Stee Studies
Module 03
LEADERSHIP AND SOCIAL RESPONSIBILITIES OF BUSINESS
MEANING OF LEADERSHIP
Leadership is an important aspect of managing. Leadership is defined as "Influence, that
is, the art or process of influencing people so that they will strive willingly and enthusiastically
towards the achievement of group goals". (Koontz and Weihrich) In other words, people should
be encouraged to develop not only willingness to work but also willingness to work with zeal
and confidence.
"The will to do is triggered by leadership and lukewarm desires for achievements are
transformed into burning passion for successive accomplishment by the skillful use of
leadership" (George R Terry). "Leadership is the lifting of man's visions to higher sights, the
raising of man's performance to a higher standard, the building of man's personality be-yond its
normal limitation". (Peter Drucker) "Leadership is the ability to secure desirable actions from a
group of followers voluntarily without the use of coercion." (Alford and Beatty) "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". (Keith Davis)
Trait is basically a character and early notions about leadership dealt with personal
abilities. It was believed that some people have leadership qualities by birth or god's gift. The
traits that associate with leadership are identified as: mental and physical energy, emotional
stability, knowledge of human relations, empathy, objectivity, personal motivation,
communication skills, teaching ability, social skills, technical competence, friendliness and
affection, integrity and faith, intelligence etc. This approach has several drawbacks: It failed to
identify right traits required for effective leadership. It is difficult to associate the traits with jobs
to be carried out. A leader who is successful in one area may be a failure in different area. Since
these are subjective, it is difficult to measure their effectiveness quantitatively. This approach
implies that leadership is in-built quality and no training can make a person leader.
,Stee Studies
DIFFERENCE BETWEEN A LEADER AND A MANAGER
1. A person emerges as a leader. The question whether he will or will not emerge as leader
always depends on a number of situational factors. A manager, on the other hand, is always
put into his position by appointment.
2. A leader always has some personal power (i.e., ability to influence) that enables him to
lead. He may or may not have positional power (i.e., the right to command). A manager, on the
other hand, always has some positional power He may or may not have personal power. If he
has also personal power, then he will be that much more effective as a manager.
3. A leader focuses on people and generally seeks those very objectives which are the
objectives of his followers. Thus there is mutuality of objectives between the leader and his
followers. A manager, on the other hand, focuses on systems and structures and seeks those
objectives which his subordinates do not regard as their own. Thus there is clash of objectives.
4. A leader generally looks at the horizon and not just the bottom line. He is innovative,
challenges the status quo and believes in doing right things. A manager, on the other hand, is
generally bureaucratic, accepts the status quo and believes in doing things right, according to the
rules, to cope with complexity.
It should be noted that in today's changing business environment, notwithstanding the
above difference, even managers are in leadership roles. Therefore, in this chapter, the terms
'leaders' and managers' are used interchangeably.
CHARACTERISTICS OF LEADERSHIP
Some important characteristics of leadership are as follows.
1. Leadership implies the existence of followers
We appraise the quality of a person's leadership in practice by studying his followers. We
ask: How many and what kind of followers does he have? How strong is their commitment as a
result of his leadership? How long will their commitment last? By answering questions of this
nature we get to know the quality of leadership. We must not, however, forget that leaders
within organizations are also followers. The supervisor works for a branch head, who works for
, Stee Studies
a division manager, who works for the vice- president of a department and so on. Thus, in
formal organizations of several levels, a leader has to be able to wear both hats gracefully, to be
able to relate himself both upward and downward.
2. Leadership involves a community of interest between the leader and his
followers
In other words, the objectives of both the leader and his men are one and the same. If the
leader strives for one purpose and his team of workers for some other purpose, it is no
leadership. In the words of G.R. Terry, "Leadership is the activity of influencing people to strive
willingly for mutual objectives."
3. Leadership involves an unequal distribution of authority among leaders and
group members
Leaders can direct some of the activities of group members; that is the group members are
compelled or are willing to obey most of the leader's directions. The group members cannot
similarly direct the leader's activities, though they will obviously affect those activities in a
number of ways.
4. Leadership implies that leaders can influence their followers or subordinates in
addition to being able to give their followers or subordinates legitimate directions
In other words, leaders not only tell their subordinates what to do by way of command
but also influence by their behaviour and conduct. The use of command by leaders succeeds
only in bringing about a temporary behavioural change in the followers. Permanent attitudinal
change in followers comes through the use of influence only. According to Hersey and
Blanchard6 leadership of the first type though successful is not effective. The second type of
leadership is both successful and effective.
