Unit IV

Organizing and
Leading
 Organizing and its elements
Organizing
Organizing is related with designing and assigning jobs for individuals to work more
effectively and efficiently. It is necessary for the achievement of organizational goal.

The work organization is derived from the work "Organism" which means the structure made
from different organs. Therefore to make the structure of organization there must be co-
ordination among people, activities and departments etc. Organizing is establishing working
relationships among employers to achieve goals.

Organizing brings together men, machines, materials and money to execute the plans.
Planning focuses on deciding what to do and organizing focuses on how to do it. Thus, after
setting the goals and formulating the plans, the manager should organize the people and
allocate the resources to implement the plans.

Division of work into functions and sub-functions, grouping of activities that are closely
related in their nature, assigning of duties and responsibilities to the employees and finally
delegation of authority and power to each employee or the group to discharge their duties
accordingly are the processes come under the function of management organizing.

Thus in conclusion, organizing is the identification and grouping of activities which consist of
responsibility, delegation of authority. Establishing authority and responsibility relationship
and coordinating inter-related activities.
A manager performs organizing function with the help of following steps:-
Identification of activities - All the activities which have to be performed in a concern have to
be identified first. For example, preparation of accounts, making sales, record keeping, quality
control, inventory control, etc. All these activities have to be grouped and classified into units.

Departmentally organizing the activities - In this step, the manager tries to combine and
group similar and related activities into units or departments. This organization of dividing the
whole concern into independent units and departments is called departmentation.

Classifying the authority - Once the departments are made, the manager likes to classify the
powers and its extent to the managers. This activity of giving a rank in order to the managerial
positions is called hierarchy.
The top management is into formulation of policies, the middle level management into
departmental supervision and lower level management into supervision of foremen. The
clarification of authority help in bringing efficiency in the running of a concern.
This helps in achieving efficiency in the running of a concern. This helps in avoiding wastage of
time, money, effort, in avoidance of duplication or overlapping of efforts and this helps in
bringing smoothness in a concern’s working.

Co-ordination between authority and responsibility - Relationships are established among

various groups to enable smooth interaction toward the achievement of the organizational goal.
Each individual is made aware of his authority and he/she knows whom they have to take
orders from and to whom they are accountable and to whom they have to report. A clear
organizational structure is drawn and all the employees are made aware of it.
Importance/ Significance of organizing
Efficient Administration
Optimum use of Human Resource
Growth and Diversification
Optimum use of new technology
Coordination and communication
Training and Development
Productivity and Job Satisfaction
According to Ricky Griffin' "Organizing involves
determining how activities and resources are to be
grouped.“

According to Robbins and Cuolter' "Organizing involves

the process of determining, what tasks are to be done?
Who is to do them? Who is to do them? How the tasks
are to be grouped? Who report to whom and where
decisions are to be made?"
Elements of Organizing
Division of Labor
Division of labor is also known as work specification for
greater efficiency. It involves delegating specific parts of a
broader task to different people within the organization
based upon their particular abilities and skills

Using division of labor, an organization can parcel out a

complex work effort for specialists to perform. By
systematically dividing complex tasks into specialized jobs,
an organization uses its human resources more efficiently
Hierarchy of Authority
Hierarchy of authority is essentially the chain of command—a
control mechanism for making sure the right people do the
right things at the right time.

While there are a wide variety of organizational structures—

some with more centralization of authority than others—
hierarchy in decision making is a critical factor for success.
Knowing who will make decisions under what circumstances
enables organizations to be agile, while ambiguity of authority
can often slow the decision-making process.
Authority enables organizations to set directions and select
strategies, which can in turn enable a common purpose.
Distribution of Authority is the power that has been
legitimized (approved) by the organization.
Organizations must determine how authority is to be distributed among
positions.
An employee must have the power to make some decisions on his/her
own, some in consultation with coworkers and must defer some decisions
to his/her boss.
Two issues that managers must address when distributing authority are
delegation and decentralization

Delegation is the process by which managers assign a

portion of their total workload to others.
Managers generally delegate to:
enable themselves to get more work done.
allow employees with more expertise than they have to handle a
particular problem.
develop subordinates’ managerial skills by participating in decision
making and problem solving.
allow subordinates to learn more about overall operations
Departmentalization is the process of grouping jobs according to
some logical arrangement.
In smaller organizations, the owner-manager/partner may be able
to personally oversee everyone who works there.
As an organization grows, new managerial positions are created to
supervise work of others grouped according to some plan which
leads to the creation of departments

Functional Departmentalization groups jobs involving the same

or similar activities.
Most common in smaller organizations; has three primary
advantages:
Each department can be staffed by experts in that functional area.
Supervision is also facilitated because an individual manager needs to be
familiar with only a relatively narrow set of skills.
Coordinating activities inside each department is easier.
Disadvantages emerge as an organization grows because it becomes
increasingly difficult to monitor accountability and performance.
Product Departmentalization groups activities around
products or product groups.

