personal growth.
2. Production-oriented leadership style(task –
oriented) emphasizing the use of rules , procedures and
close supervision of subordinates.

17. University of Michigan studies
The conclusions arrived at by the Michigan Researchers
strongly favoured the leaders who were employee oriented
in their behaviour.
Employee oriented leaders were associated with higher
group productivity and higher job satisfaction.
Production-oriented leaders tended to be associated
with low group productivity and lower job satisfaction.

18. The Managerial Grid byThe Managerial Grid by Blake &
Mouton
The Managerial Grid graphic below is a simple framework that
defines FIVE basic styles that characterize workplace behaviour
and the resulting relationships. The FIVE managerial Grid styles
are based on how two fundamental concerns (concern for people
and concern for production) are manifested at varying levels
whenever people interact.

19. 1. Impoverished style (Low Production / Low People) (1,1)
Description: A delegate-and-disappear management style. A basically
lazy approach.
Characteristics: The manager shows a low concern for both people
and production. He (or she) avoids to get into trouble. His main
concern is not to be held responsible for any mistakes.
Results in: Disorganization, dissatisfaction and disharmony due to
lack of effective leadership.
2. Country Club style (Low Production / High People)(1,9)
Description: One-sided, thoughtful attention to the needs of
employees.
Characteristics: The relationship-oriented manager has a high concern
for people, but a low concern for production. He pays much attention
to the security and comfort of the employees. He hopes that this will
increase performance. He is almost incapable of employing the more
punitive, coercive and legitimate powers. This inability results from
fear that using such powers could jeopardize relationships with the
other team members.
Results in: A usually friendly atmosphere, but not necessarily very
productive.

20. 3.Produce or Perish style OR Authoritarian style (High
Production / Low People)(9,1)
Description: Authoritarian or compliance leader.
Characteristics: The task-oriented manager is autocratic, has a
high concern for production, and a low concern for people. He
finds employee needs unimportant and simply a means to an
end. He provides his employees with money and expects
performance back. There is little or no allowance for
cooperation or collaboration. He pressures his employees
through rules and punishments to achieve the company goals.
Heavily task-oriented people are very strong on schedules.
They are intolerant of what they see as dissent (it may just be
someone's creativity).
Results in: Whilst high output is achievable in the short term,
much will be lost through an inevitable high labour turnover.

21. 4. Middle-of-the-road style (Medium Production /
Medium People). (5:5)
Description: The manager tries to balance between
the competing goals of the company and the needs of
the workers.
Characteristics: The manager gives some concern to
both people and production, hoping to achieve
acceptable performance. He believes this is the most
anyone can do.
Results in: Compromises in which neither the
production nor the people needs are fully met.

22. 5. Team Management style (High Production / High People).
(9:9)
Description: The ultimate. The manager pays high concern to
both people and production. Motivation is high.
Characteristics: The manager encourages teamwork and
commitment among employees. This style emphasizes making
employees feel part of the company-family, and involving them
in understanding organizational purpose and determining
production needs.
Results in: Team environment based on trust and respect,
which leads to high satisfaction and motivation and, as a result,
high production.

23. Scandinavian StudiesScandinavian Studies
The previous three behavior theories did not take into account the
dynamics, or even chaotic environments that influence today’s
modern organizations.
Some Finnish and Swedish theorists began reviewing earlier
theories to find new dimensions that could incorporate the
dynamics of the environment.
The new dimension found was called as ‘development–
oriented behavior’.
According to this dimension leaders were ready to experiment
with new ideas and practices and embrace change.
Leaders who were inclined towards this dimension were found to
be more efficient by the subordinates.

