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"Leadership is the capacity to translate vision into reality," Warren Bennis once stated. Great leaders
are often credited with possessing high social intelligence, a zest for change, and above all, the ability
to set their sights on the things that truly merit attention. But those are desirable skills for everyone
else, too.
It is the responsibility of leaders to develop a vision for the people and institutions they guide. They
must establish what matters and explain why, so they can set direction, and inspire others.
But leadership does not depend on one’s title, seniority, or ability to exert power. Leaders can emerge
at any level if they can cultivate a desire in those with whom they collaborate to strive toward a
common goal, which can be accomplished successfully through any number of approaches. And
recent research on leadership skills confirms the increasing importance of inner resources such as
self-awareness and self-mastery.
Leaders are people who do the right thing; managers are people who do things right.– Professor
Warren G. Bennis
The word "leadership" can bring to mind a variety of images. For example:
A political leader, pursuing a passionate, personal cause.
An explorer, cutting a path through the jungle for the rest of his group to follow.
An executive, developing her company's strategy to beat the competition.
Leaders help themselves and others to do the right things. They set direction, build an inspiring
vision, and create something new. Leadership is about mapping out where you need to go to "win" as
a team or an organization; and it is dynamic, exciting, and inspiring.
Yet, while leaders set the direction, they must also use management skills to guide their people to the
right destination, in a smooth and efficient way.
In this article, we'll focus on the process of leadership. In particular, we'll discuss the "transformational
leadership" model, first proposed by James MacGregor Burns and then developed by Bernard Bass.
This model highlights visionary thinking and bringing about change, instead of management
processes that are designed to maintain and steadily improve current performance.
Leadership: a Definition
According to the idea of transformational leadership , an effective leader is a person who does the
following:
1. Creates an inspiring vision of the future.
2. Motivates and inspires people to engage with that vision.
3. Manages delivery of the vision.
4. Coaches and builds a team, so that it is more effective at achieving the vision.
Leadership brings together the skills needed to do these things. We'll look at each element in more
detail.
1. Creating an Inspiring Vision of the Future
In business, a vision is a realistic, convincing and attractive depiction of where you want to be in the
future. Vision provides direction, sets priorities, and provides a marker, so that you can tell that you've
achieved what you wanted to achieve.
To create a vision, leaders focus on an organization's strengths by using tools such as Porter's Five
Forces , PEST Analysis , USP Analysis , Core Competence Analysis and SWOT Analysis to
analyze their current situation. They think about how their industry is likely to evolve, and how their
competitors are likely to behave. They look at how they can innovate successfully , and shape their
businesses and their strategies to succeed in future marketplaces. And they test their visions with
appropriate market research, and by assessing key risks using techniques such as Scenario
Analysis .
Therefore, leadership is proactive – problem solving, looking ahead, and not being satisfied with
things as they are.
Once they have developed their visions, leaders must make them compelling and convincing.
A compelling vision is one that people can see, feel, understand, and embrace. Effective leaders
provide a rich picture of what the future will look like when their visions have been realized. They tell
inspiring stories , and explain their visions in ways that everyone can relate to.
Here, leadership combines the analytical side of vision creation with the passion of shared values,
creating something that's really meaningful to the people being led.
2. Motivating and Inspiring People
A compelling vision provides the foundation for leadership. But it's leaders' ability to motivate and
inspire people that helps them deliver that vision.
For example, when you start a new project, you will probably have lots of enthusiasm for it, so it's
often easy to win support for it at the beginning. However, it can be difficult to find ways to keep your
vision inspiring after the initial enthusiasm fades, especially if the team or organization needs to make
significant changes in the way that it does things. Leaders recognize this, and they work hard
throughout the project to connect their vision with people's individual needs, goals and aspirations.
One of the key ways they do this is through Expectancy Theory . Effective leaders link together two
different expectations:
1. The expectation that hard work leads to good results.
2. The expectation that good results lead to attractive rewards or incentives.
This motivates people to work hard to achieve success, because they expect to enjoy rewards – both
intrinsic and extrinsic – as a result.
Other approaches include restating the vision in terms of the benefits it will bring to the team's
customers, and taking frequent opportunities to communicate the vision in an attractive and engaging
way.
What's particularly helpful here is when leaders have expert power . People admire and believe in
these leaders because they are expert in what they do. They have credibility, and they've earned the
right to ask people to listen to them and follow them. This makes it much easier for these leaders to
motivate and inspire the people they lead.
Leaders can also motivate and influence people through their natural charisma and appeal, and
through other sources of power , such as the power to pay bonuses or assign tasks to people.
However, good leaders don't rely too much on these types of power to motivate and inspire others.
3. Managing Delivery of the Vision
This is the area of leadership that relates to management .
Leaders must ensure that the work needed to deliver the vision is properly managed – either by
themselves, or by a dedicated manager or team of managers to whom the leader delegates this
responsibility – and they need to ensure that their vision is delivered successfully.
To do this, team members need performance goals that are linked to the team's overall vision. Our
article on Performance Management and KPIs (Key Performance Indicators) explains one way of
doing this, and our Project Management section explains another. And, for day-to-day management
of delivering the vision, the Management By Wandering Around (MBWA) approach helps to ensure
that what should happen, really happens.
Leaders also need to make sure they manage change effectively. This helps to ensure that the
changes needed to deliver the vision are implemented smoothly and thoroughly, with the support and
backing of the people affected.
4. Coaching and Building a Team to Achieve the Vision
Individual and team development are important activities carried out by transformational leaders. To
develop a team, leaders must first understand team dynamics. Several well-established and popular
models describe this, such as Belbin's Team Roles approach, and Bruce Tuckman's Forming,
Storming, Norming, and Performing theory .
A leader will then ensure that team members have the necessary skills and abilities to do their job
and achieve the vision. They do this by giving and receiving feedback regularly, and by training
and coaching people to improve individual and team performance.
