CHAPTER FIVE

THE LEADING FUNCTION

5.1. Meaning and need for leadership

Definition of Leadership

A traditional definition of leadership: Leadership is an interpersonal influence directed

toward the achievement of a goal or goals. Three important parts of this definition are the
terms interpersonal, influence, and goal. Interpersonal means between persons. Thus, a
leader has more than one person (group) to lead. Influence is the power to affect others. .
Goal is the end one strives to attain.

Putting it differently Leadership-is the process of influencing employees to work toward the
achievements of organizational objectives.

 Is the process by which a person exerts influence over other people; and inspires, motivates,
and directs their activities to help achieve group or organizational goals.
 Is the process of influencing individuals to set and achieve goals.
The need for leadership

Leading is needed in an organization to influence, direct and guide activities of individuals and
groups so as to help the organization achieve its objectives.

Management Vs Leadership / manager Vs Leader

Management is the process of setting and achieving the goals of the organization through the
functions of management: planning, organizing, directing (or leading), and controlling. A
manager is hired by the organization and is given formal authority to direct the activity of
others in fulfilling organization goals. Thus, leading is a major part of a manager's job. Yet a
manager must also plan, organize, and control. Generally speaking, leadership deals with the
interpersonal aspects of a manager's job, whereas planning, organizing, and controlling deal
with the administrative aspects. Leadership deals with change, inspiration, motivation, and
influence. Management deals more with carrying out the organization's goals and maintaining
equilibrium.

Managers plan, organize, staff, lead, and control. They may or may not be effective in influencing
their subordinates or team members to set and achieve goals. Leaders, on the other hand are
involved in single function of management that is leading they are individuals who are able to exert
influence over other people to achieve organizational objectives. Leadership involves creating and
sharing of visions, generating strategies to bring visions to realize. There fore, leaders and managers
are not necessarily the same; it is mainly because leading perform only one aspect of management
functions. Managers can be leader because they can perform leading function. But may not be
effective leaders since they may not have enough ability to influence others.

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5.2. LEADERSHIP THEORIES

A. TRAIT THEORY
The trait theory or leadership focused on identifying the personal characteristics that are responsible
for effective leadership. It is based on the assumption that leaders are born not made. That is good
leaders are born naturally, not made. According to this theory effective leaders must have the
following traits

 Intelligence: helps managers understand complex issues and solve problem

 Self confidence: contributes to managers effectively influencing subordinates and persisting
when faced with difficulties.
 Integrity and honesty: helps managers behave ethically and earn their subordinates trust
and confidence.
 Physical traits: such as height, appearances etc.
 Social traits: such as cooperativeness skill etc.
Traits alone however, are not the key to understand leader effectiveness. Some effective leaders do
not possess all of these traits, are some leaders who do possess them but not effective in their
leadership roles.

B. THE BEHAVIOURAL THEORY

Behavioural studies had their roots in the Ohio State University and university of Michigan by careful
study of the behaviours of specific leaders. This theory tried to identify the behaviours shown by
leaders in the work environment and they were generally able to identify two sets of leaders.

I. WORK CENTRED (CONCERNED FOR TASK) LEADERS

 This approach is also referred to as initiating structure, job centeredness and task orientation.
 This considers leaders who are authoritarian, autocratic, production oriented and activity
focused. A leader with such behaviour mostly tends to
- plan and define work
- Assign task responsibilities
- set clear work standards
- Urges for tasks completion
- Monitors performance results persistently, etc...

II. EMPLOYEE CENTRED (PEOPLE CENTRED) LEADERS

 Such leaders are also known as democratic, considerate, consultative and participative leaders.
 They tend to share decisions with subordinates, encourage participation, and support the team
work needed for high levels of task accomplishment.
 A leader with such behaviour tends to
- Act warmly and supportive to followers
- Develops social rapport with followers
- Respects the feeling of followers
- Is highly sensitive to the needs of followers
- Shows trust and confidence in followers.

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 C. SITUATIONAL THEORY

Situational leadership theory attempts to determine the appropriate leadership style for various
situations. Fiddler’s contingency model suggests that managers should choose task or employee
focus depending on the interaction of three situation variables: leader member relation, task
structure, and leader position power.

Leader-member relations:- the extent to which followers like, trust, and are loyal to their leader is
determinant of how favourable a situation for leading. If leader-member relations are good
situations are good for leading. If relation is poor, the manager may have to resort to negotiation or
to promising favours to get performance.

