The document discusses various theories of management and leadership. It describes trait theory, which proposes that effective leaders are born with certain traits. Behavioral theories are discussed, including studies at Ohio State University that identified consideration for employees and focus on tasks as key leadership behaviors. The University of Michigan studies classified behaviors as employee-oriented or production-oriented. Blake and Mouton's managerial grid plots concern for tasks versus people to define leadership styles. Contingency theory proposes there is no single best leadership style and the most effective style depends on the situation.

1. Theories Of Management
Roshni Saji
15

2. William D Hitt
defines a leader as
“someone who is
able to transform
vision into
significant actions.
Leadership is what
gives an
organization its
vision and ability
to translate the
vision into reality.”

3. Management
Harold Geneen defines
management ‘ as a team operate
who operate a business.
Management means to get
something done, to accomplish
something that you sent out to do’.
“Management is about persuading people to
do things they do not want to do , while
leadership is about inspiring people to do
things they never thought they could.”
-Steve Jobs

5. WHO IS
BETTER A
LEADER OR
MANAGER?
Organisation needs both the leader and manager
to be effective.
The main difference between leaders
and managers is that leaders have people follow
them while managers have people who work for
them. A successful business owner needs to be
both a strong leader and manager to get their
team on board to follow them towards their vision
of success.
Leaders help organizations and people to grow,
while a manager's greatest accomplishment comes
from making work processes more effective. ...
Both are important but naturally, leadership is
ahead of management. A well-balanced
organization has leadership at its base.

6. Trait theories
Behavioral theories
Contingency theories
Transformation theories

7.  Thomas Carlyle's leadership theory, called the trait theory of leadership, was the first among its kind,
postulated, and made famous, starting from the twentieth century. It developed out of the so-called Great
Man Theory, which Thomas Carlyle popularized in the 80s.
 Based on the idea that people are born with certain character traits.
 Points out key traits such as drive to lead self-confidence ,
intelligent , active listener, job relevant details.
 4 primary traits of a leader:
Emotional stability and composure.
Admitting error.
Good interpersonal skills.
Intellectual breadth.

8. The trait theory gives constructive information
about leadership. It can be applied by people at all
levels in all types of organizations. Managers can
utilize the information from the theory to evaluate
their position in the organization and to assess
how their position can be made stronger in the
organization. They can get an in-depth
understanding of their identity and the way they
will affect others in the organization. This theory
makes the manager aware of their strengths and
weaknesses and thus they get an understanding of
how they can develop their leadership qualities.
Inborn qualities of a leader

9.  Before the Behavioral Theory of management emerged, it was believed that leaders are
‘naturally born’. The Great Man Theory, for example, proposed that effective leaders are
born with innate leadership qualities. If you’re born with leadership qualities it doesn’t
mean that you’ll become a successful leader. Therefore, this leadership theory was highly
criticized. The behavioral theory surfaced and changed the game.
 The Behavioral approach to leadership evolved from the behaviorism movement of the
1950s. Many behavior scientists attempted to identify different behavioral patterns of
leadership styles. They achieved this by studying the activities of various leaders. The
behavioral theory argued that the success of a leader is based on their ability to respond to
environmental factors. Therefore, anyone can become a leader if they learn and
implement certain behaviors.

10. Behavioural
Theories
PEOPLE-
ORIENTED
LEADERSHIP
TASK-
ORIENTED
LEADERSHIP
SOUND
LEADERSHIP
The most popular
behavioral theories are as
follows :
1. Kurt Lewin’s Studies At
The University Of Iowa
2. The Ohio State Group
3. The University of Michigan
Studies
4. Managerial Grid

11. i)Kurt Lewin’s Studies At The University Of Iowa
This is the oldest of the situational
models. Kurt Lewin, a psychologist, led a
research team in 1939 and identified what he
called three 'styles ' of leadership
behavior in an article in the Journal of Social
Psychology and mainly focus on identifying
the best leadership styles.
What is more effective?
The satisfaction level of group members were
generally higher under a democratic leader.
In long run it is effective for the managers to
move towards employee-centered style for
management.

