Name of the subject: Organisation Behavior

Class: FYBBA

Semester : IInd Semester

Unit number: UNIT 3 - Leadership

LEADERSHIP:
Leadership plays an important role in organisation.An organisation minus effective leader would end up
only as confusion of machine s and people.

It is leadership that unleashes the potential of an organisation and transform it to a great one.

Hence Leadership ability is a critical skill that leader must Possess.

Leaders are people who do the right thing; managers are people who do things right. – Professor
Warren G. Bennis

The word "leadership" can bring to mind a variety of images. For example:

• A political leader, pursuing a passionate, personal cause.

• An explorer, cutting a path through the jungle for the rest of his group to follow.
 • An executive, developing her company's strategy to beat the competition.

Leaders help themselves and others to do the right things. They set direction, build an inspiring
vision, and create something new. Leadership is about mapping out where you need to go to
"win" as a team or an organization; and it is dynamic, exciting, and inspiring.

Yet, while leaders set the direction, they must also use management skills to guide their people to
the right destination, in a smooth and efficient way.

In this article, we'll focus on the process of leadership. In particular, we'll discuss the
"transformational leadership" model, first proposed by James MacGregor Burns and then
developed by Bernard Bass. This model highlights visionary thinking and bringing about change,
instead of management processes that are designed to maintain and steadily improve current
performance.

1. Creating an Inspiring Vision of the Future

In business, a vision is a realistic, convincing and attractive depiction of where you want to be in
the future. Vision provides direction, sets priorities, and provides a marker, so that you can tell
that you've achieved what you wanted to achieve.

Therefore, leadership is proactive – problem solving, looking ahead, and not being satisfied with
things as they are.

Once they have developed their visions, leaders must make them compelling and convincing. A
compelling vision  is one that people can see, feel, understand, and embrace. Effective leaders
provide a rich picture of what the future will look like when their visions have been realized.
They tell inspirong stories   , and explain their visions in ways that everyone can relate to.

Here, leadership combines the analytical side of vision creation with the passion of shared
values, creating something that's really meaningful to the people being led.

2. Motivating and Inspiring People

One of the key ways they do this is through expactancy theory  . Effective leaders link together
two different expectations:

1. The expectation that hard work leads to good results.

2. The expectation that good results lead to attractive rewards or incentives.

This motivates people to work hard to achieve success, because they expect to enjoy rewards –
both intrinsic and extrinsic – as a result.
Other approaches include restating the vision in terms of the benefits it will bring to the team's
customers, and taking frequent opportunities to communicate the vision in an attractive and
engaging way.

What's particularly helpful here is when leaders have expert power  . People admire and believe
in these leaders because they are expert in what they do. They have credibility, and they've
earned the right to ask people to listen to them and follow them. This makes it much easier for
these leaders to motivate and inspire the people they lead.

Leaders can also motivate and influence people through their natural charisma and appeal, and
through other sources of power   , such as the power to pay bonuses or assign tasks to people.
However, good leaders don't rely too much on these types of power to motivate and inspire
others.

3. Managing Delivery of the Vision

Leaders must ensure that the work needed to deliver the vision is properly managed – either by
themselves, or by a dedicated manager or team of managers to whom the leader delegates this
responsibility – and they need to ensure that their vision is delivered successfully.

To do this, team members need performance goals that are linked to the team's overall vision.
Key Performance Indicator explains one way of doing this, and our project management section
explains another. And, for day-to-day management of delivering the vision, the mangement by
wandering around approach helps to ensure that what should happen, really happens.

Leaders also need to make sure they manage change  effectively. This helps to ensure that the
changes needed to deliver the vision are implemented smoothly and thoroughly, with the support
and backing of the people affected.

4. Coaching and Building a Team to Achieve the Vision

Individual and team development are important activities carried out by transformational leaders.
To develop a team, leaders must first understand team dynamics. Several well-established and
popular models. and Bruce Tuckman's forming norming storming .

A leader will then ensure that team members have the necessary skills and abilities to do their job
and achieve the vision. They do this by giving and receiving fedback   regularly, and by training
and coaching   people to improve individual and team performance.

