Chapter TWELVE

Basic Approaches to
Leadership
What is leadership?
Features, importance
Managers vs. leaders
leadership styles
 LEADERSHIP

Leadership is the behavior of an individual when

he is directing the activities of a group towards a
shared goal
Is a process & property.
Process is the use of non coercive influence to
direct & co ordinate the activities of the members
of an organized group towards the accomplishment
of group objective .
As a property , leadership is a set of
characteristics attributed to those who are
perceived to successfully employ such influence
Features
1. Group phenomenon(interaction between 2
parties)
2. Refers to the ability of one individual to
influence others
3. Behavior is changed thru non coercive
behavior
4. Change of behavior is caused with an
objective of achieving shared goal
5. Person influencing the others possess a
set of qualities or characteristics which he
uses to influence others
Managers
Managers vs.
vs. Leaders
Leaders

Managers are people who do

things right, while leaders are

people who do the right thing.

Warren Bennis
What
What Is
Is Leadership?
Leadership?
Leadership
The ability to
influence a group
toward the
achievement of goals.
Management
Use of authority
inherent in designated
formal rank to obtain
compliance from
organizational
members.
Leadership vs. management
Mgt is the process of planning , organizing ,coordinating ,
directing & controlling the activities of others
Managership is the authority to carry out this function
Leadership is the process of influencing for the purpose of
achieving a goal
Both are the mgt tools that the managers have to
accomplish the org objective
Managers may have managership but may not possess
leadership or ability to influence others
Primary function of a good leader is to carve out the vision
of the company & a strategy to implement the vision
 Formulate strategy
Carve org vision to implement

Leader's role

Implement org
Strategy

Managers role
 Leaders/Managers
Leaders/Managers
Managers: Leaders:
Use authority to direct Influence
group Inspire
Use rank Motivate
Plan Energise
Organise Communicate
Control Encourage
Direct group towards
achieving goals
Fundamental
Fundamental Differences
DifferencesHollingsworth:1999)
Hollingsworth:1999)
(
(

Managers: Leaders:
Administer Innovate
Maintains Develop
Focuses on systems Focuses on people
and structure Inspires trust
Relies on control Has an eye on the
Keeps an eye on the horizon
bottom line Does the right thing
Does things right
Other differences :
Leaders have followers , mangers do not have
Leaders have emotional appeal
Leader fulfill the followers need
Management is doing things right , leadership is doing
right things .
Management's efficiency lies in climbing the ladder of
success , leadership determines whether is leaning
towards the right wall
Peter drucker & warren bennis
In real life org there are no distinct leaders , there is only
managers . they will be acting both as managers &
leaders
A successful manager both the qualities make use
of them when required
Leadership is a mutual influence process
Leader's influence on the followers :
1. Reward power
2. Coercive power
3. Legitimate power
4. Expert power
5. Referent power
Followers influence on the leader:
1. Responses or performance of the subordinates
2. Characteristics of the subordinates
3. Org policy & climate
4. Peers & their influence on the leaders
5. Influence of superiors on the leader
Importance of leadership:
A leader not only commits his followers to organizational
goals, but also pools necessary recourses , guides &
motivates subordinates to reach the goal
Transforms potential into reality
The leader should evaluates , inspire & evangelize his
followers to higher things in life
Poor performing org does not attract best leaders
Not all the leaders has same abilities & experience
Environmental & org factors can override the effect of a
leader
Org continues to flourish even after the change of
leadership
Formal vs informal leaders
Formal leadership when a
manger leads by exercising formal
authority through assignng duties etc

Informal leadership
When a person without any formal
authority is influencing or directs the
behavior of others . Are not formally
appointed / elected , he becomes a
leader thru his actions or personal
attractions
Leadership styles & implication
Is a typical approach a particular person uses to lead
people . The behavior the leader exhibit during the
supervision of the subordinat is called leadership style

Comprise of 2 distinct elements :

1. Leaders assumption about subordinates
2. leaders actual behaviors when interacting with
subordinate s
Types
Types of
of Leadership
Leadership Style
Style
Autocratic(authoritarian)
Leader makes decisions without reference to
anyone else
High degree of dependency on the leader
Can create de-motivation and alienation
of staf
May be valuable in some types of business
where decisions need to be made quickly and
decisively
Types
Types of
of Leadership
Leadership Style
Style
Participative :
I)consultative (just consult with the employees,
final decisions is taken by the leader)
Ii)Consensual (arranges GD takes a decision that
reflects the general agreement )
Iii)Democratic (final authority to the group,
collector of opinion, takes vote before making a
decision)
May help motivation and involvement
Workers feel ownership of the firm and its ideas
Improves the sharing of ideas
and experiences within the business
Can delay decision making
Types
Types of
of Leadership
Leadership Style
Style

Laissez-Faire (delegative, free reign)

No particular leadership style actually abdicates
leadership give the authority to somebody in the
group, but still have a hold on the employees
Works well when the group is composed of highly
commited employees
Sometimes it may be perceived that he abdicate the
leadership role becoz of his incompetency or fear of
failure
Relies on good team work
Relies on good interpersonal relations
Forces:
Good leader 3 different styles depending on what forces are
involved between the leader, follower & situation
Authoritarian style:
When an employee who is just learning the job. The leader is
competent & good coach . Ee is motivated to learn new skill
Participative style :
With a team of workers who know their job well . The leader
knows all the problems But does not have the information . The ee
know the job and want to a part of the team
Delegative style :
With a worker know more about the job than you . You cannot do
everything. The employee needs to know the ownership of the job
Using all the 3 styles:
Telling your employee that a procedure is not
working correctly & a new one must be
established (authoritarian).Asking for their ideas
& inputs on creating a new procedure
(participative). Delegating the task in order to
implement the new procedure(delegative)
Factors that influence the style to be used :How
much time is available ?
1. Are relationship based on respect& trust or disrespect ?
2. Who has the information?
3. Internal conflicts
4. Type of task
5. Laws or established procedures
Leader

