CHARACTER FORMATION 2- LEADERSHIP, DECISION MAKING,

MANAGEMENT, AND ADMINISTRATION

TOPIC 1

LEADERSHIP AND MANAGEMENT

DIFFERENCES BETWEEN LEADERSHIP AND MANAGEMENT (Article shared

by: Vicky)

1. Management establishes relationship through authority. This is relationship

between superiors and subordinates within the framework of organization.
Leadership does not require any framework or organization. Management
needs formal organized groups leadership does not require any such groups.
Informal groups can be led not managed. Anyone can follow leader. There are
no juniors or seniors among followers. But in management juniors have to follow
seniors.
2. Management expects managers to be rational decision makers while
leadership vent on moods and expectations of the followers. Leadership has
emotional appeal while management does not have such appeal rather it acts on
rationality.
3. All leaders are not managers and all managers are not leaders. Managers
direct subordinates by virtue of authority vested in them while leaders have no
such formal authority vested in them; rather they derive power from their
followers. Leaders use this power to guide, direct and influence people.
4. Managers have formal authority to reward the employees with promotion or
transfer them or demote them if they erred. But leaders have no such authority.
Leaders with people’s power try to satisfy their social needs and ego.
5. Management tries to accomplish organizational objectives. Leadership tries to
accomplish people’s hopes, aspirations and expectations.
6. Management is the process of planning, organizing, actuating and controlling
the activities of others to attain organisational objectives. Leadership on the other
hand is a process of influencing the behaviour of people to attain their
shared goals.
7. According to Peter Drucker, “Management is doing things right, Leadership is
doing right things. Management’s efficiency lies in climbing the ladder of success;
leadership determines whether the ladder is leaning against the right wall.”
8. Management is accountable for its behaviour in clearly defined way but
leadership is not so accountable in clearly defined manner.
9. Leadership qualities for management are supposed to be essential and
added advantage but for leadership managerial qualities are not essential at all.
10. Management requires policies and procedures to direct people for attainment
of goals of the organisation.

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Leadership achieves goals through actions by the people.
So far as human resource management is concerned this distinction between
management and leadership is of meager importance. Truly speaking every manager at
each level of his hierarchy must possess leadership qualities to put better performance
of himself and of his subordinates. A successful manager must possess both the qualities
i.e. of managerial and leadership. In reality managerial behaviour contains the traits of
leadership. So management and leadership cannot be separated.
The distinction between them has academic value only. In modern times managing
the people at work effectively managerial leadership is required. This will also lead to
organisational effectiveness. Managerial leadership is very effective in implementing
change in the organization. An executive leader succeeds easily in convincing the
employees for adopting any kind of change the management wanted to implement for the
overall development of organization.

In its Relationship
Management implies superior-subordinate relationship within a formal
organisation. On the other hand, leadership can exist with or without formal organisation.
The followers of a leader are not necessarily his juniors or subordinates. They may be the
leader’s peers, associates and even seniors.
In its Sources of Influence
A manager obtains authority from his position. He uses his formal authority to
influence the behaviour of his subordinates. But a leader derives his power from his
followers who accept him as their leader. A leader utilizes this power to influence the
attitude and behaviour of his followers.
In its Accountability
A manager is accountable for his own behaviour as well as for the job behaviour
of his subordinates. His accountability for performance is clearly defined. But there is no
clear-cut accountability in leadership. A manager has to achieve the organizational goals,
but, a leader is more concerned with the group goals and the satisfaction of the followers.
In its Basis of Following
Both the managers and the leaders have followers. But the people follow them for
different reasons. People follow a manager because they are required to follow by the job
description supported by a system of rewards and penalties. On the other hand, people
follow a leader on voluntary basis. A manager may continue in office so long as his
performance is considered to be satisfactory, whereas a leader can survive as long as
the followers accept him.
In its Functions
A manager has to perform the functions of planning, organising, directing,
motivating, coordinating and controlling. But the main job of a leader is to guide and
inspire the efforts of his followers. Leadership is one aspect of directing.
All managers should have the quality of leadership, but leadership may exist
without being a manager. The managers formulate broad policies to guide the operations
of the enterprise. And, leadership initiates the actions for implementation of the objectives
of the enterprise.
“A leader need not be a manager, but a manager must have many of the qualities
of a good leader”. This statement has two features:

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 Firstly, a leader need not be appointed or elected. He can be successful if
people accept his leadership whole-hardheartedly.
Secondly, a manager can become more successful if he possesses the quality of
leadership.

DIFFERENCE BETWEEN MANAGER-SHIP AND LEADERSHIP (article shared by:

Raksha talathi)
Manager-Ship
1. Manager-ship is a wider concept; including leadership i.e. every manager is
leader.
2. Manager-ship is applicable to only formal groups i.e. there are no managers in
informal or unorganized groups.
3. A manager operates on the basis of his formal authority; which may or may not
be coupled with his power over the group.
4. Manager-ship is more significant and rather imperative, in the context of
business enterprises and other forms of organised endeavour.
5. A manager is primarily concerned with shaping or moulding behaviour of
subordinates towards the attainment of common objectives.
6. A manager makes a formal appeal to subordinates.
7. In management, the relationship between the manager and operators is that of
superior and subordinates.
8. A manager deals with an organisation which is both – technical and human.
9. A manager is a boss; and pusher of people.
Leadership
1. Leadership is a narrower concept; as every leader may or may not be a
manager. For example, Gandhiji was a leader; but not a manager.
2. Leadership is found in both formal and informal groups.
3. A leaders operates basically, by virtue of, his power possessed through his
charisma and personal qualities. His formal authority is of little use and impact.
4. Leadership is specially required in political organisations, government
administration and military organisation.
5. A leader is concerned with inspiring followers through creation zeal and
enthusiasm in them towards the attainment of common objectives.
6. A leaders makes an emotional appeal to followers.
7. In the leadership terminology, the head and his workers are called the leader
and the followers.
8. A leader deals primarily with a human organisation.
9. A leader is a friend, and a puller of his followers.

