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Motivation
UNIT 16 LEADERSHIP
Structure
16.0 Objectives
16.1 Introduction
16.2 What is Leadership?
16.3 Importance of Managerial Leadership
16.4 Theories of Leadership
16.5 Leadership Styles
16.6 Functions of Leadership
16.7 Motivation and Leadership
16.8 Leadership Effectiveness
16.8.1 Factors Influencing Leadership Effectiveness
16.8.2 Qualities of an Effective Leader
16.9 Let Us Sum Up
16.10 Key Words
16.11 Answers to Check Your Progress
16.12 Terminal Questions
16.0 OBJECTIVES
After studying this unit, you should be able to:
explain the meaning of leadership
describe the importance of managerial leadership
state the theories and different styles of leadership
outline the functions of leadership
analyse the relation between motivation and leadership
explain the meaning of leadership effectiveness and enumerate the qualities
of an effective leader
describe the meaning and significance of morale.
16.1 INTRODUCTION
As you know that management involves getting work done through the people.
By virtue of their position, managers can issue orders and instructions to their
subordinates to get work done. But it is also necessary to ensure that subordinates
put in their maximum effort in performing their tasks. Hence, managers have to
regulate and influence the subordinates behaviour and conduct at work. It is
through the leadership role of managers that employees may be induced to
perform their duties properly and maintain harmony in group activities. A
manager having formal authority can direct and guide his subordinates and
command their obedience by virtue of his positional power. But as a leader, the
manager can influence work behaviour by means of his leadership ability to get
Page 2


Motivation
UNIT 16 LEADERSHIP
Structure
16.0 Objectives
16.1 Introduction
16.2 What is Leadership?
16.3 Importance of Managerial Leadership
16.4 Theories of Leadership
16.5 Leadership Styles
16.6 Functions of Leadership
16.7 Motivation and Leadership
16.8 Leadership Effectiveness
16.8.1 Factors Influencing Leadership Effectiveness
16.8.2 Qualities of an Effective Leader
16.9 Let Us Sum Up
16.10 Key Words
16.11 Answers to Check Your Progress
16.12 Terminal Questions
16.0 OBJECTIVES
After studying this unit, you should be able to:
explain the meaning of leadership
describe the importance of managerial leadership
state the theories and different styles of leadership
outline the functions of leadership
analyse the relation between motivation and leadership
explain the meaning of leadership effectiveness and enumerate the qualities
of an effective leader
describe the meaning and significance of morale.
16.1 INTRODUCTION
As you know that management involves getting work done through the people.
By virtue of their position, managers can issue orders and instructions to their
subordinates to get work done. But it is also necessary to ensure that subordinates
put in their maximum effort in performing their tasks. Hence, managers have to
regulate and influence the subordinates behaviour and conduct at work. It is
through the leadership role of managers that employees may be induced to
perform their duties properly and maintain harmony in group activities. A
manager having formal authority can direct and guide his subordinates and
command their obedience by virtue of his positional power. But as a leader, the
manager can influence work behaviour by means of his leadership ability to get
Communication, Motivation
and Leadership
the cooperation of all members of the group. In this Unit, you will learn the
importance, theories, styles and functions of leadership. You will further learn
about the leadership effectiveness and morale.
16.2 WHAT IS LEADERSHIP?
Leadership may be defined as a process of influencing group activities towards
the achievement of certain goals. Thus, the leader is a person in a group who is
capable of influencing the group to work willingly. He guides and directs other
people and provides purpose and direction to their efforts. The leader is a part of
the group that he leads, but he is distinct from the rest of the group. As defined
by George R. Terry “Leadership is the activity of influencing people to strive
willingly for group objectives”.
Leadership naturally implies the existence of a leader and followers as well as
their mutual interaction. It involves inter-personal relation, which sustains the
followers accepting the leader’s guidance for accomplishment of specified goals.
Managers have to guide and lead their subordinates towards the achievement of
group goals. Therefore, a manager can be more effective if he is a good leader.
He does not depend only on his positional power or formal authority to secure
group performance but exercises leadership influence for the purpose. As a leader
he influences the conduct and behaviour of the members of the work team in the
interest of the organisation as well as the individual subordinates and the group
as a whole. But leadership and management are not the same thing. Management
involves planning, organising, coordinating and controlling operations in
achieving various organisational goals. Leadership is the process which
influences the people and inspires them to willingly accomplish the organisational
objectives. Thus, a manager is more than a leader. On the other hand, a leader
need not necessarily be a manager. For instance, in an informal group, the leader
may influence the conduct of his fellow members but he may not be a manager.
