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Unit IV

Mobilizing Individuals and Chapter 8


Syllabus on Leadership Leadership vs Management

• Concept and functions • Doing right things

• Leadership vs management
• Qualities of good leadership
• Leadership traits and styles
• Approaches to leadership
• Doing things right

• Concept of Leadership
Leadership is both a process and property.
As a process, what leaders actually do , leadership is
the use of non-coercive influence to shape the
group’s or organization’s goals, motivate behavior
toward the achievement of those goals, and help
define group and culture.
As a property, leadership is the set of characteristics
attributed to individuals who are perceived to be


Cont…. Leadership vs. Management

• Thus leaders are people who can influence the Leadership Management
behaviors of others without having rely on Formulates a vision Makes a plan and budget
force; leaders are people whom others accept Long term focus Short term focus
as leaders. Forgers in to new territory Maintains existing problems
Motivates Directs
Leadership is a social influence process in which the
Idealistic Realistic
leader seeks the voluntary participation of
Projects ideas Enforces policies and
subordinates in an effort to reach organizational
objectives. Robert Kreitner(2007) Empowers Controller

Leadership vs Management • Although management and leadership are related,
they are also distinct constructs.
• Organizations need both management and
leadership if they are to be effective. Leadership is
necessary to create change, and management is
necessary to achieve orderly results.
• Management is conjunction with leadership can
produce orderly change, and leadership in
conjunction with management can keep the
organization properly aligned with its environment.

Alignment of Business and

• It is not the strongest of
the species that survives,
nor the most intelligent,
but the one most
responsive to change. -
Charles Darwin


•Andrew Carnegie wanted

to put on his gravestone,
"Here lies a man who
knew how to put into his
service more able men
than he was himself."

Power and Leadership

Syllabus on Leadership
• Power is the ability to affect the behavior of others.
In organizational settings, there are usually five kinds of
power; • Concept and functions
Legitimate Power( Power generated through the
organizational hierarchy)
Reward Power ( Power to give or withhold rewards) • Leadership vs management
Coercive Power ( It is the power to force compliance by
means of psychological, emotional, or physical threats. • Qualities of good leadership
Referent Power ( The personal power that accrues to
someone based on identification, imitation, loyalty, or
charisma • Leadership traits and styles
Expert Power (The power derived from information or
expertise.) • Approaches to leadership


Functions of leadership Summary functions of leadership

• Goal
Actually, the leader’s work is to get the work
done through others. A person who
insists upon doing everything himself or
herself never makes a satisfactory leader.
determination • Determination of goal
The leadership functions are: • Directing • Motivating
• Goal determination
• Coordinate org activities
• Supervising and • Directing (Organization of activities)
• Represent the org coaching • Supervising and Coaching
• Integrate objectives • Motivating • Communicating
• Direct and motivate staffs
• Organize activities
• Communicating • Coordinating
• Encourage team work • Maintaining • Facilitating change
• Communication
• Mediating
• Take initiation
• Control and supervision • Control and

Leadership Styles Autocratic (Authoritarian)

• Manager retains power (classical approach)

• Manager is decision-making authority

• Manager does not consult employees for input

• Subordinates expected to obey orders without


• Motivation provided through structured rewards

and punishments

When to use Autocratic Democratic

• New, untrained employees • Often referred to as participative style
• Employees are motivated • Keeps employees informed
• Employees do not respond to any other
• Shares decision making and problem solving
leadership style
• High-volume production needs
• Limited time for decision making • Gathers information from staff members before
making decisions
• Manager’s power is challenged by an


When to use
Democratic Continued Democratic
• Help employees evaluate their own • To keep employees informed
• To encourage employees to share in decision-making
• Allows employees to establish goals and problem-solving
• Encourages employees to grow on the job and • To provide opportunities for employees to develop a
be promoted high sense of personal growth and job satisfaction
• Recognizes and encourages achievement • Complex problems that require a lots of input
• To encourage team building and participation.
• Can produce high quality and high quantity work
for long periods of time

