Leadership and Management - Relationship & Differences

Leadership and management are the terms that are often considered synonymous. It is essential to understand that leadership is an essential
part of effective management.

As a crucial component of management, remarkable leadership behaviour stresses upon building an environment in which each and every
employee develops and excels. Leadership is defined as the potential to influence and drive the group efforts towards the accomplishment of goals.
This influence may originate from formal sources, such as that provided by acquisition of managerial position in an organization.

A manager must have traits of a leader, i.e., he/she must possess leadership qualities. Leaders develop and begin strategies that build and
sustain competitive advantage. Organizations require robust leadership and robust management for optimal organizational efficiency.

Differences between Leadership and Management

Leadership differs from management in a sense that:

1. While managers lay down the structure and delegates authority and responsibility, leaders provides direction by developing the
organizational vision and communicating it to the employees and inspiring them to achieve it.
2. While management includes focus on planning, organizing, staffing, directing and controlling; leadership is mainly a part of directing
function of management. Leaders focus on listening, building relationships, teamwork, inspiring, motivating and persuading the
followers.
3. While a leader gets his authority from his followers, a manager gets his authority by virtue of his position in the organization.
4. While managers follow the organization’s policies and procedure, the leaders follow their own instinct.
5. Management is more of science as the managers are exact, planned, standard, logical and more of mind. Leadership, on the other
hand, is an art. In an organization, if the managers are required, then leaders are a must/essential.
6. While management deals with the technical dimension in an organization or the job content; leadership deals with the people aspect in
an organization.
7. While management measures/evaluates people by their name, past records, present performance; leadership sees and evaluates
individuals as having potential for things that can’t be measured, i.e., it deals with future and the performance of people if their
potential is fully extracted.
8. If management is reactive, leadership is proactive.
9. Management is based more on written communication, while leadership is based more on verbal communication.

The organizations which are over managed and under-led do not perform upto the benchmark. Leadership accompanied by management
sets a new direction and makes efficient use of resources to achieve it. Both leadership and management are essential for individual as well
as organizational success.

Leader versus Manager

“Leadership and managership are two synonymous terms” is an incorrect statement. Leadership doesn’t require any managerial position to act
as a leader. On the other hand, a manager can be a true manager only if he has got the traits of leader in him. By virtue of his/her position,
manager has to provide leadership to his group.

A manager has to perform all five functions to achieve goals, i.e., Planning, Organizing, Staffing, Directing, and Controlling. Leadership is a part of
these functions.

Leadership as a general term is not related to managership. A person can be a leader by virtue of qualities in him. For example: leader of a club,
class, welfare association, social organization, etc. Therefore, it is true to say that, “All managers are leaders, but all leaders are not managers.”

A leader is one who influences the behavior and work of others in group efforts towards achievement of specified goals in a given situation. On
the other hand, manager can be a true manager only if he has got traits of leader in him. Manager at all levels are expected to be the leaders of
work groups so that subordinates willingly carry instructions and accept their guidance. A person can be a leader by virtue of all qualities in him.

Leaders and Managers can be compared on the following basis:

Basis Manager Leader

A person becomes a leader on basis of his personal

Origin A person becomes a manager by virtue of his position.
qualities.

Manager has got formal rights in an organization

Formal Rights Rights are not available to a leader.
because of his status.

The group of employees whom the leaders leads are his

Followers The subordinates are the followers of managers.
followers.

Leader influences people to work willingly for group

Functions A manager performs all five functions of management.
objectives.
 A leader is required to create cordial relation between
Necessity A manager is very essential to a concern.
person working in and for organization.

Stability It is more stable. Leadership is temporary.

Mutual
All managers are leaders. All leaders are not managers.
Relationship

Manager is accountable for self and subordinates

Accountability Leaders have no well defined accountability.
behaviour and performance.

Concern A manager’s concern is organizational goals. A leader’s concern is group goals and member’s satisfaction.

Followers People follow manager by virtue of job description. People follow them on voluntary basis.

A manager can continue in office till he performs his

Role A leader can maintain his position only through day to day
duties satisfactorily in congruence with organizational
continuation wishes of followers.
goals.

A leader has command over different sanctions and related

Manager has command over allocation and distribution
Sanctions task records. These sanctions are essentially of informal
of sanctions.
nature.

Authority vs Leadership

The authority exercised is a kind of legitimate power and people follow figures exercising it, because their positions demand so irrespective of
the person holding the position. Leaders in organizations and elsewhere may have formal authorities but they mostly rely on the
informal authority that they exercise on people to influence them.

Leaders are trusted for their judgment and respected for their expertise, integrity etc and hence followed and not because they hold a certain
position. For e.g. M.K. Gandhi for most part did not hold any official position to lead the Indian freedom struggle.

It is also important to understand that a formal authority and power emerging from it, might not always be able to influence people in the
desired manner as; in times of crisis and difficulties people view it as coercion. On the other hand leadership tends to create followers out of free
will and choice without forcing them to accept anything thrown their way.

Authority rarely provides a scope for feedback, constructive criticism or opinions of the people on whom it is exercised however leaders provide
ample platform to their followers to voice their thoughts and feedback.

When dealing with adults, the sole use of authority to direct and discipline them hardly works, leadership provides a better approach of sharing
and involving thus building rapports with followers and creating long term relationships. Authority can hardly make people change their
attitudes and behaviors with lasting effects and results however a leader inspires followers through self modeled ways and hence leadership
displays greater effectiveness in addressing attitudes and behaviors of people.

Exercising authority sometimes limits the approaches to arrive at solutions for issues and problems while leadership encourages people to look
beyond the obvious and think innovatively and sometimes emerge with radical solutions.

Apart from it, the biggest difference between the two as cited by Stephen R Covey is the moral authority held by leaders over the followers which
is absent in the case of power from authority.

Within the organizational setup when leaders also have moral authority on their subordinates by establishing a synchrony in their words and
actions; the rest of the structure and processes of the organization also get aligned to it, thus creating a robust and transparent culture.

Authoritative way of working also encourages individuals to work in silos while in the organizations of today; the leaders need to have a complete
picture and coordinate with other functions and departments as and when required. It is indeed difficult for mangers and leaders to move out of
their circle of authority and coordinate and interact with external people. However the need of the hour and the more effective approach to
leadership and management is when leaders come out of their comfort zone and move from exercising authority on a small group to leading the
entire organization.

Individuals, who do not rely on authority but lead people, are the ones who enjoy the privilege of their ideologies and thoughts
practiced by later generations long after they are gone. Even with individuals who held positions of responsibilities, the ones who actually led
their people are the ones remembered and followed.
Leadership and Motivation

Motivation is a goal-oriented characteristic that helps a person achieve his objectives. It pushes an individual to work hard at achieving his or her
goals. An executive must have the right leadership traits to influence motivation. However, there is no specific blueprint for motivation.

As a leader, one should keep an open perspective on human nature. Knowing different needs of subordinates will certainly make the decision-
making process easier.

Both an employee as well as manager must possess leadership and motivational traits.

An effective leader must have a thorough knowledge of motivational factors for others. He must understand the basic needs of employees, peers and
his superiors. Leadership is used as a means of motivating others.

Given below are important guidelines that outline the basic view of motivation:

 Harmonize and match the subordinate needs with the organizational needs. As a leader, the executive must ensure that the
business has the same morals and ethics that he seeks in his employees. He should make sure that his subordinates are encouraged
and trained in a manner that meets the needs of the business.
 Appreciation and rewards are key motivators that influence a person to achieve a desired goal. Rewarding good/ exceptional
behavior with a small token of appreciation, certificate or letter can be a great motivator. If a certificate is awarded to a person, it
should mention the particular act or the quality for which the individual is being rewarded.
 Being a role model is also a key motivator that influences people in reaching their goals. A leader should set a good example to ensure
his people to grow and achieve their goals effectively.
 Encouraging individuals to get involved in planning and important issues resolution procedure not only motivates them, but also
teaches the intricacies of these key decision-making factors. Moreover, it will help everyone to get better understanding of their role in
the organization. The communication will be unambiguous and will certainly attract acknowledgement and appreciation from the
leader.
 Developing moral and team spirit certainly has a key impact on the well-being of an organization. The metal or emotional state of a
person constitutes his or her moral fabric. A leader’s actions and decisions affect the morale of his subordinates. Hence, he should
always be aware of his decisions and activities. Team spirit is the soul of the organization. The leader should always make sure his
subordinates enjoy performing their duties as a team and make themselves a part of the organization’s plans.
 A leader should step into the shoes of the subordinates and view things from subordinate’s angle. He should empathize with them
during difficult times. Empathizing with their personal problems makes them stronger-mentally and emotionally.
 A meaningful and challenging job accomplished inculcates a sense of achievement among employees. The executive must make
their employees feel they are performing an important work that is necessary for the organization’s well-being and success. This
motivational aspect drives them to fulfill goals.

Remember, “To become an efficient leader, you must be self-motivated”. You must know your identity, your needs and you must have a
strong urge to do anything to achieve your goals. Once you are self-motivated, only then you can motivate others to achieve their goals and to
harmonize their personal goals with the common goals of the organization.