His leadership position is due to the acceptance of his role by his followers. But,
the manager, acting as a leader, has powers delegated to him by his superiors.
His leadership is an accompaniment of his position as a manager having an
organised group of subordinates under his authority. Thus, managerial leadership
has the following characteristics:
i) It is a continuous process whereby the manager influences, guides and directs
the behaviours of subordinates.
ii) The manager-leader is able to influence his subordinates behaviour at work
due to the quality of his own behaviour as leader.
iii) The purpose of managerial leadership is to get willing cooperation of the
work group in the achievement of specified goals.
iv) The success of a manager as leader depends on the acceptance of his
leadership by the subordinates.
v) Managerial leadership requires that while group goals are pursued,
individual goals are also achieved.
Page 3


Motivation
UNIT 16 LEADERSHIP
Structure
16.0 Objectives
16.1 Introduction
16.2 What is Leadership?
16.3 Importance of Managerial Leadership
16.4 Theories of Leadership
16.5 Leadership Styles
16.6 Functions of Leadership
16.7 Motivation and Leadership
16.8 Leadership Effectiveness
16.8.1 Factors Influencing Leadership Effectiveness
16.8.2 Qualities of an Effective Leader
16.9 Let Us Sum Up
16.10 Key Words
16.11 Answers to Check Your Progress
16.12 Terminal Questions
16.0 OBJECTIVES
After studying this unit, you should be able to:
explain the meaning of leadership
describe the importance of managerial leadership
state the theories and different styles of leadership
outline the functions of leadership
analyse the relation between motivation and leadership
explain the meaning of leadership effectiveness and enumerate the qualities
of an effective leader
describe the meaning and significance of morale.
16.1 INTRODUCTION
As you know that management involves getting work done through the people.
By virtue of their position, managers can issue orders and instructions to their
subordinates to get work done. But it is also necessary to ensure that subordinates
put in their maximum effort in performing their tasks. Hence, managers have to
regulate and influence the subordinates behaviour and conduct at work. It is
through the leadership role of managers that employees may be induced to
perform their duties properly and maintain harmony in group activities. A
manager having formal authority can direct and guide his subordinates and
command their obedience by virtue of his positional power. But as a leader, the
manager can influence work behaviour by means of his leadership ability to get
Communication, Motivation
and Leadership
the cooperation of all members of the group. In this Unit, you will learn the
importance, theories, styles and functions of leadership. You will further learn
about the leadership effectiveness and morale.
16.2 WHAT IS LEADERSHIP?
Leadership may be defined as a process of influencing group activities towards
the achievement of certain goals. Thus, the leader is a person in a group who is
capable of influencing the group to work willingly. He guides and directs other
people and provides purpose and direction to their efforts. The leader is a part of
the group that he leads, but he is distinct from the rest of the group. As defined
by George R. Terry “Leadership is the activity of influencing people to strive
willingly for group objectives”.
Leadership naturally implies the existence of a leader and followers as well as
their mutual interaction. It involves inter-personal relation, which sustains the
followers accepting the leader’s guidance for accomplishment of specified goals.
Managers have to guide and lead their subordinates towards the achievement of
group goals. Therefore, a manager can be more effective if he is a good leader.
He does not depend only on his positional power or formal authority to secure
group performance but exercises leadership influence for the purpose. As a leader
he influences the conduct and behaviour of the members of the work team in the
interest of the organisation as well as the individual subordinates and the group
as a whole. But leadership and management are not the same thing. Management
involves planning, organising, coordinating and controlling operations in
achieving various organisational goals. Leadership is the process which
influences the people and inspires them to willingly accomplish the organisational
objectives. Thus, a manager is more than a leader. On the other hand, a leader
need not necessarily be a manager. For instance, in an informal group, the leader
may influence the conduct of his fellow members but he may not be a manager.
His leadership position is due to the acceptance of his role by his followers. But,
the manager, acting as a leader, has powers delegated to him by his superiors.
