whereby they guide people and their activities.

A leader
interprets the objectives of the people working under him and
UNIT – IV
guides them towards achievement of those objectives. He also
TOPIC – 1
creates and sustains enthusiasm among them for superior
LEDAERSHIP performance.

Synopsis In the words of Louis A. Allen, “A leader is one who guides

· Meaning, Definition & Nature of Leadership and directs other people. He gives the efforts of his followers a
direction and purpose by influencing their behavior”. Managers
· Characteristics of leadership
at all levels must perform leadership function in order to lead
· Importance of leadership the subordinates towards organizational goals.

· Function of leadership Leadership is the process of influencing the subordinates so

· Leadership Style that they cooperate enthusiastically in the achievement of

group goals. In other words, leadership is the process by which
· Theories Of Leadership
an executive imaginatively directs, guides, and influences the
MEANING AND DEFINITION OF LEADER AND work of others in choosing and attaining specified goals by
LEADERSHIP mediating between the individuals and the organization in such
Leadership is a process of exercising influence over an a manner that both will obtain maximum satisfaction.
individual or a group. Effective leadership is necessary for CHARACTERISTICS OF LEADERSHIP
inspiring the people to work for the accomplishment of
An analysis of the above definitions reveals that leadership as a
objectives. It provides a cohesive force which holds the group
managerial process has the following characteristics:
intact and develops a spirit of cooperation. Chester Bernard
viewed leadership as the quality of behavior of individuals
Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
1.Leadership is a process of influence: Leadership is a individual goals set up by themselves in such a way that they
process whose important ingredient is the influence exercised do not conflict with the organizational objectives.
by the leader on the group members. A person is said to have IMPORTANCE AND NEED FOR LEADERSHIP
an influence over others when they are willing to carry out his
1. Determination of Goals : A leader performs the
wishes and accept his advice, guidance and direction.
creative function of laying down goals and policies for the
Successful leaders are able to influence the behavior, attitudes
followers. He acts as a guide in interpreting the goals and
and beliefs of their followers.
policies.
2. Leadership is related to a situation: When we talk to
2. Organisation of Activities : A good leader divides
leadership, it is always related to a particular situation at a
organisation activities among the employees in a systematic
given point of time and under a specific set of circumstances.
manner. The relationships between them are clearly laid down.
That means leadership styles will be different under different
This reduces the chances of conflict between them.
circumstances. At one point of time, the subordinates may
accept the autocratic behavior of the leader while at a different 3. Achieving Coordination : A leader integrates the goals
point of time and under a different situation participative of the individuals with the organisational goals and creates a
leadership style may be successful. community of interests. He keeps himself informed about the
working of the group. He shares information with the group for
3. Leadership is the function of stimulation: Leadership is
the coordination of its efforts.
the function of motivating people to strive willingly to attain
organizational objectives. Leaders are considered successful 4. Representation of Workers : A leader is a
when they are able to subordinate the individual interests of the representative of his group. He takes initiative in all matters of
employees to the general interests of the organization. A interest to the group. He also attempts to fulfill the
successful leader allows his subordinates to have their psychological needs of his followers.

Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
5. Providing Guidance: A leader guides the subordinates FUNCTIONS OF A LEADER
towards the achievement of organisational objectives. He is (i) Setting Goals : A leader provides guidance to the group by
available for advice whenever a subordinate faces any problem. setting goals to his subordinates. He acts as a guide of his
6. Inspiration of Employees: A good leader inspires the followers by setting objectives of the group.
subordinates for better performance. Motivation is necessary (ii) Representation : A leader represents the group to his
for getting the desired work from the subordinates. The leader superiors. A good leader is the guardian of the interests of the
motivates the employees by providing them economic and non- subordinates. He is the personal embodiment of the impersonal
economic rewards. organisation inside and outside the organisation.
7. Building Employees’ Morale: Good leadership is (iii) As a Counselor : A leader may render advice and tries
indispensable for high employee morale. The leader shapes the to overcome barrier, real or imaginary and instills confidence
thinking and altitudes of the group. He develops good human in the employees. Leadership creates a cooperative attitude
relations and facilitates interactions among the members of the among the employees.
group. He maintains voluntary cooperation and discipline
(iv) Develops Team Spirit : A leader develops a sense of
among followers.
collectivism in the employees to work as a team. Individuals
8. Facilitating Change : Leadership is the mechanism to within the group may be shown varied interests and multiple
convince workers about the need for change. Dynamic goals. A leader has to reconcile their conflicting goals and
leadership is the comer-stone of organisational change. An restore equilibrium.
effective leader is able to overcome resistance to change on the
(v) Strives for Effectiveness : A leader provides an
part of workers and thus facilitates change.
adequate regard structure to improve the performance of
employees. He delegates authority and invites participation
from the employees to achieve better results. He provides
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Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
imagination, foresight and initiative to group members and member on his own initiative and remains aloof from the group
forces them to have an identity of interests, outlook and action. for the major part of the time. Thus, under this style, all
decision- making power is centralized in the leader. Leader
adopting this style stresses his prerogative to decide and order
STYLES OF LEADERSHIP
and subordinates’ obligation to do what they are told to carry
Leadership style refers to a leader’s behavior. Behavioral out.
pattern which the leader reflects in his role as a leader is often
Autocratic leadership may be negative because followers are
described as the style of leadership. Leadership style is the
uniformed, insecure and afraid of leader’s authority. Such a
result of leader’s philosophy, personality, experience, and
leader may be called the
value system. It also depends upon the types of followers and
strict autocrat who realizes on negative influences and gives
the organizational atmosphere prevailing in the enterprise.
orders which the subordinates must accept. Leadership can be
Different types of leadership styles are:
positive also because the leader may use his power to disperse
i. Autocratic leadership; rewards to his group. When his motivational