Leadership also includes looking for leadership potential in others. By developing leadership skills
within your team, you create an environment where you can continue success in the long term. And
that's a true measure of great leadership.
Everybody defines leadership differently but I really like the way John C Maxwell defines leadership,
“A leader is one who knows the way, goes the way, and shows the way.” Irrespective of how you
define a leader, he or she can prove to be a difference maker between success and failure. A good
leader has a futuristic vision and knows how to turn his ideas into real-world success stories. In this
article, we take an in-depth look at some of the important leadership qualities that separate good
leaders from a bad one.
1. Honesty and Integrity
6. Decision-Making Capabilities
10. Empathy
Conclusion
To become a good leader, you must have all these qualities but if you lack some of these qualities,
then you might struggle to make the mark in the world of leadership. You will have to set a good
example for others to follow. That is where your commitment, passion, empathy, honesty and integrity
come into play. Good communication skills and decision-making capabilities also play a vital role in
success and failure of a leader. Lastly, innovation and creative thinking, as well as the futuristic
vision, are a couple of key traits which make a leader stand out.
Qualities of a Good Leader:
A successful leader secures desired behaviour from his followers. It depends upon the quality of
leadership he is able to provide. A leader to be effective must possess certain basic qualities. A
number of authors have mentioned different qualities which a person should possess to be a good
leader.
1. Good personality.
2. Emotional stability.
8. Communicating skill.
9. Sociable.
4. Leadership Skills
1. Communication
As a leader, you need to be able to clearly and succinctly explain to your employees everything from
organizational goals to specific tasks. Leaders must master all forms of communication, including
one-on-one, departmental, and full-staff conversations, as well as communication via the phone,
email, and social media.
A large part of communication involves listening. Therefore, leaders should establish a steady flow of
communication between themselves and their staff or team members, either through an open-door
policy or regular conversations with workers. Leaders should make themselves regularly available to
discuss issues and concerns with employees. Other skills related to communication include:
Active listening
Articulating
Business storytelling
Clarity
Concision
Correspondence
Editing
Explaining
Expression
Facilitating group conversations
Nonverbal communication
Presentation
Public speaking
Reading body language
Reducing ambiguity
Verbal communication
Written communication
2. Motivation
Leaders need to inspire their workers to go the extra mile for their organizations; just paying a fair
salary to employees is typically not enough inspiration (although it is important too). There are a
number of ways to motivate your workers: you may build employee self-esteem through recognition
and rewards, or by giving employees new responsibilities to increase their investment in the
company.
Leaders must learn what motivators work best for their employees or team members to encourage
productivity and passion. Skills related to effective motivation include:
Leaders who try to take on too many tasks by themselves will struggle to get anything done. These
leaders often fear that delegating tasks is a sign of weakness, when in fact it is a sign of a strong
leader.
Therefore, you need to identify the skills of each of your employees, and assign duties to each
employee based on his or her skill set. By delegating tasks to staff members, you can focus on other
important tasks. Some skills that make a good delegator include:
A positive attitude can go a long way in an office. You should be able to laugh at yourself when
something doesn't go quite as planned; this helps create a happy and healthy work environment,
even during busy, stressful periods.
Simple acts like asking employees about their vacation plans will develop a positive atmosphere in
the office, and raise morale among staff members.
If employees feel that they work in a positive environment, they will be more likely to want to be at
work, and will therefore be more willing to put in the long hours when needed. Some skills that help
make for a positive atmosphere in the workplace include:
Caring
Conflict management
Developing rapport
Diplomacy
Encouraging
Empathetic
Friendliness
Helping others
Humor
Interpersonal
Positive reinforcement
Respect
Social
5. Trustworthiness
Employees need to be able to feel comfortable coming to their manager or leader with questions and
concerns. It is important for you to demonstrate your integrity – employees will only trust leaders they
respect.
By being open and honest, you will encourage the same sort of honesty in your employees. Here are
some skills and qualities that will help you convey your trustworthiness as a leader:
Ability to apologize
Accountability
Business ethics
Confidentiality
Conscientious
Consistent in behavior towards employees
Credibility
Emotional intelligence
Empathy
Honesty
Integrity
Moral compass
Reliability
Respectfulness
Standing up for what is right
Thoughtful
6. Creativity
As a leader, you have to make a number of decisions that do not have a clear answer; you therefore
need to be able to think outside of the box.
Learning to try nontraditional solutions, or approaching problems in nontraditional ways, will help you
to solve an otherwise unsolvable problem. Most employees will also be impressed and inspired by a
leader who doesn't always choose the safe, conventional path. Here are some skills related
to creative thinking:
Analytical
Cognitive flexibility
Conceptualization
Critical thinking
Curiosity
Embracing different cultural perspectives
Foresight
Identifying patterns
Imaginative
Innovative
Listening to others’ ideas
Making abstract connections
Observation
Open-mindedness
Problem solving
Sound judgment
Synthesizing
Visionary
7. Feedback
Leaders should constantly look for opportunities to deliver useful information to team members about
their performance. However, there is a fine line between offering employees advice and assistance,
and micromanaging. By teaching employees how to improve their work and make their own
decisions, you will feel more confident delegating tasks to your staff.
Employees will also respect a leader who provides feedback in a clear but empathetic way. Some
skills for giving clear feedback include:
A leader is responsible for both the successes and failures of his or her team. Therefore, you need to
be willing to accept blame when something does not go correctly.
If your employees see their leader pointing fingers and blaming others, they will lose respect for you.
Accept mistakes and failures, and then devise clear solutions for improvement. Here are some skills
and qualities that help leaders convey their responsibility:
Acknowledging mistakes
Being open to customer feedback
Evaluating best solutions
Forecasting
Learning from past mistakes
Listening to feedback from employees and managers
Project planning
Reflectiveness
Resolving problems
Transparency
Trouble shooting
9. Commitment
It is important for leaders to follow through with what they agree to do. You should be willing to put in
the extra hours to complete an assignment; employees will see this commitment and follow your
example.
