Based on MG university BSc Psychology Ob 5th sem

1. Leadership in Organization
Module 5
MG University BSc Psychology (PY5CRT 14)
Foundations of organizational behaviour

2. What is Leadership
• The Handbook of Leadership, defines leadership as “an interaction
between members of a group. Leaders are agents of change; persons
whose acts affect other people more than other people’s acts affect
them. Leadership occurs when one group member modifies the
motivation or competencies of others in the group.”

3. • Importance of being a change agent—being able to affect followers’
behavior and performance.
• The effective leader may have to deal with individual, group, and
organizational goals.

4. Which is the accurate definition?
• Bass concludes that: ‘ There are almost as many different definitions
of leadership as there are persons who have attempted to define the
concept.’ According to Crainer there are over 400 definitions of
leadership and ‘it is a veritable minefield of misunderstanding and
difference through which theorists and practitioners must tread
carefully.

5. Leadership or Management?
• Managers tend to adopt impersonal or passive attitudes towards goals. Leaders adopt a more
personal and active attitude towards goals.
• In order to get people to accept solutions, the manager needs continually to co-ordinate and
balance in order to compromise conflicting values. The leader creates excitement in work and
develops choices that give substance to images that excite people.
• In their relationships with other people, managers maintain a low level of emotional involvement.
Leaders have empathy with other people and give attention to what events and actions mean.
• Managers see themselves more as conservators and regulators of the existing order of affairs with
which they identify and from which they gain rewards. Leaders work in, but do not belong to, the
organisation. Their sense of identity does not depend upon membership or work roles and they
search out opportunities for change.

7. Skills of a Leader
• The ability to use power effectively: A leader inherits power by virtue of
his appointment. Known as the legitimate power apart from the above he
achieves willing obedience by using one or more of power bases.
• An ability to comprehend: The ability to comprehend relates to
understanding people, their needs, expectations and what a leader has
been doing to satisfy them. This is a continuous process that gives a leader
the understanding of his subordinates and an ability to explore the
situation to his advantage to get the organizational goal achieved.

8. • Ability to inspire: Leader must identify each individual’s capabilities, skill
and inspire them. Inspiration emanates from a leader who may have
charm, an appeal, devotion to duty, which subordinates further want to
enhance them by loyally obeying the leader willfully. Inspirations also
come from charismatic personality of the leader. Subordinates promote
what leader desires.
• Leadership style: Leadership style is firstly the ability of a leader to act in a
manner that will develop a climate conducive to the response from the led
and secondly arouse motivation among the employees, leader must design
and maintain an environment for efficient performance.

9. Leadership process
• Leadership is a process, a complex and dynamic exchange relationship
built over time between leader and follower and between leader and
the group of followers who depend on each other to attain a mutually
desired goal.

11. The process of leadership is separate and distinct from the leader (the person
who occupies a central role in the group). The process is a complex, interactive,
and dynamic working relationship between leader and followers. This working
relationship, built over time, is directed toward fulfilling the group’s
maintenance and task needs. Part of the process consists of an exchange
relationship between the leader and follower. The leader provides a resource
directed toward fulfilling the group’s needs, and the group gives compliance,
recognition, and esteem to the leader. To the extent that leadership is the
exercise of influence, part of the leadership process is captured by the
surrender of power by the followers and the exercise of influence over the
followers by the leader.

13. Formal and informal leadership

14. Trait Theory of Leadership

15. Trait Theory of Leadership
• Theory that attempts to identify specific characteristics (physical,
mental, personality) associated with leadership success. Relies on
research that relates various traits to certain success criteria.

16. • This approach assumed that a finite number of individual traits of
effective leaders could be found.
• Personnel testing component of scientific management supported the
trait theory of leadership.
• Early studies of leaders defined them by traits they were supposed to
exhibit. Sometimes it was also called “attributes” that the leader
possesses. The theory therefore was called “trait theory” or attribute
theory of leadership. It is also known as “great man’s” theory.

19. Leadership Traits
• Adaptability and flexibility: Effective leaders don't get stuck in a rut. They
are able to think outside of the box and adapt quickly to changing
situations.
• Assertiveness: A great leader is able to be direct and assertive without
coming off as overly pushy or aggressive.
• Capacity to motivate people: A great leader knows how to inspire others
and motivate them to do their best.
• Courage and resolution: The best leaders are brave and committed to the
goals of the group. They do not hide from challenges.

