MODULE - III

FOUNDATIONS OF

GROUP BEHAVIOUR

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 GROUP BEHAVIOUR

Group & Group Behaviour:

• Humans are social animals and hence, form groups wherever they are. This is true
for organizations as well as familial and friendship networks wherein people tend
to congregate in groups and be governed by the norms and rules of the group.
• A group can be defined as two or more interacting and interdependent
individuals who come together to achieve particular objectives.
• A group is a collection of individuals who interact with each other such that one
person’s actions have an impact on the others.
• Group can be defined as a collection of individuals who have regular contact and
frequent interaction, mutual influence, the common feeling of camaraderie, and
who work together to achieve a common set of goals.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 GROUP BEHAVIOUR

What is Group Behavior ?

• A group behavior can be stated as a course of action a group takes as a family.
• Therefore, group behavior in organizations tends to follow the organizational
norms and rules wherein the employees are expected to be disciplined, follow
orders, and work to the requirements of the organization rather than their own
whims and fancies.
• Group behavior is the attitude, feeling and thought of a collection of people that
can be observed or noticed. It is guided by some rules and regulations which may
or may not be so with the individual.
• Elton Mayo and his associates way back in 1920 conducted the famous Hawthorne
experiments and came to know that the group behaviour have major impact on
productivity.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 GROUP BEHAVIOUR

Group Dynamics:
• Group dynamics refers to the attitudinal and behavioral characteristics of a group.
• Group dynamics concern how groups form, their structure and process, and how
they function. Group dynamics are relevant in both formal and informal groups of
all types.
• “Group-dynamics is concerned with the formation and structure of groups and the
way they affect individual members, other groups and the organization.”
• The team “Group Dynamics” is concerned with the interactions and forces among
group members in an organization.

More specifically, it refers to the following issues:

i. How a group has come into being?

ii. Why the group has emerged?

A.M. KHAN , ASST. PROF. , GIFT , BBSR
 GROUP BEHAVIOUR

iii. What is its size and composition?

iv. What are the activities of the group?

v. How members interact and resolve things?

vi. What are the processes used by members to share information, work related
issues?

vii. How members behave and influence each other?

viii. What informal networks are put to use to spread rumors?

ix. How members are reacting to formal leaders, work rules, challenges, etc.?

x. How the informal groups function and affect individual members, other groups
and the organization?

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 GROUP BEHAVIOUR

Group Dynamics – 4 Important Characteristics

(i) Group dynamics describes how a group should be organized and operated. This
includes pattern of leadership and coop­eration.

(ii) Group dynamics consists of a set of techniques such as role playing,

brainstorming, group therapy, sensitivity train­ing etc.

(iii) Group dynamics deals with internal nature of groups, their formation, structure
and process, and the way they affect individual members, other groups and the
organization as a whole.

(iv) Group dynamics refers to changes which take place within groups and is concerned
with the interaction and forces ob­tained between group members in a social
setting

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 TYPES OF GROUPS

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 TYPES OF GROUPS

Types of Groups:
• One way to classify the groups is by way of formality – formal and informal.
• While formal groups are established by an organization to achieve its goals,
informal groups merge spontaneously.
• Formal groups may take the form of
• Command groups,

• Task groups, and

• Functional groups.

1. Command Groups: Command groups are specified by the organizational chart and
often consist of a supervisor and the subordinates that report to that supervisor.
An example of a command group is a market research firm CEO and the research
associates under him.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 TYPES OF GROUPS

2. Task Groups:
• Task groups consist of people who work together to achieve a common task.
• Members are brought together to accomplish a narrow range of goals within a
specified time period.
• Task groups are also commonly referred to as task forces. The organization
appoints members and assigns the goals and tasks to be accomplished.
– Examples of assigned tasks are the development of a new product, the
improvement of a production process, or designing the syllabus under
semester system.
– Other common task groups are ad hoc committees, project groups, and
standing committees. Ad hoc committees are temporary groups created to
resolve a specific complaint or develop a process are normally disbanded after
the group completes the assigned task.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 TYPES OF GROUPS

3. Functional Groups:
• A functional group is created by the organization to accomplish specific goals
within an unspecified time frame.
• Functional groups remain in existence after achievement of current goals and
objectives.
– Examples of functional groups would be a marketing department, a customer
service department, or an accounting department.
• In contrast to formal groups, informal groups are formed naturally and in response
to the common interests and shared values of individuals. They are created for
purposes other than the accomplishment of organizational goals and do not have a
specified time frame. Informal groups are not appointed by the organization and
members can invite others to join from time to time.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 TYPES OF GROUPS

• Informal groups can have a strong influence in organizations that can either be
positive or negative. For example, employees who form an informal group can
either discuss how to improve a production process or how to create shortcuts
that jeopardize quality.
• Informal groups can take the form of interest groups, friendship groups, or
reference groups.