Employees

Autocratic Free reign

Participative
II. Styles based on task versus people emphasis:
Based on relative concern the leader places on the
task s to be performed & the people performing
the task .
Leader who give importance to task performance
may show :
1. Organizing & defining roles of the group
members
2. Explain what activities to be done etc.
3. Established well defined patterns of
organization, channels of communication&
ways of task accomplishment
 A leader who give importance to people :
1. Establish channels of communication & ways of task
accomplishment
2. Psychological support to them
3. Mutual trust
4. Empathy for them

High
Supporting Participative
style style
People
emphasis

Free reign Autocratic

style Style

Low

Low High
Task emphasis
III.Styles based on assumption about people
Based on leaders assumption about people :
This 2 way classification is based on Mc gregorss famous
theory X & theory Y

Autocratic (close Participative ( trust

supervision, tight subordinates, allow
control over to participate in
subordinates) decision making
 Perspectives of leadership speaks about the
different factors which influences leadership
behavior & effectiveness.
Based on these perspectives certain theories
have been developed which are very important in
understanding how a leaders behavior affects the
organization
Perspectives
Perspectives of
of Leadership
Leadership

Competency
Perspective

Romance Behaviour
Perspective Leadership Perspective
Perspectives

Transformational Contingency
Perspective Perspective
Leader
Leader Competencies
Competencies of
of Kim
Kim Jung
Jung Tae
Tae

Kim Jung Tae has a strong inner

motivation, self-confidence,
integrity, and extensive
experience in the banking
industry. These leadership
competencies were likely
considered when a selection
panel chose Kim as CEO of
South Koreas Kookmin Bank
Courtesy of Kookmin Bank
after a recent merger.
The trait theories of leadership focus on
personal characteristics of the leader
For ex. :
In describing the leadership of
American Express CEO , Kenneth
Chenault, the media uses the term as
intelligent, Sociable straightforward,
self confident, responsible, energetic &
ethical
Trait
Trait Theories
Theories
Traits Theories of
Leadership
Theories that consider
personality, social,
physical, or intellectual
traits to differentiate
leaders from
nonleaders.
(stronSeven
(stronSeven Leadership
Leadership Competencies
Competencies

Drive (inner motivation to

pursue the goal)
Leadership motivation( need
for power)
Integrity (truthfulness &
tendency to translate words
into deeds)
Self-confidence(belief in
leadership skills & ability to
achieve objective) Courtesy of Kookmin Bank
 Intelligence(above average
cognitive ability)
Knowledge of the business
Emotional intelligence(ability to
manage emotions & discriminate
among them
self monitoring personality,
ability to empathize with others&
build relationship
 Trait
Trait Theories
Theories

Limitations
Limitations :
:

No
Nofinality
finalityof
ofthe
thelist
listof
ofpersonality
personalitytraits
traits
How
Howmuch
muchof ofwhich
whichtrait
traitaasuccessful
successful
leader
leadershould
shouldhave
haveisisnot
notclear
clear
Theory
Theoryassumes
assumesthat
thatleader
leaderisisborn
born&&not not
trained
trainedisisnot
notacceptable
acceptableto tocontemporary
contemporary
thinkers
thinkers
Unclear
Unclearevidence
evidenceofofthe
thecause
causeandandeffect effect
of
ofrelationship
relationshipofofleadership
leadershipand andtraits.
traits.
Behavioral
Behavioral perspective
perspective of
of leader
leader

Scholars from Ohio university

launched a intensive research to
answer the question : What behavior
make a leader effective?.
Questionnaires are distributed
among the subordinates on a large
number of behaviors . There were
also studies from Michigan
university & Harvard university.
Came up with 2 Clusters of leader
behavior
Leader
Leader Behavior
Behavior Perspective
Perspective
People-oriented Behaviors
Showing mutual trust and respect
Concern for employee needs
Desire to look out for employee welfare

Task-oriented Behaviors
Assign specific tasks
Ensure employees follow rules
Push employees to reach peak performance
Choosing
Choosing Task
Task versus
versus people
people oriented
oriented
Leadership
Leadership
People oriented behavior
High job satisfaction ,low absenteeism,
grievances & turnover. neutral or negative effect on
job behaviour of ees
Task oriented behavior
Low satisfaction, high absenteeism, high
turnover. High job performance
 The
The
Managerial
Managerial
Grid
Grid
(Blake
(Blakeand
andMouton)
Mouton)

E X H I B I T 121
E X H I B I T 121
 Impoverished management(`1,1)
Minimum effort to get the work done. A basically
lazy approach that avoids as much work as
possible.
Authoritative (9,1)
Strong focus on task, but with little concern for
people. Focus on efficiency, including the
elimination of people wherever possible.
Country Club management (1,9)
Care and concern for the people, with a
comfortable and friendly environment and collegial
style. But a low focus on task may give
questionable results.
 Middle of the road management(5,5)
A weak balance of focus on both people and the
work. Doing enough to get things done, but not
pushing the boundaries of what may be possible.
Team management(9,9)
Firing on all cylinders: people are committed to
task and leader is committed to people (as well as
task).