LEADERSHIP

Daisy Chauhan

We could improve our productivity in India

by 30 to 40 per cent without extra finance
or new technology if we could improve the
leadership of our executives.
- Dr. Freddie Mehta

12 per cent of effective

management strategy is
knowledge and 88 per cent
is dealing appropriately
with the people.
-Stanford Research Institute

Manager and Leader

Administers
Maintains
Focuses on systems &

structure
Relies on control
Short-range view
Eye on the bottom line
Imitates
Accepts status quo
Surrenders to external
forces
Does things rightly

Innovates
Develops
Focuses on people
Inspires trust
Long-range view
Eye on the horizon
Originates
Challenges the status

quo
Conquers over volatile,
turbulent and ambiguous
surroundings
Does the right things

Leadership vs Management
Aims at change and

movement
Develops a vision for
the future and creates
direction
Is more concerned
with establishing
direction, aligning
people and
motivating and
inspiring people

Aims at producing

consistent results
Creates the
strategies for
ensuring realisation
of vision and mission
Is concerned with
planning, budgeting,
organising, staffing,
controlling and
problem-solving

What Differentiates a
Leader

A Leader sees:
More
Farther and
Before
Others.
It is not the position that makes a leader
It is the leader that makes a position.
In the case of a manager things happen
when he is there;
In the case of a Leader, things happen
even when he is not there.

Theories of Leadership
Trait Theories
Behavioral Theories
Contingency Theories

Trait Theories
Trait theories differentiate leaders from non-

leaders by focusing on personal qualities and

characteristics
Some common traits of leaders:
Ambition and energy
Desire to lead
Honesty and integrity
Self Confidence
Intelligence
High self-monitoring
Job relevant knowledge

Putting Vision into Action

Vision: Where We Will Be - Future state
Mission: Why We Exist - Purpose
Goals: What Will Get Us There - Operationalsing
Vision
Objectives: Major Steps We Will Take Strategies: How We Will Go about Doing This Defining the Process
Tactics: Who Will Do What by When - Accountability
Roles: Tasks - Ownership

Trait Theories
Extroversion is the most important trait of

effective leaders
Extroversion more strongly related to leader
emergence than to leader effectiveness

Behavioural Theories
Ohio State Studies:
Two dimensions relating to behaviour:
Initiating structure : Extent to which a leader
is likely to define and structure his/her role
and those of employees for the attainment of
goals
Consideration: The extent to which a leader is
likely to have job relationships characterised
by mutual trust, respect for employees ideas
and regard for their feelings
Has concern for employees comfort,
wellbeing, status and satisfaction

Behavioural Theories
Michigan Studies:
People Oriented Leader: emphasise
interpersonal relations, take personal
interest in the needs of the employees
Production Oriented Leader: emphasise the
technical and task aspects of the job.
Their concern is accomplishing tasks and
employees are only a means to that end.

Behavioural Theories
The Managerial Grid (Blake and Mouton):
Nine possible positions (styles) along each
axis on people orientation and production
orientation.
Managers are found to perform best under
9,9 style (High on people and production
orientation)

Contingency Theories
Contingency theories of leadership emerged because
the earlier theories failed to provide consistent
results. The focus therefore shifted to situational
influences.

Fiedler Contingency Model:

Proposes that effective group performance depends
on the proper match between the leaders style and
the degree to which the situation gives control to
the leader.

Contingency Theories
Least Preferred Coworker (LPC)
A high LPC score on 16 dimensions (pleasant-unpleasant) is
indicative of relationship orientation and a low LPC score
is indicative of task orientation basic leadership style
Leadership effectiveness depends on a match between the
style and three situational factors:
(1) Leader-member relations: The degree to which members
have confidence, trust and respect in their leaders
(2) Task Structure: The degree to which job assignments are
procedurised (structured/unstructured)
(3) Position Power: The degree of influence a leader has
over matters relating to hiring, firing, discipline,
promotions and salary increases.

