SADHANA EDUCATION SOCIETYS

L. S. RAHEJA COLLEGE OF ARTS AND COMMERCE

SANTACRUZ (W), MUMBAI-400 054.

A PROJECT REPORT ON

SUCCESSFUL LEADERS AND THEIR LEADERSHIP STYLE

SUBMITTED BY

TANIA MANWANI

M.COM (SEM. III ): BUSINESS MANAGEMENT

(ORGANISATIONAL BEHAVIOUR)

SUBMITTED TO

UNIVERSITY OF MUMBAI

2016-2017

PROJECT GUIDE

PROF. KRIPA

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e-mail :lsraheja.mcom@gmail.com Tel. : 26609320 Website
: www.lsraheja.org.in

SADHANA EDUCATION SOCIETYS

L. S. RAHEJA COLLEGE OF ARTS AND COMMERCE
RE-ACCREDITED BY NAAC WITH A GRADE

Juhu Road, Santacruz (West), Mumbai 400 054.

DECLARATION BY THE STUDENT

I, TANIA MANWANI student of M Com Part-II Roll Number ___ hereby declare that the project for the

Paper ORGANISATIONAL BEHAVIOUR

SUCCESSFUL LEADERS AND THEIR LEADERSHIP STYLE submitted by me for Semester II during the

Academic Year 2016-17, is based on actual work carried out by me under the guidance and supervision

of PROF. kripa

I further state that this work is original and not submitted anywhere else for any examination.

Signature of Student

EVALUATION CERTIFICATE

This is to certify that the undersigned have assessed and evaluated the project on ORGANISATIONAL

BEHAVIOUR, Submitted by TANIA MANWANI, Student of M Com Part-II.

This project is original to the best of our knowledge and has been accepted for Internal Assessment.

Internal Examiner External Examiner Principal

Internal Assessment: Project 40 Marks

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 Name of the Student Class Division Roll

Number.
First name : Tania

Fathers Name: Tekchand M COM

PART II
Surname : Manwani

Subject: Organisational Behaviour

Topic for the Project:

Marks Awarded Signature

DOCUMENTATION
Internal Examiner
(Out of 10 Marks)
External Examiner

(Out of 10 Marks)

Presentation

(Out of 10 Marks)

Viva and Interaction

(Out of 10 Marks)

TOTAL MARKS (Out of 40)

L. S. RAHEJA COLLEGE OF ARTS & COMMERCE

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 ACKNOWLEDGEMENT

It is great pleasure for me to acknowledge the kind help and guideline received to me during the
project work. I was fortunate enough to get support from a large number of people to whom I
shall always remain grateful.

I would like to express my sincere gratitude to Professor KRIPA for giving me this opportunity
to undergo this lucrative project for her great guidance and advice on this project, without which
I will not be able to complete this project.

Signature

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Contents
1. Chapter One Introduction................................................................................................................... 6
1.1 Leadership ................................................................................................................................. 6
1.2 Importance of Leadership ......................................................................................................... 7
1.3 Qualities of a good leader ......................................................................................................... 8
1.4 Theories of Leadership............................................................................................................ 12
1.5 Leadership styles ..................................................................................................................... 17
2. Chapter Two - Case Study .................................................................................................................. 33
3. Chapter Three. Bibliography............................................................................................................... 40

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1. Chapter One Introduction

1.1 Leadership

"Leadership is a function of knowing yourself, having a vision that is well communicated, building
trust among colleagues, and taking effective action to realize your own leadership potential."

Prof. Warren Bennis

Leadership may be defined as a position of power held by an individual in a group, which

provides him with an opportunity to exercise interpersonal influence on the group members for
mobilizing and directing their efforts towards certain goals.

Leadership is an influential process. The leader is in a position to shape, regulate, control and
change the attitudes, behavior and performance of his group members. The latter are supposed
to comply with the formers desires and directives and partially suspend their own judgment and
discretion. There exists a particular relationship between the leader and his group members
which is characterised by interpersonal and social interaction.

In a group, the leader and his followers play the roles expected of them and thereby seek to
justify their respective positions. Some leaders may be able to play their role effectively whereby
they succeed in getting the willing cooperation and commitment of their followers, beyond the
normal call of duty.

Leadership provides direction for a company. Employees need to know the direction in which
they are headed and who to follow to reach the destination. Leadership involves showing
workers how to effectively perform their responsibilities and regularly supervising the
completion of their tasks. Leadership is also about setting a positive example for staff to follow,
by being excited about the work, being motivated to learn new things, and helping out as needed
in both individual and team activities.

As with most popular sayings, there is some truth in the adage, Great leaders are born, not
made. To some extent, the capacity for great leadership is innate. However, learning how to be

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a more effective leader is within everyones grasp whether you lead multiple teams, an entire
company or just one staff member.

1.2 Importance of Leadership

Leadership is an important function of management which helps to maximize efficiency
and to achieve organizational goals. The following points justify the importance of
leadership in an organisation:

1. Initiates action

Leader is a person who starts the work by communicating the policies and plans to the
subordinates from where the work actually starts.

2. Motivation

A leader proves to be playing an incentive role in the concerns working. He motivates

the employees with economic and non-economic rewards and thereby gets the work from
the subordinates.

3. Providing guidance

A leader has to not only supervise but also play a guiding role for the subordinates.
Guidance here means instructing the subordinates the way they have to perform their
work effectively and efficiently.

4. Creating confidence

Confidence is an important factor which can be achieved through expressing the work
efforts to the subordinates, explaining them clearly their role and giving them guidelines
to achieve the goals effectively. It is also important to hear the employees with regards to
their complaints and problems.

5. Building morale

Morale denotes willing co-operation of the employees towards their work and getting
them into confidence and winning their trust. A leader can be a morale booster by
achieving full co-operation so that they perform with best of their abilities as they work
to achieve goals.

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 6. Builds work environment

Management is getting things done from people. An efficient work environment helps in
sound and stable growth. Therefore, human relations should be kept into mind by a
leader. He should have personal contacts with employees and should listen to their
problems and solve them. He should treat employees on humanitarian terms.

