Part 1.

LEADERSHIP COMPENTENCIES

Introduction

Leadership behaviors as well as skills which contribute to superior

performance are known as the leadership competencies. The organizations
can assist in the identification and development of the leaders of the next
generation by the adoption of an approach to leadership that is competency
based. Researchers from around the world have identified certain essential
competencies for leadership. Apart from these, the future strategies and trends
of the business also needs to drive the development of leadership
competencies that are new. Even though some of the leadership competencies
are vital for every organization, a firm needs to define the attributes of
leadership which are distinctive to a particular firm for the creation of
competitive advantage.

The top level leaders, aspiring managers and managers are all
concerned with the development of the competencies that are required to help
them in becoming more effective leaders. Over 100 years of research on
leadership have identified and outlined the successful abilities and skills which
are associated with the effectiveness of leadership.

Better leadership is promoted by focusing on skill development and

leadership competencies. However, the skills that are required for a certain
position might change as it is dependent on the specific level of leadership in
that organization.

When the HR professionals select and develop leaders, they need to

give consideration to the competencies that are possessed by the individual
and then compare them with the competencies that are required for further
development to be able to achieve success in the role of leadership. Thus, by
looking at the current capabilities of the person and comparing them to the skills
and competencies that are essential for the position of leadership, the
organizations will be able to make decisions in the hiring, development and
promotion of leaders in a better way. Some of the top leadership competencies
and the way in which they can be developed are given below.

1. Social Intelligence (SI)

Social Intelligence is among the best predictors as far as effective

leadership is concerned. However, the research on it is poor and it is
also not very well-understood. Social intelligence is very wide but it can
be viewed best with respect to the understanding of social situations as
well as dynamics and the ability to be able to operate in an efficient way
in a number of social situations. As per the research conducted social
intelligence, which is described as the sensitivity to social situations,
“constellation of social performance” and skills of role playing are very
crucial for effective leadership.

To develop social intelligence, one needs to expose himself to

different types of people, different kinds of social situations along with
the work for the development of social perceptiveness and also the
ability of engaging other people in a conversation.

2. Interpersonal Skills

Interpersonal skills might be viewed as a “subset of social

intelligence”. However, they form an aspect of social effectiveness that
is more relationship-oriented. The soft skills of leadership that is often
spoken about are represented in the best way by the interpersonal skills.

For the development of interpersonal skills, first of all one needs

to become an active listener, then he/she needs to work on speaking
and conversational skills. One can even join networking groups and
toastmasters for this purpose and also work on the personal
relationships that he/she shares with his/her relatives, friends or with the
 significant other. Such types of skills generalize to relationships in the
workplace.

3. Emotional Intelligence / Skills (EI)

Emotional intelligence is a complement to social intelligence and

is the ability of the individual to be able to communicate at a level that is
emotional, be able to have an understanding of emotional situations and
emotions and also stay in tune with emotions that are our own. These
are related especially to the leadership “charisma”.

For developing emotional intelligence one needs to practice

reading the nonverbal cues of others especially the cues that are related
to emotions. One can need to learn to have a control over his/her
emotions as well as his/her emotional outbursts. A person needs to
practice the way to express his/her feelings and become an “actor” who
is emotionally very effective and learn the way to express his/her
emotions in an appropriate way.

4. Prudence

It is among the cardinal virtues of Aristotle. It is a synonym of

wisdom and is the ability of being able to understand the perspectives of
others by being open and considering the viewpoint of the others.

For the purpose of developing prudence, a person needs to listen

to others. He/She has to work towards being more broad minded and
also more open minded. He/She has to learn to ask for the views and
opinions of others and take them into consideration when choosing a
particular course of action.
5. Courage

Fortitude or courage is another cardinal virtue. This includes the

courage of taking calculated risks along with the courage of standing up
for what you believe in and doing the things that are right.

Some degree of effort is required for this. However, its roots lie in
the development as well as the holding of personal values that are
strong. In case you value someone or something very truly, you will
possess the courage of standing up by your principles as well as by your
people.

