1. BUSINESS LEAD

2. SYLLABUS
 Leading as a function of management, leading concept:
meaning & definition
 Leadership and vision, leadership traits, classic
vikas vadakara
leadership styles
 Leaders behaviour- Likert’s four systems, Managerial
Grid
 Overlapping role of leader and managers
 Organization context of communication, Directions of
communication, channels of communication, barriers of
communication
 Motivation and rewards, Rewards and performance
 Hierarchy of need theory and two factory theory.
Integrated model of motivation

3. LEADERSHIP MEANING :
 One of the managerial functions.
 Leadership is both process and property
vikas vadakara
 As a process: it focuses on what leaders actually
do?
 It is use of influencing power to shape group or
organizational goals
 Motivating others behaviour toward the
achievement of those goals
 Helping in defining group or organizational culture

4.  As a property: it is the set of characteristics
attributed to individuals who are perceived to be
leaders
 So, leader is someone who can influence others
and who has managerial authority.
vikas vadakara
 Leadership is what leaders do, the process of
influencing group to achieve goals

5. DEFINITION
 George Terry, “ leadership is the activity of
influencing people to strive willingly for mutual
objectives”
vikas vadakara
 Peter Drucker, “leadership is the lifting of man’s
vision to higher sights, the raising of man’s
performance to higher standards, the building of
man’s personality beyond its normal limitations”

6. LEADERSHIP AND VISION
 Leaders must have vision. They share a dream and
direction that other people want to share and follow.
 Leadership vision goes beyond your written
vikas vadakara
organizational mission statement and your vision
statement
 For leaders vision is not just a dream, it is a reality that
has yet to come into existence. It gives a leader
purpose, his devotion to inspire others.

7. LEADERS VS MANAGERS
 Are all managers are leaders?
 Yes, as leading is one of the 4 managerial functions
manager should be leader.
vikas vadakara
Leaders Managers
Innovate Administer
Develop Maintain
Inspire Control
Long term view Short term view
Ask what and why Ask how and when
Originate Initiate
Do the right things Do the things right
Have followers Have subordinates

8. vikas vadakara

9. LEADERSHIP TRAIT
 Trait – personal qualities and characteristics
 There are certain personal qualities and
vikas vadakara
characteristics which are essential to be a
successful leader
 Based on these traits or qualities, some
philosophers say, leaders are born and not made
 This approach regarded as one of the earliest
approaches to leadership and termed as Trait
Approach or Trait Theory
 Trait approach involves analyzing
personal, physiological and physical traits of strong
leaders

10.  Traits might include:
 Intelligence
 Assertiveness
 Above average height
vikas vadakara
 Good vocabulary
 Attractiveness
 Self confidence
 Integrity- do what you say, don’t compromise for
temptations like money, greediness etc
 Creativity to solve problems
 Initiative

11. CRITICISM FOR TRAIT APPROACH
 Leaders are both born and made
vikas vadakara
 Leadership qualities can be developed
 Can’t recognize that one successful leader has got
these many traits
 Based on the situation or conditions traits may
vary, or leaders may tend to show varied traits

12. CLASSIC LEADERSHIP STYLES
 Behavioural pattern which a leader shows while
influencing followers is termed as leadership style
vikas vadakara
 Based on the degree of use of power, 3 styles can
be identified;
 Autocratic/ Authoritarian/ Directive Style
 Participative/Democratic/Consultative Style
 Laissez Faire/Free Rein Style

13. AUTOCRATIC/ AUTHORITARIAN/ DIRECTIVE
STYLE
 Decision making power is centralized and rests with
leader
 Leader exercises close supervision over followers
vikas vadakara
and uses rewards and punishment to influence
followers behaviour
Merits Demerits
Enables quick decision No participation from
making followers
Strict discipline Creates conflicts, stress
Motivation through among followers
rewards and punishment Low morale
Less satisfaction from
followers side

14. PARTICIPATIVE/DEMOCRATIC/CONSULTATIVE
STYLE
 Leader allows followers participation while taking
decision
vikas vadakara
 This style considers common interest of both leader
and followers
 Increases followers morale

15. LAISSEZ FAIRE/FREE REIN STYLE
 Leader does not lead and avoids power
 Complete freedom is given to followers
vikas vadakara
 Decision making power rests with followers
 Leaders may give advice if followers need any help
 No control over followers
Demerits:
 Lack of control and discipline
 Fails if followers are not matured
 May lead to confusion, chaos

16. LEADERS BEHAVIOUR
 After the trait approach, thinkers to overcome
limitations of the trait approach, started focusing on
vikas vadakara
understanding leaders behaviour.
 Instead of studying what leaders have, what are
their qualities. Thinkers focused on how they
behave and behaviour patterns in situations.
Under this approach we have to study:
 Likert’s Four Systems and
 Managerial Grid

