28 Leadership, Nature, Importance And Styles
Prof. Geeta Bansal
1. Module 1:Meaning of leadership
2. Learning Outcome
3. Introduction
4. Definition and meaning of leadership
5. Nature and characteristics of leadership
6. Importance of leadership
6.1 lessons from ‘Chak de India’
7. Leadership In The New Millennium
8. Leadership styles
9. Summary
1. LEADERSHIP , ITS NATURE IMPORTANCE AND STYLES
2. LEARNING OUTCOMES
- After going through the lesson you should be able to :
- Define the meaning of Leadership
- Understand the nature and characteristics of Leadership
- Appreciate the importance and role of an effective leadership in the growth and success of an organization
- Delineate some of most commonly applied Styles of Leadership in today’s organizations
3. INTRODUCTION
A leader is the one who is responsible for creating and sustaining not only good but great organizations. I’m sure you are reminded of some great leaders in the corporate world who have turned the fortunes of their organizations by their sheer futuristic vision to make this world a better place for our future generations by their business acumen and ingenuity.To name a few , we have Mark Zuckerberg of Face book to start with, followed by Bill Gates of Microsoft, Warren Buffet of Berkshire Hathaway, Jack Welch of GM, Lee Iacocca of Chrysler , Steve Jobs of Apple, looking around closer home , we have leaders and visionaries like JRD Tata, Ratan Tata, Dhirubhai Ambani, Mukesh and Anil Ambani of Relinace, Azim Premji of Wipro, Indira Nooyi of Pepsico, Narayan Murthy of Infosys, well the list can be endless.
What do you think is common about all of them?
Well, without blinking an eyelid I can tell you that they are all Level Five leaders, who have exhibited a very fine juxtaposition of tremendous professional will and humility. This is what we call level five leadership. We will be discussing about level five leadership later in the lesson.
What does it take to be a good leader?
Well, a good leader is the one who is bestowed with certain qualities which enables him to run the show during his life and the one who ensures that the show goes on even long after he is gone. That is what we call leadership.
We are reminded of Steve Jobs here who was a leader par excellence who was able to communicate his vision for the organization to his people ,who are carrying forward the great legacy left behind by him.
The three most important qualities which make an effective and efficient leader are that;
1. He should have a clear sense of mission vision and direction for the business and should have an ability to communicate it
to his followers.
2. He should have an incredible knack for motivating and inspiring people in the organization by being a role model himself
by walking the talk.
3. Last but not the least, he should have a tremendous measure of adaptability and by this virtue has
the ability to save the organizations from becoming corporate dinosaurs.
Thus we can reinforce that Leadership is a function of management which is concerned with influencing the thought process and behavior of the people around in the organizations.. Good leadership is necessary for inspiring the people to work more and better for the accomplishment of predetermined objectives. Leadership provides a cohesive force which holds the group intact and develops a spirit of cooperation. A good leader is also able to coordinate the activities of the followers and induce them to work with confidence and zeal.
According to Keith Davis,“Without effective leadership, an organizations is but a muddle of men and machines. Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates it towards goals. Management activities such as planning, organizing and decision –making are dormant cocoons until the leader triggers the power of motivation in people and guides them towards goals. Leadership transforms potential into reality. It is the ultimate act which brings to success all of the potential that is in the organization and its people”.
4. DEFINITION AND MEANING OF LEADERSHIP
Leadership is a great quality and it can create and covert anything. Some of the definition of leadership are reproduced below:
“Leadership” according to Alford and Beatty, “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 behavior of the individual whereby they guide people on their activities in organized efforts”.
5. NATURE AND CHARACTERISTICS OF LEADERSHIP
An analysis of the definition stated above delineates the following characteristic features of leadership.
Leadership is an inherent personality trait which distinguishes the leaders from the non leaders.
Leadership can be exhibited only when there are followers.
Leadership is a process of influencing inspiring and motivating the people in the organization.
It aims at creating an enabling organization culture which strives towards turning the vision into reality.
Different Leadership styles are followed under different set of situations.
