Sep 12, 2014
Presented by:
Shivi
What is Leadership?
The ability of a superior to influence the behaviour of subordinates and persuade them to follow a particular course of action.
Managers VS Leaders
Manager LeaderManages. Innovates.
Manager is a copy. Leader is original.
Manager maintains. Leader develops.
Manager focuses on system and structure.
Leader focuses on people.
Manager does things right. Leader does right things.
A person becomes manager by virtue of his position.
A person becomes a leader on basis of his personal qualities.
All managers are leaders. Not all leaders are managers.
Leadership styles
Autocratic (Authoritarian) Participative (Democratic) Laissez faire (Delegative/ Free-rein)
Leadership styles
Autocratic: Strict & close control over followers. Gives orders, which must be followed by
the subordinates.
Leadership styles
Democratic: Shares ideas with
subordinates. Motivates Guides and controls One of the most
effective leadership style
Leadership styles
Laissez Faire: A free rein leader doesn’t lead; leaves
the group to fend for itself. Subordinates decide policies and
methods on their own. Beneficial if the subordinates are skilled.
Theories of Leadership
Trait theory
Behavioural theories: Ohio State studies University of Michigan studies Managerial Grid
Contingency theories: Fiedler model Situational Leadership Theory (SLT) Leader participation model Path-goal Leader-member exchange theory
Trait Theory
Trait theory
Acc. to this theory, a LEADER has a specific set of personal traits, which distinguish him from NON-LEADER.
“Leaders are Born, not made”.
Trait theory
Popular traits:
Behavioral Theories
Ohio State studies Started shortly after World War II. (late 1940s)
Identified two dimensions of leader behaviour:
Initiating structure: refers to leader behaviour that defines and organises the group task, assigns the tasks to employees and supervise their activities.
Consideration: refers to leader behaviour that can be characterised by friendliness, respect, supportiveness, openness, trust and concern for welfare of employees.
University of Michigan studies Two dimensions of leader behaviour:
Employee-oriented: Emphasis on interpersonal relations; personal interest in the needs of employees.
Production-oriented: Emphasis on completion of the task.
Findings: Employee-oriented leaders were associated with higher productivity and job satisfaction.
Managerial Grid
Developed by Blake and Mouton, it’s a Graphical portrayal of 2 dimensions of leadership style:
Concern for People Concern for Production
Managerial Grid
Contingency theories
Fred Fiedler’s model
Effective group performance depends upon the proper match between the leader’s style of interacting with followers and demand of the situation.
Assumptions: A certain leadership style should be most
effective in different types of situations. Leaders do not readily change leadership styles. Matching the leader to the situation or changing
the situation to make it favorable to the leader is required.
Fred Fiedler’s model
Least Preferred Coworker (LPC) questionnaire:Determines leadership style by measuring responses to 18 pairs of contrasting adjectives.▪ High score: a relationship-oriented leadership style▪ Low score: a task-oriented leadership style
Situational factors in matching leader to the situation:▪ Leader-member relations: The degree of confidence,
trust, and respect subordinates have in their leader.▪ Task structure: The degree to which the job assignments
are procedurized.▪ Position power : Influence derived from one’s formal
structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.
Situational Leadership Theory (SLT)
By Hersey and Blanchard. Successful leadership is achieved by
selecting the right leadership style which is contingent on the level of the followers’ readiness. Acceptance: leadership effectiveness
depends on whether followers accept or reject a leader.
Readiness: the extent to which followers have the ability and willingness to accomplish a specific task.
Situational Leadership Theory (SLT)
Followers Leaders
Unable & Unwilling to do a task Need to give clear directions
Unable & Willing Display high task and high relationship orientation
Able & Unwilling Use a supportive and Participative style
Both Able & Willing Doesn’t need to do much
SLT’s findings:
Leader participation model
Developed by Victor Vroom and Philip Yetton
A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations.
Path Goal theory
Leader’s job to provide followers with the information, support or other resources necessary for them to achieve their goals.
Leaders assume different leadership behaviours: Directive Supportive Participative Achievement oriented
Leader-Member Exchange (LMX)
LMX theory argues that because of time pressures, leader establish a special relationship with a small group of their followers.
The creation by leaders of in-groups and out-groups; subordinates with in-groups status will have a higher performance rating, less turnover, and greater job satisfaction.
Modern Theories
Transactional and Transformational Leadership ‘Transactional leadership’ involves exchange relationship between the leader and follower.
Features of Transactional Leader
Contingent RewardManagement by Exception (Active)Management by Exception (Passive)Laissez Faire
Transformational Leadership
Leaders who inspires followers to transcend their own self-interests for the good of the organization.
