OL All Units Material PDF

RNSIT – MBA
ORGANIZATIONAL LEADERSHIP
(18MBAHR402)
Material Prepared / Compiled by:
Prof. Manjunath N
RNSIT – MBA
This document is intended for internal circulation in Dept of MBA – RNSIT only. Page 1
RNSIT – MBA
RNSIT – MBA
TABLE OF CONTENTS
SL NO PARTICULARS PAGE NO
Unit 1 5 – 20
1
Unit 2 21 – 36
2
Unit 3 37 – 64
3
Unit 4 65 – 83
4
Unit 5 84 – 122
5
Unit 6 123 – 138
6
Question Papers & Academic Viva Questions 139 – 145
7
RNSIT – MBA
RNSIT – MBA
ORGANIZATIONAL LEADERSHIP (18MBAHR402)
UNIT I
INTRODUCTION TO LEADERSHIP
Contents of the Module:
• Leadership Basics – Definition, Importance, Functions, Characteristics etc

• Roles of a Leader (Mintzberg’s leadership managerial roles)
• Leadership theory Paradigms.
• Levels of Analysis of Leadership theory.
• Miscellaneous topics – Leadership vs. Management; Are leaders born or made etc
Defining Leadership:
1. Leadership is the influencing process of leaders and followers to achieve organizational

objectives through change.
2. In a business setting, leadership can mean directing workers and colleagues with a
strategy to meet the company's needs.
3. Leadership is a process by which an executive can direct, guide and influence the
behavior and work of others towards accomplishment of specific goals in a given
situation. Leadership is the ability of a manager to induce the subordinates to work with
confidence and zeal.
4. Leadership is the potential to influence behaviour of others. It is also defined as the

capacity to influence a group towards the realization of a goal. Leaders are required to
develop future visions, and to motivate the organizational members to want to achieve the
visions.
5. 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.”
6. In a business setting, leadership can mean directing workers and colleagues with a
strategy to meet the company's needs.
RNSIT – MBA
Leadership definition Key Elements:
1. Leaders – Followers: A follower is a person who is being influenced by a leader. A

follower can be a manager or a non manager. Good followers are not “yes people” who
simply follow the leader without giving input that influences the leader. Effective leaders
influence followers and their followers influence them. The qualities needed for effective
leadership are the same as those needed to be an effective follower.
2. Influence – Influencing is the process of a leader communicating ideas, gaining

acceptance of them, and motivating followers to support and implement the ideas through
change. Influence is the essence of leadership. When you have a management position,
you have more power to influence others. Your ability to influence others can be
developed. Influencing includes power, politics and negotiating.
3. Organizational Objectives – Effective leaders influence followers to think not only of

their own interests but the interest of the organization. Leadership occurs when followers
are influenced to do what is ethical and beneficial for the organization and themselves.
Taking advantage of followers for personal gain is not a part of leadership. Members of
the organization need to work toward an outcome that a leader and a follower both want,
a desired future or shared purpose that motivates them toward this more preferable
outcome. Leaders need to provide direction; with the input of followers, they set
challenging objectives and lead the change to achieve them.
4. Change – Influencing and setting objectives is about change. Organizations need to

continually change, in adapting to the rapidly changing global environment. Effective
RNSIT – MBA
leaders realize the need for continual change to improve performance. Leadership
involves influencing followers to bring about a change toward a desired future for the
organization.
5. People – Leadership is about leading people. Effective leaders and followers enjoy
working with people and helping them succeed. Research, experience and common sense
all point to a direct relationship between a company’s financial success and its
commitment to leadership practices that treat people as assets. There is little evidence
however that being a mean, tough manager is associated with leadership success. It is the
collective efforts of people that make things happen.
Importance of Leadership:
1. Initiates action- Leader is a person who starts the work by communicating the policies
and plans to the subordinates from where the work actually starts.
2. Motivation- A leader proves to be playing an incentive role in the concern’s working. He

motivates the employees with economic and non-economic rewards and thereby gets the
work from the subordinates.
3. Providing guidance- A leader has to not only supervise but also play a guiding role for
the subordinates. Guidance here means instructing the subordinates the way they have to
perform their work effectively and efficiently.
4. Creating confidence- 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.
5. Building 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.
6. 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 employees on
humanitarian terms.
RNSIT – MBA
7. Co-ordination- Co-ordination can be achieved through reconciling personal interests

with organizational goals. This synchronization can be achieved through proper and
effective co-ordination which should be primary motive of a leader.
Nature / Characteristics /Features of Leadership:
1. Influence the behaviour of others: Leadership is an ability of an individual to influence

the behaviour of other employees in the organization to achieve a common purpose or
goal so that they are willingly co-operating with each other for the fulfillment of the same.
2. Inter-personal process: It is an interpersonal process between the leader and the

followers. The relationship between the leader and the followers decides how efficiently
and effectively the targets of the organization would be met.
3. Attainment of common organizational goals: The purpose of leadership is to guide the

people in an organization to work towards the attainment of common organizational goals.
The leader brings the people and their efforts together to achieve common goals.
4. Continuous process: Leadership is a continuous process. A leader has to guide his

employees every time and also monitor them in order to make sure that their efforts are
going in the same direction and that they are not deviating from their goals.
5. Group process: It is a group process that involves two or more people together interacting
with each other. A leader cannot lead without the followers.
6. Dependent on the situation: It is situation bound as it all depends upon tackling the
situations present. Thus, there is no single best style of leadership.
ROLES OF A LEADER:
Leadership Managerial Roles – Henry Mintzberg
Henry Mintzberg identified ten managerial roles that leaders perform to accomplish
organizational objectives. The roles represent the dominant classes of behavioral activities that
managers or their followers perform. A role is described as a set of expectations of how a person
will behave to perform a job.
I. Interpersonal Roles.
II. Informational Roles.
III. Decisional Roles.
RNSIT – MBA
I. Interpersonal Roles: They include:

1. Figurehead role.
2. Leader role.
3. Liaison role.
1. Figurehead Role – Leaders perform the figurehead role when they represent the
organization or department in legal, social, ceremonial and symbolic activities. Top level
managers are usually viewed as figureheads for their organizations.
Some examples of the activities under this role are:

✓ Signing official documents (expense authorization, checks, vouchers, contracts
and so n)
✓ Entertaining clients or customers as official representatives and receiving /
escorting official visitors.
✓ Informally talking to people and attending outside meetings as an organizational
representative.
✓ Presiding at meetings and ceremonial events.
2. Leader Role – This role is that of performing the management functions to effectively
operate the manager’s organization unit. Therefore the leader role pervades all
managerial behavior. The leader influences how he performs the other roles.
Some examples centric to this role are:

✓ Hiring and Training
✓ Giving instructions and coaching.
✓ Evaluating performance.
3. Liaison Role – Leader performs the liaison role when they interact with people outside
their organization unit. Liaison behavior includes networking to develop relationships
and gain information and favors. Organizational politics is a vital part of this role.
Here are a few examples of this role:
✓ Serving on committees with members from outside the organizational unit.
✓ Attending professional / trade association meetings.
✓ Calling and meeting with people to keep in touch.
II. Informational Roles: They include:

1. Monitor role.
2. Disseminator role.
3. Spokesperson role.
RNSIT – MBA
1. Monitor Role – Leaders perform the monitor role when they gather information. Most of
the information is analyzed to discover problems and opportunities and to understand
events outside the organizational unit. Some of the information is passed on to other
people in organizational unit (disseminator role) or to outside the unit (spokesperson
role); information is gathered by behavior including:
✓ Reading memos, reports, professional/trade publications, newspapers etc.
✓ Talking to others, attending meetings inside and outside the organization.
✓ Observing (visiting a competitors’ store to compare products, prices and business
processes)
2. Disseminator Role – Leaders perform the disseminator role when they send information
to others in the organizational unit. Managers have access to information that is not
available to the employees. Some of the information that comes from higher levels of the
management must be passed on to employees either in its original form or paraphrased.
These include:
✓ Orally through voice email, one on one discussions and group meetings.
✓ Written through email and snail mail.
3. Spokesperson Role – Leaders perform the spokesperson role when they provide
information to people outside the organization. People must report information to their
boss (board of directors, owners, managers) and people outside the organization (other
departments, customers, suppliers). Leaders lobby and serve as public relations
representatives for their companies.
Some examples of this role include:

✓ Meeting with the boss to discuss performance and with the budget officer to discuss
the unit budget.
✓ Answering letters.
✓ Reporting information to the government.
III. Decisional Roles: They include:

1. Entrepreneur role.
2. Disturbance handler role.
3. Resource – Allocator role.
4. Negotiator role.
1. Entrepreneur Role – Leaders perform the entrepreneur role when they innovate and
initiate improvements. Leaders often get ideas for improvements through the monitor
role. Some examples include:
RNSIT – MBA
✓ Developing new or improved products and services.

✓ Developing new ways to process products and services.
✓ Purchasing new equipment.
2. Disturbance – Handler Role – Leaders perform the disturbance handler role when they
take corrective action during crisis or conflict situations. Unlike the planned action of a
entrepreneur to take advantage of an opportunity, the disturbance is a reaction to an
unexpected event that creates a problem. Leaders typically give this role a priority over
all other roles.
Some examples of situations that a leader might want to resolve as per this role include:
✓ A union strike.
✓ The breakdown of important machines/equipment.
✓ Needed material arriving late.
✓ Has to meet a tight schedule.
3. Resource – Allocator Role – Leaders perform the resource allocator role when they
schedule, request authorization and perform budgeting activities.
Some examples of resource allocation include:

✓ Deciding what is done now, done later and not done (time management; priorities
etc)
✓ Determining who gets overtime or a merit raise (budgeting)
✓ Scheduling when employees will use material and equipment.
4. Negotiator Role – Leaders perform the negotiator role when they represent their
organizational unit during routine and non routine transactions that do not include set
boundaries (such as only one price and term of a sale/purchase for a product/service or
pay of an employee. When there are no set prices or pay and conditions, leaders can try to
negotiate a good deal to get the resources they need.
Some examples of negotiations include:

✓ Pay and benefits package for a new professional employee or manager.
✓ Labour union contract.
✓ Contract with a customer (sale) or supplier (purchase)
Conclusion: The decision on which of these roles is the most vital for the leader depends upon
the task at hand. The relative emphasis placed on these roles will vary as a function of
RNSIT – MBA
organizational technology, the day to day problems faced by the leaders and the task
environment of their organization.
LEVELS OF ANALYSIS OF LEADERSHIP THEORY:
A leadership theory is an explanation of some aspect of leadership; theories have practical

value because they are used to better understand, predict and control successful leadership.
One way to classify leadership theory and research is by the levels of analysis. Most leadership
theories are formulated in terms of processes at only one of the three levels, the discussion of
which follows as under.
The 3 levels of analysis of leadership theory are: Individual, Group and Organizational.
Level 1 – Individual Level of Analysis:

This focuses on the individual leader and the relationship with the individual followers. The
individual level analysis can also be called the Dyadic process. This approach views leadership
as a reciprocal influencing process between the leader and the follower. There is an implicit
assumption that leadership effectiveness cannot be understood without examining how a leader –
follower influence each other over time.
This level focuses on the following aspects:

➢ Basics of leadership – Roles of a leader, Leadership paradigms, Importance of leaders etc
➢ Leadership traits and ethics – Personality profile of leaders
➢ Leadership attitudes
➢ Ethical leadership.
RNSIT – MBA
➢ Leadership behaviour and its link with motivation.

➢ The leadership grid & Motivation theories
➢ Impact of Power, Politics, Networking & Negotiation on Leadership.
➢ Contingency leadership theories, behavioral theories & Leadership Substitutes theory.
Level 2 – Group Level of Analysis:

The second level of analysis of leadership theory focuses on the relationship between the leader
and the collective group of followers. This level is also called the group process. Group focus
theories focus on how a leader contributes to group effectiveness. This also entails extensive
research on small groups that have identified important determinants of group effectiveness;
productive meetings with leaders are also another dimension to this level of analysis.

➢ Communication skills of a leader.
➢ Feedback and its relevance from a leadership standpoint.
➢ Coaching & Leadership.
➢ Role of leaders in managing conflicts & conflict management styles.
➢ Psychological contracts.
➢ Collaborating & conflict management style models.
➢ Leader – Follower relations
➢ Dyadic theory; LMX theory
➢ Followership & Delegation – A leadership perspective.
➢ Team leadership – The use of teams and leaders’ role in it.
➢ Types of teams and decision making in teams
➢ Leadership skills for effective team meetings.
➢ Self Managed Teams.
Level 3 – Organization Level Analysis:

The second level of analysis of leadership theory focuses on the organization. This level is also
called the organizational process. Organizational performance in the long run depends on
effectively adapting to the environment and acquiring the necessary resources to survive and on
whether the organization uses an effective transformation process to produce its products and
services. Much of the current research at organizational level focuses on how top level managers
can influence organizational performance.

➢ Charismatic leadership.
➢ Transformational leadership
➢ Transactional leadership.
RNSIT – MBA
➢ Stewardship & Servant leadership.

➢ Role of leaders in creating high performance work cultures.
➢ Value based leadership.
➢ Changing demographics & Diversity.
➢ Learning Organizations – Basics & leaders’ role in creating them.
➢ Strategic leadership
➢ Crisis leadership.
➢ Leading change.
LEADERSHIP THEORY PARADIGMS:
A leadership paradigm is a shared mindset that represents a fundamental way of thinking

about, perceiving, studying, researching and understanding leadership.
The leadership paradigm has changed in the last 70 years during which it has been studied.
The following four major classifications (paradigms) of leadership are:

1. Trait leadership theory paradigm.
2. Behavioral leadership theory paradigm.
3. Contingency leadership theory paradigm.
4. Integrative leadership theory paradigm.
1 THE TRAIT THEORY PARADIGM
By traits, we mean personality characteristics that endure (last long) in an individual. Early
leadership theories were based on the assumption that leaders are born, not made. Researchers
wanted to identify a set of characteristics that distinguished leaders from followers or effective
from ineffective leaders.
Leadership trait theories attempt to explain distinctive characteristics accounting for leadership
effectiveness. It was been analyzed through research (during 1930s and 1940s) that physical,
psychological traits or qualities such as high energy level, appearance, aggressiveness, self
reliance, persuasiveness and dominance are important traits that successful leaders possess.
The list of traits was used to be a pre requisite for promoting candidates to leadership positions.
Although there is no list of traits that guarantees leadership success, traits that are related to
leadership success have been identified.
RNSIT – MBA
2 THE BEHAVIORAL LEADERSHIP THEORY PARADIGM
By the 1950s, most of the leadership research had changed its paradigm, going from trait theory
to focusing on what the leader actually did on the job (behaviour). In the continuing quest to find
one best leadership style in all situations, researchers attempted to identify differences in the
behaviour of effective leaders versus ineffective leaders. Thus behavioral leadership theories
attempt to explain distinctive styles used by effective leaders or to define the nature of their
work.
Mintzberg’s ten leadership managerial roles are an example to this theory. Behavioral research
focuses on finding ways to classify behaviour that will facilitate our understanding of leadership.
Hundreds of studies examined the relationship between leadership behaviour and the measures of
leadership effectiveness. However there was no agreement on one best leadership style for all
management situations. On the positive side, Mintzberg’s leadership theory is used to train
leaders.
3 THE CONTINGENCY LEADERSHIP THEORY PARADIGM
Both the trait and behavioral leadership theories were attempts to find the one best leadership
style in all situations – thus they are called universal theories. However in the 1960s it became
apparent that there is no one best leadership style in all situations. Thus the leadership paradigm
shifted to contingency theory.
Contingency Leadership theories attempt to explain the appropriate leadership style based on the
leader, follower and the Situation. In other words, it seeks to answer the question – which traits
and/or behaviours will result in leadership success given the situation variables?
RNSIT – MBA
The contingency theory paradigm emphasizes the importance of situational factors, including the
nature of work performed, the external environment and the characteristics of the followers. One
aspect of this research is to discover the extent to which the managerial work is the same or
different across different types of organizations, levels of management and cultures.
4 THE INTEGRATIVE LEADERSHIP THEORY PARADIGM

In the mid to late 1970s, the paradigm began to shift to the integrative, to tie the theories together
or the neo charismatic theory. As the name implies, integrative leadership theories attempt to
combine the trait, behavioral and contingency theories to explain successful, influencing leader –
follower relationships.
Researchers try to explain why the followers of some leaders are willing to work so hard and
make personal sacrifices to achieve the group and organizational objectives or how effective
leaders influence the behaviour of their followers. These theories identify behaviours and traits
that facilitate the leaders’ effectiveness and explore why the same behaviour by the leader may
have a different effect on followers depending on the situation.
From “Management” to the “Leadership” theory paradigm – “MANAGEMENT /

MANAGER vs. LEADERSHIP / LEADER”
Leadership and management are the terms that are often considered synonymous. It is essential
to understand that leadership is an essential part of effective management. As a crucial
component of management, remarkable leadership behaviour stresses upon building an
environment in which each and every employee develops and excels.
Leadership is a quality of influencing people, so that the objectives are attained willingly and
enthusiastically. It is not exactly same as management, as leadership is one of the major elements
of management. Management is a discipline of managing things in the best possible manner. It
is the art or skill of getting the work done through and with others. It can be found in all the
fields, like education, hospitality, sports, offices etc.
Comparison Chart:
BASIS FOR
LEADERSHIP MANAGEMENT
COMPARISON
Meaning Leadership is a skill of Management is an art of systematically

leading others by organizing and coordinating things in an
examples. efficient way.
RNSIT – MBA
BASIS FOR
LEADERSHIP MANAGEMENT
COMPARISON
Basis Trust Control
Emphasis on Inspiring People Managing activities
Power Influence Rule
Focus on Encouraging change Bringing stability
Strategy Proactive Reactive
Formulation of Principles and guidelines Policies and Procedures
Perspective Leadership requires good Management has a short range perspective.

foresightedness.
Leader versus Manager

Leadership doesn’t require any managerial position to act as a leader. On the other hand, a
manager can be a true manager only if he has got the traits of leader in him. By virtue of his
position, manager has to provide leadership to his group. Leadership as a general term is not
related to managership. Therefore, it is true to say that, “All managers are leaders, but all leaders
are not managers.”
A leader is one who influences the behavior and work of others in group efforts towards
achievement of specified goals in a given situation. On the other hand, manager can be a true
manager only if he has got traits of leader in him. Manager at all levels are expected to be the
leaders of work groups so that subordinates willingly carry instructions and accept their
guidance. A person can be a leader by virtue of all qualities in him.
Comparison Chart: Leaders and Managers can be compared on the following basis:
Basis Manager Leader
A person becomes a manager by A person becomes a leader on basis of

Origin
virtue of his position. his personal qualities.
The subordinates are the followers The group of employees whom the
Followers
of managers. leaders lead is his followers.
RNSIT – MBA
A manager performs all five Leader influences people to work

Functions
functions of management. willingly for group objectives.
A leader is required to create cordial

A manager is very essential to a
Necessity relation between person working in
concern.
and for organization.
Stability It is more stable. Leadership is temporary.
Mutual
All managers are leaders. All leaders are not managers.
Relationship
Manager is accountable for self and

Leaders have no well defined
Accountability subordinates behaviour and
accountability.
performance.
People follow manager by virtue of People follow them on voluntary

Followers
job description. basis.
A manager can continue in office till

A leader can maintain his position
Role he performs his duties satisfactorily
only through day to day wishes of
continuation in congruence with organizational
followers.
goals.
A leader has command over different

Manager has command over
sanctions and related task records.
Sanctions allocation and distribution of
These sanctions are essentially of
sanctions.
informal nature.
ARE LEADERS BORN OR MADE?