Leadership is all about directing and guiding the human resources in an organization.
6. IMPORTANCE OF LEADERSHIP
The corporate world is replete with examples of exemplary leaders who have been instrumental in making their organizations what they are today.
The following points highlight the importance of leadership
1. Leadership is the process of influencing the activities of an individual or a group towards the achievement of the predetermined goals.
2. An effective leader motivates the subordinates for higher level of performance under all circumstances.
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. leadership helps in the effective use of formal authority.
5. Leadership creates confidence in the subordinates by giving them proper guidance and advice.
6.1 Importance of leadership : Lessons from ‘Chak De India’.
The importance of leadership can be well understood from the film ‘ Chak De India’, which is a story of a hockey legend Kabir Khan who exhibited exceptional leadership skills and lead his team of sixteen girls to win the world cup in spite of all the odds . The film showcases the significance of effective leadership and how goals can be achieved through teams under dynamic leadership. Similarly all organizations and its employees should work towards a common vision and be a part of a TEAM that believes in creating a World Class Organization.
The importance of leadership (coach kabir khan ) can be understood by the very fact that ,
A leader is the person who made them realize their own potential……
By having a Right Attitude and A positive body language which can make a huge difference….
Who motivates the team by showing the Power of Expectations ( showing confidence in the teams abilities and their success )
By Strategizing every move and knowing what he want to achieve… through his teams By Harnessing the right talent for the right job at the right time.
7. LEADERSHIP IN THE NEW MILLENNIUM
As one progress towards the 21st century, while aspects of management will still be very necessary, there will be a tremendous premium on leadership.
To be successful in the future, we need to operate as a leader than a manager.
Lawrence M. Miller, President of the Miller Consulting Group says,
7.1 Evolution from Leadership to Exceeder ship
Stephen Burr, HR Head – GSK says that the fast-growing international environment is giving way to a new concept; Exceeder ship which entails Embedding the desire to surpass targets into the business mindset and performance. It’s all about developing a performance driven culture with a can-do attitude, where there is a trust, focus, innovation and integrity, and where people are positive and optimistic, and are empowered to make decisions.
According to Russell-Greig, President GlaxoSmithKline, Exceeder ship means the drive to go well beyond the agreed targets, doing the bold, the unexpected, the creative; an intolerance of mediocrity, encouraging radical, risk-taking ventures; and developing a resilient, unrelenting positive attitude.
7.2 Current And Future Paradigms For Top Leadership
The leadership in the new millennium calls for the following characteristics to lead the organizations towards higher objectives and transcend them from Good to Great.
This would be possible only when the top management exhibits its genuine concern for the development of its people who are at the core of the very existence of the organization.
• Being a leader
• Being a coach and facilitator
• Empowering people
• Distributing leadership
• Aligning with vision and strategy
• Guiding with shared values and a healthy culture
• Building “relationship power” and networked teams
• Gaining commitment
• Focusing on quality, service and customers
• Collaborating and unifying
• Fostering interdependence
• Respecting and leveraging diversity
• Continuously learning and innovating
• Being globally competitive
• Having a broader focus:
• “My team, my company, my community, my world”
8. LEADERSHIP STYLES
Let’s have a look at the different styles of leadership and their commitment to development of their human resources. Leadership styles may be classified into four categories:
1. Benevolent or paternalistic,
2. Critical or task centered,
3. Developmental or self dispensing.
4. Level 5 Leadership Style
1. Benevolent or paternalistic Leadership style
A Benevolent Head is like a father figure, who nurtures and takes care of all the needs of its people. He believes in understanding them and treating them with affection, giving them instructions from time to time to meet the goals. He values relationships even at the cost of task which hampers the effectiveness of the organization. Azim Premji, CEO Of Wipro is known to be a benevolent leader.
2. Critical Or Task Centered Leadership Style
A Critical Head is someone who believes that people are by nature lazy and shirk work (theory X) unless they are followed and supervised closely. He believes in watching them at every step, checking them and even at times reprimanding them and showing his dissatisfaction towards their work.