BEHAVIORAL APPROACH OF LEADERSHIP
Several studies have been made did not agree as to which traits are leadership traits or their
relationship to actual instances of leadership. It is found that most of these so called traits are
Module 03
LEADERSHIP AND SOCIAL RESPONSIBILITIES OF BUSINESS
MEANING OF LEADERSHIP
Leadership is an important aspect of managing. Leadership is defined as "Influence, that
is, the art or process of influencing people so that they will strive willingly and enthusiastically
towards the achievement of group goals". (Koontz and Weihrich) In other words, people should
be encouraged to develop not only willingness to work but also willingness to work with zeal
and confidence.
"The will to do is triggered by leadership and lukewarm desires for achievements are
transformed into burning passion for successive accomplishment by the skillful use of
leadership" (George R Terry). "Leadership is the lifting of man's visions to higher sights, the
raising of man's performance to a higher standard, the building of man's personality be-yond its
normal limitation". (Peter Drucker) "Leadership is the ability to secure desirable actions from a
group of followers voluntarily without the use of coercion." (Alford and Beatty) "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". (Keith Davis)
Trait is basically a character and early notions about leadership dealt with personal
abilities. It was believed that some people have leadership qualities by birth or god's gift. The
traits that associate with leadership are identified as: mental and physical energy, emotional
stability, knowledge of human relations, empathy, objectivity, personal motivation,
communication skills, teaching ability, social skills, technical competence, friendliness and
affection, integrity and faith, intelligence etc. This approach has several drawbacks: It failed to
identify right traits required for effective leadership. It is difficult to associate the traits with jobs
to be carried out. A leader who is successful in one area may be a failure in different area. Since
these are subjective, it is difficult to measure their effectiveness quantitatively. This approach
implies that leadership is in-built quality and no training can make a person leader.
,Stee Studies
DIFFERENCE BETWEEN A LEADER AND A MANAGER
1. A person emerges as a leader. The question whether he will or will not emerge as leader
always depends on a number of situational factors. A manager, on the other hand, is always
put into his position by appointment.
2. A leader always has some personal power (i.e., ability to influence) that enables him to
lead. He may or may not have positional power (i.e., the right to command). A manager, on the
other hand, always has some positional power He may or may not have personal power. If he
has also personal power, then he will be that much more effective as a manager.
3. A leader focuses on people and generally seeks those very objectives which are the
objectives of his followers. Thus there is mutuality of objectives between the leader and his
followers. A manager, on the other hand, focuses on systems and structures and seeks those
objectives which his subordinates do not regard as their own. Thus there is clash of objectives.
4. A leader generally looks at the horizon and not just the bottom line. He is innovative,
challenges the status quo and believes in doing right things. A manager, on the other hand, is
generally bureaucratic, accepts the status quo and believes in doing things right, according to the
rules, to cope with complexity.
It should be noted that in today's changing business environment, notwithstanding the
above difference, even managers are in leadership roles. Therefore, in this chapter, the terms
'leaders' and managers' are used interchangeably.
CHARACTERISTICS OF LEADERSHIP
Some important characteristics of leadership are as follows.
1. Leadership implies the existence of followers
We appraise the quality of a person's leadership in practice by studying his followers. We
ask: How many and what kind of followers does he have? How strong is their commitment as a
result of his leadership? How long will their commitment last? By answering questions of this
nature we get to know the quality of leadership. We must not, however, forget that leaders
within organizations are also followers. The supervisor works for a branch head, who works for
, Stee Studies
a division manager, who works for the vice- president of a department and so on. Thus, in
formal organizations of several levels, a leader has to be able to wear both hats gracefully, to be
able to relate himself both upward and downward.
2. Leadership involves a community of interest between the leader and his
followers
In other words, the objectives of both the leader and his men are one and the same. If the
leader strives for one purpose and his team of workers for some other purpose, it is no
leadership. In the words of G.R. Terry, "Leadership is the activity of influencing people to strive
willingly for mutual objectives."
3. Leadership involves an unequal distribution of authority among leaders and
group members
Leaders can direct some of the activities of group members; that is the group members are
compelled or are willing to obey most of the leader's directions. The group members cannot
similarly direct the leader's activities, though they will obviously affect those activities in a
number of ways.
4. Leadership implies that leaders can influence their followers or subordinates in
addition to being able to give their followers or subordinates legitimate directions
In other words, leaders not only tell their subordinates what to do by way of command
but also influence by their behaviour and conduct. The use of command by leaders succeeds
only in bringing about a temporary behavioural change in the followers. Permanent attitudinal
change in followers comes through the use of influence only. According to Hersey and
Blanchard6 leadership of the first type though successful is not effective. The second type of
leadership is both successful and effective.
BEHAVIORAL APPROACH OF LEADERSHIP
Several studies have been made did not agree as to which traits are leadership traits or their
relationship to actual instances of leadership. It is found that most of these so called traits are