17. LIKERT’S FOUR SYSTEMS
 Likert and his associates of the University of
Michigan, USA, have conducted studies on
vikas vadakara
Leadership styles and patterns in number of
organizations
 Likert developed 4 systems/models known as
Systems of Management
 These systems have been developed based on the
6 elements which are related to management
process;

18. Characteristics System 1 System 2 System 3 System 4
Exploitative Benevolent Consultative Democratic
Authoritative Style Authoritative Style Authoritative Style Participative style
Trust in Substantial, Complete trust on
subordinates None To some extent justifiable subordinates
Rewards, Group
vikas vadakara
Rewards and punishment and participation and
Motivation Fear and threat punishment involvement involvement
Fairly widespread Widespread and
Very limited and ans sometimes both downward
Communication downward Limited upward and upward
Personal
Interaction/kno
wing people Very limited Limited Moderate Intensive
Decision Some participation Fully participative
making Centralized Mostly centralized is allowed method
Moderate Extensive
Type of control Centralized Mostly centralized delegation delegation

19. EXPLOITATIVE AUTHORITATIVE STYLE
 Management uses fear and threats; communication
is top down with most decisions taken at the top;
vikas vadakara
superiors and subordinates are distant.
BENEVOLENT AUTHORITATIVE STYLE
 Management uses rewards; information flowing
upward is restricted to what management wants to
hear and whilst policy decisions come from the top
some prescribed decisions may be delegated to
lower levels, superiors expect subservience lower
down.

20. CONSULTATIVE AUTHORITATIVE STYLE
 Management offers rewards, occasional punishments;
big decisions come from the top whilst there is some
wider decision making involvement in details and
communication is downward whilst critical upward
vikas vadakara
communication is cautious.
DEMOCRATIC PARTICIPATIVE STYLE
 Management encourage group participation and
involvement in setting high performance goals with
some economic rewards; communication flows in all
directions and is open and frank with decision making
through group processes with each group linked to
others by persons who are members of more than one
group called linking pins; and subordinates and
superiors are close. The result is high productivity and
better industrial relations

21. CONCLUSION
 System 1 is very poor
 System 4 is the ideal style, and an
vikas vadakara
organization can adopt it.

22. MANAGERIAL GRID
 Developed by Robert Blake and Jane
Mouton, psychologists at the University of Texas
 Used a chart called Managerial Grid to describe
leaders style.
vikas vadakara
 They identified 5 styles and used the terms concern
for people and concern for production
 These 2 dimensions are plotted on a 9 point scale
on 2 separate axis.
 Concern for people is shown on vertical
axis, concern for production is shown on horizontal
axis.
 Managerial Grid: A grid of two leadership
behaviours – concern for people and concern for
production – which resulted in 5 different leadership
styles.

23. vikas vadakara

24. LEADERSHIP STYLES IN MANAGERIAL GRID
1. Task Management or Authority Compliance [9,1]:
Management shows maximum concern for production
vikas vadakara
and least concern for people
2. Country Club Management [1,9]
Reverse of task management, where management
shows more concern for people and least concern for
production
3. Impoverished Management [1,1]
Management shows least concern for both production
and people. Leader thinks that minimum effort is
sufficient to get the work done and won’t focuses on
followers and results.

25. CONTD…
4. Team Management [9,9]
Shows concern for both people and production.
Focuses on synergy concept 1+1 = 3. Through
vikas vadakara
committed people work accomplishment. Focus on
people task related morale.
5. Middle of the Road Style [5,5]
Management shows a balanced concern for people
and production. Neither too much production is
expected, nor too much concern for people is
expressed.

26. CONCLUSION
 According to Blake and Mouton, Team
Management [9,9] is the ideal one. Because here
vikas vadakara
results are achieved through focusing on people.
High concern for both will be seen. This can be
achieved based on active participation
 But there is no one best leadership style under all
conditions. So leaders have to select the style
based on the situations and followers.

27. OVERLAPPING ROLES OF LEADERSHIP
& MANAGEMENT
 Leadership is an important element in an
organization as it plays a role of creating and
shaping organizational culture and setting a
vikas vadakara
direction for the progress of the organization.
Without this management has no role or cause for
existence
 Management on the other hand, through systematic
arrangements and processes, gives way for
effective leadership development at every level in
the organization
 When an executive is doing planning, organizing,
controlling he is managing, when he is guiding,
motivating and influencing others behaviour, he is
leading

28. CONTD..
 Leadership is a function of looking, thinking and
bringing change in the organization.
vikas vadakara
 Management is a function of ensuring order and
consistency in the organization
 Leadership and management are inseparable
aspects of an organization.
 The effectiveness of one is dependent on the
effective performance of the other.