His leadership is an accompaniment of his position as a manager having an
organised group of subordinates under his authority. Thus, managerial leadership
has the following characteristics:
i) It is a continuous process whereby the manager influences, guides and directs
the behaviours of subordinates.
ii) The manager-leader is able to influence his subordinates behaviour at work
due to the quality of his own behaviour as leader.
iii) The purpose of managerial leadership is to get willing cooperation of the
work group in the achievement of specified goals.
iv) The success of a manager as leader depends on the acceptance of his
leadership by the subordinates.
v) Managerial leadership requires that while group goals are pursued,
individual goals are also achieved.
16.3 IMPORTANCE OF MANAGERIAL
LEADERSHIP
The importance of managerial leadership in an organisation arises from the basic
nature of the managerial and leadership roles of managers. Combination of these
roles invariably leads to not only effective task performance and fuller
achievement of organisation goals but also human satisfaction alround. This is
because management is based on the formal authority of managers. Whereas,
being leaders of work groups enables managers to achieve results on the basis
of inter-personal relations. The leader manager identifies himself with the work
group. He acts as an intermediary between his subordinates and the top
management. He takes personal interest in the development of his subordinates,
helps them in overcoming individual problems through advice and counselling,
creates appropriate work environment and builds up team spirit. As a result the
leader manager is able to develop better team work. The subordinates willingly
accept his advice, guidance and direction and are inspired as a group to
accomplish the specific goals.
16.4 THEORIES OF LEADERSHIP
There are a number of theories which provide explanations regarding various
aspects of the leadership phenomenon. Let us examine some of the theories.
Trait Theory : This is the earliest theory based on a distinction between the
personal qualities or traits of successful leaders. The theory suggests a list of
personality traits or characteristics which must be present in a person for his
success as a leader. According to this theory, leaders must be physically strong
and well-built, intelligent, honest and mentally mature. He must have initiative,
self-confidence, ability to take decisions, and so on. Since all individuals did
not have these qualities, only those who had them would be considered potential
leaders. Following are the limitations of this theory:
i) The trait theory is not accepted as a valid theory.
ii) There is no universally agreed list of traits associated with successful leaders.
iii) It is difficult to measure the traits and, therefore it is not always possible to
distinguish between leaders and followers.
Behavioural Theories : The behavioural theories of leadership are based on
the belief that leaders can be identified by reference to their behaviour in relation
to the followers. In other words, it is suggested that leadership can be described
in terms of what leaders do rather than what they are. Behavioural theories have
been presented mostly on the basis of research studies. According to the studies
conducted in the States of Michigan, USA, leaders who treat their subordinates
as human beings, are concerned about their well-being, and encourage and
involve them in goal setting, are more effective. They are described as ‘employee-
centred’ leaders. On the other hand, leaders who are ‘production-centred’
emphasise job performance in conformity with prescribed standards. He exercises
close control over the employees as if they were tools of production. Such a
leadership is associated with unsatisfactory work performance due to the low
morale of employees.
Page 4


Motivation
UNIT 16 LEADERSHIP
Structure
16.0 Objectives
16.1 Introduction
16.2 What is Leadership?
16.3 Importance of Managerial Leadership
16.4 Theories of Leadership
16.5 Leadership Styles
16.6 Functions of Leadership
16.7 Motivation and Leadership
16.8 Leadership Effectiveness
16.8.1 Factors Influencing Leadership Effectiveness
16.8.2 Qualities of an Effective Leader
16.9 Let Us Sum Up
16.10 Key Words
16.11 Answers to Check Your Progress
16.12 Terminal Questions
16.0 OBJECTIVES
After studying this unit, you should be able to:
explain the meaning of leadership
describe the importance of managerial leadership
state the theories and different styles of leadership
outline the functions of leadership
analyse the relation between motivation and leadership
explain the meaning of leadership effectiveness and enumerate the qualities
of an effective leader
describe the meaning and significance of morale.
16.1 INTRODUCTION
As you know that management involves getting work done through the people.
By virtue of their position, managers can issue orders and instructions to their
subordinates to get work done. But it is also necessary to ensure that subordinates
put in their maximum effort in performing their tasks. Hence, managers have to
regulate and influence the subordinates behaviour and conduct at work. It is
through the leadership role of managers that employees may be induced to
perform their duties properly and maintain harmony in group activities. A
manager having formal authority can direct and guide his subordinates and
command their obedience by virtue of his positional power. But as a leader, the
manager can influence work behaviour by means of his leadership ability to get
Communication, Motivation
and Leadership
the cooperation of all members of the group. In this Unit, you will learn the
importance, theories, styles and functions of leadership. You will further learn
about the leadership effectiveness and morale.
