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A PROJECT ON
A STUDY
A STUDY OF LEADERSHIP STYLE IN BANKING
SECTOR SUBMITTED BY
TYBBI ( Semester VI )
* 2018-201 9*
UNDER THE GUIDANCE OF
PROF .SONAL SAWAKAR
SUBMITTED TO
UNIVERSITY OF MUMBAI
LN COLLEGE
Suman Education Society Campus, PlotNo.89,
Near General Kariappa Bridge, Rajendra Nagar ,
Borivali ( East ) , Mumbai -400066.
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
DECLARATION
I ,SANJAY BIND of TYBBI ( Semester VI ) here by declare
that I have
completed the project on “ A STUDY OF LEADERSHIP
STYLE IN BANKING SECTOR” as a part of Examination in
the Course BANKING & INSURANCE
During the academic year 2018-2019.
The information submitted is true and original to the best of
my knowledge.
Wherever the matter is taken from any published work, I
have included that
detail as‘ reference’ .
…………………………. ……………………………….
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
CERTIFICATE
This is to certify that the project titled as “ A STUDY OF
LEADERSHIP STYLE IN BANKING SECTOR” has been
completed by Sanjay bind of TYBBI ( Semester VI)
as a Part of Examination during academic year 2018-2019
( DR.SHARDASHRIYAN) (PROF.SONALSAWAKAR)
PROJECT GUIDE:
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
ACKNOWLEDGEMENT
………………………
Signature of Student
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
INDEX
NO. CONTENT
INTRODUCTION
1
OF LEADERSHIP
DEFINITION OF LEADERSHIP
2
LEADERSHIP : A CONCEPT
3
PAST HISTORY OF LEADERSHIP
4
BANKING
5
ENTREPRENEURS
EFFECTIVE LEADERSHIP
6
STYLEIN BANKING SECTOR
INFLUENCE OF LEADERSHIP
7
STYLE ON EMPLOYEE
PERFORMANCE
LEADERSHIP STYLES
8
INTRODUCTION TO
9
BANKING INDUSTRY
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
INTRODUCTION OF LEADERSHIP
DEFINITION OF LEADERSHIP
We can define leadership as:
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
The above definitions as is evident all pertain to the Western views. This
is b e c a u s e l e a d e r s h i p a s a f o r m a l i z e d f i e l d o f s t u d y
a n d a n a l y s i s w i t h a structured syllabus has not yet been
established in India as it is in the West . Here one still goes by the old
Hindu tradition of the son wearing his father’ s shoes. Needless to say,
this usually proves to be a ‘hit or miss’ approach as it
is not necessary that the leadership skills wil
l b e p a s s e d d o w n t h e generations automatically.
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
LEADERSHIP CONCEPT
There are four major factors in leadership:-
Follower
Different people require different styles of leadership. For example, a new hire
requires more supervision than an experienced employee. A person who lacks
motivation requires a different approach than one with a high degree
of motivation. You must know your people! The fundamental starting point is
having a good understanding of human nature, such as needs, emotions, and
motivation. You must become to know your employees' be, know, and
do attributes.
Leader
You must have an honest understanding of who you are, what you
know , determines if a leader is successful. If they do not trust or lack
confidence in t h e i r l e a d e r , t h e n t h e y wi l l b e u n i n s p i re d . To b e
s u c c e s s f u l yo u h a v e t o convince your followers, not yourself or your
superiors, that you are worthy of being followed.
Communication
You lead through two-way communication. Much of it is nonverbal.
For instance, when you "set the example," that communicates to your people that
you would not ask them to perform anything that you would not be willing to do.
What and how you communicate either builds or harm the relationship between you
and your employees.
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
Situation
A l l a r e d i f f e r e n t . Wh a t yo u d o i n o n e s i t u a t i o n wi l l n o t a l wa ys
w o r k i n another. You must use your judgment to decide the best course of action
and the leadership style needed for each situation. For example, you may need to
confront an employee for inappropriate behavior, but if the confrontation is t o o
l a t e o r t o o e a r l y, t o o h a r s h o r t o o w e a k , t h e n t h e r e s u l t s ma y
p r o v e ineffective.V a r i o u s f o r c e s w i l l a f f e c t t h e s e f a c t o r s . E x a m p
l e s o f f o r c e s a r e y o u r relationship with your seniors, the skill of your
people, the informal leaders within your organization, and how your company
is organized
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Meaning:
Guru is verily the representative of Brahma, Vishnu and Shiva. He creates,
sustains knowledge and destroys the weeds of ignorance. I salute such a
guru. This shloka essentially describes the pedestal on which a leader was placed
in the traditional Indian society. The Indian society, being an inward looking and
highly philosophical society awarded the guru a place even higher than Go d . I t
w a s t h e o n l y f o r m o f r e c o g n i z e d l e a d e r s h i p a n d e v e r yo n e i n t h e
society, irrespective of his position, would turn to the guru to seek advice on
matters ranging from war strategies to spiritual solace. In the Indian society, after
the thread ceremony, an important ritual marking the beginning of the formal
education of a child was being sent to a gurukul. He r e h e wo u l d l e a d a l i f e
o f a c o mmo n e r , r e g a r d l e s s o f h i s b a c k g r o u n d , under the guidance of
the guru. The Guru would condition his disciples both spiritually and
mentally to help them embark on the life of agrihastha once they attain
the age of twenty-five
His word was a command in every sphere and everyone was supposed to
discharge his debts to the guru, in the form of a guru dakshina, by carrying out
his orders. In the post Aryan era, the balance of power shifted to the
crown. The king was now recognized as the ultimate leader who was
responsible for all his subjects. The nineteenth century saw another turn and
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Warm / informal
Introspection
Inward looking
Compassionate
Sensitive
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Objective
Collaborative
Intellectual
Ethical
Aesthetic
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the concept is similar in both India as well as the West, the shift of focus
towards business leadership was much quicker in the West.