Leadership also includes looking for leadership potential in others. By developing leadership
skills within your team, you create an environment where you can continue success in the long
term. And that's a true measure of great leadership

The words "leader" and "leadership" are often used incorrectly to describe people who are
actually managing. These individuals may be highly skilled, good at their jobs, and valuable to
their organizations – but that just makes them excellent managers, not leaders.

So, be careful how you use the terms, and don't assume that people with "leader" in their job
titles, people who describe themselves as "leaders," or even groups called "leadership teams" are
actually creating and delivering transformational change.

A particular danger in these situations is that people or organizations that are being managed by
such an individual or group think they're being led; but they're not. There may actually be no
leadership at all, with no one setting a vision and no one being inspired. This can cause serious
problems in the long term.

Definition:
The process of influencing and supporting others to work enthusiastically towards acheiving

objectives.

Characteristics of a leader:
A great deal of research has been carried out to find out physical,intellectual and personality

characteristics that distinguish leader from non-leaderand sucessful leaders from unsucessful leaders.

Integrity
. Though it may not necessarily be a metric in employee evaluations, integrity is essential for the
individual and the organization. It’s especially important for top-level executives who are charting the
organization’s course and making countless other significant decisions. Our research show that integrity
may actually be a potential blind spot for organizations. Make sure your organization reinforces the
importance of integrity to leaders at various levels.
Ability to Delegate
Delegating is one of the core responsibilities of a leader, but it can be tricky to delegate effectively. — it’s
also to enable your direct reports, facilitate teamwork, provide autonomy, lead to better decision-making,
and help your direct reports grow. In order to delegate well, you also need to build trust with your team.
Communication
Effective leadership and effective communication are intertwined. You need to be able to communicate in
a variety of ways, from transmitting information to coaching your people. And you must be able to
communicate with a range of people across roles,social identities, and more.

Though it may not necessarily be a metric in employee evaluations, integrity is essential for the
individual and the organization. It’s especially important for top-level executives who are charting the
organization’s course and making countless other significant decisions. Our research show that integrity
may actually be a potential blind spot for organizations. Make sure your organization reinforces the
importance of integrity to leaders at various levels.
Ability to Delegate
Delegating is one of the core responsibilities of a leader, but it can be tricky to delegate effectively. The
goal isnt just to free yourself up— it’s also to enable your direct reports, facilitate teamwork, provide
autonomy, lead to better decision-making, and help your direct reports grow. In order to delegate well,
you also need to buld trust in your team.
Communication
Effective leadership and effective communication are intertwined. You need to be able to communicate in
a variety of ways, from transmitting information to coaching your people. And you must be able to
communicate with a range of people across roles, and more.
Self-Awareness
While this is a more inwardly focused skill, self-awareness is paramount for leadership. The better you
understand yourself, the more effective you can be. Do you know how other people view you, or how you
show up at work?
Gratitude
Gratitude will actually make you a better leader. Gratitude can lead to higher self-esteem, reduced
depression and anxiety, and even better sleep. Few people regularly say “thank you” at work, even though
most people say they’d be willing to work harder for an appreciative boss. Follow these tips for giving
thanks and practicing more gratitude.
Learning Agility
Learning agility is the ability to know what to do when you don’t know what to do. If you’re a “quick
study” or are able to excel in unfamiliar circumstances, you might already be learning agile. But anybody
can foster learning agility through practice, experience, and effort.
Influence
For some people, “influence” feels like a dirty word. But being able to convince people through logical,
emotional, or cooperative appeals is a component of being an inspiring, effective leader. Influence is quite
different from manipulation, and it needs to be done authentically and transparently. It requires emotional
intelligence and trust-building.
Empathy
Empathy is correlated with job performance. If you show more empathy towards your direct reports, our
research shows you’re more likely to be viewed as a better performer by your boss. Empathy can be
learned, and in addition to making you more effective, it will also improve work for you and those around
you.
Courage
It can be hard to speak up at work, whether you want to voice a new idea, provide feedback to a direct
report, or flag a concern for someone above you. That’s part of the reason courage is a key skill for good
leaders. Rather than avoiding problems or allowing conflicts to fester, courage enables leaders to step up
and move things in the right direction.
Respect
Treating people with respect on a daily basis is one of the most important things a leader can do. It will
ease tensions and conflict, create trust, and improve effectiveness. Respect is more than the absence of
disrespect, and it can be shown in many different ways.
Gratitude
Gratitude will actually make you a better leader. Gratitude can lead to higher self-esteem, reduced
depression and anxiety, and even better sleep. Few people regularly say “thank you” at work, even though
most people say they’d be willing to work harder for an appreciative boss. Follow these tips for giving
thanks and practicing more gratitude.
Learning Agility
Learning agility is the ability to know what to do when you don’t know what to do. If you’re a “quick
study” or are able to excel in unfamiliar circumstances, you might already be learning agile. But anybody
can foster learning agility through practice, experience, and effort. .
Influence
For some people, “influence” feels like a dirty word. But being able to convince people through logical,
emotional, or cooperative appeals is a component of being an inspiring, effective leader. Influence is quite
different from manipulation, and it needs to be done authentically and transparently. It requires emotional
intelligence and trust-building.
Empathy
Empathy is correlated with job performance. If you show more empathy towards your direct reports, our
research shows you’re more likely to be viewed as a better performer by your boss. Empathy can be
learned, and in addition to making you more effective, it will also improve work for you and those around
you.
Courage
It can be hard to speak up at work, whether you want to voice a new idea, provide feedback to a direct
report, or flag a concern for someone above you. That’s part of the reason courage is a key skill for good
leaders. Rather than avoiding problems or allowing conflicts to fester, courage enables leaders to step up
and move things in the right direction. .
Respect
Treating people with respect on a daily basis is one of the most important things a leader can do. It will
ease tensions and conflict, create trust, and improve effectiveness. Respect is more than the absence of
disrespect, and it can be shown in many different ways.
Research findings indicate that sucessful leader posess the following charateristics:
1) Drive: This includes drive for achievement ,ambition,high energy, tenacity and initiative.