Has three major advantages:

All activities associated with one product or product group can be easily
integrated and coordinated.
The speed and effectiveness of decision making are enhanced.
The performance of individual products or product groups can be assessed
more easily and objectively, thereby improving the accountability of
departments for the results of their activities.
Has two major disadvantages:
Managers in each department may focus on their own product or product
group to the exclusion of the rest of the organization.
Administrative costs may rise because each department must have its own
functional specialists for areas such as market research and financial analysis.
Customer Departmentalization occurs when the organization
structures its activities to respond to and interact with specific
customers or customer groups.
Major advantage is that the organization is able to use skilled
specialists to deal with unique customers or customer groups.
A disadvantage is that a fairly large administrative staff is
required to integrate various departments’ activities to make
sure the organization does not over commit itself in any one
area.

Location Departmentalization groups jobs on the basis of

defined geographic sites or areas.
Primary advantage is that it enables the organization to respond
easily to unique customer and/or environmental characteristics
in the various regions.
A disadvantage is that a larger administrative staff may be
required if the organization must keep track of units in various
locations.
Other Forms of Departmentalization may include:
Departmentalization by Time: grouping certain activities by
time – shift system in which each shift has its own superintendent,
who reports to the plant manager, and functional departments.
Hospitals and airlines use time as well to departmentalize.
Departmentalization by Sequence: university registration by
senior, junior, etc; credit checks by employees according to
customer name; insurance company claim division by policy
number.
Other Considerations for Departmentalization:
In some large organization, departments may be referred to
as Divisions, Units, Sections and Bureaus.
Regardless of the label used, they represent groups of jobs
that have been tied together according to some unifying
principle.
Almost all organizations are likely to use multiple bases of
departmentalization, depending on level.
It is quite common that organizations use a variety of bases of
departmentalization for different levels and different sets of
activities.
Organization structure

An organizational structure defines the reporting

relationships in a company - in other words, who
works for who.

Companies choose an organizational structure based

on many factors, including their size, their geographic
dispersion, and the number of different products and
services they offer.
Line Organisation
It is perhaps the oldest and the simples organisational structure. In this
kind of structure every manager exercise a direct authority over his
subordinate who in turn directly reports to their superiors.

There is a hierarchical arrangement of authority and each department is

self contained and works independently of other departments.

Lines of authority are vertical i.e. from top to bottom and there are no
staff specialists.

A line organisation has only direct, vertical relationships between

different levels in the firm. There are only line departments-departments
directly involved in accomplishing the primary goal of the organisation.

For example, in a typical firm, line departments include production and

marketing. In a line organisation authority follows the chain of command
Advantages:
1. Tends to simplify and clarify authority, responsibility and
accountability relationships
2. Promotes fast decision making
3. Simple to understand.

Disadvantages:
1. Neglects specialists in planning
2. Overloads key persons.
Line and Staff organization structure
Line and staff organization is a modification of line
organization and it is more complex than line organization.

According to this administrative organization, specialized
and supportive activities are attached to the line of command
by appointing staff supervisors and staff specialists who are
attached to the line authority.

The power of command always remains with the line

executives and staff supervisors guide, advice and council the
line executives.

Personal Secretary to the Managing Director is a staff official.

 Merits of Line and Staff Organization
 Relief to line of executives- In a line and staff organization, the advice and counseling
which is provided to the line executives divides the work between the two and the line
executive can concentrate on the execution of plans

 Expert advice- The line and staff organization facilitates expert advice to the line executive
at the time of need. The planning and investigation which is related to different matters can
be done by the staff specialist and line officers can concentrate on execution of plans.

 Better co-ordination- Line and staff organization through specialization is able to provide

better decision making and concentration remains in few hands. This feature helps in
bringing co-ordination in work as every official is concentrating in their own area.