LEADERSHIP STYLES
Before we delve into describing leadership styles, it would be proper to distinguish
between types of leaders and styles of leadership. Type of leader is determined and
identified by the “personality” displayed by the leader in terms of core trait along with other
traits and personal qualities being displayed and used to gain the trust of the people and
lead them to commit to undertake the major task facing the organization.

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 On the other hand, “style” of leadership is defined and identified by the
competencies and skills that the leader “applies” to guide facilitate and support the people
of the organization in their efforts to accomplish the task.
Leadership style reflects a leader’s decision-making behaviour. It is the result of the
philosophy, personality and experience of the leader. Leadership style refers to how
decisions are made to providing direction, implementing plans, and motivating people.

TYPES OF LEADERSHIP STYLES

Three major leadership styles are:
1. Authoritarian or Autocratic
2. Participative or Democratic
3. Free-rein or Delegate

1. AUTHORITARIAN STYLE
When the leaders tell their subordinates/followers at their own what work they want
to get done, and how – it is known as authoritarian or autocratic leadership style. It works
well if the leader is competent and knowledgeable enough to decide about each and every
thing. All decision-making powers are centralized in the leader, as with autocratic leaders.
No suggestions or initiatives from subordinates are acceptable. Authoritarian or autocratic
leadership does not mean using foul language and leading by threats. This unprofessional
style is known as “bossing people around”.
This style should be used only when the leader has all the information and is short
of time and the employees are well motivated. If the leader wants to gain greater
commitment and motivate his subordinates, then it should be used very rarely.

2. PARTICIPATIVE STYLE

In the authoritarian style the leader used to say – “I want you to….”, but in
Participative style the leader says – “let us work together to solve this problem”. A
Participative Leader, rather than taking autocratic decisions, seeks to involve other people
including subordinates, peers, superiors and other stakeholders in the process. Here the
leader takes his subordinates into confidence about what to do and how to do, but the
final authority vests in the leader. This style can be divided into two – one, where leader
consults, and two, where decision is taken through consensus. Use of this style by a
leader is not a sign of weakness. It is the strength, your subordinates will respect. This
style is used when the employees are knowledgeable and skilful. This style is also known
as consultative, empowerment, joint decision-making, democratic leadership,
Management by Objective (MBO) and power-sharing. It helps in ascertaining and
identifying future leaders among the subordinates. Also, it keeps a team’s spirit and
morale high, as the team members feel that their opinions are valued by their leader.
To illustrate, an advertising manager approaches his subordinates on how to
promote a particular product of a company. The team members brain storm over the
issue, some suggest print media and others suggest electronic media. The Participative
leader takes all these suggestions, and makes a decision after weighing their pros and
cons.

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 3. FREE-REIN LEADERSHIP STYLE

In this style the leader says – “you take care of the problem”. Final responsibility
always remains with the leader. A free-rein leader does not lead, but leaves the group
entirely to itself. Such a leader allows maximum freedom to subordinates, i.e., they are
given a free hand in deciding their own policies and methods. It is used when the leader
has full trust and confidence in the abilities of his subordinates. Since a leader cannot do
everything. He prioritises the work and delegates certain tasks. This style may be used
but with caution. This style is also known as laissez faire (non-interference in the affairs
of others).
To illustrate, a manager has newly joined a firm. He is still learning how various
things move in the organization. In such a situation, he relies on the suggestions and
opinions of his team members and lets them do the things the way they are used to, till
the time he is able to gain sufficient knowledge and can suggest some more feasible
changes.
Forces influencing the Styles:
1. Availability of time
2. Relationships between leader and subordinates (based on trust or on
disrespect?)
3. The information is with whom (the leader, employees or both? If the leader
knows the problem but does not have all the information – use participative style)
4. How well the leader knows the task and employees well versed? (Use
participative style if the employees know the job well)
5. Internal Conflicts
6. Levels of stress
7. Type of task (structured, unstructured, complicated or simple?)
8. Systems and procedures (are they well established?)
9. If an employee is just learning the job – use authoritarian style, and if employees
know more than the leader about the job use free-rein style)
Managerial Grid
The Managerial Grid, a behavioural leadership model, has been developed by
Robert R. Blake and Jane Mouton. This model originally identified five different leadership
styles based on the concern for people and the concern for production. The optimal
leadership style in this model is based on Theory Y of motivation.
The model is represented as a grid with concern for production (on the X-axis) and
concern for people (on the Y-axis); each axis ranges from 1 (Low) to 9 (High). The
resulting leadership styles are as follows:

a. The indifferent (also called as impoverished) style

Evade and elude or low production/low people. In this style, managers have low
concern for both people and production. This leader is mostly ineffective. Managers use
this style to preserve job and job seniority, protecting themselves by avoiding getting into
trouble.
The main concern for the manager is not to be held responsible for any mistakes, which
results in less innovative decisions. The leader has no regard for either work or people.