i. Interest Group: Interest groups usually continue over time and may last longer
than general informal groups. Members of interest groups may not be part of the
same organizational department but they are bound together by some other
common interest.
• The goals and objectives of group interests are specific to each group and may not
be related to organizational goals and objectives. An example of an interest group
would be students who come together to form a study group for a specific class.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 TYPES OF GROUPS

ii. Friendship Groups: Friendship groups are formed by members who enjoy similar
social activities, political beliefs, religious values, or other common bonds.
• Members enjoy each other’s company and often meet after work to participate in
these activities. For example, a group of employees who form a friendship group
may have a yoga group, a Rajasthani association in Delhi, or a kitty party lunch
once a month.

iii. Reference Groups: A reference group is a type of group that people use to evaluate
themselves. The main objectives of reference groups are to seek social validation
and social comparison. Social validation allows individuals to justify their attitudes
and values while social comparison helps individuals evaluate their own actions by
comparing themselves to others.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 TYPES OF GROUPS

• Reference groups have a strong influence on members’ behavior. Such groups are
formed voluntarily. Family, friends, and religious affiliations are strong reference
groups for most individuals.

iv. Membership Groups: When a person does belong to a group (formal and informal
groups to which employees actually belong) the group is called a membership
group (or affiliation group) for that person.
• Members of a group have some collection of benefits and responsibilities that go
beyond the groups serving as a reference point.
• In a membership group, each member would be expected to contribute to the
group's well being and would enjoy the benefit arising from the group member's
friendship.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 FIVE STAGE MODEL OF GROUP DEVELOPMENT

Process/Stages of Group Development/Evolution:

• Group Development is a dynamic process. How do groups evolve? There is a
process of five stages through which groups pass through. The process includes the
five stages: forming, storming, norming, performing, and adjourning.

Forming:
• The first stage in the life of a group is concerned with forming a group.
• This stage is characterized by members seeking either a work assignment (in a
formal group) or other benefit, like status, affiliation, power, etc. (in an informal
group).
• Members at this stage either engage in busy type of activity or show apathy.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 FIVE STAGE MODEL OF GROUP DEVELOPMENT

Storming:
• The next stage in this group is marked by the formation of dyads and triads.
• Members seek out familiar or similar individuals and begin a deeper sharing of self.
Continued attention to the subgroup creates a differentiation in the group and
tensions across the dyads / triads may appear.

Norming:
• The third stage of group development is marked by a more serious concern about
task performance.
• The dyads/triads begin to open up and seek out other members in the group.
• Efforts are made to establish various norms for task performance.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 FIVE STAGE MODEL OF GROUP DEVELOPMENT

• Members begin to take greater responsibility for their own group and relationship
while the authority figure becomes relaxed.
• Once this stage is complete, a clear picture will emerge about hierarchy of
leadership.
• The norming stage is over with the solidification of the group structure and a sense
of group identity and camaraderie.

Performing:
• This is a stage of a fully functional group where members see themselves as a
group and get involved in the task. Each person makes a contribution and the
authority figure is also seen as a part of the group.
• Group norms are followed and collective pressure is exerted to ensure the Process
of Group effectiveness of the group.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 FIVE STAGE MODEL OF GROUP DEVELOPMENT

• The group may redefine its goals Development in the light of information from the
outside environment and show an autonomous will to pursue those goals. The
long-term viability of the group is established and nurtured.

Adjourning:
• In the case of temporary groups, like project team, task force, or any other such
group, which have a limited task at hand, also have a fifth stage, this is known as
adjourning.
• The group decides to disband. Some members may feel happy over the
performance, and some may be unhappy over the stoppage of meeting with group
members.
• Adjourning may also be referred to as mourning, i.e. mourning the adjournment of
the group.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Work Teams:
• A team is defined as “people organized to function cooperatively as a group.”
• Some of the characteristics of a team are that it has a
• common commitment and purpose,

• specific performance goals,

• complementary skills,

• commitment to how the work gets done, and

• mutual accountability.

• A team is a relatively permanent work group whose members must coordinate

their activities to achieve one or more common objectives.
• Because achievement of the team's objectives requires coordination, team
members depend on one another and must interact regularly.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 MANAGING TEAMS

Work Teams:
• A work team generates positive synergy through coordinated effort. Their
individual efforts result in a level of performance that is greater than the sum of
those individual inputs.
• Work teams imply a high degree of coordination among their members, along with
a shared belief that winning (achieving team goals) is not only desirable but the
very reason for the team's existence. Any team is therefore a group, but only some
groups have the high degree of interdependence and commitment to success we
associate with a team.
• Although the desire to achieve high levels of commitment and coordination is
common among organizations using teamwork, the nature of specific teams varies
considerably.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Two major dimensions along which teams differ are differentiation of team roles and
integration into the organization.
– Differentiation: is the extent to which team members are specialized relative
to others in the organization.
– Integration: is the degree to which the team must coordinate with managers,
employees, suppliers and customers outside the team.