7. Co-ordination

Co-ordination can be achieved through reconciling personal interests with organizational

goals. This synchronization can be achieved through proper and effective co-ordination
which should be primary motive of a leader.

1.3 Qualities of a good leader

An effective leader has certain, basic, visionary, characteristics. The aim of a strong leader is to
translate their vision into reality. Here are a few of the qualities and traits of great leaders that
you can learn and practice:

Self-assessment:
Rather than clinging to the false belief that they can do it all, great leaders hire people
who complement, rather than supplement, their skills. Working on your areas of
weaknesses will improve your leadership ability and recognizing them makes you more
human.
Empathy:
Creating a legitimate rapport with your staff makes it less likely that personal issues and
resentment can creep in and derail the group. When your team knows that you are
empathetic to their concerns, they will be more likely to work with you and share in your
vision, rather than foster negative feelings.

Consistency:

Being a consistent leader will gain you respect and credibility, which is essential to
getting buy-in from the group. By setting an example of fairness and credibility, the team
will want to act the same way.

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 Honesty:

Those who are honest, especially about concerns, make it far more likely that obstacles
will be addressed rather than avoided. Honesty also allows for better assessment and
growth.

Direction:

Having the vision to break out of the norm and aim for great things --then the
wherewithal to set the steps necessary to get there-- is an essential characteristic of good
leadership. By seeing what can be and managing the goals on how to get there, a good
leader can create impressive change.

Communication: Effective communication helps keep he team working on the right

projects with the right attitude. If you communicate effectively about expectations, issues
and advice, your staff will be more likely to react and meet your goals.

Flexibility: Not every problem demands the same solution. By being flexible to new
ideas and open-minded enough to consider them, you increase the likelihood that you will
find the best possible answer. You will set a good example for your team and reward
good ideas.

Conviction: A strong vision and the willingness to see it through is one of the most
important characterizes of leadership. The leader who believes in the mission and works
toward it will be an inspiration and a resource to their followers.

Risk-Taker

An effective leader attempts to bring about great changes. These changes are not without
risks. Facing changes and challenges, as we get older is a part of life. How we deal with
changes and challenges reflects on who we are and how we will grow as a leader.

A strong leader is very creative. They will try new approaches even if it presents
possible failure. Effective leaders recognize that failure is only a temporary setback that
gives a clear understanding of what not to do in the future. The overall attitude of a risk-

Self-control

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 Strong leaders know that their ability to stay calm, even in the worst of conflicts, is a
character trait that must be nurtured and grown. The effective leaders mantra is, When
you lose your temper, you lose.

Self-control will determine what is most important.

Caring Individual

Strong leadership can never take place if those we lead think we do not care. Leaders
should show a caring attitude about the mission of their organization. However, their
concern for each individual team member must take priority over everything else.

When a leader cares about those they lead they show behavior that is consistently
acknowledging others. A effective leader who cares, is one who maintains eye contact
during a conversation. This type of leader asks many questions and listens more than
they talk. A caring leader desires the feedback and opinions of those they lead.

Modest

Self-evaluation is a strong characteristic of an effective leader. A good leader does not

have mind being evaluated or receiving criticism in fact takes it very positively.

Balanced

A good leader knows how to balance. They understand that to do well they must keep
up good health, physically, spiritually, emotionally and mentally.

Resolute

A strong leader must make wise decisions. They must also be willing to listen to wise
counsel. A strong leader is determined and admirably purposeful. There is a strong
character of unwavering determination.

The word resolute describes a characteristic of firmness and determination. This type of
person is clear especially in purpose and belief. A resolute leader can also be
characterized by quickness.

Motivational

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 A motivational leader enjoys their task. They are optimistic about their purpose. Change
requires taking risks, personal growth and challenges. A motivational leader does not
back down from a challenge but is willing to lead the way as an inspirational leader.

Clear Communicator

It is important to understand that communication is not solely conversation. A

good communicator aims to make sure that their message is understood. The skill of
communication is grown upon the skill of listening. Listening is as important as talking.
An effective leader listens more than they talk.

Visionary

A leader must be a dreamer.A productive leader is someone who can see into the
future. The challenge for every visionary leader is not to get so far ahead of the team in
what they see that they leave them behind. This behavior causes a team to feel lost and
wondering about the future direction. A visionary is a dreamer but they are also a strong
communicator of their dream.

Effective leadership has certain, basic, visionary, characteristics. The aim of a strong
leader is to translate their vision into reality.

Sense of Humor

Good leaders take their work seriously. However, they do not mind laughing at
themselves. A healthy leader does not have a problem in finding humor in their mistakes
or blunders. A productive leader knows that laughter is good for the soul. A humorous
person can lead a team even through the most challenging times.

Ethical

A strong leader has a strong moral base. There is no question about their
character. What you see is what you get. There is nothing more defeatist than a
dishonest or lying leader. A strong leader has strong convictions.

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 Ethical living and leadership will take courage and conviction. It means doing the right
thing, even when the right thing isnt popular or easy to accomplish. That is what that sets
a leader apart from the rest.

1.4 Theories of Leadership

There are as many different views of leadership as there are characteristic that distinguish
leaders from non-leaders. While most research today has shifted from traditional trait or
personality-based theories to a situation theory, which dictates that the situation in which
leadership is exercised is determined by the leadership skills and characteristics of the
leader, all contemporary theories can fall under one of the following three perspectives:
leadership as a process or relationship, leadership as a combination of traits or personality
characteristics, or leadership as certain behaviors or, as they are more commonly referred
to, leadership skills. In the more dominant theories of leadership, there exists the notion
that, at least to some degree, leadership is a process that involves influence with
a group of people toward the realization of goals.

