E-LESSON-9,

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M.B.A 2 All right are reserved with CU-IDOL MANAGEMENT PRACTICES AND ORGANISATIONAL BEHAVIOUR Course Code: MBA603 Semester: First SLM Units: 9 E-LESSON : 8 www.cuidol.in Unit-8 (MBA603)

LEADERSHIP 33 OBJECTIVES INTRODUCTION Student will be able to  In this unit we are going to learn about the  Understand the concept of Leadership. concept of leadership along with various style.  Equip the knowledge of various styles of Leadership .   This Unit will also make students to enhance Acquaint the Various Traits of leadership . the knowledge of various Traits, Theories of Leadership.  Critically analyze the various Theories of Leadership along with the differences between leaders vs Managers. www.cuidol.in Unit-8 (MBA603) INASlTl ITriUgThEt aOrFeDreISsTeArNveCdE AwNitDh OCNUL-IIDNOE LLEARNING

TOPICS TO BE COVERED 4 > Introduction & Meaning of Leadership > Styles of leadership > Trait and Behavioral Theories : 1. The Managerial Grid / Leadership Grid 2. Hersey-Blanchard Situational Leadership Theory 3. Leader Member Exchange Theory > Leaders Vs Managers difference www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

LEADERSHIP: Introduction 5  Introduction :  It is an important element of directing function of management.  It is the ability to influence others.  It is the ability to build up confidence and zeal among the people and to create an urge in them to be led. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Leadership : Meaning  Leadership is a technique by which an government can direct, manual and impact the behavior and work of 6 others toward accomplishment of specific desires in a given scenario. Leadership is the capability of a manager to induce the subordinates to work with self belief and zeal.  Acc. to Peter Drucker, “It is the lifting of man’s vision to higher sights, the raising of man’ personality beyond its normal limitations.  According to Keith Davis, “Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals.” www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Difference between Leader & Manager 7 www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Effectiveness of Leaders 8  Effectiveness of Leaders depend on their ability to influence and be influenced by the followers in the task accomplishment. In essence leader : 1. Ensure that necessary tasks are accomplished. 2. Build and reinforce the team and foster team work and team spirit 3. Develop each member of team  More points of Effectiveness of leaders are : (a) Task Achievement (b) Development of Individuals (c ) Building the teams (d) Make the Vision Target www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Traits of Leadership 9 www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Leader’s Power 10 All right are reserved with CU-IDOL The Leader’s influence over followers depends on various factors like :  The nature of the leader  The nature of followers  The leader’s behaviour  Organisational situation  Follower’s Behaviour  Leaders capacity to influence followers The leader’s influence over his followers is derived from various sources of power. The important sources of power of the leader includes: a. Reward Power b. Coercive Power c. Legitimate Power d. Expert Power e. Referent Power www.cuidol.in Unit-8 (MBA603)

Leader’s Power 11 www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Theories of Leadership 12 Just as control information is supported with the aid of various theories, the management function of management too is authenticated by means of diverse theories. Whilst the behavioural theories of management focused on discovering the steady courting between management behaviours and the institution performance, the present day theories emphasised the significance of situational elements (along with stress stage, task structure, chief’s intelligence, followers’ traits, etc.) as properly. Some of the important leadership theories are as follows: www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

1. Traditional Theories 13 a) Trait Theory b) Group & Exchange Theory  This theory focuses on the individual characteristics of successful leaders. Leaders possess a set of traits which make them distinct from followers. An attempt must, therefore, be made to identify and measure these traits. Charismatic, enthusiastic & courageous.  High at accomplishment  Creative & Intelligent  Willing to accept behavioral consequences.  Very Influential  High at social interactions www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

1. Traditional Theories 14 a) Trait Theory b) Group & Exchange Theory  Social alternate theory proposes that social behavior is the result of an trade process. The cause of this alternate is to maximize advantages and decrease prices.  Social exchange theory is a social psychological and sociological attitude that explains social change and stability as a manner of negotiated exchanges among parties.  Social alternate idea posits that all human relationships are fashioned by means of the use of a subjective cost-advantage evaluation and the comparison of alternatives.  Charges are the factors of relational lifestyles that have terrible value to a person, like time, money, attempt etc. And on the other hand rewards are the factors of a dating that have effective value like experience of acceptance, support, and companionship and many others. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

2. Behavioural Theory of Leadership 15 a) Ohio State Studies  Leader high in initiating structure is someone who:- b) University of Michigan • Assign group members a particular task. Studies • Expect workers to maintain definite standards of performance. c) Scandinavian Studies  Emphasize on meeting the deadlines. A leader high in consideration is someone who: d) Continuous Theory of Leadership • Help employees with personal problems. • Is friendly & approachable. e) Likert’s Four Systems • Treat all employees as equal. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

2. Behavioural Theory of Leadership 16 a) Ohio State Studies b) University of Michigan Studies c) Scandinavian Studies d) Continuous Theory of Leadership e) Likert’s Four Systems www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

2. Behavioural Theory of Leadership 17 a) Ohio State Studies A leader high at development orientation:- b) University of Michigan  Pushes new ways of doing things. Studies  Originates new approaches to problems.  Encourages members to start new activities. c) Scandinavian Studies d) Continuous Theory of Leadership e) Likert’s Four Systems www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