 Benefits of Research and Development- Through the advice of specialized staff, the line
executives, the line executives get time to execute plans by taking productive decisions
which are helpful for a concern. This gives a wide scope to the line executive to bring
innovations and go for research work in those areas.

 Training- Due to the presence of staff specialists and their expert advice serves as ground
for training to line officials.

 Balanced decisions- The factor of specialization which is achieved by line staff helps in

bringing co-ordination. This relationship automatically ends up the line official to take
better and balanced decision.
Demerits of Line and Staff Organization
Lack of understanding- In a line and staff organization, there are two authority flowing at one
time. This results in the confusion between the two. As a result, the workers are not able to
understand as to who is their commanding authority. Hence the problem of understanding can
be a hurdle in effective running.

Lack of sound advice- The line official get used to the expertise advice of the staff. At times
the staff specialist also provide wrong decisions which the line executive have to consider. This
can affect the efficient running of the enterprise.

Line and staff conflicts- Line and staff are two authorities which are flowing at the same time.
The factors of designations, status influence sentiments which are related to their relation, can
pose a distress on the minds of the employees. This leads to minimizing of co-ordination which
hampers a concern’s working.

Costly- In line and staff concern, the concerns have to maintain the high remuneration of staff
specialist. This proves to be costly for a concern with limited finance.

Assumption of authority- The power of concern is with the line official but the staff dislikes it
as they are the one more in mental work.

Staff steals the show- In a line and staff concern, the higher returns are considered to be a
product of staff advice and counseling. The line officials feel dissatisfied and a feeling of distress
enters a concern. The satisfaction of line officials is very important for effective results
Functional organization

A functional organization is a common type of organizational structure in which the

organization is divided into smaller  groups based on specialized functional areas, such as IT,
finance, or marketing.

Functional departmentalization arguably allows for greater operational efficiency because

employees with shared skills and knowledge are grouped together by function.

For example, there might be separate departments for marketing, accounting, and engineering.
Generally, all the functional heads will report directly to the company president or CEO.

Functional organizations contain specialized units that report to a single authority, usually

called top management. Refereed to as functional units or areas, these specialized units
contain personnel with various but related skills grouped by similarities.

Each functional unit handles one aspect of the product or service provided: information
technology, marketing, development, research, etc.

Top management is responsible for coordinating the efforts of each unit and meshing them
together into a cohesive whole.
The following are the advantages of functional organisation structure:
(1) Benefits of Specialization: The whole company is divided into many departments on
the basis of major activities to be performed. Each department is headed by an expert
manager. This results in more and better work being accomplished in much lesser time.
Hence, the benefits of specialization become available.

(2) Coordination is established: All the persons working within a department are
specialists of their respective jobs. It makes coordination easier at the departmental level.

(3) Managerial Efficiency is increased: It helps in increasing managerial efficiency

because of performing the same work again and again. Further, this results in increased
profit.

(4) Minimal Duplication of Efforts: In this type of organisation unnecessary duplication

of efforts is eliminated. For example, the function of finance is only carried out by the
finance department. There is no need to establish two or more departments. It makes it
possible to utilise the human and other resources effectively.

(5) Training is facilitated: It facilitates the training of personnel as the focus is only on a
limited range of skills. For example, the employees of finance department are given training
of financial issues.

(6) Equal Weight age to All Functions: It ensures that all the functions/activities get equal
Main Disadvantages of Functional Organisation

1) Ignorance of Organisational Objectives:

Each departmental head works according to his sweet will. They always give more
importance to their departmental objectives.
Hence, overall organisational objectives suffer. For example, to establish its image, the
production department may produce quality product ignoring the fact that market trend
favors accepting medium quality product.

(2) Difficulty in Interdepartmental Coordination:

All departmental heads may work as per their own wish. No doubt this facilitates
coordination within the department but it makes interdepartmental coordination
difficult.

(3) Conflict of Interest:

Every departmental head wants to become a functional empire. To satisfy their ego every
one demands maximum resources for their department. This situation leads to conflicts
among the various departmental heads.

(4) Hurdle in Complete Development:

This system is a hurdle in the way of the complete development of the employees. Each
employee specializes only in a small part of the whole job.
Committee Organizational Structure
A committee organization is an association of people set up to
arrive at solutions to common problems. The line people are
given opportunities to discuss their problems in the committee.

