CHAPTER 15

LEADERSHIP

LEADERSHIP 1
 Introduction
Success of a business concern is
dependent upon the ability of its
leadership. Whenever and in whatever
situation if someone tries to influence the
behavior of another individual, there is a
leadership. It helps to attain the business
goals of an organization.

LEADERSHIP 2
LEADERSHIP 3
 Definition

Leadership is the ability to

awaken in others the
desire to follow a common
objective.

LEADERSHIP 4
 Importance of Leadership
Developing
Perfect
good human
organization
relation
structure

Promoting Reconciliation
the spirit of of goals
coordination

Source of
Directing group motivation
activities

Technological, Fulfilling social

economic Better Avoiding responsibilities
and social utilization of imbalances
changes manpower
LEADERSHIP 5
Approaches or Theories of Leadership
According to this theory, leadership behaviour is
influenced by certain qualities of a person. A
successful leader has the following qualities.
Good Personality
Tirelessness
Ability to take quick decision
Courage to face competitors
Persuasion
Lesson out of experience
Intelligence
Different thinking
Reliability
Physical fitness.
LEADERSHIP 6
Behavioral approach or theory
This theory had popularity during 1950s.
It assumes that people are lazy and
irresponsible by nature. So there is need
of an instrument to give motivation to
workers.
Autocratic, democratic or supervisory
styles are some of the leadership styles.
Behavioral approach developed these
leadership styles which produce different
and conflicting results.
LEADERSHIP 7
Situationalist approach or theory
During 1970s this theory was developed
where some traits and behaviours are
effective in a particular situation and
ineffective in another situation. Situation
helps persons to develop their leadership
qualities and emerge as leaders

LEADERSHIP 8
Follower’s theory or acceptance
theory
Here, only followers decide whether a
person is a leader or not. Followers take
decision on the quality of the leader who
fulfills their needs. Traits and behaviour
are not considered as essential element
of leadership. This is mainly applied in
politics.

LEADERSHIP 9
System theory or a path goal
theory
This is focused on a person’s act
rather than his traits or behaviour. A
leader coordinates the efforts of his
followers. This considers all variables
like leader, followers, situation,
leadership traits, environment goals
and group’s nature, characteristics
and needs, role behaviour of leader. It
is also termed as modern theory of
leadership.
LEADERSHIP 10
 Functions of Leader
Representation Taking Planner
initiative

Communication
Production

Leader
Encouraging Arbitrator
others and
mediator

Rewards and Guide Integration

punishments

LEADERSHIP 11
Qualities of Leadership
Physical appearance and strength
mental vigour
emotional stability
sense of judgment
goodwill
motivation
communication skill
guiding ability
sociability
technical knowledge
LEADERSHIP 12
 Types of Leadership
Autocratic leader
Intellectual leader
Liberal leader
Democratic leader
Institutional leader
Inducing leader
Paternal leader
Creative leader
LEADERSHIP 13
Techniques of Leadership
Securing cooperation
the use of power
coordination
discipline
morale

LEADERSHIP 14
Characteristics of Leadership
There must be followers
working relationship between leader and
followers
personal quality
reciprocal relationship
community of interests
guidance
related to a particular situation
shard function
power relationship
LEADERSHIP 15
 Leadership Styles
Positive style
Negative style
Autocratic or authoritarian style
Democratic style
Free-rein style

LEADERSHIP 16
 Positive style

A leader motivates
followers to work hard by
offering them rewards like
bonus and incentives

LEADERSHIP 17
 Negative style
Leader foresees his followers to
work hard and penalize them if
the work is not upto the standard.
This has high human cost. Here
everyone tries to shift
responsibility over to others.

LEADERSHIP 18
Autocratic or authoritarian style
Advantages:
Leadership style provides strong
motivation to followers.
Quick decision is possible.
less talented followers can perform job
effectively
Followers do not take any decision
Decision making planning need no
initiative
LEADERSHIP 19
 Autocratic or authoritarian style
Disadvantages
Most dislike this style as it takes negative
motivation approach.
frustration, low morale and conflict develop
easily
New ideas and creative ideas have no
scope for application
followers have no opportunity for
development
Suitability: It is suitable to where followers are
uneducated and unskilled.
LEADERSHIP 20
 Democratic style
Advantages
Consultation give satisfaction to the followers
due reorganization is given to the followers
followers are aware of the activities
leader can improve decision making ability
followers get opportunity to show their ability

LEADERSHIP 21
 Democratic style
Disadvantages
Taking decision and implementation
require more time.
Followers can dominate the leader
leader can easily shift the responsibility
to his followers for failure
it requires communicating skill on part of
leaders otherwise it may ruin the
organization
LEADERSHIP 22
 Free-rein style
Advantages
Morale and job satisfied of the followers
are increased to some extent.
 The talent of the followers is properly
utilized.
The followers get full opportunity to
develop their talents.

LEADERSHIP 23
 Free-rein style
Disadvantage
The leader does not care to motivate his
followers.
The contribution of a leader is nothing.
The leader does not support the follower
and no guidance is available to the
fanner.

LEADERSHIP 24