Similarly, when you promise your staff a reward, such as an office party, you should always follow
through. A leader cannot expect employees to commit to their jobs and their tasks if he or she cannot
do the same. Some skills related to commitment in the workplace include:
Applying feedback
Commitment to company objectives
Determination
Embracing professional development
Following through
Keeping promises
Passion
Perseverance
Prioritization
Professionalism
Team player
Work ethic
10. Flexibility
Mishaps and last-minute changes always occur at work. Leaders need to be flexible, accepting
whatever changes come their way. Employees will appreciate your ability to accept changes in stride
and creatively problem solve.
Similarly, leaders must be open to suggestions and feedback. If your staff is dissatisfied with an
aspect of the office environment, listen to their concern and be open to making necessary changes.
Employees will appreciate a leader's ability to accept appropriate feedback. Skills related to flexibility
include:
The total pattern of leaders’ actions as perceived by their employees is called leadership style. It
It is necessary to study the different leadership styles from which an appropriate style can be
selected, depending upon the situation in which leadership is to be exercised and the nature of the
followers involved.
There are different ways in which leaders approach people to motivate them. If the approach
emphasizes rewards, the leader uses positive leadership. If the approach emphasizes penalties, the
leader is applying negative leadership. Negative leaders should be called bosses rather than leaders.
There are three classes of supervisory techniques – autocratic, participative or consultative and free-
rein and corresponding to these three techniques, there are three management styles – autocratic,
An autocratic leader centralizes power and decision-making in himself. He gives orders, assigns
tasks and duties without consulting the employees. The leader takes full authority and assumes full
responsibility.
Autocratic leadership is negative, based on threats and punishment. Subordinates act as he directs.
He neither cares for their opinions nor permits them to influence the decision. He believes that
because of his authority he alone can decide what is best in a given situation.
Autocratic leadership is based upon close supervision, clear-cut direction and commanding order of
the superior. It facilitates quick decisions, prompt action and unity of direction. It depends on a lesser
degree of delegation. But too much use of authority might result in strikes and industrial disputes. It is
likely to produce frustration and retard the growth of the capacity of employees.
The employees work as hard as is necessary to avoid punishment. They will thus produce the
This leadership style is less likely to be effective because (i) the new generation is more independent
and less submissive and not amenable to rigid control; (ii) people look for ego satisfactions from their
jobs and (iii) revolution of rising expectations changed the attitude of the people.
(A) The hard-boiled autocrat who relies mainly on negative influences uses the force of fear and
punishment in directing his subordinates towards the organisational goals. This is likely to result in
(B) The benevolent autocrat who relies mainly on positive influences uses the reward and incentives
in directing his subordinates towards the organisational goals. By using praise and pats on the back
(C) The manipulative autocrat who makes the employees feels that they are participating in decision-
making though the manager himself has taken the decision. McGregor labels this style as Theory X.
subordinates and their participation in the formulation of plans and policies. He encourages
participation in decision-making.
He leads the subordinates mainly through persuasion and example rather than fear and force.
Sometimes the leader serves as a moderator of the ideas and suggestions from his group. McGregor
labels this style as Theory Y.
Taylor’s scientific management was based on the inability of the ordinary employees to make
effective decisions about their work. Hence the decision-making power was vested with the
management. But recent studies indicate the need for participation by subordinates. The modern
This will foster enthusiasm in them. The employees feel that management is interested in them as
well as in their ideas and suggestions. They will, therefore, place their suggestions for improvement.
Advantages for democratic leadership are as follows: (i) higher motivation and improved morale; (ii)
increased co-operation with the management; (iii) improved job performance; (iv) reduction of
Free-rein leaders avoid power and responsibility. The laissez-faire or non-interfering type of leader
passes on the responsibility for decision-making to his subordinates and takes a minimum of initiative
in administration. He gives no direction and allows the group to establish its own goals and work out
The leader plays only a minor role. His idea is that each member of the group when left to himself will
put forth his best effort and the maximum results can be achieved in this way. The leader acts as an
umpire. But as no direction or control is exercised over the people, the organisation is likely to
flounder.
An experiment conducted among Boy Scout Clubs of the USA in 1940 shows autocratic leadership is
likely to rouse antagonism in the group and produce hostility towards the leader. In democratic
groups, the absence of the leader made little difference, while in autocratic groups productive work
Democratic leadership is more likely to win the loyalty of the group. The laissez-faire groups also
developed friendly approaches to the leader as in the democratic group. But suggestions from the
groups were very low and they were also less productive.
4. Paternalistic leadership
Under this management style the leader assumes that his function is fatherly or paternal. Paternalism
means papa knows best. The relationship between the leader and his group is the same as the
relationship between the head of the family and the members of the family. The leader guides and
protects his subordinates as members of his family.
As the head of the family he provides his subordinates with good working conditions and fringe
benefits. It is assumed that workers will work harder out of gratitude. This leadership style was
This leadership style has still been widely prevalent in small firms in India. However, this paternalistic
approach is unlikely to work with mature adult employees, many of whom do not like their interests to
be looked after by a “godfather.” Instead of gratitude, it might generate antagonism and resentment in
the subordinates.
Meaning:
organized group of people working towards a common goal, some type of leadership becomes
essential. “The power of leadership is the power of integrating. The leader stimulates what is best in
us he unites and concentrates what we feel only gropingly and shatteringly. He is a person who gives
form to the uncoarctate energy in every man. The person who influences me most is not he who does
great Deeds, but he who makes me feel that I can do great deeds.” Marry Parker Follet.
Leadership is the ability to build up confidence and zeal among people and to create an urge in them
to be led. To be a successful leader, a manager must possess the qualities of foresight, drive,
initiative, self-confidence and personal integrity. Different situations may demand different types of
leadership.
Definitions:
Leadership has been defined in various ways. Stogdill has rightly remarked that there are almost as
many definitions of leadership as there are people who have tried to define it.