20. • Creativity: Perhaps most importantly, great leaders not only possess their own
creativity, but they are also able to foster creativity among members of the
group.
• Decisiveness: A great leader is capable of making a decision and is confident in
his or her choices.
• Eagerness to accept responsibility: Strong leaders take on responsibility and
don't pass the blame on to others. They stand by their success and take
ownership of their mistakes.
• Emotional stability: In addition to being dependable overall, strong leaders are
able to control their emotions and avoid overreactions.
• Intelligence and action-oriented judgment: Great leaders and smart and make
choices that move the group forward.

21. • Need for achievement: Strong leaders have a need to succeed and help the
group achieve goals. They genuinely care about the success of the group and are
committed to helping the group reach these milestones.
• People skills: Excellent interpersonal skills are essential for leading effectively.
Great leaders know how to interact well with other leaders as well as with team
members.
• Perseverance: Strong leaders stick with it, even when things get difficult or the
group faces significant obstacles.
• Self-confidence: Many of the best leaders are extremely self-assured. Because
they are confident in themselves, followers often begin to share this self-belief.

22. • Task competence: A great leader is skilled and capable. Members of the
group are able to look to the leader for an example of how things should
be done.
• Trustworthiness: Group members need to be able to depend upon and
trust the person leading them.
• Understanding their followers and their needs: Effective leaders pay
attention to group members and genuinely care about helping them
succeed. They want each person in the group to succeed and play a role in
moving the entire group forward.
• charisma, creativity and flexibility

23. Advantages of The Trait Theory
• It is naturally pleasing theory.
• It is valid as lot of research has validated the foundation and basis of
the 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.

24. Limitations of The Trait Theory
• There is bound to be some subjective judgment in determining who is
regarded as a ‘good’ or ‘successful’ leader
• The list of possible traits tends to be very long. More than 100 different
traits of successful leaders in various leadership positions have been
identified. These descriptions are simply generalities.
• There is also a disagreement over which traits are the most important for
an effective leader
• The model attempts to relate physical traits such as, height and weight, to
effective leadership. Most of these factors relate to situational factors.
• The theory is very complex

25. Behavioral Approach
In Leadership

26. Behavioral Approach
• late 1940s to 1960s
• Focus on behaviors and their impact on measures of effectiveness
such as production and satisfaction of followers.
• relating to tasks and people
• behavioral theories of leadership implied we could train people to be
leaders.
• Ohio State Studies in the late 1940s,
• Michigan studies

28. Focus areas
• Initiating structure
• Consideration
• employee-oriented leader
• Production oriented leader

29. Initiating structure
• Initiating structure is the extent to which a leader is likely to define and
structure his or her role and those of employees in the search for goal
attainment.
• It includes behavior that attempts to organize work, work relationships,
and goals.
• A leader high in initiating structure is someone who “assigns group
members to particular tasks,” “expects workers to maintain definite
standards of performance,” and “emphasizes the meeting of deadlines.”

30. Consideration
• Consideration is the extent to which a person’s job relationships are
characterized by mutual trust, respect for employees’ ideas, and
regard for their feelings.
• A leader high in consideration helps employees with personal
problems, is friendly and approachable, treats all employees as
equals, and expresses appreciation and support

31. Job-Centered and Employee-Centered
Leadership
• Job-centered leader focuses on completing the task and uses close
supervision so that subordinates perform their tasks using specified
procedures.
• This leader relies on coercion, reward, and legitimate power to influence
the behavior and performance of followers.
• Leaders exhibiting this leadership style seemed to view concern for people
as an important luxury that they couldn’t always afford.

32. • The employee-centered leader focuses on the people doing the work
and believes in delegating decision making and aiding followers in
satisfying their needs by creating a supportive work environment.
• Employee-centered leaders concerned themselves with followers’
personal advancement, growth, and achievement.
• Such leaders emphasized individual and group development with the
expectation that effective work performance would naturally follow.

33. Employee-oriented leader is : A leader who emphasizes interpersonal
relations, takes a personal interest in the needs of employees, and
accepts individual differences among members.

34. Managerial Grid
• Robert Blake and Jane mouton (1969).
• sometimes called leadership grid.
• The grid depicted two dimensions of leader behavior, concern for
people and concern for production .

37. Impoverished Management (1, 1)
• Managers with this approach are low on both the dimensions and
exercise minimum effort to get the work done from subordinates. The
leader has low concern for employee satisfaction and work deadlines
and as a result disharmony and disorganization prevail within the
organization. The leaders are termed ineffective wherein their action
is merely aimed at preserving job and seniority.

