Paper no.

: 1

Paper Name: Human Resource Management and Organisational

Behaviour

Unit No: 1

Unit Name: Managerial Effectiveness

Lecture No.: 5

Lecture Name: Types of Leadership

Academic Script

Leadership Styles
The word leadership has come from the word "lead" which means to
guide, to conduct, to direct etc. It can simply be defined as the ability to
influence others. Leadership is an art. It is the catalyst that transforms
potential into reality. Leadership is the process of influencing and
supporting others to work enthusiastically toward achieving objectives.

Definition
According to Harold Koontz, "Leadership is the art of influencing people
so that they will strive willingly and enthusiastically towards the
achievement of group goals."
Fred Luthans "The behaviour of a leader influences the work
performance and satisfaction of his subordinates"
Stogdill, “Leadership is the situation and maintenance of structure
in expectation and interaction".
Effective leader is a person who is engaged in:
1. Creates an inspiring vision of the future.
2. Motivates and inspires people to engage with that vision.
3. Manages delivery of the vision.
4. Coaches and builds a team, so that it is more effective at
achieving the vision.

Leadership and Management

Leadership and management are related but they are not the same. A
person can be a manager, a leader, both or neither. Leadership is an
important part of management, but it is not the whole story. Managers
are involved in planning, organizing, coordinating and controlling
activities. The main function of the manager is to organize appropriate
structure and control resources, but the primary role of a leader is to
influence others voluntarily to seek defined objectives.

Leadership and Skills Required for:

1. Creating an Inspiring Vision of the Future:

Every business organization has a vision. To achieve the vision along
with the team leader requires skill and knowledge of
1. An analysis of organization's strengths by using tools such as
Porter's Five Forces, PEST Analysis, Core Competence Analysis and
SWOT Analysis.
2. Competition analysis and prediction of their moves.
3. Crafting differentiation strategies like innovation, business
models to shape business and also to succeed in future marketplaces.
4. Use of market research, assessment of key risks is also important.
5. Leadership is proactive for problem solving, looking ahead, and
not being satisfied with things as they are.
Effective leaders provide a picture of what the future will look like when
their visions have been realized. Leadership combines the analytical
side of vision creation with the passion of shared values, creating
something really meaningful to the people being led.

2. Motivating and Inspiring People

A vision provides the foundation for leadership. But its leaders' ability to
motivate and inspire people that help them deliver that vision.
For example, when you start a new project, you will probably have lots
of enthusiasm for it, so it's often easy to win support for the project at the
beginning. However, it can be difficult to find ways to keep your vision
inspiring after the initial enthusiasm fades, especially if the team or
organization needs to make significant changes in the way that they do
things.
Leaders recognize this, and they work hard throughout the project to
connect their vision with people's individual needs, goals, and
aspirations.
Leaders also motivate and influence people through their natural
charisma and appeal, and through other sources of power.

3. Managing Delivery of the Vision

This is the area of leadership that relates to management. Leaders
must ensure that the work needed to deliver the vision is properly
managed. This vision is to be achieved by themselves or team. For
doing this is important to know the art of delegation for the leader.
Also, leader is required to know the performance goals that are linked to
the team's overall vision. Performance Management and Key
Performance Indicators explains one way of doing this.
Leaders also need to make sure they manage change effectively. This
helps to ensure that the changes needed to deliver the vision are
implemented smoothly and thoroughly.

4. Coaching and Building a Team to Achieve the Vision

Individual and team development are important activities carried out by
the leaders. To develop a team, leaders must first understand team
dynamics.

A leader has to ensure skills and abilities required for each team
members to do their job and achieve the vision. Leaders do this by
giving and receiving feedback regularly or at regular intervals.
They also provide training and coaching to people to improve individual
and team performance.

One of the important leadership skill is to identify leadership potential in

others and develop their leadership skills. This helps them to make
succession planning and developing next leadership.
Leadership and Power
The first ingredient of leadership is power. Power is the potential ability
to affect the behavior of others, in organizational setting; there are
usually five kinds of power:
1. Legitimate power: This power is granted through the
organizational hierarchy. It is the same as the authority all managers
have legitimate power over their subordinates.
2. Reward power: This power is the power to give withholds rewards.
In general, the greater the number of rewards controlled by a manager
and the more important the rewards are to the subordinates, the greater
the manager's reward power. These rewards may include salary,
bonuses, promotions, recognition etc.
3. Coercive power: This type of power is the power to force
compliance via psychological, emotional or physical punishment.
4. Referent power: This type of power is more abstract that other
types of power. It is usually based on identification or imitation. It may
also take the form of charisma, an intangible attribute in the leader's
personality that inspires loyalty and enthusiasm.
5. Expert power: Expert power is derived from expertise. This power
is the personal power that accrues to someone based on the information
or expertise that the possess.