3. Developmental or Self Dispensing Leadership Style
A Developmental Head is the one who believes in the competence of his people ( theory Y) and thereby educates them and makes them independent, believing that his success lies in making himself dispensable in their lives .
Suitability of the leadership style
It would be interesting to note that the benevolent and the critical leadership styles are not conducive to the organizations health and HRD. While on the one hand benevolent leadership makes them dependent on the leader, the critical leadership style makes them feel incompetent. Thus these leadership styles should be used depending upon the situation and the developmental style should be used more often. When a leader is using a developmental style, he dons upon himself the role of a supportive and a directive leader depending upon the competence and the commitment of his people towards the organization.
Figure 1, exhibits the leadership behavior depending upon the employee’s competence and commitment.
When the leader is high on supportive behavior, he is supporting the people who are showing high competence interspersed with variable levels of commitment and coaching people who have some level of competence and commitment.
On the other hand when the leader is exhibiting directive behavior, he is empowering his people who are exhibiting high levels of competence and commitment and directing the people who are showing low level of competence but have high level of commitment for the organization.
Figure 1: Leadership Behavior Depending Upon Employee’s Competence and Commitment.
4. Level 5 Leadership Style
Jim Collins in his book GOOD TO GREAT has emphasized that the key to an organization’s journey from good to great starts with having a Level 5 leadership style , a leader who blends genuine personal humility with intense professional will. We are all witnesses to these great men who have transformed their organizations from good to great. Let’s us try to understand the concept of level 5 leadership as sketched out below.
“Level 5” is the highest level in a hierarchy of leadership capabilities. Leaders at the other four levels in the hierarchy can produce high levels of success but not enough to elevate organizations from mediocrity to sustained excellence. At level 1 , he is a highly capable individual, when he becomes a good team player, he reaches the level 2, when he becomes highly competent, he reaches level 3 , when he is effective in his dealings , he reaches level 4 and when he exhibits all the four levels along with great humility and exceptional professional will, he becomes a level 5 leader. See Figure 2
Figure 2: The Levels of Leadership
Good-to-great transformations don’t happen without Level 5 leadership. Level 5 is not the only requirement for transforming a good organization into a great one. The Other factors include getting the right people on the bus (and the wrong people off the bus) and creating a culture of discipline. There are other “drivers”, combined with Level 5 – the combined package which takes the organization beyond unremarkable; These drivers are;
1. The First Who
2. The Stockdale Paradox,
3. The Buildup-Breakthrough Flywheel,
4. The Hedgehog Concept
5. The technology accelerators
5. A Culture of Discipline
1. The First Who
The ability to identify and put the right man at the right place, Good-to-great leaders start with people first and then deal with vision and Strategy second. They get the right people on the bus, Move the wrong people off, Usher the right people to the right seats, and determine where to drive it.
2.The Stockdale Paradox
The ability to sustain through the toughest times by holding on to their believes. Named after Admiral James Stockdale, winner of the Medal of Honor who survived for 7 years in a Viet Cong POW camp by hanging on to two contradictory beliefs; His life couldn’t be worse at the moment, and his life would someday be better than ever. Good-to-great leaders confront the most brutal facts of their current reality, yet simultaneously maintain absolute faith that they will prevail in the end. They hold both disciplines – faith and facts – at the same time, all the time.
3. Buildup-Breakthrough Flywheel
The ability to take up one thing at a time with passion and rigor .Good-to-great transformations do not happen overnight or in one big leap rather, it starts one movement at a time, gradually building up momentum, till there is a breakthrough. Mediocre organizations never sustain the breakthrough momentum but instead lurch back and forth with radical change programmes, reactionary moves and restructuring.
4. The Hedgehog Concept
The ability to find out what is the best for its organization and its people. It is well known that a hedgehog knows only one big thing very well, the hedgehog is simple and the hedgehog wins. He knows what best ignites the passion of its people and work towards it, it knows the competitive and core strengths of its organization and helps it in achieving its goals through people and it knows very well what is the best for the organization in both monetary and non monetary terms. See figure 3.