The use of work teams is widespread in all types of organizations throughout the
world - with good reason.
• High-performance work teams have an advantage over the work of individuals
because each member can offer new ideas, talent and viewpoints.
• In addition, high-performance work teams predictably execute strategy, meet goals
and need little management oversight because they are empowered and
responsible for their functional activity and accountable for performance.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 MANAGING TEAMS

Teamwork Processes
• While the substance of the tasks involved in teamwork may vary from team to
team, there are three processes that are common to how teamwork gets done:
• the transition process,

• The action processes, and

• The interpersonal processes.

During each of these processes, specific sets of activities occur.

1. The transition process is the phase during which a team is formed.

Activities include:
– Mission analysis: establishing an understanding of the overall objective

– Goal specification: identifying and prioritizing the tasks and activities needed
to achieve the mission
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 MANAGING TEAMS

– Strategy formulation: developing a course of action to reach the goals and

achieve the mission

2. Action processes comprise the phase during which a team performs its work.
Activities include:
– Monitoring milestones and goals: tracking progress toward completion of
tasks and activities
– Monitoring systems: tracking the use of resources such as people, technology,
and information
– Coordination: organizing and managing the flow of team activities and tasks

– Team monitoring and support: assisting individuals with their tasks by, for
example, providing feedback and coaching

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

3. Interpersonal processes include activities that occur during both the transition and
action processes. These include:
– Conflict management: establishing conditions to avoid disagreement and
resolving conflict when it occurs
– Motivation and confidence building: generating the willingness and ability of
individuals to work together to achieve the mission
– Affect management: helping team members to regulate their emotions as
they work together

Characteristics of Effective Teamwork:

• Effective teamwork requires certain conditions to be in place that will increase the
likelihood that each member’s contributions—and the effort of the group as a
whole—will lead to success. Effective teams share five characteristics:

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Effective teams share five characteristics:

– Shared values: a common set of beliefs and principles about how and why the
team members will work together
– Mutual trust: confidence between team members that each puts the best
interest of the team ahead of individual priorities
– Inspiring vision: a clear direction that motivates commitment to a collective
effort
– Skill/talent: the combined abilities and expertise to accomplish the required
tasks and work productively with others
– Rewards: recognition of achievement toward objectives and reinforcement of
behavior that supports the team’s work

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Stages of Team Development:

• Dr. Bruce Tuckman, an early psychology researcher focused on group dynamics,
developed a four-phase model of team development that included forming,
storming, norming and performing.

1. Forming:
– Individuals are trying to get to know each other and the organization and have
not formed a commitment to the team.
– In consult with HR, project leaders provide direction and outline expectations.

– In addition, HR might use DISC or Myers-Briggs assessments and then facilitate

a discussion about the results to help the group understand each other's
differences and operating styles.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

2. Storming:
• In this typically rocky stage, team members may challenge the leader and each
other.
• The leader coaches members on how to manage conflict and focus on goals and
may ask the HR team to help facilitate related training.

3. Norming:
• After individuals have worked through conflicts, the team begins to develop.
• People begin to appreciate their differences and start to work together.
• The leader begins to serve as a facilitator, offering encouragement and guidance.
• HR serves as a continuing support and can facilitate discussions or offer training as
needed.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

4. Performing.
• At this stage, the team is fully functional, and members are able to manage their
relationships and work toward shared goals.
• Team members feel accepted and communicate openly with the leader.
• The leader focuses on delegating responsibilities and must identify when the team
is moving into a different stage.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Team Effectiveness and Team Building:

• Team effectiveness is the capacity a team has to accomplish the goals or objectives
administered by the organization.
• Team effectiveness refers to how the team affects the organization, individual
team members, and the team’s existence.
• Effective teams achieve their objectives relating to the organization or other
system in which the group operates.
• Team effectiveness relates to the satisfaction and well-being of its members.
• Team effectiveness relates to the team’s ability to survive.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Key Components of Effective Team:

The key components making up effective teams can be subsumed into 4 general
categories:
– Work Design: The first category is work design.

– Composition: The second relates to the team’s composition.

– Context: Third Is the resources and other contextual influences that make
teams effective.
– Process: Finally, process variables reflect those things that go on in the team
that influences the effectiveness.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Work Design
• Effective teams need to work together and take collective responsibility to
complete significant tasks.
• The work design category includes variables like
• freedom and autonomy, the opportunity to use different skills and talents,

• the ability to complete a whole and identifiable task or product, and

• working on a task that has a substantial impact on others.