12.  In the mid-1940s, when Trait Theory was dominant within the field of leadership studies, researchers
at Ohio State University sought to draw conclusions of how different leadership behaviors affected
leadership performance.
 This is the most comprehensive and replicated of the behavioral theories . These studies sought to
identify independent dimensions of leader behavior.
 The primary concern with considerate and employee-centered style is the employee welfare and
leaders with initiating-structure and production-centered styles are achieving goals.
 Employee oriented leaders appear to be associated with high group productivity and job satisfaction.
Other studies found that high consideration was negatively related to performance ratings of the
leader in his / her manager.
 Leader behavior categorized as high on initiating structure led to greater rates of grievances ,
absenteeism and turnover, etc

13. Initiating Structure
Initiating Structure is a category of leadership
behaviors aimed at creating clarity and structure for
an organization. Some of the behaviors are:
•Setting clear expectations
•Providing constructive criticism enabling
improvement
•Setting standards of performance and production
•Creation and maintenance of processes, policies,
and procedures
•Setting job descriptions and establishing
the division of labor
•Systematic coordination of work
•Emphasis on meeting milestones and performance
targets
•Monitoring and controlling operations and
performance.
Consideration Behavior
Consideration behavior is a category of leadership
behaviors focusing on relationships and the welfare of
people. Here are a few examples of consideration
behaviors:
•Listening to team members and other stakeholders
•Treating people well and seeing them as equals
•Providing support to team members
•Being generally supportive, friendly, and available
•Emphasizing the welfare of the team members
•Building trust and a good team climate
•Display of empathy and a genuine wish to understand
the capabilities of each team member

14. The Ohio State Leadership Studies’ Initiating Structure and Consideration behaviours result in four leadership
styles:
 i. Low initiating structure with high consideration behaviour.
 ii. High initiating structure combined with low consideration behaviour.
 iii. Low levels of both behaviour categories.
 iv. High levels of initiating structure as well as high levels of consideration behaviour, in combination.
According to the Ohio State Leadership Studies, the combination of high initiating structure and high
consideration behaviour results in better outcomes for organizations and businesses. Thus, a perfect leader displays high
levels of both Initiating Structure and Consideration behaviours.

15.  The Institute Of Social Research at the Michigan university conducted empirical studies to
identify styles of leader behavior that results in higher performance and satisfaction of a
group.
 Classified leaders behaviour as employee oriented ( emphasizing interpersonal relations,
taking a personal interest in the needs of employees and accepting individual difference
among members) and production
oriented ( one who emphasizes
technical or task aspects of the job).

16. • Robert Blake and Jane Mouton in the early 1960s
developed a popular framework for thinking about
a leader’s “ task vs person” orientation called the
managerial grid or leadership grid where it plots
the degree of task-centeredness vs. person-
centeredness and identifies 5 combinations as
distinct leadership styles.
• Based on 2 dimensions: Concern For People And
Concern for Production
• It provides a framework of conceptualizing
leadership style.

17. Impoverished leadership:
 leaders main concern is not to be held for responsible for any mistakes, which results in less innovative
decisions.
 Delegate and disappear management style.
 Detach themselves from the group and are not committed to either task accomplishment or maintenance.
Country club leadership:
 High concern for people and less concern for production.
 Main concern for the needs and feeling of the members as creating a secure and comforting working
environment.
 Production suffers as there is lack of direction and control.
 They focus on employees as they hope that this would increase the production.
Middle of the road leadership
 Balance between worker’s needs and organisation productive goals.
 Settle for average performance.
 Employee morale at a level sufficient to get the work done.

18. Authoritarian or obedience
 It is also known as produce or perish.
 The primary objective of the produce or perish style is to achieve the organisation
goals.
 Need not consider the employees needs.
 Employee needs are always secondary to the need for efficient and productive
workplaces.
 Leader is very autocratic and views punishment as the most effective way to
motivate employees.
Team leadership
 The primary objective is to establish cohesion and foster a feeling of commitment
among workers.
 Leader acts as a positive example and activates to promote a team environment.
 Team environment will be based on trust and respect, which leads to high
satisfaction and motivation as a result high production.

19.  This theory claims that there is no best way to operate an organization and there is no specific leadership style or
variable that is perfect.
 A contingent leader makes their decisions based on all the facts that may influence the operation of an organization,
then leans towards the processes and procedures that work to their advantage to create the greater desirable outcome.
 This theory states, "that effective leadership depends not only on the style of leading but on the control over a
situation.”
 It suggest that a leader who is effective at one place and time may become unsuccessful either when transplanted to
another situation or when the factors around them change.
 Fiedler's Contingency Model of Leadership states that group effectiveness depends on an appropriate match
between a leader's style and the demands of the situation. In other words, effective leadership is contingent on
matching the leader's style to the right setting.