For example, the Finance Committee will include all the

functional managers, viz. Marketing Manager, Production
Manager, Personnel Managers, etc. as members, and the
Managing Director as the Chairman.

 It will decide the financial requirements of each and every

department.

The decisions taken by the committee are followed by the line

people, as the committees are representatives of various
functional departments.
Committee can be:
Executive committee they are the Group of directors
appointed to act on behalf of, and within
the powers granted to them by, the board of directors.
Typically it consists of a chairperson, vice-chairperson
secretary, and treasurer.
They make decision and enforce them.

Advisory committee An Advisory Committee is a

committee comprised of knowledgeable, prominent and
credible members in their field of expertise from within and
outside the organization.
They cannot enforce the implementation of their advice.
 The functions of Advisory Committees include:
providing input and guidance concerning aspects related.
Advantages
1. Pooling of knowledge and experience:
The personal skills and Hence of several persons are pooled together. Group deliberations and combined judgment
of all the members can be brought to bear on important problems. There can be a more realistic and objective
appraisal of the problem from all angles. This helps to improve the quality of decisions.
A group of people can bring to bear a wider range of experience and a more thorough prob­ing of facts than a single
person.

2. Improved communication:

Committees serve as important means of communication between the members of an organisation. Informa­tion
and ideas can be easily transmitted both upward and downward. Creative ideas emerge from interactions among
the members. Doubts and ambiguity can be removed on the spot.

3. Facility of coordination:

Participation in committee meetings pro­motes mutual understanding, team-work and cooperation among
employees. Committees serve as an important technique of coordination by bringing together managers from
different departments.

4. Better motivation:

Committees help to improve the motivation and morale of employees by providing them an opportunity to express
them­selves. Participation in the decision making process not only improves quality of decisions, it creates a sense
of belonging. Employees are keen on the execution of decisions in the making of which they have taken an active
part.

5. Executive development:

A committee is an useful device for educat­ing and training subordinate managers. Participation in committee
meetings provides opportunity for learning through experience. A manager learns to take an integrative view of
organizational problems by serving on various committees. Executive development ensures con­tinuity of
management in the organisation.
Disadvantages:
1. Indecisiveness:
In general, it takes longer to get decision or action from a committee than from an individual. Members of a
committee tend to indulge in lengthy, discussions. Every member has the right to speak and be heard. Matters
are unnecessarily dragged. Opinion is divided and decisions get delayed.

2. High costs:

A lot of expenditure and time is incurred in convening meetings and giving travelling or other allowance to
members.. As such a committee should be appointed only when the gains of committee work justify the s costs.

3. Compromised decisions:

Committee decisions are often mediocre compromises between conflicting viewpoints. The ultimate decisions
may reflect the opinion of none so that there is little enthusiasm for them. Individual thinking is expected to
conform to the average or group thinking.
Therefore, committee decisions are not necessarily the best decisions but merely acceptable ones.

4. Diffused responsibility:

No member can be individually held responsible for a wrong decision taken by a committee. As no one feels
accountable for results, members shirk their responsibilities.

5. Domination by few:

A few aggressive or vocal members often dominate committee's deliberations. A minority group exercises an
unwarranted tyranny ignoring the interest of other members. Members frequently seek to protect their narrow
sectional interests.

6.Lack of secrecy:
It is difficult to maintain secrecy regarding the decisions and actions taken by a committee. A large number of
 Matrix organizational structure

A matrix organization structure is usually defined as

one where there are multiple reporting lines – that is,
people have more than one formal boss.

Matrix structure sometime referred to as a multiple

command system is a hybrid that attempts to combine
the benefits of both types of design while avoiding their
drawbacks.

Unlike a traditional hierarchy in which each worker has

one supervisor, a matrix system requires employees to
report to two or more managers, each responsible for a
different aspect of the organization’s overall product or
service.
In matrix organization, the personnel working on the project having a
responsibility to their functional manager and project manager.

In matrix structures, there are functional managers and product (or project or
business group) managers. Functional manager are in charge of specialized
resources such as production, quality control, inventories, scheduling and
marketing.

Product or business group managers are incharge of one or more products and
are authorized to prepare product strategies or business group strategies and
call on the various functional managers for the necessary resources.