• These work design characteristics motivate because they increase members’ sense
of responsibility and ownership over the work and because they make the work
more interesting to perform.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Composition
• This category includes variables relate to how teams should be staffed.
• In this section, we will address
• the ability and personality of team members,

• allocating roles and diversity,

• size of the team,

• member flexibility, and

• members’ preference for teamwork.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Context
• The four contextual factors that appear to be most significantly related to team
performance are the presence of
• adequate resources,

• effective leadership,

• a climate of trust, and

• a performance evaluation and reward system that reflects team

contributions.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Process
• The final category related to team effectiveness is processed variables.
• These include
• member commitment to a common purpose,

• the establishment of specific team goals,

• team efficacy,

• a managed level of conflict, and

• Minimizing social loafing.

• Successful teams make members individually and mutually accountable for the
team’s goals, and members of these teams are clear on those expectations.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Team Building:
• Team building is the process of turning a group of individual contributing
employees into a cohesive team - a group of people organized to work together to
meet the needs of their customers by accomplishing their purpose and goals.
• Team building is a management technique used for improving the efficiency and
performance of the workgroups through various activities.
• It involves a lot of skills, analysis and observation for forming a strong and capable
team.
• The whole sole motive here is to achieve the organization vision and objectives.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

Team Building Process

• Team building is not a one-time act. It is a step by step process which aims at
bringing a desirable change in the organization.
• Teams are usually formed for a particular task or project and are mostly for the
short-term.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

5 critical behaviors for the success of any team are:

• Trust

• Conflict

• Commitment

• Accountability

• Results

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 MANAGING TEAMS

1. Trust is when team members are genuinely transparent and honest with each
other and are able to build “vulnerability-based” trust—which means they can
share any information without a concern that it will be mocked, dismissed or used
against them in the future.

2. Conflict is constructive in teams when it can be expressed in an unfiltered,

productive debate of ideas and possible options.

3. Commitment occurs when there have been effective levels of Trust that allow
unfiltered debate, leading to full buy-in and commitment to decisions.

4. Accountability is possible when everyone is committed to a clear plan of action.

They will be more willing to hold one another accountable, even to the extent that
direct reports feel comfortable holding their own boss or leadership accountable.

5. Results—collective results—are the ultimate goal of building greater Trust, healthy

Conflict, Commitment and Accountability.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 LEADERSHIP

 Leadership is a process by which a person influences others to accomplish an

objective and directs the organization in a way that makes it more cohesive and
coherent.
 Leadership can be defined as the ability of the management to make sound
decisions and inspire others to perform well.
 It is the process of directing the behavior of others towards achieving a common
goal. In short, leadership is getting things done through others.
 Leaders carry out this process by applying their leadership attributes, such as
beliefs, values, ethics, character, knowledge, and skills.
 Leadership is a process by which an executive can direct, guide and influence the
behavior and work of others towards accomplishment of specific goals in a given
situation.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 LEADERSHIP

 Leadership is the ability of a manager to induce the subordinates to work with

confidence and zeal.
 Leadership is the potential to influence behaviour of others. It is also defined as
the capacity to influence a group towards the realization of a goal.
 Leaders are required to develop future visions, and to motivate the organizational
members to want to achieve the visions.
 According to Keith Davis, “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.”
 Leadership is essentially a continuous process of influencing behavior. It may be
considered in context of mutual relations between a leader and his followers.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 LEADERSHIP

Characteristics of Leadership
• It is a inter-personal process in which a manager is into influencing and guiding
workers towards attainment of goals.
• It denotes a few qualities to be present in a person which includes intelligence,
maturity and personality.
• It is a group process. It involves two or more people interacting with each other.
• A leader is involved in shaping and moulding the behaviour of the group towards
accomplishment of organizational goals.
• Leadership is situation bound. There is no best style of leadership. It all depends
upon tackling with the situations.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 LEADERSHIP

Importance of Leadership
• Leadership is an important function of management which helps to maximize
efficiency and to achieve organizational goals. The following points justify the
importance of leadership in a concern.
• Initiates action- Leader is a person who starts the work by communicating the
policies and plans to the subordinates from where the work actually starts.
• Motivation- A leader proves to be playing an incentive role in the concern’s
working. He motivates the employees with economic and non-economic rewards
and thereby gets the work from the subordinates.
• Providing guidance- A leader has to not only supervise but also play a guiding role
for the subordinates. Guidance here means instructing the subordinates the way
they have to perform their work effectively and efficiently.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 LEADERSHIP

• Creating confidence- Confidence is an important factor which can be achieved

through expressing the work efforts to the subordinates, explaining them clearly
their role and giving them guidelines to achieve the goals effectively.
– It is also important to hear the employees with regards to their complaints and
problems.
• Building morale- Morale denotes willing co-operation of the employees towards
their work and getting them into confidence and winning their trust.
– A leader can be a morale booster by achieving full co-operation so that they
perform with best of their abilities as they work to achieve goals.
• Co-ordination- Co-ordination can be achieved through reconciling personal
interests with organizational goals. This synchronization can be achieved through
proper and effective co-ordination which should be primary motive of a leader.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 LEADERSHIP

Qualities of a Leader:

1. Physical appearance- A leader must have a pleasing appearance. Physique and

health are very important for a good leader.

