CHAPTER –ONE

Introduction to leadership
1.1. Definition of leadership
 Leadership can be defined in different ways according to different writers. Some are:
Combination of qualities by the position of which the person is able to get the things done
because of his influence when they are willing to d0 Capability of the person to act in formal
and informal set up
 Leadership is the process of influencing others toward the achievement of organizational
objectives. This definition recognizes that leadership is typically an ongoing activity, is
oriented toward
 having an impact on the behaviors of others, and is ultimately focused on realizing the
specific aims of the organization.
 Leadership is the process of influencing a group or individual to set a goal or achieve a goal.
It is a process involving the leader, the led (group or individual), and a practical goal or a
situation. It is behavioral in nature and involves personal interaction.
 Leadership is the art of influencing people so that they will strive willingly and
enthusiastically toward the achievement of organizational or group goals.
 Leadership is the ability to secure desirable actions from a group of followers voluntarily
without the use of coercion or force.
 As we can see from the above definitions, leadership has three ingredients: leader, led
(follower) and goal (situation) – organizational Environment.
 Leader: - the one with the ability to understand others’ motivation and to inspire them with
the ability to create a climate for motivation. The person who guides or influences the
behavior of others is called “leader” and people influenced are called “followers”.
 Follower (led) - the individuals being led or influenced
 Environment- the working environment in which the leader interacts with the followers.
 Leading is the management function aimed at setting the members of an organization move in
the direction that will achieve its objectives. Directing builds a climate, provides leadership
and arranges the opportunity for motivation
 . Leading is not deriving or pushing from behind; it is placing oneself before the group and
facilitating progress and inspires followers to accomplish organizational (group) objectives.

Leadership has different meanings by different authors.

E.g. According to KOONTZ AND O'DONNELL
• “… 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 upon
their ability to provide 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 BARNAR“… refers to the quality of the behavior of the individual
whereby they guide people on their activities in organized efforts".
"a leader shows the way by his own example. He is not a pusher, he pulls rather than pushes".
“… is not making friends and influencing people i.e., salesmanship. Leadership is the lifting of man's
vision to higher sights, the raising of man's performance to higher standards, the building of man's
personality beyond its normal l;;;;;;;;;;;;;;;;;;;;;;imitations".
ACCORDING TO LOUIS A ALLEN; "A leader is one who guides and directs other people. He
gives the efforts to his followers a direction and purpose by influencing their behavior".
ACCORDING TO 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".
Breaking this down even more, while there are a variety of leadership definitions out there, there
are specific components that are central to the majority of these definitions. Leadership:
 Is a process▶▶
 Involves influence▶▶
 Occurs in a group context (you need to have at least one constituent)▶▶
 Involves goal attainment▶▶
No matter how you operationalize leadership, these components play some small role in the
definition or theory utilized.
A leader is "a person who influences a group of people towards the achievement of a goal". A
mnemonic for this definition would be 3P's - Person, People and Purpose as illustrated by the
following diagram.

Person
Is leadership a position of office or authority? Or, is leadership an ability in the sense that he is a
leader because he leads? We all may know or hear of people who are in positions of leadership
but who are not providing leadership. A position of office is no guarantee of leadership but it
helps in the sense that a leadership position usually commands a listening ear from its people and
that is a good starting point for anyone who desires to be a leader. A leader by its meaning is one
who goes first and leads by example, so that others are motivated to follow him. This is a basic
requirement. To be a leader, a person must have a deep-rooted commitment to the goal that he
will strive to achieve it even if nobody follows him!
People
Effectiveness in leadership has been attributed to (1) persuasion skills, (2) leadership styles and
(3) personal attributes of the leader.
Purpose
A requirement for leadership is personal vision - the ability to visualize your goal as an
accomplished fact; a thing already achieved.
"The very essence of leadership is that you have to have vision. You can't blow an uncertain
trumpet."
FORMAL AND INFORMAL LEADERSHIP:-
Formal leadership occurs when a manager leads by exercising formal authority. The exercise of
formal authority through such acts as assigning duties derives, from the manager’s official
position within the organization’s hierarchy of authority.
Informal leadership arises when a person without formal authority is influential in directing the
behavior of others.
Managers themselves may act as formal leaders in some situations and as informal leaders in
some situations. When acting as a formal leader, the manager follows the chain of command and
exerts influence downward in the hierarchy of authority from manager to subordinates. But when
acting as informal leader, the manager influences employees outside the formal organizational
chain of command.
1.2. Leadership versus Management

Leadership:- Leadership is the process of encouraging / influencing and helping others to work
enthusiastically towards objectives.
Leadership and management:- Management is a process of planning, organizing, coordinating,
directing and controlling the group activities to accomplish organizational goals . Leadership is a
part of management.
Leadership Management

Exist in both formal and informal groups Only in formal group

Directing role is played Performs all managerial functions

Not a manager May be a leader

Leader leads people Manager manages things.

