Principle of Management

Leadership

An effective manager is one who has ability to effectively lead his people
towards the accomplishment of organizational goals.
Leadership is the ability to influence a group toward the achievement of goals.
The main theme of leadership is follower ship.
It is the willingness of people to follow that makes a person leader.
Leaders must have a good number of followers. Leadership is follower ship.

 Leadership is the ability to influence people’s behaviors so that they will

work willingly toward the achievement of group goals.
 Leader provides direction towards goal accomplishment.
 Leadership involves other people- employees or followers.
 People tend to follow those whom they see as providing a means of
achieving their own needs and wants.

Ingredients of leadership
Leadership has some basic ingredients. Among the important these are:
1. The ability to use power effectively and in a responsible manner,
2. The ability to comprehend that human beings have different motivation
forces at different times and in different situations.
3. The ability to inspire,
4. The ability to act in a manner that will develop a climate conducive to
responding to and arousing motivation.

Qualities of a leader
1. Time consciousness : An implementation of a decision, depends on
specific time. A leader should utilities his/her time properly.

2. Flexible attitude .
3. Mentality of taking responsibility .
4. Ability to understand others.
5. Ability to take decision
6. Communication skill.
 7. Ability to control emotion: A successful leader must control his emotion
over logical and real fact.
8. Education and experience : A leader should have enough educational
ability and experience such ability and experiences are can increase the
personality of the leader to subordinates
9. Organizational knowledge: A successful leader should be a good
organizational knowledge
10. Honesty and sincerity : A leader must be honest and sincere to his work.
Deviations of work lead man to the pinnacle of glory.

11. Personality :A leader should have attractive and strong personality.

12. Patience : patience is an important part of a good leader. In an odd

situation a leader can not lead without patience.

13. Energy & ability : A successive leader never be self-centered. A leader

must have physical and mental abilities.

14. Courage and determinate : A leader without courage and determinate can
not lead the right things.

Leaders and Managers: A Comparison

Experts argue that leadership and management are different. Abraham Zaleznik
(1986) argues that leaders are different from managers and they are very
different kind of people. They differ in motivation, personal history and how thy
think and act.
1. Managers tend to take impersonal attitudes toward goals, whereas leaders
take a personal and active attitude towards goals.
2. Managers tend to take moderate risk and establish strategies and make
decisions. Leaders work from high-risk positions.
3. Managers are appointed to their positions. Their ability to influence
employees is base don the formal authority inherent in that position.
4. Leaders are appointed or merge from within a work group and are able to
influence others for reasons beyond formal authority.
5. Managers prefer to work with people; they avoid solitary activity because
it makes them anxious. Leaders, who are concerned with ideas, relate to
people in more intuitive and emphatic ways.
 6. John Kotter (1990), in his article “What leaders really do” published in
HBR, also tries to distinguish between a leader and a manager. He argues
that management is about coping with complexity.
7. Good management brings about order and consistency by formulating
plans, designing organization structure and monitoring results against
the plans.
8. Leadership, in contrast, is coping with change. Leaders establish vision of
the future and articulate this vision and inspire people to overcome
hurdles.
9. Managers use the authority inherent in their designated formal rank to
obtain compliance from organizational members.

 Motivational skills are a critical component of leading whereas the focus

of management is planning and directing (Stoner, 1996).
 Kotter believes that organizations need both strong leadership and
organization.

 All managers should be leaders. But not all leaders have the skills of
effective managers and thus, all leaders should be managers.
 An individual can influence others does not means that he can also plan,
organize and control.
 Leader is someone who can influence others and who has managerial
authority.

Theories of leadership
 Leaders are born, not made.
 Examples are Thatcher, Nelson Mandela, Clinton. Martin Luther King.
 Leaders share certain inborn personality traits- physical, mental and
personality.
 Main traits are drive, self-confidence, honesty, integrity, ambition,
interpersonal skill and willingness to cooperate.

Main limitations are:

1. No universal traits that predict leadership in all situations.
2. It is unclear in separating cause from effect. For example, does self
confidence create leadership, or does success as a leader build self
confidence?
Leaders are made, not born.
 Leaders are made, not born. It is possible to acquire leadership qualities
by training and education. We could teach leadership, we could design
programs that implanted behavioral patterns in individuals who desired
to be effective leaders.
Styles based on use of authority.
A leader has different sources of power. The use of power differs due to
types of style. There are mainly three styles:
I. Autocratic,
II. Democratic and
III. Free--rein..

 Autocratic leadership. This type of leadership is based on the use of

acrcive power .an autocratic leader gives orders and expects compliance .

 Democratic leadership: this type of leadership that uses legal power can
be called democratic leadership. A democratic leader usually consult
with subordinates on proposed actions and decision perticipition from
them.

 Free rain leadership : the leadership style with allows maximum

freedom to followers may be called freedom leadership . a freedom
leadership gives workers a high degree of independence in their
operations

Ohio state Studies

 Researchers tried to study the effectiveness of two types of leadership

behaviors what they called initiating structure (task oriented) and
consideration (employee oriented).

