2. • What is Leadership
• According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives
enthusiastically. It is the human factor which binds a group together and motivâtes it towards
goals.”
• Importance of Leadership
• Initiates action- Leader is a person who starts the work by communicating the policies and plans to
the subordinates from where the work actually starts.
• Motivation- A leader proves to be playing an incentive role in the concern’s working. He motivates
the employees with economic and non-economic rewards and thereby gets the work from the
subordinates.
• Co-ordination- Co-ordination can be achieved through reconciling personal interests with
organizational goals.
• Creating confidence- Confidence is an important factor which can be achieved through expressing
the work efforts to the subordinates
• Building morale- Morale denotes willing co-operation of the employees towards their work and
getting them into confidence and winning their trust.
• 6. Builds work environment- Management is getting things done from people. An efficient work
environment helps in sound and stable growth.
• 7. Co-ordination- Co-ordination can be achieved through reconciling personal interests with
organizational goals.
4. • Drive
• Leaders tend to be highly motivated individuals. This inner drive is reflected in a number of
common ways. They reflect a greater effort level in general, they strive for achievement, they
have greater ambition, they work with greater energy, they are often tenacious, and they are
more likely to take the initiative rather than wait for someone else to do so.
• Desire to Lead
• Effective leaders also tend to have a strong desire toward leadership roles and functions.
Although others are happier to allow others to take the lead, leaders want to do so
themselves.
• Honesty/Integrity
• The moral aspect of leadership is highly significant. Effective leaders must demonstrate high
levels of honesty and integrity. This is essential to inspiring confidence and trust from
employees and other followers, without which a leader is not likely to be effective.
Dishonesty may not always be revealed at first, but it usually is with time.
• Self-Esteem /Self-Confidence
• These two elements, self-esteem and self-confidence, are closely related and tend to be
prominent in leaders. Perhaps it is best to view these traits in terms of the negative
perspective. A lack of self-esteem and self-confidence is very problematic for a leader. When
these traits are lacking, doubts arise and insecurities plague a leader’s activities.
• Open-Mindedness
• At the same time, effective leaders also tend to be open-minded to new ideas and
experiences. They recognize that innovation is often valuable, and they also tend to consider
ideas and suggestions from others.
5. • Intelligence
• One obvious trait that many people look for in leaders is intelligence. Studies have shown
that this is indeed an important qualification. It has been suggested, however, that pure
cognitive ability is a “threshold” qualification. That is, it is important for the entrance into
leadership roles.
• Extraversion
• Another unsurprising personality trait that is commonly associated with leadership is being
an extrovert. Leaders tend to be outgoing and social in their personalities, which helps them
take the lead and act with initiative. It also helps them with the important aspect
of connecting to and inspiring others through relationships.
• Knowledge of the Business
• Another key ingredient in the leadership trait mix is knowledge of the business. Even if an
individual has all the natural personality traits desired of leaders, a lack of knowledge and
experience is usually impossible to overcome. A leader must be competent in his field, and
the most effective leaders are usually experts with deep insight.
6. Leadership Styles
• Leadership style is the manner and approach of providing direction, implementing plans, and
motivating people. As seen by the employees, it includes the total pattern of explicit and
implicit actions performed by their leader (Newstrom, Davis, 1993).
• Laissez-Faire
• A laissez-faire leader does not directly supervise employees and fails to provide regular
updates to those under his supervision. Highly experienced and trained employees with
minimal requirement of supervision fall under the laissez-faire leadership style.
• Autocratic
• The autocratic leadership style permits managers to make decisions alone without the input
of others. Managers access total authority and impose their will on employees. No one
opposes the decisions of autocratic leaders. Countries like Cuba and North Korea operate
under the autocratic leadership style.
7. • Participative
• This is also known as the democratic leadership style. It values the input of team members
and peers, but the responsibility of making the final decision rests with the participative
leader. Participative leadership motivates employee morale because employees make
contributions to the decision-making process. It accounts to a feeling that their opinions
matter.
• Transactional
• Transactional leadership style is formed by the concept of reward and punishment.
Transactional leaders believe that the employee's performance is completely dependent on
these two factors. When there is an encouragement, the workers put in their best effort and
the bonus is in monetary terms in most of the cases. In case they fail to achieve the set target
they are given a negative appraisal.
• Transformational
• Transformational leadership has the ability to affect employee's perceptions through the
returns that organization gets in the form of human capital benefits. These leaders have the
ability to reap higher benefits by introducing knowledge management processes,
encouraging interpersonal communication among employees and creating healthy
organizational culture.
9. Leadership theories
1. Great Man Theory
• According to the Great Man Theory (which should perhaps be called the
Great Person Theory), leaders are born with just the right traits and abilities for leading –
charisma, intellect, confidence, communication skills, and social skills. The theory suggests
that the ability to lead is inherent – that the best leaders are born, not made.
2. Trait Theory
• The Trait Theory is very similar to the Great Man Theory. It is founded on the characteristics
of different leaders – both the successful and unsuccessful ones. The theory is used to predict
effective leadership. Usually, the identified characteristics are compared to those of potential
leaders to determine their likelihood of leading effectively.
