Unit-2

Introduction to Management & Leadership

UCT- 242
Semester-3

Palvi Jearth
CSE
Introduction
Leadership is the ability to develop a vision that
motivates others to move with a passion toward
a common goal. So leadership is a process by
which a person influences others to accomplish
an objective and directs the organization in a
way that makes it more cohesive and coherent.
Definition
• Leadership is the “process of social influence in which one
person can enlist the aid and support of others in the
accomplishment of a common task”.
M Chemers.
• "Leadership is ultimately about creating a way for people
to contribute to making something extraordinary happen."
Alan Keith.
Formal & informal leadership
Formal leadership
Occurs when a manager leads by exercising formal authority.
The exercise of formal authority through assigning duties
derives,from the managers official position within the organisation’s
hierarchy of authority.
Any employee who is assigned a managerial position has the
opportunity and responsibility to exercise formal leadership

Informal leadership
Arises when a person without formal authority is influential in
directing the behavious of others. Although not formally appointed or
elected he becomes a leader through his actions or personal
attractions.
The essence of leadership
 Leadership refers to ability of one individual to influence others.
 The influence is exercised to change the behaviour of others.
 Change of behaviour is caused with an objective of achieving a
shared goal.
 The person influencing others(leader) possesses a set of qualities
or characteristics with which he or she to influence others
 Leadership is a group phenomenon. It involves interaction
between two or more people.
Four factors of leadership
• Leader - You must have an honest understanding of who you are,
what you know and what you can do. To be successful you have
to convince your followers not your superiors, that you are
worthy of being followed.

• Follower -You must know your people. The fundamental starting

point is having a good understanding of human nature, such as
needs, emotions and motivation.

• Communication-The nonverbal communication is leading. E.g.-

when you set example that communicates to your people that
you would not ask them to perform anything that you would not
be willing to do. Bad communication harm the relation between
leader and employee.

• Situation-We must use our judgment to decide the best course of

action and the leadership style needed for each situation. What
we do in one situation will not always work in another.
Difference between Managers & Leaders
Styles of leadership
The three major styles of leadership are (U.S. Army Handbook,
1973) :
Authoritarian or autocratic
Participative or democratic
Delegative or Free Reign
• Autocratic – The authoritarian leader makes decisions alone as
power is centralized in one person. Decisions are enforced using
rewards and the fear of punishment. it is an abusive, unprofessional
style called “bossing people around.”
• Democratic- The participative leader include one or more
employees in the decision making process. Communication flow
freely; suggestions are made in both directions. The participation
encourages member commitment to the final decision.

• Laissez-faire- The free-rein leader gives power to subordinates to

make the decisions. However, the leader is still responsible for the
decisions that are made. This is used when employees are able to
analyze the situation. Deligative style is generally not useful.
Theories of leadership
Great Man Theory
Trait Theory

Transactional Theory
Transformational Theory
• FIEDLER’S CONTIINGENCY MODEL
• HARSEY & BLANCHARD’S SITUATIONAL THEORY
Contingency Theory • PATH GOAL THEORY

• Michigan studies
Behavioral Theory • Ohio studies

Situational Theory
Great Man Theory
• Assumptions
The leaders are born and not made and posses certain traits which were inherited
Great leaders can arise when there is a great need.

• Theory
Much of the work on this theory was done in the 19th century and is often linked to the work of the
historian Thomas Carlyle who commented on the great men or heroes of the history saying that
“the history of the world is but the biography of great men”. According to him, a leader is the one
gifted with unique qualities that capture the imagination of the masses.
Earlier leadership was considered as a quality associated mostly with the males, and therefore the
theory was named as the great man theory. But later with the emergence of many great women
leaders as well, the theory was recognized as the great person theory.
The great man theory of leadership states that some people are born with the necessary attributes
that set them apart from others and that these traits are responsible for their assuming positions of
power and authority. A leader is a hero who accomplishes goals against all odds for his followers.
The theory implies that those in power deserve to be there because of their special endowment.
Furthermore, the theory contends that these traits remain stable over time and across different
groups. Thus, it suggests that all great leaders share these characteristic regardless of when and
where they lived or the precise role in the history they fulfilled.
• Criticism
Many of the traits cited as being important to be an effective leader are
typical masculine traits. In contemporary research, there is a significant
shift in such a mentality.
• Conclusion
Prompted by the great man theory of leadership, and the emerging
interest in understanding what leadership is, researchers focused on
the leader - Who is a leader? What are the distinguishing
characteristics of great and effective leaders? This gave rise to the early
research efforts to the trait approach to leadership.
Trait theory
The Trait Approach arose from the “Great Man” theory as a way of
identifying the key characteristics of successful leaders. It was believed
that through this theory critical leadership traits could be isolated and
that people with such traits could then be recruited, selected, and
installed into leadership positions. This theory was common in the
military and is still used as a set of criteria to select candidates for
commissions.
Advantages of Trait Theory
• It is naturally pleasing theory.

