2. • The behavioral pattern which a leader exhibits is known as style of
leadership.
• The leadership style in a particular situation is determined by the
leader’s personality, experience & value system, nature of followers
and nature of environment.
• There are 4 important leadership styles which are based on use of
authority. They are:
Persuasive
Persuasive Leaders
persuade their
subordinates to get
the work done their
way.
3. • Autocratic Leader gives orders which must be
obeyed by the subordinates in any
circumstance.
• This kind of leader gives personal praise or
criticism to each member on his own initiative
and remains aloof from the group for most of
the time.
• There are 3 Categories of autocratic leaders as follows:
Strict Autocrat
Benevolent Autocrat
Manipulative Autocrat
4. Case Study
Leona Helmsley of the Helmsley hotel chain
A striking example of an autocratic leader in the corporate world was Leona
Helmsley. In 1972 she marries Harry Helmsley whose property management ,
business included dozens of apartment complexes , office tower such as the empire
state building and a nationwide chain of hotels.
Her combative style earned her the tabloid nickname “the queen of mean”. While
Leona’s autocratic leadership style did make the Helmsley hotel chain popular her
demands of perfection from everyone and her exiting ways scraped the dignity of
everyone on her payroll from the cleaning staff to top executives. She allegedly
“treated people like garbage”. Example being to fire on the spot a secretary daring to
use the Helmsley palace dry cleaner to remove an accidental spill on her clothing
even though she had worked diligently for eight years. A lawyer that once had a
breakfast with her became witness of her tyrannical behavior when a waiter served a
cup of tea with a tiny bit of water spilled on the saucer. Leona asked the waiter to get
down on his hands and knees to beg that he would not be fired right away.
On the other hand her autocratic type of leadership allowed her to become a
billionaire hotel operator. The disgruntled employees soon raised several charges of
tax evasion , kickbacks , extortion and the like against Leona and the charges to tax
evasion stuck. She spent millions of dollars overhauling her mansions and luxuries
and claimed them against the profits of the hotel chain. Her personal maid testified
against her and her much derided quote “ that only little people pay taxes” led her to
spend 21 months in prison and fines.
5. Democratic Leadership
• It is a very open and collegial style of running a team. Ideas
move freely amongst the group and are discussed openely.
Everyone is given a seat at the table and discussion is
relatively free flowing.
• This style is needed in dynamic and rapidly changing
environments where very little can be taken as a constant. In
these fast moving organization every option for improvement
has to be considered to keep the group from falling out of
date.
• The democratic leadership style means facilitating the
conversation , encouraging people to share their ideas and
then synthesizing all the available information into the best
possible decision. The democratic leader must also be able to
communicate that decision back to the group to bring unity
the plan is chosen.
6. Case Study
Ratan Tata, a dynamic leader:
• In terms of leadership style, TATA Group has adopted a team-led
culture and collective approach. With Ratan Tata as leader of the
Group, the management style of the entire TATA Group has
changed considerably; trust became a huge facet and theme of the
group. Ratan Tata has put a complete organizational restructuring
when he took over in 1991 as leader of the TATA Group, by taking a
more matrix-style approach building teams. These changes would
have obviously transformed a lot in the business, senior managers
would have had to be on their toes and flexibility and adaptability
became essential qualities to have. The leadership changed from a
centralized, command center to a much more distributed form with
employees and all managers enjoying greater responsibility and
knowledge about the Group, which would have in turn; motivated
them to work harder and as a group.
7. Laissez Faire Leadership
• Laissez-faire leaders are characterized as uninvolved
with their followers and members; in fact, laissez-faire
leadership is an absence of leadership style.
• Leaders of this style make no policies or group-related
decisions. Instead, group members are responsible for all
goals, decisions, and problem solving.
• Laissez-faire leaders have very little to no authority
within their group organization.
• Laissez-faire leaders are most successful in environments
with highly trained and self-directed followers.
8. Case Study
Intel’s leadership style:
When Intel was launched in the late 1960s, the leadership style of
Robert Noyce helped inspire other Fairchild employees to join
him. Initially, Noyce’s laissez-faire management style
appealed to the brilliant engineers who founded Intel,
including Andrew Grove and Gordon Moore, who coined
Moore’s Law of exponential growth.
As Intel and the semiconductor industry matured, Noyce’s
laissez-faire management style was no longer optimal for a
company increasingly dependent on perfecting quality
assurance processes and scaling costs. Eventually, Noyce was
succeeded by Grove, whose management style was more
refined and autocratic — better-suited for Intel’s long-term
survival.
9. Persuasive Leadership
• The art of persuasion is a powerful tool for entrepreneurs.
• It can help you land new clients, hire the best employees and form
new business relationships.
• More than 2,000 years ago Aristotle gave us three essential
elements of persuasive communication:
Ethos: how credible the audience perceives the speaker to
be
Logos: how logical and effectively structured the speaker’s
argument is
Pathos: how emotionally appealing the communication is.
10. Key Characteristics
1. Listen effectively
2. Be honest and confident
3. Address concerns
4. Engage in effective communication
5. Show empathy
6. Find common ground
11. Case Study
• Drawing on the example of the turnaround of Beth Israel Deaconess
Medical Center (BIDMC) in Boston. Paul Levy, who became CEO in
early 2002, managed to bring the failing hospital back from the
brink of ruin.
• An unlikely candidate to run BIDMC, Paul was not a doctor and
had never managed a hospital, Despite this, he was appealing to the
board.
• His challenge was threefold: to give remaining employees time to
grieve and recover from layoffs; to make them feel supported and
cared for; and to ensure that the turnaround plan proceeded apace.
• The first step was to acknowledge employees’ feelings of depression
while helping them look to the future. He then urged employees to
look forward and concluded on a strongly optimistic note
12. • Ensuring the employees continue to work hard, he spoke about the
need for cost control thus putting merit pay increases on hold.
• A year later, everything changed. Operational improvements had begun
to take hold. Financial performance was well ahead of budget, with the
best results since the merger.
• In studies of successful turnarounds, it was found that effective leaders
explicitly reinforce organizational values constantly, using actions to
back up their words. Their goal is to change behavior, not just ways of
thinking.
• Performance, of course, is the ultimate measure of a successful
turnaround. moving from a $58 million loss in 2001 to breakeven in
2004. At the end of the 2004 fiscal year, the hospital reported a $37.4
million net gain from operations
• Paul Levy chose an approach that blended with a strong dose of
discipline with real-time, public reinforcement. He understood the
importance of readying the cultural soil before planting the seeds of
change.
13. Conclusion
• A leader may be of various types but a true and
competent leader is one that encompasses all the
aforesaid qualities.
• It is essential for a great leader to be dynamic and
constantly evolving so that he/she may lead the team in
the most apt and beneficial manner.
• Having a wide knowledge and diverse background will
not only help make well informed decisions but also
increase the level of compassion.
• The perfect leader is one which has a blend of all the
characteristics and can call upon his attributes to meet
the necessary situation at hand.