 The leaders who were rated low in consideration and high in initiating
structure had high grievance and turnover rates among their employees.

 A leader with high initiating structure clearly defines and structures his
roles and those of his subordinates in order to attain organizational goals.
  A leader high in consideration is one who has strong confidence in
subordinates, respect for subordinates’ ideas and regard for their feelings.
He is friendly and approachable and treats all subordinates as equals.

Michigan University Studies

 Researchers at the University of Michigan distinguished between
production-centered and employee centered managers.
 Production-centered managers set rigid work standards, clarified task and
roles of employees, prescribed work methods to be followed, and closely
supervised employees’ works.
 Employee-centered managers encouraged employee participation in goal
setting and other work decisions and helped ensure high performance by
inspiring trust and respect. Managers with an employee oriented style put
more emphasis on motivating rather than controlling subordinates. They
seek friendly, trusting and respectful relationships with subordinates.

Managerial Grid
 Black and Mouton developed the managerial grid.
 The grid is based on the leadership dimensions of
i. concern for people and
ii. concern for production.
 The 1,9 leaders are high in concern for people but very low in concern for
production that output is low.
 They are country- club leaders. In 9,1 leaders are highly concern for
production but very low concern for people.
 The 9, 1 leaders tend to be authoritarian bosses.
 A 1,1 leader does not place adequate emphasis on either dimension. He
tends to be a free-rein boss.
 The 5,5 leaders give adequate concern both for people and production.
 The 9,9 leaders give maximum concern both for people and production.

Contingency approach to leadership

 It is based on the belief that leaders are the products of given situations.
 Leadership effectiveness depends on the situation.
 So it is important to isolate the situational conditions.
 This approach recognizes that there is an interaction between the group
and the leader.
  It supports the follower that people tend to follow those whom they
perceive as offering them as a means of accomplishing their own personal
desires.

Fielder’s contingency approach to leadership

Fred Fielder developed one of the contingency models of leadership.
This model proposes that effective group performance depends on the proper
match between leader's style and situation.
He assumed that it is quite difficult for mangers to alter the management styles
that made them successful.
It is assumed that an individual’s leadership style is fixed.
This theory holds that people become leaders not only because of the attributes
of their personalities but also because of various situational factors and the
interactions between leader and group members.

He suggests that the most appropriate leadership style depends on whether the
overall situation is
 favorable,
 unfavorable or
 moderately favorable or moderately unfavorable.
He described three critical dimensions of the leadership situations that help
determine what style of leadership will be most effective:

 Position power.

Some positions, such as the managing director of a bank, carry a great deal of
power and authority. It may be strong or weak. High position power simplifies
the leader’s task of influencing others. If the leader can reward and punish
employees, position power is assumed to be strong.

 Task structure. It is the degree to which the task of the group is well
defined. Task structure may be clear or unclear. Task may be structured or
unstructured.
 A highly structured task is one for which step-by-step procedures or
instructions are available.
 Employees know clearly what they are expected to do. Group member
roles are more ambiguous when tasks are unclear or unstructured.

Leader-member relations.
 It may be good or poor.
 The subordinates may have high or low confidence, trust and respect in
their leader.
 If there is little trust and respect and if leader and members do not like
each other, relations are poor.
 Good relations are more favorable.

Leadership styles.
 Fielder set forth two major types of leadership:
1. Task-oriented and
2. Relationship oriented.
 Task oriented leaders are those who give more emphasis on getting the job
done than employees’ growth or satisfaction. They closely supervise the
employees to be sure that the task is performed satisfactorily.
 Leaders with a relationship oriented put more emphasis on motivating
rather than controlling subordinates. They seek friendly trusting and
respectful relationships with subordinates.
 When leader position power is strong, the task structure is clear and
leader-members relations are good, the situation is favorable for the leader
and the most effective leader will be one who is task-oriented.
 The task-oriented leader will also be most effective in s situation in which
position power is weak, the task structure is unclear and the leader-
member relations are poor.
 Task oriented leader tends to perform better in situations that were very
favorable and in situations that were very unfavorable.

 However, if the situation is only moderately unfavorable or moderately

favorable, the relationship-oriented leader will be most effective. In other
words, relationship-oriented leaders perform best in moderate control
situations.

Matching the leadership style

 Fielder assumes that it is quite difficult for mangers to alter the
management styles that made them successful.
 He believes that most managers are not very flexible. Fielder assumes that
leadership style of a person is fixed.
 So there are two ways to improve the effectiveness of leadership:
1.Changing the leader to fit the situation, and

 For example, if the group situation is highly unfavorable but is led by a

relationship oriented manger, the group’s performance could be improved
by replacing that manager with one who is task oriented.
2.Changing situation to fit the leader. That could be done by restructuring
tasks or increasing or decreasing the power that the leader has to control
factors such as salary increases, promotions.