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1. The success of any organization depends upon its Man power.

2. Effective utilisation of Human resources in an organization depends

upon its Management.

3. Management can get results from the people in the organization in two
different ways. (1) By exercising the authority it has and (2) By
winning the support of its workers.

4. The second method is ideally suitable for any organization in the long

5. To what extent the management can win the support of the People to
attain its objectives depends on effective Leadership.

6. Definition of Leadership: - Leadership is defined as the process of

influencing the activities of an individual or a group for goal
achievement in a given situation.

Characteristics of Leadership:

1. Leadership is basically a personal quality, which motivates the

individuals to be with leaders.

2. Leader is one who exercises his Leadership qualities to try and

influence the behavior of individuals around him to attain certain. Pre-
determined objectives.

3. Leadership is a continuous process of influencing behavior.

4. Leadership is exercised according to the situation and the variables in

the situation also affect the effectiveness of Leadership.

Difference between a Leader and a Manager:

1. Some social scientists treat Leader and a Manager to be one

and the same.

2. However, there is a difference between the two and the key

difference between these two lies in the word organisation.

3. Leadership is viewed as the capacity of an individual to influence

the behavior of an individual or a group regardless of reasons.

4. Therefore, a person can be a leader of a completely unorganized


5. On the other hand Managers only exist where organized structures

create such roles.

6. Another difference between the two concepts his in the context of

scope of functions performed.

7. A Manager has to perform all the five functions of Management of

planning, Organizing, Staffing, Directing and control in some
measure or the other.

8. Leadership is a part of Management.

Formal and informal Leaders:

1. Leaders could be formal or informal.

2. A formal leader is one who occupies his place by virtue of his

position. Where as an informal leader is one who is perceived by
other members as being the best person who is capable of satisfying
the needs of the group.

Importance of Leadership:

1. It is not an over statement to say that the success of an

organization depends upon the quality of its Leadership.

2. Peter Drunker has rightly said that business Leaders are the basic
and most scarce resource of any business enterprise.

The following are some of the good qualities of a Leader:

1. Motivating Employees :

a) Capability of a person to extract the will and the abilities

of the
Subordinates to perform the best possible work is the most
essential quality of a leader.

b) A good leader constantly motivates his subordinates to

reach new heights.

c) Good Leadership in the organization itself is a motivating

for the subordinates. e.g.: a leader should be a friend and not a

2. Creating confidence :

a) Some people in the organization fail to recognize their

own qualities and capabilities.

b) So a leader is one who should infuse confidence among

subordinates and should advice and help them to perform better
in an organization.

3. Building Morale :

a) Morale is expressed as attitudes, of employees towards

organization, management and voluntary and willful co-
operation by them towards the objectives of the firm.

b) High Morale leads of high productivity and greater

organizational stability.

c) Therefore leaders should build the Morale of the subordinates.

e.g.: strike is something unknown in the history of TISCO. This
is because of effective leadership and high Morale of employees.

Theories of Leadership:

There are essentially three theories of leadership namely (1) Trait

theory (2) Behavioral theory and (3) Situational theory.

1. Trait theory :

a) Trait is defined as an enduring quality of an individual.

b b) Traits theory is one which attributes the success of a leader

to his
c own personal characteristics.

c) From the beginning people have emphasised that a particular

individual was a successful leader because of certain of his good
qualities. E.g. Gandhi.

d) According to the researchers the following are some of the good

traits of a successful leader.

1. Physical and constitutional factors: - heights, weight, Physique,

2. Intelligence: - Generally expressed as mental ability.
3. Sociability: - Ability to get along with people and mingle with them
4. Self confidence.

5. Will: - Initiative, persistence and ambition.

6. Dominance.

7. Surgency: - Talkative, cheerful, ability to express him self, alertness

and originality.

Among the traits of leaders some are innate qualities like (a)
Physical appearance and (2) Intelligence and some are acquired qualities.

I- Acquired qualities of a leader are those that he has acquired by

virtue of his experience and learning process. The following are
some of the acquired qualities.

1) Emotional stability: - A leader should be free from bias, should

be consistent in action, should be a patient listener and restrain
from loosing temper.

2) Human Relations: - A leader should know how to deal with and

get along with people and subordinates.

3) Empathy: - This quality relates to observing the things or

situations from others point of view. Empathy requires respect
for other persons, their rights, beliefs, values and feelings. E.g.:
some Managers try to be arrogant or talk in an insulting tone to
their subordinates before others.

4) Objectivity: - What a leader does should be based on relevant

facts and information rather than be carried away by wrong
information fed by certain individuals.

5) Motivating skills:- A leader should have a perfect understanding

About the needs, motives and behavior of subordinates and by
virtue of this knowledge he should be able to motivate the
subordinates to higher performance.

6) Technical skill: - Should have technical skill about the job. A

leader should know more about the work than the worker. E.g.
F.W. Taylor. He conducted various studies to prove that he
knew more about the work than the worker.

7) Communication skills: - A leader should know how to

communicate effectively. Communication is viewed as a great
force in getting the acceptance of the subordinates. For the
communication to be effective, it should be persuasive,
informative and stimulating.