When to use
Laissez-Faire or Free Rein
• Also known as the “hands-off¨ style • Employees are highly skilled, experienced, and
• Little or no direction educated
• Gives followers as much freedom as possible • Employees have pride in their work and the drive
to do it successfully on their own
• All authority or power is given to the followers
• Outside experts, such as staff specialists or
• Followers must determine goals, make decisions,
consultants are being used
and resolve problems on their own.
• Employees are trustworthy and experienced

Discuss the differences

of three types of
Democratic, autocratic
or authoritarian, and
Laissez-Faire or Free


• Democratic
• Autocratic• Leader delegates a• Laissez-Faire Syllabus on Leadership
• Leader retains all great deal of • Leader grants
Nature authority and authority while authority and

• Concept and functions

responsibility retaining ultimate responsibility to
• Leader assigns responsibility
• Group members are
people to clarify • Work is divided and

defined tasks
Primarily downward
assigned on the
basis of
told to work things
out themselves and • Leadership vs management
do the best they can.
• Qualities of good leadership
flow of • Horizontal comm
communication decision making
• Stress prompt, • Active
• Permits self-starters
• Leadership traits and styles
Primary strength
orderly, and communication
to do things as they
predictable • Enhances personal want without
performance commitment leader’s interference

Primary weakness • Approach tends to• Time consuming

• Group may drift
aimlessly in the
• Approaches to leadership
shift individuals’ absence of direction
initiative from leader.

Leadership Qualities Approaches to Leadership

Personal Qualities Managerial Qualities • The Trait Approach

• Physical fitness • Technical knowledge This is the oldest leadership perspective. This
• Self-confidence • A moderate state of mind approach to leadership was the dominant view
• Intelligence • Organizing ability throughout the first half of the twentieth century.
• Vision and Foresight • Motivation & comm skills
It was then assumed that “leaders are born, not
• Sense of Responsibility • Human relation expert
made”. This means that great leaders were destined
• Humanistic • Wider perspective
For their positions of influence as a function of birth.
• Optimistic • Ability of judgment
• Flexible attitude • Knowledge of psychology Thus, leadership qualities were considered as the
function of heredity.

Cont…… Cont…
• Hundreds of studies were conducted on leadership. • The Behaviour Approach
Scholars found that leaders tend to be higher than Leadership studies took a significant turn in
non leaders on: 1950s. The attention of theorists turned from
Intelligence leader traits to leader behaviour.
Self- confidence The emphasis of these studies was to determine
what type of leadership behaviour is associated
Dominance with leadership effectiveness.
Activity level The Ohio State Studies(1940-50)
Task relevant knowledge Two dimensions of leadership behaviour
Energy were identified:
Consideration: the extent to which a leader
demonstrates trust of subordinates, respects for


Cont… Ohio State Findings

• for their ideas, and considers their feelings.
Structure: the extent to which a leader defines and • Combination of high
structures his or her own role and those of
subordinates towards goal attainment. consideration and high
The Michigan Studies:
initiating structure in leader
This study found two basic forms of leadership behavior were likely to result
Job centered leader behaviour- this leadership pays in high productivity and
close attention to the work.
Employee centered leader behaviour- this
satisfaction at the same time
leadership shows more concern for human aspects
of the group.

University of Michigan Studies Findings

• Michigan Group came in conclusion

that employee centered leadership Which one is preferred in today’s
behavior was associated with higher settings?
productivity and job satisfaction. -Michigan Group Studies
–Production oriented leaders were -Ohio State Studies
associated with low group productivity
and lower job satisfaction

Managerial grid model (9x9)

• The managerial grid model (1964) is a style
leadership model 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.
• A graphical plot of a leader's assessment of the
importance of a task versus the importance of



This approach to leadership regards the
effectiveness of leadership as dependent on the Fred E. Fiedler developed a model called
particular situation. The basic idea is that there is
no one best way to be a leader or exercise contingency theory of leadership
leadership. effectiveness in 1967. This model proposes
The effectiveness of leadership depends on the that effective group performance depends on
interaction of the leader’s personal characteristics, the proper match between the leader’s style
the leader’s behavior, and factors in the leadership
situation. and the situation allowing him or her the
A successful leader must be adoptive and flexible. control and influence.

