2. INTRODUCTION :  Leadership has originated and formed from the verb ‘to lead’ means to provide direction.  A person who directs, shows the path, motivates, initiates is a leader.  Successful managers should try to create a desire to achieve goals, recognition, flexibility, and should instill a sense of co-operation.  If managers provide effective leadership, then employees are motivated, inspired and get the proper guidance.  Managers should themselves provide good leadership and it is very essential.

3. DEFINITION :  “Leadership is an activity of controlling the voluntary efforts of people achieving corresponding objectives.” - Dr. George R. Terry  “Leadership is such a behaviour through which others are motivated to work.” - La Payere and Franceworth  “Leadership is an act influencing people so that they will strive willingly towards achievement of goals.” - Koontz and O’Donnell

4. MEANING :  Continuous process stimulating others.  Includes leaders and subordinates  An effort to direct and stimulate the behaviour and efforts of employees and subordinates.  Interpersonal relations has to be used as a means of communication.  It is an objective to achieve the goals of an enterprise.

5. NATURE OF LEADERSHIP : o Desired result not possible without a competant leader. o Leadership is required at economic, commercial, social or national activities. o It is an art. o Without leadership qualities a manager will not be able to reach the height of success. o As per Koontz and O’Donnell, “Every manager should be a leader, every leader be a manager is not necessary”.

6. o Management is an art of doing things through the efforts of others. o A competant leader is able to create a sense of unity and co-operation between groups. o A leader is a part of the group but still he has a better status and recognition. o Various meanings of leadership such as : Focal point of any group activity Stimulus for discipline Providing direction Tool for achieving desired goals Tool for authority and power Element of interpersonal behaviour, etc.

7. o “Leadership results from the qualities that are within a leader”. o The qualities may be present when a person is born, but they can certainly be created. o Leadership qualities can be acquired through training and competencies. o The use of leadership qualities is always done in context with a group.

8. FUNCTIONS OF LEADERSHIP - LEADER 1) Instructions 2) Fulfillment of objectives 3) Security 4) Representative 5) Motivator 6) Recognition 7) Problem Solver

9. LEADERSHIP STYLE : A. Autocratic leadership : - Leader doesnot give freedom to employees. - Gives orders and instructions - They have to be strictly deallt with - According to this style, it is believed that employees are unable to do work on their own. - This style becomes more necessary in case of untrained, uneducated and illiterate employees. This style is divided into three categories :

10. (1) Centralization of Authority : - Total authority retained by leader. - Subordinates are not given any power. - For untrained and illiterate employees. - Limitation : Leader has to face work overload. - Unable to concentrate on important decisions due to workload. - Labour turnover rate increases here.

11. (2) Lay stress on orders only : - Orders are issued to subordinates to get the work done. - Educated employees not interested and uneducated employees get bored of such orders. - No enthusiasm towards work. - When employees are not interested to take up any responsibility this technique is useful. - Detailed instructions given to perform work. - Employees cannot use their own creativity and skills.

12. (3) Main strict supervision : - It is one of the policies. - Where employees are uneducated, untrained, etc. such kind of leadership is suitable. - But if employed and trained than results don’t provide fruitful.

13.  Benefits : i. Employees accustomed to receive directions and orders can accept this style. ii. Self motivates manager iii. Speedy decisions taken iv. No planning, organizing, so they can concentrate on work

14.  Demerits : i. Not favoured by employees ii. Employees get depressed and inactive iii. Reduces morale and enthusiasm iv. No opinions and advice v. Misuse of power

15.  When is this style useful ? Strict policy and regulations have to be considered Emplopyees are uneducated, untrained and irresponsible Emergency or critical situation Work has to be undertaken from less efficient employees Employees are demotivated and dissatisfied

16. B. Democratic Leadership approach : o Employees efforts are co-ordinated with each other. o Their views and suggestions are considered. o Through formal and informal meetings, employees suggestions are taken into account. o Formal meeting notice is given, whereas in informal meeting are called without any notice.