20.  Fiedler's Contingency Model of Leadership states that group effectiveness depends on an
appropriate match between a leader's style and the demands of the situation.
 In other words, effective leadership is contingent on matching the leader's style to the
right setting.
 Fred Fiedler developed the Contingency Model of Leadership in 1967 as a solution to the
trait and behavioral theories that were failing to produce a relevant framework for leadership
dynamics.
 Fiedler’s theory of leadership is based on two factors: leadership style and situational
favorableness.

21. Leadership style depends on the situation on the organization.
Fielder uses devices to determine leader personality and the situation:
a) The least-preferred coworker scale (LPC) is a management heuristic that assigns an
individual's leadership style as either task-oriented or relationship-oriented. The scale
utilizes a subjective evaluation of an individual's attitudes toward their least favorable
coworker.
The questionnaire asks 16 contrasting adjectives, asks to rate the other coworkers.
High LPC leaders tend to have close and positive relationship with the workers and low
LPC leaders put the task first and the will turn to relationships only when they are satisfied
with how the work is going.
One can make use of the contingency theory to determine the best candidate for a given
set of job requirements for effectiveness of a person in that role as by measuring a leader's
LPC score and the three situational variables ( leader- member relations, task structure and
leader position power), one can predict whether the leader is going to be effective in a
particular setting.

23. B. Situational favorableness
Situational favorableness or situational control describes the leader’s ability to control the group
situation. More specifically, the degree to which the leader can influence the behavior of group members in
order to face the current situation.
This situational model of leadership focuses on flexibility so that leaders are able to adapt according to the
needs of their followers and the demands of the situation.
Experts suggest that there are four key contextual factors that leaders must be aware of when making an
assessment of the situation.
 Consider the Relationship
 Consider the Task
 Consider the Level of authority
 Consider the level of maturity

24. C. Leader- Situation Match And Mismatch
 Since personality is relatively stable though it can be changed, the contingency model
suggests that improving effectiveness requires changing the situation to fit the leader. This
is called "job engineering" or "job restructuring".
 The organization or the leader may increase or decrease task structure and position power,
also training and group development may improve leader-member relations.
 One implication of "job engineering" or "job restructuring" through additional training is
that if all leaders are given the same training regardless of their position in the
contingency model, it could create a mismatch between the leader and situation.
 "The right person for a particular job today may be the wrong person in six months or in
one or two years.”

25.  Situational leadership theory is often referred to as the Hersey-Blanchard Situational
Leadership Theory.
 Situational Leadership emerged as one of a related group of two-factor theories of
leadership, many of which originated in research done at Ohio State University in the
1960s.
 Depending on the employees competencies in their task areas and commitment to their
tasks, leadership style vary from one person to another.
 This model allows analyzing the needs of the situation and then using the most
appropriate leadership style.
 These two-factor theories hold that possibilities in leadership style are composed of
combinations of two main variables: task behavior and relationship behavior.

26. Task Behaviors : it is the extent to which leaders
are likely to organize and define the role of the
members of their group and to explain what activities
each is to do and when , where and how tasks are to
be accomplished.
It will be a one way of communication.
Relationship Behavior: it is the extend to which
leaders are likely to maintain personal relationships
between themselves and members of their group by
the channels of communications.
Hersey and Blanchard took 2 dimensions and
created 4 quadrants model with task and relationship
ranging from low to high on each of the two axes.

27.  Leader- member exchange theory examines the relationship and role processes between a
leader and individual followers. The theory is based on the understanding that leaders
establish individual and mutually exchanged relationships with those in a subordinate
position.
A leader typically has one major prevailing style of leadership,but most don’t treat all
followers the same way.
 In-group and out-group :
In-group :These are individuals who have a special exchange relationship with the leader.
They have greater access, influence and favour and typically considered the trusted advisors,
assistant of the leader.
Out-group: this group has a low level of favour or mutual influence with the leader and
typically complies with the formal role expectations of the leader but lack the special
relationship available to the “in-group”.

28.  LMX process:
Role taking : leader will assess their abilities and talents and will offer them
opportunities based on their capabilities.
Role making : the leader and the member take part in an unstructured and informal
negotiation and there is loyalty and dedication by the members in return for the promise
of benefit and power.
Routinization: A pattern of ongoing social exchange between the leader and the
members become established.