The answer is neither and both. Effective leaders are not simply born or made; they are born with
some leadership ability and develop it later on. If top level managers did not believe that
leadership skills could be developed, they would not spend millions of dollars annually to do so.
ARGUMENT 1: Leaders are born not made:

Trait theories believe that people inherit certain qualities and traits that make them better suited
to leadership. For centuries, it was thought that great leaders were born, not made. Many have
RNSIT – MBA
professed that the Caesars, Lincolns and Gandhis of the world were born to accomplish greatness
– to command and inspire hundreds, thousands or even millions.
Those who subscribed to this school of thought supposed that great leaders have innate qualities
that cannot be taught. In the 19th century, this notion was named the ‘great man’ theory by
historian Thomas Carlyle, who argued that people do not enter the world with equal abilities and
talents. The very best leaders are born with distinctive capabilities, enabling them to captivate the
masses. There are certain inborn characteristics that predispose people to be and become leaders.
There is a significant difference between “learning a skill” and mastering one, in the same way
that others are born with amazing musical gifts or athletic talents. They will excel naturally in
these areas but others would be like a fish out of water and may struggle to get to the same point.
Born (natural) Leaders are different to made (artificial leaders). All remarkable leaders have
great history behind them. They were leaders from the onset of their journey.
ARGUMENT 2: Leaders are made not born:

Birth is a natural process and the notion to associate leadership with it is arguable. If leaders
were solely born what is the point of the rest of us studying leadership or management?
Research by psychologists has proved that, in the main, Leaders are ‘mostly made.' The best
estimates offered by research is that leadership is about one-third born and two-thirds made. The
ability to effectively lead, motivate and direct a group of people – whether it is in business, sport
or politics - requires a very complex set of skills, mostly acquired through experiences, self
development as well as access to subsequent training.
Behavioral Theories believe that people can become leaders through the process of teaching,
learning and observation. Leadership is a set of skills that can be learned by training, perception,
practice and experience over time. Leadership learning is lifetime activity. Good leaders seek out
development opportunities that will help them learn new skills. The military embraces this
doctrine which is evident through its leadership training programme.
Great leaders never stop learning, whether through day-to-day challenges, their personal
relationships or the people they work alongside. With each challenge comes a new experience, a
different way of thinking or an invaluable lesson in understanding others. The skill of
observation is therefore key, but this is not necessarily innate: it can come with time and practice.
******
RNSIT – MBA
QUESTION BANK
Unit 1:
3 Mark Questions:
1. Define leadership.
2. What are traits?
3. What is the great man theory?
4. Differentiate between leadership theory and leadership paradigm.
7 Mark Questions:
1. Explain levels of analysis of leadership theory.

2. Differentiate between leadership and management.
3. Assess the importance of leadership.
4. Brief the characteristics of leadership.
10 Mark Questions:
1. Explain the four leadership theory paradigms.

2. Explain the managerial roles of a leader.
3. Explain the five elements in the leadership definition.
4. Are Leaders born or made? Discuss.
RNSIT – MBA

UNIT 2
LEADERSHIP TRAITS & ETHICS
Contents of the Unit:

• Personality traits and leadership
• Traits of effective leaders
• Leadership Attitudes
• Ethical leadership
• Achievement Motivation theory.
Personality Traits and Leadership:

As evident from the previous unit, “Trait” paradigm of leadership was the basis for
understanding leadership studies. The original study of trait theory was called the great man
approach which advocated the fact that people are born with specific traits and thus they become
leaders by birth. This in a way summarizes the need to explore the link between Personality and
Leadership as trait theory is closely related to Personality too.
Personality and Traits:

Why are some people outgoing and others shy, loud, and quiet, warm and cold, aggressive and
passive? This list of behaviors is made up of individual traits. Traits are distinguishing and
enduring personality characteristics. Personality is a combination of traits that classifies an
individual’s behavior. Understanding people’s personalities is important because personality
affects behavior as well as perceptions and attitudes. Knowing personalities helps you to explain
and predict others’ behavior and performance.
PERSONALITY – AN INTRODUCTION
A major part of coming to understand ourselves is developing a sense of what our personality
characteristics are. An effective manager will always hire the smartest person available. While
intelligence is really important, personality is more likely to affect employees’ attitudes and
behavior.
PERSONALITY – MEANING: The relatively stable set of psychological characteristics that

influences the way an individual interacts with his or her environment and how he or she feels,
thinks, and behaves.
Personality - A relatively stable set of characteristics that influences an individual’s behavior

Personality can be defined as “the dynamic organization within the individual of those
psychophysical systems that determine his characteristic behavior and thought.”
RNSIT – MBA
Characteristic features of Personality:

1. Consistency: recognizable order and regularity of behavior.
2. It may relate to psychological or physiological attributes. (influenced by needs/processes)
3. Impact behaviors and actions. (Caused behavior)
4. Displayed through multiple expressions: (seen in thoughts, feelings, close relationships)
5. Organized.
Determinants of Personality:
• Heredity: factors determined at conception; related to physical stature, facial
attractiveness, gender, temperament, energy level; these are the characteristics which are
generally influenced by who your parents are as such.
• Environment: Among the factors that exerts pressure on our personality formation are
the culture in which we are raised; our early conditioning; the norms among our family,
friends and social groups and other influences that we experience.
• Situation: A third factor, situation, influences the effects of heredity and environment on
personality. An individual’s personality, although generally stable and consistent, does
change in different situations.
• Physical Factors: Physical features may involve the height of a person (short or tall), his
color (white or black), his health status (fat or skinny) and his beauty (handsome or ugly).
These factors are involved when interacting with any other person and thus contribute in
the personality development in many ways.
• Social Factors: The things that revolve and evolve around us on a regular basis
determine our personality. The society that we live in, the cultural environment that we
face daily, the community we get interacted to, all are included in this factor.
• Cultural & Religious Factors: The culture in which one lives in, which may involve
traditional practices, norms, customs, procedures, rules and regulations, precedents and
values, all are important determinants of personality.
• Brain: It is generally believed that the father and the child adopt almost the same type of
brain stimulation and the later differences are the result of the environment in which the
child has been grown up.
BIG FIVE MODEL:

Big Five Model was initially developed by Ernest Tupes and Raymond Cristal (1961) is a
comprehensive, empirical and data-driven research finding to identify the traits and categorized
it into one of five dimensions which each dimension includes of multiple traits use to describe a
person.
In psychology, the Big Five personality traits are five broad domains or dimensions of
personality that are used to describe human personality.
RNSIT – MBA
1. Surgency (extraversion)
The surgency (extraversion) personality dimension includes the trait of dominance which a
personality trait of wanting to be in charge or leading, either by influencing others or competing
with each others. Someone weak in surgency will become the followers.
2. Agreeableness
Is the opposite of surgency, where this personality includes traits related to getting along with
other people. A person strong in this personality dimension will have behaviour likes warm,
friendly and sociable while the weak normally cold, unfriendly and unsociable.
3. Adjustment (emotional stability)

Traits includes in this dimension are of that related to emotional stability where continuum
between being emotionally stable (i.e. self-control, calm and relaxed) and unstable (i.e. out of
control, nervous and feeling insecure).
4. Conscientiousness
The conscientiousness personality dimension includes traits related to achievement. A leader
showing tendency for self-discipline, acts dutifully, and aim for achievement are included in this
group. Conscientiousness is also on a continuum between responsible or dependable to
irresponsible or undependable.
5. Openness-to-experience
This personality dimension includes traits related to being willing to change and try new things.
People strong in this group are intellectually curious, more creative and have unconventional
beliefs which contras to the weak who prefer more conventional and traditional interests.
RNSIT – MBA
PERSONALITY PROFILES
A personality profile is a knowledge management tool used to provide an evaluation of an
employee's personal attributes, values and life skills in an effort to maximize his or her job
performance and contribution to the company.
Questions in a personality profile test, which can be taken traditionally or online, are designed to
seek out information about an employee's temperament, decision-making methods,
communication style and general attitude towards work and recreation. The information is used
to match the right employee to the right project or task, especially when group work
or telecommuting is involved. There are two generally accepted categories of personality profile
tests, trait and type.
Trait personality profile tests, such as Orpheus, 16 PF, and OPQ, operate on the assumption
that personality is made up of a number of characteristics. The goal of the test is to document the
employee's characteristics and match the characteristics to appropriate roles within the company.
Type personality profile tests, such as Myers-Briggs, Insights Discovery, and the Keirsey
Temperament Sorter, propose that people fall into well-defined categories. The goal of the test is
to identify the category the employee belongs to, share the information, and build team skills by
having team members become aware of the talents associated with each category.
Personality Profiling Tools: 10 Most Popular Personality Tests

• The Myer-Briggs Type Indicator (MBTI) ...
• Disc Assessment. ...
• The Winslow Personality Profile. ...
• Process Communication Model. ...
• The Holtzman Inkblot Technique. ...
• Hexaco Personality Inventory. ...
• The Revised Neo Personality Inventory (Neo Pi-R) ...
• The Birkman Method
• The Ennegram
Derailed Leadership Traits:

Why executives are derailed?
1. They used bullying style viewed as intimidating, intensive and abrasive.
2. They were viewed as being cold, aloof and arrogant.
3. They betrayed personal trust.
4. They were self centered and viewed as overly ambitious and thinking of the next job.
5. They had specific performance problems with the business.
6. They over-managed and were unable to delegate or build a team.
RNSIT – MBA
Traits of Effective Leaders:

There appears to be some traits that consistently differentiate leaders from others and hence trait
theory does have some universality. The pages to follow gives an exhibit and explanation of nine
such traits and their inter relatedness to the Big five model.
1. Dominance
Dominance is synonym to leadership, the one that every successful leader should have. It is
about the willingness and eagerness of taking in charge or being a manager, ahead of everyone
else. It is one of the traits on surgency dimension in Big Five Model.
2. High Energy
High energy in leaders should mean that they have stamina to drive and work hard toward
achieving a goal, in same time, they be able to tolerate stress as well. Leaders possesses
enthusiasm and don’t give up easily and also high tolerance for frustration as they strive to
overcome obstacles through proper preparation and anticipation of problems.
3. Self-Confidence
Self-confidence is about the self-assurance that demonstrated by a leader in making any
judgments, decision making, presenting ideas, and showing his capabilities. A leader who has
positive self-image and display certainty wills fosters confidence among his followers, gains
respect and admiration and very determine to takes on challenges.
4. Locus of Control
Locus of control is on a continuum between external and internal belief in control over one’s
destiny. Internalizers (leaders) tend to be future oriented and believe that they control their fate
RNSIT – MBA
and that their behavior directly affects their performance. Leaders take responsibility for who
they are, for their behavior and performance, and for the performance of their organizational
unit. Meanwhile externalizers believe that they have no control over their fate and that their
behavior has little to do with their performance. They generally have lower levels of
performance.
5. Stability
Stability is associated with managerial effectiveness and advancement. Stable leaders are
emotionally in control of themselves, secure, and always positive. Effective leaders also have a
good understanding of their own strengths and weaknesses, and they are oriented toward self-
improvement rather than being defensive.
6. Integrity
Integrity refers to behaviour that is honest and ethical, making a person trustworthy. Many
studies show that the ability to influence people is based on integrity. The fact that if a leader
found untrustworthy, it is difficult to retain the loyalty of his followers or to obtain cooperation
and support from peers and superiors.
7. Intelligence
Leaders generally have above-average intelligence, that why, a company will seek a graduate
from college or university for a management position rather than an average high school leavers.
Intelligence refers to cognitive ability to think critically, to solve problems, and to make
decisions.
There are two most recognize intelligence which as Intelligence Quotient (IQ) and emotional
intelligence or Emotional Quotient (EQ). IQ is the ability to think critically and creatively while
EQ is the ability to work well with people.
There are four components of EQ as follows:

· Self-awareness relates to being conscious of your emotions and how they affect your personal
and professional life.
· Social awareness relates to the ability to understand others.
· Self-management relates to the ability to control disruptive or negative emotions.
· Relationship management relates to their ability to work well with others, build effective
relationships by communicating, responding to emotions, handling conflict, and influencing
others.
8. Flexibility
Flexibility refers to the ability to adjust to different situations. Effective leaders are flexible and
adapt to the situation and possess the ability to influence others bring about change.
RNSIT – MBA
9. Sensitivity to others
Sensitivity to others refers to understanding group members as individuals, knowing their issues,
and finding the best way to communicate and influence them. To be sensitive to others requires
empathy i.e. the power of understanding and imaginatively entering into another person's
feelings.
THE PERSONALITY PROFILE OF EFFECTIVE LEADERS

Effective leaders have specific personality traits. The theories that support the same are: (A)
McClelland’s traits of theories of Achievement Motivation Theory and (B) Leader Motive
Profile Theory.
(A) Achievement Motivation Theory

David McClelland developed Achievement Motivation Theory that stated; people have needs i.e.
need for achievement, power, and affiliation; and that person’s needs influence the behaviour
and performance of a person and unconsciously motivates us to fulfil that particular needs.
Not everyone will have all of the needs, but one of the above three needs tends to be dominant in
each one of us and motivates our behaviour. The needs as follows:
1. The Need for Achievement (n-Ach) - Is the unconscious concern for excellence in
accomplishments through individual efforts. People with strong n Ach tend to have:
➢ Internal locus of control, self-confidence, and high energy traits.
➢ Willing to take personal responsibility for solving problems.
➢ Goal oriented and set moderate, realistic, attainable goals.
2. The Need for Power (n-Pow) - Is the unconscious concern for influencing others and very
autocratic. People with strong n Pow tend to have:
➢ Dominance trait, self-confident with high energy.
➢ Wanting to control the situation, wanting influence or control over others
➢ Seeking positions of authority and status.
➢ Ambitious and have a lower need for affiliation.
3. The Need for Affiliation (n-Aff) - Is the unconscious concern for developing, maintaining,
and restoring close personal relationships. People with strong n Aff have:
➢ Trait of sensitivity to others
➢ Enjoying social activities, friendly and care for relationships.
➢ They tend to avoid management because they like to be one of the group member rather
than its leader.
RNSIT – MBA
(B) The Leader Motive Profile (LMP) Theory:

LMP is the predictor to determine the effectiveness of a leader by applying the Achievement
Motivation Theories, i.e. a person’s need for achievement, power, and affiliation. Using LMP,
McClelland found that effective leaders consistently have the same motive profile which is high
need for power, greater than the need for affiliation and with a moderate need for achievement
(normally achievement score is between the power and affiliation score). McClelland further
identified power as neither good nor bad where it can be used for personal gain at the expense of
others (personalized power), or it can be used to help oneself and others (socialized power).
Combination of Traits and Profiles of Effective Leaders:
LEADERSHIP ATTITUDES:
Attitudes are positive or negative feelings about something (people, things and issues).
Attitudes have an important influence on behavior and performance
Example: If you have high need for achievement (positive attitudes), you may work hard to
succeed
Dimensions / Pointers to explain Leadership Attitudes:

1. Douglas McGregor’s Theory X and Theory Y
2. Pygmalion Effect.
3. Self Concept
RNSIT – MBA
1 THEORY “X” & THEORY “Y”

This theory attempts to explain and predict leadership behavior and performance based on the
leaders’ attitude about the followers.
Theory X: Theory X attitudes hold that employees dislike work and must be closely supervised
in order to do their work. Leaders and Managers with theory X attitudes tend to have a negative,
pessimistic view of employees and display more coercive, autocratic leadership styles using
external means of controls such as threats and punishment.
Theory Y: Theory Y attitudes hold that employees (followers) like to work and do not need to
be closely supervised in order to do their work. Leaders and Managers with theory Y attitudes
tend to have a positive, optimistic view of employees and display more participative leadership
styles using internal motivation and rewards.
RNSIT – MBA
2 THE PYGMALION EFFECT (Rosenthal effect):

The Pygmalion effect proposes that leader’s attitudes towards expectations of followers, and
their treatment of them, explain and predict followers’ behavior and performance.
In other words, people are influenced by the expectations built upon them.
“As a leader, you should hold positive and high expectations that your team will solve that
difficult problem, meet those seemingly insurmountable challenges, and more often than not, they
will meet or exceed your expectations.” – Pygmalion Effect basis.
In business, expectations are stated as objectives and standards. Effective leaders set clear
standards and expect the best from their followers.
It is believed that the worst disservice that one can do as a coach/mentor/leader is to say to your
followers – “I don’t think you are capable of doing very much – so I am going to lower the
standard” or just do it without saying anything. To nullify such incidents, the Pygmalion effect
assumes relevance.
3 SELF CONCEPT
Self concept refers to the positive or negative attitudes people have about themselves. This
basically explains how leaders examine their own attitudes. If a leader has a positive view of his
own as being a capable person, there is a tendency to have a positive self confidence trait.
Successful leaders have positive attitudes with strong self concepts, are optimistic and believe
they can make a positive difference.
RNSIT – MBA
Developing a more positive attitude and Self Concept: Ideas/Suggestions:

1. Consciously try to have and maintain positive, optimistic attitudes
2. Realize that there are few, if any benefit to negative attitudes about other and yourself
3. Cultivate optimistic thought
4. If you catch yourself complaining being negative in any way, stop and change to positive
attitudes
5. Avoid negative people especially any that make you feel negative about yourself
6. Set and achieve goals
7. Focus on your success
8. Accept compliments.
9. Don’t belittle accomplishments or compare yourself to others
10. Think of yourself
11. Be a positive role model
12. When thing goes wrong and you’re feeling down, do something to help someone who
worse off than you
How attitudes develop Leadership styles? – Theory X & Y is combined with Leaders’
attitude towards himself to analyze the relationship:
ETHICAL LEADERSHIP
Ethics are standards of right and wrong that influence behavior.
Ethical leadership is leadership that is directed by respect for ethical beliefs and values and for
the dignity and rights of others. It is thus related to concepts such as trust, honesty, consideration,
charisma, and fairness.
RNSIT – MBA
Ethical leaders:
• Make difficult decisions to reach good results for employees and the organization
• Can “build trust and be trustworthy”
• Focus on the organization’s purpose
• Work to develop their employees and care authentically about their success
• Hold themselves accountable for behaving ethically
• Behave with integrity and in a way that clearly aligns with the values of the organization
Principles of Ethical Leadership:
RNSIT – MBA
Factors affecting Ethical Leader Behavior:
1 PERSONALITY TRAITS & ATTITUDES:

Our ethical behavior is related to our individual needs and personality traits. Leaders with
surgency (dominance) personality traits have two choices: to use power for personal benefit or to
use socialized power. To gain power and to be conscientious with high achievement, some
people will use unethical behavior. An agreeableness personality sensitive to others can lead to
following the crowd either in ethical or unethical behavior. Emotionally unstable people and
those with external locus of control are more likely to use unethical behavior.
2 MORAL DEVELOPMENT:
It refers to understanding right from wrong and choosing to do the right thing. Our ability to
make ethical choices is related to our level of moral development. The following three levels of
personal moral development influences ethical behavior.
a. Pre-conventional – “I lie to customers to sell more products and get higher commission
checks”
b. Conventional – “I lie to customers because the other sales reps do it too”
c. Post conventional – “I don’t lie to customers because it is wrong”
3 THE SITUATION:
A third factor affecting ethical behaviour is the situation. Highly competitive and unsupervised
situations increase the odds of unethical behavior. Unethical behavior occurs more when there is
no code of ethics or policy. People are also less likely to report unethical behavior (blow the
whistle) when they perceive the violation as not being serious and when the offenders are their
friends.
RNSIT – MBA
JUSTIFYING UNETHICAL BEHAVIOR:

Introduction: Most people do not like to consider themselves as unethical. So when they do
unethical things, they use an excuse to justify their unethical behavior. This is where Moral
Justification comes in. Moral Justification is the process of interpreting immoral behavior in
terms of a higher purpose.
Commonly used Moral Justifications:

People at the Pre-conventional and conventional levels of moral development use the following
justifications:
1. Displacement of Responsibility – It is the process of blaming one’s unethical behavior

on others – “I WAS ONLY FOLLOWING ORDERS, MY BOSS TOLD ME TO
INFLATE THE FIGURES”
2. Diffusion of Responsibility – It is the process of the group using unethical behavior with
no one person being held responsible – “WE ALL TAKE BRIBES, THAT’S HOW IT IS
HERE; IT’S THE WAY WE DO BUSINESS”
3. Advantageous Comparison – It is the process of comparing oneself to others who are

worse – “WE POLLUTE LESS THAN OUR COMPETITORS DO”
4. Disregard or Distortion of Consequences – It is the process of minimizing the harm

caused by the unethical behavior – “IF I LIE ON MY TAX FORM ABOUT MY
INCOME THEY WILL NEVER KNOW, AND IF THEY FIND OUT, I WILL ONLY
GET A WARNING ANYWAY”
5. Attribution of Blame – It is the process of claiming that the unethical behavior was
caused by someone else’s behavior – “HE BAD MOUTHED ME, SO I HAD TO HIT
HIM”
6. Euphemistic Labeling – It is the process of using “cosmetic” words to make the

behavior sound acceptable. TERRORIST GROUPS sound bad but FREEDOM
FIGHTERS sounds acceptable; MISLEADING or COVERING UP sounds better than
LYING TO OTHERS.
Simple Guide to Ethical Behavior:

Golden Rules:
➢ “Don’t do anything to other people that you would not want them to do to you”
➢ “Let others as you want to be led”
RNSIT – MBA
Four Way Test:

When making decision tries to answer these four questions:
i. Is it the true?
ii. Is it fair to all concerned?
iii. Will it build good will and better friendship?
iv. Will it be beneficial to all concerned?
Stakeholders Approach to Ethics:

Under the Stakeholder Approach to ethics, one creates a win – win situation for relevant parties
affected by the decision. A win-win situation meets the needs of the organization and employees
as well as those of other stakeholders so that everyone benefits from the decision. Stakeholders
include everyone affected by the decision which may include followers, governments, customers,
suppliers, society, and stock-holders and so on. The higher up in the management one goes, the
more stakeholders will have to deal with.
******
RNSIT – MBA
QUESTION BANK
Unit 2:
3 Mark Questions:
1. Define Personality.
2. Define Attitude.
3. Define Ethics.
4. Define euphemistic labeling.
5. Define Surgency.
6. Define self concept.
7. Define Pygmalion effect.
8. What is a personality profile?
7 Mark Questions:
1. Compare theory X and theory Y.