Charry (2012), noting that scholarly interest in leadership increased significantly during
the early part of the twentieth century, identified eight major leadership theories. While
the earlier of these focused on the qualities that distinguish leaders from followers, later
theories looked at other variables including situational factors and skill levels. Although
new theories are emerging all of the time, most can be classified as one of Charrys eight
major types:

Great Man Theory (1840s)

The Great Man theory evolved around the mid 19th century. Even though no one was
able to identify with any scientific certainty, which human characteristic or combination
of, were responsible for identifying great leaders. Everyone recognized that just as the
name suggests; only a man could have the characteristic (s) of a great leader.

These theories often portray leaders as heroic, mythic and destined to rise to leadership
when needed. The term great man was used because, at the time, leadership was thought
of primarily as a male quality, especially military leadership. The Great Man theory
assumes that the traits of leadership are intrinsic. That simply means that great leaders are

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 born, they are not made. This theory sees great leaders as those who are destined by birth
to become a leader. Furthermore, the belief was that great leaders will rise when
confronted with the appropriate situation. The theory was popularized by Thomas
Carlyle, a writer and teacher. Just like him, the Great Man theory was inspired by the
study of influential heroes. In his book "On Heroes, Hero-Worship, and the Heroic in
History", he compared a wide array of heroes.

In 1860, Herbert Spencer, an English philosopher disputed the great man theory by
affirming that these heroes are simply the product of their times and their actions the
results of social conditions.

2.2. Trait Theory

The trait leadership theory believes that people are either born or are made with certain
qualities that will make them excel in leadership roles. That is, certain qualities such as
intelligence, sense of responsibility, creativity and other values puts anyone in the shoes
of a good leader.

The trait theory of leadership focused on analyzing mental, physical and social
characteristic in order to gain more understanding of what is the characteristic or the
combination of characteristics that are common among leaders.

There were many shortfalls with the trait leadership theory. However, from a psychology
of personalities approach, Gordon Allport's studies are among the first ones and have
brought, for the study of leadership, the behavioural approach.

In the 1930s the field of Psychometrics was in its early years.

Personality traits measurement weren't reliable across studies.

Study samples were of low level managers

Explanations weren't offered as to the relation between each characteristic and its impact
on leadership.

The context of the leader wasn't considered.

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Many studies have analyzed the traits among existing leaders in the hope of uncovering
those responsible for ones leadership abilities. In vain, the only characteristics that were
identified among these individuals were those that were slightly taller and slightly more
intelligent.

Contingency Theories

To a certain extent contingency leadership theories are an extension of the trait theory, in
the sense that human traits are related to the situation in which the leaders exercise their
leadership. It is generally accepted within the contingency theories that leader are more
likely to express their leadership when they feel that their followers will be responsive.

Contingency theories of leadership focus on particular variables related to the

environment that might determine which style of leadership is best suited for a particular
work situation. According to this theory, no single leadership style is appropriate in all
situations. Success depends upon a number of variables, including leadership style,
qualities of followers and situational features.

A contingency factor is thus any condition in any relevant environment to be considered

when designing an organization or one of its elements. Contingency theory states that
effective leadership depends on the degree of fit between a leaders qualities and
leadership style and that demanded by a specific situation . The Contingency Leadership
theory argues that there is no single way of leading and that every leadership style should be
based on certain situations.

Situational Theory

Situational theory proposes that leaders choose the best course of action based upon
situational conditions or circumstances. Different styles of leadership may be more
appropriate for different types of decision-making. For example, in a situation where the
leader is expected to be the most knowledgeable and experienced member of a group, an
authoritarian style of leadership might be most appropriate. In other instances where
group members are skilled experts and expect to be treated as such, a democratic style
may be more effective.

Behavioural Theory

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In reaction to the trait leadership theory, the behavioural theories are offering a new
perspective, one that focuses on the behaviours of the leaders as opposed to their mental,
physical or social characteristics. The behavioural theories first divided leaders in two
categories. Those that were concerned with the tasks and those concerned with the
people. Throughout the literature these are referred to as different names, but the essence
are identical

Thus, with the evolutions in psychometrics, notably the factor analysis, researchers were
able to measure the cause an effects relationship of specific human behaviours from
leaders. From this point forward anyone with the right conditioning could have access to
the once before elite club of naturally gifted leaders. In other words, leaders are made not
born.

Behavioural theories of leadership are based on the belief that great leaders are made, not
born. This leadership theory focuses on the actions of leaders not on intellectual qualities
or internal states.

Participative Theory

Participative leadership theories suggest that the ideal leadership style is one that takes
the input of others into account. Participative leaders encourage participation and
contributions from group members and help group members to feel relevant and
committed to the decision-making process. A manager who uses participative leadership,
rather than making all the decisions, seeks to involve other people, thus improving
commitment and increasing collaboration, which leads to better quality decisions and a
more successful business.

Transactional/Management Theory

Transactional theories, also known as management theories, focus on the role of

supervision, organization and group performance and the exchanges that take place
between leaders and followers. For the transactional theories to be effective and as a
result have motivational value, the leader must find a means to align to adequately reward
(or punish) his follower, for performing leader-assigned task. In other words,

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transactional leaders are most efficient when they develop a mutual reinforcing
environment, for which the individual and the organizational goals are in sync.

The transactional theorists state that humans in general are seeking to maximize
pleasurable experiences and to diminish un-pleasurable experiences. Thus, we are more
likely to associate ourselves with individuals that add to our strengths.

Relationship/Transformational Theory

Relationship theories, also known as transformational theories, focus on the connections

formed between leaders and followers. In these theories, leadership is the process by
which a person engages with others and is able to create a connection that results in
increased motivation and morality in both followers and leaders.

The essence of transformational theories is that leaders transform their followers through
their inspirational nature and charismatic personalities. Rules and regulations are flexible,
guided by group norms. These attributes provide a sense of belonging for the followers as
they can easily identify with the leader and its purpose.

Relationship theories are often compared to charismatic leadership theories in which

leaders with certain qualities, such as confidence, extroversion, and clearly stated values,
are seen as best able to motivate followers. Relationship or transformational leaders
motivate and inspire people by helping group members see the importance and higher
good of the task. These leaders are focused on the performance of group members, but
also on each person to fulfilling his or her potential. Leaders of this style often have high
ethical and moral standards.