The definitions given by some famous authors and management experts are given below:
1. Koontz and O’Donnell, Leadership is the ability of a manager to induce subordinates to work with
3. Allford and Beaty, Leadership is the ability to secure desirable actions from a group of followers
voluntarily, without the use of coercion.
4. George R. Terry, Leadership is the activity of influencing people to strive willingly for group
objectives.
5. Hemphill, J.K., Leadership is the initiation of acts which result in a consistent pattern of group
point of time, and in a specific set of circumstances that stimulates people to strive willingly to attain
In the various definitions of leadership the emphasis is on the capacity of an individual to influence
and direct group effort towards the achievement of organizational goals. Thus, ‘ we can say that
leadership is the practice of influence that stimulates subordinates or followers to do their best
An analysis of the definitions cited above reveals the following important characteristics
of leadership:
4. Leadership is a process of influence. A leader must be able to influence the behaviour, attitude and
7. Leadership is the function of stimulating the followers to strive willingly to attain organizational
objectives.
and informal leaders. A formal leader is one who is formally appointed or elected to direct and control
the activities of the subordinates. He is a person created by the formal structure, enjoys
organizational authority and is accountable to those who have elected him in a formal way. The
formal leader has a two-fold responsibility. On the one hand, he has to fulfill the demands of the
organization, while on the other he is also supposed to help, guide and direct his subordinates in
Informal leaders are not formally recognized. They derive authority from the people who are under
their influence. In any organization we can always find some persons who command respect and who
are approached to help, guide and protect the informal leaders have only one task to perform, i.e., to
help their followers in achieving their individual and group goals. Informal leaders are created to
satisfy those needs which are not satisfied by the formal leaders. An organization can make effective
A leader is expected to perform creative function of laying out goals and policies to persuade the
The second function of a leader is to create and shape the organization on scientific lines by
assigning roles appropriate to individual abilities with the view to make its various components to
The next function of a leader is to take the initiative in all matters of interest to the group. He should
not depend upon others for decision and judgment. He should float new ideas and his decisions
A leader has to reconcile the interests of the individual members of the group with that of the
organization. He has to ensure voluntary co-operation from the group in realizing the common
objectives.
5. Direction and Motivation:
It is the primary function of a leader to guide and direct his group and motivate people to do their best
in the achievement of desired goals, he should build up confidence and zeal in the work group.
6. Link between Management and Workers:
A leader works as a necessary link between the management and the workers. He interprets the
policies and programmes of the management to his subordinates and represents the subordinates’
interests before the management. He can prove effective only when he can act as the true guardian
The importance of leadership in any group activity is too obvious to be over-emphasized. Wherever,
there is an organized group of people working towards a common goal, some type leadership
becomes essential. Lawrence A. Appley remarked that the time had come to substitute the word
Although the concern for leadership is as old as recorded history, it has become more acute during
the last few decades due to the complexities of production methods, high degree of specialization and
social changes in the modern organizations. A good dynamic leader is compared to a ‘dynamo
generating energy’ that charges and activates the entire group in such a way that near miracles may
be achieved. The success of an enterprise depends to a great extent, upon effective leadership.’
Through dynamic leadership managers can improve motivation and morale of their subordinates. A
good leader influences the behaviour of an individual in such a manner that he voluntarily works
Leadership serves as a motive power to group efforts. It leads the group to a higher level of
The use of authority alone cannot always bring the desired results. Leadership acts as an aid to
Leadership plays a pivotal role at all levels of management because in the absence of effective
leadership no management can achieve the desired results.
5. It Rectifies the Imperfectness of the Formal Organisational Relationships:
No organizational structure can provide all types of relationships and people with common interest
may work beyond the confines of formal relationships. Such informal relationships are more effective
in controlling and regulating the behaviour of the subordinates. Effective leadership uses there
Effective leadership increases the understanding between the subordinates and the management and
1. The leader should consult the group in framing the policies and lines of action and in initiating any
2. He should attempt to develop voluntary co-operation from his subordinates in realizing common
objectives.
3. He should exercise authority whenever necessary to implement the policies. He should give clear,
Leadership is an art whereby an individual influences a group of individuals for achieving a common
which a person attempts to influence the behaviour of others for attainment of pre-determined
objectives. Of the various people, who have defined leadership, influence and attainment of
emerge:
1. Leadership is a process of Influence:
Influence is the ability of an individual to change the behaviour, attitude, and belief of another
individual directly or indirectly. Someone has rightly defined leaderships as the “process of social
influence in which one person can enlist the aid and support of others in the accomplishment of a
common task”.
2. Leadership is not one-dimensional:
In terms of systems thinking, the organizational performers (followers) are must in the leadership
attractive personality, decisiveness, etc), styles (Authoritarian to laissez-faire), and situational factors
(organisation’s internal and external environment, objectives, tasks, resources, and cultural values of
Leadership is “organizing a group of people to achieve a common goal.” Thus, the influence concerns
the goals only. Outside the goals, the concerns are not related to leadership.
5. Leadership is not primarily a Particular Personality Trait:
A trait closely linked to leadership is charisma, but many people who have charisma (for example,
There have been many great leaders who did not hold high positions—for example, Mahatma
Gandhi, Martin Luther King, Jr. and—and Anna Hazare . On the other hand there are people who
Many leadership manuals suggest that leadership involves doing things such as delegating and
providing inspiration and vision; but people who are not leaders can do these things, and some
Some questions are often being asked – Does a manager has to be a leader too? Does a leader
have to be a manager as well? It is possible to be a boss in a company without being a leader.
followers beyond their formal authority. Managers are people who do things right and leaders are
Leadership and
management must go hand in hand. They are not the same thing. But they are necessarily linked,
and complementary. Any effort to separate the two is likely to cause more problems than it solves. A
It is very right to conclude that task is not only to manage people, but the task is to lead people. And
the goal is to make productive the specific strengths and knowledge of every individual.