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ENTREPRENEURS IN BANKING
Chanda Kochhar (November 17, 1961) is currently the Managing
Director (MD) of ICICI Bank and Chief Executive Officer (CEO).
ICICI Bank is India's largest private bank and overall second largest
bank in the country. S h e a l s o h e a d s t h e C o r p o r a t e C e n t r e o f I C I C I
B a n k . Ko c c h a r h a s a l s o consistently figured in Fortune's list of "Most
Powerful Women in Business"
since 2005. In 2009, she debuted at number 2
0 i n t h e F o r b e s "World's 100 Most Powerful Women list".
PERSONAL
LIFEC h a n d a Ko c h h a r wa s b o r n i n J o d h p u r , R a j a s t h a n
a n d r a i s e d i n J a ip u r ,
Rajasthan. She then moved to Mumbai, where she joi
ned Jai HindCollege for a Bachelor of Arts degree. K
o c c h a r g r a d u a t e d f r o m t h e College in 1982 and then pursued
MBA and Cost Accountancy (ICWAI). Later, she acquired the Masters
Degree in Management Studies from the Jamnalal Bajaj Institute of
Management Studies, Mumbai. Kocchar received the Wockhardt Gold Medal for
Excellence in Management Studies as well asthe J. N. Bose Gold Medal in
Cost Accountancy for highest marks in the same year. Kocchar currently
resides in Mumbai, and is married. She has twochildren, a son and a daughter.
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OTHER INVESTMENT
Kocchar is Often Titled Ms 10%.Its given to her due to her 10% holding
inCastrol India, Nestle India, ACC, Blackstone India, Indian Express, Ambuja
RECOGNITION
U n d e r Ko c c h a r ' s l e a d e r s h i p , I C I C I B a n k wo n t h e “ B e s t R e t a i l B a n k
inI n d i a ” a w a r d i n 2 0 0 1 , 2 0 0 3 , 2 0 0 4 a n d 2 0 0 5 a n d
“ E x c e l l e n c e i n R e t a i l Banking Award” in 2002; both awards were given by
the The Asian Banker. Kocchar personally was awarded "Retail Banker of
the Year 2004 (Asia-Pacific region)"by the Asian Banker, "Business
Woman of the Year 2005" by The Economic Times and "Rising Star Award" for
Global Awards
2006 by Retail Banker International. Kocchar has also consistently figured
inF o r t u n e ' s l i s t o f " M o s t P o we r f u l Wo me n i n B u s i ne s s " s i n c e 2 0 0 5 .
S h e climbed up the list debuting with the 47th position in 2005, moving
up 10spots to 37 in 2006 and then to 33 in 2007. In the 2008 list, Kocchar feature
sa t t h e 2 5 th
spot. In 2009, she debuted at number 20 in the Forbes
"World's1 0 0 M o s t P o w e r f u l W o m e n l i s t " . S h e i s t h e s
eco n d In di an i n t h elist behind the ruling Indian Natio
n a l C o n g r e s s p a r t y c h i e f S o n i a Gandhi at number 13.
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
As, Transactional leadership is based on the exchange process where the leader
administers rewards. In that style the leader and follower are willing that
desired follower behaviors will be rewarded, while
undesirable behaviors will draw out punishment. The possible
rewards consist of increase in salary, promotions, and other more
benefits to employee. Punishment can be in the form of pay reduction,
no promotion, and terminations and leave of job forever. It is observed
that this type of leadership is not acceptable for many conditions.
Indeed, it is observed that transactional leadership behaviors are not
reliable leadership label (Bryman, 1992). Since it is based on previous research,
transactional leadership does is not seek to motivate followers beyond the
level that is required to avoid punishment or gain extrinsic
rewards. Moreover, fully use of this leadership style may
decrease employee capacity and satisfaction to suffer (Bass, 1985; Burns;
1978; Peters & Austin,1985).
