Unit 6 : Leadership

Session 1: Meaning, Definition and Importance of Leadership

Teaching &
Learning Outcome Knowledge Evaluation Performance Evaluation Training Method
Meaning & Definition of Meaning and definition of What is meant by
Leadership Leadership leadership?
Relevance of Leadership Significance of Leadership What is the importance of Interactive Lecture
leadership?

Session 2: Types of Leaders

Classification of Leaders Categories of different kinds What are the different types
of leaders of leaders? Give examples. Interactive Lecture

Session 3: Characteristics of a Good Leader

Characteristics of a Good Understanding qualities which What are the characteristics
leader make a person leader of a good leader?
Interactive Lecture

Session 4: Leadership Styles

Styles of Leadership Comprehending different What are the different
styles leaders can adopt leadership styles?
Interactive Lecture

Last year on 8th May 2018, Forbes magazine compiled a list of

world’s most powerful people. In that list, our country’s Prime
Meaning of
Minister Sh. Narendra Modi was ranked 9th in the list of 75 people.
Leadership
Another global survey done by research firm Gallup International in
2018 had shown that Prime Minister Narendra Modi is one of the
most popular leaders in the world. And now, the current election
(2019) results have strengthened this fact again. The enormous
confidence showed by public towards acceptance of Narendra Modi
as their leader is reflected in the results.
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Don’t you think as a student you should understand what is this concept of leadership all about?
What makes a person a good leader? What are the different types of leaders?

A leader is one who guides and directs other people. He understands the objectives of the
group and thereby guides it for achieving them. People need to be guided to contribute
towards organisational goals with zeal and confidence. A leader is responsible for
encouraging his team to work towards these goals

Therefore, leadership is the act to influence behaviour of others. It can be referred as the capacity
to influence a group of people towards the realization of a goal.

Leadership is a part of both formal and informal situations. You may have observed that when
you are playing sports or planning some activity, generally one of your friends take a lead.

Definition of Leadership

Various authors have given different definitions on leadership. Let us learn few of them: -

According to Robert Tannenbaum “Leadership is the inter-personal influence exercised in a

situation and directed through communication process through the attainment of specified goals.

Rauch & Behling defined Leadership is defined as the process of influencing the activities of an
organized group toward goal achievement.

Hemphill has defined Leadership is the behaviour of an individual when he is directing the
activities of a group toward a shared goal.
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According to Schein “Leadership is the ability to step outside the culture to start evolutionary
change processes that are more adaptive.”

Keith Davis defines it as “the ability to persuade others to seek defined objectives
enthusiastically.”

Significance of Leadership

Leaders have got an important role in determining the organisations’ future. In a way, they have
accountability towards the owners, customers, employees and many stakeholders. So, if the
leadership is right, the firms can run smoothly. The importance of leadership is discussed below:

Motivating the Employees

Facilitating the process of change

Building team spirit

Creating Confidence

Maintaining Discipline

Providing Feedback

Figure 1: Significance of Leadership

i. Motivating the employees
The first and foremost job of a leader is to motivate the employees. He combines people’s
ability with willingness and drive them to action.
ii. Facilitating the process of change
A leader has to convince the employees for organisational change. He needs to explain
the need and benefits of introducing change. Along with that he has to provide necessary
support to carry out the change smoothly.

iii. Building team spirit

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A good leader is responsible for developing team spirit among employees. He imbibes a
sense of collective effort in the people and thus makes them work as a team. He makes
them understand that team work actually helps in achieving their individual goals.
iv. Confidence
A leader has to create confidence among the subordinates. Sometimes, the leader has to
make them realise their potentials and capabilities to achieve organizational goals. Also,
he has to provide them conducive environment for their individual growth.
v. Maintaining Discipline
Leaders exert their power and influence to ensure discipline in the organisation. They
also make sure that subordinates are adhering to the rules and regulations with
commitment.
vi. Providing feedback
It is the duty of the leader to provide continuous
feedback for their performance to his team members.
This is done to assure the organisational goals are met
effectively and efficiently.

Types of Leaders

1. Democratic Leaders: - A democratic leader acts according to the wishes of his

followers. He is also referred as Participative leader. The leader encourages group
members to share ideas and opinions. He gives rewards to creative members of the
group. He is always concerned about the interests of his team and is available for help.
Late Franklin D. Roosevelt, former US President, is known as a democratic leader.