16.2 WHAT IS LEADERSHIP?
Leadership may be defined as a process of influencing group activities towards
the achievement of certain goals. Thus, the leader is a person in a group who is
capable of influencing the group to work willingly. He guides and directs other
people and provides purpose and direction to their efforts. The leader is a part of
the group that he leads, but he is distinct from the rest of the group. As defined
by George R. Terry “Leadership is the activity of influencing people to strive
willingly for group objectives”.
Leadership naturally implies the existence of a leader and followers as well as
their mutual interaction. It involves inter-personal relation, which sustains the
followers accepting the leader’s guidance for accomplishment of specified goals.
Managers have to guide and lead their subordinates towards the achievement of
group goals. Therefore, a manager can be more effective if he is a good leader.
He does not depend only on his positional power or formal authority to secure
group performance but exercises leadership influence for the purpose. As a leader
he influences the conduct and behaviour of the members of the work team in the
interest of the organisation as well as the individual subordinates and the group
as a whole. But leadership and management are not the same thing. Management
involves planning, organising, coordinating and controlling operations in
achieving various organisational goals. Leadership is the process which
influences the people and inspires them to willingly accomplish the organisational
objectives. Thus, a manager is more than a leader. On the other hand, a leader
need not necessarily be a manager. For instance, in an informal group, the leader
may influence the conduct of his fellow members but he may not be a manager.
His leadership position is due to the acceptance of his role by his followers. But,
the manager, acting as a leader, has powers delegated to him by his superiors.
His leadership is an accompaniment of his position as a manager having an
organised group of subordinates under his authority. Thus, managerial leadership
has the following characteristics:
i) It is a continuous process whereby the manager influences, guides and directs
the behaviours of subordinates.
ii) The manager-leader is able to influence his subordinates behaviour at work
due to the quality of his own behaviour as leader.
iii) The purpose of managerial leadership is to get willing cooperation of the
work group in the achievement of specified goals.
iv) The success of a manager as leader depends on the acceptance of his
leadership by the subordinates.
v) Managerial leadership requires that while group goals are pursued,
individual goals are also achieved.
16.3 IMPORTANCE OF MANAGERIAL
LEADERSHIP
The importance of managerial leadership in an organisation arises from the basic
nature of the managerial and leadership roles of managers. Combination of these
roles invariably leads to not only effective task performance and fuller
achievement of organisation goals but also human satisfaction alround. This is
because management is based on the formal authority of managers. Whereas,
being leaders of work groups enables managers to achieve results on the basis
of inter-personal relations. The leader manager identifies himself with the work
group. He acts as an intermediary between his subordinates and the top
management. He takes personal interest in the development of his subordinates,
helps them in overcoming individual problems through advice and counselling,
creates appropriate work environment and builds up team spirit. As a result the
leader manager is able to develop better team work. The subordinates willingly
accept his advice, guidance and direction and are inspired as a group to
accomplish the specific goals.
16.4 THEORIES OF LEADERSHIP
There are a number of theories which provide explanations regarding various
aspects of the leadership phenomenon. Let us examine some of the theories.
Trait Theory : This is the earliest theory based on a distinction between the
personal qualities or traits of successful leaders. The theory suggests a list of
personality traits or characteristics which must be present in a person for his
success as a leader. According to this theory, leaders must be physically strong
and well-built, intelligent, honest and mentally mature. He must have initiative,
self-confidence, ability to take decisions, and so on. Since all individuals did
not have these qualities, only those who had them would be considered potential
leaders. Following are the limitations of this theory:
i) The trait theory is not accepted as a valid theory.
ii) There is no universally agreed list of traits associated with successful leaders.
iii) It is difficult to measure the traits and, therefore it is not always possible to
distinguish between leaders and followers.
Behavioural Theories : The behavioural theories of leadership are based on
the belief that leaders can be identified by reference to their behaviour in relation
to the followers. In other words, it is suggested that leadership can be described
in terms of what leaders do rather than what they are. Behavioural theories have
been presented mostly on the basis of research studies. According to the studies
conducted in the States of Michigan, USA, leaders who treat their subordinates
as human beings, are concerned about their well-being, and encourage and
involve them in goal setting, are more effective. They are described as ‘employee-
centred’ leaders. On the other hand, leaders who are ‘production-centred’
emphasise job performance in conformity with prescribed standards. He exercises
close control over the employees as if they were tools of production. Such a
leadership is associated with unsatisfactory work performance due to the low
morale of employees.
