Mba II Sem Leadership Values

LEADERSHIP VALUES
(MBA II SEMESTER)
STUDY MATERIAL
RCR Institute of Management & Technology

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208- LEADERSHIP VALUES
Unit 1
Concept and Significance of Value based Leadership –Shared Vision – Value
based Culture – Right and Wrong Values – Terminal and Instrumental Values.
Unit 2
The four principles of Value Based Leadership: i) Self Reflection-
Understanding Self Reflection, ii) Balance and Perspective –Doing the Right
Things Rather Than Being Right, iii) True Self Confidence – Building
Confidence and Competence, iv) Genuine Humility – Recognizing the Value
of Everyone.
Unit 3
Creating a Best Team from Scratch – Turning around at team – Making a
right investment in the Talent – Communicating Clearly and Broadly –
Motivation and Team Engagement.
Unit 4
Leading Change – The Corporate Rushmoreans – Leading Change
Effectively and Morally – The Fallacy of Tough Leadership – Democratic
Leadership – Transformational Leadership.
Unit 5
Building a Holistic Relationship with Suppliers – Building Best Partner
Relationship with Customers –Creating Value to Shareholders – Socially
Responsible Leadership –Leaving the Global Footprint.
Reference Books:
1. Harry M. Kraemer (2015) Becoming the Best: Build a World Class

Organization Through Values Based Leadership, Wiley
2. Harry M. Kraemer (2011) From Values to Action: The Four
Principles of Values-Based Leadership, Wiley
3. James O'Toole(1996), Leading Change: The Argument For Values-
Based Leadership, Paperback
4. BHARGAVA (2003)Transformational Leadership: Value Based
Management for Indian Organizations, Paperback
5. Kuczmarski, S. S. and Kuczmarski, T. D. (1995) Values-Based
Leadership. Paramus, NJ: Prentice Hall.
6. Fairholm, G. W. (2000) Perspectives on Leadership: From the Science
of Management to Its Spiritual Heart. Westport, Connecticut: Praeger.
NOTE TO THE PAPER SETTER:

(i) The questions shall cover all the units of the syllabus.
(ii) In regard to Part – A of the question paper, one question with internal
choice from each unit of the syllabus shall be set.
(iii) For Part – B of the question paper, the CASE shall be not less than 500
words.

UNIT I
1. CONCEPT AND SIGNIFICANCE OF

VALUE BASED LEADERSHIP
1. Introduction
Leadership is the ability or capacity of someone to lead and to

influence the activities of a group in an effort toward goal achievement in a
given situation. The two central concerns for any leadership situation are to
lead the people and to influence people. In other words, leadership involves
making other people to follow and to work for a goal. For this to happen,
leadership should be based an values. That means leading and influencing
people should be within some standards or should be based on values. This is
called Value Based Leadership.
Value based leadership is important in its own way and for the sake of
organization or society at large. Value based leadership is important for the
leadership to be effective. It is also important to make the people work
effectively in an effort to achieve organizational goals. That means, values are
necessary for a leader to make his leadership effective and also to influence
and motivate his followers and others to work with commitment to one’s own
objective.
2. Definitions
-Value based leadership is when there is alignment of organizations

missions, value, vision, strategy, performance management, rewards,
recognitions and processes and systems. In one word, it is when there is a
purposeful consistency in organizational culture. Value based leadership is
the intention given to and the attention paid to aligning a community or an
organizations values, missions and vision with its strategy, performance
management, reward, processes and systems.
-Value based leadership is a system; it takes into consideration the

whole organization that it organizes around well defined core values; core
values are the “sacred” fundamental convictions that employees have about
how they want – and therefore must – behave in the context of organization’s
mission. Core values are timeless and changeless guiding principles which
Goals
Systems Strategy Process

V V
A I
L S
U I
E Leadership O
S N
Performance Recognition Rewards
Mission
underlie and reflect an organizations or an individual’s mission.
-Value based leadership is motivating employees by connecting

organizational goals to employees’ personal values. Values-based leaders
communicate organizational values that tell members how to behave in order to
fulfill the organization’s mission. They talk about these values in a way that
connects with employees personal values, so that employee comes to identify
strongly with both the organization and its mission.
- The essential characteristic of value based leadership is the belief that

the welfare of people is the end of leadership and that people are not the
means to the leader’s goals.
-Value based leadership is essentially about cultivating a purposeful

consistency in an organization, allowing a culture of genuine sincerity, trust
and collaboration to flourish and endeavoring to do what we say all times.
-Value based leadership is motivating employees by connecting

organizational goals to employees’ personal values.