38. Task management (9, 1)
• Also called dictatorial or perish style. Here leaders are more concerned
about production and have less concern for people. The style is based on
theory X of McGregor. The employees’ needs are not taken care of and
they are simply a means to an end. The leader believes that efficiency can
result only through proper organization of work systems and through
elimination of people wherever possible. Such a style can definitely
increase the output of organization in short run but due to the strict
policies and procedures, high labor turnover is inevitable.

39. Middle-of-the-Road (5, 5)
• This is basically a compromising style wherein the leader tries to
maintain a balance between goals of company and the needs of
people. The leader does not push the boundaries of achievement
resulting in average performance for organization. Here neither
employee nor production needs are fully met.

40. Country Club (1, 9)
• This is a collegial style characterized by low task and high people
orientation where the leader gives thoughtful attention to the needs
of people thus providing them with a friendly and comfortable
environment. The leader feels that such a treatment with employees
will lead to self-motivation and will find people working hard on their
own. However, a low focus on tasks can hamper production and lead
to questionable results.

41. Team Management (9, 9)
• Characterized by high people and task focus, the style is based on the
theory Y of McGregor and has been termed as most effective style
according to Blake and Mouton. The leader feels that empowerment,
commitment, trust, and respect are the key elements in creating a
team atmosphere which will automatically result in high employee
satisfaction and production.

42. Advantages of Behavioral Theory of Leadership:
• Behavioral theory promotes the value of leadership styles with an
emphasis on concern for people and collaboration.
• It promotes participative decision making and team development by
supporting individual needs and aligning individual and group
objectives.
• It helps managers evaluate and understand how their behavioral style
as a manager affects their relationship with and promotes
commitment and contribution towards organizational goals.
• This theory helps managers find the right balance between different
styles of leadership, and helps them decide how to behave as a
leader, depending on concerns for people and for productivity.

43. Disadvantages of Behavioral Theory of
Leadership:
• Behavioral Theory of Leadership proposes leadership styles but a
specific leadership styles may not be best in all circumstances.
• While behavioral theories may help managers develop particular
leadership behaviors but they provide little guidance as to what
constitutes effective leadership in different situations.

44. SITUATIONAL LEADERSHIP
THEORY (SLT)
HERSEY AND BLANCHARD’S

45. SITUATIONAL LEADERSHIP MODEL
• An approach to leadership that advocates that leaders understand
their own behavior, the behavior of their subordinates, and the
situation before utilizing a particular leadership style. This approach
requires the leader to have diagnostic skills in human behavior.

46. • Situational theories of leadership suggest leadership effectiveness depends
on the fit between personality, task, power, attitudes, and perceptions.
• The most effective leadership style varies with “readiness” of employees.
The readiness is defined as the desire for achievement, willingness to
accept responsibility, and task related skill, ability and experience.
• Theory suggests the need to match two key elements appropriately: the
leader’s leadership style and the followers’ maturity or preparedness
levels.

49. Leadership styles
• Telling(s1): Directive and authoritative approach. The leader makes decisions and
tells employees what to do.
• Selling (s2): The leader is still the decision maker, but he communicates and
works to persuade the employees rather than simply directing them.
• Participating (s3): The leader works with the team members to make decisions
together. He supports and encourages them and is more democratic.
• Delegating (s4): The leader assigns decision-making responsibility to team
members but oversees their work.

50. Maturity Levels
• M1: Group members lack the knowledge, skills, and willingness to
complete the task.
• M2: Group members are willing and enthusiastic, but lack the ability.
• M3: Group members have the skills and capability to complete the task,
but are unwilling to take responsibility.
• M4: Group members are highly skilled and willing to complete the task.

53. Characteristics of the SLT
• Insight: The situational leader must be able to understand the needs of the followers,
then adjust his or her management style to meet those needs
• Flexibility: Situational leaders must be able to move seamlessly from one type of
leadership style to another
• Trust: The leader must be able gain his or her followers’ trust and confidence
• Problem solving: The situational leader must be able to solve problems, such as how to
get a job done using the best leadership style available
• Coach: The situational leader must be able to evaluate the maturity and competence of
the followers and then apply the right strategy to enhance the follower and their
personal character

54. Advantages
• Easy to use: When a leader has the right style, he or she knows it
• Simple: All the leader needs to do is evaluate the situation and apply
the correct leadership style
• Intuitive appeal: With the right type of leader, this style is comfortable
• Leaders have permission to change management styles as they see fit

55. Disadvantages
• This North American style of leadership does not take into
consideration priorities and communication styles of other cultures
• Situational leaders can divert attention away from long-term
strategies and politics.

