INSTRUCTIONAL OBJECTIVES

Upon completion of this lecture, Students should be able to:

1.Define Leadership
2.Explain Types of Leadership
3.List the Characteristics of Leadership
4. Differentiate between Problem-solving & Decision-making
5.State the sources of Funds for Venture Start-ups
 DEFINITION OF LEADERSHIP
 A leader is the person, who has sufficient influence to bring about long-term

changes in the attitudes and to make the changes more acceptable. It is primarily
associated with stimulating the mind-sets of the individuals towards the
implementation of job duties
Leadership is creativity in action. It is the ability to see the present in terms of the
future while maintaining respect for the past. Leadership is based on respect for
history and the knowledge that true growth builds on existing strengths. Leading is in
part a visionary endeavor, but it requires the fortitude and flexibility necessary to
put vision into action and the ability to work with others an to follow when someone
else is the better leader. Leaders also need resilience to function in normal and not-
so-normal times.
 DEFINITION OF LEADERSHIP
 “Leadership is the moral and intellectual ability to visualize and work for what

is the best for company and its employees.” (Mullins 2001)

“Leadership is the ability to influence people to willingly follow one’s guidance

or adhere to one’s decisions.” (Leslie dan Lloyd 1995)

“Leadership is the ability to persuade others to seek defined objectives

enthusiastically” (John et al. 1987)

“Leadership is the ability to influence, motivate, and direct others in order to

attain desired objectives” (Don dan John 1992)
 TYPES OF LEADERSHIP
 The types of leadership are three, i.e. autocratic or dictatorial leadership,
democratic leadership and laissez-faire or free rein leadership. These are stated
as follows:
Autocratic or Dictatorial Leadership
 In the autocratic or dictatorial leadership, the leader is vested with complete
responsibilities of all the actions.

The leaders primarily relies on the implicit obedience from the group in
following his orders. He determines the plans and policies. The decision making
process is regarded to be of utmost significance.

The leaders make all the decisions on their own and do not obtain ideas and
suggestions from others.
 TYPES OF LEADERSHIP
 The terms and relationships of the leaders with the subordinates are negative.
In developing motivation and discipline among subordinates, they use threats of
punishment.

In developing motivation and discipline among subordinates, they use threats of
punishment. The subordinates need to follow the decisions of the leaders,
whether, they are favorable to them or not.

Democratic Leadership
In the case of democratic leadership, the leader draws ideas and suggestions from
the group of members. The other members are provided with the opportunities to
express their ideas and perspectives.
 TYPES OF LEADERSHIP
 In other words, the leaders consult others, when they are to make important
decisions. The members are encouraged by the leaders to augment creative skills
and carrying out their job duties with interest and enthusiasm.

When the members are allowed to participate in formulation of plans and

policies and express their viewpoints, they form pleasant and amiable terms and
relationships with leaders, develop higher employee morale, increase in the
feeling of job satisfaction, and reduced dependence on the leaders.

Democratic leadership assures, there is an increase in productivity and

satisfaction.
 TYPES OF LEADERSHIP
Laissez-faire or Free Rein Leadership
 In the case of laissez-faire or free rein leadership, the leader depends entirely
on the subordinates to establish their own goals and make their own decisions.

The subordinates are provided with the opportunities to carry out the functions
of planning and organizing in an effectual manner and proceeding. In the
administrative functions, the leaders do not play a major role.

The job duties of the leaders are just limited to making provision of information
and assistance in the case of occurrence of any problems and setbacks.

This leadership is usually suitable for professional members of the organization,

who are trained and well-equipped in terms of methods and procedures.
 CHARACTERISTICS OF LEADERSHIP
Essential Leadership Traits or Characteristics
Integrity
Delegation
Communication
Self-Awareness
Gratitude
Learning Agility
Influence
Empathy
Courage
Respect
 PROBLEM-SOLVING AND DECISION-MAKING
 Problem solving is the act of defining a problem; determining the cause of the
problem; identifying, prioritizing, and selecting alternatives for a solution; and
implementing a solution.

In order to effectively manage and run a successful organization, leadership

must guide their employees and develop problem-solving techniques. Finding a
suitable solution for issues can be accomplished by following the basic four-step
problem-solving process and methodology outlined below:
 PROBLEM-SOLVING AND DECISION-MAKING
STEP 1: Define the Problem
Differentiate fact from opinion
Specify underlying causes
Consult each faction involved for information
State the problem specifically
Identify what standard or expectation is violated
Determine in which process the problem lies
Avoid trying to solve the problem without data
STEP 2: Generate Alternative Solutions
Postpone evaluating alternatives initially
Include all involved individuals in the generating of alternatives
Specify alternatives consistent with organizational goals
Specify short- and long-term alternatives
Brainstorm on others' ideas
 PROBLEM-SOLVING AND DECISION-MAKING
STEP 3: Evaluate and Select an Alternative
Evaluate alternatives relative to a target standard
Evaluate all alternatives without bias
Evaluate alternatives relative to established goals
Evaluate both proven and possible outcomes
State the selected alternative explicitly