COGNITIVE RESOURCE THEORY

Stress unfavourably affects a situation

Intelligence and experience can lessen the
influence of stress on the leader

HERSEY AND BLANHARDS SITUAITONAL

THEORY

Situational leadership is a contingency theory

where the focus is on the readiness of the

followers
The extent to which people have the ability and
willingness to accomplish a task

Unable and unwilling - Clear and specific directions

Unable but willing
- close supervision with feedback
Able and unwilling
- Supportive and participative
Able and willing - Leaders role minimal

Situational Leadership An Overview

R4
Able and
willing

Follower
Readiness
R3
R2
Able but
unwilling

Unable but
willing

Follower Directed

S4
Delegating
Observing
Fulfilling

R1
Unable and
unwilling

Leader
Directed

Leader
Behavior S2
S3
Understandin
g
Encouraging
Collaborating

Training
Explaining
Monitoring

S1
Telling
Guiding
Directing

How to do
Turn over
responsibilit
y for
decisions
and
executing

it

Find out why

the reluctance.
Share ideas
and help in
decision
making

Explain your
decisions and
provide
opportunity
for
clarification

Provide specific
instructions and
closely
supervise
performance

R
E
L
A
T
I
O
N
S
H
I
P
B
E
HAV
IUOR

Situational Leadership-Leader
Behaviour
High Relationship/
Low Task

S3: Participating/
Encouraging

High on Relationship/
High on Task

S2:Selling/
Explaining

Low Relationship/
Low Task

Low Relationship/
High Task

S4: Delegating/
Monitoring

S1: Telling/
Directing

Task Behaviour

MATCHING LEADERS AND SITUATIONS

When faced with situations I, II, III, VII and VIII

Task Oriented leaders perform better.

In situations IV, V, and VI Relationship

Oriented leaders perform better.

PATH-G0AL THEORY
The leaders role is to assist followers in

attaining their goals and to provide the

necessary direction and/or support to ensure
that their goals are compatible with the overall
objectives of the group or organisation

PATH-GOAL THEORY:
ENVIRONMENTAL
CONTINGENCY FACTORS
Task structure
Formal Authority system
Work Group

LEADER BEHAVIOUR
Directive
Participative
Achievement Oriented
Supportive
SUBORDINATE
CONTINGENCY FACTORS
Locus of Control
Experience
Perceived Ability

OUTCOME
Performance
Satisfaction

Path-Goal Theory
Directive leadership leads to greater satisfaction when tasks

are ambiguous

Directive leadership may be ineffective when employees are

high on ability and experience

Supportive leadership results in higher performance &

satisfaction when employees are performing structured tasks

Employees with internal locus of control will be more

satisfied with participative type of leadership

Achievement-oriented leadership will increase employees

expectancies that effort will lead to high performance when

tasks are ambiguously structured.

Theories of Leadership
Leader Member Exchange (LMX) Theory:
The Leader-Member Exchange (LMX) theory
argues that, because of time pressures, leaders
establish a special relationship with a small
group of their followers. These individuals make
up the in-group they are trusted, get a
disproportionate amount of the leaders
attention, and are more likely to receive special
privileges.
Other followers fall into the Out-Group

Transactional & Transformational

Leader
Transactional Leader:
Contingent Reward: Recognises accomplishments,
rewards good performance.
Management by Exception:
Watches and searches for deviations from rules and

standards, takes corrective action.