6. Conflict Management

This is an interpersonal skill of a “higher order” which helps

assisting your colleagues for either avoiding or resolving the conflicts of
interpersonal nature. When the members of an organization are in
conflict with each other, the leaders are generally called upon for the
purpose of adjudicating. However, the ability to either avoid or to resolve
the situations of conflict that are your own are also involved in this.

Courses as well as workshops are available for the purpose of

assisting a person in understanding and learning the strategies of conflict
management. A vital aspect of conflict management is to help the parties
involved in the conflict to compromise (wherein each party should be
having the flexibility of giving up something) or to collaborate (a win-win
outcome).

7. Decision Making

The ability of making good decisions or to lead a process of good

decision making is among the core competencies of the leaders. The
ways of making decisions can be better or worse but the good leader
knows when the decision has to be made, when the peers and
 subordinates have to be consulted and brought into the process of
decision making and when the time is right for taking a step back and
allow others to make decisions.

The best way of honing the skills of decision making is experience

along with the study of the situations where the decisions have gone
wrong or have gone right. It has been seen that people learn more often
from the mistakes that they have committed rather from the success that
they have achieved.

8. Political Skills

It is a fact that all the organizations or groups at their core are full
of politics. In order to move ahead people attempt to gain allies, break
rules and push forward their personal agenda. A leader who is effective
is also a good player politically and has knowledge regarding the rules
that need to be followed for playing the game and is also able to manage
political behavior in order to prevent it from resulting in the dysfunction
of the group or the organization.

In the same way as several of the other leadership competencies

that are highly developed, the political skills are acquired by means of
learning as a result of experience and also the learning that is related to
social dynamics and about people.

9. Influence Skills

Leadership, at its core is all about influencing the behavior of

other people. Therefore, a great leader is someone who is a master of
social influence and has the ability to wield power in a fair and effective
way. You can become all the more influential in the role of leadership if
you have the ability to call on your interpersonal or soft skills.
 Reasoned as well as well-thought out arguments can be made if
one has been trained in debating. Viewing the things from the
perspective of the other person may assist him/her in understanding
what are the things expected by them from a negotiation and this will let
him/her focus on a situation that is win-win.

10. Area Competence / Expertise

Most of the people would put in at the first position in the list,
however, in today’s age, the significance of knowledge in every aspect
of the job is less important than what it used to be earlier. In creative
firms or high-tech industries, the team members might be possessing
knowledge that is more relevant and also more expertise in comparison
to the leaders. Still, it is vital that the expertise in particular situations,
industries or organizations where they are in leadership roles are
developed by the leaders.

Development is a process which is lifelong, similar to all the other

competencies. Leaders who are effective gain their competence and
expertise and attempt to gain as much knowledge as they can regarding
their organization, product and also the members of their team. One
needs to study the organization and also study the competitors of the
organization.

Apart from the above mentioned competencies the leaders should also
possess the competencies of agility, speed, passion and focus in order to be
successful. Such skills however cannot be taught and if an organization
requires as well as supports these competencies as a basis of its success, they
have to be instilled by means of an imbedded system of leadership
development. Success of such a program is dependent on five crucial factors
which include:

• Support that is provided by the Executive Leadership

• Work assignments that are challenging
 • The right people
• Supportive environment of work
• Instead of a course of skills, there should be a Leadership
Development System.

The factor that is the most critical is the unwavering support that can be
provided by the Executive Leadership of the organization. If the development
of the fifth element is championed by the top leadership of the organization, the
leaders produced by the system will make sure that the work environment is
supportive which helps to provide work assignments that are challenging for the
right people. This will also facilitate the process of building the leadership teams
that are strong throughout the organization. Research has also revealed that
the teams that which are produced via an embedded system in an organization
hold the key to the sustained success of the business in the long term.

Contrary to the belief that popularly exists, no white knight is there. This
means that the “right” Chief Executive will not be able to solve all the
organizational problems. Therefore, in reality, the requirements of leadership of
a winning organization which is able to stand the test of time go far beyond the
organization’s Chief Executive. It extends to the leadership team along with the
procedures, structures and systems that are put in place by them. Over a period
of time, it is the organizational systems as well as the broad leadership of an
organization that are crucial particularly in the periods that involve high levels
of expectations and stress.

