UNIT III LEADERSHIP AND POWER

Meaning – Importance – Leadership styles – Theories – Leaders Vs Managers – Sources of

power – Power centers – Power and Politics.

Definitions And Meaning Of Leadership

According to Alford and Beatty "Leadership is the ability to secure desirable actions from a
group of followers voluntarily, without the use of coercion".

According to Chester I Barnard, "It (leadership) refers to the quality of the behaviour of the
individual whereby they guide people on their activities in organized efforts"

According to Koontz and O'Donnell - Managerial leadership is "the ability to exert interpersonal
influence by means of communication, towards the achievement of a goal.
Since managers get things done through people, their success depends, to a considerable extent
upon their ability to provide leadership".

In the words of Theo Haimann - "Leadership is the process by which an executive imaginatively
directs, guides and influences the work of others in choosing and attaining specified goals by
mediating between the individuals and the organization in such a manner that both will obtain
maximum satisfaction".

Nature / Characteristic / Features Of Leadership

1. Leadership is the process of influencing the activities of an individual or a group towards the
achievement of a goal.
2. An effective leader motivates the subordinates for higher level of performance.
3. Leadership promotes team - spirit and team - work which is quite essential for the success of
any organization.
4. Leadership is an aid to authority. A leadership helps in the effective use of formal authority.
5. Leadership creates confidence in the subordinates by giving them proper guidance and advice.
6. Leadership involves an unequal distribution of authority among leaders and group members:
Leaders can direct some of the activities of group members, i.e., the group members are
compelled or are willing to obey most of the leader's directions.
7. Leadership is a process of Influence: Leadership implies that leaders can influence their
followers or subordinates in addition to being able to give their followers or subordinates
legitimate directions.
8. Leadership is the function of stimulation: Leadership is the function of motivating people to
strive willingly to attain organizational objectives. A successful leader allows his subordinates
(followers) to have their individual goals set up by themselves in such a way that they do not
conflict with the organizational objectives.
9. A leader must be exemplary. "A Leader shows the way by his own example. He is not a
pusher, he pulls rather than pushes".
From the above explanation it is clear that a leader must set an ideal before his followers. He
must stimulate his followers for hard and sincere work by his personal behaviour.
10. A Leader ensures absolute justice: A leader must be objective and impartial. He should not
follow unfair practices like favouritism and nepotism. He must show fair play and absolute
justice in all his decisions and actions.
Leadership Skill
The leader is expected to play many roles and therefore, must be qualified to guide others to
organizational achievement.
In a broad way the skills which are necessary for an industrial leader may be summarized under
four heads:-
(a) Human skill
(b) Conceptual skill
(c) Technical skill and
(d) Personal skill.
a) Human Skill :
A good leader is considerate towards his followers because his success largely depends on the
co-operation of his followers. He approaches various problems in terms of people involved more
than in terms of technical aspects involved. A leader should have an understanding of human
behaviour. He should know people; know their needs, sentiments, emotions, as also their actions
and reactions to particular decisions, their motivations etc.
Thus, a successful leader possesses the human relations attitude.

The human skill involves the following:-

(a) Empathy: A leader should be able to look at things objectively. He should respect the rights,
belief and sentiments of others. He should equip himself to meet the challenges emanating from
the actions and reactions of other people. The leader should be empathetic towards his followers
so that he can carefully judge their strengths, weakness, and ambitions and give them the
attention they deserve.
(b) Objectivity: A good leader is fair and objective in dealing with subordinates. He must be free
from bias and prejudice while becoming emotionally involved with the followers. His approach
to any issue or problem should be objective and not based on any pressure, prejudice or
preconceived notions. Objectivity is a vital aspect of analytical decision making. Honesty,
fairplay, justice and integrity of character are expected of any good leader.
(c) Communication Skill: A leader should have the ability to persuade, to inform, stimulate,
direct and convince his subordinates. To achieve this, a leader should have good communication
skill. Good communications seem to find all responsibilities easier to perform because they relate
to others more easily and can better utilize the available resources.
(d) Teaching Skill: A leader should have the ability to demonstrate how to accomplish a
particular task.
(e) Social Skill: A leader should understand his followers. He should be helpful, sympathetic and
friendly. He should have the ability to win his followers confidence and loyalty.