17.  Benefits :  Importance given to employees  Productivity and efficiency increased  Work harder  Morale and enthusiasm increases Demerits :  If managers not able to use effectively than this method donot show good benefits.  Sometimes employees themselves not interested to take decisions as they are confused.  Lack of co-ordination

18.  Under which situation this style is useful ?  When employees are trained and educated and they have logical reasoning to understand situations.  To take routine decisions  Confident employees to take decisions

19. C. Free Reign Style of Leadership :  Interference of top management is as minimum as possible.  Maximum freedom given to employees.  Top managers only supervise.  General guidelines provided wherever necessary.  Final decision taken by employee.  Here employees should be trained and educated, and should understand situations properly than only this method proves good.

20.  The leader believes to create suitable environment to achieve goals.  Employees inner strength is developed.  Managers show trust and confidence in employees  But at times employees may also take wrong decision.  This style suitable for educated and well trained employees.

21.  Benefits :  Develops hidden talents of people  Employees administrative skills are developed  Less interference of work is done of employees

22.  Demerits :  Employees may take wrong decisions  Lack of co-ordination  Employees are sometimes confused to take wrong decisions.

23.  When is this approach benefitial ?  Where employees have good knowledge  Routine decisions are to be taken  Employees are confident to take decisions

24. Essential Qualities required in a LEADER : I. Energy II. Emotional stability III. Knowledge of human relations IV. Interest V. Knowledge of communication VI. Good teaching skill VII. Technical competence VIII. Social competence

25. Required qualities in a leader : Physical qualities Psychological Qualities Social QualitiesBehavioural Qualities Other Qualities

26. 1) Physical Qualities : Healthy, Good appearance (Face, Physiqye, Appearance), Good and sweet voice. 2) Psychological Qualities : Self confidence, Efficient, Vision, Intellect, Competence, Skills, Patience. 3) Social Qualities : Communication, Interpersonal effectiveness, Presentation skills, Honesty, Humility, Co-operation, Popularity.

27. 4) Behavioural Qualities : Interest, Honesty, Commitment, Dedication, Creativity, Expectation. 5) Other Qualities : Education, Training, Leadership Experiences.

28.  There were 163 types of researches regarding leadership qualities conducted in America.  Till 1904 to 1947, 124 leadership surveys have been undertaken and given importance.  On that basis peculiar characteristics of leadership has been evolved :

29. 1. Itellect17. Decision making skills 2. Education18. Physical Height 3. To participate in Social Activities19. Technical competence 4. Self confidence20. Strategic competence 5. Acceptance of responsibility21. Achievement motivation 6. Social status22. Physical weight 7. Competence of interpersonal relations 23. Stable decisions 8. Good voice24. Firm commitment 9. Good physical appearance25. Dedication 10. Liability to complete responsibility26. Humility 11. Co-operation27. Force 12. Knowledge28. Honesty 13. Impact29. Mobility 14. Recognition and Praise30. Communication Ability 15. Efficiency31. Teaching skills 16. Age

30. Leadership Continuum :  Under Autocratic leadership, all the power is kept by leader himself. He is task oriented and does not give importance to employees.  In the democratic style, employees are kept at the centre. Human relations are given much more importance.  In reality, manager adopts both the styles in different situations.  When centralization of authority reduces, then subordinates independency and freedom is increased.

31. 1 2 3 4 5 6 7 8 9 Autocratic leaderPeople centred leader Use of power among subordinates

32. Tannen Baum : o Researches conducted by Tannen Baum and Schmidt is of much importance. o Development opportunities can be created for employees and he have considered social changes to improve quality of decisions. o 2 sides of the group : Left side – Authoritative leadership and Right side – Democratic leadership. o 7 parts portraying 7 types of leadership are as under :

33. 1. Leader takes decisions and presents it – Employees have to implement it. 2. Leader takes decisions and employees accept it, efforts are undertaken. 3. Leader presents his views in front of employees and invites querries. Possibilities of discussions. 4. Leader tries to present possible solutions or decisions. There is possibility of taking decisions. 5. Leader presents problems in front of Employees, gets querries and than take decisions

34. 6. Leader entrust the employees to take decisions, but also explains the constraints. 7. Leader asks the employees to freely take decisions. Decisions are taken independently, so that it becomes effective in long run. Employees personal development takes place. In democratic leadership it becomes easy to accept goals in groups. Leadership qualities are developed in subordinates. More time is spent in taking decisions. Leader should be patient to take decisions. Leader should be effective in providing leadership skills.