• Path- Goal Theory

Robert House developed this theory in 1971.
According to this theory, leaders can enhance
motivation of subordinates by linking rewards with
performance. This is called path goal theory
because the leaders have to clarify the subordinates
the goals that they have to attain and the paths
they have to follow to reach there.
This theory believes that motivation is essential to
effective leadership.

Summary: Approaches to Leadership

• Trait approach: leaders are born
• Behavioral approach:
– Ohio State
– Michigan
• Managerial Grid (9x9)
• Situational Approach
– Fiddler’s contingency approach
– Path-goal theory


Example board questions Example board questions

• What are the situational approaches to leadership? Briefly • What are the two basic leadership styles as identified by the Ohio
describe each approach and compare the findings. State and University of Michigan Studies? Which style is thought to
be more effective in present business context?
• What is leadership? Discuss the trait and behavioral
• Could someone be a manager but not a leader? A leader but not a
approaches to leadership. manager? Both a leader and a manager? Explain.
• Mention the major findings of the Michigan and Ohio State • Explain the functions of leadership. What is the situational
studies of leadership. approach to leadership?
• Define leadership and describe approaches to leadership • Identify basic leadership styles and explain which style if thought to
• Define leadership. Explain the behavioral theory of be more effective in present day context
leadership • Compare and contrast findings of behavioral and situational
approach to leadership.
• Explain the approaches to leadership. Why leadership is a • Explain the path goal theory of leadership and state its implications
necessary management function? for managers

Syllabus Managing Work Teams

• Concept, importance, types, and formation of
work groups
Chapter 9 • Team management-concept, types and
strategy for effective team management
Groups, Teams and • Organizational conflicts-concept, types and
Conflict Management sources
• Conflict management strategies and

Work Groups: Concept and Formation

A group is a collection of people who join together
through interaction and interdependence for
achieving common goals.
Group members share common values and are
affected in their behaviour and performance by
group norms.
A group is two or more persons who interact with one another
such that each person influences and is influenced by each
other person. ( Marvin Shaw, 1981)


Cont….. Cont…
• A Group is characterized by;
• Group Formation
collection of people
Groups are important because they have a decisive influence
Interaction on the behaviour of people. They also play significant role in
Shared goal and interest improving or restricting output depending upon the group’s
Collective identity perception of the task and of the management. Groups also
can be a major stabilizing influence in building up
Group leader cooperation at work.
Norms Groups are formed to satisfy the individual needs of the
members as well as of the organization.

Stages of Group Formation
Terence R Michell, 1982 has suggested the
reasons why people join and form groups:
the need to affiliation
group can be a source of information
group serve as a source of rewards
being in a group may allow an individual to
accomplish goals


Importance of Groups
• The importance of groups can be listed as follows:
Groups provide satisfaction to members by fulfilling their
• Groups play a very important role in an
social and affiliation needs.
organization. The organization benefits because
Groups are good problem solvers.
groups have greater total resources than individuals
Groups make better decisions than individuals
Groups are good for implementing decisions
• Managerial effectiveness does not depend merely Groups more effectively control their members
on the ability to manage individuals, but also on the
Groups contribute to the development of members
ability to manage groups personality.