Task structure: - The extent to which the work to be performed is clear-cut. When task structure is
high, situations are favourable for leading. When task structure are low, goals may be vague,
subordinates may be unsure of what they should be doing or how they should do it, and the
situation is unfavourable for leading.

Position power: How much authority does the manager possess?

5.3. LEADERSHIP STYLES

Based on the degree to which managers share decision making authority with subordinates
leadership styles can be classified in to three: Autocratic, democratic , and laissez-faire

5.3.1. Autocratic leadership style

A leadership style in which a manager does not share decision-making authority with subordinates.
Managers, who tend to be heavily work – centered, placing most of their emphasis on task
accomplishment and little on the human elements.   Autocratic leadership style is characterized by:

 Managers’ emphasis on close control

 Managers’ willingness to delegate a very little decision-making authority.
 No flow of information from subordinates (Leader- subordinate relation ship is
characterized by order giving on the leader’s part)
 Sensitivity of managers about their authority.
 Leader’s assumption that payment is a just reward for working

5.3.2. Democratic leadership style

It is a leadership approach in which a manager shares decision –making authority with subordinates.
Managers who have high concern for both people and work practice it. In democratic leadership
managers:

 are not much sensitive about their authority

 participate employees in decision making
 Appreciate suggestions from subordinates
 Exercise broad supervision
 Motivate subordinates with rewards

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 5.3.3. Laissez-faire (free-rein style)

It is leadership approach in which a manager develops a frame work for subordinates in which they
can act and leave decision making authority to the subordinates and remain for consultation. It is
employed by managers who are basically uninvolved in the operations of the unit. This type of
leadership is mostly applied in organizations with highly skilled and well-trained professional.

5.3.4. Situational leadership style

It is leadership approach in which managers utilize the combination of the above style depending on
the situation in external environment.

5.3.5. Theory X and Theory Y-assumptions

Are assumptions about human nature developed by Douglas Mc Gregor. He developed the
assumptions based on the attitude that managers have about workers. Theory X and Theory Y each
represent different ways in which leaders view employees. Theory X managers believe that
employees are motivated mainly by money, are lazy, uncooperative, and have poor work habits.
Theory Y managers believe that subordinates work hard, are cooperative, and have positive
attitudes.

Theory - X assumes the following

 The average worker is lazy, dislikes job, and will avoid work whenever possible
 Because most people dislike work, they have to be closely supervised and threatened with
punishment to reach objectives.
 Above all people want security
 Average people prefer to be directed, wish to avoid responsibilities and they have little
ambition.

Theory X leads naturally to an emphasis on the tactics of control - to procedures and techniques for
telling people what to do, for determining whether they are doing it, and for administering rewards
and punishment. Theory X explains the consequences of a particular managerial strategy. Because its
assumptions are so unnecessarily limiting, it prevents managers from seeing the possibilities inherent
in other managerial strategies. As long as the assumptions of Theory X influence managerial strategy,
organizations will fail to discover, let alone utilize, the potentialities of the average human being.

Theory- Y assumes the following

 Most people find work as natural as play or rest and develop an attitude toward work based
on their experience with it.
 People do not need to be threatened with punishment; they will work voluntarily toward
organizational objectives to which they are committed.
 The average person working under proper condition not only to accept but also to seek
responsibility.
 Managers should decentralize authority to employees and make sure employees have the
resources necessary to achieve organizational goals

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 Theory Y's purpose is to encourage integration, to create a situation in which an employee can
achieve his or her own goals best by directing his or her efforts toward the objectives of the
organization. It is a deliberate attempt to link improvement in managerial competence with the
satisfaction of higher-level ego and self-actualization needs. Theory Y leads to a preoccupation with
the nature of relationships, with the creation of an environment which will encourage commitment to
organizational objectives and which will provide opportunities for the maximum exercise of initiative,
ingenuity, and self-direction in achieving them.

5.4. MOTIVATION (CONCEPTS AND THEORIES)

Motivation- is an inner desire to satisfy an unsatisfied need.

- is the result of the interaction of a person’s internal needs and external influences that
determine behavior.
- Is willingness to achieve organizational objectives.
- Is psychological force that determines the direction of a person’s behavior in an
organization, a person’s level of effort and a person’s level of persistence.

Motivation can be internal or external type. Intrinsic Motivation: behavior performed for its own
sake. Motivation comes from performing the work. Extrinsic Motivation: behavior performed to
acquire rewards. Motivation source is the consequence of an action.