Emotional Intelligence for Leaders

An organization is made up of people and when people are involved, emotions automatically come into play, and a workplace is no different. It
would be unwise to assume that a workplace is all objective, no-emotion only performance kind of a packed room where hormones have no
scope to creep in however the fact is that emotions alone are the biggest motivator or de-motivator of an employee.

The emotions alone, govern the performance and efficiency of a worker and had it not been the case, we would have never talked about the
importance of work-life balance and for the present context, the need of emotionally intelligent leaders.

The current times are very dynamic not just economically but also socially where the social fabric is rapidly evolving due to globalization and
other influences. The average age of the workforce is reducing and the leaders now look forward to managing people belonging to different
cultures and backgrounds. In such a situation, it is important for a leader to be highly sensitized to the emotional aspects of his/her transactions
with people.

Emotional Intelligence is basically the ability to recognize and understand one’s own feelings and emotions as well as those of others
and use that information to manage emotions and relationships. The 4 important aspects of EI as proposed by Daniel Goleman are:

 Self Awareness
 Self Management
 Social Awareness
 Relationship Management or Social Skills

A leader tends to have a huge influence on the thoughts and motivation of people. He/she has the capacity to enthuse optimism and confidence
in the followers and lead them to constructive endeavors which is called resonance and on the other hand they can negatively influence them to
destruct, e.g of such leaders being Hitler and d Osama Bin Laden which is opposite to resonance called desonance.

Leaders are closely observed in terms of their body language, facial expressions etc. So, it is important for a leader to consider the non-
verbal form of expressions as well, which may positively or negatively influence followers. Therefore, if a leader is talking about ethics in
business with a slightly unconvinced and bemused look on his face, the followers make a note of it and the message is not received by them. A
leader has to act as a role model too, supporting his statements, ideologies and values with appropriate actions.

As a leader one also has to be aware of one’s own capabilities and weaknesses, it is difficult to accept guidance from a leader who is not self
aware. As managers, leaders have to empathize as well with the situations, emotions, aspirations and motivations of the subordinates.
A decreasing performance of a team member might be because of a number of reasons, a disruptive worker might be facing motivation issues
and a subordinate who uses abusive language with others might be lacking confidence in his own abilities. A leader needs to discern facts and try
and reach to deeper levels and understand things beyond obvious.

Apart from the above reasons, Emotional Intelligence is also important because the followers or subordinate expect it from their leaders. A
subordinate working closely with the manager would expect the manager to understand his situation and priorities. And not surprisingly,
whether manger does so or not, affects his level of commitment and performance at work.

A leader has to suitably know and understand when he/she needs to be directive and when he needs to delegate. He/she needs to be
aware, when the team members are acting as one unit and when there are differences.

It is sometimes awkward to address emotional aspects of transactions between people but leaders need to understand the importance and
relevance of it as it has a huge impact on the performance outcomes.

While conducting reviews and development dialogues, the feedback has to be delivered in a manner which is acceptable. The leader needs to
be sensitive to the insecurities and apprehensions of the subordinates which sometimes might be expressed and sometimes kept
undisclosed. At the senior level it is all the more important as the senior executives find it hard to clearly outline their anxieties and differences
and the leader has to anticipate some of them.

So, to be able to attract and retain talented subordinates and keep them motivated, a leader needs to brush up on his people skills and
emotional intelligence, as all of them are not born with the charisma to hold people. Fortunately, emotional intelligence with practice and
carefully directed efforts can be increased.

Organizational Leadership

Organizations need strong leadership for optimum effectiveness. Leadership, as we know, is a trait which is both inbuilt and can be acquired
also. Organizational leadership deals with both human psychology as well as expert tactics. Organizational leadership emphasizes on
developing leadership skills and abilities that are relevant across the organizations. It means the potential of the individuals to face the hard
times in the industry and still grow during those times. It clearly identifies and distinguishes the leaders from the managers. The leader should
have potential to control the group of individuals.

An ideal organizational leader should not dominate over others. He should guide the individuals under him, give them a sense of direction to
achieve organizational goals successfully and should act responsibly. He should be optimistic for sure. He should be empathetic and should
understand the need of the group members. An organizational leader should not only lead others individually but also manage the actions of the
group.

Individuals who are highly ambitious, have high energy level, an urge to lead, self-confidence, intelligence, have thorough knowledge of job, are
honest and flexible are more likely to succeed as organizational leaders. Individuals who learn the organizational leadership develop abilities and
skills of teamwork, effective communication, conflict resolution, and group problem solving techniques. Organizational leaders clearly
communicate organizational mission, vision and policies; build employees morale, ensure efficient business operations; help employees grow
professionally and contribute positively towards organizations mission.

Tips for Effective Organizational Leadership

1. A leader must lead himself, only then he can lead others. He must be committed on personal and professional front, and must be
responsible. He must be a role model for others and set an example for them.
2. A leader must boost up the morale of the employees. He should motivate them well so that they are committed to the organization. He
should be well acquainted with them, have concern for them and encourage them to take initiatives. This will result in more efficient
and effective employees and ensure organizational success.
3. A leader must work as a team. He should always support his team and respect them. He should not hurt any employee. A true leader
should not be too bossy and should not consider him as the supreme authority. He should realize that he is part of the organization as
a whole.

Organizational leadership involves all the processes and possible results that lead to development and achievement of organizational goals. It
includes employees’ involvement, genuineness, effective listening and strategic communication

Leadership Ethics - Traits of an Ethical Leader

Ethics refer to the desirable and appropriate values and morals according to an individual or the society at large. Ethics deal with the purity of
individuals and their intentions. Ethics serve as guidelines for analyzing “what is good or bad” in a specific scenario. Correlating ethics with
leadership, we find that ethics is all about the leader’s identity and the leader’s role.

Ethical theories on leadership talk about two main things: (a) The actions and behaviour of leaders; and (b) the personality and character of
leaders. It is essential to note that “Ethics are an essential to leadership”. A leader drives and influences the subordinates / followers to achieve
a common goal, be it in case of team work, organizational quest, or any project. It is an ethical job of the leader to treat his subordinates with
respect as each of them has unique personality. The ethical environment in an organization is built and developed by a leader as they have an
influential role in the organization and due to the fact that leaders have an influence in developing the organizational values.
An effective and ethical leader has the following traits / characteristics:

Dignity and respectfulness: He respects others. An ethical leader should not use his followers as a medium to achieve his personal goals.
He should respect their feelings, decision and values. Respecting the followers implies listening effectively to them, being compassionate to
them, as well as being liberal in hearing opposing viewpoints. In short, it implies treating the followers in a manner that authenticate their
values and beliefs.
 Serving others: He serves others. An ethical leader should place his follower’s interests ahead of his interests. He should be humane. He
must act in a manner that is always fruitful for his followers.

Justice: He is fair and just. An ethical leader must treat all his followers equally. There should be no personal bias. Wherever some
followers are treated differently, the ground for differential treatment should be fair, clear, and built on morality.

Community building: He develops community. An ethical leader considers his own purpose as well as his followers’ purpose, while
making efforts to achieve the goals suitable to both of them. He is considerate to the community interests. He does not overlook the
followers’ intentions. He works harder for the community goals.

Honesty: He is loyal and honest. Honesty is essential to be an ethical and effective leader. Honest leaders can be always relied upon and
depended upon. They always earn respect of their followers. An honest leader presents the fact and circumstances truly and completely,
no matter how critical and harmful the fact may be. He does not misrepresent any fact.

It is essential to note that leadership is all about values, and it is impossible to be a leader if you lack the awareness and concern for your own
personal values. Leadership has a moral and ethical aspect. These ethics define leadership. Leaders can use the above mentioned traits as
yardsticks for influencing their own behaviour.

Leadership Strategy - Which Leadership Style to Follow ?

Without an effective leadership strategy, it is believed, that the organizational strategies do not work. Best players in a team do not guarantee
success without a great coach, similarly, work teams may not function effectively if leaders do not follow an appropriate leadership strategy.

To understand leadership styles here are three scenarios:

Scenario 1 - A Teacher gives a question to the class full of students, however, solves it for them;

Scenario 2 - A Teacher gives the question to the students and observes how students solve them;

Scenario 3 - A Teacher gives a question to the students and moves around the class, observes the students, and helps wherever required.

Scenario 1 was “Leading from the Front”, Scenario 2 was “Supportive Leadership Style”, and Scenario 3 was “Interactive Leadership Style”.
Besides this the leadership styles / strategies could be based on personality traits like Directive Leadership, Structured Leadership, Intuitive
Leadership, or Process Driven leadership.

Here are some tips while selecting leadership strategy / style:

A leader must be aware of his / her personality traits and those of his team members / followers to understand which leadership style will
be most effective.

A leader may not adopt a consistent leadership all through his / her career. Situational Leadership helps addressing varied needs /
expectations of the followers as he the leader adopts a strategy based on a situation he / she is in. In case a leader has a self-reliant team,
he needs to be using a directive leadership style or lead form the front. He could instead delegate and provide inputs where necessary.

