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Leader- a person who influences a group of people towards the achievement of a goal".

Nature of Leadership

Leadership is a process [focusing on what leaders actually do] and a property.

As a process, leadership is the use of non-coercive influence to shape the groups or organizations goals,
to motivate behavior toward the achievement of those goals, and to help define group or organizational

As a property, leadership is the set of characteristics attributed to individuals who are perceived to be

Four Factors of Leadership

Leader - You must have an honest understanding of who you are, what you know and what you can do. To be
successful you have to convince your followers not your superiors, that you are worthy of being followed.

Follower -You must know your people. The fundamental starting point is having a good understanding of human
nature, such as needs, emotions and motivation.

Communication-The nonverbal communication is leading. E.g.- when you set example that communicates to
your people that you would not ask them to perform anything that you would not be willing to do. Bad
communication can harm the relation between leader and employee.

Situation-We must use our judgment to decide the best course of action and the leadership style needed for each
situation. What we do in one situation will not always work in another.

Leadership and Management

Leadership and management are related, but they are not the same.

Organizations need both leadership and management if they are to be effective.

Leadership is necessary to create change; management is necessary to achieve orderly results.

Leadership Theories

While many different leadership theories have emerged, most can be classified as one of eight major types:


Great Man
According to this point of view,
great leaders are simply born with the necessary internal characteristics such as charisma, confidence,
intelligence, and social skills that make them natural-born leaders.
Great man theories assume that the capacity for leadership is inherent that great leaders are born, not made.
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 a male quality,
especially in terms of military leadership

Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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2. Trait Theories
Similar in some ways to Great Man theories,
Trait theories assume that people inherit certain qualities and traits that make them better suited to leadership.
Trait theories often identify particular personality or behavioural characteristics shared by leaders. For example,
traits like extraversion, self-confidence, and courage are all traits that could potentially be linked to great

3. Contingency Theories
Contingency theories of leadership focus on particular variables related to the environment that might
determine which particular style of leadership is best suited for the situation.
According to this theory, no leadership style is best in all situations. Success depends upon a number of
variables, including the leadership style, qualities of the followers and aspects of the situation.
a. Fiedlers Model: Defining 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 ones formal structural position in the organization; includes power to
hire, fire, discipline, promote, and give salary increases.

Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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c.LeaderMember Exchange Theory
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance
ratings, less turnover, and greater job satisfaction.

4. Situational Theories
Discussant: Janice R. Gallenero and Manolo Crescini
Date: February 7, 2015

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Situational theories propose that leaders choose the best course of action based upon situational
Different styles of leadership may be more appropriate for certain types of decision-making. For
example, in a situation where the leader is the most knowledgeable and experienced member of a group,
an authoritarian style might be most appropriate.
In other instances where group members are skilled experts, a democratic style would be more effective.
5. Behavioural Theories
Behavioural theories of leadership are based upon the belief that great leaders are made, not born.
Consider it the flip-side of the Great Man theories.
Rooted in behaviourism, this leadership theory focuses on the actions of leaders, not on mental qualities
or internal states.
According to this theory, people can learn to become leaders through teaching and observation.
a. Ohio State Studies
Initiating Structure
The extent to which a leader is likely to define and structure his or her role and those of subordinates in the search for goal attainment.
The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for
subordinates ideas, and regard for their feelings.

b. University of Michigan Studies

Employee-Oriented Leader
Emphasizing interpersonal relations; taking a personal interest in the needs of employees and
accepting individual differences among members.
Production-Oriented Leader
One who emphasizes technical or task aspects of the job.

Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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6. Participative Theories
Participative leadership theories suggest that the ideal leadership style is one that takes the input of
others into account.
These leaders encourage participation and contributions from group members and help group members
feel more relevant and committed to the decision-making process.
In participative theories, however, the leader retains the right to allow the input of others.
7. Management Theories
Management theories, also known as transactional theories, focus on the role of supervision,
organization and group performance.
These theories base leadership on a system of rewards and punishments.
Managerial theories are often used in business; When employees are successful, they are rewarded;
when they fail, they are reprimanded or punished.
8. Relationship Theories
Relationship theories, also known as transformational theories, focus upon the connections formed
between leaders and followers.
Transformational leaders motivate and inspire people by helping group members see the importance
and higher good of the task. These leaders are focused on the performance of group members, but also
want each person to fulfil his or her potential.
Leaders with this style often have high ethical and moral standards.

Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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Power can be explained as the ability of one person or group to cause another person to do that they
might not have done on their own. It resides in individuals, formal groups and informal groups. Power
is also a major resource of directing and controlling organizational goals and activities.
It is very important aspect and plays significant role in the organizations. Its not only organizations but
people in the organization also seek power. It is important for the organization and for its people due to
the following reasons and they are:-

Legitimate Power

The authority that a manager has by virtue of his or her position in the firm

Reward Power

The ability of a manager to give or withhold tangible and intangible rewards.

Effective managers use reward power to signal to employees that they are doing a good job

Coercive Power

The ability of a manager to punish others.

Examples: verbal reprimand, pay cuts, and dismissal

Limited in effectiveness and application; can have serious negative side effects

Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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Expert Power

Power that is based on special knowledge, skills, and expertise that the leader possesses.

Tends to be used in a guiding or coaching manner

Referent Power

Power that comes from subordinates and coworkers respect , admiration, and loyalty

Possessed by managers who are likable and whom subordinates wish to use as a role model

Leadership Styles

Leadership styles may vary among different countries or cultures.

European managers tend to be more people-oriented than American or Japanese managers.

Japanese managers are group-oriented, while U.S managers focuses more on profitability.

Time horizons also are affected by cultures.


This style is used when leaders tell their employees what they want to be done and how they want it
accomplished, without getting the advice of their followers. Some of the appropriate conditions to use it
is when you have all the information to solve the problem, you are short on time, and your employees
are well motivated.
The authoritarian style should normally only be used on rare occasions.

This style involves the leader including one or more employees in the decision making process
(determining what to do and how to do it). However, the leader maintains the final decision making
authority. Using this style is not a sign of weakness, rather it is a sign of strength that your employees
will respect.
A leader is not expected to know everythingthis is why you employ knowledgeable and skilled people.
Using this style is of mutual benefit as it allows them to become part of the team and allows you to make
better decisions.

In this style, the leader allows the employees to make the decisions. However, the leader is still
responsible for the decisions that are made. This is used when employees are able to analyze the
situation and determine what needs to be done and how to do it. You cannot do everything! You must set
priorities and delegate certain tasks.
This is a style to be used when you fully trust and have confidence in the people below you.

Leadership is a key factor in making any organisation successful.

Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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It is aptly mentioned by Stephen covey, a famous management consultant, that managers are important but
leaders are vital for lasting organisational success.

A leader not only commits his followers to organisational growth but also pool the needed resources, guides and
motivates his subordinates.

Leadership influences the behavior of people and makes them positively contribute their energies for the benefit
of the organization.

A leader maintains personal relations an helps the followers to fulfill their needs.

He provides the follower with needed confidence, support and encouragement and thereby creates pleasant work

Leader plays a key role in introducing required changes in the organization.

He persuades, clarifies and inspires people to accept the changes.

A leader handles conflicts effectively and does not allow adverse effect resulting from the conflict. A good leader
always allow his followers to share their feeling and disagreement but persuades them by giving suitable

A leader provides training to their subordinates.

A good leader always builds up his successor and helps in smooth succession process.

Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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Discussant: Janice R. Gallenero and Manolo Crescini

Date: February 7, 2015

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