24. Contingency TheoriesContingency Theories
While trait and behavior theories do help us understand
leadership, an important component is missing: the environment
in which the leader exists.
According to the contingency approach of leadership, a single
leadership style is not applicable to all situations.
Below are the 5 contingency models of leadership styles.
1. Fiedler’s Contingency Model
2. Hersey and Blanchard’s situational theory
3. Leader-member exchange theory
4. Leadership-participation model
5. Path Goal Theory

25. Fiedler Model
The theory that effective groups depend upon a proper match
between a leader's style and the degree to which the situation
gives control and influence to the leader.
There are basically three steps in the model
1) Identifying Leadership Style
2) Defining the Situation
3) Matching leaders and situations

26. 1. Identifying Leadership Style
Fiedler believes a key factor in leadership success is
the individual’s basic leadership style
So he created the Least Prefer Co-worker (LPC)
Questionnaire
LPC:-An instrument that tells to measure whether a
person is task or relationship oriented
 low LPC score then the person is task oriented
 high LPC score then the person is relationship oriented

27. 2. DEFINING THE SITUATION2. DEFINING THE SITUATION
Situational favorableness, determined by three factors:
1. Leader-member relations - Degree to which a leader is accepted
and supported by the group members.
2. Task structure - Extent to which the task is structured and defined,
with clear goals and procedures.
3. Position power or the leader’s position - The ability of a leader
to control subordinates through reward and punishment

28. These three variables determine whether a given situation is
favourable or unfavourable to the leader.The favourableness of
situation maybe defined as ”the degree to which the situation
enables the leader to exert his influence over his group.”
High levels of these three factors give the most favourable
situation, low levels, the least favourable
Relationship-motivated leaders are most effective in moderately
favorable situations. Task-motivated leaders are most effective at
either end of the scale.

29. 3. Matching leaders and Situations
After knowing the leadership style through LPC and
defining all the situations, we will chose the leader
who will fit the situation.
Two ways in which to improve leader effectiveness
1) Change the leader to fit the situation
2) Change the situation to fit the leader

30. Hersey & Blanchard’s Situational
Leadership (SLT)
A model that focuses on follower “readiness”
Followers can accept or reject the leader
Effectiveness depends on the followers’ response to the leader’s
actions
“Readiness” is the extent to which people have the ability and
willingness to accomplish a specific task
A paternal model:
As the child matures, the adult releases more and more control
over the situation
As the workers become more ready, the leader becomes more
laissez-faire

31. Cont….
 Hersey and Blencherd identify four specific
leader behaviors
 The most effective behavior depends on the
follower’s ability and motivation
1. If followers are unable and unwilling to do a task,
the leader needs to give specific and clear directions.
2. If followers are unable and willing,
The leader need to display a high task orientation.
3. If the followers are able and unwilling,
The leader needs to use a supportive and participative style.
4. If followers are both able and willing,
The leader doesn't need to do much.

32. Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and subordinates
with in-group status will have higher performances ratings,
less turnover, and greater satisfaction with their superior.
 LMX Premise:
Because of time pressures, leaders form a special relationship with a
small group of followers: the “in-group”
This in-group is trusted and gets more time and attention from the
leader (more “exchanges”)
All other followers are in the “out-group” and get less of the leader’s
attention and tend to have formal relationships with the leader (fewer
“exchanges”)
Leaders pick group members early in the relationship

33. Path Goal TheoryPath Goal Theory
 This theory was developed by Robert House.
 Here the leader provides the necessary support and guidance to his followers
and help them achieve organizational goals.
 Leader defines the individual(or groups) goals and help them achieve them.
 As per the theory – Leaders are accepted by the subordinates when
They find that the satisfaction of their needs depend upon their effective
performance.
They are provided with guidance ,support, and rewards needed for effective
performance.
Robert House suggested 4 types of leadership by this model
1. Directive leadership
2. Supportive leadership
3. Participative leadership
4. Achievement-oriented leadership.

34. Leadership-participationLeadership-participation
modelmodel
 In 1973 Victor Vroom and Philip Yetton came up with the leadership-
participation model that tried to establish relation between leadership behavior
and the decision making style.
 As per them leaders are required to adapt their behavior to suit changes in the
situations.
 The model proposed a sequential set of rules that could help the managers in
taking decisions in different situations.
 The model had 12 contingencies also called as ‘problem attributes’ and 5
alternative leadership styles.
 The Problem Attributes were categorized into decision-quality and
employee acceptance.
decision-quality – cost considerations, information availability, nature of
problem structure.
employee acceptance – need for commitment, their prior approval,
congruence of their goals

35. THANK YOU!!