Skills Theory

This theory states that learned knowledge and acquired skills/abilities are significant
factors in the practice of effective leadership. Skills theory by no means refuses to
acknowledge the connection between inherited traits and the capacity to lead effectively,
but argues that learned skills, a developed style, and acquired knowledge, are the real
keys to leadership performance. A strong belief in skills theory often demands that
considerable effort and resources be devoted to leadership training and development.

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 1.5 Leadership styles

Leadership styles are the approaches used to motivate followers. Leadership is not a one size
fits all phenomenon. Leadership styles should be selected and adapted to fit organizations,
situations, groups, and individuals. It is thus useful to possess a thorough understanding of the
different styles as such knowledge increases the tools available to lead effectively.

Autocratic Style

Autocratic leadership also known as authoritarian leadership, is a leadership style

characterized by individual control over all decisions and little input from group members.
Autocratic leaders typically make choices based on their ideas and judgments and rarely accept
advice from followers. Autocratic leadership involves absolute, authoritarian control over a
group.

Like other leadership styles, the autocratic style has both benefits and weaknesses.

Characteristics of Autocratic Leadership

Some of the primary characteristics of autocratic leadership include:

Little or no input from group members

Leaders make the decisions

Group leaders dictate all the work methods and processes

Group members are rarely trusted with decisions or important tasks

Benefits of Autocratic Leadership

Autocratic leadership can be beneficial in some instances, such as when decisions need to be
made quickly without consulting with a large group of people. Some projects require strong
leadership to get things accomplished quickly and efficiently. When the leader is the most
knowledgeable person in the group, the autocratic style can lead to fast and effective decisions.

In situations that are particularly stressful, such as during military conflicts, group members may
prefer an autocratic style.

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It allows members of the group to focus on performing specific tasks without worrying about
making complex decisions. This also allows group members to become highly skilled at
performing certain duties, which is ultimately beneficial to the success of the entire group.

Downsides of Autocratic Leadership

While autocratic leadership can be beneficial at times, there are also many instances where this
leadership style can be problematic. People who abuse an autocratic leadership style are often
viewed as bossy, controlling and dictatorial, which can lead to resentment among group
members.

Because autocratic leaders make decisions without consulting the group, people in the group may
dislike that they are unable to contribute ideas. Researchers have also found that autocratic
leadership often results in a lack of creative solutions to problems, which can ultimately hurt the
group from performing. Autocratic leaders tend to overlook the knowledge and expertise that
group members might bring to the situation.

Failing to consult with other team members in such situations hurts the overall success of the
group.

Autocratic leadership can also impair the morale of the group in some cases. People tend to feel
happier and perform better when they feel like they are making contributions to the future of the
group. Since autocratic leaders typically do not allow input from team members, followers start
to feel dissatisfied and stifled.

While autocratic leadership does have some potential pitfalls, leaders can learn to use elements
of this style wisely. For example, an autocratic style can be used effectively in situations where
the leader is the most knowledgeable member of the group or has access to information that other
members of the group do not. Instead of wasting valuable time consulting with less
knowledgeable team members, the expert leader can quickly make decisions that are in the best
interest of the group.

Autocratic leadership is often most effective when it is used for specific situations. Balancing
this style with other approaches including democratic or transformational styles can often lead to
better group performance.

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Bureaucratic Style

Bureaucratic leadership is one of the oldest forms of leadership and probably the earliest of all
management styles. It dates back to the first world rulers, including Genghis Khan and Julius
Caesar. In order to govern huge territories, these leaders were forced to create rules, regulations
and hierarchies that were easily replicable.

Bureaucratic leaders rely on rules and regulations and clearly defined positions within
organizations. They tend to be people who are well organized. People in bureaucratic leadership
are likely to report only to their immediate supervisor or, in the case of a president or CEO of a
company, to the board of directors. Stepping out of the organizational role they play is difficult
for them.

Employees in bureaucracies are promoted based on their ability to conform to the rules.
Bureaucratic leadership is based on strict hierarchies and often depends on written job
descriptions and organization charts to explain the hierarchy and their relationships.

Benefits

1. Control by the Alpha

In anthropology and sociology, the leader (the alpha) is a male or female at the top of the
structure. The term alpha is used to signify that person as the most dominant member (or animal
in the case of social mammals). All others are expected to submit and obey. We say that
the heads of states and CEOs function as alphas.

This is good since it enables coordinated action by tribes, nation-states and corporations by the
leadership top people in the hierarchy. And if the alpha is competent, things get done.

2. Functional Specialization

You can divide groups of individuals into special functions based on expertise or purpose. Some
examples include as marketing, strategic planning, quality, human resources, engineering and so
on. Functional specialists exert influence primarily through their use of expertise.

3. A Well-Defined Dominance Hierarchy

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Authority serves as the primary means of influence for those in the higher levels to influence
those in the lower levels of the hierarchy. Authority is symbolically conveyed by title and level
of position on the organization chart. Tribal knowledge is not the rule in bureaucracy. Its easy to
tell the degree of bureaucracyjust count the thousands of pages of policies and procedures

4. Numerous Written Procedures & Policies

This eases on-the-job training requirements since Joes boss doesnt have to coach and mentor,
he can just give the four-inch policy and procedures manual so Joe can learn the job.

5. Control by Policy

On of the major reasons top management love bureaucracy is a simple one it allows them to
control the actions of thousands, thousands of miles from the head office. Authority is typically
conveyed through the use of policy and through regulations.

6. Stability & Order

Bureaucracies commonly assume the external environments dont change; and therefore, internal
organizational structure doesnt have to change either.

7. Competence Based Promotion Systems

Promotion systems are designed to stress competency. Contrary to popular belief, higher level
managers is large organizations are generally competentgenerally but not always. Of course,
merit is not the only factor in promotion, some large organizations have promotion systems
based on seniority.