T r a n s f o r ma t i o n a l l e a d e r s h i p i s c on s i d e r i n g a c h i e v i n g h i g h l e v e l s
o f p e r f o r ma n c e o f e mp l o ye e s . I t encourage followers by appealing to
their upper level needs that is self-actualization and their ideals that yield higher
levels of follower satisfaction, performance, and organizational commitment in
individuals(Bass, 2000).On other hand, researcher viewed them as opposite ends
of a field at the same time as(Bass ,1978). Bass (1985) views that the
transformational and transactional leadership are closely related
for e f f e c t i v e r e s u l t . An e f f e c t i v e l e a d e r wi l l r e v e a l a s p e c t s o f b o
t h t r a n s a c t i o n a l a n d t r a n s f o r ma t i on a l leadership. According to Bass,
transformational leadership is concerned with developing followers to
their entire potential (Bass & Avolio, 1990). Thomsen
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INFLUENCE OF LEADERSHIP
PERFORMANCE
The style of leadership adopted is considered by some researchers(e.g.Awamleh,
1999; Conger, 1999)
to b e p a r t i c u l a r l y i mp o r t a n t i n a c hi e v i n g o r g a n i z a t i o n a l g o a l s , a n
d i n i n d u c i n g p e r f o r ma n c e a mo n g subordinate (Barlinget al., 1996;
Bersonet al., 2001).Employee performance is an important building block of an
organization and factors which set the foundation for high performance in the
organizations(Abbas & Yaqoob, 2009).Behling and McFilen (1996) confirmed
the link between high performance and leadership in the United States by
developing a model of charismatic/transformational leadership where the leaders’
behavior is said to give rise to inspiration, high regard and empowerment in his
Subordinates, resulting in exception ally high effort, exceptionally high
commitment and willingness to take risks. It has been widely accepted that
effective organizations require effective leadership, and organizational
performance will suffer in direct proportion to the neglect of this (Maritz, 1995;
Ristow; Staude, 1999).Understanding the effects of leadership on performance is
essential because leadership is viewed by somere searchers (e.g. Zhuet al., 2005)
as a critical success factors that impact subordinates performance. Leader should
increase the level of satisfaction and employee productivity by inspiring
and motivating them. Employee performance depends
on directions which are given by their leader. Enhance
the level of employee output is considered most important factor to get
the progress of organization. It is argued that effective leadership has a positive
influence on the performance of Organizations (Maritz,1995; Bass, 1997;
Charlton, 2000). Ultimately it is the Performance of many individuals that
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AUTHORITARIAN OR AUTOCRATIC
PARTICIPATIVE OR DEMOCRATIC
A l t h o u g h g o o d l e a d e r s u s e a l l t h r e e s t yl e s , wi t h o n e o f t h e m
n o r ma l l y dominate, bad leaders tend to stick with one style.
AUTHORITARIAN OR AUTICRATI:
This style is used when the leader tells his employees what he wants
done and how he wants it done, without getting the advice of his followers.
Some of the appropriate conditions to use it are when you have all the
information to solve the problem, you are short on time, and your
employees are well motivated. S o m e p e o p l e t e n d t o t h i n k o f
t h i s s t y l e a s a v e h i c l e f o r y e l l i n g , u s i n g demeaning language,
and leading by threats and abusing their power. This is n o t t h e
a u t h o r i t a r i a n s t yl e – r a t h e r , i t i s a n a b u s i v e , u n p r of e s s i o n a l
s t yl e called ‘bossing’ people around. It has no place in a leader’s repertoire
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PARTICIPATIVE OR DEMOCRATIC
This type of style involves the leader including one or more employees in on
t h e de ci s i o n m a ki ng pr o c es s ( de ter mi ni ng w ha t t o d o a n d
h o w t o do i t ). However, the leader maintains the final decision
making authority. Using this style is not a sign of weakness; rather
it’s a sign of strength that your employees will respect. T hi s i s
n o r ma l l y us e d w h e n y o u ha v e pa r t o f t he i nf o r m a ti o n , a n d
y o ur employees have other parts. A leader is not expected to know
everything -this is why you employ knowledgeable and skillful
employees. Using this style is of mutual benefit - it allows the
employees to become part of the team and allows you to make better
decisions.
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CHRISMATIC LEADERSHIP
PARTICIPATIVE LEADERSHIP
SITUATIONAL LEADERSHIP
TRANSACTIONAL LEADERSHIP
TRANFOMATIONAL LEADERSHIP
SERVANT LEADERSHIP
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CHRISMATIC LEADERSHIP
A t t r i b u t e s o f c h a r i s ma t i c l e a d e r s t h a t i n d i c a t e a mo r e t r a n s f o r ma
- t i o n a l Viewpoint:
• Vision and articulation;
• Sensitivity to the environment;
• Sensitivity to member needs;
•Personal risk taking;
•Performing unconventional
behavior.M u s s e r ( 1 9 8 7 ) n o t e s t h a t c h a r i s m a t i c l e a
d e r s s e e k t o i n s t i l l b o t h c o mmi t me n t t o i d e o lo g i c a l
g o a l s a n d a l s o d e v o t i o n t o t h e ms e l v e s . Th e e x t e n t t o w h
ich either of these two goals is dominant depends o
n t h e underlying motivations and needs of the leader.