2. Explain how positive self concept can be developed.
3. Explain the ways of justifying unethical behaviour.
4. Explain the golden rule of ethical behavior.
5. Explain the three phases of moral development.
6. Explain LMP theory.
7. Explain the Pygmalion effect model with a neat sketch.
8. Explain stakeholder approach to ethical leadership.
10 Mark Questions:
1. Explain big five dimensions of personality and its relatedness to personality development.
2. Explain the traits of en effective leader.
3. Explain the achievement motivation theory.
4. Explain principles of ethical leadership.
5. Explain the characteristics and importance of ethical leadership.
6. Explain the three factors affecting ethical leadership behaviour.
7. Explain how personality and attitudes affect leadership outcomes with examples.
RNSIT – MBA

UNIT 3
LEADERSHIP BEHAVIOR AND MOTIVATION
Contents:
• Leadership Styles – Based on University of Iowa, Ohio & Michigan studies; Leadership
grid.
• Leadership & Motivation:
✓ Content theories of Motivation
✓ Process theories of Motivation.
✓ Reinforcement theory of Motivation.
• Contingency Leadership theories:
✓ Contingency theory leadership and Model – Fredrer
✓ Leadership Continuum theory
✓ Nominal Leadership theory (NLT)
✓ Leadership Substitutes theory
Introduction:
Leadership Behavior:
By the late 1940’s most leadership studies had shifted their focus from the trait theory paradigm
to the leadership behavior paradigm. Thus leadership was then conceptualized as a process that
was determined based on behavior exhibited by leaders in different situations and not hence the
skills they had acquired by the virtue of heredity and conditioning. Thus behavior of leaders
assumed importance and “leadership styles” thus came into being. Leadership styles basically
advocated the fact as to what was the most appropriate behavior the leader used to make it
apparent when dealing with people and situations.
LEADERSHIP STYLES
A leadership style is the combination of “traits, skills and behaviors leaders use as they interact
with followers”. Although style is based on traits and skills, it is the behavior that plays a larger
role as it stipulates a consistent pattern of thought by the leaders.
Leadership Styles frameworks:
1. University of Iowa Leadership Styles
2. University of Michigan leadership Styles
3. University of Ohio leadership Styles
4. Leadership Grid by Blake and Mouton.
RNSIT – MBA
1 UNIVERSITY OF IOWA LEADERSHIP STYLES:

One of the first attempts in conceptualizing leadership styles was based out of research carried
out by Kurt Lewin and his associates in 1930s in the University of Iowa. These studies identified
two basic leadership styles. They are:
i. Autocratic leadership style: The autocratic leaders make the decision, tell
employees what to do and closely supervise the workers. They are more tasks centric
and the people centric. Bureaucratic rules, policies, procedures are the common
norms expected by leaders of this style. They hardly listen to the perspectives of the
employees whom they control. Thus participative decision making is not to be seen
by such organizations that use more of an autocratic approach by their leaders.
ii. Democratic leadership style: The democratic leader encourages participation in

decisions; works with employees to decide what is to be done and does not closely
supervise the employees. Thus to pass on ownership and independence to employees
in an organization, this leadership approach is sought after. However, with this
approach, maintaining control on key activities is difficult in an organization as such.
Fig 1
2 UNIVERSITY OF MICHIGAN LEADERSHIP STYLES:

The University of Michigan’s survey research centre, under the direction of Rensis Likert,
conducted studies to determine leadership effectiveness. Researchers created a questionnaire
called “Survey of Organizations” and conducted interviews to gather information on leadership
styles. Their goals were – (i) to classify leaders as effective and ineffective by comparing
behaviors of leaders from high productivity and low productivity organizations and (ii)
determine the reasons for effective leadership. Thus this model identified two leadership styles:
i. Job Centred leadership Style: Job centred style scale measures two job oriented
behaviors – goal emphasis and work facilitation. Job centred behavior refers to the
RNSIT – MBA
extent to which the leader takes charge to get the things done. The leader closely
directs subordinates with clear roles and goals while the manager tells them what to
do and how to do it as they work toward goal achievement.
ii. Employee centred leadership Style: It has scale measuring two employee oriented
behaviors – supportive leadership and interaction facilitation. Employee centred
behavior refers to the extent to which the leader focuses on meeting the human needs
while developing relationships. The leader is sensitive to subordinates and
communicates to develop trust, support and respect while looking out for their
welfare as such.
Fig 2
3 OHIO STATE UNIVERSITY LEADERSHIP STYLES:

The Personnel Research Board of the Ohio State University under the principal direction of
Ralph Stogdill conducted a study to determine effective leadership styles. In an attempt to
measure the leadership styles, they developed an instrument known as Leader Behavior
Description Questionnaire (LBDQ). Respondents to the questionnaire perceived their leaders
behavior towards them on two dimensions. These two dimensions thus became a parameter to
classify the four leadership styles based on this approach. These two dimensions are as under:
Dimensions:
a. Initiating structure behavior: it is essentially the same as job centred leadership style. It
focuses on getting the task done.
b. Consideration behavior: it is essentially the same as employee centred leadership style.

It focuses on meeting people’s needs and developing relationships.
RNSIT – MBA
Because a leader can be high or low in either Initiating structure behavior or Consideration
behavior, four leadership styles are thus developed. The four styles are as follows:
i. Low structure and high consideration.
ii. High structure and high consideration.
iii. High structure and low consideration.
iv. Low structure and low consideration.
Note: Leaders with high structure and low consideration behavior use one way communications
and decisions are made by managers whereas leaders with high consideration and low structures
use two way communications and tend to share decision making.
Fig 3
4 LEADERSHIP/MANAGERIAL GRID BY BLAKE & MOUTON

Robert Blake and Jane Mouton from the University of Texas developed the Managerial Grid
theory in 1964. The leadership grid is based on the Ohio State and Michigan studies; it is based
on the same two leadership dimensions which Blake and Mouton called “Concern for
Production” and “Concern for People”. The concern for both people and production is measured
using a questionnaire from a scale of 1 to 9. This grid thus identifies five leadership styles, the
descriptions of which are given as follows:
i. The Impoverished leader (1, 1) – he has low concern for both production and
people. The leader does the minimum required to remain employed in the position.
ii. The Authority – Compliance leader (9, 1) – he has a high concern for production
and low concern for people. The leader focuses on getting the job done, while people
are treated like machines.
RNSIT – MBA
iii. The Country – Club leader (1, 9) – he has a high concern for people and low
concern for production. The leader strives to maintain a friendly atmosphere without
regard for production.
iv. The Middle of the Road leader – (5, 5) – he has a balanced, medium concern for
both people and production. The leader strives to maintain satisfactory performance
and morale.
v. The Team leader (9, 9) – he has a high concern for both production and people. This
leader strives for maximum performance and employee satisfaction. According to
Blake and Mouton, the team leadership style is generally the most appropriate for use
in all situations.
Fig 4
LEADERSHIP & MOTIVATION
Introduction:
In this section, we attempt to explore the relationship between Motivation and Leadership. In
other words, the mechanisms used by leaders to motivate their followers would be explored by
an understanding of the various processes and theories related to Motivation.
Defining Motivation:
1. A set of psychological forces that compel you to take action.
2. Anything that affects behavior in performing a certain outcome.
RNSIT – MBA
Motivation Process:
1. NEED
2. MOTIVE
3. BEHAVIOR
4. CONSEQUENCE
5. SATISFACTION/DISSATISFACTION
3 MAJOR CLASSIFICATIONS OF MOTIVATION THEORIES:
3 Major Classifications Specific Types
1 Content Theories – focus on explaining i. Maslow’s hierarchy of needs

and predicting behavior based on employee theory.
need and motivation ii. Hertzberg’s two factor theory
iii. Acquired needs theory
2 Process Theories – focus on understanding i. Equity theory

how employees choose behaviors to fulfil ii. Expectancy theory
their needs /reasons for their needs iii. Goal setting theory
Types of Reinforcement:
3 Reinforcement Theories – proposes that a. Positive
behavior can be explained, predicted and b. Avoidance (Negative)
controlled through consequences of behavior. c. Extinction
d. Punishment.
RNSIT – MBA
A. CONTENT THEORIES OF MOTIVATION:
1 MASLOWS’ HIERARCHY OF NEEDS THEORY: In the 1940’s Abraham Maslow

developed the hierarchy of needs theory which is based on 4 major assumptions:
a. Only unmet needs motivate.
b. People’s needs are arranged in order of importance going from basic to complex needs.
c. People will not be motivated to satisfy a higher level need unless a lower level need is
minimally satisfied.
d. There are thus five classifications of needs.
Hierarchy of Needs – the 5 types:

1. Psychological needs – these are people’s primary or basic needs: air, food, shelter and
sex and relief from or avoidance of pain.
[Leadership Behavior – Organizations meet these needs through adequate salary, breaks
and working conditions]
2. Safety needs – once the psychological needs are met, the individual is concerned with
safety and security.
[Leadership Behavior – Organizations meet these needs through safe working conditions,
salary increases to meet inflation, job security and fringe benefits – medical
insurance/sick pay/pensions that protect the physiological needs]
3. Belongingness needs – after establishing safety, people look for love, friendship,
acceptance and affection. Belongingness is also called social needs.
[Leadership Behavior – Organizations meet these needs through opportunity to interact
with others, to be accepted, to have friends, activities that include parties, picnics, trips
and sport teams]
4. Esteem needs – after the social needs are met, the individual focuses on ego, status, self
respect, recognition for accomplishments and a feeling of self confidence and respect.
[Leadership Behavior – Organizations meet these needs through titles, the satisfaction of
completing the job itself, merit pay, raises, recognition, challenging tasks, participation in
decision making and change for advancement]
5. Self actualization needs – the highest level of need is to fulfill one’s full potential. To do
so, one seeks growth, achievement and advancement.
[Leadership Behavior – Organizations meet these needs through development of
employees’ skills, the chance to be creative, advancement and promotions and ability to
have complete control over their jobs]
RNSIT – MBA
Fig 5
2 HERTZBERG’S TWO FACTOR THEORY OF MOTIVATION:

In the 1960s, Hertzberg published his two factor theory. He combined lower level needs into a
classification he called “Hygiene or Maintenance” factors and combined higher level needs into
another classification he called “Motivators”.
The two factor theory proposes that people are motivated by motivators rather than maintenance
factors.
A. Maintenance – Extrinsic Factors: Here the motivation comes from outside the person
and the job itself. They include pay, job security and title; working conditions, fringe
benefits and relationships. These factors are related to meeting the lower level needs.
B. Motivators – Intrinsic Factors: Here the motivation comes from within the person
through the work itself. These factors are related to meeting the higher level needs and
are better at motivating than the extrinsic factors. They include achievement, recognition,
challenge and advancement. Doing something that we want to do and doing it well can be
its own reward.
RNSIT – MBA
Fig 6
3 ACQUIRED NEEDS THEORY/ACHIEVEMENT MOTIVATION THEORY:
[***Note: This theory has already been explained in Unit 2 towards the last. Please refer the
same.]
B. PROCESS THEORIES OF MOTIVATION:
1 EQUITY THEORY
By equity we mean, to be treated fairly. The idea with this theory is thus that people seek social
equity in the rewards they receive to be motivated. It proposes that people are motivated when
their perceived inputs equal outputs.
RNSIT – MBA
That is to say, people compare their inputs (efforts, experience, seniority, status, intelligence and
so on) and their outputs (pay, recognition, praise, benefits, promotion, increased status,
supervisor’s approval and so on) to that of relevant others.
A relevant other could be a co-worker or group of employees from same or other departments in
the organization or even from a hypothetical situation
Leadership lesson:
Motivating with equity theory: Some general recommendations in this regard as follows:
1. Rewards should be equitable – when employees perceive they are not treated fairly,
morale and performance problems occur. Employees producing at the same level should
be given equitable rewards.
2. High performance should be rewarded, but employees must understand the inputs needed
to attain certain outputs. When incentive pay is used, there should be clear standards
specifying the exact requirements to achieve the incentive.
3. Managers should be aware that equity is based on perception, which may not be correct.
So don’t play favourites – treat employees equally but in unique ways.
2 VROOM’S EXPECTANCY THEORY:
This theory proposes that an individual will behave or act in a certain way because they are
motivated to select a specific behavior over the other behaviors due to what they expect the result
of the selected behaviors will be.
Formula:
Motivation / Effort = E x I x V [Expectancy X Instrumentality X Valence]
a. Expectancy – Increase in efforts lead to increase in performance.
b. Instrumentality – Belief that appropriate reward will be received for the right
performance.
c. Valence – Importance one places on the outcome that is expected.
RNSIT – MBA
Leadership lesson: Motivating with the Expectancy theory:
The following points are to be considered by leaders who use Expectancy theory in their
organizations in an attempt to motivate people:
1. Clearly define the objectives and the performance necessary to achieve them.
2. Tie performance to rewards. High performance to be rewarded.
3. Be sure rewards are of value to the employee. Managers should get to know employees as
individuals.
4. Develop good human relations as a people developer.
5. Make sure your employees believe you will do what you say you will do.
6. Use the Pygmalion effect to increase expectations. Your high expectations can result in
good follower motivation to perform their tasks efficiently. As the level of expectation
increases, so will the level of performance.
3 GOAL SETTING THEORY:

• Goals give us a sense of purpose
• Specific and difficult goals motivate people.
• Setting objectives has a positive effect on motivation and performance.
• High achievement, motivated individuals engage in goal setting.
Thus this theory proposes that one of the foremost reasons behind different needs of individuals
would be the goals and the objectives they set for themselves. Once the goals set are being
achieved, that would in many ways motivate their inner selves to thrive even better. Thus the
leaders using this theory must understand that employees always seek challenging assignments
and thus they need to be given the same in order to galvanize the fabric of the workplace.
Criteria for objective setting:
For an objective to be effective, it should include the following four criteria:

1. Singular result.
2. Specific.
3. Measurable.
4. Target Date.
RNSIT – MBA
These 4 criteria have been explained via 4 examples in the figure below:
Fig 7
Criteria that do not fit in to the Model: Criteria that usually goes overlooked while defining
goals and objectives:
1. Difficult but achievable.
2. Participatively set.
3. Commitment.
Alternate approach for goal setting – Microsoft’s “SMART” goals:
1. Specific.
2. Measurable.
3. Achievable.
4. Result based.
5. Time specific.
C. REINFORCEMENT THEORY OF MOTIVATION:
B.F. Skinner, Reinforcement motivation theorist contends that to motivate employees, it is really
not necessary to identify and understand needs (content motivation theories) or to understand
how employees choose behaviors to fulfill them (process motivation theories).
RNSIT – MBA
All the manager needs to do is understand the relationship between behaviors and their
consequences and then arrange contingencies that reinforce desirable behaviors and discourage
undesirable behaviors.
Reinforcement theory proposes that through the consequences for the behavior, people will be
motivated to behave in predetermined ways. Reinforcement theory uses behavior modification
and operant conditioning (types and schedules of reinforcement).
The three components of Skinner’s framework are shown with an example in the figure below.
Fig 8
4 TYPES of REINFORCEMENT:
i. Positive Reinforcement – A method of encouraging continued behavior is to offer
attractive consequences (rewards) for desirable performance. For example, an
employee is on time for a meeting and is rewarded by the manager thanking him or
her. The praise is used to reinforce punctuality. Other positive reinforcements are pay,
promotions, time off, increased status etc. Positive reinforcement results in positive
results and is the best motivator for increasing productivity.
ii. Avoidance / Negative Reinforcement – As with positive reinforcement you are

encouraging continued desirable behavior. The employee avoids the negative
consequence. For example, an employee is punctual for a meeting to avoid the
negative reinforcement such as a reprimand. Rules are designed to get employees to
avoid certain behavior. However, rules in and of themselves are not a punishment.
Punishment is given only if the rule is broken.
RNSIT – MBA
iii. Extinction Reinforcement – Rather than encourage desirable behavior, extinction

attempts to reduce or eliminate undesirable behavior by withholding reinforcement
when the behavior occurs. For example, an employee who is late for a meeting is not
rewarded with praise. Or the manager may withhold a reward of value such as praise
until the employee performs to set standards.
iv. Punishment Reinforcement – It is used to provide an undesirable consequence for

undesirable behavior. For example, an employee who is late for a meeting is
reprimanded. Notice that with avoidance, there is no actual punishment; it’s the threat
of punishment that controls behavior. Other methods of punishment include
harassing, taking away privileges, probation, fining, demoting, firing and so forth.
Using punishment may reduce the undesirable behaviors such as poor morale, lower
productivity and acts of theft or sabotage. Punishment is the most controversial and
the least effective method in motivating employees.
Schedules of Reinforcement:
1. Continuous reinforcement – here, each and every desired behavior is reinforced.
2. Intermittent reinforcement – here the reward is given based on the passage of time or
output.
Leadership Lessons: Motivating with reinforcement – To consider the following:

➢ Make sure employees know exactly what is expected of them. Set clear objectives.
➢ Select appropriate rewards. A reward to one person could be considered a punishment by

another.
➢ Know your employees’ needs.
➢ Select the appropriate reinforcement schedule.
➢ Do not reward mediocre or poor performance.
➢ Look for the positive and give praise, rather than focus on the negative and criticize.
➢ Listen to people and make them feel good about themselves (Pygmalion effect)
➢ Never go a day without giving sincere praise.
➢ Do things for your employees, instead of to them and you will see productivity increase.
RNSIT – MBA
PUTTING MOTIVATION THEORIES TOGETHER WITHIN THE MOTIVATION

PROCESS:
Fig 9
RNSIT – MBA
CONTINGENCY/SITUATIONAL LEADERSHIP
Introduction:
Both the “trait” and “behavioral” leadership theories were attempts to find ‘one best leadership
style’ that were expected out of leaders. However with passage of time and with increased
problems of organizations in all sectors including that of the government and the corporate,
finding one best leadership style for all situations wasn’t considered an apt idea as different
situations demanded different competencies for the leaders. Thus the leadership theory paradigm
focused its attention from behavioral and trait to “Contingency or Situational approach”.
Thus in this section we explore the different perspective that we have been researched
documented so far in the world with respect to “Contingency Leadership” – A scenario wherein
a leader is expected to understand the dynamics of the situation he is currently operating in, asses
it and then figure out what would be the most appropriate solution or approach he needs to
consider to manage the same effectively and efficiently.
Leadership theory vs. Leadership Model:

By leadership theory we meant an abstract aspect of leadership that has been researched and
brought into an academically acceptable form. It explains in detail the assumptions, processes,
elements and required strategies for leaders to follow the same. It is rather very descriptive in
nature.
However, a leadership model is a simplified form of a leadership theory. A model proposes the
appropriate leadership styles that are expected out of leaders in different situations based on
“decision variables” that are used in all the models.
Contingency theory Model variables:
FOLLOWERS LEADER SITUATION

Capability Personality traits Task
Motivation Behavior Structure
Experience Environment
Models under Contingency/Situational Leadership:

1. Basic / Global Contingency leadership theory and Model – Fred E Fiedler.
2. Leadership Continuum theory and Model.
3. Normative Leadership Theory and Models (NLT)
4. Leadership Substitutes theory.
RNSIT – MBA
1 GLOBAL CONTINGENCY LEADERSHIP THEORY & MODEL

In 1951, Fred E Fiedler began to develop the first situational leadership theory. It was the first
theory to specify how situational variables interact with leader personality and behavior. He
believed that leadership style is a reflection of personality (trait oriented) and behavior (behavior
theory oriented) and that leadership styles are basically constant.
The contingency leadership model is used to determine if a person’s leadership style is “task
based” or “relationship based” and if the situation (leader member relationship, task structure and
position power) matches the leaders’ style to maximize performance.
Fig 10
Situation Favourableness:
It refers to the degree to which a situation enables a leader to exert influence over the followers.
The more the control the leader has towards the followers, the more favourable the situation is
for the leader. The three variables (as given in the above figure) here in order of importance is as
follows:
a. Leader member relations: Is the relationship good or poor between leader and his
followers? Do the followers trust, respect, accept and have confidence in the leader? Etc
would be probed. Leaders with good relations have more influence. The better the
relations, the better favourable the situation.
b. Task structure: this is the second in potency. Is the task structured or unstructured? Do
the employees perform repetitive, routine, unambiguous, standard tasks that are easily
understood? Leaders in a structured situation have more influence. The more structured
the jobs are, the more favourable the situation.
RNSIT – MBA
c. Position Power: this is the weakest factor. Does the leader have the power to assign
work, reward and punish, hire and fire, give rises and promotions? The leader with
position power has more influence. The more the power, the more favourable the
situation.
Appropriate leadership styles as per the model:
1. Task based – Concern for production and targets.
2. Relationship based – Concern for people and human values.
Fig 11
RNSIT – MBA
2 LEADERSHIP CONTINUUM THEORY & MODEL:

Introduction:
Robert Tannenbaum and Warren Schmidt also developed a contingency theory in the 1950s.
They stated that leadership behavior is on a continuum from boss centred to subordinate centred
relationship.
Their model focuses on who makes the decisions. They noted a leader’s choice of a leadership
pattern should be based on forces in the boss, forces in the subordinates and forces in the
situation.
FOLLOWERS LEADER SITUATION

(Subordinates) (Boss) (Time)
Leadership Styles
(Boss centred to Subordinate centred with
Seven leadership styles along continuum)
Forces: Before understanding the leadership “Styles” as per this model, the leader must consider
the following three forces or variables:
1. Boss – The leaders’ personality and behavioral preferred style – based on experience,
expectation, values, background, knowledge, feeling of security and confidence in the
subordinates – is considered in selecting a leadership style. Based on personality and
behavior, some leaders tend to be more autocratic and others more participative.
2. Subordinates – The followers’ preferred style for the leader is based on personality and
behavior as with the leader. Generally, the more the willing and able the followers are to
participate, the more freedom of participation should be used and vice versa.
3. Situation (Time) – The environmental considerations such as the organization’s size,

structure, climate, goals and technology are considered in selecting a leadership style.
Upper level managers also influence leadership styles. For example, if a middle level
manager uses an autocratic leadership style, the leader may tend to use it too.
The time available is another consideration. It takes more time to make participative
decisions. Thus when there is no time to include followers, autocratic leadership style is
made use of by the leaders.
RNSIT – MBA
THE SEVEN LEADERSHIP STYLES:
Autocratic Style:
1. Leader makes decision and announces it to followers individually or in a group without

discussion.
2. Leader makes decisions and sells it to the followers through a presentation of why it is a
good idea.
3. Leader presents ideas and invites follower questions.
Neutral Style (Both Autocratic & Participative Style):
4. Leader presents tentative decision subject to change.
Participative Style:
5. Leader presents problem, gets suggested solutions and makes the decision.
6. Leader defines the limits and asks the followers to make a decision.
7. Leader permits followers to make ongoing decision within defined limits.
Fig 12
RNSIT – MBA
3 NORMATIVE LEADERSHIP THEORY (NLT) & MODEL:

Introduction:
An important leadership question today is “When should manager take charge and when should
the manager let the group make the decision”? In 1973 Viktor Vroom and Philip Yetton
published a decision making model to answer this question.
The model was based on two factors – “individual vs. Group decisions” & “time driven vs.
Development driven decisions”.
Thus the NLT seeks to explain leadership styles that are best suited for situations where leaders
have to make decisions concerning individuals and groups; and also decisions that are time
specific and decisions that are development specific.
Fig 13
QUESTIONS/CRITERIAL USED IN THE MODEL:
1. Decision significance – how important is the decision to the success of the project or
organization? Is the decision of High (H) or Low (L) importance to the success? When
making highly important decisions, leaders need to be involved.
2. Importance of Commitment – How important is the follower commitment to implement

the decision? If acceptance of decision is critical to effective implementation, importance
is High (H) or Low (L)? When making highly important commitment decisions that
followers may not like and may not implement, followers generally need to be involved
in making the decision.
3. Leader Expertise – How much knowledge and expertise the leader have with this
specific decision? Is expertise High (H) or Low (L)? The more expertise the leader has,
the less need there is for follower participation.
RNSIT – MBA
4. Likelihood for Commitment – if the leader were to make the decision alone is the
certainty that the followers would be committed to the decision High (H) or low (L)?
When making decisions that followers will to and want to implement, there is less need to
involve them in the decision.
5. Group Support for Objectives – Do the followers have High (H) or Low (L) support for
the team or organizational goals to be attained in solving the problem? Higher levels of
participation are acceptable with high levels of support.
6. Group Expertise – How much knowledge and expertise do the individual followers have
with this specific decision? Is expertise High (H) or Low (L)? The more the expertise the
followers have, the greater the individual or group participation can be.
7. Team Competence – Is the ability of the individual to work together as a team to solve
the problem High (H) or Low (L)? With high team competence, more participation can
be used.
LEADERSHIP PARTICIPATION STYLES (As per this Model):

Vroom identified five leadership styles based on the level of participation in the decision by the
followers. He adopted this from the leadership continuum theory (discussed earlier) – ranging
from autocratic to participative styles. The five leadership styles as per this model are:
1. DECIDE – the leader makes the decision alone and announces it or sells it to the
followers. The leaders may get information from others outside the group and within the
group without specifying the problem.
2. CONSULT INDIVIDUALLY – the leader tells followers individually about the

problem, gets information and suggestions and then makes the decision.
3. CONSULT GROUP – the leader holds a group meeting and tells the followers the
4. FACILITATE – The leader holds a group meeting and acts as a facilitator to define the
problem and the limits within which a decision must be made. The leader seeks
participation and concurrence on the decision without pushing his or her ideas.
5. DELEGATE – The leader lets the group diagnose the problem and makes the decision
within stated limits. The role of the leader is to answer questions and provide
encouragement and resources.
RNSIT – MBA
MODEL (Directing the Criteria & the appropriate Leadership Styles)
Time Driven NLT Model
Fig 14
RNSIT – MBA
Development Driven NLT Model
Fig 15
RNSIT – MBA
4 LEADERSHIP SUBSTITUTES THEORY:
All the theories discussed so far have thrown light on various roles of a leader, the changing
leadership theory focus and paradigms, the behavior expected out of a leader in different
situations, the competencies to be possessed by leaders in turbulent environments and the like.
However, Steven Kerr and John Jermier argued that, in many cases, there is “NO NEED” for
leaders at all in any organizations as such.
With the growing focus on self managed firms and result oriented organizations coupled with
flattening of levels in the organization’s hierarchy, these theorists felt that a leaderless
organization is the future for most organizations. Though debatable from a managerial
standpoint, yet the theory throws light on why it is important to neutralize the role of leaders in
contemporary organizations and what kind of managerial levers is used as an alternative to
organizations that are not managed by leaders.
Thus emerges the concept “Substitutes for leadership” which include the characteristics of the
subordinate, task and organization that replace the need for a leader or neutralize the leader’s
behavior.
Note:
1. Substitutes of leadership – Absolutely no called leaders would be present; leadership

style is unnecessary and redundant. Highly skilled workers do not need a leaders’ task
behavior to tell them how to do their job.
2. Neutralizers for leadership – Leaders role is considered very minimal (to give a sense
of direction to the organization). Thus they reduce or limit the effectiveness of a leaders’
behavior.
Fig 16
RNSIT – MBA
Analysis of Variables:
1. Characteristics of the Followers – Ability, knowledge, experience, training etc; need for
independence and professional orientation; indifference towards organizational rewards.
2. Characteristics of the Task – Clarity and routine; Invariant methodology; provision of

own feedback concerning accomplishment; intrinsic satisfaction.
3. Characteristics of the Organization – Formalization (explicit plans, goals and areas of

responsibility) Inflexibility (rigid, unbending rules and procedures). Highly specified and
active advisory and staff functions. Closely knit and cohesive work groups;
organizational rewards not within the leaders control; special distance between leaders
and followers.
Leadership Style – The leaders’ role is to provide direction and support not already being
provided by the task, group or the organization. He needs to neutralize his leadership style. The
leader fills the gaps in leadership.
******
RNSIT – MBA
QUESTION BANK
Unit 3:
3 Marks Questions:
1. What is a leadership style?

2. Distinguish between leadership model and leadership theory.
3. Define contingency leadership.
4. What are leadership “neutralizers” and “substitutes”?
5. What is normative leadership?
6. Who is a country club leader?
7. Classify leadership styles based on Iowa University studies.
8. What is a leadership grid?
9. Define Valence.
10. What is equity theory?
11. Define Motivation.
12. Define reinforcement.
13. What are the two schedules of reinforcement?
14. What is self actualization need?
15. What are the three variables common to all contingency leadership theories?
7 Marks Questions:
1. Explain the motivation process.

2. Explain the four types of reinforcement.
3. Explain the leadership substitutes theory.
4. Explain Hertzberg’s two factor theory.
5. Explain acquired needs theory.
6. What is goal setting? Explain SMART goals approach.
7. At what level of Maslow’s hierarchy are you living? Justify.
8. Explain the styles in normative leadership model.
9. Explain the criteria used in the normative leadership model.
10. Explain how leadership styles influence leadership behaviour.
10 Marks Questions:
1. Compare leadership approaches of University of Ohio & Michigan studies.

2. Explain Blake & Mouton’s leadership grid.
RNSIT – MBA
3. Explain the content, process and reinforcement theories of motivation.

4. Compare Time driven and Development driven models of the NLT.
5. Explain the leadership continuum model.
6. Explain how motivation and leadership can be enhanced with reinforcement theory.
7. Explain how motivation and leadership can be enhanced with Vroom’s expectancy theory
of motivation.
8. Explain Maslow’s need hierarchy and leadership implications of each need.
9. Explain the basic contingency leadership theory/model put forth by Fredrer.
10. Explain equity theory & goal setting of motivation and their leadership link.
RNSIT – MBA

UNIT 4
TEAM LEADERSHIP
Contents:
• The use of teams in organizations; effective team characteristics; types of teams
• Decision making in teams
• Leadership skills for effective team meetings
• Ginnet’s team effectiveness leadership model
• Virtual teams
• Self Managed Teams (SMT) – Basics, role, and changing role of leadership in SMTs.
Introduction: What is a Team?

A team is a group of individuals all working together for a common purpose. The individuals
comprising a team ideally should have common goals, common objectives and more or less think
on the same lines. It is one of the many ways for a business to organize its employees.
The Use of Teams in Organizations:

➢ Team is a way of life in post modern organizations.
➢ Teams offer the best opportunity for better organizational performance in the form of
increased productivity and profits.
➢ Leads to cooperation and synergy.
➢ For many organizations, the use of teams has led to desirable performance improvements
such as: Improved quality, improved efficiency, Improved employee satisfaction and
Improved customer satisfaction.
➢ For some organizations however, the use of teams has resulted in negative outcomes such
as: Increased costs, Stress & Lower group cohesion.
Advantages of Teamwork:
✓ Synergy –This implies collective efforts of team members put together has a lasting
impact than each of their individual contributions being considered.
✓ Avoidance of major errors
✓ Faster and better decisions
✓ Continuous Improvement
✓ Innovation
✓ Self motivation
✓ Empowerment
✓ Greater job satisfaction
✓ Needs fulfillment.
RNSIT – MBA
Disadvantages of Teamwork:
✓ Pressure to conform to group standards of performance and conduct.
✓ Resistance to the team effort from impinging on autonomy.
✓ High levels of pressure and stress
✓ Intergroup conflicts
✓ Social Loafing – It is the tendency by some team members to shrink responsibilities by
withholding effort towards group goals when they are not individually accountable for
their work. It is likely when individual effort is not recognized and assessed.
✓ Group Think – It is a situation when members of a cohesive group tend to agree on a
decision not on the basis of its merit but because they are less willing to risk rejection for
questioning a majority viewpoint or presenting a dissenting opinion. Dissenting views are
suppressed in favour of consensus. It can be remedied by training team members to
become effective participants in decision making process.
Groups vs. Teams – A comparison

Sl No Basis for Group Team
Comparison
1 Meaning A collection of individuals A group of persons having
who work together in collective identity joined together
completing a task. to accomplish a goal.
2 Dependency Independent Interdependent
of Members
3 No of Leaders Only one leader More than one
4 Leadership Hierarchical Participative

Style
5 Process Discuss, decide & Delegate. Discuss, Decide & Do.
6 Work Individual Collective

Products
7 Style of Role is spread across the Conformity is observed by whole
working whole team and is group which is to follow the leader
coordinated by all the in behavior and norms.
members.
8 Accountability Individually Individually & Mutually
9 Nature Group is not a form of team A team is a form of a group.
RNSIT – MBA
10 Interaction & Groups have face to face Teams do not usually have face to
Reporting interaction and usually has to face interaction and usually has to
report to superiors report to superiors
11 Size Large number of People Limited in Number
THE 3 COMPONENTS OF TEAM EFFECTIVENESS:

1. Task Performance – It is the degree to which the team’s output meets the needs and
expectations of those who use it.
2. Group Process – It is the degree to which members interact or relate that allow the team
to work increasingly well together over time.
3. Individual Satisfaction – It is the degree to which the group experience on balance is
more satisfying than frustrating to team members.
THE 7 CHARACTERISTICS OF EFFECTIVE TEAMS:
1. Team Norms
2. Team Leadership. 7. Team Creativity.

EFFECTIVE
TEAM
3. Team cohesiveness 6. Organizational

and independence Support
4. Team composition 5. Team Structure
RNSIT – MBA
These seven characteristics are explained in the paragraphs to follow:
1. TEAM NORMS:
• They are acceptable standards of behavior shared by team members.
• They influence how members perceive and interact with one another, approach decisions
and solve problems.
• Begin developing and being accepted at the early stages of team formation.
2. TEAM LEADERSHIP: Effective team leaders:

• Must recognize that not everyone knows how to be a team player.
• Must display self sacrificing behavior and self confidence.
• Employ multiply influencing tactics to control and direct team member action towards
the achievement of organizational goals.
• Encourage norms that positively affect the team’s goals and alter those that are negative.
• Observe with a keen eye what is going on in the team.
• Make contributions when necessary.
• Turn obstacles into opportunities.
• See themselves and others as part of the team’s pool of knowledge, skills and ideas.
• Must be adaptive, knowing when to play different roles.
3. TEAM COHESIVENESS & INTERDEPENDENCE:

• Team Cohesion is the extent to which team members band together and remain
committed to achieving team goals.
• Highly cohesive teams have high group potency (the collective belief of a group that it
can be effective) and a strong self efficacy (an internal belief held by an individual or a
group about how well and impending situation can be handled)
• The degree to which team members depend on each other for information, resources and
other inputs to complete their tasks affects the level of interdependence or mutual
influences within the team.
• Team Cohesion is increased when:
✓ Team members agree on common purpose and direction.
✓ External parties give high praise and recognition for the team’s success.
✓ The organization encourages and motivates teams to compete with each other for
rewards.
✓ Members find they have common ground and similar attitudes and values.
✓ Members enjoy being on the team.
RNSIT – MBA
4. TEAM COMPOSITION:
• Focuses on the diversity in knowledge, background and experiences of team members.
• Teams need the right mix of complementary skills, knowledge and ability.
• Teams with experience in working together tend to demonstrate greater task proficiency
and teamwork effectiveness.
• Team diversity reduces the likelihood of group-think.
• Teams that do not manage diversity well may suffer negative consequences.
• Good working relationships require good social skills for team members.
• Size also impacts team effectiveness – Small teams of under 12 members are generally
more effective.
5. TEAM STRUCTURE:
• It refers to inter relations that determine assignment of tasks, responsibilities & authority.
• Team members’ degree of interdependence and autonomy has been identified as key
structural components that influence team effectiveness.
• It determines the extent to which team members directly control the actions of each other
or report observations of their peers’ efforts to the management.
• Two noteworthy systems in this regard:
a. Horizontal incentive system.
b. Vertical incentive system.
6. ORGANIZATIONAL SUPPORT:
• Effective teams have strong support from top management.
• Assessing team effectiveness as a part of overall organizational performance is an
important role of top management.
7. TEAM CREATIVITY:
• It is the creation of a valuable, useful and novel product, idea, service, procedure or
process carried out via discovery rather than a predetermined step by step procedure by
individuals working together in a complex social system.
• Organizations that will survive and thrive are those that make the best use of the
creativity of their workforce.
• Organizational practices that foster team creativity:
✓ Provide adequate and quality resources.
✓ Provide supportive climate and culture.
✓ Provide flexibility.
✓ Provide a minimum amount of structure.
✓ Provide appropriate recognition and rewards.
RNSIT – MBA
• Team Leader practices that foster creativity:

✓ Matching people with the right assignments.
✓ Giving team members greater autonomy to do the job.
✓ Protecting against ‘creativity blockers’.
✓ Enhancing the timely availability of the adequate time, money and other
resources.
TYPE OF TEAMS
1. Functional Teams
2. Cross Functional Teams