2. Vision and foresight- A leader cannot maintain influence unless he exhibits that he
is forward looking. He has to visualize situations and thereby has to frame logical
programmes.

3. Intelligence- A leader should be intelligent enough to examine problems and

difficult situations.

4. Communicative skills- A leader must be able to communicate the policies and

procedures clearly, precisely and effectively.

5. Objective- A leader has to be having a fair outlook which is free from bias and
which does not reflects his willingness towards a particular individual.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 LEADERSHIP

Qualities of a Leader:

6. Physical appearance- A leader must have a pleasing appearance. Physique and

health are very important for a good leader.

7. Sense of responsibility- A leader must have a sense of responsibility towards

organizational goals because only then he can get maximum of capabilities
exploited in a real sense.

8. Self-confidence and will-power- Confidence in himself is important to earn the

confidence of the subordinates.

9. Humanist- This trait to be present in a leader is essential because he deals with

human beings and is in personal contact with them.

10. Empathy- A leader should understand the problems and complaints of employees
and should also have a complete view of the needs and aspirations of the
employees. A.M. KHAN , ASST. PROF. , GIFT , BBSR
 LEADERSHIP STYLES

Leadership Styles:

1. Autocratic leadership style: In this style of leadership, a leader has complete

command and hold over their employees/team.
– The team cannot put forward their views even if they are best for the team’s
or organizational interests. They cannot criticize or question the leader’s way
of getting things done. The leader himself gets the things done.
– The advantage of this style is that it leads to speedy decision-making and
greater productivity under leader’s supervision.
– Drawbacks of this leadership style are that it leads to greater employee
absenteeism and turnover.
– This leadership style works only when the leader is the best in performing or
when the job is monotonous, unskilled and routine in nature or where the
project is short-term and risky.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 LEADERSHIP STYLES

2. Authoritarian Leadership
• Authoritarian leadership styles allow a leader to impose expectations and define
outcomes. A one-person show can turn out to be successful in situations when a
leader is the most knowledgeable in the team.
• Although this is an efficient strategy in time-constrained periods, creativity will be
sacrificed since input from the team is limited.
• The authoritarian leadership style is also used when team members need clear
guidelines.

Advantages:
– Time spent on making crucial decisions can be reduced.
– Chain of command can be clearly emphasized.
– Mistakes in the implementation of plans can be reduced.
– Using authoritarian leadership style creates consistent results.

A.M. KHAN , ASST. PROF. , GIFT , BBSR

 LEADERSHIP STYLES

Disadvantages:
– A very strict leadership style can sometimes lead to employee rebellion.
– It kills employee creativity and innovation.
– It reduces group synergy & collaboration.
– Group input is reduced dramatically.
– Authoritarian leadership increases employee turnover rate.

3. The Laissez Faire (Delegative) Leadership Style: Here, the leader totally trusts
their employees/team to perform the job themselves.

He just concentrates on the intellectual/rational aspect of his work and does not
focus on the management aspect of his work.

The team/employees are welcomed to share their views and provide suggestions
which are best for organizational interests. This leadership style works only when
the employees are skilled, loyal, experienced and intellectual.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 LEADERSHIP STYLES

Advantages:
– Experienced employees can take advantage of their competence and
experience.
– Innovation & creativity is highly valued.
– Delegative leadership creates a positive work environment.

Disadvantages:
– Command responsibility is not properly defined.
– Delegative leadership creates difficulty in adapting to change.

4. Democratic (Participative) leadership style: The leaders invite and encourage the
team members to play an important role in decision-making process, though the
ultimate decision-making power rests with the leader.

The leader guides the employees on what to perform and how to perform, while
the employees communicate to the leader their experience and the suggestions if
any.
A.M. KHAN , ASST. PROF. , GIFT , BBSR
 LEADERSHIP STYLES

The essence is to involve team members in the decision making process. Team
members thus feel included, engaged and motivated to contribute. The leader will
normally have the last word in the decision-making processes.

Advantages:
– It increases employee motivation and job satisfaction.
– It encourages use of employee creativity.
– A participative leadership style helps in the creation of a strong team.
– High level of productivity can be achieved.

Disadvantages:
– Decision-making processes become time-consuming.
– Leaders have a high probability of being apologetic to employees.
– Communication failures can sometimes happen.
– Security issues can arise because of transparency in information sharing.
– Poor decisions can be made if the employees are unskilled.

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4. Bureaucratic leadership: Here the leaders strictly adhere to the organizational

rules and policies.
– Also, they make sure that the employees/team also strictly follows the rules
and procedures.
– Promotions take place on the basis of employees’ ability to adhere to
organizational rules.
– This leadership style gradually develops over time.