8) Social skills:- A leader should understand people and know their

strengths and weaknesses. A leader should have the ability to
work with people and conduct himself in such a way that he
gains their confidence, loyalty and willingness to Co-operate
with him for his and organisational welfare.

II - Behavioural Approach:

1) As per this approach Leadership is shown more by a persons acts

than his traits.

2) Though acts are influenced by traits, they are also influenced by

followers, goals and the environment in which they operate.

3) Therefore, there are four basic elements – leaders, followers,

goals and environment, which affect each other in determining
suitable behaviour.

4) Leadership acts may be viewed in two ways.

a) Functional acts (favourable) to leadership and (b)

dysfunctional acts (unfavorable) e.g.: inability to accept
subordinates ideas, display of emotional immaturity, poor
human relations and poor communication.

5) According to Behavioural approach a leader should use three

skills technical, human and conceptual to lead his followers.

a) Technical skills – refer to a person’s knowledge and

proficiency in any type of process or technique.

b) Human skills – is the ability to interact effectively with

people and to build team work and

c) Conceptual skills – is the ability to devise plans and set up

constructive models for their effective implementation.

III - Situational Approach:

1) The prime attention in this approach is given to the situation in

which leadership is exercised.

2) The essential contention of this approach is that in one situation

a particular style of leadership may be successful, while in others
it may not be. E.g.: Indira Gandhi and Emergency.

According to a research group there are four situational variables

that affect the performance of leadership. (1) Cultural environment
(2) Differences between individuals (3) Differences between jobs
and (4) Differences between organisations.

1. Cultural Environment: - The type of leadership to be adopted also

depends on cultural Environment. E.g.: The Japanese culture is
absolutely different, where workers take pride in their work. In such a
culture leadership can be more participative.

2. Difference between individuals: - It depends on the quality of

followers. If people tend to have more qualities of theory ‘X’
authoritarian leadership would be more appropriate.

3. Difference between jobs: - White collar job require less control than
the blue collar jobs at the lower level.

3. Difference between organisations: - Organizations differ on the basis

of their size, age, ownership pattern and Managerial pattern.
Leadership tends to defer according to the type of organization. The
leadership pattern in a Military or a government organization is entirely
different from that of a business organization.

Leadership Styles:

1. Leadership styles are essentially the patterns of behaviour which a

leader adopts to influence the behaviour of his subordinates.

2. The following are the three Leadership styles.

I - Autocratic Leadership:-

1. This is also known as authoritarian or a directive style where a

leader Centralises decision making power for himself.

2. Under this style the work is highly structured by the leader and the
subordinates are just asked to do what they are told.

3. Autocratic Leadership style can further be divided into two

categories (1) Strict Autocrat (2) Benevolent autocrat.

Strict Autocrat: - He is a strict follower of the autocratic style where

he adopts negative motivation techniques like, criticising
subordinates or imposing penalties on them to influence their

Benevolent Autocrat: - Here the leader centralises the decision

making power for himself, but adopts positive motivation
techniques to influence the behaviour of his subordinates.

Advantages of Autocratic Style:

This style is a success where subordinates prefer to work under

centralised authority. E.g.: Theory X.

Quick decision is taken as the power is centralised.


1. People in the organization dislike it where it is highly

authoritative and negative motivational techniques are used.

2. Lack of motivation, low morale and frustration among the

subordinates effect the efficiency of the organization.

3. There is very little or no scope for the leaders to develop from the
power levels. E.g.: Mrs. Indira Gandhi’s style of functioning.

II – Participative Leadership:

1. This is called democratic or consultative style where the leader

decentralises the decision making process.

2. Instead of taking unilateral decisions, the leader emphasises on

consultation and participation of his subordinates.

3. Subordinates are broadly informed about the conditions affecting

them and their work.

4. The participation might be real or pseudo. In some cases the leader

preaches participation in theory, but he really does not prefer it in

1. It is a highly motivating technique to the subordinates as their ideas

& suggestions are given weight in the decision making.

2. The productivity and commitment of the subordinates is increased

as they are a party to the decision.

3. Subordinates try to share the responsibility with the superior and

also try to protect him.

4. There is greater organisational stability due to high morale and


Free – Rein Leadership (or) Laisser – Faire:

1. This technique gives complete freedom to its subordinates.

2. Under this style the superior once determines the policies

programmes and limitations to actions and then the entire process is
left to the subordinates .

2. In practice this style is rarely found where it creates confusion in the

organization due to excess decentralisation.


1 2 3 4 5 6 7 8 9Concern for people

1,9 9,9
country club team

Middle road

1, 1 Task
impoverished 9, 1

1 2 3 4 5 6 7 8 9

2.1. Exertion of minimum effort to get work done and sustain

organization morale.
1.9. Thoughtful attention to needs of people leads to a friendly and
comfortable organization atmosphere.
9.1. Efficiency results from arranging work in such a way that human
elements have little effect.
5.5. Adequate performance through balance of work requirements and
maintain satisfactory morale.
9.9. Work accomplishment is from committed people with
interdependence through common stake in organization purpose and
with trust and respect.