A common mistake especially a lot of new leaders make is to copy established / well know leaders. Remember, each situation is unique
and so are the followers. A leadership style which may be suited to a well known leader may not be appropriate for your team. Make no
mistake here - do not try and imitate other leaders.

A leader will never be afraid of trying new approach to solve a work problem or address a conflicting situation. It is quite a possibility that a
leader adopts a style that is not by the book.

A leader must keep enhancing his / her leadership skills. While on the job experience matters a lot, getting enrolled into leadership courses
after detailed evaluation of the program and feedback of the participants will help implementing a leadership style more effectively.

It is often said that good leaders are born and not made; however, good leaders are those who are aware of their personality traits and also of
their followers. They know which leadership style is to be adopted in a particular situation. Once this is done, there is a little challenge left for a
leader to become a “good / great” leader.

Leadership Styles - Important Leadership Styles

All leaders do not possess same attitude or same perspective. As discussed earlier, few leaders adopt the carrot approach and a few adopt the
stick approach. Thus, all of the leaders do not get the things done in the same manner. Their style varies.

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The leadership style varies with the kind of people the leader interacts and deals with. A perfect/standard leadership style is one which
assists a leader in getting the best out of the people who follow him.
Some of the important leadership styles are as follows:

1. Autocratic leadership style: In this style of leadership, a leader has complete command and hold over their employees/team. The
team cannot put forward their views even if they are best for the team’s or organizational interests. They cannot criticize or question
the leader’s way of getting things done.

The leader himself/herself gets the things done. The advantage of this style is that it leads to speedy decision-making and greater
productivity under leader’s supervision. Drawbacks of this leadership style are that it leads to greater employee absenteeism and
turnover.

This leadership style works only when the leader is the best in performing or when the job is monotonous, unskilled and routine in
nature or where the project is short-term and risky.

2. The Laissez Faire Leadership Style: Here, the leader totally trusts their employees/team to perform the job themselves. He just
concentrates on the intellectual/rational aspect of his work and does not focus on the management aspect of his work.

The team/employees are welcomed to share their views and provide suggestions which are best for organizational interests. This
leadership style works only when the employees are skilled, loyal, experienced and intellectual.

3. Democrative/Participative leadership style: The leaders invite and encourage the team members to play an important role in
decision-making process, though the ultimate decision-making power rests with the leader.

The leader guides the employees on what to perform and how to perform, while the employees communicate to the leader their
experience and the suggestions if any. The advantages of this leadership style are that it leads to satisfied, motivated and more skilled
employees. It leads to an optimistic work environment and also encourages creativity. This leadership style has the only drawback that
it is time-consuming.

4. Bureaucratic leadership: Here the leaders strictly adhere to the organizational rules and policies. Also, they make sure that the
employees/team also strictly follows the rules and procedures. Promotions take place on the basis of employees’ ability to adhere to
organizational rules.

This leadership style gradually develops over time. This leadership style is more suitable when safe work conditions and quality are
required. But this leadership style discourages creativity and does not make employees self-contented.

How to Create a Personal Leadership Brand ?

Every leader has a personal leadership brand which might be carefully cultivated or intuitively perceived by leaders themselves and
their followers. A personal leadership brand is an exclusive and a specific approach of a leader to address challenges and manage his/her
transactions with their subordinates or followers. The best part of having a leadership brand is that it allows the flexibility to the leaders to define
their own leadership objectives and then position themselves appropriately as per the need and situation. For example Lee Iacocca promulgated
a leadership brand which was resolute, determined, persuasive and ready to take risks which helped him turn around Chrysler similarly Gandhi’s
leadership brand was that of integrity, honesty, principles, strength of character and above all truth.

It is essential for a leader to practice his/her leadership brand in thoughts and actions. How can a leader build up a leadership brand if they do
not have one already. A leadership brand helps distinguish leaders and also outlines their approach, values, beliefs etc.

1. The first step definitely is identifying and establishing the results one wants to achieve by the end of a specific time period with a focus
on preserving the interests of key stakeholders.
2. The second step becomes those distinguishing features with which one wants to be known as a leader. For e.g. one might identify drive
for result as one’s core strength area and can create a leadership brand based on the same
3. The next step becomes defining your identity. One might chose two or three word phrases to define their approach to leadership like
Innovating to Excel etc
4. The last step becomes coming up with a leadership statement which conjuncts what one wants to be known for and what one wants to
achieve

It is also important for leaders to check their leadership brand with seniors, subordinates and other stake-holders to understand their
expectations from the role; and if any disconnect is pointed out, it needs to be incorporated.

Apart from the above aspects, leaders need to role model themselves and redefine their perceptions and ambitions to encompass the entire
institution, which they represent. A leader needs to put the interests of the organization and stakeholders before his/her personal ambition and
goals and strive to create success which is sustainable and does not need their constant presence.

The leaders need to understand that a personal leadership brand cannot be created overnight but credibility is earned the hard way,
through years of perseverance. Once a leadership brand is created its acceptance and stability is established only after results are achieved.
So, if a leader identifies certain goals but fails to achieve them, there are no takers for that leadership brand, similarly if a leader displays
behaviors contradictory to what is outlined by his brand values, then also the credibility and respect of the brand is lost.

Level 5 Leadership

We have always associated leadership with a very visible and popular role which gives you recognition and a larger than life status as a leader
however the level 5 leadership proposes quite opposing characteristics of a successful leader.
Jim Collins and his research team were exploring the factors that made good companies great way back in the 1960s. It was then that they
stumbled upon the Level 5 leaders who were invariably at the helm of affairs of all the companies which went on to become great in their
respective fields.

Who exactly is a Level 5 leader? Collins describes Level 5 leader as Humility + Will = Level 5. They are the nurturing leaders who do not want
credit but want success to sustain over a longer period of time, long after they are gone.

Level 5 leaders are modest, shy and fearless and possess the capability to transform an organization from good to great without
portraying themselves as wizards with magic wands. They prefer talking about the company and the contribution of other people but rarely
about their role or achievements. Let us have a look at the hierarchical level of leadership identified:

The Level 5 leadership clearly reestablishes the facts about a simply living and high thinking with an emphasis on personal humility taught by the
older generations. The financial breakthroughs achieved by level 5 leaders prove that these characteristics can achieve tangible results as well.

The most important example in this context can be cited of great world leaders like M.K. Gandhi and Abraham Lincoln, who always put their
vision ahead of their egos. They came across as shy and defenseless people in their mannerism and speech but were hardly so when it came to
actions.

The other example from the business leaders who fitted perfectly into this category was Darwin E Smith who was the CEO of the paper
company Kimberly-Clark and turned it around to become the biggest consumer paper product company. He was a unique mix of personal
humility and will; combined with risk taking ability which made him a role model for the business leaders of today.

There are certain actions performed by Level 5 leaders which separate them from the rest of the leaders and senior executives.

 The first step if their ability to identify and include right people with them towards achieving goals. Unlike the traditional method of
building strategies and then looking for the right people to carry them out, they take a different route. It’s about getting the right
people on board and then deciding on the destination.
 They also do not shy away from facing and accepting brutal truths and realities of data, numbers and situations but at the same time
they do not lose hope of a better future.
 They also strive towards aligning consistent efforts towards a goal, rather than giving one massive push they believe in small but firm
pushes to bring in the momentum.
 They also exercise their judgment to understand an aspect, in depth and thoroughly, rather than burdening themselves with myriad
information.
 They practice and encourage a disciplined approach towards their work life and as visionaries use carefully identified technologies to
give their businesses strategic advantage.

With the new concept of Level 5 leadership we come back to an age old question, can Level 5 leadership be learnt?, if yes then how.

According to Collins it is farfetched to suitably see whether it can be learnt or not but he surely identifies two categories of people, one who have
the Level 5 Leadership in them, dormant, latent or unexpressed and others who do not have it.

So leaders who cannot look beyond their personal role, fame, achievements etc can hardly become Level 5 leaders. Only when they can
put the larger good ahead of them, they transcend to the next level. This transition is not general but can be brought by some tragic accident,
near death experiences or a life changing incident, as came across by Collins in his research.

It would be appropriate to mention the name of M.K. Gandhi to understand it better. For Gandhi who had lived a comfortable life with a law
degree from England had no experience of being oppressed by the ruling class until he was thrown out of a train despite carrying a first class
ticket. His transition began from there, which later made him actively participate in the Indian Freedom Struggle.

Level 5 leadership is difficult to find and leaders who display it are a cut above the rest.

Situational Leadership - Meaning and Concept

Leaders are essentially people who know their goals and have the power to influence the thoughts and actions of others to garner their support
and cooperation to achieve these goals. In-case of leaders these goals are rarely personal and generally to serve the larger good.

Ever since man was a hunter gatherer and lived in closely knit groups, they had leaders who led the hunting expeditions and took greater risk
than the rest of the group members. In turn they were bestowed with larger share of hunting, respect and a higher position in the group. With
changing times, how leadership is perceived has also changed, but, it remains an important aspect of social fabric nevertheless.