Studies conducted in Ohio State University showed two dimensions of leader’s
behaviour viz., Initiating structure and Consideration. Initiating structure refers
to the leader’s behaviour in delineating the relationship between himself and
members of the work group and in endeavouring to establish well defined pattern
of organisation, channels of communication and methods of procedure. Whereas,
consideration refers to behaviour indicative of friendship, mutual trust, respect
and warmth in the relationship between leader and the members of his staff.
Fig. 16.1: Combination of Initiating Structure and Consideration
Look at Figure 16.1 which shows that the behaviour of a leader may be described
as any mix of both dimensions.
Situational Theories : In the situational theories of leadership the success of
leadership depends upon the situation in which the leader operates.
According to leadership contingency model developed by Fred E. Fiedler, the
leader’s effectiveness depend upon three situational factors:
i) Leader-followers relations, that is the degree of follower’s trust, confidence
and respect for the leader.
ii) The extent to which the task performed by subordinates is routine or non-
routine (known as task structure).
iii) The position power of the leader, that is, the power associated with the
rank and position of the leader in the organisation. He defined favourableness
of a situation as the degree to which the situation enables the leader to exert
his influence over his group.
The most favourable situation for leaders to influence their group is one in which
they are well liked by the members, the task is highly structured (i.e., routinised
and predictable) and the leader has enormous power attached to his position. On
the other the most unfavourable situation for leaders is one in which they are
disliked, the task is highly unstructured and he will have little position power.
High
Consideration
and
Low Structure
High
Structure
and
High Consideration
Low Structure
and
Low Consideration
High Structure
and
Low Consideration
Initiating Structure (High)
(Low)
(Low) (High) Consideration
Page 5


Motivation
UNIT 16 LEADERSHIP
Structure
16.0 Objectives
16.1 Introduction
16.2 What is Leadership?
16.3 Importance of Managerial Leadership
16.4 Theories of Leadership
16.5 Leadership Styles
16.6 Functions of Leadership
16.7 Motivation and Leadership
16.8 Leadership Effectiveness
16.8.1 Factors Influencing Leadership Effectiveness
16.8.2 Qualities of an Effective Leader
16.9 Let Us Sum Up
16.10 Key Words
16.11 Answers to Check Your Progress
16.12 Terminal Questions
16.0 OBJECTIVES
After studying this unit, you should be able to:
explain the meaning of leadership
describe the importance of managerial leadership
state the theories and different styles of leadership
outline the functions of leadership
analyse the relation between motivation and leadership
explain the meaning of leadership effectiveness and enumerate the qualities
of an effective leader
describe the meaning and significance of morale.
16.1 INTRODUCTION
As you know that management involves getting work done through the people.
By virtue of their position, managers can issue orders and instructions to their
subordinates to get work done. But it is also necessary to ensure that subordinates
put in their maximum effort in performing their tasks. Hence, managers have to
regulate and influence the subordinates behaviour and conduct at work. It is
through the leadership role of managers that employees may be induced to
perform their duties properly and maintain harmony in group activities. A
manager having formal authority can direct and guide his subordinates and
command their obedience by virtue of his positional power. But as a leader, the
manager can influence work behaviour by means of his leadership ability to get
Communication, Motivation
and Leadership
the cooperation of all members of the group. In this Unit, you will learn the
importance, theories, styles and functions of leadership. You will further learn
about the leadership effectiveness and morale.
16.2 WHAT IS LEADERSHIP?
Leadership may be defined as a process of influencing group activities towards
the achievement of certain goals. Thus, the leader is a person in a group who is
capable of influencing the group to work willingly. He guides and directs other
people and provides purpose and direction to their efforts. The leader is a part of
the group that he leads, but he is distinct from the rest of the group. As defined
by George R. Terry “Leadership is the activity of influencing people to strive
willingly for group objectives”.
Leadership naturally implies the existence of a leader and followers as well as
their mutual interaction. It involves inter-personal relation, which sustains the
followers accepting the leader’s guidance for accomplishment of specified goals.