In an article posted by Darlene dela Rosa on June 19, 2019, she

mentioned that OnPoint conducted a study of hundreds of managers that
analyzed those who were rated as “exceptional” and identified the specific
behaviors and skills they had which the “average” or “below average” managers
lacked. She emphasized the top five leaders must-have leadership
characteristics which she expounds below.
1. An Ability to Grow & Adapt

Data from the study suggests that exceptional managers at all

levels don’t necessarily start out that way. In fact, the ability to continue
to learn and develop competence is a characteristic that often sets
exceptional leaders apart from their counterparts that hit a “performance
plateau” earlier in their careers.

In the survey, the percentage of managers who were rated as

exceptional peaked among managers who had five to ten years or more
of tenure in their role—these two groups accounted for a combined fifty
percent of all managers rated as exceptional. Meanwhile, only 33
percent of the total managers rated as average were among this tenure
group.

Of all the managers rated as being exceptional, only five percent

had a year or less of tenure in their role. Basically, the longer a manager
was in their role, the more likely they were to be rated as exceptional.
However, the number of managers who had five or more years of tenure
that were rated as “average” or worse revealed that experience alone
didn’t guarantee an improvement in performance. The most effective
leaders were those who could learn from their experiences to grow and
adapt to their roles.

2. Action Orientation

Action orientation is the ability to maintain a sense of urgency to

complete a task and acting decisively to implement solutions and resolve
crises.

Many of the leaders across all levels of management in the

organizations surveyed displayed this competency—helping them and
their teams complete tasks and meet goals in a timely manner. In all
three levels of management, this leadership competency was rated as
 either the first or second highest-rated of the 46 different competencies
investigated in the study.

3. Building Teams

Team building consists of many separate (but closely related)

skills in one core competency, including the leader’s ability to:
 Increase mutual trust.
 Encourage cooperation, coordination, and identification with the work
unit.
 Encourage information sharing among individuals.
 Include others in processes and decisions.

Effective leaders are able to perform all of the above tasks,

helping create teams that work well together to meet both short-term and
strategic goals.

4. Building Trust & Personal Accountability

Building trust and demonstrating personal accountability involves

the leader keeping promises and honoring commitments, accepting
responsibility for their own actions, being honest and truthful when
communicating information, and assuming responsibility for dealing with
problems, crises, or issues when they arise.

5. Critical & Analytical Thinking

Critical and analytical thinking involves the leader’s ability to

maintain an objective view of situations by:
• Questioning basic assumptions.
• Applying sound reasoning.
• Understanding the complexity of an issue and breaking it
down into manageable pieces.
 • Understanding the implications of data/information.

Leaders who are able to use critical thinking skills can objectively
assess situations and make impartial, well-reasoned decisions. The trait
ranks highly for all manager types, placing in the top ten competencies
for each.

References

https://www.educba.com/how-to-develop-leadership-competencies/ (Riggio
Ronald E. 2014. The Practice of Leadership: Developing the Next Generation
of Leaders)

https://www.onpointconsultingllc.com/blog/the-top-5-must-have-leadership-
competencies

McCauley, C. (2006). Developmental assignments: Creating learning

experiences without changing jobs. Greensboro, N.C.: Center for
Creative Leadership Press

https://hbr.org/2016/03/the-most-important-leadership-competencies-
according-to-leaders-around-the-world
Part 2. LEADERSHIP AND ORGANIZATIONAL BEHAVIOR

Introduction

Organizational Behavior (OB) is the study and application of knowledge

about how people, individuals, and groups act in organizations. It does this by
taking a system approach. That is, it interprets people-organization
relationships in terms of the whole person, whole group, whole organization,
and whole social system. Its purpose is to build better relationships by achieving
human objectives, organizational objectives, and social objectives.

Organizational Behavior (OB) can be further defined as the

understanding, prediction and management of human behavior both
individually or in a group that occur within an organization.

Internal and external perspectives are the two theories of how

organizational behavior can be viewed from an organization’s point of view.