2) Intelligence: Leaders are generally more intelligent than followers.It was found that leaders

have higher intelligence than the average intelligence of the followers.

3) Energy Level and stress tolerance: Leaders are very energetic and have a ability to

tolerate stress. These qualities enable the leader to deal with role conflicts and

handle the pressure of making important decisions.

4) Optimistic:Most leaders are highly optimistic .they always look at brighter side of
 life for them ,the glass is rather half-full than half-empty.Even in worst situation

they have something to smile about.

5) Emotional Maturity: Leaders are emotionally mature and stable. They are not

self-centered and have great self-control ,they donot get easily upset or excited.

Emotional maturity help the leaders to maintain co-operative and good relations with
subordinates ,peers and superior.

6) Honesty and Integrity: Leaders are trustworthy , reliable and open .they are not hypocrates

and their behavior matches the values they hold.

7) Leadership motivation: This is the desire to influence and lead others but not to seek power

for its own sake .Leaders exercise influence to reach shared goals.

8) Self-Confidence: They have faith in their own abilities and believe in themselves .They are

persistent and continue to work towards goals,despite problems and setbacks.

9) Cognitive Ability: Leaders have high ability to integrate and interpret large amount of data.

10) Knowledge of business: leaders are well-informed about the industry and other technical

matters.

11) Creativity: Leaders have original and innovative ideas .They are able to think out of box.

They show creativity by thinking of new and better goals.

12) Flexibility: Leaders have ability to adapt to the needs of the followers and requirement of
the situation .they are able to make timely and appropriate changes.

13) Understanding of Human nature: Leaders are able to give leaders sense of personal wealth.

and sense of importance.They understand their followers very well.

14) Social Distance: Leader maintain certain degree of social and psychological distance

from their followers .the distance is very subtle.

Traits are important but skills also play a vital role:

1) Technical Skills:Technical skill is the ability to apply to spealised knowledge or expertise

For Eg: the skills learnt by an engineer ,surgeon and accountant etc.Technical skills

involve things.

2) Interpersonal Skills: Interpersonal skills refer to ability to work with understand and motivate
 other employees both individually and in group.It is ability to maintain co-operative

relationship with people. Interpersonal relationship are concerned with people at work.

3) Conceptual Skills: Conceptual skills are concerned with ability to analyse and diagnose

complex situation .It is the ability to process and interpret information perceive trends

and recognise changes.Conceptual skills deal with ideas.