– This leadership style is more suitable when safe work conditions and quality
are required.
– But this leadership style discourages creativity and does not make employees
self-contented.

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5. Transactional leadership
• Transactional leadership styles use "transactions" between a leader and his or her
followers - rewards, punishments and other exchanges - to get the job done.
• The leader sets clear goals, and team members know how they'll be rewarded for
their compliance.
• This "give and take" leadership style is more concerned with following established
routines and procedures in an efficient manner, than with making any
transformational changes to an organization.

Advantages:
– Leaders create specific, measurable and time-bound goals that are achievable
for employees.
– Employee motivation and productivity is increased.
– Transactional leadership eliminates or minimizes confusion in the chain of
command.
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– It creates a system that is easy to implement for leaders and easy to follow by
employees.
– Employees can choose reward systems.

Disadvantages:
– Innovation & creativity is minimized.
– Empathy is not valued.
– Transactional leadership creates more followers than leaders among
employees.

6. Transformational Leadership
• In transformational leadership styles, the leader inspires his or her followers with a
vision and then encourages and empowers them to achieve it. The leader also
serves as a role model for the vision.

Advantages:
– It leads to a lower employee turnover rate.
– Transformational leadership places high value on corporate vision.
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– High morale of employees is often experienced.

– It uses motivation and inspiration to gain the support of employees.
– It is not a coercive approach to leadership.
– It places high value on relationships.

Disadvantages:

– Leaders can deceive employees.

– Consistent motivation and constant feedback may be required.
– Tasks can’t be pushed through without the agreement of employees.
– Transformational leadership can sometimes lead to the deviation of protocols
and regulations.

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Trait Approach:
• The trait approach to leadership was one of the earliest theories of leadership.
• This approach focuses on the personal attributes (or traits) of leaders such as
physical and personality characteristics, competencies, and values. It views
leadership solely from the perspective of the individual leader.
• The trait theory of leadership focuses on identifying different personality traits and
characteristics that are linked to successful leadership across a variety of
situations.
• Carlyle's theory of leadership was based on the rationale that:
– Certain traits produce certain patterns of behavior.

– Patterns are consistent across different situations.

– People are "born" with leadership traits.

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• The trait model of leadership is based on the characteristics of many leaders - both
successful and unsuccessful - and is used to predict leadership effectiveness.
• Successful leaders definitely have interests, abilities, and personality traits that are
different from those of the less effective leaders.

According to the researchers, the traits most commonly associated with great
leadership include:
 Adaptability and flexibility: Effective leaders don't get stuck in a rut. They are able
to think outside of the box and adapt quickly to changing situations.
 Assertiveness: A great leader is able to be direct and assertive without coming off
as overly pushy or aggressive.
 Capacity to motivate people: A great leader knows how to inspire others and
motivate them to do their best.

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 Courage and resolution: The best leaders are brave and committed to the goals of
the group. They do not hide from challenges.
 Creativity: Perhaps most importantly, great leaders not only possess their own
creativity, but they are also able to foster creativity among members of the group.
 Decisiveness: A great leader is capable of making a decision and is confident in his
or her choices.
 Eagerness to accept responsibility: Strong leaders take on responsibility and don't
pass the blame on to others. They stand by their success and take ownership of
their mistakes.
 Emotional stability: In addition to being dependable overall, strong leaders are
able to control their emotions and avoid overreactions.

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 Intelligence and action-oriented judgment: Great leaders and smart and make
choices that move the group forward.
 Need for achievement: Strong leaders have a need to succeed and help the group
achieve goals. They genuinely care about the success of the group and are
committed to helping the group reach these milestones.
 People skills: Excellent interpersonal skills are essential for leading effectively.
Great leaders know how to interact well with other leaders as well as with team
members.
 Perseverance: Strong leaders stick with it, even when things get difficult or the
group faces significant obstacles.
 Self-confidence: Many of the best leaders are extremely self-assured. Because
they are confident in themselves, followers often begin to share this self-belief.

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 Task competence: A great leader is skilled and capable. Members of the group are
able to look to the leader for an example of how things should be done.
 Trustworthiness: Group members need to be able to depend upon and trust the
person leading them.
 Understanding their followers and their needs: Effective leaders pay attention to
group members and genuinely care about helping them succeed. They want each
person in the group to succeed and play a role in moving the entire group forward.

Strengths/Advantages of Trait Theory

• It is naturally pleasing theory.
• It is valid as lot of research has validated the foundation and basis of the theory.
• It gives a detailed knowledge and understanding of the leader element in the
leadership process.