• Types of Group


Team Management Types of Teams

• A team is a formal group made up of interdependent • Problem-solving Teams
individuals who are responsible for the attainment of
common objectives. Problem solving teams are formed for the
• A team is self- directing, self- managing and autonomous. specific purpose of solving problems. Team
• Team members are mutually accountable for achieving members meet regularly to identify problems and
common objectives. suggest remedies. However, such teams do not have
• A team generates synergy through coordinated efforts. the authority to implement any of suggested
Synergy occurs when the combined team creates more than
the sum of what each member could do independently. actions. Now a days the problem solving teams
have been taken the shape of quality circles.
( Stephen P. Robbins, 2009) “A team is a group of people whose
efforts result in a performance that is greater than the sum
of those individual inputs.”

Self- Managed Work Teams

Virtual Teams • They are fully autonomous teams and have
Virtual teams are such teams whose authority to implement solutions. Being
members rarely or never meet face to face and autonomous teams, they also have full
interact by using various forms of information responsibility for outcomes. These teams do
technology such as e-mail, computer networks, their own scheduling, rotate jobs on their
telephone, fax, and video conferences. own, establish production targets and set
The principal advantage of virtual teams is that working hours and other facilities.
they enable managers to disregard geographic
distances and form teams whose members have
the knowledge, expertise, and experience to
tackle the problem.

Cross- functional Teams The Value of Teams

Stephen P. Robbins(1996) has outlined the following benefits
Cross functional teams are formed when of team;
employees from different departments are Increased employee motivation
grouped together to perform a task. The Higher level of productivity
expertise and knowledge that are housed in Increased employee satisfaction
different departments are brought together Common commitment to goals
as a team. Improved communication
Expanded job skills
Organizational flexibility


Strategy for Effective Team Management

• Team management aims at improving the problem solving abilities
and creative thinking of employees. For this purpose the

•Google’s Team
management of an organization has to create cohesive, mutually
supportive and trusting teams.
The following is a checklist that can be used to build strategies for

Approach: Aristotle
effective team management:
- Set achievable goals for the team.
- Keep members informed and ensure that communication lines remain open.

- Encourage members to trust one another and express opinions without fear.
- Analyze problems rationally and objectively.
- Make decisions by consensus
- Manage conflicts through problem solving

•Key findings
- Promote responsibility for each member’s action.
- Provide rewards for the team and for individual members

• Conflict refers to all kinds of opposition or antagonistic • Sometimes conflict exists due to scarcity of
interaction between or among individuals and groups. resources.
• Conflict exists whenever one party perceives that another • Conflicts are inevitable. Thus, managers have
party has hampered or is about to hamper, the
accomplishment of goals. to handle and settle conflicts in proper
• Creatively managed conflicts can lead to new
ideas and perspectives. Managers must,
therefore, use their talent and experiences to
differentiate between the destructive and
constructive conflicts.

Types of Conflict
Organizational Conflict

Intrapersonal Interpersonal Intergroup
Conflict Conflict Conflict



Conflict Management Techniques Managing Conflicts in organizations

• Problem Solving
Managing Conflict
• Expansion of Resources
• Avoidance
Stimulating Preventing
• Compromise
Conflict Conflict
• Authoritative Command
• Altering the Human variable
• Altering the Structural Variable
• Communication
• Negotiation and Bargaining

Syllabus Employee Motivation

• Concept and types

Chapter 10
Employee Motivation
• Theories of Maslow and
• Techniques of employee

Concept of Motivation
• Literally, motivation means inducement to act or move. It is
an inner impulse that induces a person to act in a certain
• In an organizational setting, motivation means to make an
employee act in a desired manner.
• Motivation really comprises all the internal urges which are
described as desires, wishes, drives, needs etc. which make a
person strive for doing a thing.
• Motivation means what makes people perform or do things.
• Motivation energizes the behavior of people and induces
them towards the attainment of common goals.