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b. The accommodating (also called as country club) style
Yield and comply or high people/low production. This style has a high concern for
people and a low concern for production. Managers using this style are more concerned
about needs and feelings to the security and comfort of the employees, in hopes that this
will increase performance. The resulting atmosphere is usually friendly, but not
necessarily very productive due to lack of direction and control.

c. The dictatorial (also called as produce or perish) style

Control and dominate or high production/low people. With a high concern for
production, and a low concern for people, managers using this style find employee needs
unimportant; they provide their employees with money and expect performance in return.
Managers using this style also pressure their employees through rules and punishments
to achieve the company goals. This dictatorial style is based on Theory X of Douglas
McGregor, and is commonly applied by companies on the edge of real or perceived
failure. This style is often used in cases of crisis management.
d. The status quo (also called as middle-of-the-road) style
Balance and compromise or medium production/medium people. Managers using
this style try to balance between company goals and workers’ needs. By giving some
concern to both people and production, managers who use this style settle for average
performance and often believe that this is the most anyone can expect.
e. The sound (also called as team style)
Contribute and commit or high production/high people. In this style, high concern
is paid both to people and production. As suggested by the propositions of Theory Y,
managers choosing to use this style encourage teamwork and commitment among
employees. This method relies heavily on making employees feel themselves to be
constructive parts of the company.
The grid has been evolving continuously. It has added two more leadership styles -the
paternalistic style: prescribe and guide (alternates between the (1,9) and (9,1) locations
on the grid- managers using this style praise and support, but discourage challenges to
their thinking ) and Opportunistic style: exploit and manipulate(does not have a fixed
location on the grid- leaders adopt whichever behaviour offers the greatest personal
benefit). These styles were added to the grid theory before 1999.

MANAGEMENT STYLES (article of ivan andreev, 2022)

A management style refers to the specific methods and approaches a manager uses to
achieve their objectives. This includes how a manager plans, organizes, makes decisions,
delegates tasks, and oversees their team.
The style can differ greatly based on factors such as the type of company, the manager’s
level within the organization, the industry, the country, and cultural influences, as well as
individual traits of the manager.
An effective manager is capable of adapting their management style to suit varying
circumstances while maintaining a clear focus on reaching goals.
Both internal and external factors influence management styles.

Internal factors include:

• The overall organizational and corporate culture of the company,

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 • policies,
• priorities,
• employee engagement,
• employee skill levels.
In general, the higher-skilled employee does not need as much supervision, while less
skilled employee will require more monitoring to consistently achieve their objectives.

External factors include:

• employment laws,
• the economy,
• competitors,
• suppliers,
• consumers.
These are factors that are outside of the control of the organization, but will have an effect
on both managers and employees.

EFFECTIVE MANAGEMENT STYLES: HOW TO INSPIRE AND MOTIVATE YOUR

TEAM

1. DEMOCRATIC MANAGEMENT STYLE

Imagine walking into a meeting where everyone’s voice matters. That’s the essence of
democratic management.
As a manager, you open the floor to your team, encouraging them to share their ideas
and opinions. This inclusive approach doesn’t just make your team feel valued; it sparks
creativity and fosters a sense of ownership.
Sure, it might take a bit longer to reach a decision, but the benefits far outweigh the
drawbacks. Your team becomes more engaged and motivated, ready to tackle challenges
with a collective mindset.
Pros:
• Increases employee engagement: Employees feel valued and heard.
• Promotes creativity: Diverse perspectives lead to innovative solutions.
• Fosters a sense of ownership: Team members are more committed to decisions
they helped make.
Cons:
• Time-consuming: Decision-making can be slower.
• Decision paralysis: Too many opinions can stall progress.

2. TRANSFORMATIONAL MANAGEMENT STYLE

Picture a leader who not only sets high expectations but also inspires you to exceed them.
Transformational managers are like the coaches of a championship team. They lead by
example, constantly motivating their employees to grow and develop.
The result? A highly innovative and energized workforce.
This style demands a lot from managers – high emotional intelligence and constant
attention to team dynamics – but the payoff is immense. Employees thrive under such
leadership, driven by a shared vision and a sense of purpose.

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Pros:
• Drives innovation: Employees are encouraged to think outside the box.
• Enhances employee morale: A shared vision boosts team spirit.
• Leads to higher performance: Motivated employees often exceed expectations.
Cons:
• Demanding for managers: Requires significant emotional and time investment.
• High expectations: Can be overwhelming for some employees.

3. COACHING MANAGEMENT STYLE

Think of a manager who acts as a mentor, guiding you through your professional journey.
Coaching management is all about development. These managers provide continuous
feedback and support, helping their employees build skills and confidence.
It’s like having a personal trainer at work – someone who pushes you to be your best.
The time investment is significant, and it requires managers to be adept at mentoring, but
the rewards are clear.
Employees become more competent, satisfied with their growth, and build strong, trusting
relationships with their leaders.
Pros:
• Improves employee skills: Continuous learning and development.
• Increases job satisfaction: Employees appreciate the support and guidance.
• Builds strong relationships: Trust between manager and employee is
strengthened.
Cons:
• Time-intensive: Requires significant time commitment.
• Requires skilled managers: Not all managers are natural mentors.

4. LAISSEZ-FAIRE MANAGEMENT STYLE

Imagine having the freedom to make your own decisions and carry out your tasks with
minimal interference.
Laissez-faire management gives employees autonomy, fostering an environment of
independent thinking and innovation.
This style works best with self-motivated and skilled team members who thrive on
independence.
However, without proper guidance, it can lead to a lack of direction and inconsistent
performance. It’s a balancing act – offering freedom while ensuring alignment with the
team’s goals.
Pros:
• Encourages independent thinking: Employees develop their problem-solving skills.
• Fosters innovation: Freedom to explore new ideas.
• Increases job satisfaction: Autonomy boosts morale.
Cons:
• Lack of direction: Can lead to confusion if not managed well.
• Inconsistent performance: Without oversight, results may vary.

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 5. SERVANT LEADERSHIP STYLE
Picture a leader whose primary focus is on your well-being and development.
Servant leaders prioritize their team’s needs, acting more as facilitators than directors.
This approach builds trust and loyalty, creating a supportive work environment where
employees feel genuinely cared for. It’s a powerful way to enhance team cohesion and
morale.
However, it’s crucial to balance this style with business objectives to avoid the perception
of weak leadership.
Pros:
• Builds trust: Employees feel valued and supported.
• Enhances loyalty: Employees are more committed to a leader who prioritizes their
needs.
• Creates a supportive environment: Fosters teamwork and collaboration.