56. Contingency Theory

57. • Contingency theory is a general theory which says that there is no
one singular best way to structure your organization and lead your
team.
• contingency model of leadership effectiveness by Fred Fiedler in 1958
• Leader’s style
• Situational factors
• Favorableness of the Situation
• Matching leadership style to the Situation

58. Leader’s Style
• Leaders practice one or the other of two styles: task oriented leadership or
relationship-oriented leadership
• Individuals whose personality favors task completion and a sense of
accomplishment would more likely practice task-oriented leadership.
• An individual whose personality values warm, supportive relationships
with others would likely practice relationship oriented leadership.
• The most important leadership issue is to match leaders’ personalities and
styles to the situation in which they will be effective.

59. Situational Factors
• Leader-Member Relationship: If a manager is able to establish good
relations with his workers based on personality, skill and knowledge
he may be successful leader and does not have to depend on power
and authority. Leader-member relations were measured on LPC scale,
either they were good or bad depending upon the degree of
cohesion, co-operation and the level of conflict prevailing between
the Leader and follower.

60. Situational Factors
• Least Preferred Coworker (LPC):The LPC questionnaire asks respondents to
think of all the co-workers they have ever had and describe the one they
least enjoyed working with by rating that person on a scale of 1 to 8 for
each of 16 sets of contrasting adjectives (such as pleasant–unpleasant,
efficient–inefficient, open–guarded, supportive–hostile)
• High LPC = Relationship-oriented leader.
• Low LPC = Task-oriented leader.
**See the attachment LPC scale for further reading

61. Situational Factors
• Task Structure: High task structure is related to a task where all
actions required to be taken are explained in sequential manner and
employees understand and anticipate what is coming next. On the
contrary when a task is unstructured, the employees do not know as
to how to handle the work and group-member’s role become
ambiguous.

62. Some of the important work characteristics include
1. The degree to which the job’s tasks and duties are clearly stated and known to the people
performing the job.
2. The degree to which problems encountered in the job can be solved by a variety of procedures.
An assembly-line worker solves problems within a systematic framework, while a scientist has many
different ways to solve a problem.
3. The degree to which the “correctness” of the solutions or decisions typically encountered in a job
can be demonstrated by appeal to authority, by logical procedure, or by feedback. A quality control
inspector can show defective parts and clearly indicate why a part is sent back for reworking.
4. The degree to which there’s generally more than one correct solution. An accountant preparing a
balance sheet has few choices, while a research scientist may have numerous potentially correct
alternatives to choose from.

63. Situational Factors
• Position Power: In this situation power derived by the leader from his
formal position and other power bases are not considered. Fiedler
feels that a leader having a strong power position can obtain
followership more easily than a leader not having a formal power
base. The position of power is determined by the amount of control
which the leader has over allocation of resources, determination of
salaries, rewards, punishments and hiring of people.

64. Favorableness of the Situation
• The three situational factors can now be combined to describe
different situations.
• These situations will differ in the degree to which they are favorable
to the leader’s influence attempts.
Matching leadership style to the Situation

67. Advantages
• It provides a simple rule of thumb for identifying which leaders are
best for which situations.
• takes the situation into account in determining the effectiveness of a
leader.
• Both the LPC and the situational factors are easy to measure

68. Disadvantages
• If leadership style doesn’t match, the theory is not helpful, It’s not
flexible at all.
• The LPC scale is subjective and so its possible incorrectly assess own
leadership style.