PARTICIPATIVE LEADERSHIPA:
participative leader, rather than taking autocratic decisions
, s e e k s t o involve other people in the process, possibly including
subordinates,peers,s u p e r i o r s a n d o t h e r s t a k e h o l d e r s . O f t e n ,
h o w e v e r , a s i t i s w i t h i n t h e ma n a g e r s ' wh i m t o g i v e o r
d e n y c o n t r o l t o hi s o r h e r s u b o r d in a t e s , mo s t participative
activity is within the immediate team. The question of how much
influence others are given thus may vary on the manager's preferences and
beliefs, and a whole spectrum of participation is possible. There are many
varieties on this spectrum, including stages where the leader sells the
idea to the team. Another variant is for the leader to describe the
'what' of objectives or goals and let the team or individuals decide the 'how'
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o f t h e p r o c e s s b y wh i c h t h e ' h o w' w i l l b e a c h i e v e d ( t h i s i s
o f t e n c a l l e d 'management by objectives').The level of participation
may also depend on the type of decision being made. Decisions
on how to implement goals may be highly participative, whilst
decisions during subordinate performance evaluations are more likely to
be taken by the manager.
SITUATIONAL LEADERSHIP:
When a decision is needed, an effective leader does not just fall into a
single preferred style, such as using transactional or transformational methods.
In practice, as they say, things are not that simple. Factors that affect situational
decisions include motivation and capability of followers. This, in turn, is affected
by factors within the particular situation. The relationship between followers
and the leader may be another factor that affects leader behavior as much as it
does follower behavior. The leaders' perception of the follower and the
situation will affect what they
do rather than the truth of the situation.The leader’
s p e r c e p t i o n o f themselves and other factors such as stress and
mood will also modify the leaders' behavior. Yukl (1989) seeks to combine
other approaches and identifies six variables:
• Subordinate effort: the motivation and actual effort expended.
• Subordinate ability and role clarity: followers knowing what to do
and how to do it.
• Or g a ni za ti o n o f th e w o r k : th e s t r uc t ur e o f t he w o r k a n d
u t i l i za ti o n o f resources.
• Cooperation and cohesiveness: of the group in working together.
• Resources and support: the availability of tools, materials, people, etc.
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TRANSACTIONAL LEADERSHIP:
The transactional leader works through creating clear structures whereby it is
clear what is required of their subordinates, and the rewards that they get for
following orders. Punishments are not always mentioned, but they are
also well understood and formal systems of discipline are usually in place. The
early stage of transactional leadership is in negotiating the
contractw h e r e b y t h e s u b o r d i n a t e i s g i v e n a s a l a r y a n d o t h e
r b e n e f i t s , a n d t h e company (and by implication the subordinate's
manager) gets authority over the
subordinate.Wh e n t h e t r a ns a c ti o na l l ea de r a l l o c a t es w o r k t o a s u b
o r di na t e, t h e y a r e c o n s i d e r e d t o b e f u l l y r e s p o n s i b l e f o r i t ,
w h e t h e r o r n o t t h e y h a v e t h e r e s o ur ces o r ca p a b i l i t y t o ca r r y
i t o ut. W h en t hi ng s g o w r o ng , t h en t h e subordinate is considered to
be personally at fault, and is punished for their failure (just as they are
rewarded for succeeding).The transactional
leader o f t e n us e s m a na g e me n t b y e x c e pt i o n , w o r ki n g o n t h e p r i
n c i pl e t ha t i f something is operating to defined (and hence expected)
performance then it does not need attention. Exceptions to expectation require
praise and reward for exceeding expectation, whilst some kind of
corrective action is applied for performance below
expectation.W h e r e a s t r a n s f o r m a t i o n a l l e a d e r s h i p h a s m o
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TRANSFORMATINAL LEADERSHIP:
Wo r ki n g f o r a t r a n s f o r ma ti o na l l ea d er ca n be a w o n d er f u l
a n d up l i f ti ng experience. They put passion and energy into
everything. They care about you and want you to succeed.