Charismatic Leader:
Motivates and directs followers by developing in them
a strong emotional commitment to a vision and set of
shared values
Influences followers by appealing to their emotions at
a deep level President Roosevelt Adolf Hitler
Transformational Leader:
Anticipates future trends,
Inspires followers to understand and embrace a new
vision of possibilities
Develops others to be leaders

SITUATIONAL LEADERSHIP
CRITERIA/CONSIDERATIONS:
Follower Readiness:

1.Level of Competence
2.Willingness (Motivation)
3.Trustworthiness
Leader Preparedness:
1.Level of Competence
2.Acceptability by Followers
3.Value Addition (Best use of Time & Energy)

ABILITY, MOTIVATION AND

PERFORMANCE

A
B
I
L
I
T
Y

Able but not Willing

Counterproductive
To be motivated/
counseled

Able & Willing

Proactive
High/Star Performers
Groomed for higher
Responsibilities

Unable & Unwilling

Passive/Inactive

Willing but Unable

Reactive

Obsolete/not to
be retained

To be Trained

WILLINGNESS/MOTIVATION

Situational Leadership
Follower Readiness: Competence &
Motivation
R4
R3
R2
R
Able and
Able but
Unable but
Unable
1 and
willing

unwilling

Follower Directed

S4
Delegating
Observing
Fulfilling
Empower

willing

Leader
SBehavior S2
Understandi
Training
3
ng
Encouraging
Collaboratin
g

unwilling

Leader Directed

Explaining
Monitoring

S1
Telling
Guiding
Directing

How to do it
Turn over
responsibilit
y for
decisions
and
executing
to followers

Find out why

the reluctance.
Share ideas
and help in
decision
making

Explain your
decisions and
provide
opportunity
for
clarification

Provide specific
instructions and
closely
supervise
performance

FACTORS AFFECTING LEADERSHIP STYLE AND

DM
Organizational Factors:
Stage
Size
Systems & Procedures

Environmental Factors:
Context
External Competition
LEADERSHIP
STYLE
&
DECISION
MAKING

Leader Preparedness:
Competencies
Acceptance

Follower Readiness:
Competencies
Motivation
Trustworthiness

Dimensions

Autocratic

Consultative

Participative

1. Context

Changing
Rapidly

Slow changes

Relatively
Static

2. External Competition

High

Medium

Low

3. Stage

Initial (set up)

Consolidation

Mature

4. Size

Small

Medium

Large

5. Systems and Procedures

Unstructured

Structured/
Discretionary

Structured

6. Competencies of Leader

High

Medium

Low

7. Leader Acceptability

High

Medium

Low

8. Competencies (Others)

Low/Average

Medium/high

High

9. Motivation (Others)

Low/Average

Medium

High

10.Trustworthiness (Others)

Low/Average

Medium

High

Matching Readiness with

Leadership Styles
Readiness
Style
Low

Best Style
Telling

Least Effective
Empowering

Low to Moderate
Selling/
Influencing
Involving
Moderate to High

High Delegating/

Participating/
Involving
Telling
Empowering

Delegating/

Influencing

LEADERSHIP AND DECISION MAKING

Criteria for Decision Making:

1. Rationality
2. Acceptance
Neither being too rational nor too emotional.
A balance between rationality and acceptance or
using emotions/feelings for making intelligent
decisions.

Criteria for Decision

Making
QUALITY

ACCEPTANCE

1. Information:

1. Conflict Rule
2. Fairness Rule
3. Acceptance Priority

Relevant
Sufficient
Complete

2. Complexity
3. Goal Congruity

TIME AVAILABILITY

Leadership and Decision Making

Decision Styles:
AI : Autocratic. No information sharing, No search for information,
managing with available info. You take your own decision.
AII: Autocratic but may seek some information, speak to a few
people. True facts not shared.
CI: Consultative approach. Problem sharing with relevant
individuals (subordinates) on a one to one basis. Then you take a
decision which may or may not reflect your subordinates views.
CII: Consultative approach. Problem sharing with your
subordinates in a group collectively obtaining their ideas and
suggestions. Then you take the decision which may or may not
reflect their views.
GII: Consensus Group Decision-making. You share your problems
with you subordinates in a group. Together you generate and
evaluate alternatives and attempt to reach a consensus. You do not
try to influence the group to adopt your solution and you are
willing to accept and implement any solution that has the support of
the entire group.