Theories of Motivation
A) Carrot and Stick approach- This theory of motivation is based on the tradition which says that” give
carrot for donkey to make go quick and bit with stick if it refuses to move fast having eaten the
carrot”. In an organization, it means that pay adequate money to your employees to motivate them
or to make them work; if they fail to perform fairly, punish them to work in front of the worker are
place job security and other financial rewards-carrot. If the worker does not move for ward, the
stick (the loose of pay raises, demotions, outright, fringe benefits is used.)
B) Maslow’s Hierarchy of Needs- Abraham Maslow, a psychologist, proposed that all people seek to
satisfy five basic kinds of needs; physiological needs, safety needs, social needs, esteem needs and
self actualization needs.
Level I - physiological needs; includes basic needs such as need for food, cloth, shelter, sex etc. The
organization helps to satisfy employees' physiological needs by a paycheck.
Level II - Safety needs;- are needs to avoid financial and physical problems. The organization helps
to satisfy employees' safety needs by benefits
Level III - Social needs; - are needs for friendship, affiliation, attraction etc. The supervisor can help
fulfill social needs by showing direct care and concern for employees.
Level IV - Esteem needs;-are needs for self respect, recognitions etc. The organization helps to
satisfy employees' esteem needs by matching the skills and abilities of the employee to the job. The
supervisor can help fulfill esteem needs by showing workers that their work is appreciated.
Level V - Self-actualization needs;-I s needs for maximizing ones skill, abilities, and other potentials.
It is a need for attaining the maximum possible development. . The supervisor can help fulfill self-
actualization needs by assigning tasks that challenge employees' minds while drawing on their
aptitude and training. Maslow’s theory is based on four premises (assumptions)
1. Only unsatisfied need can influence behaviour: satisfied need is not a motivator
2. A persons needs are arranged in a priority order of importance in hierarchical forms
3. A person will at least minimally satisfy each level of need before filling the need at the next
level
4. If need satisfaction is not maintained at any level the unsatisfied need will become priority
ones again.

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 How managers fulfil needs to the employees?

ypes of Needs A) Ways of Fulfilling Needs

B) Physiological needs a. Paying adequate wage and salaries so that

employee can buy basic necessities.
b. Providing quality work life, making  work
C) Safety Needs environment smart, keep in pension plans,
purchasing protection     clothes (gloves)

D) Social Needs c. Allowing employees to strengthen informal groups

and to communicate each other at work place

E) Esteem Needs d. Increasing responsibilities to workers and

appreciating them on their performances

F) Self Actualization e. Training employees whose challenging duties

and making environment smooth  for emp

Lower level needs

must be satisfied
before higher needs Self Actualization

are addressed. Social Needs

Esteem Needs

Safety Needs

Physiological Needs

Fig 5.5 Abraham Maslow’s hierarchy of needs

D. Hertzberg’s two-factor theory

Psychologist F. Hertzberg developed needs theory called two-factor or hygiene-motivator theory.
According to this theory there are two sets of factors where one set of factors lead to job
dissatisfaction; these are called hygiene factors. The other set of factors that produce job
satisfaction and motivations; these are called motivators.

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Hygiene factors are extrinsic to the job i.e., they don’t relate directly to a person’s actual work
activity. Hygiene factors are part of a job’s environment; they are part of context of the job, not its
content. According to Hertzberg, when hygiene factors that an employee provides are not sufficient,
workers will be dissatisfied. When the factors are of sufficient finally they don’t necessarily act as
motivators. Hygiene factors include: salary, job security, working condition, company policies,
quality of interpersonal relationship among peers, supervisors, subordinates, etc.

Motivations Factors- are the primary cause of job satisfaction according to Hertzberg. They are
intrinsic to a job and relate directly to the real nature of the work people perform. In other words,
motivation factors relate to the job content.

When an employer fails to

provide motivation factors,
employees will be
dissatisfied. With quality
motivation factors,
employees enjoy job
satisfaction and provide
high performance.
Different people require
different kinds and degree
of motivation factors –
what stimulates one worker
may not affect another.
Generally, managers can
use their knowledge to
ensure that hygiene factors
are there in the
environment as foundation
on which to build
motivation. Once top
management has provided
satisfactory hygiene factors,
they can focus on
motivation factors.
Moreover, according to
Hertzberg, hygiene factors
Fig 5.9 Maslow Vs Herzberg motivation theory
will not motivate workers
but their absence de
motivates them.

5.5. COMMUNICATION IN AN ORGANIZATION

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