For example, a video producer working at an advertising firm might report to

the head of the media department (functional chain of command) as well as
to the project manager for a given client product (project chain of command).

The project manager is accountable for the overall performance of the product
team, whereas the functional manager is responsible for the technical
performance of the particular employee task—in this case, video production.
The benefits of a matrix organization approach can include
 improved communication flows, more efficient use of resources,
increased flexibility, authority and responsibility shared and
better performance resulting from complementary expertise
among managers.

The drawbacks of a matrix system might include confidence

problems and conflicting priorities arising from multiple lines of
authority, as well as higher overhead costs associated with
increased system complexity and idleness and power struggle
between functional manager and project manager.

Because of these challenges, the move from a traditional hierarchy

to a matrix system typically requires the adoption of new
information and communication technologies, as well as a
concentrated effort to reform the organizational culture and
expectations of members.
 
Leadership
Leadership Styles style deals with the way leaders influence the followers. it is the result of leaders
philosophy, personality, experienced and value system. Some organizations are more conductive to
the development of effective leadership styles than others. The widely recognized leadership styles
are mentioned below;
1. Authority style :
 On the basis of authority leadership can be classified into following three types:
a. Autocratic style or authoritarian leadership: In this style; power, authority and decision
making are centralized in the leader. Such leader makes all the decisions. He/she makes plans for
the group without consulting the group. He/she does not like to seek other suggestions or advice.
He/she tells the group what to do and how to do. Leader gives reward and punishment as they like.

b. Democratic or participative style: Under this style; power and authority is decentralized. Here
leader takes decision in consultation with subordinates. In this style subordinates willingly
cooperate with the leader and are encouraged to participate and give ideas. Here reward and
punishment is based on the performance of employee. Information is shared between leader and
subordinates.

c. Free rein / Laissez faire style: Laissez-faire leaders do not get involved at all. They let the group
run by itself. In this style subordinates have complete freedom of choice and can to as they like.
They serve as an information centre because leaders use very little power and control. Here
employee morale is high so subordinates have freedom and autonomy to work. They set their own
goals. It describes a leader who generally gives subordinates a complete freedom to make decision
and complete the work in their own way.
2. Managerial grid style: The managerial grid was
developed by Blake and Mouton for determining
managerial types in 1991. managerial grid style of
leadership deals with two dimensions i.e. concern for
people which deals with human aspect of leader behavior.

 Other is concern for production which deals with task

aspects of leader behavior. The grid is shown with the help
of following figure.

The grid divided into 9 x 9 matrix which is subdivided into

five grid where managers concern is high for people and it
may be sometime high for production whereas managers
concern may be moderate where managers concern for
people & production is equal.
3 Four systems of management style:
 It was propounded by Rentis Likert in 1961. In this system Likert has suggested four systems
of management to study leadership styles.

System 1 (exploitative autocratic): In this system managers are highly autocratic. They
make work-related decisions & order their subordinates to carry them out. Communication
between manager & subordinates is in downward direction. Here managers believe in threats
& punishment to get the things done by employees.

System 2 (benevolent autocratic): In this system managers are also autocratic & authority is
centralized but they are not exploitative (make use of). They give flexibility to subordinates to
complete task within prescribed limits. Subordinates who meet their goals may be rewarded.

System 3 (consultative): In this style managers set goals and issue orders after discussing with
subordinates. Managers take major decisions but they let routine decision to be taken by
subordinates. In order to motivate employees managers give emphasis on rewards than
punishments. So subordinates can freely discuss on work related matters with their superiors.

System 4 (participative): In this style managers have complete confidence and trust upon their
subordinates. Here group approach is adopted in supervision and control. Managers support
their subordinates. Here goals and work related decisions are taken democratically after
consulting subordinates. managers give their subordinates a feeling of worth and importance.
Situational style of leadership:
This style states that leadership style is situational. It should
change according to the demands of the situation.

It tells that only one style is not best for all the situations.
Leader should behave seeing the situation.

Therefore, there is no universally applicable behavior of

leader. Structure of task, position and power of leaders are
the situation variables that affect leadership styles.

It gives importance to group performance and tells that

group performance determines leadership effectiveness.
Qualities of leadership
Leaders must possess and develop certain qualities for influencing and getting the best results
from his subordinates leadership qualities produce numerous impact on followers performance
through the multiplier effect. Thus an effective leader should have following qualities;

A clear sense of purpose: A good leader must have a clear sense of purpose or the ability to
define and shave the vision and mission with subordinates Leader must be clear about the purpose
of organization i.e. what an organization wants to achieve.