Types of Motivation On the basis of sources

Intrinsic Motivation ( this motivation is
On the basis of reward related to the job one is doing)
Positive Motivation When you pursue an activity simply for enjoyment, you
Positive motivations are the process of attempting to are doing so because you are intrinsically motivated.
influence the behaviors of employees through the means of
reward. It is concerned with the incentives provided to the Intrinsic motivation occurs when we act without any
employees. obvious external rewards.
Negative Motivation Extrinsic Motivation( this motivation is external to the
Negative motivation means the act of forcing employees to job or task) The motivating factors are external, or
work by means of threats and punishment. It is the negative
treatment exercise on the employees who are not performing outside, rewards such as money or grades. These
their work as expected. rewards provide satisfaction and pleasure that the
task itself may not provide.

Motivation and Performance

• Research studies indicate that motivation does not
necessarily lead to better job performance. In fact it works
the other way around. Job performance leads to motivation
and satisfaction.
• Employees may derive rewards from their performance that
are a source of satisfaction. The rewards may be of intrinsic
or extrinsic nature.
• These studies conclude that managers can affect motivation
through appropriately structuring rewards and the ways that
the employees will view these rewards.
Job performance= f( Ability x Motivation)


Theories of Motivation
• The Need Hierarchy Theory( Abraham Maslow,1943)
• Motivation- Hygiene Theory( Frederick Herzberg in early

Comparison Between Maslow and Herzberg Model

Need Hierarchy Model- Individuals have needs and act in a manner to
satisfy them. There is a priority of needs.
Two Factor Model- Needs are prime motivators. Certain factors
( motivators) motivate workers, other factors( dissatisfiers) do not.

Reward System to Motivate Performance

Rewards, motivation and job performance are
Techniques of Employee Motivation closely interlinked. Managers can design and use
the reward system as a basic mechanism to
motivate employees for better performance.
• Motivating employees is not an exact science. Reward refers to the material and psychological
Different methods of motivation may motivate payoffs for performing tasks in the workplace.
people at different level. What a manager can do to This indicates that rewards do not mean just
find out what can motivate his or her employees is pay, or financial incentives.
simply ask them. Reward system include;
Incentive system

• Quality Circles-
• Motivation through Employee Participation
A QC consists of a small group of employees.
Quality of Work Life
Usually, the members of a QC meet for about an
Quality Circles
hour before or after the working hours to
Employees’ Share Ownership identify, analyze, and suggest solutions to their
Flexible Work Schedules work related problems. Members participate
Self Managed Work Teams meaningfully in QC meetings.
An important ingredient of QC is the sense of
autonomy experienced by its members. This
gives them a sense of pride and satisfaction
when some of these solutions are implemented
and publicized.


• Employee Share Ownership-
The involvement of employees in management
Flexible Work Schedules:
can be increased by making them a part of the
organization’s management. This scheme has In this system, the workday is broken down in
two advantages. First, the ownership feeling is to two parts: core time and flextime.
developed among employees and increases
Employees are required to be at their
workstations during the ‘core time’. However,
their commitment to the organization. Secondly,
they have a choice to select their own flexible
the employees would have an opportunity to
time. The advantage of this system is that the
participate in decision making and share their
employees can tailor their workday to fit
ideas. their personal needs.

• Self- Managed Work Teams
This concept is guided by the idea that “ self
management is the best management”. Self- Chapter 11
managed work teams are work groups in which
members perform many of the functions usually Interpersonal and Organizational
reserved to management, such as planning, Communication
scheduling, budgeting, directing, and evaluating.
Such teams have clearly defined inputs and
outputs. These teams are the best mechanisms to
empowering employees and to encourage their
participation in work related activities.

Syllabus on interpersonal and Meaning of Communication

organizational communications • Communication is the act of conveying
information for the purpose of creating a
• Concept and purpose
shared understanding.
• Communication network and process
• Communication flows
• Types of communication
• Barriers to effective communication
• Enhancing organizational


• Organizational communication is the exchange

of information, ideas, and views within and
outside the organization.



Interpersonal communication