29. COMMUNICATION
 The word communication has been derived from
the Latin word “communist” means COMMON.
vikas vadakara
 Communication means exchange of
ideas, facts, opinion, information and understanding
between two or more persons
 Communication need not be in written or spoken
words
 It may happen through symbols, actions, gestures
etc
 So it is the process of transmitting information from
one person to another

30. DEFINITION
Allen, “ Communication is sum of all the
things one person does when he wants to
vikas vadakara
create understanding in the mind of another.
It is a bridge of minds. It involves a
systematic and continuous process of
telling, listening and understanding”
George Terry, “ Communication is an
exchange of facts, ideas, opinions or
emotions, by two or more persons”.

31. COMMUNICATION PROCESS
vikas vadakara
Sender Encode Medium Decode
Feedback Receiver

32. DIRECTIONS OF COMMUNICATION IN
ORGANIZATION
 Upward communication
Vertical communication
 Downward communication
vikas vadakara
 Lateral or horizontal communication
 Diagonal or crosswise communication
 Inward communication
 Outward communication

33. VERTICAL COMMUNICATION
Marketing
vikas vadakara
Manager
Downward Upward
Communication Communication
Marketing
Supervisor

34. LATERAL OR HORIZONTAL COMMUNICATION
vikas vadakara
Marketing Production
Manager Manager

35. CROSSWISE OR DIAGONAL COMMUNICATION
Marketing
Manager Training Manager
vikas vadakara
Marketing Training
Supervisor Supervisor
Communication between persons at different levels
who have no direct reporting relationships
Communication between marketing manager and
training supervisor regarding training few employees of
marketing department

36. INWARD AND OUTWARD COMMUNICATION
 All information received by the organization from
external agencies – Inward Communication
 All information send by organization to external
vikas vadakara
organizations- Outward Communication
 External Agencies are;
 Other organizations
 Government
 Suppliers
 Customers
 Competitors
 Shareholders
 Media

37. Contd..
Communication
Communication
vikas vadakara
External External
Organization
Agencies Agencies

38. INWARD OUTWARD
COMMUNICATION MAY BE COMMUNICATION MAY BE
IN THE FORM OF IN THE FORM OF
 Letters  Letters to other
 Emails companies
vikas vadakara
 Offers  Emails
 Orders  Offers to customers
 Requests  Ads
 Suggestions  Media interaction
 Complaints  Negotiations
 Notices  Tenders
 Feedbacks etc  Telephones etc

39. CHANNELS OF COMMUNICATION
 Channel or medium is the point through which the
communication passes
 Channels can be Formal or informal.
vikas vadakara
Informal Channel
 Communication flows informally.
 This type of channel exists in informal organization
structure
 Example: communication flows between marketing
supervisor, accountant and training manager.

40. FORMAL CHANNEL
 Communication flows orderly, in a timely and
accurate manner.
 Communication passes through officially
recognized positions
vikas vadakara
MD
Top Mgt
Middle level Mgt
Front line Mgt
Employees

41. BARRIERS TO COMMUNICATION
 Individual barriers
 Conflicting signals: difference in what one
vikas vadakara
says and what he does
 Lack of reliable information sources
 Lack of interest to communicate
 Poor listening skills
Overcoming Individual Barriers
 Develop good listening skill
 Encourage two way communication

42.  Organizational Barriers
 Semantics : Misinterpretation of
words, same word having different meaning
 Noise
vikas vadakara
 Language differences
Overcoming Organizational Barriers
 Have proper follow up
 Reduce factors which causes noise
 Regulate information flow
 Be aware of language and meaning

43. MOTIVATION, REWARDS, PERFORMANCE
MOTIVATION:
 Every organization must
 Attract competent people and retain them with it
vikas vadakara
 Allow people to perform task for which they are
hired
 Stimulate people to go beyond themselves in their
work
Thus if an organization wants to be effective, it has to
address the challenges involved in influencing
people behaviour or their desires.

44.  Basic principle is that: performance of an individual
depends on his or her ability backed by motivation
 So Performance = f [ ability x motivation]
 Ability : refers to skill and competence of the person
vikas vadakara
to complete the task
 Motivation : is the persons desire to complete the
task
 Organization becomes successful when a person
has both ability or skill and desire to complete the
task

45. DEFINITION
vikas vadakara
Griffin, “motivation in simple terms refers
to the set of forces that causes people to
behave in certain ways”

46. IMPORTANCE OF EMPLOYEE MOTIVATION
 A challenging element in an organization:
 Individual performance is generally determined by 3
vikas vadakara
things; Work environment [resources needed to do
the job], Ability [capability/ skills to do the job] and
motivation [desire to do the job].
 If an employee faces resources problem, manager
can provide it, if he lacks ability, manager can train
him, but if motivation is the problem, manager’s
task will become more challenging.
 That’s what we say, motivation is a challenging task
in an organization.