3.Significance of Value Based Leadership
Value based leadership holds a number of extraordinary promises that

any sensible leader would dream of; self managing employees; lesser need for
supervision and control; greater respect between people; increased enthusiasm
and dedication to the task; service oriented mentalities more genuine cooperate
culture; socially responsible and environmentally friendly work practices;
reputation of reliability, fairness and honesty; team bonding ; more humaneness
in relationship; trust and loyalty ; enhanced integrity and accountability;
enhanced decision making which contributes to the vision whist
building on trust; greater commitment of team members, customers and
shareholders; increased flexibility and ‘intelligence’ enhanced performance
better integration work/personal life; clarity of purpose, mission and vision;
increased job and personal satisfaction through a deeper sense of meaning;
increased self esteem; role modeling in society; potential legacy etc .
Values- based leaders communicate organizational values that tell members

how to behave in order to fulfill the organization’s mission. They talk about these
values in a way that connects with employees’ personal values, so that
employees come to identify strongly with both the organization and its mission.
Such leaders focus on core values – the enduring guiding principles that capture
the organization’s strengths and character. Because the core values
represent the soul of the organization, they are likely to remain steadfast in the
face of changing market trends and fads.
3.Principles of Value –Based Leadership
McDonald, the President and CEO of Procter & Gamble presented his
list of the 10 defining characteristics of a Value-based Leader to Kellogg
students in the Owen L. Coon Forum. The list was inspired by experiences that
McDonald had over the course of his 20-year career.
Leading a life guided by purpose: When looking for a job, examine a

company’s purpose, values and people to see if they align with your own
beliefs and ethics.

Spending enough time in our leadership role finding people: succeeding:
Everone wants to succeed and success is contagious. We should treat
employees like they want to succeed, not like they want to fail.
Putting people in the right jobs: McDonald emphasized the importance of

identifying our employees’ strengths, and then placing them in role that feed
into those strengths
Character is the most important trait of a leader: It’s important for leaders
to have integrity and take responsibility for their mistakes. We have to choose
the harder right, rather than the easier wrong.
Encouraging diversities in the organization: Diversity is what helps these

nodes to connect. Diverse groups of people are more innovative than the
homogenous groups. Diversity sparks ideas and innovation, so companies
must employ a diverse group of people.
Trying to blend a high-performance culture with robust systems and

sound strategies: McDonald said, those ingredients, coupled with technical
competencies and a strong company mission, will create a high performance
organization.
Being committed to employees as people, not as employees: The

employees are people first. So the leaders should treat them as their own
people first, and then employees.
Trying to manage changes: Organizations must renew themselves. Leaders

should always think about what changes are needed to stay relevant in the
market place and fulfill the company purpose. Organizations are like
biological organisms-they constantly need to change.
Recruiting is a top priority: There is every need for new membership to

enter the organization and particularly when we want to align our and
organization’s goals with employees’ aspirations with changing
technology.
Trying to leave footprints: The true test of a leader is the organization’s

performance after the leader departs. If we want to determine whether a leader
has been successful or not, we should look at their fingerprints and footprints.
2. SHARED VISION
1. Introduction
Shared vision is the sharing of the organizations’ vision, created by

the leaders, with the employees and the stakeholders. Every organization
should have, and has a vision, a future obligation. This vision is normally
created by the leaders/managers. But, this has to be shared with the
employees and the stakeholders. Otherwise, the vision, goals and objectives
cannot be fulfilled. Basically, without a shared vision, that vision the leader
spent time creating is pointless and meaningless. And without a shared vision
the learning organization (a company that facilitates the learning of its
members and continuously transforms itself, an organization that
continuously learns and improves) cannot exist. Again the responsibility of
sharing the vision lies with the leadership; leadership is all about sharing
vision. Thus, shared vision is an essential component of learning organization
because it provides the focus and energy for learning and achievement. The
underlying force is the desire by people to create and accomplish something.
And, the bedrock for developing shared vision personal mastery.
2. Meaning and Definitions
Shared vision is the first step for learning organizations to improve