Integrity: A good leader must have integrity or the ability to be honest, loyalty, trustworthy
personal integrity and fair in implementing organizational policies and decisions. He should have
a sense of justice. Thus leader should be a man of character and should behave in a dignified
manner.

Good judgment: Good leader must have the qualities of judgment. It is the ability to understand
the effect of one's action on employees or coworkers on the organization, customers, suppliers and
the community at large.

Self confidence: It is the ability to be aware of one's own strengths and abilities and know how to
maximize and use them. Leader must known himself & his strengths and weaknesses. He/she
should inspire trust & self-control in them.

Technical competence: The leader should be technically competent and should possess job
relevant knowledge to technically guide the followers. He should have analytical ability.
Managerial qualities: Leader should possess managerial qualities of planning,
decision making, communicating, controlling, motivating & organizing. Leader should
practice participative management; he should have a desire to lead. Thus, he should
give good judgment.

Psychological qualities: Leader should have psychological qualities so that he/she

will carry personal warmth in his/her relationships with his/her followers. Leader must
understand behavior of human. Who is involved with him in working as coworkers.

Adaptability: This is the other qualities of good leader. It is the ability to adapt quickly
to new situations. Leaders emerge from situation. He should have ability to deal with
unpleasant situations. The leader must be able to adjust to changing situations.

Physical fitness: The leader should be physically fit and of sound health. He should
have energy and willing to work hard. If leader is physically unfit he cannot show good
performance in work. Thus physical fitness means mental sound and active.

Listening: This is the other qualities of good leader. Leader should be an effective
listener. Leaders must have patience in him/her. Everytime leader should task less and
listen to his followers. Thus he/she must listen to keep himself informed.
 Approaches to leadership
Trait Leadership Approach
Trait leadership focuses on the leader and the traits he exhibits. Certain types of
traits make leaders more effective.
 For example, the late Steve Jobs was known for his charisma. Some examples of
traits that make an effective leader include intelligence, self-confidence, integrity
and determination. Leadership candidates often take personality assessment tests to
pinpoint their traits.

The trait approach was one of the first systematic attempts to study leadership.
However, the term trait has been the source of considerable ambiguity and
confusion in the literature, referring sometimes and variously to personality,
temperaments, dispositions, and abilities, as well as to any enduring qualities of the
individual, including physical and demographic attributes.

In the early 20th century, leadership traits were studied to determine what made
certain people great leaders. These theories focused on identifying the innate
qualities and characteristics possessed by great social, political, and military leaders.

It was believed that people were born with these traits, and only the "great" people
possessed them. During this time, research concentrated on determining the
specific traits that clearly differentiated leaders from followers
 Behavioral approach
The limitations of Trait Theory led to a significant change in the leadership
approach.

In this theory full focus is on the actual behavior and actions of leaders instead of
their personal qualities.

This theory emphasis on what the leaders do and how they behave to become
effective leaders.

According to trait theory leadership is inherited but according to behavior theory

leadership can be learned.

Behavioral theories of leadership are classified as such because they focus on the
study of specific behaviors of a leader.

For behavioral theorists, a leader behavior is the best predictor of his leadership
influences and as a result, is the best determinant of his or her leadership success.
 Researchers then turned to the
investigation of other variables, especially
the behaviors or actions of leaders.
Three major approaches were
developed:

Michigan Studies
Ohio State Studies
Managerial Grid
Michigan Studies – late 1940’s
Rensis Likert, University of Michigan, interviewed
leaders (managers) and followers (subordinates) and
identified two basic forms of leader behavior:
Job-centered leader behavior – managers pay close
attention to subordinates’ work, explain work procedures
and are keenly interested in performance.

Employee-centered leader behavior – managers are

interested in developing a cohesive work group and
ensuring that employees are satisfied with their jobs.

Likert argued employee-centered leader behavior was more

effective.
Ohio State Studies – late 1940’s
Researchers at Ohio State University also suggested that
there are two basic leader behaviors or styles:

Initiating-structure behavior – the behavior of leaders who

define the leader-subordinate role so that everyone knows what is
expected, establish formal lines of communication, and
determine how tasks will be performed.

