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Business Studies · Ch 7 — Directing

Leadership

7.5.3

Leadership

What is Leadership?

Leadership is the process of influencing the behaviour of people so that they strive voluntarily towards the achievement of organisational goals. It is not about forcing people to work; it is about making them want to contribute. A leader is someone who possesses the attributes of leadership — the ability to maintain good interpersonal relations with followers and motivate them.

Whenever we think of successful organisations, we immediately think of their leaders: Microsoft without Bill Gates, Reliance without the Ambanis, Infosys without Narayana Murthy, Tata without J.R.D. Tata, or Wipro without Azim Premji. Great leaders are central to the success and excellence of any organisation.

Features of Leadership

An examination of the definition reveals five key features:

  • Influence: Leadership indicates the ability of an individual to influence others. Effective leadership means getting work done, completing tasks on time, and achieving goals at minimum cost.
  • Change in behaviour: Leadership tries to bring about a change in the behaviour of others.
  • Interpersonal relations: Leadership indicates the interpersonal relations between leaders and followers.
  • Common goals: Leadership is exercised to achieve the common goals of the organisation.
  • Continuous process: Leadership is not a one-time event; it is an ongoing process.

The Leader-Follower Relationship

It is important to understand that followers are just as crucial as the leader. Many times, the success of an organisation is attributed to the leader, but due credit is not given to the followers. Factors related to followers — their skills, knowledge, commitment, willingness to cooperate, and team spirit — make a person an effective leader. It is often said that followers make a person a good leader by accepting their leadership. Both leader and follower play a key role in the leadership process.

Importance of Leadership

Leadership is a key factor in making any organisation successful. History shows that the difference between success and failure is often leadership. As management consultant Stephen Covey noted, managers are important, but leaders are vital for lasting organisational success. A leader not only commits followers to organisational goals but also pools needed resources, guides, and motivates subordinates to reach those goals.

The importance of leadership can be seen through these benefits:

  • Influences behaviour: Leadership influences the behaviour of people and makes them positively contribute their energies for the benefit of the organisation. Good leaders produce good results through their followers.
  • Creates a congenial work environment: A leader maintains personal relations and helps followers in fulfilling their needs. They provide needed confidence, support, and encouragement, thereby creating a congenial work environment.
  • Introduces change: A leader plays a key role in introducing required changes in the organisation. They persuade, clarify, and inspire people to accept changes wholeheartedly, overcoming the problem of resistance to change with minimum discontentment.
  • Handles conflicts: A leader handles conflicts effectively and does not allow adverse effects to result from them. A good leader allows followers to ventilate their feelings and disagreements but persuades them by giving suitable clarifications.
  • Provides training and succession: A leader provides training to subordinates. A good leader builds up their successor and helps in a smooth succession process.
Note

Not all good leaders necessarily possess all the qualities of a good leader. It is not possible for any individual to have all the qualities. However, understanding these qualities helps managers acquire them through training and conscious effort.

Leadership Styles

There are many theories of leadership behaviour. The most popular classification of leadership styles is based on the use of authority. Depending on the use of authority, there are three basic styles:

1. Autocratic or Authoritarian Leader

An autocratic leader gives orders and expects subordinates to obey those orders. Communication is only one-way — the subordinate acts according to the command given. This leader is dogmatic, meaning they do not change or wish to be contradicted. Their following is based on the assumption that reward or punishment can be given depending on the result.

  • Effectiveness: This style is effective in getting productivity in many situations, such as in a factory where the supervisor is responsible for production on time and must ensure labour productivity. Quick decision-making is also facilitated.
  • Variation: Some autocratic leaders may listen to everyone's opinion and consider subordinates' ideas and concerns, but the final decision remains their own.
2. Democratic or Participative Leader …
FigureEffective Leadership Is Getting Work Done, Tasks Completed on Time and Goals Achieved at Minimum Cost
Fig.  — Effective Leadership Is Getting Work Done, Tasks Completed on Time and Goals Achieved at Minimum Cost

Drawn by us to help you understand the concept clearly, and verified to make sure it's accurate. For exams, practice from your textbook's own diagram.

Our own simplified rendering of the real page's office scene: on one side of a low partition, three team members collaborate around a shared desk — one hands over papers while shaking hands, a third sits writing with reference books open. On the other side, behind a partition marked "Manager", the manager works independently at a computer. …

DefinitionDefinitions of Leadership

Leadership is the activity of influencing people to strive willingly for group objectives.

— George Terry

Leadership is the art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals.

— Harold Koontz and Heinz Weihrich

Leadership is a set of interpersonal behaviours designed to influence employees to cooperate in the achievement of objectives.

— Glueck …