others four steps being Mental Models, Team Building, Personal Mastery and
Systems Thinking. The concept of shared vision was introduced by Peter
Senge his book “The Fifth Discipline; The Art and Practice of the Learning
Organization.” Peter Senge described Shared Vision as
-A force in people’s hearts, a force of impressive power…. At its

simplest level, a shared vision is the answer to the question, ‘What do we
want to create?’
-A shared vision is a picture that everyone in the company carries in

their heads and hearts.
-Shared vision is an attempt to define a distinct future.
Burt Nanus gives a clear and concise definition.- A vision is only an

idea or an image of a more desirable future for the organization, but the right

vision is an idea so energizing that in effect jump-starts the future by calling
forth skills, talents, and resources to make it happen.
According to Reggie McNeal, “Vision in other words is the domain of

leadership. The visionary does not live in the past but rather seeks to create a
new future”. Thus, Mc Neal observes that a true visionary is one who does
not accept the present as the final conclusion but is rather drawing up plans
and supervising bridge building projects to link the present with a better
future they have seen.
A vision is a clear picture of the future an organization wishes or

wants to create. The vision is of two types- internal vision and external vision.
Internal vision is the future the organization wants to create for itself; it gives
a direction to the organization’s growth and support the external vision. The
external vision is the vision that the organization wants to make in the world
in the future, the organization wants to create for the society; it aligns with the
noble cause. When this vision is shared with the employees and the
stakeholders it becomes the shared vision.
3. Significance of Shared Vision
All about leadership: Leadership is not only leading and directing;

shared is all about leadership. The leader has to share the vision with others.
Essential component: Shared vision is an essential component of a

learning organization. When the organization wants to learn and progress, it
should have shared vision.
Sense of commonality: Shared vision creates a sense of commonality;

it converts the ‘company’ into ‘our company’.
Promotes team work: With a shared vision, the team members have
a common destination and common picture. They then work together as a
team, supporting each other.
Avoids competition and confrontation: With a shared vision, there

is no competition between people. Therefore, there is no need to pass blame
or hide our failures.

Gives Cohesiveness: Cohesiveness is the sense of bonding between
management and employees, and among the employees. This sense of
bonding is built well by the shared vision.
Creates excitement: Shared vision will encourage emotions in the

hearts of people. That means, it creates excitement and makes the company
an extraordinary company.
Common identity and purpose: Shared vision also creates common

identity and purpose among employees and also between the management
and employees. It allows everyone to work together.
Innovation: Shared vision encourages new ways of thinking and acting.

This new thinking and acting makes a company an innovative company.
Gives courage: Shared vision gives courage and fosters risk taking and
experimentation
Makes employees forward-looking: Through shared vision, the

leaders can make the employees forward looking, which involves seeking
exciting possibilities in the future and enlisting others in the shared vision of
the future.
Gives right and distinct vision: When the vision is shared with
employees and stakeholders, the vision is discussed and debated. The result is
the emergence of right and distinct vision.
3. Methods of Sharing Vision

1. Sharing the ideas immediately and clearly: Once the idea is created
it should be communicated to the employees without waiting for the
creation of final vision. The leader should explain what is really
exciting about it and its national
2. Examining one’s own behavior: Shared vision involves examining
one’s own behavior and sees that the behavior is consistent with what
one is espousing. One should be conscious of all the actions, great and
small, every minute and every day.
3. Encouraging others to share their ideas: For sharing vision the
leader should encourage others’ ideas. He should put the topic in the
agenda or devote extended amount of time for it.
4. Listening closely to others’ ideas : The leader should listen to what
others say and make sure that he really understands what they are
saying, what they think, what values they believe in and how their
ideas and hopes resonate with each other.
5. Not owning the vision : If the leader’s vision has to be shared, others
must feel that they have participated in shaping it. They should not get
the feeling of sole ownership. Others are quite likely that they will
have a perspective that will enrich the vision and make it stronger.
6. Fixing the responsibility: Shared vision involves fixing the
responsibility also on others, apart from allowing them in developing
the vision. Everyone of the team or group should be made responsible
at every stage from creating the vision to achieving it.
7. Accountability to the vision: The leader should hold each one
accountable for behaving consistently with the vision. Accountability
does not mean finger-pointing and accusations. It means having frank
and open conversation.
8. Publishing the vision and making it dynamic: The shared vision should
be published as a document or vision statement. This should be a living
document; visioning is not a static process. Vision evolves. So, we may
find new elements, without changing the essence of the vision.
4.Conclusion:
One of the greatest challenges any leader has in regard to team