Managers have to guide and lead their subordinates towards the achievement of
group goals. Therefore, a manager can be more effective if he is a good leader.
He does not depend only on his positional power or formal authority to secure
group performance but exercises leadership influence for the purpose. As a leader
he influences the conduct and behaviour of the members of the work team in the
interest of the organisation as well as the individual subordinates and the group
as a whole. But leadership and management are not the same thing. Management
involves planning, organising, coordinating and controlling operations in
achieving various organisational goals. Leadership is the process which
influences the people and inspires them to willingly accomplish the organisational
objectives. Thus, a manager is more than a leader. On the other hand, a leader
need not necessarily be a manager. For instance, in an informal group, the leader
may influence the conduct of his fellow members but he may not be a manager.
His leadership position is due to the acceptance of his role by his followers. But,
the manager, acting as a leader, has powers delegated to him by his superiors.
His leadership is an accompaniment of his position as a manager having an
organised group of subordinates under his authority. Thus, managerial leadership
has the following characteristics:
i) It is a continuous process whereby the manager influences, guides and directs
the behaviours of subordinates.
ii) The manager-leader is able to influence his subordinates behaviour at work
due to the quality of his own behaviour as leader.
iii) The purpose of managerial leadership is to get willing cooperation of the
work group in the achievement of specified goals.
iv) The success of a manager as leader depends on the acceptance of his
leadership by the subordinates.
v) Managerial leadership requires that while group goals are pursued,
individual goals are also achieved.
16.3 IMPORTANCE OF MANAGERIAL
LEADERSHIP
The importance of managerial leadership in an organisation arises from the basic
nature of the managerial and leadership roles of managers. Combination of these
roles invariably leads to not only effective task performance and fuller
achievement of organisation goals but also human satisfaction alround. This is
because management is based on the formal authority of managers. Whereas,
being leaders of work groups enables managers to achieve results on the basis
of inter-personal relations. The leader manager identifies himself with the work
group. He acts as an intermediary between his subordinates and the top
management. He takes personal interest in the development of his subordinates,
helps them in overcoming individual problems through advice and counselling,
creates appropriate work environment and builds up team spirit. As a result the
leader manager is able to develop better team work. The subordinates willingly
accept his advice, guidance and direction and are inspired as a group to
accomplish the specific goals.
16.4 THEORIES OF LEADERSHIP
There are a number of theories which provide explanations regarding various
aspects of the leadership phenomenon. Let us examine some of the theories.
Trait Theory : This is the earliest theory based on a distinction between the
personal qualities or traits of successful leaders. The theory suggests a list of
personality traits or characteristics which must be present in a person for his
success as a leader. According to this theory, leaders must be physically strong
and well-built, intelligent, honest and mentally mature. He must have initiative,
self-confidence, ability to take decisions, and so on. Since all individuals did
not have these qualities, only those who had them would be considered potential
leaders. Following are the limitations of this theory:
i) The trait theory is not accepted as a valid theory.
ii) There is no universally agreed list of traits associated with successful leaders.
iii) It is difficult to measure the traits and, therefore it is not always possible to
distinguish between leaders and followers.
Behavioural Theories : The behavioural theories of leadership are based on
the belief that leaders can be identified by reference to their behaviour in relation
to the followers. In other words, it is suggested that leadership can be described
in terms of what leaders do rather than what they are. Behavioural theories have
been presented mostly on the basis of research studies. According to the studies
conducted in the States of Michigan, USA, leaders who treat their subordinates
as human beings, are concerned about their well-being, and encourage and
involve them in goal setting, are more effective. They are described as ‘employee-
centred’ leaders. On the other hand, leaders who are ‘production-centred’
emphasise job performance in conformity with prescribed standards. He exercises
close control over the employees as if they were tools of production. Such a
leadership is associated with unsatisfactory work performance due to the low
morale of employees.
Studies conducted in Ohio State University showed two dimensions of leader’s
behaviour viz., Initiating structure and Consideration. Initiating structure refers
to the leader’s behaviour in delineating the relationship between himself and
members of the work group and in endeavouring to establish well defined pattern
of organisation, channels of communication and methods of procedure. Whereas,
consideration refers to behaviour indicative of friendship, mutual trust, respect
and warmth in the relationship between leader and the members of his staff.
Fig. 16.1: Combination of Initiating Structure and Consideration
Look at Figure 16.1 which shows that the behaviour of a leader may be described
as any mix of both dimensions.