Benefits of Bureaucracy

1. Systematization

Since there is a chain of command, there will be specific roles and tasks for people involved in
the departments. This way, management will be able to monitor the performance of the people in
lower ranks. Also, with strict regulations and policies that need to be observed, there is a big
possibility that duties will be carried out in a systematic and timely manner.

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2. It supports the hiring of specialized officials

Supporters of bureaucracy prefer the idea of designating appointed officials who have the
educational background and expertise on the agency they will assigned to. These bureaucrats
also have the training and skills particular to their designation. This ensures these non-elective
members know what they are doing and will be able to maximize their knowledge and apply
their skills. As a result, tasks are effectively carried out

3. Standard Operating Procedure

Proponents of bureaucracy look at these formalized rules to bring about efficiency and
predictability in results. In this set-up, officials are to follow instructions and procedures step by
step in handling tasks and situations. This way, outcomes will be within the specified range.

4. It sets no room for favoritism

People in favor of bureaucracy claim that with the regulations and procedure to be followed in
order to achieve results, the risks of favoring some individuals over others will be minimal if not
none at all.

5. Merit-based hiring and promotion

For a non-elective member of a government agency, he or she should be qualified and pass the
qualifying exams to be employed or appointed as well as climb the hierarchy. This means that
whoever is appointed has the knowledge, expertise and skills to handle the job.

6. Important role in policy making

Although civil servants do not make policies, they gather the data forwarded to the political
executive. They are also responsible for formulating several alternative policies and determine
the pros and cons of each. In turn, the political executive will choose one policy which will then
be used as an alternative.

Downsides of Bureaucracy

1. It can hamper achievement of results in time

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Critics are arguing that with the certain steps needed to carry out tasks and the need to follow a
chain of command to proceed, lots of time can be lost especially if decisions and results are
needed immediately.

2. It breeds boredom and can affect productivity

Opponents are criticizing the repetitive tasks in specialized jobs. They claimed that in time, it can
bore members of the organization or agency. They added that even in a business which uses
bureaucracy, employees might not be able to withstand doing the same work daily. The routine
might just be too much from them and may result to absenteeism and less productivity.

3. It results to passive and rule-based human beings

Another disadvantage being pointed out by some people who do not like a bureaucratic structure
say that the strict rules and regulations imposed in bureaucracies seem to remove the freedom of
an individual to act and discern on his or her own because of certain restrictions. This, according
to some, is not beneficial.

4. It can result to inefficiency

In bureaucracy, there is less competition since hiring and promotion is based on merits and
qualifications. Moreover, once a civil servant is appointed, he or she has a fixed salary, works on
specialized tasks and cannot function outside the sphere of the department he or she belongs to.

Conclusion

A bureaucracy structure might be considered ineffective by critics but there are also valid
arguments posited by supporters. Other countries run well with bureaucrats but there are also
obvious flaws within the structure which make others critical about it. But the fact still remains,
bureaucracy exists and is here to stay.

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Consultative style

Consultative leadership style, as the term implies, leader is willing to consult the group and
encourages his subordinates to present their opinions for decision making process creating an
environment of openness and conviction. Owing to this style, there establishes two way method
of communication which leads to reach the conclusions as smoothly as possible. In other words,
it is seeking win-win solutions opening the doors of opinion to the talented employees. Since a
great concern of their leader to his subordinates is manifested by this method, the employees
develop the sense of confidence and their morale is enhanced accordingly.

When a manager takes into account the various views and opinions of everyone in the team or at
least those who are connected with a decision or process, it is called consultative management.
Consulting every stakeholder is not just right but also a wise practice. One never knows who can
have the next big idea or the ideal solution to an impending problem. A manager or leader cannot
always have the best solution or the best way forward. It is quite possible that someone in the
team or someone in any specific niche will have a better suggestion, idea and resolution or may
just have a modified version of what the leader or manager may have already thought.

The power of making decisions still rests with the manager and no one has any veto but the
leader does discuss issues, problems and even solutions, ideas and plans with relevant team
members.

Benefits

Talented employees seek their own ways to strengthen their professionalism owing to the
consultative direction.

Consultation often paves the way for better solutions.

Managers and leaders are less likely to commit mistakes when they factor in contrasting opinions
and various options. When someone is the sole decision maker and is only guided by his or her
thoughts, the room for error is pretty huge.

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A major advantage of this style of management is that employees or team members feel
motivated and they feel involved in the larger scheme of things. They feel valued and they think
of themselves as an integral part of the team who can make a serious contribution

Downsides

Time consuming to reach the conclusions and the subordinates may dominate or it may be that
they may cause disruptions.

The problem with consultative management style is that it can create confusion and
indecisiveness.

If a manager or leader is not very decisive and doesnt have faith in ones standpoint then
consultations can easily compel the manager or leader to doubt his or her decisions, to question
his or her abilities and the whole process of consultation itself can be never ending. Consultative
management style can often lead to conflicting and chaotic handling of situations.

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Participative Style

Participative Management refers to as an open form of management where employees are

actively involved in organizations decision making process. The concept is applied by the
managers who understand the importance to human intellect and seek a strong relationship with
their employees. They understand that the employees are the facilitators who deal directly with
the customers and satisfy their needs. To beat the competition in market and to stay ahead of the
competition, this form of management has been adopted by many organizations. They welcome
the innovative ideas, concepts and thoughts from the employees and involve them in decision
making process.

Participative Management can also be termed as Industrial Democracy, Co-

determination, Employee Involvement as well as Participative Decision Making. The
concept of employee participation in organizations decision making is not new. However, the
idea couldnt gain that much popularity among organizations.

Studies have shown that only 3-5 percent of organizations have actually implemented this
concept in their daily operations. Though the theory of participative management is as old as the
institution of employees and employers still it is not applied by a large proportion of
organizations.

The idea behind employee involvement at every stage of decision making is absolutely straight.
Open and honest communication always produces good results both for organization as well as
workers. Freedom and transparency in companys operations take it to the next level and
strengthens the basis of the organization. On the other hand, there are several companies that
straightway rule out the possibility of participative decision making process. According to them,
employees misuse their freedom of expression and participation in decision making as it
provides higher status to employees and empowers them.