Importance of Leadership:
If an organization is flourishing, its members developing, and achieving breakthrough after
breakthrough, then one can be sure about one thing that there is a strong leader at the helm of the
organization. If an organization is failing, the problem again relates to the leader of the organization.
competitive business environment, because with the help of leadership a company will face all the
A leader has to not only supervise but also to play a guiding role for the subordinates. Guidance here
means instructing the subordinates the way they have to perform their work effectively and efficiently.
Leadership creates among subordinates a sense of belongingness and commitment. Desire for
A leader sells rather than tells. He persuades, rather than dictates, and creates enthusiasm among
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.
4. 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
By turning subordinates into followers, the job of securing order and compliance, becomes easy. He
motivates the employees with economic and non- economic rewards and thereby gets the work from
the subordinates voluntarily. It is this willingness on the part of subordinates which leads to
maintenance of discipline.
6. Facilitates Integration of Organisational and Personal Goals:
A leader is one who is visionary, deciding the destination to be reached. Vision is the source of
organisational objectives. Vision requires synchronisation of goals through integration of personal and
organisational goals.
A leader creates common goals and understanding among subordinates that their personal goals are
No change in thinking, processes, and practices becomes possible without leadership. It is the leader
who convinces actively about the change and making it part and parcel of their working and reducing
resistance to change.
8. Boosts 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.
Principles of Leadership:
To help you be, know, and do, follow these eleven principles of leadership:
1. Know Yourself and Seek Self-Improvement:
In order to know yourself, you have to understand your be, know, and do, attributes. Seeking self-
improvement means to continually strengthen your attributes. This can be accomplished through self-
As a leader, you must know your job and have a solid familiarity with your employees’ tasks.
3. Seek responsibility and take responsibility for your actions:
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Search for ways to guide your organization to new heights. And when things go wrong, they always
do sooner or later — do not blame others. Analyze the situation, take corrective action, and move on
Be a good role model for your employees. They must not only hear what they are expected to do, but
also see. We must become the change we want to see – Mahatma Gandhi.
6. Know your people and look out for their well-being:
Know human nature and the importance of sincerely caring for your workers.
7. Keep your workers informed:
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Know how to communicate with not only them, but also seniors and other key people.
8. Develop a sense of responsibility in your workers:
Help to develop good character traits that will help them carry out their professional responsibilities.
9. Ensure that tasks are understood, supervised, and accomplished:
Although many so called leaders call their organization, department, section, etc. a team; they are not
By developing a team spirit, you will be able to employ your organization, department, section, etc. to
During the 20th Century, there has been a great interest in research on leadership. Early leadership
theories focused on what qualities distinguished between leaders and followers (i.e., traits), while
subsequent theories looked at other variables such as behavioural and situational factors and skill
levels.
While many different leadership theories have emerged, most can be classified as one of eight
major types:
1. “Great Man” Theories:
Great man theories assume that the Leaders are born and not made. Great leaders will arise when
there is a great need, like Rama, Krishna, Buddha, Mahatma Gandhi, Eisenhower, and Winston
Churchill.
These theories often portray great 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
These people were often from the aristocracy, as few from lower classes had the opportunity to lead.
Gender issues were not on the table when the ‘Great Man’ theory was proposed because most
Similar in some ways to “Great Man” theories, trait theories assume that People are born with
inherited qualities and traits that make them better suited to leadership. Some traits are particularly
suited to leadership. Trait theories often identify particular personality or behavioral characteristics
shared by leaders. People who make good leaders have the right (or sufficient) combination of traits.
Early research on leadership was based on finding the traits which differentiated leaders from non-
leaders. If we look at Ratan Tata of Tata Sons, Kumar Mangalam Birla of Aditya Birla Group, Azim
Premji of Wipro, Kamath of Infosys, Anand Mahindra of Mahindra and Mahindra, all these leaders
The traits are vision, self confidence, simplicity, integrity, and adherence to values. Traits are
matched by skills. There have been many different studies of leadership traits and they agree only in
Perhaps a day may come when the researchers will find a ‘leadership gene’. But traits alone do not
Behavioural theories of leadership are based upon the beliefs that great leaders are made, not born
(a big leap from Trait Theory) and exhibit something unique in their behaviour. Behavioural theories of
leadership do not seek inborn traits or capabilities. Rather, they look at what leaders actually do, like
democratically or autocratically. People can learn to become leaders through learning and
Three important researches on behavioural theories need mention – University of Iowa studies by
Kurt Lewin (democratic leadership style can contribute good and high quality of work), Ohio State
University Studies by Edwin A. Fleishman in 1945(a leader high on initiating structure – defines his
own and subordinates’ roles to achieve goals; and consideration- mutual trust and respect for
employees’ ideas and feelings); and University of Michigan Studies by Renesis Likert (identified two
types of leadership behaviour – job- centred behaviour and employee-centred behaviour and later on
During researches it has been realised that leadership phenomenon is more than isolating a few traits
or behaviours. According to contingency theory, no leadership style is best in all situations. Success
depends upon a number of variables, including the leadership style, capabilities and behaviour of the
It means a leadership style that is effective in some situations may not be successful in others. This is
the reason that some leaders who seem to have the ‘Midas touch’ in one situation suddenly appear to
Situational theory proposes that the best action of the leader depends on a range of situational
factors. An effective leader does not just fall into a single preferred style, different are the situations
different are the styles of decision-making. Factors that affect situational decisions include motivation
Contingency theory is similar to situational theory. Both believe in that there is no one right way. But
they differ as the situational theory tends to focus more on the behaviours adopted by the leader,
given situational factors (often about follower behaviour), whereas the contingency theory takes a
broader view that includes contingent factors about leader capability and other variables within the
situation.
In case of situational theory the leaders’ perception of the follower and the situation will affect what
they do rather than the truth of the situation. The leader’s perception of themselves and other factors
such as stress and mood will also modify the leaders’ behaviour.