b) Conceptual Skill
In the words of Chester Barnard -"the essential aspect of the executive process is the sensing of
the organization as a whole and the total situation relevant to it". Conceptual skills include -
(a) The understanding of the organization behaviour
(b) Understanding the competitors of the firm, and
(c) Knowing the financial status of the firm.
c) Technical Skill
A leader should have a thorough knowledge of, and competence in, the principles, procedures
and operations of a job. Technical skill involves specialized knowledge, analytical skill and a
facility in the use of the tools and techniques of a specific discipline. Technical competence is an
essential quality of leadership.
d) Personal Skill
The most important task of the leader is to get the best from others. This is possible only
if he possesses certain qualities. These personal skills include
(a) Intelligence: Intellectual capacity is an essential quality of leadership. Leaders generally have
somewhat higher level of intelligence than the average of their followers.
(b) Emotional Maturity: A leader should act with self-coincidence, avoid anger, take decisions
on a rational basis and think clearly and maturely. A leader should also have high frustration
tolerance. According to Koontz and O'Donnell - "Leaders cannot afford to become panicky,
unsure of themselves in the face of conflicting forces, doubtful of their principles when
challenged, or amenable to influence".
(c) Personal Motivation: This involves the creation of enthusiasm within the leader himself to get
a job done. It is only through enthusiasm that one can achieve what one wants. Leaders have
relatively intense achievement type motivational drive.
(d) Integrity: In the words of F.W Taylor - "integrity is the straight forward honesty of purpose
which makes a man truthful, not only to others but to himself; which makes a man high-minded,
and gives him high aspirations and high ideals".
(e) Flexibility of Mind: A leader must be prepared to accommodate other's viewpoints and
modify his decisions, if need be. A leader should have a flexible mind, so that he may change in
obedience to the change in circumstances. Thomas Carle has said - "A foolish consistency is the
hobgoblin of a little mind".

FUNCTIONS OF A LEADER/ LEADERSHIP

1. To take the initiative: A leader initiates all the measures that are necessary for the purpose of
ensuring the health and progress of the undertaking in a competitive economy. He should not
expect others to guide or direct him. He should lay down the aims and objectives, commence
their implementation and see that the goals are achieved according the predetermined targets.
2. He identifies group goals: A leader must always help the group identify and attain their goals.
Thus, a leader is a goal setter.
3. He represents the organization: A leader represents the organization and its purpose, ideals,
philosophy and problems to those working for it and to the outside world .In other words, leaders
is true representative of the entire organization.
4. He acts as a arbitrator: When groups experience internal difference, whether based on
emotional or intellectual clashes, a leader can often resolve the differences.
He acts as an arbitrator to prevent serious group difference.
5. To assign reasons for his action: It is a delicate task of leaders to assigns reason to his every
command. He has to instruct things in such a way that they are intelligible to all concerned and
their co-operation is readily forthcoming.
6. To interpret: He interprets the objectives of the organization and the means to be followed to
achieve them; he appraises his followers, convinces them, and creates confidence among them.
7. To guide and direct: It is the primary function of the leader to guide and direct the
organization. He should issue the necessary instructions and see that they are properly
communicated.
8. To encourage team work: A leader must try to win the confidence of his subordinates. He
must act like the capital of a team.
9. He manages the organization: Last, but not the least, he administers the undertaking by
arranging for the forecast, planning, organization, direction, co-ordination and control of its
activities.
TYPES OF LEADERS
1. Autocratic / Task management leadership
They are the authoritarian leaders. They are the leaders by authority. The authoritarian leader
directs his subordinates to perform the requisite task in accordance with the dictates given to
them.
The autocratic Leader gives order which he insists shall be obeyed. He determines polices for the
group without consulting them, and does not give detailed information about future plans, but
simply tells the group what steps must they take. In other words, an autocratic leader is one who
centralizes the authority in himself and does not delegate authority to his subordinates. He is
dictatorial by nature, and has no regard for the subordinates. He drives himself and his
subordinates with one thought uppermost in his mind- action must produce results. An autocratic
close the entire planning and cells upon his subordinates to execute what he has planned. An
Autocratic leader operates on the following assumptions:-
(a) An average human being has inherent dislikes of work and will avoid it if he can.
(b) His assumption is that if his subordinate was intelligent enough, he would not be in
that subordinate position.
(c) He assumes that unintelligent subordinates are immature, unreliable and irresponsible
persons. Therefore, they should be constantly watched in the course of their work.
(d) As he has no regard for his subordinates, he gets the work done by his subordinates
through negative motivation i.e. through threats of penalty and punishment.