2. Behavioural Theory of Leadership 18 a) Ohio State Studies Continuous Leadership Theory is about consistent engagement of your people, leading them in the pursuit b) University of Michigan of operational excellence. Everyone, from top to Studies bottom, needs to buy into a culture of continuous improvement, and change how they c) Scandinavian Studies engage one another and run their business. d) Continuous Theory of Leadership e) Likert’s Four Systems www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

2. Behavioural Theory of Leadership 19 Likert’s four systems of management are categorized as follows: e) Likert’s Four Systems f) Managerial Grid g) Leader Participation Skill www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

2. Behavioural Theory of Leadership 20 e) Likert’s Four Systems The managerial grid model (1964) is a f) Managerial Grid style leadership model developed by Robert R. Blake and Jane Mouton. This model originally identified five g) Leader Participation Skill 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. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

21 a. Fiedler’s Model b. Cognitive Resource Theory d. Leader Member Exchange e. Path Goal Theory Theory www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

3. CONTINGENCY THEORIES 22  The contingency concept of management states that a pacesetter’s effectiveness is contingent upon with how his or her management fashion matches to the state of affairs (management theories, n.d).  That is, the leader ought to find out what sort of leadership style and state of affairs he or she thrives in.  The contingency principle is involved with the subsequent:  “There is no one best style of leadership” (Fiedler’s Contingency Model, n.d)  A leader is effective when his or her style of leadership fits with the situation (Fiedler’s Contingency Model, n.d) www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

3. CONTINGENCY THEORIES 23 a. Fiedler’s Model  Fiedler’s Contingency Theory, just like all contingency theories, states that there is no one best way to lead your team.  The best way to lead your team will instead be determined by the situation.  It is important to realize that in Fiedler’s Contingency Theory your leadership style is fixed.  You cannot change your style to suit the situation. Instead, you must put leaders into situations that match their style. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

3. CONTINGENCY THEORIES 24 b. Cognitive Resource Theory Research Support: • Less intelligent individuals perform better in leadership roles under high stress than do more intelligent individuals. • Less experienced people perform better in leadership roles under low stress than do more experienced people. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

c. Hersey & Blanchard’s Situational Theory 25 www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

3. CONTINGENCY THEORIES 26 d. Leader Member Exchange Theory  This theory argues that because of time pressure, leaders establish a special relationship with a small group of their followers.  These individuals make up the in-group, they are trusted, get a disproportionate amount of leader’s attention and are more likely to receive special privileges.  Other followers fall into the category of the out-group, they get less of the leader’s time, fewer of the preferred rewards that leader controls and have the relationship on a formal authority interactions.  Even though it is the leader who is choosing, it is the followers characteristics that are driving the leader's choice.  Leaders invest their resources with those they expect to perform the best. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

e. Path Goal Theory 27  The term path-goal is derived from the belief that effective leaders clarify the path to help their followers to get from where they are to the achievement of their work goals and to make the journey along the path easier by reducin roadblocks. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

 This theory has identified 4 leadership behaviors……….. 28  Directive leader let followers know what is expected of them, schedules work to be done and give specific guidance as to how to accomplish tasks.  Supportive leader is friendly and shows concern for the needs of followers.  Participative leader consults with followers and uses their suggestions before making a decision.  Achievement oriented leader sets challenging goals and expects followers to perform at their highest level.  Leaders are flexible and the same leader can display any or all of these behaviors depending on the situation. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

4. Modern Theories of Leadership  Transformational: 29 In latest modern world, the society is in need of transformational leaders who might carry fine and significant adjustments. Transformational leadership is in which the leaders anticipate transformation on their groups although it is uncomfortable and consider that everyone will do their nice. In addition they function concept and role version to their humans.  Charismatic or inspiring leadership: This kind is based on the chief's air of mystery or his/her private qualities and is one of the most not unusual procedures to management. Leaders are seen to own strong feel of imaginative and prescient and undertaking and arouse a very robust emotion in every in their fans. Leading others is decided by using the kind and source of strength this is held by the leaders. It isn't clean to grow to be an powerful chief however being aware of one-of-a-kind tactics to leadership permits aspiring leaders to get to understand www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

4. Modern Theories of Leadership 30 www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Styles of Leadership 31 TRADATIONAL THEORIES MODERN THEORIES Free-rein or Laissez- fair Unit-8 (MBA603) Envisioning style Energizing Autocratic Style Enabling Democratic Style All right are reserved with CU-IDOL www.cuidol.in

Free-rein or Laissez- fair style 32  Here, the leader totally trusts their employees/group to perform the activity themselves.  He simply concentrates on the intellectual/rational thing of his paintings and does not recognition on the management factor of his paintings.  The team/employees are welcomed to proportion their perspectives and offer guidelines that are great for organizational pastimes.  This leadership style works handiest whilst the employees are skilled, loyal, skilled and highbrow. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Autocratic Style 33  In this style of leadership, a leader has complete command and hold over their employees/team. The crew can't recommend their views despite the fact that they are great for the group’s or organizational hobbies.  They cannot criticize or query the leader’s manner of having things executed. The chief himself receives the matters completed.  The advantage of this fashion is that it results in fast selection-making and extra productiveness below leader’s supervision.  Drawbacks of this leadership fashion are that it results in greater worker absenteeism and turnover.  This leadership style works handiest whilst the leader is the first-rate in performing or whilst the activity is monotonous, unskilled and routine in nature or in which the challenge is brief-term and unstable. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