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Benefits of Participative Management

Undoubtedly participative approach to management increases the stake or ownership of

employees. But there is more to it. The following points elucidate the same.

Increase in Productivity

An increased say in decision making means that there is a strong feeling of association
now. The employee now assumes responsibility and takes charges. There is lesser new or
delegation or supervision from the manager. Working hours may get stretched on their
own without any compulsion or force from the management. All this leads to increased
productivity.

Job Satisfaction

In lots or organizations that employ participative management, most of the employees are
satisfied with their jobs and the level of satisfaction id very high. This is specially when
people see their suggestions and recommendations being implemented or put to practice.
Psychologically, this tells the individual employee that, he too has a say in decision
making

Motivation

Increased productivity and job satisfaction cannot exist unless there is a high level of
motivation in the employee. The vice versa also holds true. Decentralized decision
making means that everyone has a say and everyone is important.

Improved Quality

Since the inputs or feedback comes from people who are part of the processes at the
lowest or execution level. This means that even the minutest details are taken care of and
reported. No flaw or loophole goes unreported

Reduced Costs

There is a lesser need of supervision and more emphasis is laid on widening of skills, self
management. This and quality control means that the costs are controlled automatically.

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Downsides of Participative Management

There is a flip side to everything; participative management stands no exception to it. Whereas
this style of leadership or decision making leads to better participation of all the employees, there
are undoubtedly some disadvantages too.

Decision making slows down

Participative management stands for increased participation and when there are many
people involved in decision making, the process definitely slows down. Inputs and
feedback starts pouring from each side. It takes time to verify the accuracy of
measurements which means that decision making will be slowed down.

Security Issue

The security issue in participative management also arises from the fact that since early
stages too many people are known to lots of facts and information. This information may
transform into critical information in the later stages. There is thus a greater apprehension
of information being leaked out.

The advantages seem to outnumber the disadvantages. This however is no assurance that one
should blindly adopt it for his/her organization. Organizations are different and therefore the
culture, the human resources. A deep understanding of both is required in order to ascertain a
decision making style and adopt the same.

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Laissez -faire style

First described by Lewin, Lippitt, and White in 1938, the laissez faire leadership style was one of
three leadership types documented. The laissez faire style is sometimes described as a "hands
off" leadership style because the leader provides little or no direction to the followers.

Laissez-faire leadership, also known as delegative leadership, is a type of leadership style in

which leaders are hands-off and allow group members to make the decisions. Researchers have
found that this is generally the leadership style that leads to the lowest productivity among group
members.

Characteristics of Laissez-Faire Leadership

Laissez-faire leadership is characterized by:

Very little guidance from leaders

Complete freedom for followers to make decisions

Leaders provide the tools and resources needed

Group members are expected to solve problems on their own

Power is handed over to followers, yet leaders still take responsibility for the groups
decisions and actions

Benefits

Like other leadership styles, the delegative style has both a number of benefits and shortcomings.
Laissez-faire leadership can be effective in situations where group members are highly
skilled, motivated and capable of working on their own. Since these group members are experts
and have the knowledge and skills to work independently, they are capable of accomplishing
tasks with very little guidance.

The delegative style can be particularly effective in situations where group members are actually
more knowledgeable than the group's leader. Because team members are the experts in a
particular area, the laissez-faire style allows them to demonstrate their deep knowledge and skill
surrounding that particular subject.

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This autonomy can be freeing to some group members and help them feel more satisfied with
their work. The laissez-faire style can be used in situations where followers have a high-level of
passion and intrinsic motivation for their work.

While the conventional term for this style is 'laissez-faire' and implies a completely hands-off
approach, many leaders still remain open and available to group members for consultation and
feedback.

Downside

Laissez-faire leadership is not ideal in situations where group members lack the knowledge or
experience they need to complete tasks and make decisions. Some people are not good at setting
their own deadlines, managing their own projects and solving problems on their own. In such
situations, projects can go off-track and deadlines can be missed when team members do not get
enough guidance or feedback from leaders.

In some situations, the laissez-faire style leads to poorly defined roles within the group. Since
team members receive little to no guidance, they might not really be sure about their role within
the group and what they are supposed to be doing with their time.

Laissez-faire leaders are often seen as uninvolved and withdrawn, which can lead to a lack of
cohesiveness within the group. Since the leader seems unconcerned with what is happening,
followers sometimes pick up on this and express less care and concern for the project.

Some leaders might even take advantage of this style as a way to avoid personal responsibility
for the group's failures.

When goals are not met, the leader can then blame members of the team for not completing tasks
or living up to expectations.

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Situational leadership

Leaders are role models who influence the culture, values, thoughts and actions of the
organization and its people. The leadership style practiced by managers greatly influences the
performance and productivity at the work place. The situation leadership model encourages
managers to flexibly use their leadership style based on the situation and thus achieve effective
results. Both at the middle managerial level where leaders work closely with people and at higher
managerial level where leaders are responsible to a number of people, their approach has an
impact on the motivational levels of the organization.

A leader needs to constantly inform him/herself of the motivational needs of the employees,
one of simple factors of success cited in the organizations is a motivated workforce.

Situational Leadership has all the more relevance when teams work together especially across
functions or locations. In these cases the team members might be physically separated from the
leaders and the work situations might rapidly change, in such cases, maintaining the involvement
and motivation level of team members becomes important. To create a high performance team
that works effectively, the style that the leader would have to choose may be unique for each
team.

Apart from this, a leader has to provide a vision to the people; it is the visions which help them
direct and redirect their efforts towards it. In the recent times where changes are rapid in the
organizations, the leaders have to be fully sensitized to what style would work the best,

The leadership style also has a bearing when leaders are to act as mentors and coaches for their
subordinates. The learning style of the subordinates can be interpreted in the terms of Telling,
Selling, Participating and Delegating. Some subordinates learn when they know exactly what is
to be done, some learn when they know the importance of the task, some learn when they
understand the how of what is to be done, and ultimately some learn when they are actually
allowed to perform the task. When a leader acts as a coach he/she has to keep in mind what
works best for his employees and the fact that what works for one might or might not work for
the other.