Situational Theories : In the situational theories of leadership the success of
leadership depends upon the situation in which the leader operates.
According to leadership contingency model developed by Fred E. Fiedler, the
leader’s effectiveness depend upon three situational factors:
i) Leader-followers relations, that is the degree of follower’s trust, confidence
and respect for the leader.
ii) The extent to which the task performed by subordinates is routine or non-
routine (known as task structure).
iii) The position power of the leader, that is, the power associated with the
rank and position of the leader in the organisation. He defined favourableness
of a situation as the degree to which the situation enables the leader to exert
his influence over his group.
The most favourable situation for leaders to influence their group is one in which
they are well liked by the members, the task is highly structured (i.e., routinised
and predictable) and the leader has enormous power attached to his position. On
the other the most unfavourable situation for leaders is one in which they are
disliked, the task is highly unstructured and he will have little position power.
High
Consideration
and
Low Structure
High
Structure
and
High Consideration
Low Structure
and
Low Consideration
High Structure
and
Low Consideration
Initiating Structure (High)
(Low)
(Low) (High) Consideration
Task Oriented Relationship Oriented Task Oriented
Very favourable Intermediate favourable Very unfavourable
leadership situation leadership situation leadership situation
Fig. 16.2: Appropriateness of leadership behaviour for various group situations
Look at Figure 16.2 which shows that task oriented leaders tend to perform best
in group situations that are either very favourable or very unfavourable to the
leader. On the other hand, relationship-oriented leaders tend to perform best in
situations that are intermediate (medium) in favourableness.
Another situational theory is the ‘Path-Goal Theory’. According to this theory,
leaders are effective due to their influence on followers’ motivation, ability to
perform, and their satisfaction. Subordinates are motivated by the leader to the
extent he is able to influence their expectancies relating to the performance and
attractiveness of the goal. Further, individuals are satisfied with their job if they
believe that (a) performance of the job will lead to desirable outcomes and (b)
with hard work they will be able to achieve the desirable outcomes.
16.5 LEADERSHIP STYLES
The dominant behaviour pattern of a leader-manager in relation to his
subordinates is known as leadership style. There are three basic styles of
leadership as follows:
1) Autocratic or Authoritative Style
2) Democratic or Participative Style and
3) Laissez-faire or Free-rein Style.
Autocratic or Authoritative Style
An autocratic leader centralises power and decision-making in himself and
exercises complete control over the subordinates. In this style, subordinates are
compelled to follow the orders of the leader under threat of penalties. They have
no opportunity to take part in goal-setting, or take initiative or make suggestions.
They are subject to close supervision and, thus have a tendency to avoid
responsibility. The autocratic manager has little concern for the well-being of
employees, who suffer from frustration and low morale. They do not have any
sense of belonging to the organisation and try to work as little as possible.
Limitations : It should be clear from the above that there are several limitations
of the autocratic style of leadership.
i) It results in low morale due to the inner dissatisfaction of employees.
ii) Efficiency of production goes down in the long run.
iii) It does not permit development of future managers from among capable
subordinates.
Despite the above limitations, autocratic leadership can be successfully applied
in the following situations:
i) When subordinates are incompetent and inexperienced.
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FAQs on Leadership - CMAT Mock Test Series - CAT

1. What are the key qualities of an effective leader?
Ans. Effective leaders possess qualities such as good communication skills, strong decision-making abilities, empathy, adaptability, and the ability to inspire and motivate others.
2. How can leadership skills be developed and improved?
Ans. Leadership skills can be developed and improved through practice, seeking feedback, taking on new challenges, learning from mentors, and attending leadership development programs or workshops.
3. What is the importance of emotional intelligence in leadership?
Ans. Emotional intelligence is crucial in leadership as it helps leaders understand and manage their own emotions as well as the emotions of others, leading to better communication, conflict resolution, and decision-making.
4. How does effective leadership impact organizational success?
Ans. Effective leadership can positively impact organizational success by fostering a positive work culture, improving employee engagement and productivity, driving innovation, and ultimately achieving the organization's goals.
5. How can leaders adapt their leadership style to different situations or team members?
Ans. Leaders can adapt their leadership style by being aware of the needs and preferences of their team members, practicing situational leadership, and being flexible in their approach based on the specific context or challenges they are facing.
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