FUNCTIONS OF A LEADER:
Aleader has to perform many function.The functions are different roles that leader has to

perform depending on the type ,structure and goal of the group.

Some of the different functions thatt leader has to perform:

1) Policy Maker: The important function of a leader of any social group is to plan out the group goals ,
objectives and policies.

2) Planner: The leader also functions as a planner.He decides the ways and means that are

to be adopted to acheive the objectives of the group.

3) Executive: Setting goals and drawing plans is of no use unless they are implemented, In

his executive function ,leader has to ensure that plans are executed.

4) External group representatives: The leader has to assume the role of representatives

of the group in its external relations, all incoming and outgoing communications are

channeled through leader.

5) Controller of internal group relationship: The leader uses the power to give rewards and punishment to
motivate ,discipline and control groups .He rewards members to contribute

and work towards attainent of goals.

6) Controller of reward and punishment: The leader uses the power to give reward and punishment to
motivate,discipline and control group, He reward members to contribute and work towards attainment of
group.

7) Arbitrator and Meditator: the leader acts as a arbitrator and meditator ,when there are conflicts and
differences in the group, he must resolve disputes in fair and just manner.

8) Exampler: The leader serves as a role model as a member of the group.He has to be source

of psychological and moral support to the organisation. He serves as an example for others to
 set and follow high standards.

9) Father figure: The leader has to sometime play an emotional role of the father figure for members of
the group. He has to be source of psychological and moral support to the followers.

10) Scape Goat: the leader is accountable for the performance of the group ,Hence when the group does
well the leader has lot of credit for it , when the group performs poorly or fail ,

the leader is held responsible for it.

11) Entreprenuer: The leader has to be on constant lookout for new oppurtinities.

He keeps a watchful eye on the external enviornment and initiates plan for development

of new project.

Leadership Styles :
1) Autocratic/ Authoritarian Leader : The leader expects a complete obidience from subordinates for all
decision making .Decision -making is centralised. Autocratic leadership is a form of management style in
which one leader or member of the organisation takes decisions on behalf of the company. This type of
leadership style is seen mostly in businesses which are relatively small with fewer employees.

This type of leadership style is only effective in organisations where the nature of work requires quick
decision-making. The sole responsibility of the decision and the outcome is with the leader. It is
considered to be a flexible leadership style but some would argue that it is outdated now.

However, there are certain characteristics of autocratic leadership such as - no inputs from other group
members are taken, group leader(s) dictate all the tasks or distribute responsibilities among other
employees, and no reward or recognition is given to employees to boost morale.

Some experts argue that this type of leadership style can be damaging rather than rewarding in the long
run as it resembles that of a dictator. It leads to low employee morale, which in turn may lead to attrition
in many cases.

Advantages:

1) Decision- making is quick.

2) Provides positive results with things done in speed.

Disadvantages:

1) Low morale and frustation among employees.

2) subordinates avoid initiatives.

3) creativity and potential of subordinates is not utilised.

4) subordinate cannot get developed for higher responsibility.

2) laissez fair : maximum freedom is allowed to subordinates for decision-making and policy.

The laissez-faire style of leadership is often dismissed as one that leads to poor group outcomes, but it
can be appropriate and effective in a variety of situations. In a setting where group members are highly
skilled and motivated, it can actually produce excellent results. Because team members get to exercise a
great deal of freedom free from excessive micromanaging, they often feel more inspired and creative.

If you tend to be more of a laissez-faire leader, you may find it helpful to think about the sort of
situations where you might excel in a leadership role. In settings where the group needs more oversight
or direction, you may find that you need to consciously focus on adopting a more authoritarian or
democratic approach.7 By examining your own style, you can hone your skills and become a better
leader.

Advantages:

1)Build confidence in subordinates

2) self-confidence

3)oppurtunity to develop talent.

4) positive effect and job-satisfaction of subordinates.

Disadvantages:

1) style of leadership may not work under all situation.

2)applicable only when subordinates are competent.

3) Leader doesnot provide guidance and support.

4) subordinates may work in different direction.

3) Democratic/Participative style: Subordinate participate in decision making and give

suggestion to leaders.