ii. Participative leadership; style is positive, he is often called a benevolent autocrat. The

iii. Free rein leadership; and benevolent autocrat is effective in getting high productivity in
many situations and he can develop effective human
1. Autocratic or Authoritarian Leadership
relationships. There is another type of autocratic leader known
The autocratic leader gives orders which must be obeyed by the as manipulative autocrat, who makes the subordinates feel that
subordinates. He determines policies for the group without they are participating in decision-making process even though
consulting them and does not give detailed information about he has already taken the decision. An autocratic leader assumes
future plans, but simply tells the group what immediate steps that people basically work for money they and want security.
they must take. He gives personal praise or criticism to each
Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
Because of such assumptions about human beings, he exercises - It leads to reduction in the number of complaints and
tight control and supervision over his subordinates. But these grievances.
assumptions do not hold good in all the situations. If the - It increases the morale of the employees.
motivational style is negative, people will dislike it.
3. Free Rein or Laissez Faire Leadership
Frustration, low morale and conflict develop easily in
autocratic situations. A free rein leader does not lead, but leaves the group entirely to
itself. The free rein leader avoids power. He depends largely
2. Participative or Democratic Leadership
upon the group to establish its own goals and work out its own
A democratic leader is one who gives instructions only after problems. Group members work themselves and provide their
consulting the group. He sees to it that policies are worked out own motivation. The leader completely abdicates his leadership
in group discussions and with the acceptance of the group. position by giving most of the work entrusted to him to the
Participative manager decentralizes managerial authority. His group which he is supposed to lead. This is also known as
decisions are not unilateral like that of the autocratic leader. permissive style of leadership, where there is least intervention
Unlike an autocratic manager who controls through the by the leader. Abdication of authority by the leader and letting
authority , a participative manager exercises control mostly by the group to operate entirely on its own are the common
using forces within the group. Some of the advantages of features of this style. This mode of direction can produce good
participative leadership are: and quick results if the subordinates are highly educated,
- It increases the acceptance of management’s ideas. responsible and brilliant who have a strong desire and
commitment to give their best to the organization.
- It improves the attitude of employees towards their jobs
and the organization.

- It increases the cooperation between management and

employees.
Prepared by
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Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
 1 – Exploitative authoritative System

2 – Benevolent authoritative System

3 – Consultative System

4 – Participative (Democratic)

1 – Exploitative authoritative System

System 1 managers make all the work – related decisions, and

order their subordinates to carry them out. Standards and
methods of performance are also set by the managers. The
communication between the managers and the subordinates is
LIKERT’S MANAGEMENT SYSTEMS AND highly formal in nature and downward in direction. The
LEADERSHIP subordinates have absolutely no say in any matter in the

Rinses Likert and his associates of the University of Michigan, organization. Such managers are highly autocratic who believe

had conducted extensive survey of management and leadership in threats and punishment to get the things done. They follow

patterns in a large number of organizations. Within the basic strict supervision over their subordinates.

style categories of task orientation and employee orientation, 2 – Benevolent authoritative System
Likert developed a four level model of leadership
Managers under this system are also autocratic, but they are not
effectiveness. These patterns of leadership are termed Systems
fully authoritative. At times, they give some flexibility to the
of management and are assigned numbers from 1 to 4 to
subordinates to carry out their tasks within the prescribed
indicate the stages of evolution in the patterns of management
limits. Subordinates who meet or exceed their goals may be
in terms of leadership styles :
rewarded. Managers adopt patronizing or paternalistic attitude

Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
towards the obedient and faithful subordinates. They are very set by the superior and subordinates. They permit self –
harsh with the subordinates who do not carry out the tasks. appraisal by the subordinates.

3 – Consultative System THEORIES OF LEADERSHIP

Under this system, managers set goals and issue general orders 1. TRAIT THEORY OF LEADERSHIP
after discussing them with the subordinates. They take only Trait theory seeks to determine universal personal
major decisions and leave the routine decisions to be taken by characteristics of effective leaders. Numerous physical, mental,
the subordinates. Subordinates are free to discuss the work- and personality traits were researched during the period from
related matters with their superiors. Thus, there exists a two- 1930 to 1950. Leaders were characterized by a wide variety of
way communication in the organization. The control system traits ranging all the way from neatness to nobility. In the late
tends to be flexible and goal oriented. More emphasis is placed 1940s, Ralph Stogdill reported on the basis of at least fifteen
on rewards than on punishments to motivate the subordinates. studies that leaders possess intelligence, scholarship,
4 – Participative (Democratic) dependability in exercising responsibilities, activity and social
participation and socio-economic status. He also found traits
This is an ideal system towards which organizations should
such as sociability, persistence, initiative, knowing how to get
work. The relations between managers and subordinates are
things done, self confidence, alertness, insight,
cordial and friendly. The communication system is completely
cooperativeness, popularity, adaptability and verbal facility in
open. The goals are set and work related decisions are taken by
ten leadership studies. Persons who are leaders are presumed to
the subordinates. Group approach is adopted in supervision and
display better judgment and engage themselves in social
control. Thus, system 4 presents true democratic styles of
activities. The study of the lives of successful leaders reveals
leadership. The managers are very supportive in their attitude
that they possessed many of these traits.
towards the subordinates. Performance standards are mutually

Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
Trait studies have not produced clear results because they do Success in leadership depends more on what the leader does
not consider the whole leadership environment. Personal traits than on his traits. The behavioural approach is based on the
are only a part of the whole environment. Though a certain trait premise that effective leadership is the result of effective role
exists, it will not become active until a certain situation calls behavior. There is a dynamic interaction between the leader
for it. Thus, there is no sure connection between traits and and the followers, and leaders produce different styles while
leadership acts. Leadership is always related to a particular dealing with the workers.
situation. A person may prove successful in one situation due
Many behavioural scientists have attempted to identify
to some traits, but may fail in another situation. appropriate behavioural patterns of leadership styles. Some of
Another shortcoming of the trait theory is the failure of its the important contributions in this regard include Ohio State
supporters to formulate a common list of traits found in all Studies, Michigan University Studies and Managerial Grid of
successful leaders. For instance, good health is desirable in Blake and Mouton. The behavioural scientists don’t
many leadership situations, but there are also successful leaders concentrate on the traits of leaders; rather they study the
in other situations that do not enjoy good health. There are so activities of leaders to identify their behavioural patterns.
many exceptions to any general statement about leadership 1. Michigan Studies of leadership
traits. The theory also fails to mention the traits which are
The Institute for Social Research at the University of Michigan
necessary to maintain leadership. Measurement of a trait
conducted empirical studies to identify styles of leader
usually occurs after a person becomes a leader and it is difficult
behavior that results in higher performance and satisfaction of
to suggest the traits which are pre- requisites of successful
a group. The studies identified two distinct styles of leadership
leader.
such as Employee Centred leadership and Production Centred
2. BEHAVIOURAL THEORY OF LEADERSHIP (task oriented) leadership

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Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
The employee centred leaders concentrate on human relations The value of Michigan studies lies in the analysis of two
and emphasize delegation of authority, concern for employee leadership styles, task and employee oriented leadership.
needs, welfare, advancement, etc. Leaders who are described as Instead of restricting to traits of leaders, they concentrated on
employee oriented stress the relationship aspects of the job. the behavior of leaders. These studies are criticized on the
They feel that every employee is important and take interest in following grounds:
everyone, accepting their individuality and personal needs. a) The Michigan studies failed to suggest whether leader
Production centred leadership is more concerned with
behavior is a cause or effect. They did not clarify whether the
maximizing regardless of the employees needs, welfare and employee centred leadership makes the group productive or
aspirations. Managers don’t attach much importance to the whether the highly productive group induces the leader to be
human element. employee centred.
The Michigen Studies found that both the styles of leadership
b) The Michigan Studies did not consider the nature of the
led to increase in production, but it was slightly more in case of
subordinates’ tasks or their personal characteristics. Group
production centred style. However, the use of direct pressure
characteristics and other situational variables were also
and close supervision led to decreased satisfaction and ignored.
increased turnover and absenteeism. The employee centred
c) The behavioural styles suggested by Michigan Studies have
approach led to improved work flow and more cohesion in
been termed as static. A leader is supposed to follow either of
interactions resulting in increased satisfaction and decreased
the two styles, viz., task orientation and employee orientation.
turnover and absenteeism. This suggested the superiority of the
But in practice, a particular style may succeed in one situation
employee centred leadership style over the production centred
and fail in another. Moreover, leaders don’t restrict themselves
style.
to a particular style. They adopt both the orientations in
Evaluation of Michigan Studies
varying degrees to suit the particular situation.

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Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
2. Ohio State Leadership Studies b) Consideration refers to the leader’s behavior indicative of

The leadership studies initiated by the Bureau of Research at friendship, mutual trust, respect, and warmth in the relationship

Ohio State University attempted to identify various dimensions between the leader and the members of his staff. The research

of leader behavior. studies also showed that initiating structure and consideration
are two distinct dimensions and not mutually exclusive. A low
score on one does not require high score on the other. Thus,
leadership behavior can be plotted on two separate axes rather
than on a single continuum. The four quadrants in the above
Figure show various combinations of initiating structure and
consideration. In each quadrant, there is a relative mixture of
initiating structure and consideration and a manager can adopt
any one style.

3. Blake and Mouton Managerial Grid

The two dimensions of leadership, viz. concern for people and

Ultimately, these studies narrowed down to the identification concern for production have been demonstrated by Robert R.

of two dimensions of leader behavior: Initiating Structure and Blake and James S. Mouton in the form of a grid. The word

Consideration. ‘Grid’ means an iron grating, a frame work of parallel bars.

a) Initiating Structure refers to the leader’s behavior in

delineating the relationship between himself and members of
the work group and of communication, and methods or
procedures. On the other hand,

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College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
 their development or communicating with them beyond the
issue of instructions and orders. If there is a conflict between a
subordinate and the boss, the goal of the boss is to win.

ii) The 1, 9 Managerial style (Country Club)