2. Autocratic Leaders: - Such leaders dominate and get the work done through coercion,
command and inculcating fear in the group members. They basically dictate all the work
methods. These leaders don’t take inputs from their teams. This kind of leadership
doesn’t promote the concept of creativity from the subordinates. Adolf Hitler, dictator of
Germany is a classic example of autocratic leader.
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3. Persuasive Leaders: - A persuasive leader possesses alluring personality that enable him
to encourage the team members for getting the work done. Persuasion is the ability to
convince others to change their actions, decisions, opinions or thinking. Persuasive
leaders are generally friendly, polite, trustworthy and knowledgeable. They are loved and
trusted by their group members.
4. Creative Leaders: - A creative leader encourages ideas from group members. He doesn’t
exert undue pressure or influence on the team. He tries to unite people through
enthusiastic activities. He creates conducive environment to promote creativity. This kind
of leadership provides satisfaction at work.
5. Intellectual Leaders: -These leaders win the trust of their subordinates by their
intelligence and knowledge. He is generally experienced in one of the areas of company’s
processes. E.g. An intellectual leader may be expert in advertising, production, sales or
human relations. An expertise knowledge has got a great role in improving firm’s
performance.
6. Institutional Leaders: - An institutional leader influences his team on account of the
stature or position he holds in the organisation. He is able to command respect due to his
position in the enterprise. Some subordinates also respect him as they have a habit of
obeying their seniors.
7. Charismatic Leaders: - Charisma is a form of inter-personal attraction that inspires
support and acceptance from others. A leader with charisma is in a position to influence
others than who lack charisma. Charismatic leaders are dynamic and high-risk takers. It
has been proved in research that charismatic leadership leads to high performance and
satisfaction among his followers. They can be relied during crisis.
8. Transformational Leaders: - Transformational leaders are responsible for introducing
dramatic changes in the organisations. James V. Downton introduced the concept of
transformational leadership. These leaders are charismatic and are capable of motivating
others. They enjoy trust, respect and appreciation from their team members. This kind of
leadership promotes intelligence, rationality and problem-solving traits in the followers.
9. Transactional Leaders: - As compared to transformational leadership, the transactional
leadership works on the idea that people are self- motivated who work in a structured and
organised way. This is more towards compliance of rules and regulations. Such leaders
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get their work done through rewards and punishments. They don’t bring out a significant
change in the organisations like transformational leaders.

Characteristics of a Good leader

An effective leader possesses certain qualities or traits which differentiates them amongst
common persons. Some of the qualities
which are needed for a good leader are: -
1. Physical Features: - A leader should
have good health and physical fitness.
Height, weight, physique and stamina are
significant for leadership. Physical and
mental strength also help in managing
long hours of work.

2. Intelligence: - A leader is expected to

have superior knowledge and expertise to
handle organisational issues. He should be
able to identify the problematic areas and
solve them. He should possess scientific and
logical abilities along technical competence.

3. Maturity: - A leader should possess a high

level of emotional quotient. He should maintain
cool temperament. He should be highly tolerant.
He should be open minded to accept new ideas.
He should be able to look at the things objectively.

4. Sense of Responsibility: - A leader should

be prepared to take the responsibility for the
consequence of any decision he contemplates.
He should be aware of the duties and
responsibilities related with the position he
holds.
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5. Human Relations Attitude: - A good

leader should develop friendly relations
with his team members. He should develop
personal contact with them. He should be
understanding. He should often talk to his
team members to understand and listen
their problems at professional and personal
front. He should be able to provide
solutions to their problems.

6. Inner Motivation: - Leaders should be

personally motivated to accomplish the
organisational goals. This way he will be
inspire his team to. He has to set example
before his people. He should be dependable.

7. Emotional Balance: - A leader must handle his

emotions, particularly in crisis situations. He should
be balanced in all the situations. He should not be
biased; he should act logically in his actions. He
should avoid demonstration of emotions like
impatience, anger or hatred for any of his
subordinates.

8. Empathy: - The ability of a leader to visualise

things from others’ point of view is known as
empathy. The manager must understand the
needs and aspirations of his subordinates. These
days organisations are becoming people centric.
That’s why empathy is regarded as an important
trait in leadership. Research has proved that
managers who are empathetic promote better job
performance.
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9. Vision and Foresight: - A leader should be

able to visualize events well in advance.
Visionary leaders determine the success of the
organisation. He should be highly imaginative
and determined.

LEADERSHIP STYLES

Leadership style is the method in which the leader supervises and directs his team
members. It can also be referred as the behaviour pattern exhibited by a leader for influencing
his followers. On the basis of how leaders influence his subordinates, leadership styles can be
classified into three broad categories- Autocratic, Consultative and Free-reign.

1. Autocratic or Authoritarian Leadership

An autocratic leader also known as authoritarian leader exercises

complete control over the subordinates. He keeps power and
authority with himself. He takes all the decisions without
consulting the subordinates. It is generally a negative form of
leadership as there is a lot of dominance from the leader. He gets
the work done through coercion and command. He loves power and
never delegates authority. The leader gives order and expects the
subordinates to follow them without any questions and grudges. He
uses rewards for good performance but alternatively he threatens
the subordinates of penalties and punishments to direct the
subordinates.

This kind of leadership is suitable in situations which require

urgent action. It can also be applied in the cases where subordinates
are unskilled and inexperienced.

Advantages:
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(i) This style permits quick decision-making due to centralisation of power.

(ii) Organisations can hire less skilled people at lower levels.
(iii) The style may prove constructive when higher speed is needed in certain processes.
(iv) It can be motivating and satisfying for the leader who dictates terms.

Disadvantages:

(i) Such leadership styles lead to frustration, low morale and conflict among
subordinates.
(ii) Subordinates tend to shirk responsibility and initiative at times as they don’t get an
opportunity to participate in decision making process.
(iii) Potential of subordinates and their creative ideas are not properly utilized.
(iv) Such leadership style poses a threat for continuity of the organisation.