69. Path Goal Theory of
Leadership
(contingency approach)

70. Path Goal Theory
• Martin Evans and Robert House in 1970
• Theory that suggests a leader needs to influence followers’ perceptions of
work goals, self development goals, and paths to goal attainment.
• The theory is designated path – goal because it focuses on how the leader
influences the followers’ perceptions of work goals, self-development
goals, and paths to goal attainment.
• The theory is an amalgamation of Contingency approach of leadership and
Expectancy theory of motivation

72. • Personal characteristics of subordinates
• Perceptions of their ability: The higher the degree of perceived ability relative to task
demands, the less likely the subordinate is to accept a directive leader’s style .
• Locus of control: Individuals with an internal locus of control are generally more
satisfied with a participative style, while individuals who have an external locus of
are generally more satisfied with a directive style.
• Environmental pressures and demands: factors that aren’t within the
control of the subordinate but are important to satisfaction or to the ability
to perform effectively
• Tasks,
• Formal authority system of the organization,
• Work group

73. • Design of the task - The design of the task might call for the leader's
support. For example, if the task is ambiguous, then the leader might have
to give it more structure or an extremely difficult task might call for leader
support.
• Formal authority system - Depending upon the task authority, the leader
can provide clear goals and/or give the employee some or all control.
• Work group - If the team is non-supportive, then the leader needs to
provide comradeship, enthusiasm, and devotion to all team members.

74. The Main Path–Goal Propositions
• Leader behavior is effective to the extent that subordinates perceive such
behavior as a source of immediate satisfaction or as instrumental to future
satisfaction.
• Leader behavior is motivational to the extent that it makes satisfaction of
subordinates’ needs contingent on effective performance and that it
complements the environment of subordinates by providing the guidance,
clarity of direction, and rewards necessary for effective performance.

76. Leadership styles
• Directive: Here the leader provides guidelines, lets subordinates know what is
expected of them, sets performance standards for them, and controls behavior
when performance standards are not met. He makes judicious use of rewards and
disciplinary action. The style is the same as task-oriented one.
• Supportive: The leader is friendly towards subordinates and displays personal
concern for their needs, welfare, and well-being. This style is the same as people-
oriented leadership.
• Participative: The leader believes in group decision-making and shares
information with subordinates. He consults his subordinates on important
decisions related to work, task goals, and paths to resolve goals.
• Achievement-oriented: The leader sets challenging goals and encourages
employees to reach their peak performance. The leader believes that employees
are responsible enough to accomplish challenging goals. This is the same as goal-
setting theory.

79. Critique of the Path–Goal Model
• Subordinate performance might be the cause of changes in leader
behavior instead of, as predicted by the model, the other way around.
• inconsistent research results associated with the model.
• the higher the task structure, the lower the relationship between
directive leader behavior and subordinate satisfaction—has received
only some support

81. Leader–Member Exchange
Theory
(LMX)

82. Leader–Member Exchange Theory
• Also known as LMX or Vertical Dyad Linkage Theory
• George Graen and his colleagues constructed the formal leader-member
exchange theory.
• (LMX) theory of leadership proposes that there’s no such thing as consistent
leader behavior across subordinates. A leader may be very considerate toward
one subordinate and very rigid and structured with another.
• Each relationship has a uniqueness, and it’s the one-on-one relationships that
determine subordinates’ behaviors.

85. Ingroup and outgroup
• In-group members share a common bond and
value system, and they interact with the leader.
• In-group, is favored by the leader.
• Members of in-group receive considerably more attention from the
leader and have more access to the organizational resources.
• Out-group members have less in common with the leader and don’t
share much with leader.
• Out-group members are disfavored by the leader and they receive
fewer valued resources from their leaders.

86. • In-group members are likely to receive more challenging assignments and
more meaningful rewards.
• In-group members are more positive about the organization culture and
higher job performance and satisfaction than employees in the out-group.
• An out-group member isn’t considered to be the type of person the leader
prefers to work with, and this attitude is likely to become a self-fulfilled
prophecy.
• Out-group members receive less challenging assignments, receive little
positive reinforcement, become bored with the job, and often quit. They
experience a lower quality relationship with their leader.

87. Relationship between leaders and followers follows three stages:
1. Role-taking. This is the very start of the relationship, when both the
manager and the employee are just starting to get to know each
other. Naturally, the employee won't bear very much responsibility
at this point in the process, and their tasks will be relatively simple
and limited in scope. It is during this period of time that the
manager will be able to observe what the employee is capable of
and then use that information to hand out future responsibilities.

88. 2. Role-making. At this point, the relationship is at its critical stage
where employees will either earn the trust of the manager, or lose it -
maybe forever. Most commonly, managers will put employees into one
of two categories, called 'in-group' and 'out-group' in this theory. It is
important to note that these 'decisions' are usually made on a
subconscious level, and the manager might not even be aware that he
or she has grouped their employees in this way.