Leader can use his informal influence Managers hold formal positions

Leaders inspire others to achieve results Managers achieve results by directing the
activities of others

Leader inspires enthusiasm ( strong feeling of Managers engender fear. (Subordinates obey
Interest, eagerness) out of fear).

Leaders have followers Managers do not have

 The main job a leader is to satisfy his followers The main aim of a manager is to
meet organizational goals.

Any one can become a leader in an organization But management is confined to

people in particular position

Leaders versus Managers

 The manager administers; the leader innovates.
 The manager maintains; the leader develops.
 The manager accepts reality; the leader investigates it.
 The manager focuses on systems and structures; the leader focuses on people.
 The manager relies on control; the leader inspires trust.
 The manager has a short-range view; the leader has a long-range perspective.
 The manager asks how and when; the leader asks what and why.
 The manager has his or her eye always on the bottom line; the leader has his or her eye
on the horizon.
 The manager imitates; the leader originates.
 The manager accepts the status quo; the leader challenges it.
 The manager is the classic good soldier; the leader is his or her own person.
 Managers have subordinates
By definition, managers have subordinates - unless their title is honorary and given as a mark of
seniority, in which case the title is a misnomer and their power over others is other than formal
authority.
 Authoritarian, transactional style
Managers have a position of authority vested in them by the company, and their subordinates
work for them and largely do as they are told. Management style is transactional, in that the
manager tells the subordinate what to do, and the subordinate does this, because they have been
promised a reward (at minimum their salary)
Work focus
Managers are paid to get things done (they are subordinates too), often within tight constraints
of time and money. They, thus naturally pass on this work focus to their subordinates.
 Seek comfort
An interesting research finding about managers is that they tend to come from stable home
backgrounds and led relatively normal and comfortable lives. This leads them to be relatively
risk-averse and they will seek to avoid conflict where possible. In terms of people, they
generally like to run a 'happy ship'.

 Leaders have followers

Leaders do not have subordinates - at least not when they are leading. Many organizational
leaders do have subordinates, but only because they are also managers. But when they want to
lead, they have to give up formal authoritarian control, because to lead is to have followers, and
following is always a voluntary activity.
 Charismatic, transformational style
Telling people what to do does not inspire them to follow you. You have to appeal to them,
showing how following them will lead to their hearts' desire. They must want to follow you
enough to stop what they are doing and perhaps walk into danger and situations that they would
not normally consider risking. Leaders with a stronger charisma find it easier to attract people
to their cause. As a part of their persuasion, they typically promise transformational benefits,
such that their followers will not just receive extrinsic rewards but will somehow become better
people.

 People focus
Although many leaders have a charismatic style to some extent, this does not require a loud
personality. They are always good with people, and a quiet style that give credit to others (and
takes blame on themselves) are very effective at creating the loyalty that great leaders engender.
Although leaders are good with people, this does not mean they are friendly with them. In order
to keep the charisma of leadership, they often retain a degree of separation and unfriendliness.
This does not mean that leaders do not pay attention to tasks - in fact they are often very
achievement-focused. What they do realize, however, is the importance of enthusing others to
work towards their vision.

 Seek risk
In the same study that showed managers as risk-averse, leaders appeared as risk-seeking,
although they are not blind risk seekers. When pursuing their vision, they consider it natural to
encounter problems and hurdles that must be overcome along the way. They are thus
comfortable with risk and will see routes that others avoid as potential opportunities for
advantage and will happily break rules in order to get things done. In general, both leaders and
mangers are fundamentally different types of personalities. Both make a valuable contribution
to an organization, and each one’s contribution is different.

How leaders influence others?