Types of autocratic leadership

Strict autocratic leaders: A strict autocratic relies on negative influence and gives orders which
the subordinates must accept. He may also use his power to disperse rewards to his group.
Benevolent Autocrat: The benevolent is effected in getting high productivity in many
situations and he can develop effective human relationship. His motivational style is
usually positive.
Manipulative Autocrat: A manipulative autocratic leader is one who makes the subordinates feel
that they are participating in decision making process even though he has already taken the
decision.

2 Participative / Democratic leaders

A democratic leader is one who consults and invites his subordinates to participate in the
decision making process. He gives orders only after consulting the group; sees to it that
polices are worked out in group decisions and with the acceptance of group. The manager
largely avoids the use of power to get a job done. He behaves that a desired organizational
behaviour can be obtained if employees' needs and wants are satisfied. Therefore, he
not only issues orders but interprets them and sees to it that the employees have the
necessary skill and tool to carry out their assignments. He assigns a fair work lead to his
personal and recognizes the job that is well done; there is a team approach to the attainment
of organizational goals. He recognizes human value for greater concern for his
subordinates. A participative leader operates on the following assumptions:-
(a) Subordinates are capable of doing work and assuming the responsibility if they are
given opportunities and incentives.
(b) Subordinates are supervised, guided and aided rather then threatened and commanded to
work.
(c) Mistakes are not viewed seriously. The assumption is that disciplinary action breeds
discontent and frustration among employees and creates an unhealthy work
environment.
3. Laissez Faire or Free-rein Leadership
A free-rein leader does not lead, but leaves the group entirely to itself. The leader avoids
using power and interest the decision making authority to his subordinates. He does not
direct his subordinates and there is complete freedom for the subordinates. Group of
members work themselves and provide their own motivation. The manager exits as a
contact man with outsiders to bring for his group the information and resources it needs
to accomplish its job. A free-rain leadership operates on the following assumption:-
(a) He follows the rule of minimum exposure to accountability.
(b) He relieves himself of responsibilities and is ready to blame his subordinates if
something goes wrong.
(c) He has no clear idea of the goals to be attained.
(d) He is more security conscious than status conscious.
This mode of direction can produce good and quick results if the subordinates are highly
educated and brilliant people who have a will to go ahead and perform their responsibility.

4. Intellectual leaders
They are the leaders by intellect. Such persons are recognized as leaders on the basis of
intellectual work of great importance and relevance done by them for the good of the people.
Whether they were scientists, doctors, engineers, poets or philosophers, all have made significant
contribution to the good of humanity. This brought to them the status of intellectual leaders.

5. Institutional leaders
They are the leaders by position. Generally, the head of a particular institution is recognized as a
leader.
6. Persuasive leaders
They are the leaders by personality. Such leaders fall in the category of charismatic (magnetic /
heroism)
leadership, The charismatic leader attracts followers on the basis of the qualities of
persuasiveness he possesses.
7. Creative or Innovative leaders
They are accepted as leaders on the basis of the contribution made by them in their branch of
knowledge. Their contribution is generally of great relevance to human upliftment whether they
are scientists, engineers, architects or business experts.

LEADERSHIP THEORIES
More recently the situation in which the leader operates has been given much importance.
It is belived that the leadership effectiveness depends on the situation in which the Leader
operates.
We shall discuss a few important theories on leadership with an assertion that any theory will be
complete only when it covers three important dimensions of leadership, namely:
1. The leader and his or her psychological attributes;
2. The followers with his or her problems, and needs;
3. The group situation in which followers and leaders relate with one another.
TRAIT THEORY
The trait theories of leadership focus on the individual characteristic of successful leaders.
According to the theories, leaders possess a set of traits which make them distinct from
followers. An attempt must, therefore, be made to identify and measure these traits.
Attempts were indeed made in the past to identify such qualities. Ralph Stogdill,
for instance, surveyed more than 5000 leadership studies and concluded that successful
leaders tend to have the following qualities.