Transformational leadership starts with the development of a vision, a view
of the future that will excite and convert potential followers. This vision
may be developed by the leader, by the senior team or may emerge from a
broad series of discussions. The important factor is the leader buys
into it, hook, line and sinker. The next step, which in fact never stops, is to
constantly sell the vision. This takes energy and commitment, as few
people will immediately buy into a radical vision, and some will join
the show much more slowly than
others.T h e tr a ns f o r m a ti o na l l e a der th us ta kes ev er y o p po r tu n
i ty a n d w i l l us e whatever works to convince others to climb on board
the bandwagon. I n o r d er t o cr ea te f o l l o w er s , t h e
t r a ns f o r ma ti o n a l l ea de r h a s t o b e v er y careful in creating trust,
and their personal integrity is a critical part of the package that they
are selling. In effect, they are selling themselves as well as the
vision.P a r a l l e l t o t h e s e l l i n g a c t i v i t y i s s e e k i n g t
h e w a y f o r w a r d . S o m e transformational leaders know the
way, and simply want others to
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followt h e m . O t h e r s d o n o t h a v e a r e a d y s t r a t e g y , b u t w i l
l h a p p i l y l e a d t h e exploration of possible routes to the Promised Land
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SERVANT LEADERSHIP:
The servant leader serves others, rather than others serving th
e l e a d e r . Serving others thus comes by helping them to achieve and
improve.P r i n c i p l e s o f s e r v a n t l e a d e r s h i p d e f i n e d b y t
h e a l l i a n c e f o r s e r v a n t Leadership is:
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INTRODUCTION TO
BANKING INDUSTRY
The Indian Banking industry, which is governed by the Banking Regulation Act
of India, 1949 can be broadly classified into two major categories, non
scheduled banks and scheduled banks. Scheduled ban
k s c o m p r i s e c o m me r c i a l b a n k s a n d t h e c o -
o p e r a t i v e b a n k s . I n t e r ms o f o wn e r s h i p , commercial banks can be
further grouped into nationalized banks, the State Bank of India and its group
banks, regional rural banks and private sector banks (the old/ new
domestic and foreign). These banks have over 67,000 branches spread
across the country. T h e f i r s t p h a s e o f f i n a n c i a l r e f o r ms r e s u l t e d i n
t h e n a t i o n a l i z a t i o n o f 1 4 ma jo r b a n k s i n 1 9 6 9 a n d r e s u l t e d i n a
s h i f t f r o m C l a s s b a n k i n g t o M a s s banking. This in turn resulted in a
significant growth in the geographical coverage of banks. Every bank
had to earmark a minimum percentage
of t h e i r l o a n p o r t f o l i o t o s e c t o r s i d e n t i f i e d a s “ p r i o r i t
y s e c t o r s ” . T h e manufacturing sector also grew during the 1970s in
protected environs and the banking sector was a critical source. The next
wave of reforms saw the nationalization of 6 more commercial banks in 1980.
Since then the number of scheduled commercial banks increased four-fold and
the number of bank branches increased eight-fold. After the second phase of
financial sector reforms and liberalization of the
sector in the early nineties, the Public Sector Banks (PSB)
s f o u n d i t extremely difficult to compete with the new private sector
banks and the foreign banks. The new private sector banks first made
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their appearance after the guidelines permitting them were issued in January
1993. Eight new private sector banks are presently in operation. These banks
due to their late start have access to state-of-the-art technology, which in turn
helps them to save on manpower costs and provide better services. During the
year 2000, the State Bank Of India (SBI) and its 7 associates accounted
for a 25 percent share in deposits and 28.1 percent share in credit. The 20
nationalized banks accounted for 53.2 percent of the deposits and47.5
percent of credit during the same period. The share of foreign
banks(numbering 42), regional rural banks and other scheduled commercial
banksa c co u n t e d f o r 5. 7 p er ce n t , 3. 9 p er ce n t a n d 12 . 2 pe r c e nt r e
s pe c ti v el y i n deposits and 8.41 percent, 3.14 percent and 12.85
percent respectively in credit during the year 2000.
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S t a t e B a n k o f I n d i a ( S B I ) i s t h e l a r g e s t state-
owned bankingandfinancial company inIndia, by almost every parameter -
revenues, profits, assets, market capitalization, e t c .
T h e b a n k t r a c e s i t s a n c e s t r y t o British India, through the Imperial, to
the founding in 1806 of the Bank of Calcutta, making it the oldest commercial
bank in the Indian. Bank of Madras merged into the other two presidency banks,
Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in
turn became State Bank of India. The Government of India nationalized the
Imperial Bank of India in 1955,with the Reserve Bank of India taking a 60%
stake, and renamed it the State B a n k o f I n d i a . I n 2 0 0 8 , t h e Go v e r n me n t
t o o k o v e r t h e s t a k e h e l d b y t h e Reserve Bank of
India.S B I p r o v i d e s a r a n g e o f b a n k i n g p r o d u c t s t h r o u g h i t s
v a s t n e t w o r k o f branches in India and overseas, including products aimed
at NRIs. The State B a n k G r o u p , wi t h o v e r 1 6 ,0 0 0 b r a n c h e s , h a s t h e
l a r g e s t b a n k i n g b r a n c h n e t wo r k i n I n d i a . Wi t h a n a s s e t b a s e o f
$ 3 5 2 b i l l i o n a n d $ 2 8 5 b i l l i o n i n deposits, it is a regional banking
behemoth. It has a market share among Indian commercial banks of
about 20% in deposits and advances, and SBI accounts for almost one-fifth
of the nation's loans.S B I h a s t r i e d t o r e d u c e o v e r -
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
s t a f f i n g b y c o mp u t e r i z i n g o p e r a t i o n s a n d "golden handshake"
s c h e me s t h a t l e d t o a f l i g h t o f i t s b e s t a n d b r i g h t e s t managers.