STEP 4: Implement and follow up on the Solution

Plan and implement a pilot test of the chosen alternative
Gather feedback from all affected parties
Seek acceptance or consensus by all those affected
Establish ongoing measures and monitoring
Evaluate long-term results based on final solution
 DECISION-MAKING
Decision-making (also spelled decision making and decision-making) is regarded as
the cognitive process resulting in the selection of a belief or a course of action
among several possible alternative options. It could be either rational or irrational.
The decision-making process is a reasoning process based on assumptions
of values, preferences and beliefs of the decision-maker. [1] Every decision-making
process produces a final choice, which may or may not prompt action.
Decision-making can be regarded as a problem-solving activity yielding a solution
deemed to be optimal, or at least satisfactory. It is therefore a process which can be
more or less rational or irrational and can be based on explicit or tacit
knowledge and beliefs. Tacit knowledge is often used to fill the gaps in complex
decision-making processes.
 STEPS TO EFFECTIVE DECISION-MAKING
Decision making is the process of making choices by identifying a decision,
gathering information, and assessing alternative resolutions. Using a step-by-step
decision-making process can help you make more deliberate, thoughtful decisions
by organizing relevant information and dening alternatives. This approach
increases the chances that you will choose the most satisfying alternative
possible.

Step 1: Identify the decision You realize that you need to make a decision. Try to
clearly dene the nature of the decision you must make. This rst step is very
important.
 STEPS TO EFFECTIVE DECISION-MAKING
Step 2: Gather relevant information Collect some pertinent information before
you make your decision: what information is needed, the best sources of
information, and how to get it. This step involves both internal and external
“work.” Some information is internal: you’ll seek it through a process of self-
assessment. Other information is external: you’ll find it online, in books, from
other people, and from other sources.
Step 3: Identify the alternatives As you collect information, you will probably
identify several possible paths of action, or alternatives. You can also use your
imagination and additional information to construct new alternatives. In this step,
you will list all possible and desirable alternatives.
 STEPS TO EFFECTIVE DECISION-MAKING
Step 4: Weigh the evidence Draw on your information and emotions to imagine
what it would be like if you carried out each of the alternatives to the end.
Evaluate whether the need identified in Step 1 would be met or resolved through
the use of each alternative. As you go through this difficult internal process,
you’ll begin to favor certain alternatives: those that seem to have a higher
potential for reaching your goal. Finally, place the alternatives in a priority order,
based upon your own value system.
 STEPS TO EFFECTIVE DECISION-MAKING
Step 5: Choose among alternatives Once you have weighed all the evidence, you
are ready to select the alternative that seems to be the best one for you. You may
even choose a combination of alternatives. Your choice in Step 5 may very likely
be the same or similar to the alternative you placed at the top of your list at the
end of Step 4.
Step 6: Take action You’re now ready to take some positive action by beginning to
implement the alternative you chose in Step 5.
 STEPS TO EFFECTIVE DECISION-MAKING
Step 7: Review your decision & its consequences In this final step, consider the
results of your decision and evaluate whether or not it has resolved the need you
identified in Step 1. If the decision has not met the identified need, you may want
to repeat certain steps of the process to make a new decision. For example, you
might want to gather more detailed or somewhat different information or explore
additional alternatives.
 GENERIC SOURCES OF FUNDS FOR BUSINESSES
1. Personal Investment: As an entrepreneur, one of the first ways to demonstrate
confidence in your ideas is to invest your personal time and money into it.
2. Personal Savings: Sourcing from your piggy bank is one of the easiest ways to
finance a small business.
3. Family and Friends: Family and friends have proven over time to be a resourceful
helpline for small business owners especially when you don’t have the track record to
convince a bank to lend you money.
4. Sell Personal Assets: Perhaps you may want to sell your stocks, real estate,
bonds, and other assets in order to raise money to fund your business.
5. Crowdfunding: Crowdfunding is another popular way of sourcing for funds; it
depends on a system of generating small investments from a large number of sources.
6. Angel Investing: Angel investing involves sourcing for funds from a high-net-worth
individual who is interested in supporting the business to grow and expand.
7. Venture Capital: Venture capital firms invest directly in budding companies in
exchange for equity stakes in the business.
 GENERIC SOURCES OF FUNDS FOR BUSINESSES
8. Business Incubators
Incubators support startups that are still in the early stages of building their
company. Most startups have an idea that can change the marketplace, but no
business model to transition from innovative idea to reality.
THANK YOU
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