(i) A strong desire for accomplishment

(ii) Persistent pursuit of goals
(iii) Creativity and intelligence used to solve problems
(iv) Initiative applied to social situations
(v) Self-assumed personality
(vi) Willingness to accept behavioural consequences
(vii) Low susceptibility to interpersonal stress
(viii) High tolerance of ambiguity
(ix) Ability to influence other people
(x) Ability to structure social interactions

Evaluation of the Trait Theory: The trait approach to leadership has been severely criticized by
many. Some of the limitations of the theory are the following :
(i) The list of personality traits of successful leaders is too long and there seems to be no finality
about it. Although hundreds of traits have been identified, no consistent pattern has emerged.
(ii) How much of which react a successful leader must have is not fear- Furthermore, certain,
particularly psychological, cannot be quantified.
(iii) The theory assumes that a leader is born and not trained. This assumption is not acceptable
to the contemporary thinkers on the subject.
(iv) Contrary to what the theory assumes, leadership effectiveness does not depend upon the
personality of the leader alone. Other variables like the situation, the task, the organization and
the characteristics of followers will equally determine the effectiveness of leaders.
(v) It is well known that people who fail as leaders and people who never achieve positions of
leadership often possess some of the same traits as successful leaders.

The Behavioral Theory of Leadership

According to behavioral theory, a leader is as a leader does, so the focus is on the common
behaviors of leaders. In that case, there are many types of behaviors exhibited by leaders all
around the world and throughout history. There are leaders whose word is law, and there are
those that prefer to allow the people to have a hand in the decision-making process.

Autocratic Leadership: These are the leaders who do not consult their subordinates when making
decisions in the workplace. Once the decisions have been made the subordinates are expected to
cooperate with them with no objections. This type of leadership certainly has an environment
where it is highly effective. When decisions have to be made fast, and the leader has extensive
knowledge and experience, needing little input, then they can use autocratic leadership to their
advantage.

Democratic Leadership: A democratic leader seeks the input of their subordinates before making
a decision. The exact degree of input that the leader wants from their team will vary with the
leader.
Democratic leadership works in situations where the agreement of the team is necessary for a
successful outcome. It also works when the team is cohesive and well-aligned with its goals.

Laissez-Faire Leadership: This type of leader does not involve themselves in the dealings of their
subordinates. They give their subordinates the leeway to make their own decisions and direct
their own work. To be sure, this type of leadership can work in certain situations, such as where
a team is composed of highly skilled and experienced individuals who are competent, motivated,
and capable of taking initiative, therefore not requiring any kind of supervision.

The Functional Theory of Leadership

According to this theory, the leader has one main responsibility: to assess the needs of their
followers and then meet those needs. They are also tasked with other functions that relate to this
one main responsibility:

 To monitor the environment within which their subordinates work.

 To organize activities for their followers so that everyone always has something to do.
 To train their subordinate_s and increase their knowledge and skill sets.
 To motivate and inspire their followers.
 To participate in the activities of the group. This is important as it forces them to have
skin in the game and builds trust in them among their followers.

The Transformational Theory of Leadership

According to this theory, the leader is tasked with seeing the bigger picture in every situation and
motivating their followers to attain greater goals and execute the group’s vision. This type of
leadership demands that the leader be clearly visible to followers and that they are accessible at
all times. They should constantly look for new ideas and ways to realize the goals of the group.

The Transactional Theory of Leadership

According to this theory, a leader is defined by an ability to reward those who perform well and
to punish those who do not. A leader should have a specific goal for followers to work toward. A
leader should also have the ability to train followers to give them the ability to work towards that
goal. From there they should evaluate their followers’ performance and determine whether it is
satisfactory.

Situational Contingency Theories

Situational contingency theories maintain that the situation is the ultimate factor in the leadership
style adopted by a leader. With that in mind, there is no single ultimate leadership style.
Autocratic leadership works in times of intense crisis, whereas democratic leadership works in
times of relaxation. Situations dictate the most appropriate type of leadership style for other
leadership styles, as well.