47. IMPORTANCE OF EMPLOYEE MOTIVATION
CONTD….
 Effective use of resources: effective and efficient
use of resources depends upon ability and desire of
vikas vadakara
employees. Highly motivated people make optimum
utilization of resources
 Achievement of organizational goals
 Reduction in employee turnover and absenteeism
 Healthy relationship among managers and
subordinates

48. REWARD
 Expectation for the work
 People join organization expecting better rewards
vikas vadakara
 Providing rewards is considered as one of the
motivational strategies
 Rewards can be in monitory or non monitory terms
 Monitory rewards:
salary, incentives, commission, bonus given in cash
 Non monitory rewards : gifts, facilities, coupons etc

49. REWARD SYSTEMS TO MOTIVATE PERFORMANCE
OR PERFORMANCE BASED REWARD SYSTEM
 Rewards are determined on the basis of
performance. Performance can be
vikas vadakara
 Individual performance
 Group performance
 Organizational performance

50. INDIVIDUAL REWARDS
 Individual performance is considered while
providing rewards.
vikas vadakara
Rewards can be
 Piece rate: pay to units produced
 Commission : sales people for actual sales done
 Merit pay: individual performance or skills are
considered

51. GROUP REWARDS
 Rewards based on group or team performance
vikas vadakara
 Gain sharing: gain achieved by reducing the cost
or producing more will be shared among group
members
 Bonus: profit will be given as bonus

52. ORGANIZATIONAL REWARDS
 Whole organization’s performance will be
considered
vikas vadakara
 Employee Stock Ownership Plans: ESOP –
employees will get company shares & dividends
 Profit sharing: profit earned will be distributed to all
employees
 Balanced Score Card: employees are given bonus
for improved performance in four key areas:
Financial performance, customer
satisfaction, internal process improvement, learning
and innovation.

53. MOTIVATIONAL THEORIES
MASLOW'S NEED HIERARCHY THEORY
 Abraham Maslow, a human relationist
developed this theory
vikas vadakara
 Maslow argued that people are motivated to
satisfy 5 need levels
 These 5 need levels constitute a hierarchy
 An individual is motivated first to satisfy his/
her basic needs
 Once he is satisfied with basic needs, he
will move to next need level
 This process continues till he reaches the
self actualization level

54. MASLOW’S NEED HIERARCHY
vikas vadakara

55. MERITS DEMERITS
 People from different
countries or background
 Theory presents
have different hierarchy of
motivation as a needs
vikas vadakara
constantly changing
 Hierarchy of needs does
force not exist in the same order.
Example: person satisfying
 Simple to understand his esteem needs can not
forget to satisfy his basic
need i.e., food
 This is not a theory of work
motivation. Maslow himself
is not intended to relate
these needs to work place

56. HERZBERG’S TWO FACTOR THEORY / TWO
FACTORY THEORY OF MOTIVATION
 Herzberg developed the two factor theory by
interviewing 200 accountants and engineers
 He asked them about two occasions:
vikas vadakara
 When they felt extremely good or when they had been
satisfied or motivated about their job
 When they felt extremely bad or when they had been
dissatisfied or demotivated about their job
 Surprisingly he found that, the absence of certain job
factors tend to make workers dissatisfaction. But the
presence of these factors does not produce high level of
motivation. They merely help to avoid dissatisfaction

57. CONTD…
 Example: a person might identify “ low pay” as a
dissatisfaction factor. But he would not necessarily
mention “high pay” as a cause of satisfaction.
vikas vadakara
Instead factors like recognition, rewards etc were
cited as motivational or satisfaction factors
 Herzberg called the factors influencing the
satisfaction level of employees as Motivation
factors
 Factors which cause dissatisfaction as Hygiene or
Maintenance Factors.

58. CONTD…
 The two factor theory suggests that peoples’
satisfaction and dissatisfaction are influenced by two
independent sets of factors – motivation factors and
hygiene/ maintenance factors
vikas vadakara

59. INTEGRATED MODEL OF MOTIVATION
 This theory integrates various motivational theories
to have a better model of motivation
vikas vadakara
 In this theory inputs are taken from
 Maslow’s need hierarchy theory
 Reinforcement theory
 Equity theory
 Expectancy theory

60. INTEGRATED MODEL
Individual
Ability Perceived equity &
value of rewards
vikas vadakara
Motivation
Goal Satisfaction
Oriented
Work
Rewards with Rewards
Work Effort Performance
Persistence
Dominant
Organization Reinforcement needs
Support

61. vikas vadakara