Democratic Style 34 All right are reserved with CU-IDOL  The leaders invite and inspire the group individuals to play an critical position in choice-making process, even though the ultimate decision-making energy rests with the chief.  The leader courses the employees on what to carry out and a way to perform, at the same time as the employees talk to the chief their enjoy and the tips if any.  The advantages of this management style are that it results in glad, inspired and more skilled personnel. It ends in an positive paintings surroundings and also encourages creativity.  This management fashion has the simplest downside that it's time-consuming. www.cuidol.in Unit-8 (MBA603)

Modern Theories 35  Leaders of the modern, high technology and highly competitive organization's exhibit inspirational style with vision and perform the work effectively, i.e., do the right things.  The leadership styles based on Charismatic and transformational theories are classified theories are classified into three, viz.,  Envisioning Unit-8 (MBA603) All right are reserved with CU-IDOL  Energizing  Enabling www.cuidol.in

 Envisioning : 36 This style include creating a picture of the future or a desired future state with which people can identify .Envisioning generates excitement. Thus, this style emphasizes on articulation a compelling vision and setting high goal and excitement.  Energizing : The leader in this style directs the generation of energy, the motivation to act among the organizational employees. This style also includes demonstrating personal excitement and confidence, seeking , finding and using success.  Enabling : The leader help the followers physiologically to act or performing the face of challenging goal. This style includes empowering, expressing persona; support and empathising. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

SUMMARY 37  Meaning of Stress : leadership is the art of motivating a group of people to act toward achieving a common goal. In a business setting, this can mean directing workers and colleagues with a strategy to meet the company's needs.  Difference between Leader & Manager Leader : Innovate, Develop, Inspire, Long-term view, Originate, Do the right thing Manager : Administer, Maintain, Control, Short-term, initiative, Do the things right  Sources of power of the leader includes: a. Reward Power b. Coercive Power c. Legitimate Power d. Expert Power e. Referent Power  Theories of Leadership : www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

SUMMARY 38  Style of Leadership : There are two types of different Styles of Leadership as follows : 1) TRADATIONAL THEORIES  Free-rein or Laissez- fair style  Autocratic Style  Democratic Style 2) MODERN THEORIES  Envisioning  Energizing  Enabling www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

MULTIPLE CHOICE QUESTIONS 1. The Ohio State Leadership Studies revealed _____________ and initiating structure as two major dimensions of leadership behaviour: 39 (a) Control (c) Communication (b) Collaboration (d) Consideration 2. _________ used the terms “employee- centred” and “production- centred” to describe leader behaviour: (a) Blake and Mc Canse (c) Fiedler (b) McGregor (d) Likert 3. Which of the below is an example of democratic leadership? (a) \"We can go to the zoo or bird park for this outing. I am OK with anything.\" (b) \"I need your feedback before I make decision. Please speak out.\" (c) \"Everybody will fall in at 1400 hour sharp.\" (d) “I am ok with anything” 4. A leader must……. (a) always lead with the objectives in mind (b) always make decisions that are popular to his people. (c) remove those who do not support his ideas or hinder his plans. (d) be brief and recapture the key points. Answers: 1. (d), 2. (d) , 3.(c) ,4. (a) www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

FREQUENTLY ASKED QUESTIONS Q1. How you will describe the Styles of Leadership in brief ? 40 Ans. A leadership style refers to a leader's characteristic behaviors when directing, motivating, guiding, and managing groups of people. Great leaders can inspire political movements and social change. It is further divided into two i.e. Traditional Style & Modern style and these are further divided into various heads. For further explanation please refer to SLM. Q2.Elucate the meaning of Leadership along with the various theories of leadership. Ans. leadership is the art of motivating a group of people to act toward achieving a common goal. In a business setting, this can mean directing workers and colleagues with a strategy to meet the company's needs. Leadership theories are mainly divided into four main categories : Traditional theory, Behavioral Theory , Contingency theory, Modern theory. For further explanation please refer to SLM. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

REFRENCES 41  Robbins P Stephen, Organizational Behaviour, 15thedition, Prentice Hall, New Delhi.  Koontz – Principles of Management (Tata McGrew Hill, 1st Edition2008)  Robbins & Caulter – Management (Prentice Hall of India, 8thEdition)  Aswathappa K, Organizational Behavior, Himalaya Publishing House, Mumbai  Luthans Fred, Organizational Behaviour, McGraw Hill Book Co, New Delhi.  Prasad L M, OrganisationalBehaviour, Sultan Chand Publications. www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL

42 THANK YOU For queries Email: [email protected] www.cuidol.in Unit-8 (MBA603) All right are reserved with CU-IDOL