The initial theories proposed that leaders are born and cannot be created, there are certain distinct characteristics possessed by few men which
make them leaders. [Read Great Man Theory and the Trait Theory]. However, for the current discussion we would try and take a closer look at
another interesting theory which was proposed called Situational Leadership Theory. This theory says that the same leadership style cannot be
practiced in all situations, depending upon the circumstance and environmental context the leadership style also changes. The pioneers of this
theory were Kenneth Blanchard and Paul Hersey.

The model encourages the leaders to analyze a particular situation in depth and then lead in the most appropriate manner, suitable
for that situation. The three aspects that need could be considered in a situation are:

 Employees’ competences
 Maturity of the employees
 Complexity of the task
 Leadership style

In the Situational Leadership model, the leadership style has been divided into 4 types:
  S1: Telling - Telling style is associated with leaders who minutely supervise their followers, constantly instructing them about why, how
and when of the tasks that need to be performed.
 S2: Selling - Selling style is when a leader provide controlled direction and is a little more open and allows two way communication
between him/herself and the followers thus ensuring that the followers buy in the process and work towards the desired goals.
 S3: Participating - This style is characterized when the leaders seeks opinion and participation of the followers to establish how a task
should be performed. The leader in this case tries creating relationship with the followers.
 S4: Delegating - In this case, the leader plays a role in decisions that are taken but passes on or delegates the responsibilities of
carrying out tasks to his followers. The leader however monitors and reviews the process.

It is also represented by a diagram most often which is below:

The developmental level of follower is an important indication for a leader to decide the most appropriate leadership style for them:

 D4 - High Competence, High Commitment - The followers who are identified in this category are the ones who have high competence
and high commitment towards tasks to be performed. It might happen so that they turn out better than their leaders in performing
these tasks. (For e.g. cricketing legend Sachin Tendulkar playing in the Indian cricket team under the captainship of Mahendra Singh
Dhoni)
 D3 - High Competence, Variable Commitment - This category consists of followers who have the competence to do the job but their
commitment level is inconsistent. They also tend to lack the confidence to go out and perform task alone. (E.g. President Barack
Obama)
 D2 - Some Competence, Low Commitment - In this case, the followers have a certain level of competence which might be sufficient to
do the job but they are low on commitment towards the tasks. Despite of having relevant skills to perform the task they seek external
help when faced with new situations. (A team member made the trainer for new joiners)
 D1 - Low Competence, High Commitment - This category of followers may not have the specific skill required but they display a high
level of commitment towards the task they have to perform, with confidence and motivation, they figure out ways to complete the
tasks. (E.g. Mohandas Karamchand Gandhi, a lawyer by profession who spearheaded the Indian Freedom Struggle)

The above information regarding the style of leadership and the type of followers sure has a correlation to each other which forms the basis of
situational leadership. So, a situational leader would try to accommodate his leadership style as per the situation and the level of competence
and commitment of his followers. This information is also an important aspect to consider when senior leaders act as coaches for their
subordinates in the organizations.

Leadership Theories - Important Theories of Leadership

Just as management knowledge is supported by various theories, the leadership function of management too is authenticated by various
theories. While the behavioural theories of leadership focused on discovering the constant relationship between leadership behaviours and the
group performance, the contemporary theories emphasized the significance of situational factors (such as stress level, job structure, leader’s
intelligence, followers’ traits, etc.) as well.

Some of the important leadership theories are as follows:

 Blake and Mouton’s Managerial Grid

 House’s Path Goal Theory
 Great Man Theory
 Trait Theory
 Leadership-Member Exchange (LMX) Theory
 Transformational Leadership
 Transactional Leadership
 Continuum of Leadership Behaviour
 Likert’s Management System
 Hersey Blanchard Model
 Fiedler’s Contingency Model

Blake and Mouton’s Managerial Grid

The treatment of task orientation and people orientation as two independent dimensions was a major step in leadership studies. Many of the
leadership studies conducted in the 1950s at the University of Michigan and the Ohio State University focused on these two dimensions.

Building on the work of the researchers at these Universities, Robert Blake and Jane Mouton (1960s) proposed a graphic portrayal of leadership
styles through a managerial grid (sometimes called leadership grid). The grid depicted two dimensions of leader behavior, concern for
people (accommodating people’s needs and giving them priority) on y-axis and concern for production (keeping tight schedules) on x-axis, with
each dimension ranging from low (1) to high (9), thus creating 81 different positions in which the leader’s style may fall. (See figure 1).
The five resulting leadership styles are as follows:

1. Impoverished Management (1, 1): Managers with this approach are low on both the dimensions and exercise minimum effort to get
the work done from subordinates. The leader has low concern for employee satisfaction and work deadlines and as a result
disharmony and disorganization prevail within the organization. The leaders are termed ineffective wherein their action is merely
aimed at preserving job and seniority.
2. Task management (9, 1): Also called dictatorial or perish style. Here leaders are more concerned about production and have less
concern for people. The style is based on theory X of McGregor. The employees’ needs are not taken care of and they are simply a
means to an end. The leader believes that efficiency can result only through proper organization of work systems and through
elimination of people wherever possible. Such a style can definitely increase the output of organization in short run but due to the
strict policies and procedures, high labour turnover is inevitable.
3. Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries to maintain a balance between goals of
company and the needs of people. The leader does not push the boundaries of achievement resulting in average performance for
organization. Here neither employee nor production needs are fully met.
4. Country Club (1, 9): This is a collegial style characterized by low task and high people orientation where the leader gives thoughtful
attention to the needs of people thus providing them with a friendly and comfortable environment. The leader feels that such a
treatment with employees will lead to self-motivation and will find people working hard on their own. However, a low focus on tasks
can hamper production and lead to questionable results.
5. Team Management (9, 9): Characterized by high people and task focus, the style is based on the theory Y of McGregor and has been
termed as most effective style according to Blake and Mouton. The leader feels that empowerment, commitment, trust, and respect
are the key elements in creating a team atmosphere which will automatically result in high employee satisfaction and production.

Advantages of Blake and Mouton’s Managerial Grid

The Managerial or Leadership Grid is used to help managers analyze their own leadership styles through a technique known as grid training. This
is done by administering a questionnaire that helps managers identify how they stand with respect to their concern for production and people.
The training is aimed at basically helping leaders reach to the ideal state of 9, 9.

Limitations of Blake and Mouton’s Managerial Grid

The model ignores the importance of internal and external limits, matter and scenario. Also, there are some more aspects of leadership that can
be covered but are not.

House’s Path Goal Theory

The theory was developed by Robert House and has its roots in the expectancy theory of motivation. The theory is based on the premise that an
employee’s perception of expectancies between his effort and performance is greatly affected by a leader’s behavior. The leaders help group
members in attaining rewards by clarifying the paths to goals and removing obstacles to performance. They do so by providing the information,
support, and other resources which are required by employees to complete the task.

House’s theory advocates servant leadership. As per servant leadership theory, leadership is not viewed as a position of power. Rather, leaders
act as coaches and facilitators to their subordinates. According to House’s path-goal theory, a leader’s effectiveness depends on several
employee and environmental contingent factors and certain leadership styles. All these are explained in the figure 1 below:
 Figure 1: Path-Goal Leadership

Theory 

Leadership Styles

The four leadership styles are:

 Directive: Here the leader provides guidelines, lets subordinates know what is expected of them, sets performance standards for
them, and controls behavior when performance standards are not met. He makes judicious use of rewards and disciplinary action. The
style is the same as task-oriented one.
 Supportive: The leader is friendly towards subordinates and displays personal concern for their needs, welfare, and well-being. This
style is the same as people-oriented leadership.
 Participative: The leader believes in group decision-making and shares information with subordinates. He consults his subordinates
on important decisions related to work, task goals, and paths to resolve goals.
 Achievement-oriented: The leader sets challenging goals and encourages employees to reach their peak performance. The leader
believes that employees are responsible enough to accomplish challenging goals. This is the same as goal-setting theory.

According to the theory, these leadership styles are not mutually excusive and leaders are capable of selecting more than one kind of a style
suited for a particular situation.

Contingencies

The theory states that each of these styles will be effective in some situations but not in others. It further states that the relationship between a
leader’s style and effectiveness is dependent on the following variables:

 Employee characteristics: These include factors such as employees’ needs, locus of control, experience, perceived ability, satisfaction,
willingness to leave the organization, and anxiety. For example, if followers are high inability, a directive style of leadership may be
unnecessary; instead a supportive approach may be preferable.
 Characteristics of work environment: These include factors such as task structure and team dynamics that are outside the control of
the employee. For example, for employees performing simple and routine tasks, a supportive style is much effective than a directive
one. Similarly, the participative style works much better for non-routine tasks than routine ones.

When team cohesiveness is low, a supportive leadership style must be used whereas in a situation where performance-oriented team
norms exist, a directive style or possibly an achievement-oriented style works better. Leaders should apply directive style to counteract
team norms that oppose the team’s formal objectives.