Why do people accept the influence of a leader? One major reason is that leaders have power. Power
is the capacity to affect the behavior of others, in other words, power is the ability of individuals or
groups to induce or influence the beliefs or actions of other persons or groups. It is a resource or
patronage an individual has at his/her disposal to stage-manage others towards a wanted behavior.
Having power can increase the effectiveness of a manager by enabling the manager to influence
people to what is wanted. Leaders in organizations typically rely on some or all of five major types of
power: legitimate, reward, coercive, expert and referent.
Legitimate power/position power: refers to the power a leader possesses as a result of occupying a
particular position or role in the organization, i.e. it is a power that stems from a position’s placement
in the managerial hierarchy. It corresponds to authority. Legitimate power exists when a subordinate
or the influenced acknowledges that the influencer has a “right” or is lawfully entitled to influence
within certain bounds. It is related to the position, rather than to the person personality, so it is clearly
a function of the leader's position in the organization and is completely independent of any of the
leader's personal characteristics. Thus, the higher a manager is in the organizational hierarchy, the
greater is the “perceived power” thought by subordinates.
1. Reward Power: refers to the leader's capacity to give or withhold rewards for followers. It is
based on the capacity to control and provide valued rewards to others. Rewards that may be under the
 control of individual manager include salary increases /pay raises, bonus, interesting projects,
promotion recommendations, a better office, support for training programs, assignments with high
responsibility in the organization, recognition, positive feedback etc. Purchasing agents, with little
position power; might be able to exercise considerable influence by their ability to expedite or delay a
much-needed spare part. Or University professors have considerable reward power; they can grant or
withhold high grades. The greater a manager’s control over valued rewards, the greater the manager's
reward power and the more power to influence.
2. Coercive Power :is a power based on fear. It is the negative side of reward power. Coercive
power is the ability to coerce or punish the influences/followers when they do not engage in
desired behaviors. Forms of coercion or punishment include criticisms, terminations,
reprimands, suspensions, warning letters that go into an individual’s personnel file, negative
performance appraisals, demotions and withheld pay raises; (punishment may range from loss
of a minor privilege to loss of one's job). Coercive power is usually used to maintain a
minimum standard performance or conformity among subordinates. The greater the freedom
to punish others, the greater a manager’s coercive power. And the more coercive power a
manager uses, the more resentment and opposition s/he faces from subordinates.
3. Expert Power: - refers to power that a leader possesses as a result of his or her knowledge
and expertise regarding the tasks to be performed by subordinates. It is power based on the
possession of expertise, knowledge, skill or information. To the extent that a leader possesses
expertise and information that is needed or desired by others, the leader has expert power.
Physicians, lawyers, and university professors may have considerable influence on others
because they are respected for their special knowledge. A manger who is capable of achieving
an important methodological break through that no other companies dreamed of and a
secretary who knows how to unreveal or reveal bureaucratic red tape all have expert power
over any one who needs that information.
5. Referent Power / Charismatic Power: is power that results from being admired, personally
identified with or liked by others. When we admire people, want to be like them, or feel friendship
toward them, we more willingly follow their directions and exhibit loyalty toward them. For
example, a Movie Star, a Great Athlete, a Great Football Player, a Musician or a Military Hero might
possess considerable referent power.
 The strength of referent power is directly related to such factors as the amount of prestige and
admiration the influence confers up on the influencer.
 The more that a leader is able to cultivate the liking, identification, and admiration of others,
the greater the referent power.
 The more power a leader has at his/her disposal, the more likely that s/he will be successful in
influencing followers to do the work assigned to them except coercive power.