10. 3. Contingency Theory
• The Contingency Theory emphasizes different variables in a specific setting that determine the style of leadership
best suited for the said situation. It is founded on the principle that no one leadership style is applicable to all
situations.
• Renowned leadership researchers Hodgson and White believe that the best form of leadership is one that finds
the perfect balance between behaviors, needs, and context. Good leaders not only possess the right qualities but
they’re also able to evaluate the needs of their followers and the situation at hand. In summary, the contingency
theory suggests that great leadership is a combination of many key variables.
4. Situational Theory
• The Situational Theory is similar to the Contingency Theory as it also proposes that no one leadership style
supersedes others. As its name suggests, the theory implies that leadership depends on the situation at hand. Put
simply, leaders should always correspond their leadership to the respective situation by assessing certain variables
such as the type of task, nature of followers, and more.
• As proposed by US professor Paul Hersey and leadership guru Ken Blanchard, the situational theory blends two
key elements: the leadership style and the followers’ maturity levels. Hersey and Blanchard classified maturity into
four different degrees:
• M1 – Team members do not possess the motivation or tactical skills to complete necessary jobs.
• M2 – Team members are willing and ambitious to achieve something, but they lack the necessary ability.
• M3 – Team members possess the skills and capacity to accomplish tasks, but they’re not willing to take
accountability.
• M4 – Team members possess all the right talents and are motivated to complete projects.
• According to situational theory, a leader exercises a particular form of leadership based on the maturity level of
his or her team.
11. 5. Behavioral Theory
• In Behavioral Theory, the focus is on the specific behaviors and actions
of leaders rather than their traits or characteristics. The theory
suggests that effective leadership is the result of many learned skills.
• Individuals need three primary skills to lead their followers – technical,
human, and conceptual skills. Technical skills refer to a leader’s
knowledge of the process or technique; human skills means that one is
able to interact with other individuals; while conceptual skills enable
the leader to come up with ideas for running the organization or
society smoothly.
12. Power and Politics in Organization
• Power and politics play a huge role in business, from governing how decisions are made to
how employees interact with one another. In businesses big and small, the impact of power
depends on whether employees use positive or negative power to influence others in the
workplace. Politics may directly influence who has the power and determine whether the
overall culture of the workplace encourages productivity.
• Types of Power in Organizations
13.
14. Legitimate Power
• Legitimate power is also known as positional power. It's derived from the position
a person holds in an organization's hierarchy
Expert power
• Knowledge is power. Expert power is derived from possessing knowledge or
expertise in a particular area. Such people are highly valued by organizations for
their problem solving skills.
Referent Power
• Referent power is derived from the interpersonal relationships that a person
cultivates with other people in the organization
Coercive Power
• Coercive power is derived from a person's ability to influence others via threats,
punishments or sanctions. A junior staff member may work late to meet a deadline
to avoid disciplinary action from his boss
Reward Power
• Reward power arises from the ability of a person to influence the allocation of
incentives in an organization. These incentives include salary increments, positive
appraisals and promotions.
15. Concept of power tactics
A research conducted has revealed nine different power tactics. They are,
Legitimacy
• Depending upon the authority position of an individual or emphasizing that a
request is made as per the rules and regulations of the organization.
Rational Persuasion
• Producing logical arguments and proofs in order to show that the request is
reasonable.
Inspirational Appeals
• Emotional commitment is developed by devoting to the values, needs, hopes and
aspirations of the target.
Consultation
• Enhancing the motivation and assistance of the target by allowing him or her to
take decision relating to execution of a plan.
Exchange
• The target is awarded with benefits or favours in return for accepting a request.
Personal Appeals
• Asking the target to accept the request by considering their friendly relationship or
loyalty.
16. Ingratiation
• Adopting kind, pleasant and friendly behaviour before putting a request.
Pressure
• In this tactic, warnings, repeated demands and regular alerts are used to
influence the target.
Coalitions
• Obtaining the assistance of other people to convince the target or taking
help of others for the purpose of getting acceptance from the target.
17. Organizational politics and Different types of political tactics
Types of Political Tactics
• Organizations can manage politics with the help of following tactics that are used by
managers for increasing their power, to become competent in political decision making and
for increasing their opportunities of achieving goals.
1. Tapping Sources of Functional and Divisional Power
• The methods in which functions and divisions acquire informal power shows different tactics
which managers uses for increasing their individuals power.
2. Identifying Who Wields Power
• Inorder to increase the individual power, managers must develop the ability to identify the
most powerful person in the organization. With this information, manager can know the
person who needs to be influenced and impressed.
18. Managers, five factors must be evaluated.
Sources of Power
• Power has several sources, but the managers must identify the main sources of power
of other managers as it helps them to learn about the persons who need to be
influenced for attaining their objectives.
Consequences of Power
• The outcome of power must be identified by evaluating the individuals who receives the
most benefits from the organizational decisions.
Symbols of Power
• Managers must identify the symbols of power which represents prestige and status.
Personal Reputations
• An individual's power to influence decision making is usually indicated by that person's
reputation in an organization.