Consideration behavior – the behavior of leaders who show

concern for subordinates and attempt to establish a warm,
friendly and supportive climate.

Ohio State researchers differed from Michigan researchers in that

they argued that a leader could exhibit varying levels of initiating
structure behavior and at the same time varying levels of
consideration behavior.
Managerial Grid
Provides a means for evaluating leadership styles and
then trains managers to move toward an ideal style of
behavior.

The horizontal axis represents ‘concern for production’

[similar to job-centered and initiating-structure
behaviors].

The vertical axis represents ‘concern for people’ [similar

to employee-centered and consideration behaviors].
This is the model defined by Blake and Mouton in the
early 1960s.

It included:
Impoverished Management

Team Management

Country Club Management

Middle of the Road Management

Team Management
Impoverished Management style (1,1)
In this style managers have low concerned for both people and
production.
Managers use this style to avoid getting into trouble.

The Country Club Management (1,9)

This style has a high concern for people and low concern for production.
Managers using this style pay much attention to the security and comfort
of the employees in the hopes that this would increase performance.

Task management (9,1)

This style has a high concern for production and low concern for people.
Managers using this style find employees needs unimportant.
They provide their employees with money and expect performance back.
Managers using this style also pressure their employees through rules and
punishments to achieve the company's goals and this is a dictatorial style
based on Theory X of Douglas.
Middle of the Road Style (5,5)
Managers using this style try to balance between
company's goal and workers needs.
By giving some concern to both people and production,
managers who use this style hope to achieve acceptable
performance.

The Team Style (9,9)

In this style, high concern is paid to people and
production.
This method relies heavily on making employees feel as
a constructive part of the company.
The leaders encourage the team to reach team goals as
effectively as possible.
Leadership Grid
Situational Approaches to Leadership

The personality and behavior theories of leadership ignore

situational factors in determining the success or effectiveness of
leader.

They hold the view that a leader can be successful or effective if

he possess certain in-born qualities or if he behaves in a
particular manner.

Such a view is criticized by later theorists who assert that the

success or effectiveness of a leader is determined by various
situational factors apart from the qualities and behavior of the
leader himself.

A moderate situational view is that leadership should be viewed

in terms of a dynamic interaction between the leader, the group
of followers, the task situation and the environment.
Situational Approaches to Leadership

The personality and behavior theories of leadership ignore

situational factors in determining the success or effectiveness of
leader.

They hold the view that a leader can be successful or effective if

he possess certain in-born qualities or if he behaves in a
particular manner.

Such a view is criticized by later theorists who assert that the

success or effectiveness of a leader is determined by various
situational factors apart from the qualities and behavior of the
leader himself.

A moderate situational view is that leadership should be viewed

in terms of a dynamic interaction between the leader, the group
of followers, the task situation and the environment.
The following sections describe the three most well‐known situational theories.
Fiedler's contingency theory
Fred E. Fiedler's contingency theory centers on the belief that there is no best way for managers to
lead. Different situations create different leadership style requirements for managers. The style that
works in one environment may not work in another.

Fiedler looked at three elements that dictate a leader's situational control. These elements are:
Task structure. Is the job highly structured, fairly unstructured, or somewhere in between? The
spelling out in detail (favorable) of what is required of subordinates affects task structure.
Leader/member relations. This element applies to the amount of loyalty, dependability, and
support that a leader receives from his or her employees. In a favorable relationship, a manager has a
highly formed task structure and is able to reward and/or punish employees without any problems. In
an unfavorable relationship, the task structure is usually poorly formed, and the leader possesses
limited authority.
Positioning power. Positioning power measures the amount of power or authority a manager
perceives the organization has given him or her for the purpose of directing, rewarding, and punishing
subordinates. Positioning powers of managers depends on the taking away (favorable) or increasing
(unfavorable) of the decision‐making power of employees.

Fiedler then rated managers as to whether they were relationship oriented or task oriented. Task‐
oriented managers tended to do better in situations with good leader/member relationships,
structured tasks, and either weak or strong position power.

They also did well when the tasks were unstructured but position power was strong, as well as when
the leader/member relations were moderate to poor and the tasks were unstructured. Relationship‐
oriented managers, on the other hand, do better in all other situations.
The task‐motivated style leader experiences pride and
satisfaction in task accomplishment for his or her organization,
while the relationship‐motivated style leader seeks to build
interpersonal relations and extend extra help for team
development in his or her organization.