Importance of Organizational Behavior

While working in an organization, it is very important to understand

others behavior as well as make others understand ours. In order to maintain a
healthy working environment, we need to adapt to the environment and
understand the goals we need to achieve. This can be done easily if we
understand the importance of OB.
The following points bring out the importance of Organizational Behavior.

 It helps in explaining the interpersonal relationships employees share

with each other as well as with their higher and lower subordinates.
 The prediction of individual behavior can be explained.
 It balances the cordial relationship in an enterprise by maintaining
effective communication.
  It assists in marketing.
 It helps managers to encourage their subordinates.
 Any change within the organization can be made easier.
 It helps in predicting human behavior & their application to achieve
organizational goals.
 It helps in making the organization more effective.

Thus studying organizational behavior helps in recognizing the patterns

of human behavior and in turn throw light on how these patterns profoundly
influence the performance of an organization.

Determinants of Organizational Behavior

There are three major factors that affect Organizational Behavior. The
working environment being the base for all three factors, they are also known
as the determinants of Organizational Behavior. The three determinants are:

a. People

An organization consists of people with different traits,

personality, skills, qualities, interests, background, beliefs, values and
intelligence. In order to maintain a healthy environment, all the
employees should be treated equally and be judged according to their
work and other aspects that affects the firm.

b. Organizational Structure

Structure is the layout design of an organization. It is the

construction and arrangement of relationships, strategies according to
the organizational goal.
 c. Technology

Technology can be defined as the implementation of scientific

knowledge for practical usage. It also provides the resources required
by the people that affect their work and task performance in the right
direction.

Concepts of Organizational Behavior

The concept of Organizational Behavior is based on two key elements

namely, nature of people and nature of the organization.

a. Nature of People

In simple words, nature of people is the basic qualities of a

person, or the character that personifies an individual they can be similar
or unique. Talking at the organizational level, some major factors
affecting the nature of people have been highlighted. They are:

1. Individual Difference − It is the managerial approach towards each

employee individually, that is one-on-one approach and not the
statistical approach, that is, avoidance of single rule. Example−
Manager should not be biased towards any particular employee
rather should treat them equally and try not to judge anyone on any
other factor apart from their work.

2. Perception − It is a unique ability to observe, listen and conclude

something. It is believing in our senses. In short, the way we interpret
things and have our point of view is our perception. Example − Aman
thinks late night parties spoil youth while Anamika thinks late night
parties are a way of making new friends. Here we see both Aman
and Anamika have different perception about the same thing.
3. A whole person − Skill comes from background and knowledge. Our
personal life cannot be totally separated from our work life, just like
emotional conditions are not separable from physical conditions. So,
people function is the functioning of a total human being not a specific
feature of human being.

4. Motivated behavior − It is the behavior implanted or caused by some

motivation from some person, group or even a situation. In an
organization, we can see two different types of motivated employees:

a. Positive motivation − Encouraging others to change their behavior

or say complete a task by luring them with promotions or any
other profits. Example − “If you complete this, you will gain this.”

b. Negative motivation − Forcing or warning others to change their

behavior else there can be serious consequences. Example − “If
you don’t complete this, you will be deprived from the office.”

5. Value of person − Employees want to be valued and appreciated for

their skills and abilities followed by opportunities which help them
develop themselves.

b. Nature of Organization

Nature of organization states the motive of the firm. It is the

opportunities it provides in the global market. It also defines the
employees’ standard; in short, it defines the character of the company
by acting as a mirror reflection of the company. We can understand the
nature of any firm with its social system, the mutual interest it shares and
the work ethics.
 These factors are as follows:

1. Social system − Every organization socializes with other firms, their

customers, or simply the outer world, and all of its employees - their own
social roles and status. Their behavior is mainly influenced by their group
as well as individual drives. Social system are of two types namely −

a. Formal − Groups formed by people working together in a firm or

people that belong to the same club is considered as formal social
system. Example − A success party after getting a project.

b. Informal − A group of friends, people socializing with others freely,

enjoying, partying or chilling. Example − Birthday party.