2. Participative Leadership

Participative leadership also known as democratic leadership

style involves the leader and one or more employees in the
decision-making process. The decisions are made after
consulting the group. Although, the leader keeps the final
decision-making authority with him. Employees respect this kind
of leadership.

Use of this leadership style is beneficial for both the leader and
the subordinates as it allows employees to become part of the
team and enable the leader to make better decision.

The democratic leader makes decision by consulting his team,

but maintains control over the group activities. He allows his
team to decide how the task will be done and who will perform
which task. He also informs them about the matters which affect
them.

On one hand he encourages participation and delegates wisely,

but he maintains the fact that he bears the responsibility of
leadership. He takes suggestions from the group members. Their
strong points are considered in order to obtain the best
performance from his team. He also hears the grievances and
opinions of his subordinates.

This kind of leadership is applicable when leaders are considered

a part of the system and the leader ensures sharing of decision
making than taking the decision on his own.
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Advantages:

i. Such kind of leadership inspires confidence and loyalty amongst the team members.
ii. Participation in the decision-making process satisfaction to the workers and increases
productivity at work place.
iii. This kind of leadership induces confidence, cooperation and loyalty among the
employees.
iv. Morale of the employees also becomes high.

Disadvantages:

i. This kind of leadership may lead in delay in decision making on account of

consultation with the workers every time.
ii. At times, employees may not be willing to give suggestions.
iii. Consulting employees for every decision may counter the decisive ability of the
leader.

3. Laissez-Faire or Free-Rein Leaders

Free Rein leaders give responsibility of setting goals and finding

methods to achieve them to the group members. They allow
group members to carry out the work on their own. The leaders
play a minor role in achieving the group goals. The free-rein
leader exercises little control over his group and let the group
members handle their problems and find solutions on their own.
But at times, this kind of leadership leaves the team floundering
with little direction or motivation.

The laissez-faire technique is suitable where leader leads a team

of highly motivated or skilled people, who have produced
excellent work in the past. Once a leader believes that his team
is confident, capable and motivated, he often steps back and lets
them get on with the task. By handing over ownership, a leader
can empower his group to achieve their goals. This kind of
leadership can be practiced in research laboratories where
scientists are free to conduct their research and make their
decisions.

Advantages: -
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i. It provides team members to explore innovative ideas.

ii. It also provides job satisfaction to the employees.
iii. It also ensures a development of potential and skills of the group members.
iv. This kind of leadership also promotes independence at workplace.

Disadvantages: -

i. Group members don’t feel supported and directionless as there is no one to guide
them.
ii. Occasionally, the group cohesiveness is reduced in such form of leadership.
iii. Often, it leads to miscommunication in the group.

Summary

 Leadership is the act of influencing others towards realisation of common goal.

 Leadership is prevalent in both formal and informal set ups.
 Leadership is needed in motivating the employees and creating confidence in
the organisation.
 There are many types of leaders in organisations.
 A good leader requires to be physically, mentally and emotionally strong.
 A leader should be mature, responsible and understanding human relations at
the work place.
 There are mainly three types of leadership styles- Autocratic, Democratic and
Free-rein.

Keywords: - Leadership, Influence, Motivation, Autocratic, Democratic, Free-rein

Self-Test Questions

I. Choose the correct answer:

1. Which style of leadership takes into account of others' views, opinions and ideas?
a. People-oriented b. Democratic c. Autocratic d. Laissez-faire
2. A leadership theory that focuses on the traits of those who have assumed powers and who
are considered to be effective is called
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a. trait theories b. behavioural theories c. contingency theories d. structural theories

3. These leaders are relied due to the expert knowledge they possess in their functional area.
a. Institutional leaders b. Creative leaders c. Intellectual leaders d. Institutional leaders
4. Leadership which can be practiced when the subordinates are less skilled.
a. Participative leadership b. Autocratic Leadership c. Free-rein leadership d. Creative
leadership.

II. Fill in the blanks:

1. The capacity to influence people and accomplish desired objectives is
called……………………
2. The …………………leadership style is an expression of the leader’s trust in the abilities
of his subordinates.
3. Continuous ………………….is required for the improvement in the performance of the
team members.

a. …………………………. leaders get the work done using coercion, command and
instilling fear in the subordinates.
III. True or False
1. A laissez faire leadership style occurs when all power is passed onto the staff.
2. An autocratic leadership style occurs when power is split between the leader and his or
her staff.
3. Charismatic leaders are the ones who take responsibility to execute risky projects.
4. Participative leadership leads to quick decision making.
IV. Answer the following briefly:
1. What are some traits required to be a good leader?
2. What is the importance of leadership in an organisation?
3. Differentiate between transactional and transformational leaders.
4. What are the traits of autocratic leaders? Give examples.
V. Answer in detail:
Explain the different styles of leadership practiced in organisations.
VI. Activity
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Identify four leaders from politics and corporate arena of your choice. List out their
leadership traits and find out what type of leaders they are.