Cons:
• May be perceived as weak: Balancing support with authority is key.
• Can be challenging to balance: Ensuring business goals are met while focusing on
individual needs.

6. MICROMANAGEMENT
Picture a manager who oversees every tiny detail of your work.
Micromanagement can ensure tasks are done to specific standards, but it creates
immense stress and reduces employee autonomy.
Constant supervision can be suffocating, leading to decreased productivity and job
satisfaction. Employees often feel distrusted and frustrated, which ultimately hampers
overall performance.
Pros:
• Ensures quality: Tasks are completed to specific standards.
Cons:
• Creates stress: Overbearing oversight.
• Reduces autonomy: Employees feel restricted.
• Decreases productivity: Lower morale and motivation.

7. TRANSACTIONAL MANAGEMENT STYLE

Think of a system where rewards and punishments govern performance.
Transactional management focuses on routine tasks and measurable performance,
providing a clear structure.
While this can be effective for straightforward tasks, it limits innovation and intrinsic
motivation.
The work environment can become rigid and uninspired, as employees focus on rewards
rather than personal or team growth.
Pros:
• Clear structure: Employees know what is expected.
• Easy to measure performance: Rewards and punishments are straightforward.
Cons:
• Limits innovation: Focus on routine tasks.

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 • Reduces intrinsic motivation: Employees work for rewards, not passion.
• Rigid work environment: Lack of flexibility and creativity.
8. BUREAUCRATIC MANAGEMENT STYLE
Imagine an organization bogged down by rules, procedures, and hierarchy.
Bureaucratic management ensures consistency and reduces ambiguity, but it also slows
down decision-making and stifles creativity.
This style can lead to a disengaged workforce, as employees feel restricted by the rigid
framework. Innovation and flexibility take a backseat, making it difficult to adapt to
changing circumstances.
Pros:
• Ensures consistency: Clear rules and procedures.
• Reduces ambiguity: Defined roles and responsibilities.
Cons:
• Slows decision-making: Excessive adherence to rules.
• Stifles creativity: Limited flexibility.
• Disengaged workforce: Employees feel restricted.
While some management styles can inspire and motivate your team, others can have the
opposite effect, leading to disengagement and low morale.
It’s essential to recognize these detrimental styles and steer clear of them to maintain a
healthy, productive workplace. Let’s delve into the management styles you should avoid
to keep your team thriving.

9. AUTOCRATIC MANAGEMENT STYLE

Imagine a workplace where all decisions come from the top, with little to no input from the
team.
Autocratic management might ensure quick decision-making and clear direction, but it
often stifles creativity and reduces employee morale.
This style can lead to high turnover rates as employees feel undervalued and disengaged.
It’s a rigid approach that may work in crisis situations but is generally detrimental to a
motivated and innovative team.

Pros:
• Quick decision-making: Efficient in urgent situations.
• Clear direction: No ambiguity in instructions.
Cons:
• Stifles creativity: Limits input from employees.
• Reduces morale: Employees feel undervalued.
• High turnover rates: Dissatisfaction leads to higher attrition.

10. HANDS-OFF MANAGEMENT STYLE (ABSENTEEISM)

Picture a manager who is rarely present, providing little direction or support.
Hands-off management can lead to confusion and a lack of guidance. Without proper
leadership, teams struggle with cohesion and performance.
This approach offers no significant benefits in a business context and can severely impact
the overall productivity and morale of the team.

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Pros:
• None significant in a business context.
Cons:
• Leads to confusion: Lack of direction.
• Lack of guidance: Employees feel unsupported.
• Decreases team cohesion and performance: Poor leadership impact.

11. CONFLICT MANAGEMENT STYLES

Conflict management is an important aspect to consider when hiring a manager, and it is
different from the general management style.
There is no correlation between management styles and conflict management styles –
although a skilled manager should be able to switch conflict management styles
depending on the situation, just as they should be able to adjust their general
management style.

1. Avoiding Conflict Style – “you lose, I lose”

2. Accommodating Conflict Style - you win, I lose
3. Forcing Conflict Style - you lose, I win
4. Negotiating Conflict Style - you win some, I win some
5. Collaborating Conflict Style - you win, I win

HOW TO IMPLEMENT EFFECTIVE MANAGEMENT STYLES: PRACTICAL

STRATEGIES FOR MANAGERS
Implementing effective management styles requires a conscious effort to
understand your team’s needs and the environment in which you operate. Here are some
general strategies to help you apply these styles successfully:

a. Foster open communication

b. Set clear goals and expectations
c. Invest in training and development
d. Promote autonomy and accountability
e. Prioritize employee well-being

LEADERSHIP: CHARACTERISTICS, IMPORTANCE, PRINCIPLES, TYPES, AND

ISSUES REGARDING LEADERSHIP (Article Shared By : Smriti Chand)

To get the work done through people, leadership is at the core of managing.
Managers can get the work done either by the authority vested in them or by winning
support, trust and confidence of the people.
To secure better performance and results from people in 21 century, a manager
has to increase his influence more over them. And to do so, leadership is the answer.
Leadership is an art whereby an individual influences a group of individuals for
achieving a common set of goals. To expand it further, leadership is a process of inter-
personal relationships through which a person attempts to influence the behaviour of
others for attainment of pre-determined objectives. Of the various people, who have
defined leadership, influence and attainment of objectives are the common denominators.