2. Mutual interest − Every organization needs people and people need

organizations to survive and prosper. Basically it’s a mutual
understanding between the organization and the employees that helps
both reach their respective objectives. Example − We deposit our money
in the bank, in return the bank gives us loan, interest, etc.

3. Ethics − They are the moral principles of an individual, group, and

organization. In order to attract and keep valuable employees, ethical
treatment is necessary and some moral standards need to be set. In fact,
companies are now establishing code of ethics training reward for
notable ethical behavior.

Scope of Organizational Behavior

In a very broad sense, the scope of OB is the extent to which it can

govern or influence the operations of an organization. The scope of OB
integrates 3 concepts respectively.
 1. Individual Behavior

It is the study of individual’s personality, learning, attitudes,

motivation, and job satisfaction. In this study, we interact with others in order
to study about them and make our perception about them.

2. Inter-individual Behavior

It is the study conducted through communication between the

employees among themselves as well as their subordinates, understanding
people’s leadership qualities, group dynamics, group conflicts, power and
politics.

3. Group Behavior

Group behavior studies the formation of organization, structure of

organization and effectiveness of organization. The group efforts made
towards the achievement of organization’s goal is group behavior. In short,
it is the way how a group behaves.

Models of Organizational Behavior

Organizational behavior reflects the behavior of the people and

management all together, it is considered as field study not just a discipline. A
discipline is an accepted science that is based upon theoretical foundation,
whereas OB is an inter-disciplinary approach where knowledge from different
disciplines like psychology, sociology, anthropology, etc. are included. It is used
to solve organizational problems, especially those related to human beings.
 There are four different types of models in Organizational Behavior.

1. Autocratic Model

The root level of this model is power with a managerial orientation of

authority. The employees in this model are oriented towards obedience and
discipline. They are dependent on their boss. The employee requirement
that is met is subsistence. The performance result is less.

The major drawbacks of this model are people are easily frustrated,
insecurity, dependency on the superiors, minimum performance because of
minimum wage.

2. Custodial Model

The root level of this model is economic resources with a managerial

orientation of money. The employees in this model are oriented towards
security and benefits provided to them. They are dependent on the
organization. The employee requirement that is met is security.

This model is adapted by firms having high resources as the name

suggest. It is dependent on economic resources. This approach directs to
depend on firm rather than on manager or boss. They give passive
cooperation as they are satisfied but not strongly encouraged.

3. Supportive Model

The root level of this model is leadership with a managerial

orientation of support. The employees in this model are oriented towards
their job performance and participation. The employee requirement that is
met is status and recognition. The performance result is awakened drives.

This model is dependent on leadership strive. It gives a climate to

help employees grow and accomplish the job in the interest of the
 organization. Management job is to assist the employee’s job performance.
Employees feel a sense of participation.

4. Collegial Model

The root level of this model is partnership with a managerial

orientation of teamwork. The employees in this model are oriented towards
responsible behavior and self-discipline. The employee requirement that is
met is self-actualization. The performance result is moderate zeal.

This is an extension of supportive model. The team work approach is

adapted for this model. Self-discipline is maintained. Workers feel an
obligation to uphold quality standard for the better image of the company. A
sense of “accept” and “respect” is seen.

Theory X and Theory Y in Organizational Behavior

Our management style is firmly influenced by our beliefs and

assumptions about what encourages members of our team like: If we believe
that our team members dislike work, then we tend towards an authoritarian style
of management. However, if we assume that employees take pride in doing a
good job, we tend to adopt a more participative style.
Douglas McGregor, the eminent social psychologist, divides management style
into two contrasting theories − Theory X and Theory Y

Theory X

This theory believes that employees are naturally unmotivated and

dislike working, and this encourages an authoritarian style of management.
According to this theory, management must firmly intervene to get things done.
This style of management concludes that workers:
 Disfavor working.
  Abstain responsibility and the need to be directed.
 Need to be controlled, forced, and warned to deliver what's needed.
 Demand to be supervised at each and every step, with controls put in
place.
 Require to be attracted to produce results, else they have no ambition or
incentive to work.

McGregor observed that X-type workers are in fact mostly in minority,

and yet in mass organizations, such as large scale production environment, X
Theory management may be needed and can be unavoidable.