TYPES OF TEAMS
3. Virtual Team
4. Self Managed Team
A brief description of each of these teams is given as follows:
1. FUNCTIONAL TEAM:
➢ It is a group of employees belonging to the same functional department such as

marketing, R&D, production, human resource, finance or information systems who have
a common objective.
➢ The structure is generally more hierarchical with the functional leader making all the
decisions and expecting his or followers to implement them.
➢ Team members tend to focus on their local area of specialization ignoring the overall
organization mission.
➢ There is no one best leadership style to use to manage/lead such teams in any
organizations as such.
➢ The use of functional structure/teams has been in decline.
RNSIT – MBA
2. CROSS FUNCTIONAL TEAM:
➢ It is a team made up of members of different functional departments of an organization

who are brought together to perform unique tasks to create new and non routine products
and services.
➢ Some members may be from outside the organization.
➢ Interaction, coordination, cooperation, information sharing and cross fertilization of ideas
among people from different functional areas produces better quality products and
services with shorter development cycles.
➢ Cross functional teams offer many potential benefits to an organization such as:
✓ A rich and diverse base of knowledge and creative potential that far exceeds
anything a single functional team could come up with.
✓ Improved coordination.
✓ Avoidance of problems
✓ Synergy
✓ Multiple sources of information and perspectives.
✓ Contacts outside of one’s functional specialty
✓ Learning of new skills that members carry back to their functional unit.
3. VIRTUAL TEAM:
➢ These are teams whose members are geographically distributed requiring them to work
together through electronic means with minimal face to face interaction.
➢ New and advanced technologies are providing the means for teamwork that is dispersed
(carried out in different locations) and asynchronous (carried out at different times)
➢ Have significant collaboration and leadership challenges.
➢ Team interaction, information sharing & knowledge integration are critical to success.
➢ Virtual cross functional teams are growing in companies with global operations.
➢ [**Note: More on Virtual Teams are explained in the last part of this unit.]
4. SELF MANAGED TEAM (SMT)
➢ SMTs are relatively autonomous teams whose members share or rotate leadership
responsibilities and hold themselves mutually responsible for a set of performance goals
assigned by higher management.
➢ They are usually cross functional in membership makeup.
➢ SMTs have wide latitude in decision making.
➢ They can manage themselves, plan and schedule work, and take action on problems.
➢ [**Note: More on SMTs are explained in other pages of this unit.]
RNSIT – MBA
DECISION MAKING IN TEAMS:
The aspect of decision making in teams involve the usual process of defining the problem,
narrowing down its scope, listing criteria, specifying alternatives, performing a cost – benefit
analysis of each of the alternatives considered, selecting a final alternative to make a decision,
follow up and sensitivity analysis.
The leadership perspective of decision making in teams can be understood through the following
three models:
1. Leader centred decision
making model
Decision making
Models in Teams 2. Team centred decision making
model
3. Normative Leadership Model
These models are explained in the following paragraphs.
1. LEADER CENTRED DECISION MAKING MODEL:
➢ As per this model, the leader exercises his or her power to initiate, direct, drive, instruct
and control team members.
➢ To be successful, the leaders should:

❖ Focus on task.
❖ Ignore personal feelings and relationships.
❖ Seek opinions.
❖ Get agreement.
❖ Make final decisions.
❖ Stay in control
❖ Stop disruptions
❖ Discourage members from expressing their feelings
❖ Keep it rational
❖ Guard against threats to his or her authority.
RNSIT – MBA
2. TEAM CENTRED DECISION MAKING MODEL:
➢ This model empowers the team members to make decisions and follow through.
➢ To be successful, the team leader should:

❖ Listen carefully
❖ Watch for nonverbal cues
❖ Serve as a consultant, advisor, teacher and facilitator.
❖ Model appropriate leadership behaviors
❖ Establish a climate of approval for expression of feelings and ideas
❖ Relinquish control to the team.
❖ Allow the team to make final decisions.
❖ Be aware of members’:
- Feelings.
- Needs
- Interactions
- Conflict
➢ Advantages:
✓ Can improve decision quality
✓ Shifts much of the decision making away from the leader
✓ Allows responsibility to be diffused among several people
✓ Results in higher commitment by team members to implement decisions as
compared to decisions made alone by a leader.
➢ Disadvantages:
✓ Can be self serving and contrary to the best interests of the organization if the
team members have the objectives and / or the priorities that are different from
those of the leader.
✓ Another disadvantage of this model is that it can end up being a poor compromise
rather than an optimal solution.
3. NORMATIVE LEADERSHIP MODEL:
➢ An important leadership question today is “When should manager take charge and when
should the manager let the group make the decision”? In 1973 Viktor Vroom and Philip
Yetton published a decision making model to answer this question.
➢ The model was based on two factors – “individual vs. Group decisions” & “time driven
vs. Development driven decisions”.
RNSIT – MBA
➢ Thus the NLT seeks to explain leadership styles that are best suited for situations where
leaders have to make decisions concerning individuals and groups; and also decisions that
are time specific and decisions that are development specific.
➢ The five leadership styles as per this model are:
1. DECIDE – the leader makes the decision alone and announces it or sells it to the
followers. The leaders may get information from others outside the group and within the
group without specifying the problem.
2. CONSULT INDIVIDUALLY – the leader tells followers individually about the problem,
gets information and suggestions and then makes the decision.
3. CONSULT GROUP – the leader holds a group meeting and tells the followers the
4. FACILITATE – The leader holds a group meeting and acts as a facilitator to define the
problem and the limits within which a decision must be made. The leader seeks
participation and concurrence on the decision without pushing his or her ideas.
5. DELEGATE – The leader lets the group diagnose the problem and makes the decision
within stated limits. The role of the leader is to answer questions and provide
encouragement and resources.
LEADERSHIP SKILLS FOR EFFECTIVE TEAM MEETINGS:
1. Planning Meetings
Leadership Skills for

effective Team 2. Conducting Meetings
Meetings
3. Handling problem members
These skills are discussed in the paragraphs to follow:
RNSIT – MBA
1. PLANNING MEETINGS:
➢ The first ever task of the leader is to plan well in advance the details of the meeting so as
to ensure proper organization of resources and avoiding deadlocks (not arriving at a
consensus) in a meeting.
➢ An effort is to be made to figure out the alternatives available for deciding the formalities
of the meeting so as to find a common ground and observe protocols in deciding the
matter of vote, proxies, discussion of key organization issues etc.
➢ In doing so, the leader should consider the following:
✓ Objectives
✓ Selecting participants and making assignments
✓ The agenda
✓ The time and place for the meeting
✓ The leadership aspects.
2. CONDUCTING MEETINGS:
➢ Each meeting should cover the following:
a. Identifying objectives.
b. Covering agenda items.
c. Summarizing and reviewing assignments.
➢ Care should also be taken to consider the following while conducting a meeting:
a. Making a record of the meeting proceedings (legally called the Minutes of the meeting)
b. Being clear on the authority who would chair the meeting.
c. Making arrangements for virtual meetings when most of the members associated with the
issue being discussed in the meeting are geographically dispersed.
➢ The leader should also reinforce the following critical aspects while conducting the
meeting:
a. Make sure by words or by acts, he does not oppress the concerns and thoughts of any
individuals.
b. Doesn’t end up in mismanaging the affairs.
c. Be impartial to all the followers involved in the decision making process irrespective of
differences in talent, contribution, ability, experience, seniority, proximity to the
management and the like.
3. HANDLING PROBLEM MEMBERS:

➢ It is a common practice for a leader to be opposed by followers whose thoughts doesn’t
sync with that of the leader or a manager in many cases during implementation of
decisions or follow up of actions.
RNSIT – MBA
➢ If such “difficult” members are not managed, deadlock would be reached, making it
difficult for common ground to be achieved in the meeting’s objectives.
➢ The problem members are usually classified as under:

a. Silent.
b. Talkers.
c. Wanderers.
d. Bored.
e. Arguers.
➢ Mechanisms to be used by leaders to manage such problem members – use of fear, co-
opting, use of peers, sharing information, passing on ownership etc.
SELF MANAGED TEAMS: A DETAILED PERSPECTIVE:
THE NATURE OF SELF – MANAGED – TEAMS (SMTs):
➢ To understand the nature of SMTs, two key questions need to be posed and addressed:
I. What makes them different from conventional teams?
II. How widespread is their use in organizations?
I. Differences between Self Managed Teams & Conventional Teams:
Sl No Characteristics / Basis of Self Managed Teams Conventional Teams
Comparison
1 Leadership Within the team Outside the team
2 Team member role Inter changeable Fixed
3 Accountability Team Individual
4 Work effort Cohesive Divided
5 Task design Flexible Fixed
6 Skills Multi skilled Specialized
RNSIT – MBA
II. The Benefits of Self – Managed Teams:

(Answering how wide spread are they in organizations):
❖ Greater improvements in quality, speed, process and innovation.

❖ A sense of belonging and ownership in one’s work.
❖ Greater employee motivation.
❖ Accelerated new product development.
❖ Greater employee participation.
❖ Reduced operational costs because of reductions in managerial ranks and greater
efficiencies.
❖ Greater employee job satisfaction, commitment and productivity.
❖ Lower turnover and absenteeism rates.
GUIDELINES FOR IMPROVING SELF MANAGED TEAM EFFECTIVENESS:
1. Ensure that the whole organization has changed its culture, structure and climate to
support SMTs.
2. Have a well thought out vision of the way in which SMTs will fit into the scheme of the
entire organization.
3. Allow time for team members to bond with one another and form team skills.
4. Provide adequate training so team member skills and experiences match task
requirements.
5. Provide objective goals, incentives and appropriate infrastructure.
6. Avoid overreacting at the first sign of crisis.
7. Ensure that the organization has the necessary resources to commit to this kind of change
in time, money and people.
8. Create a sense of empowerment so SMTs take ownership of what they are doing and how
they are going to do it.
9. Pay close attention to team design decisions.
10. Develop team based measurements and corresponding feedback methods that address
team performance.
11. Have a champion to support and defend the SMT from opponents who are threatened by
the new concept and what it represents
[The SMT champion is an advocate of the SMT concept whose responsibility is to help
the team obtain necessary resources, gain political support from top management and
other stakeholders of the organization and defend it from enemy attacks]
RNSIT – MBA
THE CHANGING ROLE OF LEADERSHIP IN SELF MANAGED TEAMS:
• The concept of a self managed team does not mean “without management”.
• Rather it implies self responsibility and self accountability.
• The SMT must still receive direction and instruction from higher authority.
• Many managers find themselves in a conflicting position when called upon to function as
external leaders for self managed teams.
• Most receive conflicting signals on how to go about it.
• Two roles assume significance in this regard thus:

A. Distributed Leadership: It is a situation where in multiple leaders takes complementary
leadership roles in rotation within the same SMT according to their area of expertise or
interest.
B. Self Managed team Facilitator: It is the external leader of a self managed team whose
job is to create optimal working conditions to team members to take on responsibilities to
work productively and solve complex problems on their own. He must be good at
coaching, influencing and empowering the team.
SMT facilitator team building activities:

▪ Opening forums to resolve interpersonal conflicts.
▪ Creating opportunities for social interaction.
▪ Increasing mutual acceptance and respect among diverse team members.
▪ Maintaining an open communication policy.
▪ Highlighting mutual interest, not differences, of team members.
▪ Increasing team identification through the use of ceremonies, rituals and symbols.
▪ Using team oriented incentives to foster teamwork.
THE CHALLENGES OF IMPLEMENTING SELF MANAGED TEAMS:
➢ Many of the drawbacks associated with SMTs stem from the difficulties of transitioning
from a traditional command and control work environment to self managed teams.
➢ Managers may resist or undermine the transition of power.
➢ Team members may experience anxiety about learning new behaviors.
➢ Some disadvantages of working in teams in general – such as social loafing and group
think are also likely to occur in self managed teams.
➢ The decision to use SMTs is not a guaranteed success and requires a great deal of
commitment, effort and support from all members of the organization.
RNSIT – MBA
GINNET’S TEAM EFFECTIVENESS LEADERSHIP MODEL:

Introduction:
How can managers and team leaders improve team results? How can successful teams be even
more effective? Dr. Robert Ginnett of the Centre for Creative Leadership has developed the
Team Effectiveness Leadership Model (TELM / TLM) which can be used to identify what is
required for a team to be effective and point the leader either towards the roadblocks that are
hindering the team or towards ways to make the team even more effective.
PART 1: BASIC MODEL:
(Note: HPT stands for High Performance Teams in the above Figure)
This model is divided into three parts:
1. INPUT – It stands for motivation and ability. It consists of the characteristics that make
the team successful that contain three different parts:
i. Organizational system – the reward systems that is of importance to keep things
going in a team.
ii. Team Factors – Here the factors to be considered are: does the project have a
poor design, offer no results and lack individual autonomy? If so, then the team is
less likely to be successful.
iii. Individual Factors – they are defined whether or not the workers buy into the
project and what motivates the team.
RNSIT – MBA
2. PROCESS – It covers communication, coordination and conflict management. This

stage consists of the four parts that makes the team effective. They are:
i. The team has to work hard enough (P1: Effort)
ii. The team has sufficient knowledge and skills. (P2: Knowledge & Skills)
iii. Has an appropriate strategy. (P3: Strategy)
iv. Has positive group dynamics. (P4: Group Dynamics)
3. OUTPUT – These are defined as the results of the team. Usually spans the following:
A. Individuals are satisfied.
B. Outcomes are acceptable to stakeholders.
C. Future capability of the team improves.
The indicators of the output include the following: Quality goods; Render good
services; were the goals achieved? Make sound decisions; Satisfaction etc.
Three Functions of the TLM Leadership:

1. Dream.
2. Design.
3. Develop.
MODEL PART 2: Diagnosis and Leverage Points identification using the TELM:
RNSIT – MBA
Strategies for Teams to perform when diagnosis indicates issues at various stages:
RNSIT – MBA
Concluding thoughts of the TELM – Uses of the Ginnett’s model:
1. Ensuring the team has a clear sense of purpose and performance expectations.
2. Designing or re-designing input stage variables at the individual, organizational and team
design levels.
3. Individual team performance through ongoing coaching at various stages, but particularly
while the team is actually performing its task.
VIRTUAL TEAMS:
➢ Virtual Teams are sometimes referred to as Geographically Dispersed Teams (GDTs).

➢ These are teams whose members are geographically distributed requiring them to work
together through electronic means with minimal face to face interaction.
➢ New and advanced technologies are providing the means for teamwork that is dispersed
(carried out in different locations) and asynchronous (carried out at different times)
➢ Major areas that need to change for global teams to work:

1. Senior Management Leadership.
2. Innovative use of communication technology.
3. Adoption of organization design that enhances global operations.
4. The ability to capture the strengths of diverse cultures, languages and people.
➢ TEN Principles for Leading Virtual Teams:

1. Be proactive.
2. Focus in relationships before task.
3. Seek clarity and focus early on.
4. Create sense of order and predictability.
5. Be cool a head, objective problem solver.
6. Develop shared operating assignments.
7. Give team members personal attention.
8. Respect the challenges of virtual environment.
9. Recognize the limits of available technologies.
10. Stay people focused.
******
RNSIT – MBA
QUESTION BANK
Unit 4:
3 Marks Questions:
1. What is a team?
2. What is group think?
3. What is social loafing?
4. What are the three components of team effectiveness?
5. What is cohesion?
6. What are virtual teams?
7. What is a self managed team (SMT)?
8. What is a functional team?
9. What is a cross functional team?
10. What are the thee functions of Ginnett’s TLM?
7 Marks Questions:
1. Differentiate between groups and teams.

2. Differentiate between a conventional team and a self managed team.
3. Explain the basic model of Ginnett’s TLM.
4. What are the benefits of a SMT?
5. Explain the leadership skills for effective team meetings.
6. Explain the three models of decision making in teams.
7. Explain the changing role of leadership in self managed teams.
8. Explain advantages and disadvantages of team work.
10 Mark Questions:
1. What is an effective team? Explain its seven characteristics.

2. Explain how Ginnett’s model is used to diagnose issues and leverage points in
organizations.
3. Explain the types of teams.
4. What are the challenges in implementing SMTs? Explain the guidelines for improving
SMT effectiveness.
5. Explain the ten principles for leading virtual teams.
6. Explain the nature of self managed teams.
7. Explain the organizational and team leader practices that foster creativity in teams.
RNSIT – MBA

UNIT 5
LMX, FOLLOWERSHIP, DELEGATION, LEADERSHIP FORMS & STRATEGIC
LEADERSHIP
Contents:
• Leader Follower Relations – Dyadic theory & Leader – Member Exchange (LMX)
theory.
• Followership
• Delegation
• Coaching
• Managing Conflict.
• Charismatic & Transformational Leadership.
• Stewardship & Servant Leadership.
• Leadership of Culture & Diversity
• Strategic Leadership.
EVOLUTION OF DYADIC THEORY

➢ Dyadic – It refers to individualized relationship between a leader & follower in a work
unit.
➢ Dyadic Theory – It is an approach to leadership that attempts to explain why leaders
vary in their behaviour with different followers.
➢ Dyadic theorists focus on the development and effects of separate dyadic relationships
between leaders and followers.
RNSIT – MBA
THE DYADIC APPROACH

➢ It concentrates on the heterogeneity of the dyadic relationships.
➢ Argues that a single leader will form different relationships with different followers.
➢ Leaders provide support for self worth:
✓ A leaders’ support for a follower’s actions and ideas.

✓ A leader building followers’ confidence in his or her ability, integrity and
motivation.
✓ A leader paying attention to the follower’s feelings and needs
DYADIC APPROACH - STAGES OF DEVELOPMENT
1 Vertical Dyadic Linkage (VDL) Theory:

➢ Examines how leaders form one on one relationship with followers and how these often
create In Groups and Out Groups within the leaders’ work unit.
➢ INGROUP – It includes followers with strong social ties to their leader in a supportive
relationship characterized by high mutual trust, respect, loyalty and influence.
Characteristics of In-groups:
✓ Participate in important decision making.
✓ Are given added responsibility
✓ Have greater access to the leader.
✓ Experience greater support from the leader.
✓ Reciprocity
✓ High exchange.
✓ Granted special favours from the leader.
✓ Mutual reinforcement based on common needs and interests.
✓ More likely to share with own group members than with members of other
groups.
➢ OUTGROUP – It includes followers with few or no social ties to their leader in a strictly
centred task relationship characterized by low exchange and top down influence.
Characteristics of Out-groups:
✓ Are managed according to the employment contract requirements.
✓ Receive little inspiration, encouragement and recognition.
✓ Do not experience positive relationships and influence.
RNSIT – MBA
2 Team Building Theories:

➢ Involves a primary concern to motivate a group of individuals to work together to achieve
a common objective while alleviating any conflicts or obstacles that may arise while
striving towards that objective.
➢ The emphasis is on forming relationships with all group members, not just with a few
special individuals.
➢ It is not possible to treat all followers exactly the same.
➢ Each person must perceive that he or she is an important and respected member of the
team rather than a non entity.
➢ Workplace social exchanges between individual employees, work groups and managers
are critical to team building.
3 Systems and Networks Theories:

➢ There is a noticeable trend of organizations seeking and getting involved in a variety of
collaborative agreements for the purposes of entering new markets and gaining
innovations or new products.
➢ By collaborating, organizations hope to exchange strengths with others which will allow
all partners to develop timely, innovative and synergistic solutions to complex problems
they could not address on their own.
➢ From a network perspective, the focus is on relations among actors whether they are
individuals, work units or organizations who are embedded within networks of
interconnected relationships that provide opportunities and constraints on behaviour.
➢ A systems oriented perspective focuses on how the quality of leader member relations
affects followers at the interpersonal, group and organizational levels.
➢ Proponents of the systems and networks view contend that leader relationships are not
limited to followers but include peers, customers, suppliers, and other relevant
stakeholders in the collectives of work groups and organization wide networks.
➢ The organization is viewed as a system of inter related parts.
➢ To be effective, groups need to manage “boundary spanning” relationships with other
groups and external members in their organization in order to gain access to information
and resources.
4 Leader Member Exchange (LMX) Theories:
Meaning:
➢ It is the quality of exchange relationship between an employee and his or her superior.
➢ Leaders form high quality social exchanges (based on trust and liking) with some
members and low quality economic exchanges with others that do not extend beyond the
employment contract.
RNSIT – MBA
➢ The quality of LMX affects employees’ work ethics, productivity, satisfaction and
perceptions.
➢ There is a sense among followers in the exchange relationship to reciprocate their
leaders’ trust and liking through “citizenship behaviors” and excellent performance.
➢ Face to face leader member interaction is critical in organizations.
➢ It assumes that leaders have limited amounts of social, personal and organizational
resources and tend to distribute them among followers selectively.
➢ Leaders do not interact with all followers equally which ultimately results in the
formation of LMXs that vary in quality.
High quality LMX relationships are characterized by:
➢ Better social support.