35. Theories of Leadership  Fiedler’s contingency model leadership and its effectiveness principle.  The base of leader’s effectiveness, as per this model is :  System or type of leadership  Favourability of condition

36. 1) System of leadership : - Here there are two types of leaders :  Task oriented  Relationship oriented -Task oriented leaders pay more importance to the task rather than people. - Relationship oriented leaders believe in maintaining healthy relations with their subordinates. -Fiedler has developed a numerical table of “Least preferred co-worker” (LPC) -LPC are those employees with whom the leader experiences most difficulty to work. -Certain tests are used :

37. Intelligent ………… Dull Efficient ………... Inefficient Co-Operate ………… Non Co-operative Interested …………Disinterested  If a leader adopts a positive attitude towards subordinates, LPC rate would be high and vice versa.  If LPC ranking Is high, it denotes relationship centered leader and if low, task oriented.

38. 2) Favourability of Situation : Within 3 variables a leader has to work : - Leader-member relations - Work-structure - Position-Authority (i) Leader-member relations : It is determined in which manner the leader is accepted or rejected. If co-operation between them, orders are carried out properly and as per leaders desires.

39. (ii) Work-structure : - In a highly structured task leader’s ability to influence the group is restricted because task dilutes leaders ability and potential influence. - In an unstructured task, the leader has great potential to influence group as he has more knowledge than the followers. (iii) Leader position power : - Power to have n fire, status symbols, power to give promotions, etc.

40. Condition / Situation Attitude12345678 Leader- member relations Good bad Task structurehigh low HighhighLowlow Position powerstrongweakstrongweakstrongweakstrongweak

41.  1,2,3 = favourable situation  4,5 = general favourability  6,7,8 = adverse situation  Task structure is favourable in highly favourable situation and highly unfavourable situations, In general conditions, relationship- based leader are good.

42. Evaluation :  More clear  Derived this model after scientific researches  Depends on various situations  This model is useful to select the leader  Related with different situations with leadership system  This model tells us that leadership is based on situation

43. Criticisms :  Measuring rod quite confusing and unreliable. No direct relationship between combinations and style.  Fails to explain favourable and unfavourable situations.  Complex model based on small samples.  Table of LPC is unclear.

44. LIKERT’S SYSTEM OF MANAGEMENT  The professor of Chicago University, Rensis Likert has given the system of management.  Important ideas have evolved related to the leader’s behavior in his research.  Likert is a pioneer of participative form of management.  In his research of effective leaders, he has noted that : “Effective leaders adopted a humanly approach towards their subordinates and they were able to motivate and direct the efforts of their subordinates successfully.”

45.  The following are the 4 management systems adopted by likert : 1) System – 1 : o System 1 is called “Exploitative Authoritative form of management”. o Such leaders donot have any trust in their subordinates. o They get their work done forcefully through punishments and subordinates fear leaders. o They believe in formal communication and they themselves take decisions.

46. 2) System – 2 : o Such style is called “Benevolent Authoritative”. o Such leaders are authoritative but still they behave humanly with subordinates. o They trust their subordinates and try to motivate them. o Try to know views of subordinates and encourage participation in decision making process. o But keep all the authority with themselves.

47. 3) System – 3 : o This style is called “Consultative leadership”. o They trust their subordinates. o They encourage and apply the ideas and creativity of their subordinates. o They believe in motivation. o Communication is in the form of dialogue. o The top order decisions are centralized only the routine decisions are decentralized.

48. 4) System – 4 : o This style is known as “Participative style”. o Total trust and confidence is shown on subordinates. o Their views and suggestions are given importance. o Informal communication is encouraged. o Subordinates are made to participate in decision making. o They work with subordinates in groups, as they believe in group effort.

49.  Likert’s research stated that managers adopted system-4 in their work practice.  System-4 is helpful to achieve the goals effectively.  It encourages participation and unity.  Efforts are focussed over here.

50. IMPORTANCE OF LEADERSHIP  An important organ of direction.  Provides motivation.  Directs activities of group.  He creates unity, co-ordination and dedication among his group members.  Provides confidence, strength, will-power in his subordinates.  Helps to get best results through minimum wastage of time and energy.  A base for effective organization structure.  Improves the effectiveness of teams and groups.  Effective management of business is not possible without an effective leader.