Theory Y

This theory explains a participative style of management, that is,

distributive in nature. It concludes that employees are happy to work, are self-
motivated and creative, and enjoy working with greater responsibility. It
estimates that workers:
 Take responsibility willingly and are encouraged to fulfill the goals they
are given.
 Explore and accept responsibility and do not need much guidance.
 Assume work as a natural part of life and solve work issues
imaginatively.

In Y-type organizations, people at lower levels are engaged in decision

making and have more responsibility.

Comparing Theory X & Theory Y

1. Motivation

Theory X considers that people dislike work, they want to avoid it and
do not take responsibilities willingly. While, Theory Y considers that people
are self-motivated, and sportingly take responsibilities.
2. Management Style and Control

In Theory X-type organization, management is authoritarian, and

centralized control is maintained. While in Theory Y-type organization, the
management style is participative, employees are involved decision making,
but the power retains to implement decisions.

3. Work Organization

Theory X employees are specialized and the same work cycle continues.
In Theory Y, the work tends to be coordinated around wider areas of skill
or knowledge. Employees are also motivated to develop expertise, and
make suggestions and improvements.

4. Rewards and Appraisals

Theory X-type organizations work on a ‘carrot and stick’ basis, and

performance assessment is part of the overall mechanism of control and
compensation. Coming to Theory Y-type organizations, appraisal is also
regular and crucial, but is usually a separate mechanism from organizational
controls. Theory Y-type organizations provide employees frequent
opportunities for promotion.

5. Application

Admitting the fact that Theory X management style is widely

accepted as inferior to others, it has its place in large scale production
procedure and unskilled production-line work. Many of the principles of
Theory Y are widely accepted by different types of organization that value
and motivate active participation. Theory Y-style management is
appropriate for knowledge work and licensed services. Licensed service
organizations naturally develop Theory Y-type practices by the nature of
their work, even high structure knowledge framework, like call center
 operations, benefit from its principles to motivate knowledge sharing and
continuous improvement.

Leadership and Organizational Behavior

Leadership can be defined as the ability of the management to make

sound decisions and inspire others to perform well. It is the process of directing
the behavior of others towards achieving a common goal. In short, leadership
is getting things done through others.

Leadership is very important in a firm as it leads to higher performance

by the team members, it improves motivation and morale within the members,
and helps to respond to change. Leadership facilitates organizational success
by creating responsibility and accountability among the members of the
organization. In short, it increases value in an organization.

Leader Vs Manager

A leader is someone whom people follow or someone who guides or

directs others. A manager is someone who is responsible for directing and
controlling the work and staff in an organization, or of a department within it.

The main difference between the two is that a leader works by example,
while a manager dictates expectations. If a manager goes against the rules,
that will tarnish his position as a manager. If a leader goes against the example
he or she is trying to set, that will be seen as a setback. Following are a few
subtle differences between the two
 A leader is an innovator and creator whereas a manager is a
commander.
 A leader can’t be a manager but the opposite is possible, a manager is
more than a leader.
  A leader does what is right, while the manager makes things right.
 A leader deals with change whereas a manager plans for a change.
 A leader gives direction to do something whereas the manager plans for
everything that is to be done.
 A leader encourages people whereas the manager controls people.
 A leader handles communication, credibility, and empowerment
whereas a manager deals with organizing and staffing.

Leadership Styles

Different leadership styles exist in work environments. The culture and

goal of an organization determine which leadership style fits best. Some
organizations offer different leadership styles within an organization, depending
on the necessary tasks to complete and departmental needs.

There are five different leadership styles in the corporate world as

follows:

1. Laissez-Faire

A laissez-faire leader does not directly supervise employees and fails

to provide regular updates to those under his supervision. Highly
experienced and trained employees with minimal requirement of
supervision fall under the laissez-faire leadership style.

But, not all employees possess these features. This leadership style
blocks the production of employees needing supervision. The laissez-faire
style implements no leadership or supervision efforts from managers, which
can lead to poor production, lack of control and increasing costs.
2. Autocratic

The autocratic leadership style permits managers to make decisions

alone without the input of others. Managers access total authority and
impose their will on employees. No one opposes the decisions of autocratic
leaders. Countries like Cuba and North Korea operate under the autocratic
leadership style.