Conclusion

The theory has been subjected to empirical testing in several studies and has received considerable research support. This theory consistently
reminds the leaders that their main role as a leader is to assist the subordinates in defining their goals and then to assist them in accomplishing
those goals in the most efficient and effective manner. This theory gives a guide map to the leaders about how to increase subordinates
satisfaction and performance level.

Great Man Theory of Leadership

Are some people born to lead? If we look at the great leaders of the past such as Alexander the Great, Julius Caesar, Napoleon, Queen Elizabeth I,
and Abraham Lincoln, we will find that they do seem to differ from ordinary human beings in several aspects. The same applies to the
contemporary leaders like George W. Bush and Mahatma Gandhi. They definitely possess high levels of ambition coupled with clear visions of
precisely where they want to go. These leaders are cited as naturally great leaders, born with a set of personal qualities that made them effective
leaders. Even today, the belief that truly great leaders are born is common.

Top executives, sports personalities, and even politicians often seem to possess an aura that sets them apart from others. According to the
contemporary theorists, leaders are not like other people. They do not need to be intellectually genius or omniscient prophets to succeed, but
they definitely should have the right stuff which is not equally present in all people. This orientation expresses an approach to the study of
leadership known as the great man theory.
Assumptions

 The leaders are born and not made and posses certain traits which were inherited
 Great leaders can arise when there is a great need.

Theory

Much of the work on this theory was done in the 19th century and is often linked to the work of the historian Thomas Carlyle who commented
on the great men or heroes of the history saying that “the history of the world is but the biography of great men”. According to him, a leader is
the one gifted with unique qualities that capture the imagination of the masses.

Earlier leadership was considered as a quality associated mostly with the males, and therefore the theory was named as the great man theory.
But later with the emergence of many great women leaders as well, the theory was recognized as the great person theory.

The great man theory of leadership states that some people are born with the necessary attributes that set them apart from others and that
these traits are responsible for their assuming positions of power and authority. A leader is a hero who accomplishes goals against all odds for
his followers. The theory implies that those in power deserve to be there because of their special endowment. Furthermore, the theory contends
that these traits remain stable over time and across different groups. Thus, it suggests that all great leaders share these characteristic regardless
of when and where they lived or the precise role in the history they fulfilled.

Criticism

Many of the traits cited as being important to be an effective leader are typical masculine traits. In contemporary research, there is a significant
shift in such a mentality.

Conclusion

Prompted by the great man theory of leadership, and the emerging interest in understanding what leadership is, researchers focused on the
leader - Who is a leader? What are the distinguishing characteristics of great and effective leaders? This gave rise to the early research efforts to
the trait approach to leadership.

Trait Theory of Leadership

The trait model of leadership is based on the characteristics of many leaders - both successful and unsuccessful - and is used to predict
leadership effectiveness. The resulting lists of traits are then compared to those of potential leaders to assess their likelihood of success or
failure.

Scholars taking the trait approach attempted to identify physiological (appearance, height, and weight), demographic (age, education and
socioeconomic background), personality, self-confidence, and aggressiveness), intellective (intelligence, decisiveness, judgment, and knowledge),
task-related (achievement drive, initiative, and persistence), and social characteristics (sociability and cooperativeness) with leader emergence
and leader effectiveness.

Successful leaders definitely have interests, abilities, and personality traits that are different from those of the less effective leaders.
Through many researches conducted in the last three decades of the 20th century, a set of core traits of successful leaders have been identified.
These traits are not responsible solely to identify whether a person will be a successful leader or not, but they are essentially seen as
preconditions that endow people with leadership potential.

Among the core traits identified are:

 Achievement drive: High level of effort, high levels of ambition, energy and initiative
 Leadership motivation: an intense desire to lead others to reach shared goals
 Honesty and integrity: trustworthy, reliable, and open
 Self-confidence: Belief in one’s self, ideas, and ability
 Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and conceptually skilled
 Knowledge of business: Knowledge of industry and other technical matters
 Emotional Maturity: well adjusted, does not suffer from severe psychological disorders.
 Others: charisma, creativity and flexibility

Strengths/Advantages of Trait Theory

 It is naturally pleasing theory.

 It is valid as lot of research has validated the foundation and basis of the theory.
 It serves as a yardstick against which the leadership traits of an individual can be assessed.
 It gives a detailed knowledge and understanding of the leader element in the leadership process.

Limitations of The Trait Theory

 There is bound to be some subjective judgment in determining who is regarded as a ‘good’ or ‘successful’ leader
 The list of possible traits tends to be very long. More than 100 different traits of successful leaders in various leadership positions have
been identified. These descriptions are simply generalities.
 There is also a disagreement over which traits are the most important for an effective leader
  The model attempts to relate physical traits such as, height and weight, to effective leadership. Most of these factors relate to
situational factors. For example, a minimum weight and height might be necessary to perform the tasks efficiently in a military
leadership position. In business organizations, these are not the requirements to be an effective leader.
 The theory is very complex

Implications of Trait Theory

The trait theory gives constructive information about leadership. It can be applied by people at all levels in all types of organizations.

Managers can utilize the information from the theory to evaluate their position in the organization and to assess how their position
can be made stronger in the organization. They can get an in-depth understanding of their identity and the way they will affect others in the
organization. This theory makes the manager aware of their strengths and weaknesses and thus they get an understanding of how they can
develop their leadership qualities.

Conclusion

The traits approach gives rise to questions: whether leaders are born or made; and whether leadership is an art or science. However, these are
not mutually exclusive alternatives. Leadership may be something of an art; it still requires the application of special skills and techniques.
Even if there are certain inborn qualities that make one a good leader, these natural talents need encouragement and development.

A person is not born with self-confidence. Self-confidence is developed, honesty and integrity are a matter of personal choice, motivation to lead
comes from within the individual, and the knowledge of business can be acquired. While cognitive ability has its origin partly in genes, it still needs to
be developed. None of these ingredients are acquired overnight.

Leadership-Member Exchange (LMX) Theory

Informal observation of leadership behavior suggests that leader’s action is not the same towards all subordinates. The importance of potential
differences in this respect is brought into sharp focus by Graen’s leader-member exchange model, also known as the vertical dyad linkage
theory. The theory views leadership as consisting of a number of dyadic relationships linking the leader with a follower. The quality of the
relationship is reflected by the degree of mutual trust, loyalty, support, respect, and obligation.

According to the theory, leaders form different kinds of relationships with various groups of subordinates. One group, referred to as the in-
group, is favored by the leader. Members of in-group receive considerably more attention from the leader and have more access to the
organizational resources. By contrast, other subordinates fall into the out-group. These individuals are disfavored by the leader. As such, they
receive fewer valued resources from their leaders.

Leaders distinguish between the in-group and out-group members on the basis of the perceived similarity with respect to personal
characteristics, such as age, gender, or personality. A follower may also be granted an in-group status if the leader believes that person to be
especially competent at performing his or her job. The relationship between leaders and followers follows three stages:

 Role taking: When a new member joins the organization, the leader assesses the talent and abilities of the member and offers them
opportunities to demonstrate their capabilities.
 Role making: An informal and unstructured negotiation on work-related factors takes place between the leader and the member. A
member who is similar to the leader is more likely to succeed. A betrayal by the member at this stage may result in him being relegated
to the out-group

The LMX 7 scale assesses the degree to which leaders and followers have mutual respect for each other’s capabilities, feel a deepening sense of
mutual trust, and have a sense of strong obligation to one another. Taken together, these dimensions determine the extent to which followers
will be part of the leader’s in-group or out-group.

In-group followers tend to function as assistants or advisers and to have higher quality personalized exchanges with the leader than do out-
group followers. These exchanges typically involve a leader’s emphasis on assignments to interesting tasks, delegation of important
responsibilities, information sharing, and participation in the leader’s decisions, as well as special benefits, such as personal support and support
and favorable work schedules.

Strengths of LMX Theory

LMX theory is an exceptional theory of leadership as unlike the other theories, it concentrates and talks about specific relationships
between the leader and each subordinate.

LMX Theory is a robust explanatory theory.

LMX Theory focuses our attention to the significance of communication in leadership. Communication is a medium through which leaders
and subordinates develop, grow and maintain beneficial exchanges. When this communication is accompanied by features such as mutual
trust, respect and devotion, it leads to effective leadership.

LMX Theory is very much valid and practical in it’s approach.

Criticisms of LMX Theory

LMX Theory fails to explain the particulars of how high-quality exchanges are created.

LMX Theory is objected on grounds of fairness and justice as some followers receive special attention of leaders at workplace and other
followers do not.

Implications

According to many studies conducted in this area, it has been found that leaders definitely do support the members of the in-group and may go
to the extent of inflating their ratings on poor performance as well. This kind of a treatment is not given to the members of the out-group.