These managers took the retirement allowances and then went onto become
senior managers in new private sector banks. In 1959 the Government passed the
State Bank of India (Subsidiary Banks)A c t , e n a b l i n g t h e S t a t e B a n k
o f I n d i a t o t a k e o v e r e i g h t f o r m e r S t a t e - associated banks as its
subsidiaries. On 13 September 2008,State Bank of Saurashtra, one of its
Associate Banks, merged with State Bank of India.SBI has acquired local
banks in rescues. For instance, in 1985, it acquired Bank of Cochin in
Kerala, which had 120 branches. SBI was the acquire rasits affiliate, State Bank
of Travancore, already had an extensive network in Kerala. T h e S t a t e
b a n k o f I n d i a i s t h e 1 0 t h mo s t r e p u t e d c o mp a n y i n t h e wo r l d
according to Forbes. S t a t e B a n k o f I nd i a i s t h e l a r g e s t o f t h e of India,
along with I C I C I B a n k ,P u n ja b Na t i o n a l B a n k and C a n a r a B a n k —
i t s m a i n competitors.
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LEADERSHIP THEORIES
TRAIT THEORIE:
S i mi l a r i n s o me w a ys t o " Gr e a t M a n " t h e o r i e s , t r a i t t h e o r y
a s s u me s t h a t people inherit certain qualities and traits that make them
better suited to leadership. Trait theories often identify particular personality or
behavioral characteristics shared by leaders. But if particular traits are
key features of leadership, how do we explain people who possess those
qualities but are not leaders? This question is one of the difficulties in using
trait theories to explain leadership. Several researchers have demonstrated that
such traits of leadership do
nota l wa ys e n s u r e s u c c e s s f u l l e a d e r s h i p b u t t h e y d o p l a c e t h e p o s
sessor in re
s u c c e s s f u l l e a d e r s h i p b u t t h e y d o p l a c e t h e p o s s e s s o r i n higher
esteem. It is also seen that hardly10% of the listed traits in over 100such
researchers appeared in 5 or more study. The trait approach has lead to selection
procedure by written tests or preference tests. The Greatest defect of this theory is
that we cannot have common or universal traits of leadership.
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CONTINGENCY THEORIES:
Contingency theories of leadership focus on particular variables related
to the environment that might determine which particular style of leadership
is best suited for the situation. According to this theory, no leadership style is best
in all situations. Success depends upon a number of variables, including the
leadership style, qualities of the followers and aspects of the situation.
Contingency theory is a class of behavioral theory that claims that there
is n o b e s t w a y t o o r g a n i z e a c o r p o r a t i o n , t o l e a d a
c o m p a n y , o r t o m a k e decisions. Instead, the optimal course of
action is contingent (dependent)upon the internal and external situation.
Several contingency approaches were developed concurrently in the
late 1960s.T h e y s u g g e s t e d t h a t
p r e v i o u s t h e o r i e s s u c h
asWeber's bureaucracyandTaylor ' s ma n a g e me n t h a d f a i l e d b e c a u s e t h e
yn e g l e c t e d t h a t m a n a g e m e n t s t y l e a n d o r g a n i z a t i o n a l s t r u c
t u r e w e r e influenced by various aspects of the environment: the
contingency factors. There could not be "one best way" for leadership or
organization.H i s t o r i c a l l y , c o n t i n g e n c y t h e o r y h a s s o u
g h t t o f o r m u l a t e b r o a d generalizations about the formal structures
that are typically associated with or best fit the use of different technologies. The
perspective originated with the work of Joan Woodward(1958), who argued that
technologies directly determine differences in such organizational
attributes as span of control, centralization of authority, and the formalization
of rules and procedures.
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SITUATIONAL THEORIES:
Situational theories propose that leaders choose the best course of
action based upon situational variables. Different styles of leadership may be
more appropriate for certain types of decision-making. These approach places
more emphasis on the characteristics of the specific s i t u a t i o n o r
e n v i r o n me n t i n wh i c h t h e l e a d e r i s o p e r a t i n g . Qu a l i t i e s
f o r leadership vary with the situation or circumstances and that any traits or skill
can become a quality of leadership in the right situation.
BEHAVIORAL THEORIES:
Behavioral theories of leadership are based upon the belief that great leaders are
made, not born. Rooted in behaviorism, this leadership theory focuses on the
actions of leaders not on mental qualities or internal states. According to this
theory, people can learn to become leaders through teaching and observation.
PARTICIPATIVE THEORIES:
Participative leadership theories suggest that the ideal leadership style is
onet h a t t a k e s t h e i n p u t o f o t h e r s i n t o a c c o u n t . T h e s e l e a d e r
s encourage
participation and contributions from group members and h
e l p g r o u p members feel more relevant and committed to the decision-making
process. In participative theories, however, the leader retains the right to
allow the input of others
MANAGEMENT THEORIES:
Management theories (also known as "Transactional theories") focus on the role
of supervision, organization and group performance. These
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theories b a s e l e a d e r s h i p o n a s y s t e m o f r e w a r d s a n d p u n i s h
m e n t s . M a n a g e r i a l theories are often used in business; when employees are
successful, they are rewarded; when they fail, they are reprimanded or punished.