89. 3. Routinization. Finally, a routine is established in which the manager and
employee generally know what to expect from each other. This is good news
for those who are in the in-group, as they will tend to remain in that position
even if their actual performance isn't worthy of the position. On the other
hand, this is a bad thing for the out-group, as they are now going to have a
hard time breaking the routine and impressing their manager. Employees
who fall into the out-group routine of doing the same thing day after day
often end up leaving the group or asking for a new position within the
organization to get away from the manager that has 'given up on them'.

91. Strengths of LMX Theory
• LMX theory is an exceptional theory of leadership as unlike the other theories, it
concentrates and talks about specific relationships between the leader and each
subordinate.
• LMX Theory focuses our attention to the significance of communication in
leadership. Communication is a medium through which leaders and subordinates
develop, grow and maintain beneficial exchanges. When this communication is
accompanied by features such as mutual trust, respect and devotion, it leads to
effective leadership.
• LMX Theory is a robust explanatory theory, and is very much valid and practical in
it’s approach.

92. Criticisms of LMX Theory
• LMX Theory fails to explain the particulars of how high-quality
exchanges are created.
• LMX Theory is objected on grounds of fairness and justice as some
followers receive special attention of leaders at workplace and other
followers do not.

93. Summary
• The Leader-Member Exchange Theory looks at this phenomenon and how your
own personal opinions could end up limiting the opportunities that an individual
has to succeed under your leadership.
• Throughout the progression of your time with specific team member, you are
likely to work through three different 'relationships' with that person.
• Role-taking occurs when team members first join the group. Managers use this
time to assess new members' skills and abilities.
• During Role-making managers sort new team members (often subconsciously)
into one of two groups, known as the 'in-group' and the 'out-group'.
• During Routinization, routines between team members and their managers are
established.
• A limitation of leader-member exchange research is that it is not particularly
helpful in describing the specific leader behaviors that promote high-quality
relationships as it only implies generalities about the need for leaders to show
trust, respect, openness, autonomy and discretion.

94. Laissez-faire, Autocratic and
Democratic leadership

97. Laissez-faire leadership
• A philosophy or practice characterized by a usually deliberate abstention
from direction or interference, especially with individual freedom of choice
and action.
• Also known as ”delegative leadership” or “free rein”
• “laissez-faire means” is French meaning "let it be" or "leave it alone”.
• Kurt Lewin is often credited with developing the concept of laissez-faire
leadership along with researchers Ronald Lippitt and Ralph K. White

98. Characteristics
• Hands-off approach
• Leaders provide all training and support
• Decisions are left to employees
• Comfortable with mistakes
• Accountability falls to the leader
• This approach to leadership requires a great deal of trust. Leaders need to feel confident
that the members of their group possess the skills, knowledge, and follow through to
complete a project without being micromanaged.

99. Famous examples
Warren Buffet Ronald Reagan John F Kennedy Steve Jobs

100. Advantages
• It encourages personal growth: Because leaders are so hands-off in their approach,
employees have a chance to be hands-on. This leadership style creates an environment that
facilitates growth and development.
• It encourages innovation. The freedom given to employees can encourage creativity
and innovation.
• It allows for faster decision-making. Since there is no micromanagement,
employees under laissez-faire leadership have the autonomy to make their own decisions. They
are able to make quick decisions without waiting weeks for an approval process.

101. Disadvantages
• Lack of role clarity: In some situations, the laissez-faire style leads to poorly defined roles within the
group. Since team members receive little to no guidance, they might not really be sure about their role
within the group and what they are supposed to be doing with their time.
• Poor involvement with the group: Laissez-faire leaders are often seen as uninvolved and withdrawn,
which can lead to a lack of cohesiveness within the group. Since the leader seems unconcerned with
what is happening, followers sometimes pick up on this and express less care and concern for the
project.
• Low accountability: Some leaders take advantage of this style as a way to avoid responsibility for the
group's failures. When goals are not met, the leader can then blame members of the team for not
completing tasks or living up to expectations.
• Passivity: At its worst, laissez-faire leadership represents passivity or even an outright avoidance of
true leadership. In such cases, these leaders do nothing to try to motivate followers, don't recognize
the efforts of team members, and make no attempts at involvement with the group.

102. Autocratic leadership

103. Autocratic leadership
• Autocratic leadership, also known as authoritarian leadership.
• A leadership style characterized by individual control over all decisions and
little input from group members.
• Autocratic leaders typically make choices based on their ideas and
judgments and rarely accept advice from followers.
• Autocratic leadership involves absolute, authoritarian control over a group.