This leadership style benefits those who require direct supervision.

Creative employees who participate in group functions detest this
leadership style.

3. Participative

This is also known as the democratic leadership style. It values the

input of team members and peers, but the responsibility of making the final
decision rests with the participative leader. Participative leadership
motivates employee morale because employees make contributions to the
decision-making process. It accounts to a feeling that their opinions matter.

When an organization needs to make changes within itself, that is

internally, the participative leadership style helps employees accept
changes easily as they play a role in the process. This leadership style
meets challenges when companies need to make a decision in a short
period of time.

4. Transactional

Transactional leadership style is formed by the concept of reward and

punishment. Transactional leaders believe that the employee's performance
is completely dependent on these two factors. When there is an
encouragement, the workers put in their best effort and the bonus is in
monetary terms in most of the cases. In case they fail to achieve the set
target they are given a negative appraisal. Transactional leaders pay more
attention to physical and security requirements of the employees.

5. Transformational

Transformational leadership has the ability to affect employee's

perceptions through the returns that organization gets in the form of human
capital benefits. These leaders have the ability to reap higher benefits by
introducing knowledge management processes, encouraging interpersonal
communication among employees and creating healthy organizational
culture.

It helps in flourishing organizational innovation by creating a

participative environment or culture. It promotes a culture where the
employees have autonomy to speak about their experiences and share
knowledge.

It has been seen that transformational leaders are more innovative

than transactional and laisse-faire leaders.

6. Traditional Theory

Traditional theory is a theory based on different traits of a human

beings. It assumes that leaders are born and not made. According to this
theory, leadership behavior is the sum total of all traits that a leader possess.

Thus this theory gives the profile of a successful and complete

leader. According to this theory, there are five human traits. They are −
• Physical trait − it includes energy, activity, appearance, and
height.
• Ability trait − it includes judgement, knowledge, and fluency in
speech.
• Personal trait − it includes self-confidence, creativity, and
enthusiasm.
 • Work trait − it includes organization and achievement.
• Social trait − it includes interpersonal skill, cooperativeness,
popularity and prestige.

References

https://www.tutorialspoint.com/organizational_behavior/organizational_behavi
or_leadership.htm

http://www.nwlink.com/~donclark/leader/leadob.html
Part 3. LEADERSHIP AND MOTIVATION

Introduction

Every organization, like every team requires leadership. Leadership

allows managers to affect employee behavior in the organization. Thus,
motivated employees are one of the most important results of effective
leadership. According to (Abbas & Asgar 2010:9), successful managers are
also successful leaders because they influence employees to help accomplish
organizational goals.

Achieving organizational goals, however, is not enough to keep

employees motivated but helping employees accomplish their own personal
and career goals is an important part of their motivation. Leadership and
motivation are interactive. Leadership effectiveness is critically contingent on,
and often defined in terms of leaders’ ability to motivate followers toward
collective goals or a collective mission or vision (Shamir, Zakay, Breinin, &
Popper 1998:390). The more motivated the supporters, the more effective the
leader; the more effective the leader, the more motivated the followers.

Leadership is a ‘’social influence process that is necessary for the

attainment of societal and organizational goals; it is both conspicuous in its
absence and mysterious in its presence – familiar and yet hard to’’ (Faeth
2010:2). Leaders understand that they have power and that they understand
the source of their power: their position; their ability to reward and to coerce;
their expertise; and their personal appeal and charisma. They influence their
followers’ behavior through communication, group dynamics, training, rewards
and discipline.

According to Watkiss (2004), motivation is the way to drive person into

doing something. Much of the driven are the thought of a potential reward, or a
consequence of not doing something. Motivation is the forces the people do
something: this is a result of the individual needs being satisfied (or met) so that
individual has the inspiration to complete the task. Motivation refers to the
initiation, direction, intensity and persistence of human behaviour.