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CHARACTERISTICS OF LEADERSHIP
On the basis of an analysis of different definitions, following characteristics of
leadership emerge:
1. Leadership is a process of Influence
Influence is the ability of an individual to change the behaviour, attitude, and belief
of another individual directly or indirectly. Someone has rightly defined leaderships
as the “process of social influence in which one person can enlist the aid and
support of others in the accomplishment of a common task”.
2. Leadership is not one-dimensional
The Essence of leadership is Followership. Leadership is a systems thinking in
multiple dimensions. In terms of systems thinking, the organizational performers
(followers) are must in the leadership process. Without followers there can be no
leadership.
3. Leadership is Multi-faceted
Leadership is a combination of personality and tangible skills (drive, integrity, self-
confidence, attractive personality, decisiveness, etc), styles (Authoritarian to
laissez-faire), and situational factors (organisation’s internal and external
environment, objectives, tasks, resources, and cultural values of leaders and the
followers).
4. Leadership is Goal oriented
Leadership is “organizing a group of people to achieve a common goal.” Thus, the
influence concerns the goals only. Outside the goals, the concerns are not related
to leadership.
5. Leadership is not primarily a Particular Personality Trait
A trait closely linked to leadership is charisma, but many people who have
charisma (for example, movie actors and sports heroes) are not leaders.
6. Leadership is not primarily a Formal Position
There have been many great leaders who did not hold high positions—for
example, Mahatma Gandhi, Martin Luther King, Jr. and—and Anna Hazare . On
the other hand there are people who hold high positions but are not leaders.
7. Leadership is not primarily a Set of Important Objectives
It involves getting things done.
8. Leadership is not primarily a Set of Behaviours
Many leadership manuals suggest that leadership involves doing things such as
delegating and providing inspiration and vision; but people who are not leaders
can do these things, and some effective leaders don’t do them at all.

IMPORTANCE OF LEADERSHIP
Leadership is an important function of management which facilitates to maximize
efficiency and effectiveness to achieve organizational goals. Leadership has paramount
importance in present competitive business environment, because with the help of
leadership a company will face all the problems very efficiently.
1. Guides and Inspires Subordinates
2. Secures Cooperation
3. Creates Confidence
4. Builds Work Environment

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 5. Maintains Discipline
6. Facilitates Integration of Organisational and Personal Goals
7. Works as a Change Agent
8. Boosts Morale

PRINCIPLES OF LEADERSHIP
To help you be, know, and do, follow these eleven principles of leadership:
1. Know Yourself and Seek Self-Improvement
2. Be Technically Proficient
3. Seek responsibility and take responsibility for your actions
4. Make sound and timely decisions
5. Set the example
6. Know your people and look out for their well-being
7. Keep your workers informed
8. Develop a sense of responsibility in your workers
9. Ensure that tasks are understood, supervised, and accomplished
10. Train as a team
11. Use the full capabilities of your organization

TYPES OF LEADERSHIP

1. BUREAUCRATIC LEADERSHIP

Bureaucratic leadership follows a close set of standards. Everything is done in

an exact, specific way to ensure safety and/or accuracy. One will often find this
leadership role in a situation where the work environment is dangerous and
specific sets of procedures are necessary to ensure safety.
A natural bureaucratic leader will tend to create detailed instructions for other
members of a group. The bureaucratic leadership style is based on following
normative rules and adhering to lines of authority

2. CHARISMATIC LEADERSHIP

“Charismatic leadership emphasises primarily the magnetic personality and

behaviour of leaders and their effects on followers, organizations, and society.
Sociologists, political historians, and political scientists have widely accepted the
theory of charismatic leadership originally advanced by Weber (1947). Charisma
is regarded as of divine origin or as exemplary, and on the basis of them the
individual concerned is treated as a leader.
Mahatma Gandhi, Jawaharlal Nehru, Indira Gandhi, Lai Bahadur Shashtri,
and Mother Teresa were charismatic leaders. Charismatic leaders inspire via
persona, reputation, and communications and also show courage, competence,
and idealistic vision.
Late President John F Kennedy and his look-alike Fmr. President Bill
Clinton have often been called “The most charismatic leaders of 20th century”

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 Another good example would be Adolf Hitler, who rose from a “Bohemian corporal”
to “Herr Fuhrer” due to his ability to captivate people into following him.

3. VISIONARY LEADERSHIP

A visionary leader perceives challenges and growth opportunities before

they happen, positioning people to produce extraordinary results that make real
contributions to life. Some of the visionary leaders include – Dalai Lama (for his
ability to incorporate new ideas into his traditional framework while being a
messenger for peace and enlightenment for the world), Mahatma Gandhi and
Nelson Mandela (for his courage and conviction and perseverance against all odds
to free and unite people for justice), and President Obama (for his ability to
galvanize and inspire people with the vision that we can transform our
consciousness & world). The list is endless.

4. STRATEGIC LEADERSHIP

Strategic leadership refers to a manger’s potential to express a strategic

vision for the organization, and to motivate and persuade others to acquire that
vision.
Strategic leadership can also be defined as utilizing strategy in the management
of employees. It is the potential to influence organizational members and to
execute organizational change. Strategic leaders create organizational structure,
allocate resources and express strategic vision.
Thus, this type of leadership relates to the role of top management. Strategic
leaders work in an ambiguous environment on very difficult issues that influence
and are influenced by occasions and organizations external to their own.
The main objective of strategic leadership is strategic productivity. Another aim of
strategic leadership is to develop an environment in which employees forecast the
organization’s needs in context of their own job. Strategic leaders encourage the
employees in an organization to follow their own ideas.
Strategic leaders make greater use of reward and incentive system for
encouraging productive and quality employees to show much better performance
for their organization. Functional strategic leadership is about inventiveness,
perception, and planning to assist an individual in realizing his objectives and
goals.