Under this style of management, work is done leisurely. At best

people are regarded rather than driven. Subordinates are
expected to turn out some work to avoid trouble. The boss is
Blake and Mouton identified five basic leadership styles of more of a big brother rather than an autocratic leader. Social
practicing managers representing various combinations of the relationships are more important. The group, not the individual
aforesaid two dimensions as shown in the above diagram. It is, is the key in the organization. The aim is to achieve
however, important to point out these basic styles are a matter friendliness and harmony among the members of the
of convenience rather than a fact. A brief description of these organization.
styles is given below.
iii) The 1, 1 Managerial Style (Impoverished)
i) The 9, 1 managerial Style (Task)
A manager with this orientation exerts minimum influence on
People are regarded as an instrument of production under the 9, the contacts with group members. He expresses little concern
1 management style. It is an autocratic style of leadership. for production or people. In a supervisory position, he is most
This style places a heavy emphasis on task and job likely to be found executing messenger – carrier functions,
requirement. Human relationships and interactions are communicating orders from the layer above to the layer below.
minimized. Subordinates are expected to carry out orders with He is an expert in passing on blame to others for failures in
an unquestioning obedience. They are taken as merely means such a way that he absolves himself from responsibilities and
for doing the tasks assigned to them. Little attention is given to rarely initiates. His criticism is strictly in self defense.

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Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
Minimum involvement in organization’s purpose and with its A major difference between 9, 9 style and other managerial
people is all that he wants. Through minimum contact and non- styles is in goal setting and its use as a basic management
involvement, the 1, 1 style reduces the need to take active steps approach to a large variety of problems. The capability of
with respect to managerial responsibilities. Subordinates or people in achieving organizational objectives through
members of the group are left to find for themselves the ways commitment is fundamental. In other words, the 9, 9
of doing the job. orientation aims at integrating the people and production
dimensions of work under conditions of high concern for
iv) The 5, 5 managerial Style (Middle Road)
growth. The key is the involvement and participation of those
The “people” dimension in the work situation is as important as
responsible for it in planning and execution of work. This
the “production” dimension. The 5, 5 style seeks to maintain a
brings about the kind of team spirit that leads to high
balance between the two. A basic assumption of this style is
organization accomplishment.
that people will work willingly and they are told the reasons for
doing so are explained to them. However, just enough is
communicated so that people have a general sense of what is Each of the five styles given by Blake and Mouton points out
going on. If too much is told, it is feared that they might resist. the relative concern for production and people and implies that
Enough concern is shown for the people so that adequate the most desirable leadership behavior is 9, 9 i.e., maximum
production may be achieved. This is seen in the 5, 5 approach concern for both production and people. It may be noted that
to management development, communication, and the five positions emphasized in the Managerial grid are rarely
performance reviews. Meetings are held to listen to their found in their pure form in actual life. That means, a manager
suggestions and to create a sense of participation in decision - may have a style of 8, 2, or 4, 6 or some other. Nevertheless,
making. Managerial Grid is widely used as a technique of managerial
training and for identifying various combinations of leadership
v) The 9, 9 Managerial Style (Team)
styles.
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College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
In essence, the managerial Grid has given popular terminology 3. Path–goal theory of leadership
to leadership styles within the four quadrants of the Ohio State 1. The Fiedler model of leadership
Studies. However, there is one basic difference between the
Fiedlers contingency theory was developed by Fred Fiedler in
two. In managerial Grid, ‘concern for’ is a predisposition about
the late 1960s. He believes the effectiveness of leadership
something or an attitudinal dimension.
styles vary depending on the situation. He believes that there
Thus, managerial Grid tends to be an attitudinal model that are two types of the leaders, the task oriented one and the
measures the predispositions of a behavioural model that people oriented one.
examines how leader actions are perceived by others.
The elements that would affect the effectiveness of leadership
are:
III. CONTINGENCY MODEL OF LEADER
• How clearly defined and structured the job scope is?
EFFECTIVENESS
• How much positional power the leader has?
A particular style of leadership cannot be effective under all
circumstances. In other words, it is contingent on the • The relationship between the leaders and the followers.

environments obtaining in the enterprise. Even the universally Fiedler believes that the most favourable situation is one that
accepted “democratic style” of leadership ‘ concentrating on has a clearly defined scope, high positional power and good
subordinates participation in decision making process cannot relationship between the leaders and the followers. He found
be operative in every situation. that task-oriented leaders are more effective in extremely

Three approaches to Contingency theories favorable or unfavorable situations; whereas relationship

oriented leaders perform best in situations with intermediate
1. The Fiedler model of leadership
favorability.
2. Situational theory of leadership

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Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
Fred E. Fiedler’s contingency theory of leadership together to determine how favorable a situation is to a leader.
effectiveness was based on studies of a wide range of group These are:
effectiveness, and concentrated on the relationship between a) Leader-Member Relations
leadership and organizational performance. This is one of the
Is the degree to which the leaders is trusted and liked by the
earliest situation-contingent leadership theories given by
group members, and the willingness of the group members to
Fiedler. According to him, if an organization attempts to
follow the leader’s guidance. It is the degree of confidence,
achieve group effectiveness through leadership, then there is a
trust, and respect the subordinates have in their leader.
need to assess the leader according to an underlying trait,
assess the situation faced by the leader, and construct a proper b) Task Structure
match between the two. Is the degree to which the group’s task has been described as
Fiedler’s Contingency Model structured or unstructured, and has been clearly defined and the
extent to which it can be carried out by detailed instructions.
The theory suggests that, effective groups depend on a proper
match between a leader’s styles of interacting with c) Position Power
subordinates and the degree to which the situation gives control It is the power of the leader by virtue of the organizational
and influence to the leader. position and the degree to which the leader can exercise
Least Preferred Co-Worker (LPC) Questionnaire authority on group members in order to comply with and
accept his direction and leadership. The influence is derived
It is an instrument that purports to measure whether a person is
from one’s formal structural position in the organization;
task, or relationship- oriented
includes power to hire, fire, discipline, promote, and give
Fiedler’s Model: Defining the Situation salary increases.
According to Fiedler, a leader’s behavior is dependent upon the
favorability of the leadership situation. Three factors work
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College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
With the help of these three variables, eight combinations of faction from interpersonal relationships and therefore evaluate
group-task situations were constructed by Fiedler. These their least preferred co- workers in fairly favorable terms.
combinations were used to identify the style of the leader. These leaders think about the task accomplishment only after
the relationship need is well satisfied. On the other hand, the
Leader’s trait
low LPC score leaders derived satisfaction from performance
In order to assess the attitudes of the leader, Fiedler developed
of the task and attainment of objectives and only after tasks
the ‘least preferred co-worker’ (LPC) scale in which the
have been accomplished, these leaders work on establishing
leaders are asked about the person with whom they least like to
good social and interpersonal relationships.
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.