One who is capable of having a extraordinary effect on his or her followers.
Features of Transformational Leaders
Charisma Inspiration Individual Consideration
Modern Theories (Cont...)
Visionary Leadership : The ability to create a realistic, credible, attractive vision for the future for an organization that grows out of and improves on the present.
Charismatic Leadership: According to Plato’s and Confucius ‘a leader is born not made.’ Charisma is a god-gifted attribute in a person which makes him a leader.
Famous leaders in the world
Mahatma Gandhi was a major political and spiritual leader of India who led the country in the various movement during its struggle for independence.
Adolf Hitler was the leader of the Nazi Party and a notorious dictator of Germany. As a leader of the Nazi party, Hitler promoted nationalism, anti-Semitism, anti-communism by establishing a Fascist dictatorship in Germany
Dhirubhai Ambani has not only been a great leader but also an inspirational story for several youngsters hailing from small towns to make it big in their respective fields.
Mother Teresa was very humble and never cared about her own image, a rare quality that could hardly be seen in any leader around the world.
Steve Jobs was an unconventional leader. His management style wasn't the stuff of university textbooks - he wasn't known for his consultative or consensus building approach.
George Washington was the first President of the United States who led the Continental Army to victory in the American Revolutionary War against the Kingdom of Great Britain and saved the nation from the threat of collapse during its most crucial time.
Abraham Lincoln was the 16th President of the United States who led the country to victory during the American Civil War.
10 Business Leaders Who Failed Before They Succeeded1. Akio Morita Morita co-founded Sony, a multi-billion dollar company. But the
company’s beginnings were not so rosy.2. Bill Gates Before building his empire, Gates started a business called Traf-O-
Data which went no-where and he dropped out of Harvard.3. Colonel Sanders Surprisingly, the Colonel’s famous secret chicken recipe was
rejected over a 1,000 times before a restaurant accepted it. He founded KFC in age of 65.
4. Evan Williams Before co-founding the social media giant Twitter, he founded a
company called Odeo. But Apple announced iTunes store, making Odeo obsolete.
5. Fred Smith While studying at Yale University, Fred Smith presented a business
idea to his business management class that received a nearly failing grade. The idea was for a parcel service that could deliver packages overnight. Smith ignored the grade and founded FedEx.
6. Henry Ford Ford’s first two car companies failed and left him broke. But that
didn’t stop him from founding Ford Motor Company.7. Mark Cuban Before making billions selling his company to Yahoo, Cuban failed at
a variety of jobs. He failed as a carpenter, as a cook, as a waiter.8. Soichiro Honda Honda initially applied for a job at Toyota as an engineer, but was
turned down. Being jobless, he started making scooters at home, which he sold to neighbors. With the support of his family, he founded Honda.
9. Thomas Edison Edison, one of the most prolific inventors in history , was told as a
boy by his teacher that he was too stupid to learn anything and suggested he go into a field that did not require intelligence. He tried more than 9,000 experiments before he created the first successful light bulb.
10. Walt Disney Disney was fired by an editor because, “he lacked imagination and
had no original ideas.” His first animation company went bankrupt and it’s said that he was turned down hundreds of times when he sought financing for Disney World. Now The Walt Disney company builds an entertainment empire.
5 Attributes Of The World’s Greatest Business Leaders Be of the people People usually identify with leaders from within. Because they
believe there is a “get me” feeling, When you lead by being part of the crowd.
Be humble Great leaders know that no one, including themselves, is better or
worse. Everyone brings their own value, and collectively there is power in that.
Be simple To be a great leader, avoid communicating over people’s heads.
Instead, communicate on the same level as everyone else. Block and tackle Great leaders defend, protect and help their team. They know
their most important job is to make everyone else’s job easier. Believe in them Forget trying to get the people to believe in you. Instead, get
them to believe in themselves. Let them know you believe they can do their job.
7 Habits of the World’s Best Business Leaders Not surprisingly there is a common thread that separates the
world’s best leaders from everyone else.
1. They don’t seek fame. Fame is merely a natural consequence of what great leaders do.
2. They don’t fear criticism. Just like fame is of no importance.3. They don’t make superstars. For great leaders, the hero is the
team.4. They are part of the team.5. They kill “the cancer.” The best leaders know when something isn’t
working in the business it is their role to remove it immediately.6. They ask ten times more questions than answers. Effective people
“seek to understand before they seek to be understood.”7. Their “God” is the vision. Every great innovation that has ever
happened, first started with a vision and ultimately came to reality.