Figure 3 : The Hedgehog’s Understanding of the Organization and Its People
5. Technology Accelerators
The ability to make right decisions with regard to the adoption of new technology Good-to-great organizations have a paradoxical relationship with technology. On the one hand they avoid jumping on new technology bandwagons. On the other they pioneer the application of carefully selected technologies, making bold farsighted investments directly linked to their hedgehog concept.
6. A Culture of Discipline
An ability to create and sustain a culture of utmost discipline in the organization. Good-to-great organizations have three forms of discipline, combining a culture of discipline with an ethic of entrepreneurship results in great performance
Disciplined people – you don’t need hierarchy,
Disciplined thought – you don’t need bureaucracy, and Disciplined action – you don’t need excessive controls
Level 5 Leaders exhibit a Compelling Modesty and An Unwavering Resolve
Level 5 leaders are extremely modest. They don’t talk about themselves They would talk about the organization, about the contribution of others and Instinctively deflect discussion about their own role.
Besides extreme humility, Level 5 leaders also display tremendous professional will. They possess inspired standards, cannot stand mediocrity in any form, and utterly intolerant of anyone who accept the idea that good is good enough. See figure 4 & 5.
Figure 4 . Level 5 Leaders: Humility and Professional Will
Figure 5 : The Yin and the Yang of Level 5
Level 5 Leadership and their role in Succession Planning
The role of transformational leaders and level 5 leaders in organizations is amply manifested in their earnest efforts to succession planning for the organization which is one of the highly significant endeavors by the top management.
Level 5 leaders have ambition not for themselves but for their organizations
They routinely select superb successors. E.g Ratan Tata chose Cyrus Mystry as his successor, Bill gates chose Satya Nadella as his successor to Microsoft, Jack Welch chose Jim McNerny for GE (see exhibit below) , the top management at Infosys has of course been a pioneer in doing succession planning on time with Narayan Murthy passing on the reins to Nandan Nilekeni, then to S Gopalakrshnan and now S. D.Shibulal ( due to retire in 2015)
They want to see their organizations become even more successful in the next generation long after they are gone. (Remember Steve jobs planned out everything for apple well in advance before leaving this world).They are Comfortable with the idea that most people won’t even know that the roots of that success trace back to them, On the other hand Level 4 leaders often fail to set up the organization for enduring success …..What better way to demonstrate your personal greatness than that the place falls apart after you leave.
9.SUMMARY
Leadership has been understood as a phenomenon which is responsible for transforming the good organizations into great organizations. The most effective leaders have a clear sense of mission vision and direction for the business and have an ability to communicate it to their followers. They also have an incredible knack for motivating and inspiring people in the organization by being a role model them self by walking the talk and have a tremendous measure of adaptability. The corporate world is replete with examples of leaders who have been instrumental in making their organizations what they are today.
There is a new concept called Exceeder ship which entails Embedding the desire to surpass targets into the business mindset and performance. It’s all about developing a performance driven culture with a can-do attitude, where there is a trust, focus, innovation and integrity, and where people are positive and optimistic, and are empowered to make decisions.
There are four Leadership styles which have been discussed in the lesson; Benevolent leadership , where the Head is like a father figure, who nurtures and takes care of all the needs of its people, Critical or task centered Head is someone who believes that people are by nature lazy and shirk work (theory X) unless they are followed and supervised closely, a Developmental Head is the one who believes in the competence of his people ( theory Y) and thereby educates them and makes them independent, the Level 5 Leadership Style where the a leader blends genuine personal humility with intense professional will.
Learn More:
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- A.G Jagpo and Victor H. Vroom, “Hierarchical Level and leadership style” Organizational Behaviour and Human Performance No. 18 (1977).
- Fred E. Fiedler, “A Theory of Leadership Effectiveness”. McGraw Hill, New York (1967).
- Stephen P. Robbins, Organizational Behaviour, Concepts, Prentice Hall, India
- Gray Desslar, Organization Theories, Prentice Hall, India .
- L.M. Prasad, Management Process and Organizational, Sultan Chand & Sons