➢ More resources.
➢ More guidance for career development.
➢ Greater follower input in decision making.
➢ Greater negotiable latitude
Low quality LMX relationships are characterized by:
➢ Less support
➢ Moral formal supervision
➢ Little or no involvement in decision making.
The influence of LMX on Follower Behaviour:
➢ The special relationship with In-group followers creates certain obligations and
constraints for the leader.
➢ To maintain the relationship, the leader must – Pay attention to In-group members,
remain responsive to their needs and feelings, rely more on time consuming influence
methods such as persuasion and consultation & not resort to coercion and heavy handed
use of authority.
➢ The followers are therefore said to have developed Social Capital – the set of resources
that inherits in the structure of relations between members of the group, which helps them
get ahead.
➢ The basis for establishing a deeper exchange relationship with In-group members is the
leaders’ control over outcomes that are desirable to the followers, which include:
▪ Helping with a followers’ career.
▪ Giving special favours.
RNSIT – MBA
▪ Allowing participation in decision making

▪ Delegating greater responsibility and authority.
▪ Sharing more information.
▪ Giving tangible rewards.
▪ Assigning interesting and desirable tasks.
➢ In turn for these benefits, in group members are expected to: be more loyal to the leader,
be more committed to task objectives, work harder & share some of the leaders’
administrative duties.
➢ To the leader this also represents social capital that gives him or her power and influence
over followers.
➢ Unless this cycle of behaviour is interrupted, the relationship is likely to develop a point
where there is a high degree of mutual dependence, support and loyalty.
➢ The quality of LMX is central in influencing followers’:
a. Affective, Cognitive and Behavioral experiences.
b. Roles
c. Fate in their organizations.
The Three stage process for Developing Positive LMX Relations:
STAGE 1:
➢ The leader and follower conduct themselves as strangers.

➢ The leader and follower test each other to identify what kinds of behaviors are
acceptable.
➢ Each relationship is negotiated informally between each follower and the leader.
➢ It also involves the following:
a. Impression Management: It refers to the follower’s effort to project a favourable
image in order to gain an immediate benefit or improve a long term relationship with
a leader.
b. Ingratiation: It is the effort to appear supportive, appreciative and respectful.
c. Self Promotion: It is the effort to appear competent and dependable.
STAGE 2:
➢ The leader and follower become acquainted.

➢ They further refine the roles they will play together.
➢ Mutual trust, loyalty and respect develop between leader and follower.
➢ Relationships that do not move beyond stage 1 may deteriorate and remain at the level of
an out group.
RNSIT – MBA
STAGE 3:
➢ The roles reach maturity.

➢ Exchange based on self interest is transformed into mutual commitment to the mission
and objectives of the work unit.
➢ The end result of the life cycle model of the LMX relationships is the creation of actual
and perceived differences between in-group and out-group members.
The Three factors that determine the LMX Quality:
1 Follower’s Attributes:
➢ Proactive Followers – they show initiative even in areas outside their immediate
responsibility; they possess a strong sense of commitment to work unit goals; they show a
stronger sense of responsibility for the unit’s success.
➢ These followers attributes influence leaders to:
a. Show support.
b. Delegate more
c. Allow greater discretion.
d. Engage in open communication.
e. Encourage mutual influence between themselves and their followers.
2 Leader – Follower Perceptions of each other:

➢ The leaders’ first impression of the follower can influence the leaders’ behaviour towards
the follower.
➢ A positive relationship is more likely when: the follower is perceived to be competent
and dependable; the followers’ values and attitudes are similar to those of the leader.
➢ From the followers’ perspective, leaders that are perceived to be competent, experienced,
fair and honest are more likely to be supported.
➢ A favourable exchange relationship is said to correlate with:
a. More supportive behaviour by the leader towards the follower.
b. Less close monitoring.
c. More mentoring, involvement and delegation.
3 Situational Factors:
➢ It refers to the random or planned events that provide the opportunity for leaders to
evaluate a followers’ work ethic or character.
➢ In accordance with the same, “Try-outs” (or “role episodes”) are made use of [give
leaders clues about employees]
RNSIT – MBA
Effective Leader – Follower Feedback:
Backdrop:
✓ Many leaders avoid confronting below average performing followers.
✓ Can degenerate into personal conflict.
✓ May fail to deal with the underlying problem.
✓ Correcting deficiencies can help the follower improve.
✓ Must be done so that the leader follower relationship is preserved.
Guidelines for effective Leader Feedback:
Pre-Feedback – Leader should:
❖ Remind self to stay calm and professional.

❖ Gather accurate facts on follower performance.
❖ Remind self to avoid rush to judgment.
During Feedback session – Leader should:
❖ Be specific in stating performance deficiency.

❖ Explain negative impact of ineffective behaviour
❖ Help follower identify reasons for poor performance
❖ Ask follower to suggest remedies.
❖ Arrive at mutual agreement on specific action steps
Post Feedback session – Leader should:
❖ Follow up to ensure implementation of action steps

❖ Show desire to be of help to the follower
❖ Build follower’s self confidence
BIAS IN LMX – Employee Career Implications:
1. Pygmalion effect – Occurs when selected group members demonstrate loyalty and trust
and as a result win the liking of leaders who subsequently give them higher performance
ratings.
2. These ratings which may or may not be tied to actual performance, then influence the
members’ reputation, often become a matter of record and ultimately be used in future
selection and promotion decisions.
RNSIT – MBA
3. This may have possible adverse implications for the development and career
advancement of group members (regardless of their work performance) are not similar to,
familiar to and well liked by their leader.
4. Leaders, managers and HR specialists need to be aware of the potential bias associated
with high quality LMX relationships.
5. These relationships could result in negative consequences and discrimination against Out-
group followers.
FOLLOWERSHIP & FOLLOWERS
Followership:
It refers to the behaviour of followers that result from the leader – follower influence
relationship.
Follower:
He /She are a person who is being influenced by a leader.
✓ Effective leadership requires effective followers.

✓ There are no leaders without followers.
✓ The influencing process of leaders and followers is a two way street with followers also
influencing leaders.
Followership Types / Types of Followers:
RNSIT – MBA
Five types of Followers exist. These are explained as under:
1 Alienated Followers:
❖ They are low on involvement yet are high on critical thinking.

❖ Feel cheated or unappreciated
❖ Are capable but unwilling to participate in developing solutions to problems.
2 Conformist Followers:
❖ They are the “yes” type of people of the organization.

❖ Carry out all orders without considering the consequences.
❖ Avoid conflict.
3 Passive Followers:
❖ They are neither high on critical thinking nor involvement.

❖ Look to do the leader or others to do all the thinking.
❖ Require constant supervision.
❖ Never go beyond the job description.
4 Effective Followers:
❖ They are high on critical thinking and involvement.

❖ They are not risk averse nor do they shy from conflict.
❖ Have the courage to initiate change
❖ Serve the best interest of the organization.
❖ Tend to function very well in self managed teams.
❖ Complement the leaders’ efforts and be relied upon.
5 Pragmatic Followers:
❖ They exhibit a little of all four previous styles – depending on which style fits the
prevailing situation.
❖ Present an ambiguous image with positive and negative sides.
❖ On the positive side, when an organization is going through desperate times, the
pragmatic follower knows how to work the system to get things done.
❖ On the negative side, this same behaviour can be interpreted as playing political games or
adjusting to maximize self interest.
RNSIT – MBA
Guidelines to Becoming an Effective Follower:
- Offer support to leader.

- Take initiative
- Play counseling and coaching roles to leader when appropriate.
- Raise issues and/or concerns when necessary.
- Seek and encourage honest feedback from the leader.
- Clarify your role and expectations.
- Show appreciation.
- Keep the leader informed.
- Resist inappropriate influence of a leader.
Factors that determine Follower Influence:
1 Power Position:
➢ Leaders need to realize that they are no longer the sole possessors of power and influence
in their work units.
➢ Some followers may have personal, referent, expert, information and connection based
sources of power that can be used to boost upward influence.
➢ As more and more employees come to rely on a particular follower for information,
expertise or simply because of his or her personality, the followers’ relative power
position increases.
RNSIT – MBA
2 Locus of Control:
➢ By locus of control, we mean the extent to which an individual can control his own fate /
destiny. If he is able to do so, then he is said to have an internal locus of control else he is
said to have an external locus of control.
➢ Followers with an internal locus of control prefer a work environment that facilitates:
communication with elders, participation in decision making and opportunities to be
creative.
➢ Followers with an internal locus of control prefer a participative style of leadership.
➢ Followers with an external locus of control prefer a directive style of leadership.
➢ Followers with an internal locus of control are more likely to be more influential with
other followers than those with an external locus of control.
3 Follower Education and Experience:
➢ Followers with less education and experience need more guidance, coaching and
feedback.
➢ To improve their performance, inexperienced employees often seek the assistance of
experienced employees.
➢ Today’s workers are far more educated, mobile, diverse and younger than the workforce
of 20 years ago.
➢ The need for continuing education and training on the job is increasing.
➢ Leaders have to shift away from the top down directive style of leading where tasks are
highly structured and power tends to be centralized.
➢ They need to move toward a more decentralized, participative style of managing.
Dual role of being a Leader and a Follower:

o Good leadership is found in highly effective followers.
o A person can be a leader and also a follower.
o The roles can change back and forth throughout the course of a work day.
o Self managed teams require members to alternate between playing leadership and
followership roles.
o To execute both roles effectively is a challenge, given the high potential for role conflicts
and ambiguities.
RNSIT – MBA
DELEGATION
Introduction:
➢ Meaning: It is the process of assigning the responsibility and authority for accomplishing
objectives.
➢ Refers to giving employees new tasks.
➢ Success depends on a manager’s ability to know what to delegate and what not to
delegate.
➢ The leader should consider the following factors while delegating:
a. Task.
b. Time required.
c. Follower characteristics
Benefits of Delegation:
✓ Gives managers more time to perform high priority tasks

✓ Gets tasks accomplished and increases productivity
✓ Enables leaders to mobilize resources and secure better results than they could have got
alone.
✓ Trains employees and improves their self esteem.
✓ Eases the stress and burden on managers.
✓ Enriches followers’ jobs.
Signs of delegating too little:
o Taking work home

o Performing employee tasks
o Being behind in work
o A continual feeling of pressure
o Stress
o Rushing to meet deadlines
o Requiring that employees seek approval before acting.
RNSIT – MBA
Obstacles to Delegation:
Some managers want to do it all themselves because of:

- Habit
- Fear (that employees will fail)
Delegation Decisions:
1. Selecting what tasks to delegate.
2. Selecting who to delegate the tasks to.
RNSIT – MBA
COACHING & LEADERSHIP:
Coaching – Meaning:
Coaching is the process of giving motivational feedback to maintain and improve performance.
➢ It is designed to maximize employee strengths and minimize weaknesses.

➢ As a means of improving performance, organizations are training their managers to be
coaches and this trend is expected to continue because coaching boasts performance.
➢ Developing coaching skills is an important part of leadership development.
Coaching Feedback vs. Criticism:
Coaching feedback is based on good supportive relationship and the follower doing a self
assessment of performance. It is specific, descriptive and makes people feel like winners.
Criticism is judgmental and makes people feel like losers.
RNSIT – MBA
Coaching Steps:
The coaching model for Employees who are performing below standard:
➢ Attribution theory – it is used to explain the process managers go through in
determining the reasons for effective or ineffective performance and deciding what to do
about it.
➢ Determining the cause of poor performance and corrective coaching action:
- The performance formula explains performance as a function of ability,
motivation and resources.
- Improving Performance with the coaching model has the following steps:
1. Describe current performance.
2. Describe desired performance.
3. Get a commitment to the change.
4. Follow up.
RNSIT – MBA
How to give coaching feedback? – The 10 Coaching Guidelines:
MANAGING CONFLICT:
A conflict exists whenever people are in disagreement and opposition.
Definition: Conflict can be defined as a process in which one party perceives that another party
has negatively affected or is about to do so about something the first party cares for.
Psychological Contract:
It is the unwritten implicit expectations of each party in a relationship. At work, we have a set of
expectations of what we will contribute to the organization (effort, time, skills etc) and what it
will provide us (compensation, job satisfaction and so on). We are often aware of our
expectations until they have not been met (for example, how you are treated by your manager).
RNSIT – MBA
Conflict arises by breaking the psychological contract:

The psychological contract is broken for two primary reasons:
1. We fail to make explicit our own expectations and fail to enquire into expectations of the
other parties.
2. We further assume that our parties have the same expectations as we hold.
So as long as people meet our expectations, everything is fine; when they don’t our expectations,
we are in conflict. Thus it is important to share information and negotiate expectations
assertively.
Types and Sources of Conflict:
CONFLICT RESOLUTION:
Conflict resolution, otherwise known as Reconciliation, is conceptualized as the methods and

processes involved in facilitating the peaceful ending of conflict and retribution. Often,
committed group members attempt to resolve group conflicts by actively communicating
information about their conflicting motives or ideologies to the rest of the group (e.g., intentions;
reasons for holding certain beliefs), and by engaging in collective negotiation.
Ultimately, a wide range of methods and procedures for addressing conflict exist, including but
not limited to, negotiation, mediation, diplomacy, and creative peace building.
RNSIT – MBA
CONFLICT MANAGEMENT / RESOLUTION STYLES:
RNSIT – MBA
CHARISMATIC LEADERSHIP
Meaning:
Charismatic leadership is the influence based on follower perceptions that the leader is endowed
with the gift of divine inspiration or super-natural qualities.
➢ Charisma is a Greek word which means “divinely inspired”

➢ Charisma is a fire that ignites followers.
➢ It is a special quality that gives someone, power and authority over a large number of
people.
➢ Charisma thus is a distinct social relationship between the leader and the follower in
which a leader presents a revolutionary idea while the follower accepts this course of
action not because of its rational likelihood of success but because of an effective belief
in the extraordinary qualities of the leader.
➢ This entails the process of influencing major changes in the attitudes and assumptions of
organization members and building commitment for the organization’s objectives.
Focus of Charismatic Leaders/Leadership:

✓ Focus on collective interest instead of self interest.
✓ Work beyond Call of Duty
✓ Great influence and commitment to Vision
✓ Create strong sense of commitment and excitement to generate self sacrifice and work for
visionary future.
✓ Leaders have extraordinary effect on personal lives, society, and culture, economic and
political system.
✓ Entails the process of influencing major changes in the attitudes and assumptions of
organization members and building commitment for the organization’s objectives.
Qualities / Characteristics of Charismatic Leaders:

These characteristics are explained in the following paragraphs:
1 Visionary:
➢ The ability to manage different and better conditions and ways to achieve them.
➢ Future orientation.
➢ See the difference in how things are and how they should be.
2 Verbal/Communication Skills:
➢ Great rhetorical skills.
➢ Especially oral.
➢ Can speak about the vision and make the followers “see it”.
RNSIT – MBA
3 Self Confidence & Moral Conviction:

➢ Unshakeable self confidence – passed on to followers.
➢ True faith in the cause
➢ Strong moral beliefs
➢ Willingness to sacrifice.
4 Inspires Trust:
➢ Followers have total trust and belief in the leader and the cause.
➢ Show commitment to followers who then return it.
5 High Risk Orientation:

➢ Willing to be at great personal risk – both professionally and physically.
➢ Willing to risk the followers.
➢ Use unconventional (risky) strategies and methods to achieve goals.
6 High Energy & Action Orientation:

➢ Show emotion in what they do – leads to high energy
➢ Take action
➢ Serve as role model for followers – to those who show high energy to emulate the leader
and to those who take actions the leader wants.
RNSIT – MBA
7 Relational Power Base:

➢ Charismatic leaders have high referent and expert power.
➢ Followers feel – awe, trust, identification, devotion, common beliefs, unquestioning
acceptance and affection.
➢ Emotional bond prevails.
8 Minimum Internal Conflicts:

➢ Achieved through strength of belief.
➢ Means – Referent power
➢ Reason – Due to follower belief in the leader and the cause
9 Empower Others:
➢ Charismatic leaders know they need the efforts and ideas of others.
➢ They let the subordinate leaders do those things they are able to do.
➢ Often take credit for followers’ ideas and efforts.
➢ Encourage followers to take more responsibility.
10 Self Promoting:
➢ Charismatic leaders beat their own drums.
➢ Campaign for “the cause”.
➢ Explain their vision to all who will listen or lead.
Strategies to Develop Charismatic Qualities:
RNSIT – MBA
The 2 types of Charismatic Leaders – SCL & PCL

1 Socialized Charismatic Leader (SCL)
➢ They promote empowerment, self development, and equal participation and pursue
organizational goals.
➢ They encourage and instill devotion to vision and ideology.
➢ Examples – Winston Churchill, John Kennedy, Martin Luther King Jr. etc
2 Personalized Charismatic Leader (PCL)

➢ He promotes dependency, obedience and submission in followers.
➢ PCL promotes devotion to them; make decision based on self serving, group
achievements are used for self glorification.
➢ Examples – Adolph Hitler, Josef Stalin, Benito Mussolini etc.
Effects of Charismatic Leadership:

❖ Trust in “rightness” of vision.
❖ Similarity of followers and leaders’ beliefs and values.
❖ Heightened sense of self confidence.
❖ Acceptance of higher or challenging goals.
❖ Identification with and emulation of leader.
❖ Unconditional acceptance of leader.
❖ Strong affection for leader
❖ Emotional involvement
❖ Unquestioned loyalty.
Model of Charismatic Leadership:
RNSIT – MBA
1 Personal Meaning:
❖ It refers to meaningfulness and purpose of life.

❖ “The degree to which people’s lives make emotional sense and that the demands
confronted by them are perceived as being worthy of energy and commitment.
❖ Personal meaning is a great source of motivation.
❖ Sources of Personal Meaning:

i. Self concept/identity.
ii. Selflessness.
iii. Legacy.
iv. Activist Mindset.
v. Altruism.
vi. Culture and traditions.
vii. Political / Social orientation.
viii. Spirituality & religion.
ix. Hobbies & personal pursuits.
x. Values/ideals.
2 Leader Behaviour – Locus of Charismatic Leadership:
❖ Is charisma a result of 1) Situation 2) Leaders’ qualities and 3) interaction of situation

and qualities?
❖ Argument in favour – charismatic leadership does not work until society is in crises,
stressful situation, in state of deprivation or inequality.
❖ Is charisma based on extraordinary qualities not on situation?
❖ Charismatic leaders build personal meaning of followers; give purpose to their lives
especially in times of crises.
3 Attribution Variables of Leader Charisma:
❖ Discrepancy gap between status quo and the vision.