Representational Indicators
• The organizational roles and responsibilities of a person in an organization indicates the
degree of power.By evaluating the above factors, the managers can analyze the power
structure accurately and can utilize different tactics to increase their power.
19. 3 Controlling Agenda
• Controlling agenda is one of the critical tactic used for influencing decision making. It mainly
deals with the identification of issues and problems which decision makers consider in their
decisions
4 Hiring an Outside Expert
• At the time of restructuring, goals are disagreed and every unit is trying to secure its own
interests. A manager hires outside expert who is a neutral observer and considers expert's
objective views to support his position.
5. Building Coalitions and Alliances
• Managers build coalition with other managers for acquiring more power and influencing
decision-making process in their favour.
20. Motivation
Définition of Motivation
• The word Motivation derives from the Latin word “Movere”. The Latin word
“Movere” means “To move”, “To drive” or “To drive forward” etc. Motivation can
be defined as stimulating, inspiring and inducing the employees to perform to
their best capacity. Motivation is a psychological term which means it cannot be
forced on employees. It comes automatically from inside the employees as it is the
willingness to do the work.
22. 1. Unsatisfied need. Motivation process begins when there is an
unsatisfied need in a human being.
2. Tension. The presence of unsatisfied need gives him tension.
3. Drive. This tension creates an urge of drive in the human being an he
starts looking for various alternatives to satisfy the drive.
4. Search Behavior. After searching for alternatives the human being
starts behaving according to chosen option.
5. Satisfied need. After behaving in a particular manner for a long time
then he evaluates that whether the need is satisfied or not.
6. Reduction of tension. After fulfilling the need the human being gets
satisfied and his tension gets reduced.
23. Types of Motivation
1.Achievement Motivation: It is the drive to pursue and attain goals. An individual with
achievement motivation wishes to achieve objectives and advance up on the ladder of
success.
2. Affiliation Motivation: It is a drive to relate to people on a social basis. Persons with
affiliation motivation perform work better when they are complimented for their
favorable attitudes and co-operation.
3. Competence Motivation: It is the drive to be good at something, allowing the individual
to perform high quality work. Competence motivated people seek job mastery, take
pride in developing and using their problem-solving skills and strive to be creative when
confronted with obstacles. They learn from their experience.
4. Power Motivation: It is the drive to influence people and change situations. Power
motivated people wish to create an impact on their organization and are willing to take
risks to do so.
5. Attitude Motivation: Attitude motivation is how people think and feel. It is their self
confidence, their belief in themselves, their attitude to life. It is how they feel about the
future and how they react to the past.
24. 6. Incentive Motivation: It is where a person or a team reaps a reward from an
activity. It is “You do this and you get that”, attitude. It is the types of awards and
prizes that drive people to work a little harder.
7. Fear Motivation: Fear motivation coercion’s a person to act against will. It is
instantaneous and gets the job done quickly. It is helpful in the short run.
29. • Herzberg classified these job factors into two categories-
• Hygiene factors- Hygiene factors are those job factors which are essential for existence of
motivation at workplace
• Pay - The pay or salary structure should be appropriate and reasonable. It must be
equal and competitive to those in the same industry in the same domain.
• Company Policies and administrative policies - The company policies should not be
too rigid. They should be fair and clear. It should include flexible working hours,
dress code, breaks, vacation, etc.
• Fringe benefits - The employees should be offered health care plans
30. • Motivational factors- According to Herzberg, the hygiene factors cannot be regarded as
motivators. The motivational factors yield positive satisfaction
• Recognition - The employees should be praised and recognized for their
accomplishments by the managers.
• Sense of achievement - The employees must have a sense of achievement. This
depends on the job. There must be a fruit of some sort in the job.
• Growth and promotional opportunities - There must be growth and advancement
opportunities in an organization to motivate the employees to perform well.
• Responsibility - The employees must hold themselves responsible for the work. The
managers should give them ownership of the work. They should minimize control
but retain accountability.
• Meaningfulness of the work - The work itself should be meaningful, interesting and
challenging for the employee to perform and to get motivated.
35. Implications for Management
People with different needs are motivated differently.
• High need for achievement - High achievers should be given challenging projects
with reachable goals. They should be provided frequent feedback. While money is
not an important motivator, it is an effective form of feedback.
• High need for affiliation - Employees with a high affiliation need perform best in a
cooperative environment.
• High need for power - Management should provide power seekers the
opportunity to manage others.
• Note that McClelland's theory allows for the shaping of a person's needs; training
programs can be used to modify one's need profile.
37. Advantages of the Expectancy Theory
• It is based on self-interest individual who want to achieve maximum
satisfaction and who wants to minimize dissatisfaction.
• This theory stresses upon the expectations and perception; what is real
and actual is immaterial.
• It emphasizes on rewards or pay-offs.
• It focuses on psychological extravagance where final objective of individual
is to attain maximum pleasure and least pain.
Limitations of the Expectancy Theory
• The expectancy theory seems to be idealistic because quite a few
individuals perceive high degree correlation between performance and
rewards.
• The application of this theory is limited as reward is not directly correlated
with performance in many organizations. It is related to other parameters
also such as position, effort, responsibility, education, etc.