104. Advantages
• Effective when decisions must come quickly, without time to consult others
• Prevents businesses or projects from becoming stagnant because of poor
organization or lack of leadership
• Keeps individuals, groups or teams from missing important deadlines
• During stressful periods, autocratic leaders can be more effective, and their
teams appreciate their leadership

105. Disadvantages
• Invites potential abuse by overly powerful personalities
• Can stifle staff and discourage team creativity
• Modern employees may not react well to authoritarian leadership
• Can discourage open communication between leaders and
subordinates

106. Democratic leadership
• Democratic leadership, also known as participative leadership or
shared leadership,
• It is a type of leadership style in which members of the group take a
more participative role in the decision making process.
• This type of leadership can apply to any organization, from private
businesses to schools to government.

107. • Group members are encouraged to share ideas and opinions, even though
the leader retains the final say over decisions.
• Members of the group feel more engaged in the process.
• Creativity is encouraged and rewarded
• Democratic leadership works best in situations where group members are
skilled and eager to share their knowledge.
• It is also important to have plenty of time to allow people to contribute,
develop a plan, and then vote on the best course of action.

108. Advantages
• More ideas and creative
solutions
• Group member commitment
• High productivity
Disadvantages
• Communication failures
• Poor decision-making by
unskilled groups
• Minority or individual opinions
overridden

110. Charismatic Leadership

112. Charismatic Leadership
• The ability to influence followers based on a supernatural gift and
attractive powers.
• Followers enjoy being with the charismatic leader because they feel
inspired, correct, and important.
• Max Weber suggested that some leaders have a gift of exceptional
qualities—a charisma—that enables them to motivate followers to achieve
outstanding performance.
• A charismatic leader is depicted as being able to play a vital role in creating
change

113. • Charisma is a Greek word meaning gift.
• Powers that couldn’t be clearly explained by logical means were
called charismatic.
• Two types based on the leader’s emphasis on the future:
• visionary charismatic leaders focus on the long term
• crisis-based charismatic leaders focus on the short term.

116. Servant Leadership

117. Servant Leadership
• Robert K. Greenleaf first coined the phrase "servant leadership" in his 1970 essay,
"The Servant as a Leader”.
• Servant leaders go beyond their own self-interest and focus on opportunities to
help followers grow and develop.
• Servant leaders don’t use power to achieve ends; they emphasize persuasion.
• As a servant leader, a leader is "servant first" – leader focus on the needs of
others, especially team members, before considering own.

118. • Servant leadership is not a leadership style or technique as such.
Rather it's a way of behaving that you adopt over the longer term.
•

119. Servant leadership leads to(advantage)
• Higher engagement
• More trust
• Stronger relationships with team members and other stakeholders.
• It can also lead to increased innovation.

120. Disadvantage
• Servant leaders may struggle to earn respect
• servant leadership is problematic
• in hierarchical autocratic cultures where managers and leaders are expected
to make all the decisions.

121. Transactional Leadership

122. Transactional Leadership
• Leader identifies what followers want or prefer and helps them achieve a
level of performance that results in rewards that satisfy them.
• Transactional leadership involves motivating and directing followers
primarily through appealing to their own self-interest.
• Exchange between leader and follower takes place to achieve routine
performance goals.
• The routine involves dimensions:

123. • Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations, provide
necessary resources, set mutually agreed upon goals, and provide various kinds of rewards for
successful performance. They set SMART (specific, measurable, attainable, realistic, and timely)
goals for their subordinates.
• Active Management by Exception: Transactional leaders actively monitor the work of their
subordinates, watch for deviations from rules and standards and taking corrective action to
prevent mistakes.
• Passive Management by Exception: Transactional leaders intervene only when standards are not
met or when the performance is not as per the expectations. They may even use punishment as a
response to unacceptable performance.
• Laissez-faire: The leader provides an environment where the subordinates get many
opportunities to make decisions. The leader himself abdicates responsibilities and avoids making
decisions and therefore the group often lacks direction.

125. Transformational Leadership

126. Transformational Leadership
• Ability to inspire and motivate followers to achieve results greater
than originally planned for internal rewards.
• It is a special case of transactional leadership, the employee’s reward
is internal.
• The transformational leader persuades followers to work hard to
achieve the goals envisioned.