Four important approaches in isolating key situational variables have been very important. These
studies include – Fiedler’s Contingency Model (leadership effectiveness depends on the proper
match between the leader’s style and the degree to which situation gives control to the leader);
Robert House’ Path-goal theory (leader’s job is to assist followers to attain their goals and to provide
necessary support and direction to ensure compatibility of their goals with that of the organisation –
like E. Sreedharan, of Delhi Metro); Victor Vroom and Phillip Yetton’s leader-participation
model(leader can adapt his style to different situation); and Paul Hersey and Kenneth Blanchard’s
Situational Leadership (a leader must assess the maturity levels of followers to determine which
Bureaucratic leadership follows a close set of standards. Everything is done in an exact, specific way
to ensure safety and/or accuracy. One will often find this leadership role in a situation where the work
environment is dangerous and specific sets of procedures are necessary to ensure safety.
A natural bureaucratic leader will tend to create detailed instructions for other members of a group.
The bureaucratic leadership style is based on following normative rules and adhering to lines of
authority
2. Charismatic leadership:
“Charismatic leadership emphasises primarily the magnetic personality and behaviour of leaders and
their effects on followers, organizations, and society. Sociologists, political historians, and political
scientists have widely accepted the theory of charismatic leadership originally advanced by Weber
(1947). Charisma is regarded as of divine origin or as exemplary, and on the basis of them the
Mahatma Gandhi, Jawaharlal Nehru, Indira Gandhi, Lai Bahadur Shashtri, and Mother Teresa were
charismatic leaders. Charismatic leaders inspire via persona, reputation, and communications and
Late President John F Kennedy and his look-alike Fmr. President Bill Clinton have often been called
“The most charismatic leaders of 20th century” Another good example would be Adolf Hitler, who
rose from a “Bohemian corporal” to “Herr Fuhrer” due to his ability to captivate people into following
him.
3. Visionary Leadership:
A visionary leader perceives challenges and growth opportunities before they happen, positioning
people to produce extraordinary results that make real contributions to life. Some of the visionary
leaders include – Dalai Lama (for his ability to incorporate new ideas into his traditional framework
while being a messenger for peace and enlightenment for the world), Mahatma Gandhi and Nelson
Mandela (for his courage and conviction and perseverance against all odds to free and unite people
for justice), and President Obama (for his ability to galvanize and inspire people with the vision that
we can transform our consciousness & world). The list is endless.
4. Strategic Leadership:
Strategic leadership refers to a manger’s potential to express a strategic vision for the organization,
Strategic leadership can also be defined as utilizing strategy in the management of employees. It is
the potential to influence organizational members and to execute organizational change. Strategic
leaders create organizational structure, allocate resources and express strategic vision.
Thus, this type of leadership relates to the role of top management. Strategic leaders work in an
ambiguous environment on very difficult issues that influence and are influenced by occasions and
The main objective of strategic leadership is strategic productivity. Another aim of strategic leadership
is to develop an environment in which employees forecast the organization’s needs in context of their
own job. Strategic leaders encourage the employees in an organization to follow their own ideas.
Strategic leaders make greater use of reward and incentive system for encouraging productive and
quality employees to show much better performance for their organization. Functional strategic
leadership is about inventiveness, perception, and planning to assist an individual in realizing his
The term “Servant Leadership” was coined by Robert K. Greenleaf in The Servant as Leader, an
essay that he first published in 1970. Leaders have a responsibility towards society and those who
are disadvantaged. People who want to help others best do this by leading them. The servant-leader
The servant leader serves others, rather than others serving the leader. Serving others thus comes
by helping them to achieve and improve. Famous examples of servant leaders include George
The term has been brought to light by Kerr and Jermier in 1978. According to them there are aspects
of the work setting and the people involved that can reduce the need for a leader’s personal
involvement, because leadership is already provided from within. The term substitutes mean the
situation where leader behaviours are replaced by characteristics of subordinates, the task at hand,
Transactional leadership is based upon the assumptions that people are motivated by reward and
punishment (Rational Man), social systems work best with a clear chain of command, when people
have agreed to do a job, a part of the deal is that they cede all authority to their manager, and the
The style of a transactional leader is that he works through creating clear structures whereby it is
made clear as to what is required of subordinates and the rewards that they get for following orders.
Punishments are not always mentioned, but they are also well- understood and formal systems of
To begin with, Transactional Leadership negotiates the contract whereby the subordinate is given a
salary and other benefits, and the company gets authority over the subordinate.
While the leader allocates work to a subordinate, they are considered to be fully responsible for it,
When things go wrong, then the subordinate is considered to be personally at fault, and is punished
The leader often uses management by exception, working on the principle that if something is
operating to defined (and hence expected) performance then it does not need attention. Exceptions to
expectation require praise and reward for exceeding expectation, whilst some kind of corrective
In management versus leadership spectrum, it is more towards the management end. Transactional
Transactional Leadership is still a popular approach with many managers, despite its limitation of
When the demand for a skill outstrips the supply, then Transactional Leadership often is insufficient.
Transformational leadership is the answer. It “recognizes and exploits an existing need or demand of
a potential follower… (And) looks for potential motives in followers, seeks to satisfy higher needs, and
inspires them, a person with vision and passion can achieve great things, and the way to get things
his or her potential. Leaders with this style often have high ethical and moral standards.
Transformational Leadership starts with the development of a vision. This vision may be developed
by the leader, by the senior team or may emerge from a broad series of discussions. The next step is
to constantly sell the vision. While doing so, he must create trust and personal integrity. Along with
And finally, transformation leaders remain upfront and central during the action and visible –
Transformational Leader seeks to infect and reinfect their followers with a high level of commitment to
the vision. They are people- oriented and believe that success comes first and last through deep and
sustained commitment.
Transformational Leaders are often charismatic, but are not as narcissistic as pure Charismatic
Leaders, who succeed through a belief in themselves rather than a belief in others.