• It serves as a yardstick against which the leadership traits

of an individual can be assessed.

• It gives a detailed knowledge and understanding of the

leader element in the leadership process.
Limitations of The Trait Theory

• There is bound to be some subjective judgment in

determining who is regarded as a ‘good’ or ‘successful’
leader.

• There is also a disagreement over which traits are the

most important for an effective leader
Transactional leadership
• Transactional leadership is a part of a style of leadership that focuses
on supervision, organization, and performance; it is an integral part of
the Full Range Leadership Model. Transactional leadership is a style of
leadership in which leaders promote compliance by followers through
both rewards and punishments. Unlike transformational leaders,
those using the transactional approach are not looking to change the
future, they look to keep things the same. Leaders using transactional
leadership as a model pay attention to followers' work in order to find
faults and deviations.
Transformational leadership
• Transformational leadership is defined as a leadership approach that
causes change in individuals and social systems. In its ideal form, it
creates valuable and positive change in the followers with the end
goal of developing followers into leaders. Enacted in its authentic
form, transformational leadership enhances the motivation, morale
and performance of followers through a variety of mechanisms. These
include connecting the follower's sense of identity and self to the
mission and the collective identity of the organization; being a role
model for followers that inspires them; challenging followers to take
greater ownership for their work, and understanding the strengths
and weaknesses of followers, so the leader can align followers with
tasks that optimize their performance
Elements of Transformational Leadership
Behavioral Theory
 These theories of leadership are based upon the belief
that great leaders are made, not born.
Rooted in behaviourism, this leadership theory focuses
on the actions of leaders not on mental qualities or
internal states.
According to this theory, people can learn to become
leaders through teaching and observation.
The behavior approach says that anyone who adopts
the appropriate behavior can be a good leader.
Studies of Behavioral theory
• Ohio state leadership university studies.

• Managerial Grid

• University of Michigan studies

Ohio Studies
Ohio State Leadership Studies is Behavioral Leadership Theory. Series of studies on
leadership was done by the Ohio State University in 1945 to identify observable
behaviors of leaders instead of focusing on their individual traits.
They found two critical characteristics of leadership either of which could be high
or low or independent of one another.
• These are known as the Leader Behavior Description Questionnaire (LDBQ) and
the Supervisor Behavior Description Questionnaire (SBDQ).
• Ultimately, these studies narrowed the description of leader behavior into two
dimensions:
• Initiating Structure Behavior: The behavior of leaders who define the leader-
subordinate role so that everyone knows what is expected, establish formal lines
of communication, and determine how tasks will be performed.
• Consideration Behavior: The behavior of leaders who are concerned for
subordinates and attempt to establish a worm, friendly, and supportive climate.
Michigan Leadership Studies
Michigan Leadership Studies is a behavioral Leadership Theory that
indicates the Institute for Social Research at the University of Michigan
conducted empirical studies to identify styles of leader behavior that results
in higher performance and satisfaction of a group.
The studies identified two distinct styles of leadership;
• Job-centered Leadership: Managers using job-centered leader behavior
pay close attention to subordinates’ work, explain work procedures and are
keenly interested in performance.
• Employee-centered Leadership: Managers using employee- centered
leader behavior are interested in developing a cohesive work group and
ensuring that employees are satisfied with their jobs. The Michigan
Leadership Studies found that both the styles of leadership led to increase
in production, but it was slightly more in case of production of job-
centered style.
Contingency theory
In Contingency theory of leadership, the success of the
leader is a function of various contingencies in the form
of subordinate, task, and/or group variables. The
Leaders who are very effective at one place and time
may become unsuccessful either when transplanted to
another situation or when the factors around them
change.
This helps to explain how some leaders who seem
for a while to have the 'Midas touch' suddenly appear to
go off the boil and make very unsuccessful decisions.
Different Sets/theories of contingency theory :

FIEDLER’S CONTIINGENCY MODEL

HARSEY & BLANCHARD’S SITUATIONAL THEORY

PATH GOAL THEORY

FIEDLER’S CONTINGENCY MODEL
• Fiedler's model assumes that group performance depends on:
 Leadership style, described in terms of task motivation and
relationship motivation.
Situational favourableness, determined by three factors:
a) Leader-member relations - Degree to which a leader is
accepted and supported by the group members.
b) Task structure - Extent to which the task is structured and
defined, with clear goals and procedures.
c) Position power - The ability of a leader to control subordinates
through reward and punishment.
Blanchard's situational theory-
• The Hersey-Blanchard Situational Leadership Theory was
created by Dr Paul Hersey and Ken Blanchard. The theory
states that instead of using just one style, successful
leaders should change their leadership styles based on the
maturity of the people they're leading and the details of
the task. Using this theory, leaders should be able to place
more or less emphasis on the task.
• According to Hersey and Blanchard, there are four main leadership styles:

• Telling (S1) – Leaders tell their people exactly what to do, and how to do it.
• Selling (S2) – Leaders still provide information and direction, but there's
more communication with followers. Leaders "sell" their message to get
the team on board.
• Participating (S3) – Leaders focus more on the relationship and less on
direction. The leader works with the team, and shares decision-making
responsibilities.
• Delegating (S4) – Leaders pass most of the responsibility onto the follower
or group. The leaders still monitor progress, but they're less involved in
decisions.
Path-Goal theory
• According to path-goal theory, the leader’s responsibility is to increase
subordinates’ motivation to attain personal and organizational goal.A
person may do these by adopting a certain leadership style, according to
the situation:

Directive leadership – it tells subordinates exactly what they are

supposed to do, which includes planning, making schedules, setting
performance goals and behaviour standards.

Supportive leadership - it shows concern for subordinates’ well being

and personal needs.
• Participative leadership - Decision making is based on group
consultation and information is shared with the group.
• Achievement-oriented leadership - Challenging goals are set
and high performance is encouraged while showing confidence in the
groups' ability.
Managerial grid
• It describes the relationship between the leader's
• concern for task and concern for people, but this theory differs in its perspective.
The managerial grid Considers leadership style based on their focus on task and
people.
• The Managerial Grid is based on two behavioral dimensions:

• Concern for People – This is the degree to which a leader considers the needs of
team members, their interests, and areas of personal development when
deciding how best to accomplish a task.