Leadership Styles

a. Autocratic leadership:
This type of leadership is based on the use of coercive power. An
autocratic leader gives orders and expects compliance. Leader leads by
the ability to withhold or give punishment or reward. This
leadership keeps strict, close control over followers by keeping close
regulation of policies and procedures given to followers. To keep main
emphasis on the distinction of the authoritarian leader and their
followers, these types of leaders make sure to only create a distinct
professional relationship. Direct supervision is what they believe to be
key in maintaining a successful environment and follower ship. In fear of
followers being unproductive, authoritarian leaders keep close
supervision and feel this is necessary in order for anything to be done.

Example of authoritarian leadership is the wrong type of information that

can be edited communicative behaviour: a police officer directing traffic,
a teacher ordering a student to do his or her assignment.

b. Democratic leadership:
A democratic leader usually consults with subordinates on proposed
actions and decisions encourage participation from them and respect
their opinion. The democratic leadership style consists of the leader
sharing the decision-making abilities with group members by promoting
the interests of the group members and by practicing social equality.

This leadership values the input of team members and peers, but the
responsibility of making the final decision rests with the participative
leader. It is also known as participative leadership. This leadership
motivate employees and boosts morale because employees by making
their contributions to the decision-making process.
It is applicable when a company needs to make changes within the
organization, this leadership style helps employees accept changes
easily because they play a role in the process. This style meets
challenges when companies need to make a decision in a short period.
This style of leadership encompasses discussion, debate and sharing of
ideas and encouragement of people to feel good about their
involvement.

c. Laissez Faire leadership:

The laissez-faire leadership style is where all the rights and power to
make decisions is fully given to the worker. If the leader withdraws too
much from their followers it can sometimes result in a lack of
productivity, cohesiveness, and satisfaction.
Laissez-faire leaders allow followers to have complete freedom to make
decisions concerning the completion of their work. It allows followers a
high degree of autonomy and self-rule, while at the same time offering
guidance and support when requested. The laissez-faire leader using
guided freedom provides the followers with all materials necessary to
accomplish their goals, but does not directly participate in decision
making unless the followers request their assistance

This is an effective style to use when:

1. Followers are highly skilled, experienced, and educated.
2. Followers have pride in their work and the drive to do it
successfully on their own.
3. Outside experts, such as staff specialists or consultants are
being used.
4. Followers are trustworthy and experienced.
This style should NOT be used when:
1. Followers feel insecure at the unavailability of a leader.
2. The leader cannot or will not provide regular feedback to their
followers.

d. Situational Leadership
In situational Leadership the best action of the leader depends on a
range of situational factors. When a decision is needed, an effective
leader does not just fall into a single preferred style. Factors Influence
the decision making process and these identified three forces that led to
the leader's action:
– The forces in the situation
– The forces in the follower
– The forces in the leader

e. Transactional Leadership
Managers using the transactional leadership style receive certain tasks
to perform and provide rewards or punishments to team members based
on performance results. Managers and team members set
predetermined goals together, and employees agree to follow the
direction and leadership of the manager to accomplish those goals. The
manager possesses power to review results and train or correct
employees when team members fail to meet goals. Employees receive
rewards, such as bonuses, when they accomplish goals.
Transactional leaders focus on increasing the efficiency of
established routines and procedures. They are more concerned with
following existing rules than with making changes to the organization. A
transactional leader establishes and standardizes practices that will help
the organization objectives.

Transactional leadership presents a form of strategic leadership that is

important for the organizations development. This leadership is essential
for team innovativeness.

f. Transformational Leadership
A transformational leader is a type of person in which the leader is not
limited by his or her followers' perception. The main objective is to work
to change or transform his or her followers' needs and redirect their
thinking. Leaders that follow the transformation style of leading,
challenge and inspire their followers with a sense of purpose and
excitement. They also create a vision of what they aspire to be, and
communicate this idea to followers.

The transformational leadership style depends on high levels of

communication from management to meet goals. Leaders motivate
employees and enhance productivity and efficiency through
communication and high visibility. This style of leadership requires the
involvement of management to meet goals. Leaders focus on the big
picture within an organization and delegate smaller tasks to the team to
accomplish goals.