Fiedler states that leaders with high LPC scores are

relationship-oriented and the ones with low scores are task- Figure 1: Correlation between leader’s LPC scores and group

oriented. The high LPC score leaders derived most satis- effectivenesS

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College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
 3. Path Goal Theory of Leadrrship

2. Situational Theory of Leadership Developed by Robert House, path-goal theory extracts

This theory advocates that leadership is strongly affected by elements from the Ohio State leadership research on initiating

the situation from which a leader emerges and in which he structure and consideration and the expectancy theory of

works. It is based on the assumptions that there exists an motivation.

interaction between a group and its leader and that people tend The Theory: The essence of path-goal theory is that it’s the
to follow the person (known as leader) who is capable of leader’s job to provide followers with the information, support,
fulfilling their aspirations. Thus, leader is a means of achieving or other resources necessary for them to achieve their goals.
the goals of the group and the members. The leader recognizes The term path-goal is derived from the belief that, effective
the needs of the situation and then acts accordingly. leaders clarify the path to help their followers get from where

The focus in the situational approach to leadership is on they are to the achievement of their work goals and to make the

observed behavior and not on any hypothetical inborn or journey along the path easier by reducing roadblocks.

acquired ability or potential for leadership. In other words, the Leader Behaviours: House identified four leadership
emphasis is on the behavior of the leaders and their followers behaviours. The directive leader lets followers know what is
and the type of situation. In other words, a person becomes a expected of them, schedules work to be done, and gives
leader not only because of his personal attributes, but also specific guidance as to how to accomplish tasks. The
because of various situational factors and the interactions supportive leader is friendly and shows concern for the needs
between the leader and the group members. of followers. The participative leader consults with followers
and uses their suggestions before making a decision. The
achievement-oriented leader sets challenging goals and
expects followers to perform at their highest level. In contrast

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SRM Institute of Science & Technology, Ramapuram, Ch - 89
to Fiediler, House assumes leaders are flexible and that the complement if follower outcomes are to be maximized. While
same leader can display any or all of these behaviours personal characteristics of the employee determine how the
depending on situation. environment and leader behaviour are interpreted. So the

Contingency Variables and Predictions theory proposes that, leader behaviour will be ineffective when
it is redundant with sources of environmental structure or
incongruent with em- ployee characteristics. For example, the
following are illustrations of predictions based on path-goal
theory:

1. Directive leadership to greater satisfaction when tasks

are ambiguous or stress- ful than when they are highly
structured and well laid out.

2. Supportive leadership results in high employee

performance and satisfaction when employees are performing
structured tasks.
As Exhibit illustrates, path-goal theory proposes two of
3. employees with high perceived ability or with
contingency variables that moderate the leadership behaviour-
considerable experience.
outcome relationship-those in the environment that are out-
side the control of the employee (task structure, the formal 4. Employees with an internal locus of control will be
authority system, and the work group) and those that are part of more satisfied with a participative style.
the personal characteristics of employee (locus of control, 5. Achievement-oriented leadership will increase
experience, and perceived ability). Environmental factors employees’ expectancies that effort will lead to high
determine the type of leader behaviour required as a performance when tasks are ambiguously structured.
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Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
Evaluation: individual personality, by virtue of which he or she is set apart

Due to its complexity, testing path-goal theory has not proven from ordinary people and treated as endowed with

to be easy. A review of the evidence suggests mixed support. supernatural, superhuman, or at least specifically exceptional

As the authors of this review com- mented, “These results powers or qualities. These are not accessible to the ordinary

suggest that either effective leadership does not rest, in the re- person and are regarded as of divine origin or as exemplary,
and on the basis of them the individual concerned is treated as
moval of roadblocks and pitfalls to employee path
a leader.”
instrumentalities as path-goal theories propose or that the
nature of these hindrances is not in accord with the proposition Weber argued that charismatic leadership was one of several
of the theories.” Another review conclusions that the lack of ideal types of authority. The first researcher to consider
support was “shocking and disap- pointing.” These conclusions charismatic leadership in terms of OB was Robert House.
have been challenged by others who argue that adequate tests According to House’s charismatic leadership theory , followers
of the theory have yet to be conducted. Thus, it is safe to say attribute heroic or extraordinary leadership abilities when they
that the jury is still out regarding the validity of path-goal observe certain behaviors.
theory. Because it is so complex to test, that may remain the
A number of studies have attempted to identify the
case for some time to come.
characteristics of charismatic leaders: they have a vision, they
CONTEMPORARY THEORIES OF LEADERSHIP are willing to take personal risks to achieve that vision, they are

1. Charismatic Leaders sensitive to follower needs, and they exhibit extraordinary

behaviors.
2. Transformational leaders

1. CHARISMATIC LEADERSHIP

Max Weber, a sociologist, defined charisma (from the Greek

for “gift”) more than a century ago as “a certain quality of an
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Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
 mediocrity and that transformational leadership leads to
superior performance in organisations facing demands for
renewal and change. He suggested that fostering
transformational leadership through policies of recruitment,
selection, promotion, training and development will pay off in
the health, well-being and effective performance of today’s
organisation.