• Concern for Production – This is the degree to which a leader emphasizes

concrete objectives, organizational efficiency and high productivity when
deciding how best to accomplish a task.
• Using the axis to plot leadership ‘concerns for production’ versus
‘concerns for people’, Blake and Mouton defined the following five
leadership styles:
Country Club Leadership –(High People/Low Production)
Produce or Perish Leadership – High Production/Low
People
Impoverished Leadership – Low Production/Low People
Middle-of-the-Road Leadership – Medium
Production/Medium People
Team Leadership – High Production/High People
Group
A group is defined as two or more individuals, interacting and
interdependent, who have come together to achieve particular
objectives.
Groups can be either formal or informal.
• Formal groups – those defined by the organization’s structure.
• Informal groups – alliances that are neither formally structured
nor organizationally determined.
Identify the 5 Stages of Group Development
• First is the forming stage. It is characterized by a great deal of uncertainty about the group’s
purpose, structure, and leadership. Members try to determine what types of behaviors are
acceptable. This stage is complete when members have begun to think of themselves as part of a
group.
• Second is the storming stage. This is a period of intragroup conflict. Members accept the
existence of the group, but there is resistance to constraints on individuality. Conflict arises over
who will control the group. When this stage is complete, there will be a relatively clear hierarchy
of leadership within the group.
• Third is the norming stage. It is one in which close relationships develop and the group
demonstrates cohesiveness. There is now a strong sense of group identity and camaraderie. This
stage is complete when the group structure solidifies and the group has assimilated a common
set of expectations of what defines correct member behavior.
• Next is the performing stage. The structure at this point is fully functional and accepted. Group
energy has moved from getting to know and understanding each other to performing. For
permanent work groups, performing is the last stage in their development.
• For temporary committees, teams, task forces, and similar groups that have a limited task to
perform, there is an adjourning stage. In this stage, the group prepares for its disbandment.
Attention is directed toward wrapping up activities. Responses of group members vary in this
stage. Some are upbeat, basking in the group’s accomplishments. Others may be depressed over
the loss of camaraderie and friendships.
Change management
Change management is a systematic approach to dealing with the
transition or transformation of an organization's goals, processes or
technologies. The purpose of change management is to implement
strategies for effecting change, controlling change and helping people
to adapt to change.
Types of Change
a) Proactive change
b) Reactive change
Lewin's 3-Stage Model of Change:
Factors Affecting Organizational Change
External Forces
• Technology: When there is a change in technology in the organizational environment and other
organizations adopt the new technology, the organizations under focus become less cost effective
and its competitive position weakens. Therefore, it has to adopt new technology, its work
structure is affected and a new equilibrium has to be established.
• Marketing conditions: Since every organization exports its outputs to the environment, an
organization has to face competition in the market. There may be two types of forces which may
affect the competitive position of an organization –other organizations supplying the same
products and, buyers who are not buying the product. Any changes in these forces may require
suitable changes in the in the organization. For example, when Indian economy was liberalized,
there were many foreign organizations that entered the Indian market.
• Social changes: Social changes reflect in terms of people’s aspirations, the needs, and their ways
of working. Social changes have taken place because of the several forces like level of education,
urbanization, feeling of autonomy, and international impact due to new information sources.
These social changes affect the behavior of people in the organization. There, it is required to
make adjustment in its working so that it matches with people.
• Political and legal changes: Political and legal factors broadly define the activities which an
oganisation can undertake and the methods which will be followed by it in accomplishing those
activities. Any changes in these political and legal factors may affect the organization operation.
Internal Forces
• Changes in the managerial personnel: Besides environmental changes there is a change in managerial
personnel. Old managers are replaced by new mangers, which necessitated because of retirement,
promotion, transfer or dismissal. Each new manager brings his own ideas and way of working in the
organization. The relationships, more in the organization. The relationships, more particularly informal ones,
changes because of changes in managerial personnel. Moreover, attitude of the personnel change even
though there is no changes in them. The result in that an organization has to change accordingly.
• Deficiency in Existing organization: Sometimes, changes are necessary because of deficiency in the present
organizational arrangement ad process. These deficiencies may be in the form of unmanageable span of
management, large number of managerial levels, lack in co-ordination between various departments,
obstacles in communication, multiplicity of committees, lack of uniformity in policy decisions, lack of
cooperation between the line and staff, and so on. Beside these internal factors, there are two more internal
factors that give rise to organizational changes.
• Nature of the work force: The nature of work force has changed over a passage of time. Different work
values have been expressed by different generations. Workers who are in the age group of 50 plus value
loyalty to their employers. Workers in their mid thirties to forties are loyal to themselves only. The youngest
generation of workers is loyal to their career. The profile of the workforce is also changing fast. The new
generation of workers has better educational; they place greater emphasis on human values and questions
authority of managers. Their behavior has also become very complex and leading them towards
organizational goals is a challenge for the managers. The employee turnover is also very high which again
put strain on the management.
• To avoid developing inertia: In many cases, organizational changes take place just to avoid developing inertia
or inflexibility. Conscious manager take into account this view of organization that organization should be
dynamic because any single method is not the best tool of management every time. Thus, changes are
incorporated so that the personnel develop liking for change and there is no unnecessary resistance when
major change in the organization are brought about.
Myers Briggs Personality Types
Myers-Briggs theory is an adaptation of the theory of psychological types
produced by Carl Gustav Jung. It is based on 16 personality types, which Jung
viewed as stereotypes (Jung 1921, p. 405). They act as useful reference
points to understand your unique personality (Jung 1957, p. 304). At the
heart of Myers Briggs theory are four preferences. Do you prefer to deal
with:
• People and things (Extraversion or "E"), or ideas and information
(Introversion or "I").
• Facts and reality (Sensing or "S"), or possibilities and potential (Intuition or
"N").
• Logic and truth (Thinking or "T"), or values and relationships (Feeling or
"F").
• A lifestyle that is well-structured (Judgment or "J"), or one that goes with
the flow (Perception or "P").
In Myers Briggs theory, for each pair you prefer one style more than the other. Jung
also allowed a middle group where you like an equal balance of the two. You
combine the letters associated with your preferences to get your Myers Briggs
personality type. For example, having preferences for E, S, T and J gives a
personality type of ESTJ. Although you have preferences, you still use all eight styles
- in the same way that most people are right-handed but they still use both hands.
• Extraversion and Introversion - The first pair of styles is concerned with the
direction of your energy. If you prefer to direct your energy to deal with people,
things, situations, or "the outer world", then your preference is for Extraversion.
If you prefer to direct your energy to deal with ideas, information, explanations or
beliefs, or "the inner world", then your preference is for Introversion.
• Sensing and Intuition - The second pair concerns the type of information/things
that you process. If you prefer to deal with facts, what you know, to have clarity,
or to describe what you see, then your preference is for Sensing. If you prefer to
deal with ideas, look into the unknown, to generate new possibilities or to
anticipate what isn't obvious, then your preference is for Intuition. The letter N is
used for intuition because I has already been allocated to Introversion.
• Thinking and Feeling - The third pair reflects your style of decision-
making. If you prefer to decide on the basis of objective logic, using
an analytic and detached approach, then your preference is for
Thinking. If you prefer to decide using values - i.e. on the basis of
what or who you believe is important - then your preference is for
Feeling.
• Judgment and Perception - The final pair describes the type of
lifestyle you adopt. If you prefer your life to be planned and well-
structured then your preference is for Judging. This is not to be
confused with 'Judgmental', which is quite different. If you prefer to
go with the flow, to maintain flexibility and respond to things as they
arise, then your preference is for Perception.
When you put these four letters together, you get a personality type
code. Having four pairs to choose from means there are sixteen Myers
Briggs personality types.