5. SERVANT LEADERSHIP

The term “Servant Leadership” was coined by Robert K. Greenleaf in The

Servant as Leader, an essay that he first published in 1970. Leaders have a
responsibility towards society and those who are disadvantaged. People who want
to help others best do this by leading them. The servant-leader is servant first and
leader next.
The servant leader serves others, rather than others serving the leader. Serving
others thus comes by helping them to achieve and improve. Famous examples of

CHARACTER FORMATION 2 14
 servant leaders include George Washington (America), Gandhi (India), and Cesar
Chavez (Venezuela).

6. SUBSTITUTES FOR LEADERSHIP

The term has been brought to light by Kerr and Jermier in 1978. According
to them there are aspects of the work setting and the people involved that can
reduce the need for a leader’s personal involvement, because leadership is
already provided from within. The term substitutes mean the situation where leader
behaviours are replaced by characteristics of subordinates, the task at hand, and
the organisation.

7. TRANSACTIONAL AND TRANSFORMATIONAL LEADERSHIP

Transactional leadership is based upon the assumptions that people are
motivated by reward and punishment (Rational Man), social systems work best
with a clear chain of command, when people have agreed to do a job, a part of the
deal is that they cede all authority to their manager, and the basic purpose of a
subordinate is to do what their manager tells them to do.
The style of a transactional leader is that he works through creating clear
structures whereby it is made clear as to what is required of subordinates and the
rewards that they get for following orders. Punishments are not always mentioned,
but they are also well- understood and formal systems of discipline are usually in
place.
To begin with, Transactional Leadership negotiates the contract whereby
the subordinate is given a salary and other benefits, and the company gets
authority over the subordinate.
While the leader allocates work to a subordinate, they are considered to be
fully responsible for it, whether or not they have the resources or capability to carry
it out.
When things go wrong, then the subordinate is considered to be personally at fault,
and is punished for their failure (just as they are rewarded for succeeding).
The leader often uses management by exception, working on the principle
that if something is operating to defined (and hence expected) performance then
it does not need attention. Exceptions to expectation require praise and reward for
exceeding expectation, whilst some kind of corrective action is applied for
performance below expectation.
In management versus leadership spectrum, it is more towards the
management end. Transactional leadership is based in contingency, in that reward
or punishment is contingent upon performance.
Transactional Leadership is still a popular approach with many managers,
despite its limitation of ignoring complex emotional factors and social values.
When the demand for a skill outstrips the supply, then Transactional Leadership
often is insufficient. Transformational leadership is the answer. It “recognizes and
exploits an existing need or demand of a potential follower… (And) looks for
potential motives in followers, seeks to satisfy higher needs, and engages the full
person of the follower”

CHARACTER FORMATION 2 15
 Transformational leadership is based upon the assumptions that people will
follow a person who inspires them, a person with vision and passion can achieve
great things, and the way to get things done is by injecting enthusiasm and energy.
These leaders are focused on the performance of group members, but also want
each person to fulfil his or her potential. Leaders with this style often have high
ethical and moral standards.
Transformational Leadership starts with the development of a vision. This
vision may be developed by the leader, by the senior team or may emerge from a
broad series of discussions. The next step is to constantly sell the vision. While
doing so, he must create trust and personal integrity. Along with selling, the leader
finds the way forward.
And finally, transformation leaders remain upfront and central during the action and
visible – constantly doing the rounds, listening, soothing and enthusing.
Transformational Leader seeks to infect and reinfect their followers with a
high level of commitment to the vision. They are people- oriented and believe that
success comes first and last through deep and sustained commitment.
Transformational Leaders are often charismatic, but are not as narcissistic as pure
Charismatic Leaders, who succeed through a belief in themselves rather than a
belief in others.
Whilst the Transformational Leader seeks overtly to transform the organization,
there is also a tacit promise to followers that they also will be transformed in some
way
One of the traps of Transformational Leadership is that passion and confidence
can easily be mistaken for truth and reality. Paradoxically, the energy that gets
people going can also cause them to give up.
Transformational Leaders also tend to see the big picture, but not the details,
where the devil often lurks. If they do not have people to take care of this level of
information, then they are usually doomed to fail.
Finally, transformational leaders, by definition, seek to transform. When the
organization does not need transforming and people are happy as they are, then
such a leader will be frustrated.
It is important for the follower to understand the difference between Charismatic
Leaders and Transformational Leaders. They both are Inspiring and both have a
Vision and both are not as caring about people as followers might want them to
be.
Charismatic Leaders are Inspiring in order to lead for their own purpose which may
or may not benefit the organization or people. “It’s all about me.” Transformational
Leaders are inspiring in order to support a shared vision of improvement for the
organization and its people.
“It’s all about the organization.” The visions of transformational Leaders are
practical and achievable in order to improve organization. Transformational
Leaders often “downsize” the work force to improve the organization.
Transformational Leaders often “downsize” the work force to improve
organizational efficiency for the good of the organization. On the other hand,
Charismatic Leaders abuse or fire persons who do not agree with them, or who

CHARACTER FORMATION 2 16
 question their vision or otherwise inhibit their personal accomplishment as Leaders
improve organizational efficiency for the good of the organization.
On the other hand, Charismatic Leaders abuse or fire persons who do not agree
with them, or who question their vision or otherwise inhibit their personal
accomplishment as Leaders
To conclude, transformational and transactional leadership are not opposite to
each other, rather they are complementary. A great transformational leader has to
be a great transactional leader as well.

CONTEMPORARY LEADERSHIP ISSUES

Leadership is probably the single most subject in management getting the most
attention of business leaders. Some of the current issues relating to leadership
development are as under;
1. Emotional Intelligence
2. Gender and Leadership
3. Cross-cultural Leadership
4. Building Trust

FOUR PRIMARY FACTORS OF LEADERSHIP

(U.S. Army, 1983)

1. Leader

An individual appointed as a leader must understand himself honestly, what he

knows and what he can do. Take note that it is the followers that decide whether the
leader is successful, not the leader or anyone else. lf they don't trust their leader, or lack
confidence, they l be uninspired. To be successful you have to persuade your followers
that you are worthy of being followed, not yourself or your superiors.