RELATIONSHIP THEORIES:
Relationship theories (also known as "Transformational theories") focus
u p o n t h e c o n n e c t i o n s f o r m e d
b e t w e e n l e a d e r s a n d followers.
Transformational leaders motivate and inspire people by helping g r o u p
me mb e r s s e e t h e i mp o r t a n c e a n d h i g h e r g o o d o f t h e t a s k . Th e s e
leaders are focused on the performance of group members, but also
want each person to fulfill his or her potential. Leaders with this style often have
high ethical and moral standards.
QUALITIES OF A LEADER:
Leaders are not made, it is said, and they are born. This is true because
not e v e r yo n e c a n l e a d . S o me p e o p l e a r e d o c i l e a n d d o r ma n t b y
n a t u r e , a n d constantly require some person to overlook their activities and
remind them a b o u t t h e u l t i ma t e g o a l , s o t h e y a r e n o t c u t o u t
f o r leadership. T h e b e s t leaders are those who are born with the good
qualities of a leader naturally. So, let us see what the qualities of a great leader
are. Th e r e a r e a nu mb e r o f d i f f e r e n t q u a l i t i e s t h a t a l e a d e r mu s t
p o s s e s s , b u t broadly, they can be classified into these categories. Possessing
these traits will make an individual a good leader, and these leadership qualities
should be present in a leader naturally.
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HONESTY:
The most valuable asset of a leader is honesty. He must be honest with both his
employees and the management committee. Another part of his features is
integrity. Once a leader compromises his or her integrity, it is lost. That
is perhaps the reason integrity is considered the most admirable trait. The leaders
therefore must keep it "above all else."
VISIONARY LOOK:
Leadership qualities are different for different position. For a CIO he must be
thinking for stabilizing the current business and always looking for futures cope
of expansion. He has to be able to look beyond where we are today,
know where the business is going, and be able to use that vision to move the
company
forward. Being able to do this is a rare skill
indeed.
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CONSISTENCY:
Leadership effectiveness is impossible without consistency. Every leader
hasa n a p p r o a c h t h a t i s u n i q u e t o t h e m . D o n ' t c h a n g e y o u r p
e r s o n a l s t y l e radically after all; it got you in a leadership position. Modify
the rough spots but take care not to confound your staff by displaying
inconsistency. Your
expectations, though subject to modification based on eve
r - c h a n g i n g business needs, should remain as constant as possible. The
business world is confusing enough without you adding unwelcome
surprises into the mix. Keep things simple and consistent.
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RISK TAKING
A leader needs to be ready to take risks. It is claimed that higher, the
risk higher is the gain. A leader should not be living in a comfortable
zone and being happy with whatever he has achieved. He does not rest on past
laurels.Such leaders soon lose their position and the time wave removes them
from t h e p e o p l e s ' mi n d . Th e c o n s t a n t u r g e f o r i n n o va t i o n i s o n e
o f t h e mo s t i mp o r t a n t l e a d e r s h i p q u a l i t i e s . I t h e l p s t h e l e a d e r t o
b e i n t u n e wi t h t h e m odern times and help them to face new challenges
much more effectively.A leader doesn’t accept society's definition of what
is possible, they
maket h e i r o w n o u t l i n e s . G o o d l e a d e r s r e f u s e t o a l l o w t h e n
o r m s a n d l i m i t s defined by society to guide their actions or plans. They are
characterized by lack of acceptance for what you see as reality. They just don't
see the world the same way as others. Everything is possible for them despite the
arduousand bumpy road to getting there.
MENTAL TOUGHNESS
A leader needs to be mentally tough. No one can lead with
o u t b e i n g criticized or without facing tough situations. A tough-
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minded leader seesthings as they are and will pay the price for it.
Leadership creates a certain separation from one's peers which comes
from carrying responsibility that only the leader is able to carry. The
leader must be able to keep his or her own counsel until the proper time. A
leader possesses the ability to live with criticism and not be affected by it. It
is not possible for a leader to please everyone. Leaders are able to limit the
impact of stress on their lives. A good leader thrives on the energy of
stressful situations not the negativity. They assume control even when
they don't have it thus eliminating the stress of not having control.
Good leaders have a self-esteem and self-confidence to ride out of any
tough situation.
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LEADERSHIP STRENGTH
Leadership is the ability of a person to guide people in a group
t o wa r d s achieving a task at hand. There are many leadership qualitie
S that help you to become a good leader. These are certain leadership
strengths a person needs to capitalize on to be able to execute effective
leadership. So, given below is a list that entails the important strengths of
leadership that you need to keep in mind to be a good leader.
•TASK EXECUTION
There's many a slip between cup and lip. Coming up with a brilliant idea and
executing that idea are two completely different things. Bringing an idea tolife is
lot easier said than done. An idea really comes to life only when it
ise x e c u t e d t o p e r f e c t i o n . T h u s , t
h i s i s o n e o f t h e m o s t importantleadership stren
gths . For this, you need to be a team player. Thereis a fine line between having
followers that follow you out of respect and h a v i n g f o l l o we r s t h a t
f o l l o w b e c a u s e t h e y h a v e n o c h o i c e . An y k i n d o f discord in the
team reflects in the end result and the efficiency of the task performed.