Judging whether a leadership style is good or bad can be

difficult. Each manager has his or her own preferences for
leadership.

 Task‐motivated leaders are at their best when their teams

perform successfully—such as achieving new sales records or
outperforming major competitors.

Relationship‐oriented leaders are at their best when greater

customer satisfaction is gained and positive company images are
established.
Hersey-Blanchard's situational model
The Hersey‐Blanchard Model of Situational Leadership, is based on the amount of direction
(task behavior) and amount of socio emotional support (relationship behavior) a leader must
provide given the situation and the level of maturity of the followers.

Task behavior is the extent to which the leader engages in spelling out the duties and
responsibilities to an individual or group. This behavior includes telling people what to do,
how to do it, when to do it, and where to do it.

In task behavior, the leader engages in one‐way communication. Relationship behavior, on the
other hand, is the extent to which the leader engages in two‐way or multiway
communications. This behavior includes listening to, facilitating, and supporting employees.
And maturity is the willingness and ability of a person to take responsibility for directing his
own behavior.

Employees tend to have varying degrees of maturity, depending on the specific tasks,
functions, or objectives that they attempt to accomplish.

To determine the appropriate leadership style to use in a given situation, a leader must first
determine the maturity levels of his or her followers in relationship to the specific task.

As employee maturity levels increase, a leader should begin to reduce task behavior and
increase relationship behavior until his or her followers reach moderate maturity levels. As
the employees move into above‐average maturity levels, the leader should decrease not only
Once maturity levels are identified, a manager can determine the appropriate
leadership style: telling, selling, participating, or delegating.
Telling. This style reflects high task/low relationship behavior (S1). The leader
provides clear instructions and specific direction. Telling style is best matched
with a low follower readiness level.

Selling. This style reflects high task/high relationship behavior (S2). The leader
encourages two‐way communication and helps build confidence and motivation
on the part of the employee, although the leader still has responsibility and
controls decision making. Selling style is best matched with a moderate follower
readiness level.

Participating. This style reflects high relationship/low task behavior (S3). With
this style, the leader and followers share decision making and no longer need or
expect the relationship to be directive. Participating style is best matched with a
moderate follower readiness level.

Delegating. This style reflects low relationship/low task behavior (S4).
Delegating style is appropriate for leaders whose followers are ready to
accomplish a particular task and are both competent and
Path goal theory
The path‐goal theory, developed by Robert House, is based on the
expectancy theory of motivation. A manager's job is to coach or
guide workers to choose the best paths for reaching their goals.

Based on the goal‐setting theory, leaders engage in different types

of leadership behaviors depending on the nature and demands of
a particular situation.

A leader's behavior is acceptable to subordinates when viewed as

a source of satisfaction.

He or she is motivational when need satisfaction is contingent on

performance; this leader facilitates, coaches, and rewards effective
performance.
Path‐goal theory identifies several leadership styles:
Achievement‐oriented. The leader sets challenging goals for
followers, expects them to perform at their highest levels, and shows
confidence in their abilities to meet these expectations. This style is
appropriate when followers lack job challenges.

Directive. The leader lets followers know what is expected of them

and tells them how to perform their tasks. This style is appropriate
when followers hold ambiguous jobs.

Participative. The leader consults with followers and asks them for

suggestions before making a decision. This style is appropriate when
followers are using improper procedures or are making poor decisions.

Supportive. The leader is friendly and approachable. He or she shows

concern for the followers' psychological well‐being. This style is
appropriate when followers lack confidence.
Path‐goal theory assumes that leaders are flexible and that they can change
their styles as situations require.

This theory proposes two contingency variables that moderate the leader
behavior‐outcome relationship:
Environment characteristics are outside the control of followers, task
structure, authority system, and work group. Environmental factors
determine the type of leader behavior required if follower outcomes are to be
maximized.

Follower characteristics are the focus of control, experience, and perceived

ability. Personal characteristics of subordinates determine how the
environment and leader behavior are interpreted.

Effective leaders clarify the path to help their followers achieve their goals,
and make their journeys easier by reducing roadblocks and pitfalls.

Research demonstrates that employee performance and satisfaction are

positively influenced when leaders compensate for shortcomings in either
their employees or the work settings.