Week 8, Lecture 2

Principles of
Management
Learning Outcome
• Define leadership and its significance in modern
organizations.
• Identify and analyze different leadership styles.
• Assess their own leadership strengths and weaknesses.
• Apply leadership principles to real-world business
situations.
• Recognize the ethical dimensions of leadership.
 LEADERSHIP

• Leadership is the art of inspiring and guiding

individuals or groups toward shared goals.
• A leader has an ability to set a vision, with clear objectives,
and influence others through effective communication and
motivation.
• Successful leadership involves making sound decisions,
adapting to changing circumstances, and solving problems
collaboratively.
• Leaders excel in team building, recognizing and leveraging
the strengths of individuals to create a balanced and high-
performing team.
• Leadership is about creating a positive impact, driving
innovation, and cultivating an environment where
individuals can thrive and contribute to the collective
success of the organization.
 IMPORTANCE OF
LEADERSHIP

• Leadership is a vital management function that helps to

direct an organization's resources for improved efficiency
and achievement of goals.
• The most important functions of a leader is to provide a
vision for the company.
• The leader explains the vision and what members of the
organization must do to achieve it.
• Effective leaders provide clarity of purpose, motivate
and guide the organization to realize its mission.
• Understanding the role of leaders can help contribute more
meaningfully to the accomplishment of company's
objectives.
IMPORTANCE
OF LEADERSHIP!
• VISION
• COMMUNICATION
• DECISION MAKING
• PASSION
• GUDIANCE
• COMMITMENT
• INTEGRATY
• CONFIDENCE
• MORAL
• GROWTH
• CORDINATION
WHY TEAM NEEDS A LEADER?
WHY TEAM NEEDS
A LEADER?
• Teams often comprise multi-talented
individuals who have the right skills and
experience to deliver results.
• But most organizations still choose a
team leader to direct the energy of the
members for more effectiveness.
• PURPOSE
• PROMOTES VALUE
• PROMOTES CREATIVITY
HISTORICAL PRESPECTIVE
• Leadership, a term that gained importance around 30 years
ago, by Joseph Kotter, Warren Bennis, and Peter Drucker in
the nineties.
• While Leadership and Management are often used
interchangeably, these authors emphasized how
interconnected nature of the two roles are.
• In his 1989 book 'On Becoming a Leader,' Warren Bennis
outlined differences, portraying managers as administrators
with a focus on control and short-term views, while leaders
are innovators, developers, and inspirers with long-range
perspectives.
• Joseph Kotter, in 1990, further clarified the differences
across three levels.
 ‚THE LEADER
DOES THE
RIGHT THINGS,
THE MANAGER
DOES THINGS
RIGHT‘ PETER
DRUCKER
LEADERSHIP
STYLES
• There are many leadership styles.
• Some of the most widely discussed include:
• Authoritarian (autocratic),
• Participative (democratic),
• Delegative,
• Transformational,
• Transactional,
• Situational.
• Great leaders can inspire political movements
and social change.
Authoritarian Leadership (Autocratic)

• Provides clear expectations for what needs to be done, when it should be done, and how it should be done.
• Strongly focused on both command by the leader and control of the followers.
• There is also a clear division between the leader and the members.
• Make decisions independently, with little or no input from the rest of the group.
• Authoritarian leadership is best applied to situations where there is little time for group decision-making or where
the leader is the most knowledgeable member of the group.
• The autocratic approach can be a good one when the situation calls for rapid decisions and decisive actions.
• It can create unhealthy and hostile environments, often turning followers against the controlling leader
EXAMPLE
• An example is a military
commander giving explicit orders
during a critical mission.
Participative Leadership (Democratic)
• The most effective leadership style.
• Democratic leaders offer guidance to group members, but they also participate in
the group and allow input from other group members.
• Participative leaders encourage group members to participate, but retain the final
say in the decision-making process.
• Group members feel engaged in the process and are more motivated and creative.
• Democratic leaders tend to make followers feel like they are an important part of
the team, which helps foster commitment to the goals of the group.

• EXAMPLE
• An example is a project manager facilitating a team discussion to collectively
decide on project goals and strategies.
Delegative Leadership

• Delegative leaders offer little or no guidance to group

members and leave the decision-making up to group
members.
• While this style can be useful in situations involving
highly qualified experts, it often leads to poorly defined
roles and a lack of motivation.
Scenario: Delegative Leadership in Action

• Imagine a marketing agency working on a major advertising campaign for a new product launch.
• The agency's leader, Sarah, adopts a delegative leadership style, trusting her team of senior
designers,
• copywriters, and strategists to handle the project without much intervention.
• Sarah sets a high-level goal for the campaign but does not provide specific guidance on how to
achieve it.
• Each team member is responsible for their part—designing visuals, writing content, and planning
strategies.
• While the experienced team members thrive and produce creative work, the newer team members
struggle without clear direction.
• Some tasks overlap, others are missed entirely, and deadlines are at risk.

• This scenario highlights the strengths and weaknesses of delegative leadership: it empowers skilled
• individuals but can lead to confusion or inefficiency if roles and expectations aren't clearly defined.
Transformational le
adership
• Transformational leaders are able to motivate and inspire
followers and to direct positive changes in groups.
• These leaders tend to be emotionally intelligent, energetic,
and passionate.
• They are not only committed to helping the organization
achieve its goals, but also to helping group members fulfill
their potential.
• EXAMPLE
• An example is a CEO who inspires employees by
articulating a compelling vision for the company's
future and encouraging innovative thinking.
TRANSACTIONAL LEADERSHIP
• The transactional leadership style views the leader-follower relationship as
a transaction.
• Transactional leadership, also known as managerial leadership,
• Is a leadership style where leaders rely on rewards and punishments to
achieve optimal job performance from their subordinates.
• The transactional executive leadership model is based on an exchange or
transaction.
• The leader rewards workers who perform their tasks to the specified levels
and punishes workers who do not perform to those set standards.
• One of the main advantages of this leadership style is that it creates clearly
defined roles.
• People know what they are required to do and what they will be receiving
in exchange.
• This style allows leaders to offer a great deal of supervision and direction,
if needed.
• Group members may also be motivated to perform well to receive
rewards.
• One of the biggest downsides is that the transactional style tends to stop
creativity and out-of-the-box thinking.
EXAMPLE
• The best example of transactional leadership is Bill Gates, co-founder of Microsoft.
• Gates exemplified this style by focusing on clear structures, setting specific goals, and
implementing a system of rewards and penalties to manage his team effectively.
 This leadership styles model also described four
different leading styles:

Directing: Giving orders and expecting obedience,

but offering little guidance and assistance
Situational Coaching: Giving lots of orders, but also lots of
Leadership support

Supporting: Offering plenty of help, but very little

direction

Delegating: Offering little direction or support

EXAMPLE
• One example of situational leadership occurs when a sports team acquires new members while
others are leaving.
• The coach must adapt to the new members who join the team every season and modify the group's
weaknesses and strengths that keep changing every season.
 SERVENT THEORY OF LEADERSHIP

• The term “servant leader” was

first introduced by Robert
K. Greenleaf in 1970 in the essa
y “The Servant as Leader
.”
• Based on the idea that leaders
prioritize serving the greater
good.
• Leaders with this style serve
their team and organization first.
• They don’t prioritize their own
objectives.
• Example School Principle
 PRINCIPLES OF SERVENT LEADERSHIP

•Listening
•Sympathy
•Healing
•Self-awareness
•Encouraging
•Conceptualization
•Awareness
•Management
•Growth of others
•Building community