Authority versus Power

Authority Power
 It is positional: it will be there when the  It is personal-it exists because of the person.
incumbent leaves.  Broader
 Narrower – it is one type of power  Some types of power do not change (Expert,
 It changes with changes in position. referent) but some change legitimate,
 Authority is delegated to an individual reward, coercive.
 Not all power types can be delegated
(Expert and referent).
1.3. What makes effective leader?
How to be an effective leader?
Leader does not mean imposing will on unwilling working under one in an office or a factory. In
practice, people are always impressed by something extraordinary and great and are prepared
to follow it, if it really touches their hearts. Thus leadership needs to win the hearts of others
to attain some desired goals.
Factors that influence leadership effectiveness are-
(i) Mental and physical health:- A healthy mind rests in a healthy body. A leader needs to have
sound health both mental and physical to be able to bear the pulls and pressures of his role as
leader. He must also possess stamina and balanced temperament.
(ii) Intelligence and knowledge:- A leader should have required knowledge and professional
competence and has to update continuously.
(iii) Clear-cut and worthy goals:- Actions without clear cut directions leads no where. Hence, a
leader needs to be very clear in mind about what to achieve, how to achieve and then reinforce it
by a strong will power and conviction.
(iv) Sense of responsibility:- A leader must have sense of responsibility for the task assigned to
him.
(v) Motivation:- A leader needs to have capacity to appreciate others and look at things from his
subordinates angle.
(vi) Initiative and drive:- Passive goodness of leader is never helpful unless it is action-oriented
and result producing. Initiative and drive are, therefore, the essential pre-requisites of effective
leader.
(vii) Conviction:- There are millions with opinions but very few with convictions. Leader must
have courage of conviction to impress upon his subordinates.
Passion
An effective leader is a person with a passion for a cause that is larger than they are. Someone
with a dream and a vision that will better society, or at least, some portion of it. Also, without
passion, a leader will not make the necessary courageous and difficult decisions and carry them
into action. This is not to imply that all decisions are of this nature. But you can be sure, some of
them will be. The leader without a passion for a cause will duck.
Holder of Values
Leadership implies values. A leader must have values that are life-giving to society. It is the only
kind of leadership we need. This then also implies values that are embedded in respect for others.
So often we think of people skills or caring about people as being “warm and fuzzy.” I think a
leader can be of varying ‘warmth and fuzziness,” but a leader has to respect others. You can’t
lead without it. Otherwise we are back to manipulation. Respect means also that one can deal
with diversity -- a critical need for a leader in today’s world -- probably always has been,
although diversity may have been more subtle in the homogenous societies of the past.
Vision
This is a bit different than passion, but in other ways it isn’t separable. If one doesn’t care about
a subject, an issue, a system, and then one won’t spend the time thinking about how it could or
should be different. Yet, one could have strong feelings about something and not good ideas,
particularly if she didn’t spend a good deal of time studying the topic. Thus a leader has to have
some ideas about change, about how the future could be different. Vision then is based on two
components that leaders also need: creativity and intellectual drive.
Creativity
One has to try to think out of the box to have good visions and to come up with effective
strategies that will help advance the vision. I’d also add here the need for a sense of humor. It’s a
creative skill that is in great need by leaders. We should read the funnies more!
Intellectual Drive and Knowledge
I believe a leader has to be a student. In general it is hard for a leader to be around enough other
leaders to pick this up just through discussion, so I think a leader has to be a reader and a learner.
Furthermore, I can’t see someone leading in a field they know nothing about.
Confidence and Humility Combined
While one can have a great vision and good ideas for change, and even passion for it, if one isn’t
confident, then action will not occur. Without action, there is no change. Yet, paradoxically, a
leader needs to have humility. No matter how creative and bright one is, often the best ideas and
thinking are going to come from someone else. A leader needs to be able to identify that, have
good people around who have these ideas. This takes humility, or at least lack of egocentricity.
The leader is focused on the ends and doesn’t have to see herself always as the conduit or creator
of the strategy to get to that end.
Communicator
None of the above assets will work for a leader if she can’t speak or write in a way to convince
others that they should follow along, join the team, get on board. All the above gets to the old
adage that a leader knows how to do the right thing and a manager knows how to do things right.
But a leader has to be a manager, too. I don’t think these skills and abilities can be separated out
very easily. Both need to be in the mix. Thus a leader has to be some of the following, too:

Planner/Organizer
Someone who can see what needs to be done and help the team plan and organize the getting it
done. Management is getting things done through people. While a writer or other visionary
person may be very influential, even seminal for the cause of change, this is not quite my
definition of a leader. A leader means to me, someone who is taking action, trying to get others
to do something they want to see done.
Interpersonal Skills
Leaders must have the ability to act in an interpersonally competent manner, yet they also need
to learn the techniques of good listening, honest and open communication, delegating, conflict
resolution skills, etc., to actually get work done and keep the whole
movement/organization/project together.
Some common characteristics and behaviors of effective leaders are as follows:
 Efficient coaching skills
 Confidence
 Consistency between word and action – “walking the talk”
 Creativity
 Empathic listening skills
 Being visionary
 Inspiring
 Long-term focus
 Maintaining a balance
 between individual needs and team needs
 Awareness of realistic conditions
 Strong self-esteem
 Sense of priorities
 Service mentality
 Sincerity
 Technical or contextual expertise
 Trust
 Willingness to share responsibility
 Willingness to share credit or recognition
1.4. Importance of leadership for good governance and development
In today’s fast-changing world, leadership issues are getting increasing importance in
government organizations - both at policy and implementation level. A sense of urgency is being
experienced to improve the performance of our public organizations to meet the interests and
expectations of the nation and the citizens. And there is realization that it is effective leadership
that can help government organizations make the critical transition from intention to
implementation, potential to performance, and policy to practice.
To enhance the effectiveness of the government, the country has undertaken structural and
management reforms to better align public services with the needs of contemporary society. But
we find that attempts to actually implement these reforms and improve things after such reforms
run into predictable hurdles of ‘mindset’ and ‘culture’ problems. A common complaint is lack of
dedication and lack of commitment to the underlying values of public service and the interests of
the citizens served. To align the mindset and culture to the demands of organizational challenges,
leadership is often suggested as a solution.
The Organization for Economic Co-operation and Development (OECD) describes governance
as the way in which the underlying values of a nation (usually articulated in some way in its
constitution) are institutionalized. This may include formal aspects such as separate powers,
checks and balances, transparency, accountability and responsiveness. However, for these values
to be realized in actual practice, they must guide the actions of public officials throughout the
system.
Functions of leadership or role of leader in organisaion
(a) Developing team work:- Leader has to develop and combine his followers as a team. He has
to create a healthy working environment for his team.
(b) Representing the team:- He serves as a linking pin between his team members and
management. If requires, he communicates the problems of his subordinates to the management,
and also helps in problem solving.
© Counseling the workmen:- When team members face problems in doing they seek guidance
and advance from their leader. The problem may be technical or emotional in nature.
(d) Managing the team:- The leader has to ensure the timely completion of activities undertaken
by his / her team members.
(e) Using proper power:- He has to exercise his power and authority over his subordinates as per
the demand of the situation.
(f) Securing group effectiveness:- The leader needs to provide for a reward system to improve
the efficiency of capable workmen, delegate authority and invite participation in decision
making.

Leadership Challenges

The organizations in the government have to be sensitive to the major shifts in the environment,
as briefly discussed below:
• Globalization: There is a need to review the implications of increasing globalization of
economic and social policies. This creates a need for new capacities to exploit new opportunities
and to deal effectively with new threats.
• Decentralization: With greater decentralization of national policies, there is increasing
fragmentation of policy responsibilities. This poses major challenges of policy coordination,
accountability and coherence.
• Rapid changes in technology: With development of information and communication
technologies, it is possible for governments to cope with new problems in a swift, transparent
and flexible manner.
In addition to the above, Robert D. Behn enlists eight great challenges for top public executives:
the leadership challenge, the strategy challenge, the performance challenge, the motivation
challenge, the collaboration challenge, the accountability challenge, the learning challenge
and the external-communication challenge.

He argues that leadership challenge requires the articulation of an inspiring mission, personal
persistence and a commitment of generating enthusiasm among employees. Strategy challenge
requires leaders recognize the true purpose to be achieved and an understanding of how people
and organizations behave and also the ability to match behavior to purposes by crafting concrete
yet subtle organizational endeavors that will, directly, indirectly, influence people to help
achieve those purposes.
Performance challenge requires the establishment of specific output targets that people are
charged with producing and a conscious theory about how the organization’s outputs contribute
to the desired outcomes.
Motivational challenge is the mobilization of individual and collective efforts to produce
results.
The collaboration challenge is the cooperative work with other (public, nonprofit, and private)
organizations that have similar, yet not identical, missions to achieve broader, overlapping
purposes.
Accountability challenge is the necessity for public organizations to abide by the rules for
finances and fairness while, at the same time, producing real results.
The learning challenge is the uncovering basic principles of action, management and leadership
from a plethora of details in new and very specific circumstances followed by the application of
these general principles in new situations.
The external-communication challenge is the enlisting of support for the organization’s
mission, strategies, targets, and activities from a diversity of stakeholders.
Leadership at different levels: In traditional hierarchy, leaders are considered to be those very
few people in higher positions. But increasingly, it is being realized that leadership is required at
different levels in the hierarchy as outlined below:
1) Strategic Leadership: This is required at the higher levels. This involves strategic thinking,
political savvy, vision, external awareness, influencing or negotiating, and cultural awareness.
2) Team Leadership: This is required at the middle level more than others. At this level, project
management, team building and interpersonal skills are crucial.
3) Technical/Functional Leadership: This is required at lower levels. This emphasizes
professional and technical skill.

Set by ,Gemehu wrkina *MBA*