CHARACTER FORMATION 2 17
2. Followers

Different people expect different leadership styles A newly-employed deserves more

supervision than an accomplished subordinate does. An individual without motivation
needs a different approach than one with high motivation level. You have to know your
people, as a leader. The basic starting point is to have a clear understanding of human
nature such as needs, feelings and motivation. You have to come to learn the be, know
and do qualities of your people.

5 TYPES OF FOLLOWERS

a. passive- low in critical thinking & involvement

b. conformist- high involvement, low critical thinking
c. effective- high in critical thinking & involvement
d. alienated- low involvement, high in critical thinking
e. Pragmatic- exhibit little styles from the styles depending on what style is fit to the
situation.

3. Communication

Being a leader, you lead by bidirectional communication. A great deal of that is

nonverbal. For example, when you "set an example," that shows your people you wouldn't
ask them to do something you wouldn’t want to do. What and how you interact either
strengthens or destroys your relationship with your followers.

Role of Communication to leadership - effective leadership requires good

communication skills w/in organization & its stakeholders

Factors/qualities in Communication:

• Clarity-clear and simple

• Personification -2nd person approach (direct approach)
• Transparency - openness
• Listening- the use of empathy
• Feedback- verification of message
• Inspiration- achieving goals with the help of the team

Communication Skills for Leaders

1. Active Listening - involves focus, comprehension, & valuable response

2. Storytelling - making connections through delivering value propositions
3. Adaptability - flexibility to situations

CHARACTER FORMATION 2 18
4. Motivation - inspiring the team through communication
5. Open-mindedness - considering others opinion and ideas or beliefs
6. Empathy - putting yourself in the shoes of others
7. Delegation - assigning of task based on expectation
8. Positivity - speaking & acting positively
9. Awareness - awareness on body language, reactions, & facial expressions
10. Non-verbal communication- communicating through body language, facial
expressions, and actions.

Methods of Sending Messages

1. Oral Communication
• Face to Face
• Meeting
• Presentation
• Telephone

2. Written Communication
Memorandum

• Letter
• Report
• Bulletin Board, Poster, Newsletter

4. Situation

Every situation is different. Everything you do in one situation isn't automatically going
to work in another. You have to use your discretion to determine the best course of action
and the style of leadership needed for each situation. You may need to face a subordinate
for inappropriate behavior, for example, but if the confrontation is too late or too early, too
harsh or too mild, then the outcomes may prove ineffective.

Take note also that the disorder typically affects a leader's actions more than its
characteristics. This is because while traits can be impressively stable over a period of
time, they have little consistency in situations (Mischel, 1968).

LEADERSHIP THEORIES (Article by: Tanya Ahmed (2014)

Leadership theories are based on different ways of thinking. Some focus on traits
and qualities, while some emphasize the importance of situational aspects that influence
effective leaders.

CHARACTER FORMATION 2 19
 The human side of the business is one of the most important elements that
determine the success and failure of an organization. Leadership will always remain the
most valuable skill in the business world.
To be a better leader, it's important to understand human behavior.
This article will highlight some famous leadership theories, which will assist you in
developing your skills. It will also help you to perform better in your workplace.

What are Leadership Theories?

Leadership theories are schools of thought. It is brought forward to explain how
and why certain individuals become leaders.
Over the decades, many great scholars and researchers have conducted various
studies to discover the factors that contribute to effective leadership.

These theories shed light on the traits and behaviors of a leader. It can help
individuals cultivate their leadership abilities.
Great leadership is like electricity.
Without study, it’s a one-shot, lightning-in-a-bottle event. However, with a solid
theory to explain how it works and harnesses it, you can use it to power your team like a
well-oiled machine.

Using these leadership theories, you can analyze your leadership style. You can
find out what kind of leader you are and how you can be more effective while managing
your team.
People are complicated. They’re hard to understand and predict at the best of
times. Leadership theories help to make things easier for you.
You can't predict how everyone will react to a given situation. But, by knowing what
type of leader you are, you can take more decisive actions. Effective decisive decisions
will help your team achieve its goals.
That said, here are some of the core leadership theories that you need to know to
stay on top of your game.

What are the core leadership theories?

CHARACTER FORMATION 2 20
 1. GREAT MAN THEORY
According to the Great Man Theory, leaders are born with the right traits and abilities for
leading. The theory suggests that the ability to lead is inherent – that the best leaders are
born, not made.

THOMAS CARLYLE proposed the Great Man Theory in the 1840s. This theory
was criticized due to many reasons. For instance, This theory believes that leadership
cannot be learned; instead, it is an inherent trait.
There is no scientific validity in support of this theory.
Its male-centric approach is questionable as women have also proved to be great
leaders.
It ignores situational factors that can affect how a leader behaves.
While the theory sounds pretty discouraging to those wanting to learn leadership,
it’s still an interesting take on leadership. This theory highlights the qualities of great
leaders. These qualities have more or less remained unchanged over time.

2. TRAIT THEORY
The Trait Theory is like the Great Man Theory. Ralph M. Stogdill proposed the
trait theory of leadership in the late 1940s.
This theory was founded by studying the characteristics of different leaders. The
characteristics are compared to those of potential leaders to determine their potential to
lead effectively.
Scholars researching trait theory focuses on the following trait categories of
individuals-

Physiological traits: Such as appearance, weight, and height.

Demographics/ Socioeconomic characteristics: Such as age, education, and
familial background
Intellectual traits: Such as decisiveness, judgment, and knowledge.
Task-relation traits: Such as dedication, initiative, determination, and business
expertise.
Social characteristics: Such as cordiality and cooperation.