Managers of the future will continue to face the challenge of a

changing their organisations, primarily because of the
accelerating trend to position organisations to be more
competitive in a global business environment. Therefore,
transformational leadership will probably get increasing
Transactional Leadership :
attention in the leadership research by the behavioural
A transactional leader is one who guides and motivates his scientists.
follows in the direction of established goals by clarifying role
Characteristics of Transactional Leaders
and task requirements. Transactional leadership involves
exchange relationship between the leader and the followers. (i) Contingent Reward : Contracts exchange of rewards for

Traditional theory of leadership, Ohio State Studies, Fielder’s effort, promises rewards for good performance, recognises

model, and Path- Goal theory are all transactional in nature. On accomplishments.

the basis of his research findings, Bass concluded that in many (ii) Management by Exception (Active) : Watches and
instances (such as relying on passive management by searches for deviations from rules and standards, takes
exception), transactional leadership is a prescription for corrective action.

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Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
(iii) Management by Exception (Passive) : Intervenes only (ii) Inspiration : Communicates high expectations, uses
if standards are not met. symbols to focus efforts, and expresses important purposes in

(iv) Laissez Faire : Abdicates responsibilities, avoids simple ways.

making decisions. (iii) Intellectual Stimulation : Promotes intelligence,

2. Transformational Leadership : rationality, and careful problem solving.

(iv) Individualised Consideration : Give personal attention,

Leader who inspires followers to transcend their won self
treats each employee. Individually, coaches, advices.
interests for the good of the organisation, and who is capable of
having a profound and extraordinary, effect on his or her Transformational leadership is built on top of transactional
followers is known as transformational leader. leadership (leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task
For example, Leslie Wexner of the Limited Retail Chain and
requirements). It produces levels of subordinate effort and
Jack Welch at General Electric pay attention to the concerns
performance that go beyond what would occur with a
and developmental needs of individual followers; they change
transactional approach alone. Moreover, transformational
followers’ awareness of issues by helping them to look at old
leadership is more than charisma. “The purely charismatic
problems in new ways; and they are able to excite, arouse and
(Leader) may want followers to adopt the charismatic’s world
inspire followers to put out extra effort to achieve group goals.
view and go no further, the transformational leader who
Thus, transformational leaders are the leaders who provide
attempt to instill in followers the ability to question not only
individualised consideration and intellectual stimulation, and
established views but eventually those established by the
who possess charisma.
leader”.
Characteristics of Transformational Leaders :
The evidence supporting the superiority of transformational
(i) Charisma : Provides vision and sense of mission,
leadership over the transactional variety is overwhelmingly
instills provide, gains respect and trust.
Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
impressive. For instance, a number of studies with U.S. when individuals or groups are allowed considerable autonomy
Canadian, and German military officers found at every level, and discretion in their work decision.
that transformational leaders were evaluated as more effective 2. Explain How the Vision can be Attained : It is not
than their transactional counter parts. enough to articulate an appealing vision; the leader must also
In summary, the overall evidence indicates that convince followers that the vision is feasible. It is important to
transformational leadership is more strongly correlated than make a clear link between the vision and a credible strategy for
transactional leadership with low turnover rates, higher attaining it. This link is easier to establish if the strategy has a
productivity and higher employee satisfaction. few clear themes that are relevant to shared values of
organisation members. Themes provide labels to help people
Guidelines for Transformation Leadership : There are some
understand issues and problems. The number of themes should
tentative guidelines for leaders who seek to inspire and
be large enough to focus attention on key issues, but not so
motivate followers :
large as to cause confusion and dissipate energy. It is seldom
1. Articulate a Clear and Appealing Vision :
necessary to present an elaborate plan with detailed action
Transformational leaders strengthen the existing vision or build
steps.
commitment to a new vision. A clear vision of what the
3. Act Confidently and Optimistically : Followers are
organisation could accomplish or become helps people
not going to have faith in a vision unless the leader
understanding the purpose, objectives and priorities of the
demonstrates self- confidence and conviction. It is important to
organisation. It gives the work meaning, serves as a source of
remain optimistic about the likely success of the group in
self-esteem, and fosters a sense of common purpose. Finally,
attaining its vision, especially in the face of temporary
the vision helps guide the actions and decisions of each
roadblocks and setbacks. A manager’s confidence and
member of the organisation, which is especially important
optimism can be highly contagious. It is best to emphasise
what has been accomplished so far rather than how much more
Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
is yet to be done. It is best to emphasise the positive aspects of better than an earlier team that was successful in performing
the vision rather than the obstacles and dangers that lie ahead. the same type of activity.
Confidence is expressed in both words and actions. Lack of 5. Use Dramatic, Symbolic Actions to Emphasise Key
self-confidence is reflected in tentative, faltering language (for Values :
example, “I guess, may be, hopefully”) and some nonverbal
Concern for a value or objective is demonstrated by the way a
cues (for example, frowns, lack of eye contact, nervous
manager spends time, by resource allocation decisions made
gestures, weak posture).
when there are trade-offs between objectives, by the questions
4. Express Confidence in Followers : The motivating the manager asks, and by what actions the manager rewards.
effect of a vision also depends on the extent to which Dramatic, highly visible actions are an effective way to
subordinates are confident about their ability to achieve it. emphasise key values.
People perform better when a leader has high expectations for
Symbolic actions to achieve an important objective or defend
them and shows confidence in them. There is more need to
an important value are likely to be more influential when the
foster confidence and optimism when the task is very difficult
manager risks substantial personal toss, makes a self-sacrifice,
or dangerous or when team members lack confidence in
or does things that are unconventional. The effect of symbolic
themselves. If appropriate, the leader should remind followers
actions is increased when they become the subject of stories
how they overcame obstacle to achieve an earlier triumph. If
and myths that circulate among members of the organisation
they have never been successful, the leader may be able to
and are retold time and again over the years to new employees.
make an analogy between the present situation and success by
a similar team or organisational unit. Review the specific 6. Lead by Example : According to an old saying, actions
strengths, assets and resources that they can draw on to carry speak louder than words. One way a leader can influence
out the strategy. List the advantages they have relative to subordinate commitment is by setting an example of exemplary
opponents or competitors. Tell them that they are as good as or behaviour in day-to-day interactions with subordinates.

Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
Leading by example is sometimes called “role modeling”. It is UNIT – IV
especially important for actions that are unpleasant, dangerous, TOPIC – 2
unconventional, or controversial. A manager who asks
POWER AND POLITICS
subordinates to observe a particular standard should also
observe the same standard. A manager who asks subordinates INTRODCUTION
to make special sacrifices should set ana example by doing the Study of power is important in the corporate environment.
same. Power depends from person to person and its use depends upon
7. Empower People to Achieve the Vision : the attitude of an individual. Power in public life is different
Empowerment means delegating authority for decisions about than corporate world. While former is situational the later is
how to do the work to individuals and teams. It means asking object oriented. In public life, its promises may or may not
people to determine for themselves the best way is to work as desired. Proper use of power in organization is
implement strategies or attain objectives, rather than telling necessary so that the sources of power is not misused and
them in detail what to do. It means encouraging subordinates to directed towards attainment of organizational goal. It is
suggest solutions to problems if they come to you for help, and important to understand the manager who uses power To
it means supporting subordinates who assume responsibility for understand employee behaviour, because methods of using
resolving problems on their own, even though they do not do it power are different for different managers in the organization.
the same way you would. Empowering also means reducing It is therefore essential to allow minimum power that may be
bureaucratic constraints on how the work is done so that people necessary to maintain peaceful environment. The study to
have more discretion. Finally, empowering means providing understand how power is acquired and used for attainment of
adequate resources for subordinates to carry out a task for organizational goals is essential.
which they are being held accountable. MENAING AND DEFINITION OF POWER
***************************************************
Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
The term power may be used as the capacity to exert influence
over others. Power is a relational phenomenon and may be CHARACTERISTICS OF POWER
defined in a dynamic sense. From organisational point of view,
The following are the characteristics of power :
it may be defined as the degree of influence an individual or
group has in decision making without being authorised by the 1. Specific : Power is specific in the sense that it may be
organisation to do so. “Power is the ability to get things done exercised by some people in some circumstances. Power may
the way one wants them to be done.” not be exercised by all people in all circumstances.

P.M. Blau observes that “Power is an exchange process—a 2. Dependency : The main feature of power is
person who commands services needed by others exchanges dependency. The greater the dependence of one person on you,
them for compliance with his or her request.” R.M. Emerson the greater is the amount of power you can exert on him.
states that “Power is a function of ties of mutual dependence in 3. Expand or Contract : Power is elastic. People who are
social relationships.” From the organisational point of view, habituated to exercise power, may try to acquire more power
power is the ability of one person (or department) to influence and expand it. In some organisations, due to change in position
the behaviour of others in the organisation to bring about of a manager in the organisation, that is, shift from one
desired outcomes for power holders. department to the other may cause contraction in power.
From the above discussions, the following points emerge: 4. Reciprocal Relationship : Power relationships in an
(a) Power is based on two-tier concept of influencing organisation are reciprocal in nature. Power exists due to
others and being influenced. relationship between two or more persons. It is based on two-
way concept of influencing others and being influenced.
(b) Power may be potential or enacted.

(c) Power represents the capacity, ability, etc. to influence

the behaviour of other people. VIEWS OF POWER AND INFLUENCE:
Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
There are different views of power which a manager takes to
increase the power of both managers and their employees. 1.Legitimate Power : Legitimate power comes to the leader
1.Autocratic View of Power : In autocratic view, the power when the organisation’s authority is accepted. It comes from
flows downward, it basically comes from the authoritative the rules of the organisation. For example, managers, teachers,
structure from the management. In autocratic view, someone police, parents etc. have legitimate power only when their
loses and someone gains, as it has fixed amount. authority is accepted in te positions they hold.