❖ Vision articulation (positive image of future and negative image of current situation,
unacceptable present situation)
❖ Role modeling (self sacrifice, love, dedication towards the cause)
❖ Use of unconventional strategies.
❖ Realistic assessment of resource needs and constraints.
RNSIT – MBA
TRANSFORMATIONAL LEADERSHIP
Meaning:
It is a process that serves to change the status quo by articulating to followers the problems in the
current system and a compelling vision of what a new organization could be.
❖ Focuses on what leaders accomplish (transforming abilities), not their personal

characteristics or followers’ reactions.
❖ It is about moving and changing things.
❖ It deals with altering the structure and influence people to get their support for new vision
and new possibilities.
❖ Collective “buy in” to organizational vision given by leader that follower willingly put
extra effort to achieve organizational goals.
Transformational Leaders:
➢ Have charisma, intellectual abilities, inspiration and individual consideration.

➢ Craft and implement bold strategies to exploit opportunities.
➢ Bring change.
➢ Shift of locus from individual to collective interest.
➢ Build commitment and trust towards mission and change.
➢ Create and articulate a vision.
➢ Foster a “Buy-in” of team goals.
➢ Set an example for followers consistent with leader values and beliefs.
➢ Have high performance expectations.
➢ Personalize the leader – member exchange.
➢ Empower followers to think outside the box.
Transformational vs. Charismatic Leadership:
• Some authors believe that there is no distinction

• Some see charisma as one of the attribute that define transformational leadership.
• There is an agreement on assertion that charismatic leaders are actually transformational
leaders but not all transformational leaders are charismatic.
• Transformational leaders can be from different levels of the organization – therefore
organizations can have more than one transformational leader.
RNSIT – MBA
Transformation Process:
Transactional Leadership:
It seeks to maintain stability within an organization through regular economic and social
exchanges that achieve specific goals for both the leaders and the followers.
Transformational vs. Transactional Leadership:
RNSIT – MBA
STEWARDSHIP
Meaning:
It is an employee focused form of leadership that empowers followers to make decisions and
have control over their jobs.
➢ It provides a roadmap by which leaders and organizations can be guided into developing
their leadership abilities – and become the stewards of the future who are better prepared
to meet the upcoming challenges in economic, political and environmental areas.
➢ Stewardship is more a viable alternative to current leadership practices because it is a
more empowering and sustainable form of leadership.
➢ It is based on a sense of public duty, a responsibility to enhance the common good that
helps to build resilient organizations for the future.
➢ The stewardship leadership model empowers managers to become leaders who serve
something greater than themselves, take courageous stands for the common good, mentor
and coach others, as well as delivering results with others.
➢ Contemporary view: Leader as steward and servant of the people.
Values of Stewardship:
RNSIT – MBA
Keys to Stewardship:
➢ Helping employees to grow personally and professionally.
➢ Strong teamwork orientation.
➢ Decentralized decision making and power down to where the work gets done.
➢ Equality assumption that is a partnership of equals rather than a leader – follower

command structure.
➢ Rewards must be redesigned to compensate employees for actual contributions and

greater responsibility.
The Stewardship Framework:
RNSIT – MBA
SERVANT LEADERSHIP
Meaning: Servant leadership is an approach that emphasizes fairness and justice as means for
achieving organization citizenship behaviour.
➢ The phrase “Servant leadership” was coined by Robert K Greenleaf in his essay – The
Servant as a Leader. Here he sets out a number of ideals, values and philosophies about
putting people first.
➢ Rather than putting organizations’ leaders in the position of ultimate authority and power,
the servant leader methodology is all about the sharing of power and control with those
they are responsible for and getting out of their way to allow them to be their best
possible selves at work and home.
➢ The servant leaders are servants first – the ultimate team players whose action and
purpose extend beyond the needs and desires of their own and extends to their colleagues
and partners.
➢ The leap from servant to servant leader is a difficult one for many people but comes from
a desire to continue to serve at an elevated level of responsibility.
Guidelines to Servant Leadership:
RNSIT – MBA
Traditional leaders vs. Servant Leaders:
RNSIT – MBA
Dimensions / Pillars of Servant Leadership:
LEADERSHIP OF CULTURE & DIVERSITY

Introduction:
➢ Great culture is a differentiating factor among low and high performance companies.
➢ High performance companies have high performance cultures.
➢ Strong corporate culture improves performance through consistent behaviour.
➢ Thus culture is the source of competitive advantage.
Defining Culture:
The set of key values, assumptions, understandings and ways of thinking that is shared by
members of an organization and taught to new members.
RNSIT – MBA
The Power of Culture: Culture serves two important functions in organizations namely:
1. It creates internal unity.

2. It helps the organization adapt to the external environment.
Culture identified by:
➢ Power structure in an organization.

➢ Procedure and criteria for allocating resources.
➢ Expressed in written form in policies, statements and philosophies.
➢ Often first expounded by founder.
Types of Organizational Culture:
1 Cooperative Culture: It represents a leadership belief in strong, mutually reinforcing

exchanges and linkages between employees and departments.
2 Adaptive Culture: It represents a leadership belief in active monitoring of the external

environment for emerging opportunities and threats.
3 Competitive Culture: It represents a leadership that encourages and values a highly

competitive work environment. Policies are designed to foster both internal and external
competition.
4 Bureaucratic Culture: it represents a leadership that values order, stability, status and
efficiency. They emphasize strict adherence to rules, policies and procedures.
RNSIT – MBA
Weak vs. Strong Cultures:
WEAK: Little agreement on values and norms of member behaviour. This could be due to:
✓ Because leader did not communicate the vision.
✓ Lack of self identity.
✓ Manipulation, favouritism and intense internal competition.
✓ Autonomy is promised whereas reality is otherwise.
STRONG: Clear, explicit set of principles and values. This could be due to:
✓ Management communicates values and principles continuously.
✓ Decision making to guide appropriate behaviors.
✓ Adaptation to environment and strategy is carried out.
✓ Factors for strong culture:
a. Principles and practices developed by strong founder.
b. Total organizational commitment.
c. Unwavering commitment from all the stakeholders.
Characteristics of Low Performing Cultures:
1. Insular thinking – avoiding to look outside for benchmark, relying too much on past
success, more inward thinking, failing to adapt to environmental changes, top
management being unaware of their employees’ needs etc are the reasons.
2. Resistance to Change – Maintaining Status Quo and Avoiding Risk.
3. Politicized Internal Environment – influential managers operate their departments in

their own way; self interests are above of corporate interests.
4. Unhealthy Promotion Practices – promoting employees without considering job

demands and personality fit.
Characteristics of High Performing Cultures:
1. Culture Reinforcement Tools – Ceremonies, slogans, stories, language and policies –

these ensure that employee and culture is compatible.
2. Intensely people oriented – treats employees with respect and dignity; give autonomy;
one to one relationship with high performers, mentor programs, celebrate employee
achievements, reasonable performance standards etc.
RNSIT – MBA
3. Results oriented – emphasis on excellence, effective performance appraisal system, and

employees set goals with consultation of managers and are held accountable.
4. Emphasis on achievement and excellence – management follows policies that inspire to

do their best.
Role of Leadership in creating High Performance Culture - Leadership Actions for

Shaping / Creating Culture:
➢ It is the leaders’ responsibility to craft organizational culture.

➢ Implementation of new culture may need modifications in human resource areas, policies
and office design.
➢ 3 phases – Identify which aspects of culture are supportive for strategy implementation,
communicate where change is required & later take action.
Strategies for shaping Culture – Symbolic Actions & Substantive Actions:
LEADERSHIP & CHANGING DEMOGRAPHICS – DIVERSITY
Defining Diversity:
Diversity is the inclusion of all groups at all levels in an organization.
RNSIT – MBA
A broad definition of Diversity should encompass all aspects of employees from background,
age, gender, ethnicity, sexual orientation and family status among other things.
Components of Diversity (Inclusive Workforce):
Reasons for embracing Diversity:
1. Embracing diversity can offer a competitive advantage.

2. It can help a company to develop and retain a talented pool of workforce.
3. It can be cost effective (for example, when minority issues are acknowledged thereby
reducing turnover effects)
4. It may provide a broader and deeper base of creative problem solving and decision
making.
Obstacles to achieving Diversity:
1. Stereotypes and Prejudice – It is a tendency to form a adverse opinion without cause

about people who are different from the mainstream in terms of gender, ethnicity etc.
2. Ethnocentrism – It is the opinion formed by people who appreciate their native cultures
and look down upon that of the others.
3. Glass Ceiling – It is an invisible barrier that separates women and minorities from top
leadership positions.
RNSIT – MBA
4. Policies and Practices

5. Unfriendly work environment.
Leaders’ role in Diversity Management – Factors related to Diversity Success:
STRATEGIC LEADERSHIP
Meaning:
It is the process of providing the direction and inspiration necessary to create and implement a
vision, mission and strategies to sustain organizational objectives.
➢ The purpose of strategic leadership is to effectively implement and guide the process of
strategic management.
Strategic Leaders: Meaning:

Strategic Leaders choose appropriate strategy, create effective and supportive team, identify and
focus on potential markets and customers, sustain competitive advantage, maintain ethical
standards and have excellent customer relationships.
Responsibilities of Strategic Leaders:

1. Conceptualize organizational vision, mission and core values.
2. Assist to formulate objectives, strategies, policies and structures that translate vision and
mission into business decisions.
RNSIT – MBA
3. Create culture and communication structure to facilitate organizational learning and

coordination among employees and customers.
4. Act as a leader and a role model for others.
Effective strategic leaders are skilled at:
Strategic Management Process – The Leader’s Role:
Role of Leaders in Strategic Management Process:

1 Strategy Formulation:
➢ Leaders to formulate strategies to include corporate level objectives and specify both
strategic and financial objectives.
➢ Develop SMART (Specific, Measurable, Achievable, Relevant & Time Bound) goals.
RNSIT – MBA
➢ Elements of good strategy development: Arena (Focus), Vehicles (How to get there),
Differentiators (to stand out), Staging (Speed & sequence of moves) and Economic Logic
(Returns)
2 Strategy Implementation:
➢ Effective leader require to execute strategy; Action plan to be detailed – must be
integrated and coordinated; must overcome resistance to change.
➢ Decisions regarding structure, culture, reward, budget, allocation, rules and policies must
match requirements of chosen strategy.
➢ Mismatch: Differentiation through innovation within hierarchical and bureaucratic
structure.
3 Strategy Evaluation:
➢ Leader to determine the effectiveness of the strategic choices.
➢ Fundamental activities:
a. Review internal and external factors.
b. Measure performance against objectives.
c. Take corrective action.
******
RNSIT – MBA
QUESTION BANK
Unit 5:
3 Marks Questions:
1. What is a dyad?
2. What is a VDL theory?
3. Differentiate between In-groups and Out-groups.
4. What is LMX?
5. What is followership?
6. Who is a pragmatic follower?
7. What is strategic leadership?
8. Define culture.
9. Define diversity.
10. What is a glass ceiling?
11. Explain dual role concept of leader-follower.
12. Define delegation.
13. State the obstacles to delegation.
14. Define coaching.
15. Define mentoring.
16. Define conflict.
17. Define charisma.
18. Define charismatic leadership.
19. Define transformational leadership.
20. Define transactional leadership.
21. Define stewardship.
22. Define servant leadership.
23. What is attribution theory?
24. Define psychological contract.
25. Differentiate between SCL and PCL.
7 Marks Questions:
1. Explain the role of leaders in strategic management process.

2. Explain role of leaders in diversity management / factors relating diversity success.
3. What are the reasons for embracing diversity? What are the obstacles to diversity?
4. Explain the four types of organizational culture
5. Differentiate servant leaders from traditional leaders.
RNSIT – MBA
6. Explain the stewardship framework.

7. Explain the role of transformational leaders.
8. What is personal meaning? Explain its sources.
9. Explain strategies to develop charismatic qualities.
10. Explain effects of charismatic leadership.
11. Compare the characteristics of in-groups and out-groups.
12. Explain factors that determine follower influence.
13. List the guidelines for becoming an effective follower.
14. List the guidelines for effective leader – follower feedback.
15. Explain the three factors that determine LMX quality.
16. Explain the types and sources of conflict.
17. Explain the delegation model.
18. Explain activities that can be and cannot be delegated.
19. Explain coaching model for employees who are performing below standard.
20. Differentiate between transactional and transformational leadership.
10 Marks Questions:
1. Explain the four stages of development in the Dyadic approach.

2. Explain three stage processes for developing positive LMX relations. Also explain
influence of LMX on follower behaviour.
3. Explain employee career implications caused due to bias in LMX.
4. Explain the types of followers.
5. What are the benefits of delegation? List the signs of delegating too late.
6. Explain the ten coaching guidelines.
7. Explain the five conflict resolution/management styles.
8. Explain the qualities / characteristics of charismatic leaders.
9. Explain the three component model of charismatic leadership.
10. What is transformational leadership? Explain transformation process.
11. Explain the values of stewardship. What are the keys to achieving these values?
12. Explain the guidelines to servant leadership.
13. Explain the characteristics of high performing and low performing cultures.
14. Explain the symbolic and substantive leadership actions for shaping culture / creating
high performance culture.
15. Explain the characteristics and responsibilities of effective strategic leaders.
RNSIT – MBA

UNIT 6
LEADERSHIP DEVELOPMENT & SUCCESSION
Contents:
• Leadership Development through:
✓ Self Awareness
✓ Self Discipline
✓ Education
✓ Experience
✓ Mentoring
• Leadership Development Programs and evaluation of its efforts.
• Leadership Succession – An overview
LEADERSHIP DEVELOPMENT
➢ Leadership talent can be developed – remember that leaders are both born and made.
➢ Leadership Development may include self development or an organizationally supported
leadership development program.
➢ Unless top management assigns a high priority to developing leaders and succession
planning, the company will experience a steady attrition in talent.
➢ Leadership development is often perceived in terms of education and training, job
experience and coaching.
➢ Leadership Development can be approached through the following five mechanism:
1. Self Awareness Self Help Leadership

2. Self Discipline Development
3. Education
4. Experience Also, factors contributing to
5. Mentoring Leadership Development
1 Leadership Development through Self Awareness:
➢ Self Awareness: Insightfully processing feedback about oneself to improve one’s

effectiveness.
➢ Part of self awareness is being able to understand how the individual is perceived by
others.
➢ Many mistakes in organizations result from gaps in self awareness.
RNSIT – MBA
➢ Core Areas of Self Awareness:

(a) Values
(b) Learning Styles
(c) Emotional Intelligence
(d) Core self evaluation
(e) Attitude towards change.
➢ Levels of Self Awareness:
A. Single Loop Learning: Occurs when the learners seek minimum feedback that might
substantially confront their basic ideas or actions. Here, individuals learn only about
subjects within the “comfort zone” of their belief systems
B. Double Loop Learning: An in-depth type of learning that occurs when people use
feedback to confront the validity of the goal or the values implicit in the situation. To
achieve double loop learning, one must minimize defensive thinking. Openness to
information and power sharing with others can lead to better recognition and
definition of problems, improved communication and increased decision making
effectiveness.
RNSIT – MBA
2 Leadership Development through Self Discipline:
➢ Self Discipline: Mobilizing one’s effort and energy to stay focused on attaining an
important goal.
➢ It plays an important role in the continuous monitoring of one’s behaviour to ensure
needed self development occurs.
➢ It is particularly necessary because the pressures of everyday activities often divert a
person’s attention from personal development.
➢ Actionable Ideas to develop Self Discipline:

a. Get clear about what it is you want to accomplish.
b. Evaluate why you want to accomplish this goal.
c. Eliminate all distractions.
d. Prioritize your highest value tasks and activities.
e. Track your progress.
f. Keep yourself accountable.
RNSIT – MBA
3 Leadership Development through Education:
➢ Education generally refers to acquiring knowledge without concern about its immediate
application.
➢ If a potential leader studies maths, the logical reasoning acquired might someday help
him or her solve a complex problem facing the organization. As a result, the leaders’
stature is enhanced.
➢ Most high level leaders are intelligent, well informed people who gather knowledge
throughout their career.
➢ The knowledge that accrues from formal education and self study provides them with
information for innovative problem solving.
➢ Strategies used to develop leaders include in this regard include:
a. Management Education – it is the acquisition of a broad range of conceptual

knowledge and skills in formal settings in degree granting institutions (Masters’
degree /executive education programs)
b. Management Development – It is an organization’s conscious effort to provide its

managers and potential managers with opportunities to grow, learn and change, in the
hopes of producing over the long term a cadre of managers with necessary skills
necessary to function effectively in an organization.
4 Leadership Development through Experience:

➢ On the job experience is an obvious contributor to leadership effectiveness.
➢ Without experience, knowledge cannot be readily converted into skills. For example, you
will need experience to put into practice the appropriate influence tactics.
➢ These experiences could be of the following types:

a. Challenging experiences – best experiences are those that realistically challenge the
manager including dealing with stressful problems; creating an environment for
development requires that an organization first rid itself of the belief in survival of the
fittest; extremely challenging experiences are referred to as “Crucibles” – critical
events and experiences that more often reflect failure than success – the crucibles
demand that the leaders step up and do something they have never done before such
as rescuing a falling business.
b. Broad experiences – Situational based; a sound approach to improving leadership

effectiveness is to gain managerial experiences in different settings; an aspirant to
RNSIT – MBA
executive leadership is well advised to gain management experience in at-least two

organizational functions, such as marketing and operations.
c. Pivotal life experiences – Here, the leader could harness potential from simulating
his real life experiences to that of the challenges encountered in the organizational
setting.
5 Leadership Development through Mentoring:
➢ Another experienced based way to develop leadership capability is to be coached by an

experienced, knowledgeable leader – Quite often this person is a mentor, a more
experienced person who develops a protégé’s abilities through tutoring, coaching,
guidance and emotional support.
➢ Mentors enhance the career of protégé’s in many ways such as recommending them for
promotion and helping them establish valuable contacts.
➢ Having multiple mentors is important because mentoring relationships are often fragile
and problems can occur – For example: the mentor perceives the protégé to be a threat
and a rival and therefore try to damage the protégé’s reputation; the mentor may end up
neglecting the protégé because the former becomes preoccupied with his or her own job
responsibilities.
➢ Key elements of Mentoring:
a. Establishing effective matching process.
b. Agree on guiding principles.
c. Provide support.
d. Set follow up steps.
e. Evaluate the program.
➢ There are three different types of Mentoring that could be pursued by a Leader,
namely:
1. Formal Mentoring – Employers often formally assign a mentor to help him or her
adjust well to the organization and to succeed.
2. Informal Mentoring – Here the mentoring is traditionally throughout based on
compatibility or spark between two personalities.
3. Shadowing – Here the subordinate directly observes the work activities of the mentor
by following them around for a stated period of time such as one day per month.
➢ Keys to successful Mentoring Programs:
a. HR and Senior Management set goals together.
b. Program administrator uses care in pairing mentors with protégés, has responsibility
expectations and follows up with pairs frequently.
c. Senior management is firmly committed to the program.
RNSIT – MBA
LEADERSHIP DEVELOPMENT PROGRAMS

Introduction:
➢ A time honored strategy for developing prospective, new and practicing leaders is to
enroll them in leadership development programs.
➢ Many management development programs are also aimed at leadership development.
➢ The difference however is that the management development programs offer courses that
cover hundreds of topics within the functions of planning, organizing, controlling and
leading.
Types of Leadership Development Programs (LDPs):
There are 7 broad categories of LDPs, which are listed as below:
1 Feedback Sensitive
Programs
2 Skill Based 7 Coaching and

Programs Psychotherapy
Programs
7 TYPES OF
LEADERSHIP
DEVELOPMENT
PROGRAMS
3 Conceptual 6 Action Learning
Knowledge & Programs
Awareness Programs
4 Personal Growth 5 Socialization

Programs Programs
These seven types of LDPs are explained in the paragraphs to follow:
RNSIT – MBA
1 Feedback Sensitive Programs:
➢ This type of program helps leader develop by seeing more clearly their patterns and
behaviour, the reasons for the behaviors and the impact of these behaviors on their
effectiveness.
➢ For example, if you learn that you tend to shut people off with an angry smirk on your
face, unless you practice removing that smirk, you have not gained much from the
feedback.
2 Skill Based Programs:
➢ Skill training involves a considerable element of how to enhance and leverage upon the
existing and the additional skills and competencies that are needed for the leaders to take
on newer challenges in their environments.
➢ The emphasis is on how to apply knowledge.
➢ Five different methods used are – Lecture, Case study, Role play, Behavioral Modeling
and Simulations.
3 Conceptual Knowledge & Awareness Programs:
➢ A standard university approach to leadership development is to equip people with a

conceptual understanding of leadership and its dimensions.
➢ This could be routed through an explanation of the theories, models and frameworks that
have been put forth by researchers and theorists of the leadership concept.
4 Personal Growth Programs:
➢ Personal growth can be defined as a process by which the leaders of an organization are
helped in a continuous and planned way for acquiring or sharpening the capabilities of an
individual, develop an organizational environment in which an individual can perform
various functions associated with future and present roles.
➢ At the individual level, personal growth includes goals, plans or actions oriented towards
one or more of the following aims:
i. Improving self awareness.
ii. Improving self knowledge.
iii. Building or renewing identity.
iv. Developing strengths and talents.
v. Building employability or human capital.
vi. Defining and executing personal development plans etc
RNSIT – MBA
5 Socialization Programs:
➢ These programs aim at enriching the social fabric of the workplace for the leader to
understand the concerns of his followers in an informal setting.
➢ This might be due to the fact that reliance of formal mechanisms might prove to be less
engaging from the perspective of the followers.
➢ From the company standpoint, an essential type of leadership development program
emphasizes becoming socialized – becoming acclimated to the company and accepting its
vision and values.
6 Action Learning Programs:
➢ It is a directly practical approach to leadership development.