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Limitations of The Trait Theory

• There is bound to be some subjective judgment in determining who is regarded as
a ‘good’ or ‘successful’ leader
• The list of possible traits tends to be very long. More than 100 different traits of
successful leaders in various leadership positions have been identified. These
descriptions are simply generalities.
• There is also a disagreement over which traits are the most important for an
effective leader
• The model attempts to relate physical traits such as, height and weight, to effective
leadership. Most of these factors relate to situational factors. For example, a
minimum weight and height might be necessary to perform the tasks efficiently in
a military leadership position. In business organizations, these are not the
requirements to be an effective leader.
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Contingency Leadership Approach:

• Fred E. Fiedler’s contingency theory of leadership effectiveness was based on
studies of a wide range of group effectiveness, and concentrated on the
relationship between leadership and organizational performance.
• The contingency theory of leadership supposes that a leader’s effectiveness is
contingent on whether or not their leadership style suits a particular situation.
• According to this theory, an individual can be an effective leader in one
circumstance and an ineffective leader in another one.
• To maximize your likelihood of being a productive leader, this theory posits that
you should be able to examine each situation and decide if your leadership style is
going to be effective or not.
• In most cases, this requires you to be self-aware, objective and adaptable.

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Leader’s trait
• In order to assess the attitudes of the leader, Fiedler developed the ‘least
preferred co-worker’ (LPC) scale in which the leaders are asked about the person
with whom they least like to work.
• The scale is a questionnaire consisting of 16 items used to reflect a leader’s
underlying disposition toward others.
– The items in the LPC scale are
– pleasant / unpleasant,
– friendly / unfriendly,
– rejecting / accepting,
– unenthusiastic / enthusiastic,
– tense / relaxed,

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– cold / warm,
– helpful / frustrating,
– cooperative / uncooperative,
– supportive / hostile,
– quarrelsome / harmonious,
– efficient / inefficient,
– gloomy / cheerful,
– distant / close,
– boring / interesting,
– self-assured / hesitant,
– open / guarded.

• Each item in the scale is given a single ranking of between one and eight points,
with eight points indicating the most favorable rating.

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Unfriendly 1 2 3 4 5 6 7 8 Friendly
Unpleasant 1 2 3 4 5 6 7 8 Pleasant
Rejecting 1 2 3 4 5 6 7 8 Accepting
Tense 1 2 3 4 5 6 7 8 Relaxed
Cold 1 2 3 4 5 6 7 8 Warm
Boring 1 2 3 4 5 6 7 8 Interesting
Hostile 1 2 3 4 5 6 7 8 Supportive
Guarded 1 2 3 4 5 6 7 8 Open
Insincere 1 2 3 4 5 6 7 8 Sincere
Quarrelsome 1 2 3 4 5 6 7 8 Harmonious
Hesitant 1 2 3 4 5 6 7 8 Self Assured
Distant 1 2 3 4 5 6 7 8 Close
Frustrating 1 2 3 4 5 6 7 8 Helpful
Gloomy 1 2 3 4 5 6 7 8 Cheerful
Unenthusiastic 1 2 3 4 5 6 7 8 Enthusiastic
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• Fiedler states that leaders with high LPC scores are relationship-oriented and the
ones with low scores are task-oriented.
• The high LPC score leaders derived most satisfaction from interpersonal
relationships and therefore evaluate their least preferred co-workers in fairly
favorable terms. These leaders think about the task accomplishment only after the
relationship need is well satisfied.
• On the other hand, the low LPC score leaders derived satisfaction from
performance of the task and attainment of objectives and only after tasks have
been accomplished, these leaders work on establishing good social and
interpersonal relationships.

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Situational factor
• According to Fiedler, a leader’s behavior is dependent upon the favorability of the
leadership situation. Three factors work together to determine how favorable a
situation is to a leader. These are:
• Leader-member relations - The degree to which the leaders is trusted and liked by
the group members, and the willingness of the group members to follow the
leader’s guidance
• Task structure - The degree to which the group’s task has been described as
structured or unstructured, has been clearly defined and the extent to which it can
be carried out by detailed instructions

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• Position power - The power of the leader by virtue of the organizational position
and the degree to which the leader can exercise authority on group members in
order to comply with and accept his direction and leadership
 With the help of these three variables, eight combinations of group-task situations
were constructed by Fiedler. These combinations were used to identify the style of
the leader.

Leadership Effectiveness
• The leader’s effectiveness is determined by the interaction of the leader’s style of
behavior and the favorableness of the situational characteristics.
• The most favorable situation is when leader-member relations are good, the task is
highly structured, and the leader has a strong position power.

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• Research on the contingency model has shown that task-oriented leaders are more
effective in highly favorable (1, 2, 3) and highly unfavorable situation (7, 8),
whereas relationship-oriented leaders are more effective in situations of
intermediate favorableness (4, 5, 6).
• Fiedler also suggested that leaders may act differently in different situations.
• Relationship-oriented leaders generally display task-oriented behaviors under
highly favorable situations and display relationship-oriented behaviors under
unfavorable intermediate favorable situations.
• Task-oriented leaders frequently display task-oriented in unfavorable or
intermediate favorable situations but display relationship-oriented behaviors in
favorable situations.