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Paternalistic Style:

The paternalistic style aims at creating a family atmosphere and is followed in Japanese
organizations. Paternalistic style of a leader creates a family atmosphere in the organisation. He
acts just like a parent of his subordinates. He advises, guides and helps his subordinates with
their personal problems. This style of leadership will be successful in a small organisation having
a very few employees and only one leader.

Following are the characteristics of this type of leadership:

1. The leaders consider themselves as a parent figure.

2. They may consult the subordinates.

3. They finally take the decision which they deem best for the group.

4. They also take up the responsibility of the decision taken.

Sociocratic Style:

This style of leader runs the organization like a social club. The sociocratic leader tries to run the
organisation just like a Social Club. He gives less importance to production and more importance
to friendship. That is, he tries to keep his subordinates very happy. So, he creates a warm and
good social environment. For such a leader, the interest of the subordinates come first and then
that of the organization.

Following are its characteristics:

1. The leader takes the decision keeping in mind the interest of the subordinates.

2. The leader consults the subordinates.

3. The leader tries to create a social atmosphere.

Neurocratic Style:

This style is an aggressive type of leadership. Neurocratic leader is highly a task oriented one. He
wants to get the work done at any cost. He gets very upset if there is any failure. He is very

31
emotional, sensitive and eccentric. He does not consult his subordinates in decision making. He
takes his own decisions.

The leader is highly task oriented. Following are its characteristics:

1. Neurocratic leaders are sensitive, emotional, and eccentric.

2. They take decisions by themselves.

3. They shift the responsibility to subordinates in case of failure.

32
2. Chapter Two - Case Study
INDIAN ENTREPRENEUR ADI BURJORJI GODREJ

The challenge of the future is to use our brand image and success, while simultaneously
creating a modern, efficient, young and consumer-centric organization which can create a
momentum of growth in the future.
Adi Godrej in an interview with The Indian Express

Introduction

Adi Burjorji Godrej (born 3 April 1942), is an Indian industrialist and businessman, head of
the Godrej family, and chairman of the Godrej Group. He is the chairman of Godrej Group. .Adi
Godrej was born in a business family. His father's name was Burjorji Godrej and his mother's
name was Jai Godrej.

Adi Godrej, the third-generation scion of the Godrej family, who came into the family business
nearly five decades ago, is one of Indias most outspoken businessmen, and a name synonymous
with philanthropy, innovation, and environmental-friendly initiatives and technologies. Amidst a
flurry of corporate scandals engulfing some of Indias prominent businessmen, Godrejs
businesses today stand on a pedestal, courtesy of the old-fashioned way of doing business
through hard work and savvy brand-building.

As of 2015, he is the 405th richest person in the world with a net worth of US$4.0 billion.

Adi Godrej left India at the age of 17 to enroll at the Massachusetts Institute of Technology.
Though he planned to study mechanical engineering but he later on switched to management.
After his return to India, Adi Godrej joined the family business. He modernized and systematized
management structures and implemented process improvements. Adi Godrej took the Godrej
Group to great height during controlled economy era. After the liberalization process, Adi
Godrej restructured company's policies to meet the challenges of globalisation.

33
Qualifications

Godrej received his undergraduate degree from HL college and his MBA from the MIT Sloan
School of Management, where he was a member of the Pi Lambda Phi fraternity and a member
of Tau Beta Pi.

Personality

Adi Godrej is one of the icons of Indian Industry. Adi Godrej was born in a business
family. His father's name was Burjorji Godrej and his mother's name was Jai Godrej.
He was a management student & receives his MBA from the MIT Sloan School of
Management.
Adi is a person who moves with generation.
When he joint his family business the first thing he did is, he modernized and
systematized management structures and implemented process improvements.
After the liberalization process, Adi Godrej restructured company's policies to meet the
challenges of globalization.
He is a personality who acts as the chairman for Godrej Group & several entities and also
who is director of numerous firms.
He is responsible for shaping the long term strategy for these firms and driving a focus on
value creation.
Adi Godrej took the Godrej Group to great height during controlled economy era.

34
Leadership Style

Current leadership style of Adi Godrej is:

1) Delegative
2) Participative
3) Authoritative

Till a few years ago, I didnt really listen to what others had to say. I have tried to change
that. Now, I make an effort to listen carefully when a suggestion is made, or when someone is
making a point

Adi Godrej in an interview

In words of Tanya Dubash he was earlier very much authoritative as He knew the business
better than anyone and was quite controlling; he would micro-manage. That was his leadership
style. But that has changed now, as he delegates a lot more, gives advice only when asked for
and is more of a mentor, she adds. Earlier, when he was angry, he would almost yell at
someone and get things done. Now, he is calmer and understands the situation if something goes
wrong, says her father has grown to become a better listener as well. His advice to his daughter
Tanya when she joined the company was simple to be the person you want everyone to be.
In all these years, I havent seen him make unreasonable demands or get upset without a
reason,

Creativity

Adi Godrej was creative as the first thing he did after join the business, that he
modernized and systematized management structures and implemented process
improvements.

Adi Godrej took the Godrej Group to great height during controlled economy era.

He restructured company's policies to meet the challenges of globalisation.

35
 By 2000, he restructured each business with a CEO & COO from outside the godrej
family.

By this creativity idea of ADI GODREJ of restructuring business management took

business group to great height during the control economy era.

Godrej helps preserve Mumbai mangroves

At a time when Mumbai's mangroves along the Arabian Sea coastline are vanishing, a
stretch preserved by the corporate giant Godrej continues to flourish. The mangroves that
were once an intrinsic part of coastal suburbs like Bandra, Goregaon, Malad and
Kandivali have been swallowed up by highrise apartments. But that is not the case in
Vikhroli, where the Godrej Group is taking care of 1,750 acres of mangroves adjoining
their industrial, commercial and residential township of Pirojshanagar.