Due to the favoritism that the in-group members receive from their leaders, they are found to perform their jobs better and develop positive
attitude towards their jobs in comparison to the members of the out-group. The job satisfaction of in-group members is high and they perform
effectively on their jobs. They tend to receive more mentoring from their superiors which helps them in their careers. For these reasons, low
attrition rate, increased salaries, and promotion rates are associated with the in-group members in comparison to that of the out-group
members.

Transformational Leadership Theory

Creating high-performance workforce has become increasingly important and to do so business leaders must be able to inspire organizational
members to go beyond their task requirements. As a result, new concepts of leadership have emerged - transformational leadership being one
of them.

Transformational leadership may be found at all levels of the organization: teams, departments, divisions, and organization as a whole. Such
leaders are visionary, inspiring, daring, risk-takers, and thoughtful thinkers. They have a charismatic appeal. But charisma alone is insufficient for
changing the way an organization operates. For bringing major changes, transformational leaders must exhibit the following four factors:

Figure 1: Model of Transformational Leadership

Inspirational Motivation: The foundation of transformational leadership is the promotion of consistent vision, mission, and a set of
values to the members. Their vision is so compelling that they know what they want from every interaction. Transformational leaders guide
followers by providing them with a sense of meaning and challenge. They work enthusiastically and optimistically to foster the spirit of
teamwork and commitment.

Intellectual Stimulation: Such leaders encourage their followers to be innovative and creative. They encourage new ideas from their
followers and never criticize them publicly for the mistakes committed by them. The leaders focus on the “what” in problems and do not
focus on the blaming part of it. They have no hesitation in discarding an old practice set by them if it is found ineffective.

Idealized Influence: They believe in the philosophy that a leader can influence followers only when he practices what he preaches. The
leaders act as role models that followers seek to emulate. Such leaders always win the trust and respect of their followers through their
action. They typically place their followers needs over their own, sacrifice their personal gains for them, ad demonstrate high standards of
ethical conduct. The use of power by such leaders is aimed at influencing them to strive for the common goals of the organization.

Individualized Consideration: Leaders act as mentors to their followers and reward them for creativity and innovation. The followers are
treated differently according to their talents and knowledge. They are empowered to make decisions and are always provided with the
needed support to implement their decisions.
The common examples of transformational leaders are Mahatma Gandhi and Obama.

Criticisms of Transformational Leadership Theory

 Transformational leadership makes use of impression management and therefore lends itself to amoral self promotion by leaders
 The theory is very difficult to e trained or taught because it is a combination of many leadership theories.
 Followers might be manipulated by leaders and there are chances that they lose more than they gain.

Implications of Transformational Leadership Theory

The current environment characterized by uncertainty, global turbulence, and organizational instability calls for transformational leadership to
prevail at all levels of the organization. The followers of such leaders demonstrate high levels of job satisfaction and organizational commitment,
and engage in organizational citizenship behaviors. With such a devoted workforce, it will definitely be useful to consider making efforts towards
developing ways of transforming organization through leadership.

Transactional Leadership Theory

The transactional style of leadership was first described by Max Weber in 1947 and then by Bernard Bass in 1981. This style is most often used
by the managers.

It focuses on the basic management process of controlling, organizing, and short-term planning. The famous examples of leaders who have used
transactional technique include McCarthy and de Gaulle.

Transactional leadership involves motivating and directing followers primarily through appealing to their own self-interest. The power
of transactional leaders comes from their formal authority and responsibility in the organization.

The main goal of the follower is to obey the instructions of the leader. The style can also be mentioned as a ‘telling style’.

The leader believes in motivating through a system of rewards and punishment.

If a subordinate does what is desired, a reward will follow, and if he does not go as per the wishes of the leader, a punishment will follow. Here,
the exchange between leader and follower takes place to achieve routine performance goals.

These exchanges involve four dimensions:

1. Contingent Rewards: Transactional leaders link the goal to rewards, clarify expectations, provide necessary resources, set mutually
agreed upon goals, and provide various kinds of rewards for successful performance. They set SMART (specific, measurable, attainable,
realistic, and timely) goals for their subordinates.
2. Active Management by Exception: Transactional leaders actively monitor the work of their subordinates, watch for deviations from
rules and standards and taking corrective action to prevent mistakes.
3. Passive Management by Exception: Transactional leaders intervene only when standards are not met or when the performance is
not as per the expectations. They may even use punishment as a response to unacceptable performance.
4. Laissez-faire: The leader provides an environment where the subordinates get many opportunities to make decisions. The leader
himself abdicates responsibilities and avoids making decisions and therefore the group often lacks direction.

Assumptions of Transactional Theory

 Employees are motivated by reward and punishment.

 The subordinates have to obey the orders of the superior.
 The subordinates are not self-motivated. They have to be closely monitored and controlled to get the work done from them.

Implications of Transactional Theory

The transactional leaders overemphasize detailed and short-term goals, and standard rules and procedures. They do not make an effort to
enhance followers’ creativity and generation of new ideas. This kind of a leadership style may work well where the organizational problems are
simple and clearly defined. Such leaders tend to not reward or ignore ideas that do not fit with existing plans and goals.

The transactional leaders are found to be quite effective in guiding efficiency decisions which are aimed at cutting costs and improving
productivity. The transactional leaders tend to be highly directive and action oriented and their relationship with the followers tends to be
transitory and not based on emotional bonds.
The theory assumes that subordinates can be motivated by simple rewards. The only ‘transaction’ between the leader and the followers is the
money which the followers receive for their compliance and effort.

Difference between Transactional and Transformational Leaders

Transactional leadership Transformational Leadership

Leadership is responsive Leadership is proactive

Works within the organizational culture Work to change the organizational culture by implementing new ideas

Transactional leaders make employees achieve organizational Transformational leaders motivate and empower employees to achieve
objectives through rewards and punishment company’s objectives by appealing to higher ideals and moral values

Motivates followers by appealing to their own self-interest Motivates followers by encouraging them to transcend their own interests for
those of the group or unit

Conclusion

The transactional style of leadership is viewed as insufficient, but not bad, in developing the maximum leadership potential. It forms as the basis
for more mature interactions but care should be taken by leaders not to practice it exclusively, otherwise it will lead to the creation of an
environment permeated by position, power, perks, and politics.

Continuum of Leadership Behaviour

The leadership continuum was originally written in 1958 by Tannenbaum and Schmidt and was later updated in the year 1973. Their work
suggests a continuum of possible leadership behavior available to a manager and along which many leadership styles may be placed. The
continuum presents a range of action related to the degree of authority used by the manager and to the area of freedom available to non-
managers in arriving at decisions. A broad range of leadership styles have been depicted on the continuum between two extremes of autocratic
and free rein (See figure 1). The left side shows a style where control is maintained by a manager and the right side shows the release of control.
However, neither extreme is absolute and authority and freedom are never without their limitations.

he Tannenbaum and Schmidt continuum can be related to McGregor’s supposition of Theory X and Theory Y. Boss-centered leadership is
towards theory X and subordinate-centered leadership is towards theory Y.

Figure 1: Continuum Leadership Behaviuor.

A manager is characterized according to degree of control that is maintained by him. According to this approach, four main styles of leadership
have been identified:

 Tells: The manager identifies a problem, chooses a decision, and announces this to subordinates. The subordinates are not a party to
the decision making process and the manager expects them to implement his decisions as soon as possible.
  Sells: The decision is chosen by the manager only but he understands that there will be some amount of resistance from those faced
with the decision and therefore makes efforts to persuade them to accept it.
 Consults: Though the problem is identified by the manager, he does not take a final decision. The problem is presented to the
subordinates and the solutions are suggested by the subordinates.
 Joins: The manager defines the limits within which the decision can be taken by the subordinates and then makes the final decision
along with the subordinates.

According to Tannenbaum and Schmidt, if one has to make a choice of the leadership style which is practicable and desirable, then his answer
will depend upon the following three factors:

 Forces in the Manager: The behavior of the leader is influenced by his personality, background, knowledge, and experience. These forces
include:
i. Value systems
ii. Confidence in subordinates
iii. Leadership inclinations
iv. Feelings of security in an uncertain situation
 Forces in the subordinate: The personality of the subordinates and their expectations from the leader influences their behavior. The
factors include:
i. Readiness to assume responsibility in decision-making
ii. Degree of tolerance for ambiguity
iii. Interest in the problem and feelings as to its importance
iv. Strength of the needs for independence
v. Knowledge and experience to deal with the problem
vi. Understanding and identification with the goals of the organization

If these factors are on a positive side, then more freedom can be allowed to the subordinate by the leader.

 Forces in the situation: The environmental and general situations also affect the leader’s behavior. These include factors like:
i. Type of organization
ii. Group effectiveness
iii. Nature of the problem
iv. Time pressure

When the authors updated their work in1973, they suggested a new continuum of patterns of leadership behavior. In this, the total area of
freedom shared between managers and non-managers is redefined constantly by interactions between them and the environmental forces. This
pattern was, however, more complex in comparison to the previous one.

Conclusion

According to Tannenbaum and Schmidt, successful leaders know which behavior is the most appropriate at a particular time. They shape their
behavior after a careful analysis of self, their subordinates, organization, and environmental factors.