Whilst the Transformational Leader seeks overtly to transform the organization, there is also a tacit
One of the traps of Transformational Leadership is that passion and confidence can easily be
mistaken for truth and reality. Paradoxically, the energy that gets people going can also cause them
to give up.
Transformational Leaders also tend to see the big picture, but not the details, where the devil often
lurks. If they do not have people to take care of this level of information, then they are usually doomed
to fail.
Finally, transformational leaders, by definition, seek to transform. When the organization does not
need transforming and people are happy as they are, then such a leader will be frustrated.
It is important for the follower to understand the difference between Charismatic Leaders and
Transformational Leaders. They both are Inspiring and both have a Vision and both are not as caring
Charismatic Leaders are Inspiring in order to lead for their own purpose which may or may not benefit
the organization or people. “It’s all about me.” Transformational Leaders are inspiring in order to
support a shared vision of improvement for the organization and its people.
“It’s all about the organization.” The visions of transformational Leaders are practical and achievable
in order to improve organization. Transformational Leaders often “downsize” the work force to
improve the organization. Transformational Leaders often “downsize” the work force to improve
organizational efficiency for the good of the organization. On the other hand, Charismatic Leaders
abuse or fire persons who do not agree with them, or who question their vision or otherwise inhibit
their personal accomplishment as Leaders improve organizational efficiency for the good of the
organization.
On the other hand, Charismatic Leaders abuse or fire persons who do not agree with them, or who
To conclude, transformational and transactional leadership are not opposite to each other, rather they
are complementary. A great transformational leader has to be a great transactional leader as well.
Leadership Styles:
Before we delve into describing leadership styles, it would be proper to distinguish between types of
leaders and styles of leadership. Type of leader is determined and identified by the “personality”
displayed by the leader in terms of core trait along with other traits and personal qualities being
displayed and used to gain the trust of the people and lead them to commit to undertake the major
On the other hand, “style” of leadership is defined and identified by the competencies and skills that
the leader “applies” to guide facilitate and support the people of the organization in their efforts to
Leadership style reflects a leader’s decision making behaviour. It is the result of the philosophy,
personality and experience of the leader. Leadership style refers to how decisions are made to
1. Authoritarian or Autocratic
2. Participative or Democratic
3. Free-rein or Delegate
Authoritarian Style:
When the leaders tell their subordinates/followers at their own what work they want to get done, and
thing. All decision-making powers are centralised in the leader, as with autocratic leaders. No
Authoritarian or autocratic leadership does not mean using foul language and leading by threats. This
This style should be used only when the leader has all the information and is short of time and the
employees are well motivated. If the leader wants to gain greater commitment and motivate his
Participative Style:
In the authoritarian style the leader used to say – “I want you to….”, but in participative style the
A Participative Leader, rather than taking autocratic decisions, seeks to involve other people including
Here the leader takes his subordinates into confidence about what to do and how to do, but the final
authority vests in the leader. This style can be divided into two – one, where leader consults, and two,
where decision is taken through consensus. Use of this style by a leader is not a sign of weakness.
It is the strength, your subordinates will respect. This style is used when the employees are
knowledgeable and skilful. This style is also known as consultative, empowerment, joint decision-
It helps in ascertaining and identifying future leaders among the subordinates. Also, it keeps a team’s
spirit and morale high, as the team members feel that their opinions are valued by their leader.
To illustrate, an advertising manager approaches his subordinates on how to promote a particular
product of a company. The team members brain storm over the issue, some suggest print media and
others suggest electronic media. The participative leader takes all these suggestions, and makes a
In this style the leader says – “you take care of the problem”. Final responsibility always remains with
the leader. A free-rein leader does not lead, but leaves the group entirely to itself.
Such a leader allows maximum freedom to subordinates, i.e., they are given a free hand in deciding
their own policies and methods. It is used when the leader has full trust and confidence in the abilities
of his subordinates.
Since a leader cannot do everything. He prioritises the work and delegates certain tasks. This style
may be used but with caution. This style is also known as laissez faire (non-interference in the affairs
of others).
To illustrate, a manager has newly joined a firm. He is still learning how various things move in the
organization. In such a situation, he relies on the suggestions and opinions of his team members and
lets them do the things the way they are used to, till the time he is able to gain sufficient knowledge
1. Availability of time
3. The information is with whom (the leader, employees or both? If the leader knows the problem but
4. How well the leader knows the task and employees well versed? (Use participative style if the
5. Internal Conflicts
6. Levels of stress
9. If an employee is just learning the job – use authoritarian style, and if employees know more than
the styles depending upon the forces in operation among the leader, followers and the situation. If the
existing procedure is not working go in for authoritarian to establish a new one; if their ideas and input
are to be taken use participative and using delegative style while delegating the procedure to them for
execution. Normally one of styles will be dominant. But bad leaders tend to stick to one style only.
Before deciding which style to use, a leader should ask two questions, the first is to ask what my
leadership style is. This is to focus on what you enjoy, what you might be good at, what strengths and
The second is to ask what leadership style is best for the people, team or organisation that I’m
leading. This is to focus on the needs of the situation, on the criteria for success, on the approach that
will bring about the maximum impact. Modern leadership demands both.
Managerial Grid:
The Managerial Grid, a behavioural leadership model, has been developed by Robert R. Blake and
Jane Mouton. This model originally identified five different leadership styles based on the concern for
people and the concern for production. The optimal leadership style in this model is based on Theory
Y of motivation.
The model is represented as a grid with concern for production (on the X-axis) and concern for
people (on the Y-axis); each axis ranges from 1 (Low) to 9 (High). The resulting leadership styles are
as follows:
a. The indifferent (also called as impoverished) style (1, 1):
Evade and elude or low production/low people. In this style, managers have low concern for both
people and production. This leader is mostly ineffective. Managers use this style to preserve job and
The main concern for the manager is not to be held responsible for any mistakes, which results in
less innovative decisions. The leader has no regard for either work or people.
b. The accommodating (also called as country club) style (1, 9):
Yield and comply or high people/low production. This style has a high concern for people and a low
concern for production. Managers using this style are more concerned about needs and feelings to
the security and comfort of the employees, in hopes that this will increase performance. The resulting
atmosphere is usually friendly, but not necessarily very productive due to lack of direction and control.