Based on the definition of Watkiss (2004), it can be concluded that the

motivation is the idea and initiative to encourage and drive the individual to do
something or to perform better jobs. Ormrod (2003) stated that the main reason
of existence for organizations is not merely to survive, but also to gain profit
and the companies enable to competitive weather in locally or globally.

In order to achieve these missions, companies have to satisfy the

employees who are considered as a cornerstone in many companies. Thus, the
employees would have a high morale, self-esteem and also feel comfortable
toward the place where they work in. However, it is hard to argue that a
motivated workplace means that the organizations would get high performance,
or maybe would increase revenue. However, managers are necessary to take
actions in order to satisfy employees and thereby, it is supposed to increase
the employee’s motivation. After increasing motivations, the employees will
work harder and feel that they are responsible to achieve all targets and goals
that ordered by supervisors. In other words, employees would feel that the
organization belongs to them.

Motivation

Motivation is a fundamental instrument for regulating the work behavior

of employees (Olusola 2011). The motivation to work, whether intrinsic or
extrinsic, is critical in the lives of employees because it forms the essential
reason for working in life (Ololube 2006). Intrinsic motivation is regulated by
personal enjoyment, interest or pleasure (Lai 2011) and it involves the
performance of an activity for the inherent satisfaction of an activity. Extrinsic
motivation refers to doing something because it is inherently stimulating or
enjoyable (Ryan & Deci 2000). Balhaji (2008:3) identifies the following
characteristics of motivation:
 • Motivation is based on human needs and is generated within
an individual;
• Motivation is whole, not piece-meal. Thus, an individual
cannot be motivated by fulfilling certain of his/her needs
partially;
• Motivation is a continuous process; as soon as one need is
satisfied, new ones arise;
• Motivation causes goal directed behavior; a person behaves
in such a way that he or she can satisfy his or her goals or
needs; and
• Motivation is a complex process: there is no universal theory
or approach to motivation and individuals differ in what
motivates them.

Thus, a manager has to understand a diversity of needs and has to use

a variety of rewards to motivate them. Consequently, successful organizations
use positive strategies to motivate their employees to be able to compete in the
market. It is indeed against this observation that Manzoor (2011) reveals that if
employees of an organization are not motivated to perform their duties, no
organization can progress or achieve success.

If people are asked what they want from their work, they will respond
with many generalizations. Studies performed on this basis show that people
like the following aspects of their work, ranked in order of preference:
1. Achievement, a sense of being able to see something tangible derived
from their effort, such as a well-organized collection or a new physical
facility.
2. Recognition or appreciation from their supervisors or colleagues.
3. The work itself. A person who enjoys meeting people, for example, will
have a greater interest in public service work than one who does not.
4. Increased responsibility, such as enlarging the job to reflect the
individual's capabilities.
5. Advancement or promotion within the organization.
6. Opportunity to learn new things, or growth.
 These same studies have also revealed the things people do not like
about their jobs:

1. Restrictive policies or a restrictive administration. For example, if a

librarian in public services finds that he is prevented from extending
certain services or resources to patrons, he will become increasingly
frustrated with his job.
2. Poor supervision. The manager who is unsupportive or incompetent is
going to make life miserable for subordinates.
3. Poor interpersonal relationships. Unless an employee likes the people
he works with, the job will clearly become undesirable.
4. Poor working conditions. If the environment is noisy, the lighting poor, or
the temperature uncomfortable, these factors will obviously affect the
way employees feel about their job.
5. Poor salary. Strange as it may seem, this is not the number one
complaint. Salary is still important, but in the sense that an employee's
belief that he is poorly paid can seriously affect his job performance.
6. Low status and lack of security.

From these results it is obvious that what makes people happiest and
motivates them in their job is what they do. What makes them unhappiest is the
situation in which they do it.

References:

Almansour, Yaser Mansour, The Relationship Between Leadership Styles and

Motivation of Managers Conceptual Framework. Journal of Arts, Science
& Commerce, Vol.– III, Issue –1,Jan. 2012 [161]

Idah Naile and Jacob M Selesho. March 2014. The Role of Leadership in
Employee Motivation. Mediterranean Journal of Social Sciences, Vol 5
No 3. ISSN 2039-9340