Likert’s Management System

Rensis Likert and his associates studied the patterns and styles of managers for three decades at the University of Michigan, USA, and identified
a four-fold model of management systems.

The model was developed on the basis of a questionnaire administered to managers in over 200 organizations and research into the
performance characteristics of different types of organizations.

The four systems of management system or the four leadership styles identified by Likert are:

1. System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the upper echelons of the hierarchy. The
superior has no trust and confidence in subordinates.

The decisions are imposed on subordinates and they do not feel free at all to discuss things about the job with their superior. The
teamwork or communication is very little and the motivation is based on threats.

2. System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not at the lower levels of the organizational
hierarchy. The superior has condescending confidence and trust in subordinates (master-servant relationship).

Here again, the subordinates do not feel free to discuss things about the job with their superior. The teamwork or communication is
very little and motivation is based on a system of rewards.

3. System 3 - Consultative: Responsibility is spread widely through the organizational hierarchy. The superior has substantial but not
complete confidence in subordinates.

Some amount of discussion about job related things takes place between the superior and subordinates. There is a fair amount of
teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job.

4. System 4 - Participative: Responsibility for achieving the organizational goals is widespread throughout the organizational hierarchy.
 There is a high level of confidence that the superior has in his subordinates. There is a high level of teamwork, communication, and
participation.

The nature of these four management systems has been described by Likert through a profile of organizational characteristics. In this profile, the
four management systems have been compared with one another on the basis of certain organizational variables which are:

 Leadership processes
 Motivational forces
 Communication process
 Interaction-influence process
 Decision-making process
 Goal-setting or ordering
 Control processes

On the basis of this profile, Likert administered a questionnaire to several employees belonging to different organizations and from different
managerial positions (both line and staff).

His studies confirmed that the departments or units employing management practices within Systems 1 and 2 were the least productive, and
the departments or units employing management practices within Systems 3 and 4 were the most productive.

Advantages of Likert’s Management System

With the help of the profile developed by Likert, it became possible to quantify the results of the work done in the field of group dynamics.

Likert theory also facilitated the measurement of the “soft” areas of management, such as trust and communication.

Conclusion

According to Rensis Likert, the nearer the behavioral characteristics of an organization approach System 4 (Participative), the more likely this will lead
to long-term improvement in staff turnover and high productivity, low scrap, low costs, and high earnings if an organization wants to achieve
optimum effectiveness, then the ideal system

Hersey Blanchard Model

According to this model, the leader has to match the leadership style according to the readiness of subordinates which moves in stage and has a
cycle. Therefore, this theory is also known as the life-cycle theory of leadership.

The theory, developed by Paul Hersey and Kenneth Blanchard, is based on the ’readiness’ level of the people the leader is attempting to
influence. Readiness is the extent to which followers have the ability and willingness to accomplish a specific task. Ability is the knowledge,
experience, and skill that an individual possesses to do the job and is called job readiness. Willingness is the motivation and commitment
required to accomplish a given task. The style of leadership depends on the level of readiness of the followers.

The readiness(R) is divided into a continuum of four levels which are:

R1 - low follower readiness - refers to low ability and low willingness of followers i.e. those who are unable and insecure

R2 - low to moderate follower readiness - refers to low ability and high willingness of followers i.e. those who are unable but confident

R3 - moderate to high follower readiness - refers to high ability and low willingness of followers i.e. those who are able but insecure

R4 - high follower readiness - refers to high ability and high willingness of followers i.e. those who are both able and confident

The direction is provided by the leader at the lower levels of readiness. Therefore, the decisions are leader directed. On the other hand, the
direction is provided by the followers at the higher levels of readiness. Therefore, the decisions in this case are follower directed. When the
followers move from low levels to high levels of readiness, the combinations of task and relationship behaviors appropriate to the situation begin
to change.

For each of the four levels of readiness, the leadership style used may be a combination of task and relationship behavior.

 Task behavior: Extent to which the leader spells out the duties and responsibilities of a follower which includes providing them
direction, setting goals, and defining roles for them. Usually a one-way communication exists which is meant to provide the direction to
the followers.
 Relationship behavior: Extent to which the leader listens to the followers, and provides encouragement to them. Here, a two-way
communication exists between the leader and the follower.

By combining the task and the relationship behavior, we arrive at the following four different styles of leadership which correspond with the
different levels of readiness as shown in the Figure 1.

S1 - Telling: This style is most appropriate for low follower readiness (R1). It emphasizes high task behavior and limited relationship
 behavior.

S2 - Selling: This style is most appropriate for low to moderate follower readiness (R2). It emphasizes high amounts of both task and
relationship behavior.

S3 - Participating: This style is most appropriate for moderate to high follower readiness (R3). It emphasizes high amount of relationship
behavior but low amount of task behavior.

S4 - Delegating: This style is most appropriate for high follower readiness (R4). It emphasizes low levels of both task and relationship
behavior.

Fiedler’s Contingency Model

Fred E. Fiedler’s contingency theory of leadership effectiveness was based on studies of a wide range of group effectiveness, and concentrated
on the relationship between leadership and organizational performance. This is one of the earliest situation-contingent leadership theories given
by Fiedler. According to him, if an organization attempts to achieve group effectiveness through leadership, then there is a need to assess the
leader according to an underlying trait, assess the situation faced by the leader, and construct a proper match between the two.

Leader’s trait

In order to assess the attitudes of the leader, Fiedler developed the ‘least preferred co-worker’ (LPC) scale in which the leaders are asked about
the person with whom they least like to work. The scale is a questionnaire consisting of 16 items used to reflect a leader’s underlying disposition
toward others. The items in the LPC scale are pleasant / unpleasant, friendly / unfriendly, rejecting / accepting, unenthusiastic / enthusiastic,
tense / relaxed, cold / warm, helpful / frustrating, cooperative / uncooperative, supportive / hostile, quarrelsome / harmonious, efficient /
inefficient, gloomy / cheerful, distant / close, boring / interesting, self-assured / hesitant, open / guarded. Each item in the scale is given a single
ranking of between one and eight points, with eight points indicating the most favorable rating.

Friendly
Unfriendly

8 7 6 5 4 3 2 1

Fiedler states that leaders with high LPC scores are relationship-oriented and the ones with low scores are task-oriented. The high LPC score
leaders derived most satisfaction from interpersonal relationships and therefore evaluate their least preferred co-workers in fairly favorable
terms. These leaders think about the task accomplishment only after the relationship need is well satisfied. On the other hand, the low LPC score
leaders derived satisfaction from performance of the task and attainment of objectives and only after tasks have been accomplished, these
leaders work on establishing good social and interpersonal relationships.

Situational factor

According to Fiedler, a leader’s behavior is dependent upon the favorability of the leadership situation. Three factors work together to determine
how favorable a situation is to a leader. These are:

 Leader-member relations - The degree to which the leaders is trusted and liked by the group members, and the willingness of the
group members to follow the leader’s guidance
 Task structure - The degree to which the group’s task has been described as structured or unstructured, has been clearly defined and
the extent to which it can be carried out by detailed instructions
 Position power - The power of the leader by virtue of the organizational position and the degree to which the leader can exercise
authority on group members in order to comply with and accept his direction and leadership

With the help of these three variables, eight combinations of group-task situations were constructed by Fiedler. These combinations were used
to identify the style of the leader.
 Figure 1: Correlation between leader’s LPC scores and group effectiveness

Leadership Effectiveness

The leader’s effectiveness is determined by the interaction of the leader’s style of behavior and the favorableness of the situational
characteristics. The most favorable situation is when leader-member relations are good, the task is highly structured, and the leader has a strong
position power.

Research on the contingency model has shown that task-oriented leaders are more effective in highly favorable (1, 2, 3) and highly unfavorable
situation (7, 8), whereas relationship-oriented leaders are more effective in situations of intermediate favorableness (4, 5, 6).

Fiedler also suggested that leaders may act differently in different situations. Relationship-oriented leaders generally display task-oriented
behaviors under highly favorable situations and display relationship-oriented behaviors under unfavorable intermediate favorable situations.
Similarly, task-oriented leaders frequently display task-oriented in unfavorable or intermediate favorable situations but display relationship-
oriented behaviors in favorable situations.

Leadership and Trust

Trust seems to be the key trait linked with leadership. A leader cannot lead if his followers do not trust him. A leader discovers the
employees’/followers problems and tries to solve them, but it is the trust that his followers hold on him which tells whether the leaders retrieve
the knowledge and intellectuality required to solve the problems. Trust can be defined as an optimistic belief that others will not perform (via
words, acts, or final conclusions) in an opportunistic manner.

For trust to nurture, an appropriate atmosphere is needed. This responsibility rests with the leader in an organization. The employees will show
absolute trust in the leaders when they observe ideal/excellent character in them.

Leaders play a crucial role in developing and maintaining trust of organizational employees.

Reliability, empathy and realization of individual/personal goals assist the leaders to gain trust of the employees/followers. When the employees
show trust in a leader, they are ready to be exposed to the actions of the leader- self-assured that their interests and rights will not be harmed.