ENVISION
Before you go on to put any kind of strategy into place,
you need
tounderstand and envision what you wish to achieve. This
i s i m p o r t a n t because the expectations of the entire group will ride on
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LISTEN
B e i n g t h e l e a d e r d o e s n o t me a n t h a t yo u o wn t h e p e o p l e yo u
w o r k wi t h . M a n y p e o p l e t e n d t o g e t c a r r i e d a w a y a n d d o n o t
l i s t e n t o t h e i r t e a m members. This can go against them as the team
members then tend to lose
respect for their leader. Hence, one of the most important
l e a d e r s h i p strengths is the ability to listen to your teammate s. You
need to genuinely is ten to your team members because they are the only ones
that will tell you if you go wrong at any point of time. Furthermore, listening will
make surethat you connect with your team members on a personal level,
which
willi m p r o v e t h e p e r f o r m a n c e o f y o u r t e a m g r e a t l y . R e
a d m o r e o n team leadership.
RELATIONSHIP BUILDING
No two people are alike and hence, even the thinking of no two people will
match. Hence, there is always scope for discord and dispute within
group members. In such cases, you need to be the peacemaker. You need to be
the one who manages to listen to both sides of the story from an unbiased
third person’s point of view. Furthermore, when an idea is conveyed, be
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A STUDY OF LEARDERSHIP STYLE IN BANKING SECTOR
sure tonever out rightly rule out any kind of suggestion offered, no
matter howi r r e l e v a n t o r u n r e a l i s t i c i t ma y b e . Th i s ma k e s i t l o o k
l i k e t h e g r o u p i s following a dictatorship, which in general, brings
down the morale of thegroup. Thus, relationship building within a team, and
outside of it, is one of t h e mo s t i mp o r t a n t l e a d e r s h i p s t r e n g t h s
e x a mp l e s t h a t a p e r s o n n e e d s t o keep in mind. Read more onstrategic
leadership.
ACCEPT MISTAKES
There will be times when as a leader and as a group, you may fail. This will b e a
h a r d t i me f o r yo u b u t yo u n e e d t o u n d e r s t a n d t h a t yo u h a v e
b e e n patient. Lashing out at your team members, blaming them for
failure will o n l y a d d t o y o u r r es ent m e n t . If
t h e s u c c es s i s s ha r e d , t he n s o m us t t h e failure be shared. So in
fact, when the team fails, ensure that you take anequal amount of
responsibility in the failure. Do not cower to admit defeat because if you do so,
then you may lose the respect of your team. So accept your mistake, learn
from it and try to improvise as a leader. This will earnyou respect and
the most loyal team members you can ever hope to find.Read more on
leadership.Leadership strengths are essential qualities that distinguish a
good leader from a bad one. Irrespective of what the saying is, I believe that
leaders arema d e, th e y a r e no t bo r n a n d a pe r s o n c a n a l w a y s be a
g o o d l ea d er i f he capitalizes on the above given list of leadership strengths.
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LEADERSHIP DEVELOPMENT
Academy Sandhurst, g o t o g r e a t l e n g t h s t o o n l y a c c e p t
c a n d i d a t e s w h o s h o w t h e highest potential to lead well. Personal
characteristics that associated with successful leadership development
include leader motivation to learn, a high achievement drive and personality
traits such as openness to experience, aninternal focus of control, and self
monitoring.
Development is also more likely to occur when t
h e d e s i g n o f t h e development program: Integrates a range of
developmental experiences over a set period of t i m e (e. g . 6 –
1 2 mo nt h s ). T h es e ex pe r i e n c e s ma y i nc l ud e 36 0 deg r e e feedback ,
experiential classroom style programs, business school
stylecoursework,executive coaching, r e f l e c ti v e j o u r na l i n g , m e nto r i n
g a n d more. Involve goal setting, following an assessment of key
developmental n e e ds a nd t he n e v a l ua t e t he a ch i ev e m e nt o f g o a l s
a f t er a g i v e n ti me period.
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DEVELOPING LEADERSHIP AT A
COLLECTIVE LEVEL
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Conclusion
In conclusion leadership style is depending up the roll of the particular system
that a is willing to follow.It depends up on the leader ideological nature.The
successes are depend up on his/ her planes and objective to achieve the goal.
Leader should have a Long-term plane or short term plane to achieve the
objectives.It also depends upon the approaches that leaders are going to put
forward. The approaches have to choose according to the situation that the
leadership is going to take over.A quality leader should have a good charisma
and quality characteristics
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Questionnaire :
1) Explain any 5 Theories of Leadership ?
2) What are the leadership strengths ?
3) What are the different types of leadership ?
4) Explain a difference between Leader & Manager ?
5) Explain essential qualities of Leadership ?
6) Leadership role in banking sector ?
BIBILOGRAPHY
http://en.wikipedia.org/wiki/Leadership_styles
http://www.scribd.com
http://www.slideshare.net
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