Democratic Leadership, also known as Participative Leadership, is where individuals who would typically
be considered unequal by hierarchal standards have shared power in making decisions.
Democratic leaders emphasize collaboration and the free-flow of ideas.

While these leaders do allow shared participation in decision-making, they often decide who is a part of
the group or committee tasked with making decisions.

Responsibility is shared among all members of staff with the leader present to offer guidance and keep
discussions balanced and controlled.

Participative leadership instill mutual respect among those involved that create candid and open
conversations.

Democratic leaders can often be seen in positions in nonprofit organizations, school boards, and
forward-thinking companies.

1) High motivation to Employees

2) Implementation of decision is quick

3) Employees are loyal to employers.

4) Willing acceptance.

Disadvantages:

1) Delay in decision making.

2) Sometimes employees are not experts.

3) No value for leader in mind of employees.

LEADERSHIP THEORIES:

1) Leadership behavior can be taught:

Ohio State University:
1) Assumption :leader can be trained

Initiating Structure:

a) structure own employee role for goal achievement.

b) Assign group members for task.

c)Assign group members to task.

d) Emphasise meeting deadlines.

Consideration:

The extent to which leader is likely to have:

a)relationship of trust and respect with employees.

b)Concern for their comfort, well-being and satisfaction.

c) Help with personal Problems.

d) Friendly , approachable and treat all employees as equal.

High consideration leaders:

a) Followers are more satisfied with their jobs.

b) More motivated.

c) Respect the leader more.

High initiating structure:

1) Higher level of group and organisational activity.

2) More positive performance evaluation.

University of Michigan studies:

Emphasizing interpersonal relationship:

Taking a personal interest in the needs of employees and accepting individual differences among
members.

Production oriented leaders are ones who emphasise technical or task aspect of the job.

Contingency theory of leadership:

The theort is an organisational theory, and says that there is no best way to organise a

co-operation to lead a company or to make decision, Instead the optimal course of

action is contingent(dependent) upon internal and external situation.The contingent

leader effectively applies their own style of leadership.

Main ideas underlying contingency model are:

Contingency model focuses on contingency model of leadership in organisation,The

model contains relationship with leadership styles and favourableness of situation.

1) Leader-Member relationship: It is high if the leader is accepted and respected by employees.

2) Degree of task-structure: It is high if the task is structured.

3) Leader Position Power: The leaders power is high.

Leadership Theories:

MANAGERIAL GRID THEORY:

1)managerial grid theory is developed by Blake and Mountain.

2) Based on 2 dimensions:

a)concern for people

b)concern for production.

It is 9*9 Matrix which creates 81 positions in which leadership may fall:

Impoverished Leader (coordinate 1,1)

The impoverished or indifferent manager is mostly ineffective for creating systems

that gets the job done and with interest in satisfying and motivating people,

The results are inevitably disorganised, dissatisfaction and harmony.

Co-ordinate (9,1)

1)Task-oriented: This kind of manager is autocratic and has strict work rule policies and procedure.

2) He views punishment as an effective way of motivating team members.

3) The approach can drive impressive production results at first,but low team

morale, and motivation will ultimately affect peoples performance.

Co-ordinate(5,5)

Middle of the road (status quo)

1) Middle of the road or status quo manager tries to balance results and people

2) The strategy is mediocre in nature.

3)leader is diplomatic
Co-ordinate(1,9)

Country club

1)The leader is too friendly and highly concerned to people.

2) This results in work environment that is relaxed and fun ,but where productivity suffers

there is no direction and control.

Co-ordinate(9,9)

High concern for people and production:

Team management is most effective leadership style .It reflects a leader who is

Passionate for his work and who do the best he can for the people who work with.

TRAIT theory:

" Leaders are born,not made"

There are certain qualities and trait which are essential to be a successful leader

Physical,moral, Mental,Eductional ,technical education.

Important traits:

1) Intelligence

2)psychological factors

3) Emotional stability

4) Inner Motivational Drive

5) Human Relation Attitude

6)vision and foresight

7) Empathy

8) fairness

9)Technical skill

10) Open mindedness

11) Art of communication

12) Social skill.

Criticisms:

1)Lack of uniformity

2) Problem of measuring traits.

3) No evidence about different traits in leader

4) Theory cannot hold good for all sets of circumstances.