The primary facets of trust are:

 Truth/Honesty
 Proficiency/Competency
 Commitment
 Reliability
 Sincerity/Openness

A leader should keep his followers informed, be fair and objective, share his feelings, be honest, allow the followers to constantly direct their
decisions, maintain their promises, and earn respect of the followers. All this will contribute in building trust upon the leaders.
A trust-centred leadership will offset worries, apprehensions, and low-morale by developing a trustworthy environment where employees feel
secure, confident and keyed up. The employees will be ready to take initiative, give suggestions, share their views, feel unhesitant to take risk and
will contribute completely in such an atmosphere of trust.

Due to instability and unpredictability of organizations today, building of trust between managers as leaders and their employees is essentially
required.

Leadership Vision

True leaders have a vision, that is, they have a potential to view the present as it is and to invent a future culminating out of the present. A leader
with a vision can foresee the future and can remain in the present.

A vision is an end towards which leader can spend and direct his energy and resources. Leaders share a dream and a path which the
employees want to share and follow. Leadership vision is not restricted to organizational written mission statement and vision statement. It is
well demonstrated in the actions, beliefs and values of organizational leaders.

“If there is no vision, people cannot survive.” This is applicable both in business as well as in life. Leaders who lack vision cannot succeed in life
and they work in a standard and monotonous manner.

Vision is not a fantasy for leaders; rather it is a truth that has yet to come into practice. So as to achieve vision, a leader must exert special extra
efforts and have robust confidence and devotion to realize the vision.

Vision acts as an internal force propelling a leader to act. It provides a leader an objective. The consistent existence of a vision makes a
leader progressive despite various hardships and obstacles. Vision is a bond that unites the individuals into team with a mutual goal.

Recognition of a leader’s vision by the organizational employees is very essential as it makes the employees well aware of what the organization
is trying to achieve. Vision has the strength to move the employees out of monotonous work life and to place them into a new challenging and
dynamic work. Vision must be:

 Rational
 Reasonable
 Innovative
 Credible
 Clear
 Motivating and stimulating
 Challenging
 Reflective of organizational beliefs, values and culture
 Concrete

It is a leader who moulds, interprets, communicates and represents the vision. Vision is a portrait and depiction of what a leader aspires
his organization to be in long-term.

Different Types of Power

Power has been an important aspect of human civilization since time immemorial. Power might be physical, political or social.

In the context of business as well, power dynamics tend to influence decisions and people transactions heavily. So defining power can be difficult
as it is understood and interpreted in several ways however power can definitely not be called a force which gets you what you want.

Power basically emanates from position or authority which can influence people both positively and negatively.

For simplicity and understanding purposes power is usually classified into following categories:

1. Coercive Power- This kind of power involves the usage of threat to make people do what one desires. In the organizational set up, it
translates into threatening someone with transfer, firing, demotions etc. it basically forces people to submit to one’s demand for the
fear of losing something.
2. Reward Power- As the name suggests, this type of power uses rewards, perks, new projects or training opportunities, better roles and
monetary benefits to influence people. However an interesting aspect of this type of power is that, it is not powerful enough in itself, as
decisions related to rewards do not rest solely with the person promising them, because in organizations, a lot of other people come
into play like senior managers and board.
3. Legitimate Power- This power emanates from an official position held by someone, be it in an organization, beurocracy or
government etc. The duration of this power is short lived as a person can use it only till the time he/she holds that position, as well as,
the scope of the power is small as it is strictly defined by the position held.
4. Expert Power- This is a personal kind of power which owes its genesis to the skills and expertise possessed by an individual, which is
of higher quality and not easily available. In such a situation, the person can exercise the power of knowledge to influence people.
Since, it is very person specific and skills can be enhanced with time; it has more credibility and respect.
5. Referent Power- This is a power wielded by celebrities and film stars as they have huge following amongst masses who like them,
identify with them and follow them. Hence, they exert lasting influence on a large number of people for a large number of decisions;
like from what car to buy to which candidate to choose for a higher office in the country.

So, power can be defined in a number of ways however what is important is the usage of the power by people who possess it. Within the
organizational context the power dynamics and equations need to be carefully managed as they have a huge impact on the motivation and
engagement level of employees. It also defines the organization’s culture in general and people transactions within the organization in particular.
A very hierarchy and power driven organization finds it difficult to accommodate new and innovative ideas, any change is vehemently refused,
egos clash and lesser opportunities are made available for the high performers, thus delaying organizational growth. On the other hand, in an
organization which is flat in structure, people are encouraged to innovate and explore, thus bringing in new concepts and ideas to accelerate
organizational growth and expansion.

Leadership in the Contemporary World

Introduction

Leadership is both an art and a science. For actualizing effective and efficacious leadership, leaders must first articulate a vision, lay down a
mission, communicate the vision and the mission to all the relevant stakeholders, implement the same, and ensure that feedback is sought and
incorporated for the next iteration. Further, leadership is situational which means that more often than not, leaders are made according to the
circumstances in which they find themselves.

Leadership during Tumultuous Times

During tumultuous times, there is a scope for change as well as the possibility of disasters happening that result in chaotic conditions prevailing
during these times. Hence, the leadership of a nation or an organization must ensure that change is “managed” in an orderly and structured
manner to avoid the disasters from happening.

For instance, the carnage that happened in post-Invasion Iraq is an example of disasters happening by intention or by accident when the
residents of a nation or the employees of a company are faced with the prospect of rapid and discontinuous change.

The key terms here are “rapid” and “discontinuous” as the rapidity of change and the non-linear way in which it happens leads to the “law of
unintended consequences” becoming operational and hence the change must be managed in such a way that it is glacial and controlled.

Leadership Styles

Telling Style of Leadership

The telling style of leadership is characterized by a one-way communication between the leader and the followers wherein the former sets the
context and the expectations from the group. Some leaders in family owned businesses have to deal with the legacy left behind by their
forbearers as well as leave behind their distinctive style of leadership. Towards this end, some family business leaders such as Ratan Tata of the
TATA group have ensured that they articulated their vision for their companies that had huge ambitions and plans for global expansion.

Selling or Coaching Style

The literature on leadership and situational leadership in particular is clear that it is not enough to have a vision without translating it into
actionable strategies. Research has shown that this style is characterized by a two-way communication between the leaders and the followers
wherein both are influenced by each other and buy-into each others’ strategies.

Further, this style also corresponds to the leader being comfortable in his or her role. In this respect, business leaders such as Sir Richard
Branson of Virgin Atlantic have ensured that the adoption of technology was done in a big way to further their vision of their companies needing
to build internal capabilities which are aligned to the external drivers such as the imperative to expand globally.

Participating or Supporting Style

The situational leadership is evolutionary in nature meaning that it is based on the progression of the leader through successive phases in his or
her leadership. Having said that, the theory also states that some leaders tend to conform to one or more styles better than the other style(s).
This is applicable in the case of the late Steve Jobs of Apple who is known more for his transitional, transformative, and trailblazing leadership
rather than his participation in day to day running of the company.

The Delegating Style

The fourth style of leadership according to the model is that of a leader who does not direct and monitor the day to day running of the company
and is instead, engaged in higher value adding processes. For instance, Bull Gates who delegated much of the work that he was initially engaged
in now began to focus on global plans for the company especially at a time when the global macroeconomic environment was unfavourable.

Four Competencies of a Leader

The four competencies of leadership as described by Warren Bennis are:

1. forming a vision which provides people with a bridge to the future;

2. giving meaning to that vision through communication;
3. building trust, “the lubrication that makes it possible for organizations to work”;
4. searching for self-knowledge and self-regard
In our personal experience, we have seen these competencies in dealing with groups by utilizing the collective energies of the group to articulate
a vision as well as ensure that the objectives set forth for the group has meaning.

More importantly, building trust is essential to the success of the group and hence many leaders make efforts to build the team in a combat
situation. Finally, unless the team members have a healthy dose of self-esteem by way of pep talks and leading by example, the efficacy of the
team in crisis situations becomes corroded.

Examples of Presidential Leadership

The two presidents that we have selected for comparison are President Bush Jr. and President Obama. These two presidents are so “unlike” each
other in their leadership styles. For instance, President Bush was more of a “gut feel” player who instinctively could sense the other person’s
character and nature whereas President Obama is more of a leader who relies on rational analysis and careful consideration of the merits and
demerits of proceeding on a particular course of action.

Further, President Obama relies more on rhetorical skills and oratory to lead compared with President Bush who was more evangelical in his
approach.

Conclusion

To reduce the commitment gap in the organization, the team members in the military must be properly trained and motivated. Since the job of
the military is to defend one’s country and participate in highly stressful combat operations, it is necessary for the members of the military to be
highly motivated and focused on the job at hand. This requires consistent effort by the top leadership in leading by example as well as increased
rewards for those whose job entails taking significant risks. Finally, commitment from the military is also increased by making them involved in
the entire process and ensuring that they get to see the big picture as opposed to tunnel vision

References