2. Participative View of Power : In participative view, 2. Reward Power : Reward power is the present or
the power varies i.e. Power has variable amount. It flows in all potential ability to reward for worthy behaviour. This source of
directions. The power comes from both official and unofficial power depend son the persons have the ability and resources to
channels and applied by activities in a group. reward others. Managers have reward powers like pay
increases, promotions, favourable work assignments, more
TYPES OF POWER OR SOURCES OF POWER
responsibility, praise, recognition.
John French and Bertram Raven have identified the following
3. Coercive Power : This source of power depends on
five sources or types of power which may occur at all levels of
fear. The person with coercive power has the ability to inflict
the organisation :
punishment. The subordinates may do what their superiors
1. Legitimate Power
desire because they fear that the superior will punish them if
2. Reward Power they do not follow the superiors instructions. Coercive power is

3. Coercive Power exercised by the manager against unproductive or disturbing

elements and to restore discipline in the task environment.
4. Expert Power
Coercive power is associated with the ability to assign
5. Referent Power distasteful tasks, without promotions, discriminating

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Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
subordinates by not rewarding them suitably. Managers 5. Referent Power : This type of power comes from the
threaten the employees, when exercising this kind of coercive desire on the past of the other persons to identity with the agent
power, with the job-related punishments such as dismissal, wielding power. They want to identity with the powerful
demotion, reprimand, transfer, and discourage low person regardless of the outcomes e.g. Managers with referent
performance etc. power must be attractive to subordinates so that subordinates
will want to identity with them, regardless of whether the
In an organization, managers have coercive power. The
managers later have the ability to rewarding or punish or
employees have an element of fear of punishment if they do
whether they are legiteriacy. Managers who depends on
not follow the rules, directives, or policies of the organization.
referent power must be personally attractive to subordinates.
It is probably this fear that gets most people to come to work
on time and look busy when the boss walks through the area. In ORGANISATIONAL POLITICS
other words, much of organizational behaviour may be Politics is an integral an unavoidable part of organization. In
explained in terms of coercive power rather than reward power. order to protect self-interest and attain promotion, managers
4. Expert Power : Another source of power identified by need to adopt a number of tactics to gain political power. The
French and Ravea is based on the extent to which others frequently used technique of organizational politics are social
attribute knowledge and expertise on the power seeker. Experts exchange, selective service, control of information,
are perceived to have knowledge and understanding only in identification with higher authority, etc. Managers without
certain well defined areas. The person must really know what basic political skill, will find it difficult to protect self-interest
he is talking about and be able to show tangible evidence of and rise to the top.
this knowledge. It is highly selective and has reputation for
Power vs. Authority :
being honest and straightforward.
Power may be described as the ability of imposing one’s will
on the behaviour of others. According to Baron, “powers refers

Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
to the ability to change or control others behaviour even against 3. Selective Tactics : Selective tactic is an ad-hoc strategy
their will and in the face of resistance from them.” Authority is where the employee extends cooperation selectively to his
different from power. Authority is delegated by the higher supporters.
management to make decision where as power is gained by 4. Control of Information : It is an important technique to
leader on the basis of his personality, activities. yield power. The functioning of an organization depends upon
Tactics Used to Gain Political Power : availability of relevant information. This information can be
withheld, falsified, distorted and so on.
Leaders adopt different tactics to influence others and use
power to meet personal gains over and above organizational 5. Co-operation : It refers to seeking co-operation from those
goals. The frequently used tactics of organizational politics are people who are currently belonging to opposition group.
1. Social Exchanges : It is based on norms of reciprocity. It 6. Power and Status Symbols : The employee tries to
means placing people under one’s obligation and is expected to impress others by attaching symbols which implies power and
return the favour in due course. It can be done by inviting status.
people to parties, doing favours to others, providing financial
Power is the ability to get an individual or group to do
assistance, helping in times of crisis etc.
something - to get the person or group to change in some way.
2. Identification of Authority : Constantly being used The person who possess power has the ability to manipulate or
political technique is to attach oneself with some powerful and change others.
successful person in the organization. Thus, establishing close
Political behaviour is outside one’s specific job requirements.
links with a powerful boss is an effective method of gaining
The behaviour requires some attempt to use one’s power bases.
political power..
Additionally our definition encompasses efforts to influence
the goals, criteria or processes used for decision making when

Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89
we state that politics is concerned with “the distribution of The high self-monitor is more sensitive to cues, exhibit higher
advantages and disadvantages within the organization.” levels of social conformity, and is more likely to be skilled in
political behaviour than in social conformity.
Political behaviour may take Legitimate – illegitimate
dimensions Organisational Factors : Political activity is probably more a
function of the organisation’s characteristics than of individual
Legitimate-political behaviour refers to normal everyday
difference variables, why? Because many organisations have a
politics. On the other hand illegitimate-political behaviour
large number of employees with individual characteristics
violate the implied rules of the game. Those who pursue such
listed, yet the extent of political behaviour varies widely.
extreme activities are often described as individuals who “play
Although, we acknowledge the role that individual differences
hardball”. illegitimate activities include sabotage, whistle
can ply in fostering politicking, evidence more strongly
blowing and symbolic protests such as wearing unorthodox
supports that certain situations and cultures promote politics.
dress or protest buttons and groups or employers
simultaneously calling in sick.

FACTOR INFLUENCING POLITICAL BEHAVIOUR

Individual Factors : Researchers have identified personality

traits, needs and other factors that are likely to be related to
political behaviour.

In terms of traits, we find that employees who are high self-

monitors possess an internal locus of control and need for high
power, and more likely to engage in political behaviour.
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Prepared by
Dr.S.Vijayarani
Associate Professor
College of Management
SRM Institute of Science & Technology, Ramapuram, Ch - 89