Difference between Leadership and Management:

Leadership is different from management. The main differences between these two terms are:-
1. A manager is required to plan, organize, direct and control. But a leader is one who
gets others to follow him.
2. A manager depends on his authority. But a leader depends on his confidence and
goodwill. He inspires enthusiasm.
3. Management is concerned with the formulation of broad policies to guide the
operations of an enterprise. But leadership is concerned with the initiation of action
for the accomplishment of the goals.
4. An individual is a leader in the true sense if he is accepted as a leader by the group.
A manager is appointed and he derives his authority by virtue of his office.
5. Management is associated with the organized structure. But leadership may be
associated with unorganised groups.

POWER
Power is the ability to influence other people. It refers to the capacity to affect the behaviour of
the subordinate with the control of resources. It is an exchange relationship that occurs in
transactions between an agent and a target. The agent is the person who uses the power and
target is the receipt of the attempt to use power.

Sources (Base) of Power

According to French and Raven, a manager drives power from five sources : Reward, Coercive,
Legitimate, Referent and Expert power.

Reward Power
It is based on the agent's/manager's ability to control rewards the target/employee wants. The
common, e.g., of it are managers control rewards of salary increases, bonuses and promotions.
This power is based on old saying that 'wealth is power'.
Coercive Power
It is opposite of reward power. It is based on a manager's ability to cause an unpleasant
experience for its people. In organizational situation, it may be in the form of action for or threat
for dismissal, suspension, or demotion, for the people working in organization.
Legitimate Power
It is based on position and mutual agreement. Both the agent and target agree that the agent has
the right to influence the employees. It is in the form of authority which is delegated to the
positions of organizational members.
Referent Power
It is an elusive power that is based on interpersonal attraction. Charismatic individuals are often
thought to have referent power. Here, people take somebody as ideal and behave accordingly
upto a certain stage.
Expert Power
It exists when the agent has information or knowledge that the target needs. It is based on the
proverb, "knowledge in power". Three conditions to be fulfilled are :
(1) The target must trust that the information given by the agent is accurate and correct.
(2) The information should be relevant and useful to the target.
(3) The target must consider the agent as an expert.

Acquisition of Power

Some people enjoy more power than others because :

1. Extraordinary Works : Doing things in a non-routine or extraordinary works contribute to
power. For example, negotiating a new contract, developing a new product, or formulating a new
programme.

2. Visible Activities : Even extraordinary activities not known to others do not generate much
power. Therefore, activities need to be visible or known to others. Activities announced and
appreciated by the people of higher echelons bring more power.
3. Cultivate Right People : Individuals can also increase their personal power by developing their
interpersonal relationships with their superiors, subordinates and peers.

4. Coalitions : Coalescing is yet another way to earn power. The philosophy behind joining
together is gaining increased capability to influence others.

5. Co-opt : Individuals can increase their personal power by co-opting people or groups. Co-
opting, seeks to eliminate threats and opposition to an individual's base of power.

Meaning of Organizational Politics

It means the use of power and influences in organizations. Actions not officially sanctioned or
acceptable by an organization that are taken to influence others in order to meet personal goals
refer to politics.

Reasons for Organizational Politics

There are many reasons that contribute to political behaviour in organizations. Some of them are
1. Clear Goals : Organizations are human groups work for achieving certain goals. The more
unclear and complex the goals are, the more politics will be.
2. Discretionary Authority : Organizations provide position with discretionary authority that is
used based on individual judgement.
3. Autocratic Decisions : The leader dictates the decisions or orders and the subordinates have
no right to disobey. This leads to low employee morale and doubts about what the manger-leader
decides. Therefore, in order to safeguard their interests, workers involve in politics by forming
coalitions and associations.
4. Power Politics : Power is also a limited in supply. Hence, there is a competition among
mangers/executives to acquire more and more power. They try to acquire more power and
resources than their competitors. Managers' such behaviour becomes quite dysfunctional.
5. Saturation in Promotion : Some people reach maximum level of promotion. They feel
dissatisfaction and resort to the organizational politics. Some people may like work performance
more than positional achievement and therefore, may not resort to politics.
6. Biased Performance Appraisal : When the job performance of a personnel cannot be
measured quantitatively, performance appraisal is made on the basis of the judgement of the
superior. As such the performance appraisal is likely to be subjective and biased. This may force
the subordinates into dysfunctional political behaviour.