Leadership Theory & Styles

I. Leadership: Definition & Elements

• Definition: The process of influencing subordinates' behavior towards the achievement of specified goals by a person (leader). This is a process of influencing behavior of those under a higher authority.

• Chester Barnard's Elements of Leadership:

  • Leader's qualities and behavior
  • Subordinates'/followers' abilities and competence
  • Situational factors affecting the leader-follower relationship

• Functions of a Leader:

  • Goal setting
  • Planning
  • Policy formulation
  • Determining activities
  • Policy execution
  • Efficient resource utilization
  • Control and coordination of activities (Note: This list is not exhaustive)

• Characteristics of a Leader:

  • Capacity to influence others
  • Ability to bring behavioral change in others
  • Maintenance of leader-follower relationships
  • Determination of organizational goals
  • Continuous process

II. Leader vs. Manager

Feature	Leader	Manager
Authority	Informal	Formal
Goals	Personal views	Impersonal views
Existence	Formal & informal organizations	Primarily formal organizations
Activities	Communication, motivation, etc.	Planning, organizing, controlling, reporting, budgeting

• Informal Authority: Authority not granted by rules, regulations, or legally.
• Formal Authority: Legally granted authority, often documented.

III. Styles of Leadership

• Definition: Behavioral patterns of a leader towards subordinates to influence others, depending on leader's ideology, personality, experience, follower types, and organizational atmosphere.

• Types:

  • Autocratic/Authoritative:

    • Leader retains power and authority.
    • No delegation of power to subordinates.
    • No consultation with subordinates.
    • One-way communication.
    • Advantages: Quick decision-making, quick results, suitable for unskilled/uneducated subordinates.
    • Disadvantages: Frustration and low morale among subordinates, underutilization of subordinate initiative.

  • Democratic/Participative:

    • Leader takes decisions in consultation with subordinates.
    • Delegation of authority and rights to subordinates.
    • Two-way communication.
    • Suitable where job satisfaction and employee autonomy are important.
    • Advantages: Job satisfaction, high morale, improved decision-making, positive attitudes, increased efficiency, better resource utilization.
    • Disadvantages: Time-consuming decision-making, difficulty in achieving consensus, less interaction between subordinates may not yield positive results.

  • Free-Rein/Laissez-Faire:

    • Leader avoids power and delegates all rights and authority to subordinates.
    • Subordinates make their own decisions.
    • Advantages: Job satisfaction, full utilization of subordinate potential, decreased workload for leader.
    • Disadvantages: Leader's contribution ignored, subordinates may work in different directions, suitable only when subordinates are well-trained and highly knowledgeable.

IV. Qualities of a Good Leader

• Basic Qualities: Knowledge, intelligence, honesty, integrity, self-confidence, sense of responsibility, motivational skills, good physical qualities and appearance.

• George R. Terry's Qualities: Power, emotional stability, knowledge of human relations, personal motivation, communication skills, teaching ability, social ability, and technical ability.

V. Theories of Leadership

• Traditional Theories:

  • Great Man Theory (Thomas Carlyle): Leaders are born, not made; hero worship; followers only interested in leader selection, not performance.
  • Trait Theory (Barnard & Tead): Leaders are made, not born; focuses on identifying and developing leadership qualities (traits).

• Modern Theories:

  • Behavioral Theory: Emphasizes leader's behavior rather than personal qualities; focuses on what leaders do (e.g., how they lead, motivate, communicate).
  • Situational/Contingency Theory: Leadership effectiveness depends on situational variables (leader-follower relationship, task structure, leader position). Effectiveness depends on favorable conditions of these three elements.

• Charismatic Leadership: Leader uses communication skills, motivational power, and attractive personality to influence people; often seen as divinely appointed; elements include heroism, divine origin, and charismatic characteristics; features include vision, confidence, optimism, and masterful communication skills.