C. The dictatorial (also called as produce or perish) style (9, 1):
Control and dominate or high production/low people. With a high concern for production, and a low
concern for people, managers using this style find employee needs unimportant; they provide their
Managers using this style also pressure their employees through rules and punishments to achieve
the company goals. This dictatorial style is based on Theory X of Douglas McGregor, and is
commonly applied by companies on the edge of real or perceived failure. This style is often used in
Balance and compromise or medium production/medium people. Managers using this style try to
balance between company goals and workers’ needs. By giving some concern to both people and
production, managers who use this style settle for average performance and often believe that this is
Contribute and commit or high production/high people. In this style, high concern is paid both to
people and production. As suggested by the propositions of Theory Y, managers choosing to use this
style encourage teamwork and commitment among employees. This method relies heavily on making
The grid has been evolving continuously. It has added two more leadership styles -the paternalistic
style: prescribe and guide (alternates between the (1,9) and (9,1) locations on the grid- managers
using this style praise and support, but discourage challenges to their thinking ) and Opportunistic
style: exploit and manipulate(does not have a fixed location on the grid- leaders adopt whichever
behaviour offers the greatest personal benefit). These styles were added to the grid theory before
1999.
Contemporary Leadership Issues:
Leadership is probably the single most subject in management getting the most attention of business
leaders. Some of the current issues relating to leadership development are as under;
1. Emotional Intelligence:
Should a leader have high Intelligence Quotient (IQ) and technical intelligence? Off course, they are
The five components of EI are self-awareness, self- regulation, self-motivation, empathy and social
skills. Without EI one cannot be a great leader. Indira Nooyee has become President of PepsiCo
Does gender make any difference to leadership? Victor vroom and others in their leader-participation
model under contingency theories of leadership find that women managers are significantly more
The women managers show more interactive leadership, and thus, better rating from peers,
supervisors, and subordinates. Shikha Sharma of Yes bank and Chanda Kochar of ICICI bank are
Of late the corporations are appointing expatriates as the CEOs or managers. Very recently, GoAir of
Wadia Group has appointed Giorgio De Roni as its CEO, a former chief Revenue officer of Italian
The purpose is to train them in different cultures to avoid any culture shock..Culture plays an
Ratan Tata has rightly pointed a finger at British managers that they are not like Indian managers,
Coca Cola and PepsiCo were accused of pesticides, Reliance Energy of soil pollution, Dow
Chemical’s of Bhopal tragedy, Satyam of accounting fraud, and Indian call centres of encroaching
All these incidents show the decresing public trust in corporate leaders. Trust involves integrity,
competence, consistency, loyalty, and openness. Trust is very critical to leadership. Knowledge and
information can be accesses by a leader only if he is trust worthy. What people talk about ethical
Managers handle overall business operations and supervisors watch over employees, but leaders are all things at once,
especially in a small business. When you have a role as a leader, other people in your organization should want to follow
your guidance, to help the business satisfy its mission and goals. Kings and queens are born, but leaders are indeed made
and shaped by the ever-changing business environment. The fundamental principles of leadership incorporate both
logic and feeling to successfully guide a small business into long-term solvency and profitability.
Informed
Employees expect leaders at small businesses to have a high degree of knowledge about operations, management and
the industry in general. Subordinates and co-management may lose confidence in a leader's ability if he doesn't
understand the business from top to bottom, front office to back office. Universities, colleges and online schools offer
continuing education courses and certifications in the business knowledge side of running a small operation. A wise
leader needs foresight and insight, and it starts with understanding the data.
Innovative
Some small businesses are technology-averse. When new business innovations emerge, larger corporations are
commonly the first to adopt. Social networking is a relatively recent example, where most large enterprises have created
profiles in various website domains. Small businesses are slowly joining this trend to increase market exposure, but
many smaller operations either don't have staff who can properly leverage this new advertising medium, or don't see
any tangible benefit from going online. Small business leaders should embrace change to stay up with the larger pack, if
not get ahead.
Decisive
Small business owners and managers face yes-and-no questions on a daily basis. Contrast this to larger institutions that
have several leadership layers, including executive management, middle or department management, and employee
supervisors. Decisions are easily delegated and spread across the organization, and a wrong choice has less of an impact.
Small business leaders must be both decisive and correct, or else the entire operation may be adversely affected.
Intelligence and willingness to adapt can facilitate good decision-making.
Loyal
When revenues and profits slip, business managers are faced with tough financial choices that affect personnel as well as
operations. Nonetheless, dedicated employees expect leaders to be loyal and honest. If business is hurting, tell the truth
up front, but make a concerted effort to ensure employee needs are satisfied. In turn the employees, will remain with the
company for the long-haul. Outsourcing and globalization are hot-button issues.
Reserved
Small-business leaders work in close quarters with employees, resulting in a strong personal and professional rapport
throughout the organization. Managers must be careful about being too sociable and extroverted. From a legal
perspective, fraternizing with employees can open a leader up to charges as serious as sexual harassment. A strong
leader should know how to effortlessly boost morale and tactfully diffuse tension without compromising the altitude of
the position of leader and the respect due to it.
Humble
Small business leaders can still demonstrate humility while being reserved and competent. Business owners and
managers may have education, training and experience that trumps regular employees, but everyone is human. Admit
personal mistakes and business errors.
Supportive
Management has to know when to rule with a firm hand, but be supportive when employees need relief from work and
life in general. For example, while reprimanding employees for being tardy, probe for ways to fix the problem, such as
creating a carpool. Send flowers and cards for celebrations, such as weddings, and show sincere respect when an
employee or family member is infirm or passes away. Let employees know that you care about their well-being.