CHARACTER FORMATION 2 21
 Personality traits: Such as extraversion, self-confidence, honesty, and leadership
motivation.
Other traits: Such as charisma, adaptiveness, creativity, and uniqueness.
This theory was also criticized due to many reasons. For instance,
This theory also ignored environmental and situational factors like the great man
theory.
The list of traits is vast, which makes it complex.
These listed traits kept changing from time to time.
Trait theory was unable to explain failures in leadership. Failures existed even
though leaders possessed certain traits specified in the list.

3. BEHAVIORAL THEORY
Behavioral theory focuses on the specific behaviors and actions of leaders rather
than their traits or characteristics.
The behavioral theory of leadership evolved in the 1950s. The theory suggests
that effective leadership is the result of many learned skills.
After researchers understood the effectiveness of leadership traits, they were keen
to know what leaders do differently. Hence, to study the behavior of leaders, two major
research programs were started by two different universities -

The Ohio State Leadership Studies- Ohio State University researchers developed
a questionnaire to be administered in military and industrial settings. It aids in understanding
how subordinates perceive their leaders' actions. Findings show two major categories
of leadership behaviors: People-orientated behaviors: Leaders are supportive and
friendly towards their subordinates. They also build excellent interpersonal relationships with
them.

Task-oriented behaviors: Leaders focus on the achievement of goals and structure

work accordingly. They consider subordinates as resources of the company and make
optimal utilization of them.

The University of Michigan Studies- Researchers at the University of Michigan

Studies examined leadership behavior relating to group members’ performance. They made
comparisons of effective managers with ineffective ones.

Findings show two behaviors vital behaviors to differentiate between the two:
✓ Job-centric behaviors.
✓ Organizational-member-centric behaviors.
Four other behaviors are found for effective leadership:
⚫ Support.
⚫ Goal attainment.
⚫ Work felicitation.
⚫ Interaction.

CHARACTER FORMATION 2 22
 Robert R. Blake and Jane S. Mouton developed the Managerial Grid, also called
a leadership grid, to support this theory. According to them, the leadership styles are
identified based on the manager’s concern for people and production.
They discovered five distinct leadership styles by categorizing the managers into
81 possible ways based on ratings.
Following are the various styles of leadership according to this model:
Indifferent - Neither work nor employees are given importance. It is the most ineffective
style of leadership.
Country Club - More attention towards employees’ well-being and employee
engagement is given rather than tasks.
Task-oriented - Leaders have more attention towards work than employee
engagements.
Status Quo - These leaders place a moderate and equal emphasis on employee
wellness and work.
Sound - The most effective style among all. These leaders have a high level of concern
towards both employees and output.

4. CONTINGENCY LEADERSHIP THEORY

Contingency theory is a general theory that says there is no one singular best
way to structure your organization and lead your team. According to this theory, the best
leadership style will be contingent on the situation.

The contingency theory emphasizes different situational variables to determine the

style of leadership best suited for the situation. These theories of leadership state that
effective leadership comprises all three factors, i.e., traits, behavior, and situation.

This leadership theory evolved in the 1960s and was founded on the principle that
no one leadership style applies to all situations.
Good leaders not only have the right qualities, but they’re also able to evaluate the
needs of their followers and the situation at hand. To support this theory, various
Contingency leadership models were developed. Few such models are -

CHARACTER FORMATION 2 23
 • Fred Fiedler’s Contingency Model or LPC Contingency Model
• Situational Theory
• Path-Goal Theory
• Leadership Substitutes Theory
• Multiple-Linkage Model
• Cognitive Resources Theory
• Normative Decision Theory

5. CONTEMPORARY LEADERSHIP THEORY

Contemporary theory is a group of modern literary approaches to leadership.
Contemporary leaders use personal influence to develop and inspire people to achieve
organizational goals.
This theory considers that leadership skills are present in every individual.
Hence, this theory believes that leadership can be developed.
This theory of leadership evolved in the 1990s and is considered the New Era of
leadership theories. Today’s researchers believe that one dimension of leadership isn’t
enough. It cannot cover the complexity that arises in an organization.
Earlier approaches were traditional and based on leader-follower influences and
interactions. However, contemporary theory focuses on more complex dynamics of
interactions and situations.
This theory addresses various contemporary leadership theory approach such
as -

• Management theory or Transactional leadership theory

• Relationship theory or Transformational leadership theory
• LMX theory
• Servant leadership theory
• Authentic leadership theory
• Complexity Leadership
• Charismatic leadership theory
• Participative leadership theory
• Power-and-influence theory

THE SIX POINTS OF LEADERSHIP POWER

Below are French, Raven's (1959), Six Points of Leader Power. These power
points will help you to assess the impact you and others have on achieving full negotiating
skills.

1. COERCIVE POWER - Power that is based on fear.

A person with coercive power can make things hard for humans. These are the
people you wish to avoid being angry with. Employees who work under a coercive boss
are unlikely to themselves, and are more likely to resist the manager.

CHARACTER FORMATION 2 24
2. REWARD POWER- Compliance achieved on the of the ability to distribute rewards
which others find important.

Might give people special benefits or incentives. Trading favors with him or her might
seem beneficial.

3. LEGITIMATE POWER- The power a person receives in an organization's formal

hierarchy as a consequence of his or her role.

The person has the right to expect you to comply with valid demands, given his or
her status and your job responsibilities.

4. EXPERT POWER - Influence based on special skills or knowledge.

Experience and knowledge give the person respect. Expert influence is the most
firmly and regularly connected to productive output of subordinates.

5. REFERENT POWER - Influence based on individual or desirable possession of wealth

or personal traits.

Sometimes this is seen as beauty, elegance, or appreciation. You like the

individual and you want to do things for him or her.

6. INFORMATIONAL POWER - Providing information to others which leads to thinking

or acting in a new way.

CHARACTER FORMATION 2 25