29.  The path–goal theory, also known as the path–goal theory of leader effectiveness or
the path–goal model, is a leadership theory developed by Robert House, an Ohio State
University graduate, in 1971 and revised in 1996.
 The theory states that a leader's behavior is contingent to the satisfaction, motivation and
performance of his or her subordinates. The revised version also argues that the leader
engages in behaviors that complement subordinate's abilities and compensate for
deficiencies.
 According to the first of all theory, the manager's job is viewed as guiding workers to
choose the best paths to reach their goals, as well as the organizational goals.
 The theory argues that leaders will have to engage in different types of leadership
behavior depending on the nature and the demands of a particular situation.
 It is the leader's job to assist followers in attaining goals and to provide the direction and
support needed to ensure that their goals are compatible with the organization's goals.

30. • The directive path-goal clarifying leader behavior refers to situations where the leader lets
followers know what is expected of them and tells them how to perform their tasks. The theory
argues that this behavior has the most positive effect when the subordinates' role and task demands
are ambiguous and intrinsically satisfying.
• The achievement-oriented leader behavior refers to situations where the leader sets challenging
goals for followers, expects them to perform at their highest level, and shows confidence in their
ability to meet this expectation. Occupations in which the achievement motive were most
predominant were technical jobs, sales persons, scientists, engineers, and entrepreneurs.
• The participative leader behavior involves leaders consulting with followers and asking for their
suggestions before making a decision. This behavior is predominant when subordinates are highly
personally involved in their work.
• The supportive leader behavior is directed towards the satisfaction of subordinates needs and
preferences. The leader shows concern for the followers' psychological well being. This behavior is
especially needed in situations in which tasks or relationships are psychologically or physically
distressing.

31.  Vroom Yetton Jago leadership model uses decision trees and tradeoffs for a arriving at
a set of branched decisions. The Vroom Jago leadership model relates leadership
behavior and participation to decision making.
 The model makes the leader pose him/her a series of questions to which yes or no
would be the answer.

33. 1. Attribution Theory
 It was introduced by Fritz Heider in 1958 and further developed by Harold Kelly.
 Attribution is a term used in psychology which deals with how individuals perceive the causes of
everyday experience , as being either internal or external. Models used to explain this process is
called attribution theory.
 Attribution theory of leadership assumes that individuals make inferences about leadership
ability by observing and interpreting certain environmental and behavioral cues. Leaders
make attributions about the cause of the performance before deciding on the appropriate action to
take.
 A model of leadership emergence and evaluation that assumes that individuals make inferences
about leadership ability by observing and interpreting certain environmental and behavioral cues.
 Like leader categorization theory, this theory assumes that followers respond more positively to a
leader who displays the qualities and behaviors that match their implicit leadership theories.

34.  Charisma has been associated with leadership for centuries, and defined as 'a divinely
conferred power or talent'. Charismatic authority is a concept of leadership developed by the
German sociologist Max Weber. It involves a type of organization or a type of leadership in
which authority derives from the charisma of the leader. This stands in contrast to two other
types of authority: legal authority and traditional authority.
 What is charismatic leadership and how does it work?
Charismatic leaders are very good at articulating their thoughts and can
formulate a vision and motivate others to follow it. They are sensitive to the environment as
well as the member's needs. They are known for performing unconventional behavior and
take personal risks to gain authority and power.

35.  Transformational leadership is focused on motivation for employees to create change,
innovate, and shape the future of the organizational structure.
 This transformational organizational environment allows employees to help transform the
culture and the organization into something that is innovative and always growing.
 Transformational leaders are encouraged to demonstrate their own creativity and
innovation, becoming a role model for employees, and then inspiring employees to
follow in their steps.
 This leadership style is still practiced throughout the business world today. The
transformational leadership theory applicable across every industry, but is particularly
successful in innovative industries like technology, where lagging behind can ruin a
company.
 New concept called leader substitutes.

36. Transformational leadership characteristics and traits.
There are many key characteristics of good transformational leaders, including:
• Uses motivation to help encourage development and positive morale of followers.
• Demonstrates high moral standards, and encourages others to do the same.
• Creates a work environment that has clear values, priorities, and high standards of ethics and
morals.
• Creates a company culture where employees have an attitude of working toward the common
good, instead of focusing on their own interest.
• Emphasis on authenticity.
• Encourages collaboration and cooperation and provide a open communication channels for
everyone.
• Focuses on coaching and mentoring where it is wanted.
• Encourages employees to take ownership of tasks.
• Allows employees to make decisions and helps them find success.