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Contemporary Leadership Styles (new approach):

• A contemporary leader is a leader who uses personal influence to develop and
inspire people to achieve organizational goals and make a difference in the
community.
• According to the contemporary leadership style, leaders can be more effective
when they have an ability to recognize the mysterious environment and complexity
of the work and are able to react in the changing environment.
• Major contemporary leadership styles are transformational, transactional and
inspirational leadership.

1. Transformational leadership- It is basically about transforming the business with

innovative thinking and creative skills.

- Leaders in this type of leadership are capable of bringing significant

change with a sense of commitment and motivation.
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• Transformational leadership is a leadership style in which leaders encourage,

inspire and motivate employees to innovate and create change that will help grow
and shape the future success of the company.
• This is accomplished by setting an example at the executive level through a strong
sense of corporate culture, employee ownership and independence in the
workplace.
• Transformational leaders inspire and motivate their workforce without
micromanaging — they trust trained employees to take authority over decisions in
their assigned jobs.
• It’s a management style that’s designed to give employees more room to be
creative, look to the future and find new solutions to old problems.
• Employees on the leadership track will also be prepared to become
transformational leaders themselves through mentorship and training.
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Transformational leadership characteristics

• According to Bass, these are the hallmarks of a transformational leader that sets
them apart from other leadership styles. A transformational leader is someone
who:
 Encourages the motivation and positive development of followers

 Exemplifies moral standards within the organization and encourages the same of
others
 Fosters an ethical work environment with clear values, priorities and standards.

 Builds company culture by encouraging employees to move from an attitude of

self-interest to a mindset where they are working for the common good
 Holds an emphasis on authenticity, cooperation and open communication

 Provides coaching and mentoring but allowing employees to make decisions and
take ownership of tasks A.M. KHAN , ASST. PROF. , GIFT , BBSR
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2. Transactional leadership- leaders identifies what the followers want and motivate
them to increase their performance by rewarding them for the goals which needs
to be achieved. It basically works on Maslow's basic needs of satisfaction.

3. Inspirational leadership- It is the skills and qualities of the leader that inspire and
motivate people and transform them creating a change in their whole vision.

4. Servant leadership- It is a leadership approach that defines the leader’s role as

serving the needs of others.

According to this approach, the primary mission of the leader is to develop

employees and help them reach their goals.

Servant leaders put their employees first, understand their personal needs and
desires, empower them, and help them develop in their careers.

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 Business Leaders who have succeeded to reach to the epitome of success have
one thing in common – “to encompass out-of-the-box ideas that have ultimately
evolved as the game-changers in their respective domains.”

1. Ratan Naval Tata – The Strategic Industrialist

• A recipient of India’s most distinguished civilian awards – Padma Bhushan as well
as Padma Vibhushan, Ratan Tata needs no introduction on the global platform.
Belonging to a family of industrialist and philanthropists, Ratan Tata rose to
become the Chairman of the Mumbai-based conglomerate TATA group in 1991 and
had a brief stint in 2016.
• Apart from his business acumen, it was his grit and determination that led to the
expansion of the TATA group at the global map.

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• London-based Tetley Tea, South Korea’s Daewoo Motors, Anglo-Dutch steel

manufacturer Corus Group, UK-based Jaguar and Land Rover are some of the
international acquisitions and purchases under his affluent leadership.
• He fulfilled his promise and dream of making India’s first ‘People’s Car’ – Tata Nano
with a starting price of just one lakh rupees! Although it was nearly impossible for
other automotive companies to even think of the same, Ratan Tata had the vision
of delivering something moderate and economical mode of transport for the
Indian middle-class family.
• He is also the Chairman of Tata Trusts, – one of the oldest foundations in India,
that works in 170 districts across 17 states and has partnered with 450
organizations for various causes.

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2. Dilip Shanghvi – Sun and Simplicity

• While his Father was a wholesale drug distributor, Dilip Shantilal Shanghvi has
crafted his own roadmap and has been successful in building India’s largest drug
maker company – Sun Pharmaceutical Industries Ltd.
• Reckoned as one of the richest in the country and a self-made billionaire in Asia,
Dilip Shanghvi is the man to reckon in the Indian healthcare industry.
• Under his leadership, Sun Pharma has grown extensively in terms of acquisitions
and takeovers of various firms at the global level.
• His meteoric rise has truly been a journey to watch out for! Insiders term his style
of working as ‘consultative’ and ‘democratic’ that has actually helped him to think
of innovative ideas that proved to be the talking point of his career.
• His acumen to spot business opportunities has assisted the company to rise and
evolve as the biggest market player in India.
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End of Module 3

A.M. KHAN , ASST. PROF. , GIFT , BBSR

Thank You
Today a Reader, Tomorrow a Leader

A.M. KHAN , ASST. PROF. , GIFT , BBSR