➢ Here the leaders and the potential leaders work together in groups to solve organizational
problems outside their usual sphere of influence.
➢ It could take the form of quality circles, focus group, brainstorming, mirroring, action
groups to solve problems etc.
7 Coaching and Psychotherapy:
➢ A coach might advise a leader that giving more recognition for good performance would
make him a more dynamic leader.
➢ Coaching feedback is based on good supportive relationship and the follower doing a self
assessment of performance. It is specific, descriptive and makes people feel like winners.
Evaluation of Leadership Development Programs and Efforts:
Introduction:
✓ The evaluation of Leadership Development Programs and Efforts is a comprehensive
topic that includes such considerations as the design of experiments, cost, criteria and the
development of accurate outcome measures.
✓ Evaluation Framework:
Most Leadership Development Programs can be assessed using a four step process based
on Kirkpatrick’s four level evaluation frameworks. These levels are as follows:
1. Level 1 – Learners Reaction and Satisfaction.
2. Level 2 – Learning.
3. Level 3 – Application & Implication.
4. Level 4 – Results or Business Impact.
RNSIT – MBA
Approaches used for Evaluation of Leadership Development Programs and Efforts:
Approaches for
Evaluation of LDPs
1. Evaluation through 2. Evaluation through

Traditional Approach Domains of Impact
These two approaches are explained as under:
1 Evaluation through Traditional Approach:

✓ The traditional approach to the evaluation of leadership training and development
programs would first specify the program objectives. After training has been completed,
measurements would be made considering the extent to which those objectives were met.
✓ Two sets of outcomes are especially relevant:
i. First an assessment is made of the extent to which the leaders acquired new skills
during the program.
ii. Second, an assessment is made of whether the organization has become more
effective as a result of this new skill acquisition. Did the bottom line improve
because of the new skills? For example, has supportive feedback by leader’s
results in higher quality and profits?
✓ A more rigorous approach to evaluation of leadership training and development would
include an experiment as shown in the table below:
Control Group 1 Yes None Yes

Control Group 2 Yes Business Communications Yes
The experimental group would consist of participants in the Development Program. Before and
after measures of skills would be taken to determine if improvements took place. Outcome
measures from the experimental group would then be compared to those from two control or
contrast groups. All three groups would be composed of people similar in education, intelligence,
job level, job experience and so forth. People in one control group would receive no special
development. Members of the second group would receive a different kind of development.
Instead of training in giving supportive feedback, they might be trained in business
communications. The purpose of the second control group is to determine if training in
supportive feedback has an edge over simply sending people to any sensible training program.
RNSIT – MBA
2 Evaluation through Domains of Impact Approach:

✓ The traditional method of evaluation is best suited to evaluating structured, definable
skills such as running software or performing a breakeven analysis. LDPs however
involve much broader, less structured behaviors such as inspiring others and identifying
problems. Thus a useful method of measuring outcomes of leadership development is to
differentiate types of learning and measure them separately. These areas of possible
changes are referred to as “Domains of Impact”.
✓ The five domains of impact usually considered for evaluating leadership development
efforts are – (a) knowledge acquisition (b) self awareness building (c) skill development
(d) behavioral change and (e) Prescriptive / attitude change.
✓ Example – After attending a feedback intensive program, a manager said – “The program
got me to thinking that people are different – and they are motivated differently, their
priorities are different – and to start looking for it. When I came back, I started analyzing
people who were working directly for me and then I started managing differently”. Thus
understanding domains of impact of LDPs may help evaluate essence of such programs.
LEADERSHIP SUCCESSION
Meaning: It is an orderly process of identifying and grooming people to replace managers.
Succession Planning is linked to Leadership Development in two ways:

1. Being groomed as a successor is a part of leadership development.
2. Process of choosing and fostering a successor is a part of a manager’s own development.
Basics of Succession Planning:
What is Succession Planning?

Succession Planning is the Process of identifying and developing suitable Team Members who
are able to replace Key Positions as and when required.
In nutshell Strategic Planning will help:-

1. To prepare Team Members for leadership roles and make them ready for new roles as &
when need arises.
2. To plan Career Path for talented Team Members.
3. Risk Management.
The Benefits of Succession Plan:

• Helps the transition go smoothly and minimizes costs
• Sets a timetable for transfer of ownership
RNSIT – MBA
• Helps ensure the future financial stability and value of your business and your retirement
capital
• Reduces potential tax liabilities of transferring ownership and maximizes tax planning
opportunities before it’s too late
• Helps contribute to the growth of the business and add potential value to your net worth
• Identifies retirement income levels needed to support your desired lifestyle
• Family, business and estate financial needs are identified in the event of disability or
premature death
Process of Succession planning

This tool kit is intended to provide a framework for developing succession strategies utilizing the
following 5 Steps:
Step 1- Identification of Key Leadership Positions

Step 2 – Identify Competency, Skills and Success Factors of Leadership
Step 3 – Assess Current Bench Strength
Step 4 – Design and Implement Career Development Strategies
Step 5- Monitor and Evaluate Strategies
RNSIT – MBA
Step 1 – Identification of Key Leadership Positions: To begin the process of succession

planning, the department’s strategic leadership team should identify their key leadership
positions by evaluating the impact each position has in achieving its strategic goals and
objectives.
Step 2 – Identify Competency, Skills and Success Factors of Leadership: Now that the
leadership team has identified the priority positions, the next step is to document the education,
experiences, key competencies, and other factors necessary for success for each key leadership
position.
Step 3- Assess Current Bench Strength: The third step in the succession planning process is
knowing your bench strength. In order to gauge bench strength, the department needs to
determine whether critical leadership positions have one person or more ready to successfully
assume the role and responsibility of the position. Knowing the depth of talent within the
organization will allow department leaders to focus on strategy development and measurement
where it is needed.
Step 4 – Design and Implement Career Development Strategies: Now that the strategic
leadership team has evaluated the bench strength for the prioritized key leadership positions,
attention shifts to the continued career development of the employees determined to be eligible,
or potentially eligible, for these positions. This step in the succession planning process is focused
on helping these employees and their managers discuss career development plans.
Step 5 – Monitor and Evaluate Strategies: The final step in process is monitoring and
evaluating the effectiveness of strategies implemented to close the high priority talent gap(s).
Succession planning strategies are designed to be an inclusive opportunity to increase available
talent pool of candidates for key leadership positions and the future needs of state government.
Leadership Succession (Continued)
How the Board chooses a Successor?

➢ A major responsibility of the board is to choose a successor to the CEO.
➢ The general approach is to follow standard principles of human resource selection, such
as thoroughly screen the candidates, including speaking to several people who have
worked with the individual.
➢ Information from a development program for successors must be carefully reviewed,
including documentation of performance.
➢ The board should have direct and regular contact with all for the promising candidates.
RNSIT – MBA
Emotional Aspects of Leadership Succession:

➢ Leadership Succession should not be regarded as a detached and an objective process.
Even financially independent executives are likely to experience emotional loss when
they are replaced. They might yearn for power and position they once possessed.
➢ In family firms, leadership succession is a highly emotional process – Turnover and
productivity can be impacted.
➢ Emotional reactions can occur throughout the organization. When the previous leader
was well liked by the group or team, it will be more difficult for the new leader to exert
his or her authority or to be accepted.
Developing a Pool of Successors – Steps / Concerns:

➢ Developing a pool of successors goes beyond succession planning which usually involves
identifying one or two candidates for a specific job.
➢ The Six steps involved in developing a pool of successors are as follows:
1. Evaluate the extent of an organization’s pending leadership shortage.
2. Identify needed executive competencies.
3. Identify high potential individuals for possible inclusion in the pool.
4. Establish an individually tailored development program for each potential candidate.
5. Select and place people into senior jobs based on their performance, experience and
potential.
6. Continuously monitor the program and give it the top management support.
Growing Inside – Outside Leaders:

➢ A continuing debate related to succession planning is whether a company should promote
an insider or an outsider to the top position.
➢ Research and analysis suggests that promoting insiders with an outside perspective may
be the best solution.
This is for the following reasons:
a. Insiders know the company, culture and people within the firm.
b. Promoting insiders demonstrates opportunities for advancement to other workers.
c. Political ties and unclear thinking can hinder an insider’s potential.
d. Best solution is to groom insiders with an outsider perspective.
RNSIT – MBA
Challenges of being New Leader / Successor:

1. Time Management – From the first level supervisor to the chairperson, leaders must
work with managers and perhaps direct reports to find the right balance between doing
and leading.
2. Overcoming Resentment – If you are selected from among the group to be a new leader,
you will have to deal with the resentment and envy of several direct reports who wanted
your position.
3. Building relationships quickly enough – As a new leader, high priority is to build
constructive relationships with subordinates as quickly as possible. It is essential to build
a professional, merit based team climate as soon as possible.
4. Being realistic about the process – Having realistic expectations about how much you
can accomplish right away is central to effective management by the new leader as soon
as he steps in as a successor.
5. Being comfortable with unpopularity – The most admired leaders at every level are
rarely liked by everybody. By the nature of their roles, leaders make decisions that not
everyone will agree with.
Key issues in Leadership Succession / Succession Planning:

❖ Succession Planning program must have the support and backing of the company’s senior
level management.
❖ It must be part of the integrated HR process that includes training, development and
performance appraisal.
❖ It needs to identify the skills and competencies the organization will need in 5, 10 or 15
years and so on.
❖ Critical positions must be identified and included in the company’s succession planning
program.
❖ The plan needs to identify star performers that are almost ready to step into those critical
positions.
❖ Analyze workforce and identify who will be eligible for retirement within next five years.
❖ Managers need to identify the responsibilities, skills and competencies that will be
needed by their replacements.
❖ The plans needs to orchestrate moves for the next 6 months to be in pace with all the
previous pointers to leverage upon succession planning efforts.
Pitfalls of Succession Planning:

❖ Underestimating people within the organization or overlooking employees that do not
appear to fit your standard “company template”.
❖ Implementing a program that is designed for only upward mobility – thus lateral
succession moves should also be included in the plan.
RNSIT – MBA
❖ Failing to offer the appropriate training and developmental opportunities.

❖ Creating a development program that only offers “generic” leadership training programs.
❖ Not holding managers and leaders accountable for succession planning.
❖ Not sharing the data with employees – you run the risk of losing promising employees if
they do not feel the company has a plan for their development.
MISCELLANEOUS TOPICS
Characteristics of Future Leaders:
Future leaders will:

✓ Create simpler, faster moving organizations.
✓ Have dynamic personalities.
✓ Communicate on many levels.
✓ Bring back trust.
✓ Recognize needs of others.
✓ Motivate others to make changes.
Special Techniques for Leadership Training & Development:
1 Behavior Role Modeling: Uses a combination of demonstrations and role playing; based on
social learning theory; one of the most effective training methods for managers.
2 Business Games & Simulations: Requires trainees to analyze complex problems and make
decisions; there has been an evidence of its usefulness in training and education sector.
3 Case Discussions: Approach that involves asking questions & encouraging participation in the
discussion; emphasize desirability of identifying alternative remedies; helps prioritizing.
Leadership Pipeline:
It is a model of Leadership Development that tightly links leadership development with

management responsibilities at each level of the organization.
Example: Six Levels of Leadership Pipeline (at GE – General Electric)
1. Managing individual contributions.
2. Managing managers.
3. Being a functional manager.
4. Being a business manager.
5. Being a group manager.
6. Being an enterprise manager.
******
RNSIT – MBA
QUESTION BANK
Unit 6:
3 Marks Questions:
1. Define leadership development.

2. What are LDPs?
3. Define self awareness.
4. Define self discipline.
5. What is management development?
6. What is leadership pipeline?
7. Define succession planning.
8. What is leadership succession?
9. What is shadowing?
10. List three types of experiences crucial for leadership development.
7 Marks Questions:
1. Differentiate between single loop learning and double loop learning.

2. Explain the actionable ideas for fostering self discipline.
3. What are the challenges of being a new leader/successor?
4. What are the steps involved in developing a pool of successors?
5. How does a board choose a successor? Explain the emotional aspects of succession.
6. What are the benefits of succession planning?
7. Explain the three types of mentoring.
8. What are the key issues in leadership succession / succession planning?
9. Explain the factors contributing to leadership development.
10 Marks Questions:
1. Explain the five leadership development approaches / mechanisms.

2. Explain the seven types of Leadership Development Programs (LDPs)
3. Explain two approaches used for evaluation of Leadership Development Programs.
4. Explain the process of succession planning.
5. What are the pitfalls of succession planning?
6. What are the elements of mentoring? Explain keys to successful mentoring programs.
RNSIT – MBA
Previous Year Question Papers
** [Note: Question Papers from 2010 to 2012 years are enclosed (that covers the same syllabus
as the present one – as in between 2013 and 2019, the subject wasn’t a part of the MBA syllabus]
Paper 1 – June 2012:
RNSIT – MBA
Paper 2 – June 2010 – Page 1
RNSIT – MBA
Paper 2 – June 2010 (Continued) – Page 2
RNSIT – MBA
Paper 3 – June 2011 – Page 1
RNSIT – MBA
Paper 3 – June 2011 (Continued) – Page 2
RNSIT – MBA
Academic Viva Questions:
1. Define leadership.
2. What are traits?
3. Define Personality.
4. Define Attitude.
5. Define Ethics.
6. Define euphemistic labeling.
7. Define self concept.
8. Define Pygmalion effect.
9. What is a leadership style?
10. Define contingency leadership.
11. What is normative leadership?
12. Who is a country club leader?
13. What is a leadership grid?
14. What is equity theory?
15. Define Motivation.
16. Define reinforcement.
17. What is self actualization need?
18. What is a team?
19. What is group think?
20. What is social loafing?
21. What is cohesion?
22. What are virtual teams?
23. What is a self managed team (SMT)?
24. What is a functional team?
25. What is a cross functional team?
26. What is a dyad?
27. What is a VDL theory?
28. What is LMX?
RNSIT – MBA
29. What is followership?

30. Who is a pragmatic follower?
31. What is strategic leadership?
32. Define culture.
33. Define diversity.
34. What is a glass ceiling?
35. Define delegation.
36. Define coaching.
37. Define mentoring.
38. Define conflict.
39. Define charisma.
40. Define transformational leadership.
41. Define transactional leadership.
42. Define stewardship.
43. Define servant leadership.
44. What are LDPs?
45. Define self awareness.
46. What is management development?
47. What is leadership pipeline?
48. Define succession planning.
49. What is leadership succession?
50. What is shadowing?
*********************************************************************

OL All Units Material PDF

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

OL All Units Material PDF

Загружено:

Авторское право:

Доступные форматы

RNSIT – MBA

Material Prepared / Compiled by:

ORGANIZATIONAL LEADERSHIP (18MBAHR402)

Contents of the Module:

• Leadership Basics – Definition, Importance, Functions, Characteristics etc

1. Leadership is the influencing process of leaders and followers to achieve organizational

4. Leadership is the potential to influence behaviour of others. It is also defined as the

Leadership definition Key Elements:

1. Leaders – Followers: A follower is a person who is being influenced by a leader. A

2. Influence – Influencing is the process of a leader communicating ideas, gaining

3. Organizational Objectives – Effective leaders influence followers to think not only of

4. Change – Influencing and setting objectives is about change. Organizations need to

2. Motivation- A leader proves to be playing an incentive role in the concern’s working. He

4. Creating confidence- Confidence is an important factor which can be achieved through

7. Co-ordination- Co-ordination can be achieved through reconciling personal interests

Nature / Characteristics /Features of Leadership:

1. Influence the behaviour of others: Leadership is an ability of an individual to influence

2. Inter-personal process: It is an interpersonal process between the leader and the

3. Attainment of common organizational goals: The purpose of leadership is to guide the

4. Continuous process: Leadership is a continuous process. A leader has to guide his

I. Interpersonal Roles: They include:

Some examples of the activities under this role are:

Some examples centric to this role are:

II. Informational Roles: They include:

Some examples of this role include:

III. Decisional Roles: They include:

✓ Developing new or improved products and services.

Some examples of resource allocation include:

Some examples of negotiations include:

LEVELS OF ANALYSIS OF LEADERSHIP THEORY:

A leadership theory is an explanation of some aspect of leadership; theories have practical

Level 1 – Individual Level of Analysis:

This level focuses on the following aspects:

➢ Leadership behaviour and its link with motivation.

Level 2 – Group Level of Analysis:

This level focuses on the following aspects:

Level 3 – Organization Level Analysis:

This level focuses on the following aspects:

➢ Stewardship & Servant leadership.

LEADERSHIP THEORY PARADIGMS:

A leadership paradigm is a shared mindset that represents a fundamental way of thinking

The following four major classifications (paradigms) of leadership are:

1 THE TRAIT THEORY PARADIGM

2 THE BEHAVIORAL LEADERSHIP THEORY PARADIGM

3 THE CONTINGENCY LEADERSHIP THEORY PARADIGM

4 THE INTEGRATIVE LEADERSHIP THEORY PARADIGM

From “Management” to the “Leadership” theory paradigm – “MANAGEMENT /

Meaning Leadership is a skill of Management is an art of systematically

Basis Trust Control

Emphasis on Inspiring People Managing activities

Power Influence Rule

Focus on Encouraging change Bringing stability

Strategy Proactive Reactive

Formulation of Principles and guidelines Policies and Procedures

Perspective Leadership requires good Management has a short range perspective.

Leader versus Manager

Basis Manager Leader

A person becomes a manager by A person becomes a leader on basis of

A manager performs all five Leader influences people to work

A leader is required to create cordial

Stability It is more stable. Leadership is temporary.

Manager is accountable for self and

People follow manager by virtue of People follow them on voluntary