Adi Godrej, chairman of the Godrej Group, told The Sunday Guardian that the company
has been preserving and protecting these mangroves for over 65 years.

Mangroves being flood buffers help in stabilising the climate by moderating temperature,
humidity, wind and even waves. Known to flourish even in poor quality soil, mangroves
protect land from the impact of the sea.

The vast mangroves of Pirojshanagar include over 16 species of mangroves and their sub-
varieties. They are also home to birds like flamingos, gulls, avocets and curlews, among
others. "The wildlife in the mangroves includes jackals, flamingos, snakes and many
species of fish and birds," Godrej said.

The mangroves are home to birds like flamingos, gulls, avocets and curlews.

The Soonabai Pirojsha Godrej Marine Ecology Centre works towards caring for these
mangroves. The centre also conducts programmes for mangrove preservation like regular
monitoring to keep a check on miscreants and protecting rare species of fauna. The
ecological restoration of dead and degraded mangroves is conducted by raising nurseries
and through artificial regeneration.

The Godrej Group has set up a Mangrove Interpretation Centre to create awareness
through films, seminars, nature camps and exhibitions.

36
 Adi Godrej said that they encourage trips by school children to view these mangroves and
the wildlife.

"The Godrej Group spends about 150,000 per year towards protecting these
mangroves," he said. He refused to give his views on the many projects sanctioned by
the Centre mining, thermal and nuclear power projects that are facing opposition
from different sectors because of the harm caused by them to the ecosystem.

These mangroves are known as the second largest green lung of Mumbai. The largest
green lung is the Sanjay Gandhi National Park spread over 9,000 hectares in Borivali.

Awards

Over the years, he has been a recipient of several awards and recognitions:

Rajiv Gandhi Award, 2002.

The American India Foundation (AIF) Leadership in Philanthropy Award, 2010.
The Entrepreneur of the Year, Asia Pacific Entrepreneurship Awards, 2010.
Best Businessman of the Year, GQ Men of the Year Awards, 2010.
AIMA-JRD Tata Corporate Leadership Award, 2010.
Bombay Management Association Management Man of the Year Award, 2010-2011.
Qimpro Platinum Standard Award for Business, 2011.
Ernst & Young Entrepreneur of the Year, 2012.
Padma Bhushan, 2012.
The Asian Awards Entrepreneur of the Year, 2013.
All India Management Association-Business Leader of the Year, 2014.

The Passionate Philanthropist

Major supporter of the World Wildlife Fund in India.

Has developed a Green Business Campus in Vikhroli Township of Mumbai.

School for the Children of company employees.

37
Conclusion

Leadership determines excellent organizational performance. Leadership success lies in the

implementation of the strategy is manifested in a conducive organizational climate, a reward
strategy that is linked to strategic objectives, flexible structures that support business demands,
and an effective organizational culture that influence behavior in the right direction. The ultimate
desired end results manifest itself in aligned individual and organizational performance.

Taking a team from ordinary to extraordinary means understanding and embracing the
difference between management and leadership.

Conversely, a leader can be anyone on the team who has a particular talent, who is creatively
thinking out of the box and has a great idea, who has experience in a certain aspect of the
business or project that can prove useful to the manager and the team. A leader leads based on
strengths, not titles.

The best managers consistently allow different leaders to emerge and inspire their teammates
(and themselves) to the next level.

When youre dealing with ongoing challenges and changes, and youre in uncharted territory
with no means of knowing what comes next, no one can be expected to have all the answers or
rule the team with an iron fist based solely on the title on their business card. It just doesnt work
for day-to-day operations. Sometimes a project is a long series of obstacles and opportunities
coming at you at high speed, and you need every ounce of your collective hearts and minds and
skill sets to get through it.

This is why the military style of top-down leadership is never effective in the fast-paced world of
adventure racing or, for that matter, our daily lives (which is really one big, long adventure,
hopefully). I truly believe in Tom Peterss observation that the best leaders dont create
followers; they create more leaders. When we share leadership, were all a heck of a lot smarter,
more nimble and more capable in the long run, especially when that long run is fraught with
unknown and unforeseen challenges.

Not only do the greatest teammates allow different leaders to consistently emerge based on their
strengths, but also they realize that leadership can and should be situational, depending on the

38
needs of the team. Sometimes a teammate needs a warm hug. Sometimes the team needs a
visionary, a new style of coaching, someone to lead the way or even, on occasion, a kick in the
bike shorts. For that reason, great leaders choose their leadership style like a golfer chooses his
or her club, with a calculated analysis of the matter at hand, the end goal and the best tool for the
job.

Certain researches discovered that a managers leadership style was responsible for 30% of the
companys bottom-line profitability. Thats far too much to ignore. Imagine how much money
and effort a company spends on new processes, efficiencies, and cost-cutting methods in an
effort to add even one percent to bottom-line profitability, and compare that to simply inspiring
managers with the right set of situational leadership skills, they tend to be more kinetic with their
leadership styles. Its a no-brainer.

39
3. Chapter Three-Bibliography

References :

http://www.investopedia.com/terms/l/leadership.asp#ixzz4NmNW8ifs
http://www.forbes.com/leadership/#7db5016057a7

http://www.notredameonline.com/resources/leadership-and-management/what-makes-an-
effective-leader/#.WArWWCh97IU

http://www.yourarticlelibrary.com/essay/essay-on-leadership-meaning-nature-and-importance-
of-leadership/28005/

https://www.mindtools.com/pages/article/newLDR_41.htm

http://www.sociologyguide.com/leadership/functions.php

https://managementstudyguide.com/leadership-styles.htm

http://www.thomaswhite.com/global-perspectives/adi-godrej-chairman-godrej-group/

http://www.outlookbusiness.com/specials/the-boss/adi-godrej-1239

http://www.iloveindia.com/indian-heroes/adi-godrej.html

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