128. • Intellectual Stimulation: Transformational leaders not only challenge the status
quo; they also encourage creativity among followers. The leader encourages
followers to explore new ways of doing things and new opportunities to learn.
• Individualized Consideration: Transformational leadership also involves offering
support and encouragement to individual followers.
• Inspirational Motivation: Transformational leaders have a clear vision that they
are able to articulate to followers. These leaders are also able to help followers
experience the same passion and motivation to fulfill these goals.
• Idealized Influence: The transformational leader serve as a role model for
followers. Because followers trust and respect the leader, they emulate this
individual and internalize his or her ideals
Components

129. Difference between Transactional and Transformational Leaders
Transactional leadership
• Leadership is responsive
• Works within the organizational culture
• Transactional leaders make employees achieve
organizational objectives through rewards and
punishment
• Motivates followers by appealing to their own self-
interest
Transformational Leadership
• Leadership is proactive
• Work to change the organizational culture by
implementing new ideas
• Transformational leaders motivate and empower
employees to achieve company’s objectives by
appealing to higher ideals and moral values
• Motivates followers by encouraging them to
transcend their own interests for those of the
group or unit

130. Authentic Leadership
Psychological Capital

131. Authentic Leadership
• Authenticity has its roots in ancient Greek philosophy (“To thine own self be
true”) and descriptive words include genuine, transparent, reliable, trustworthy,
real, and veritable.
• Defined as “A process that draws from both positive psychological capacities and
a highly developed organizational context, which results in both greater self-
awareness and self-regulated positive behaviors on the part of leaders and
associates, fostering positive self-development. The authentic leader is confident,
hopeful, optimistic, resilient, transparent, moral/ethical, future oriented, and
gives priority to developing associates to be leaders”

132. • Authentic leadership is a type of management style in which people
act in a real, genuine and sincere way that is true to who they are as
individuals.
• Proponents of authentic leadership say this type of leader is best
positioned to inspire trust, loyalty and strong performances from
employees.

133. Characteristics of authentic leaders
• They are focused on delivering results, particularly in the long term.
• They are driven by the organization's mission and needs and not their own
ego.
• They have integrity and are guided by morals, while also displaying strong
ethical characters.
• They are disciplined and committed to their own improvement and growth.
• They possess a healthy amount of emotional intelligence and are
empathetic to others' needs.

135. Psychological capital (PsyCap)
• Psychological capital refers to a set of resources a person can use to
help improve their performance on the job and their success.
• It includes four different resources – self-efficacy, optimism, hope,
and resilience.

136. Psychological capital (PsyCap)
• An individual’s positive psychological state of development that is
characterized by:
• (1) having confidence (self-efficacy) to take on and put in the necessary effort to
succeed at challenging tasks;
• (2) making a positive attribution (optimism) about succeeding now and in the future;
• (3) persevering toward goals and, when necessary, redirecting paths to goals (hope)
in order to succeed; and
• (4) when beset by problems and adversity, sustaining and bouncing back and even
beyond (resiliency) to attain success.

139. Nurturant task leadership

140. Nurturant task leadership
• Its an Indian perspective
• Sinha suggested that authoritarian leadership is not appropriate in Indian culture.
• They identified some socio-cultural values, such as
• preference for Aram (rest and relaxation, without being tired),
• Dependence
• proneness,
• lack of commitment,
• Showing off,
• personalized relationships,
• lack of team-orientation

141. • Sinha proposed
• A task-oriented (with a blend of nurturance), discipline-minded, tough
leadership with a personalized approach would be more successful in the
Indian setting. Named it as Nurturant Task Leadership Style.

142. Issues of leadership

143. Trust
• A positive expectation that another will not act opportunistically
• Competence, consistency, loyalty and openness are dimensions of trust
• You cannot lead others who do not trust you! Reengineering and
downsizing have undermined employee trust in management
• Three Types of Trust
• Deterrence Based Trust (based on fear)
• Knowledge Based Trust (based on predictability over time)
• Identification Based Trust (based on mutual understanding of wants and needs)

144. • Leaders use framing (selectively including or excluding facts) to influence
how others see and interpret reality.
• Leadership as an Attribution : leadership is merely an attribution that
people make about other individuals.
• Substitutes and Neutralizers to Leadership : Some argue that sometimes
leaders are not even needed! Sometimes individual, job, and organizational
variables can act as substitutes for leadership or neutralize the leader's
effect to influence followers
• Finding and Creating Leaders : (personality tests, interviews – match to
situation) Training (can we train leadership? E.g. trust building, mentoring,
situation-analysis skills)