development is clarifying and sharing a vision. Without a clear vision the
leader is crippled in his or her ability to develop a team concept. Vision and
team development is an evolutionary process. According to Wellin, Byham,
and Wilson, in an empowered organization, the best guidance comes from the
team’s understanding of the organization’s vision and values. It cannot come
from the rules or books of procedure; that is not empowerment. It is the first
goal of a team leader, the establishment of a team vision. Burt Nanus argues,
“A vision is a realistic, credible, attractive future for an organization. One
may think that this all sounds wonderful but will never happen, but it actually
does happen. To create this collaborative environment we need a committed
team leader, one who encourages openness, gets rid off office politics and
listens to the team, and a facilitator to help learn this new way of acting.
3. VALUE BASED CULTURE
1. Introduction
Corporate culture can be differentiated into two basic varieties-
Rule-based and Value based. What distinguishes a rule based from a
values based culture is the degree of emphasis on attempting to
control or steer human thoughts and behavior. Rules based culture
emphasis establishing an extensive set of rules that govern behavior.
In Values based culture, the goal is to instill in the enterprise a
common set of values that guide individuals’ behavior.
Rules and Values based cultures each have their virtues and
shortcomings. Healthy and thriving culture relies on an optional blend
of both types of cultures. Exceedingly rules-based cultures tend to
drive conformity, status quo and bureaucracy. Values based cultures
tend to encourage more freedom and empowerment. This leads to
greater inspiration, enthusiasm, resourcefulness, commitment
creativity and innovation. Some rules are necessary to bring structure
and order to societies, companies and families. The enterprise and the
individual desire some sense of structure, uniformity and consistency.
Policies procedure and specification represent company rules.
However the company rate improvement is impeded when employees
perceive the rules as excessive.
In values based company culture, the enterprise is designed
around what it truly values customers, quality profitability,
technology, employees, continuous improvement, innovation,
communication, teamwork, employees empowerment etc. the values
are clearly stated defined in detail and communicated to employees.
They are where discussion begins and how way ward discussion are
brought back on trck. The company values guide employees’
strategies decision and actions.
2. Importance of Value Based Culture
-Well developed and defined organizational values help
employees to do their jobs well by guiding decision making and
behavior.

-Values can underpin the wide range of interaction and
professional relationship employees have with others in their day-to-
day work.
-Values also contribute to an organizations strategies direction
and can highly motivating for employees.
Values stated in public documents also help shape citizens
expectations about the mission, vision and daily activities of public
sector organizations.
-Values form the foundation of public service and guide
judgment about what is proper and improper in serving public interest.
-Values have an immense capacity to shape the overall culture
of the organizations and provide it with core statement of who we are
in organization.,
-Values can provide a set of unifying themes that recognize
that no matter how different agencies are and the kinds of work in
which staff are engaged.
-Values are fundamental commonalities that bind the service in
the way work is approached and delivered to a variety of clients.
3.Components of and Steps for Value Based Culture
Components:
Impartial: Value based culture is apolitical and provides the government with
advice that is frank, honest, timely and based on the best available evidence.
Committed to service: Value based culture is professional, objective,

innovative and efficient and works collaboratively to achieve the best results
for the community and the government.
Accountability: Value based culture is open and accountable to the

Australian community under the law and within the framework of ministerial
responsibility.
Respectful: Value based culture respects all people including their rights and
their heritage
Ethical: Value based leadership demonstrates that leadership is trustworthy,

and acts with integrity, in all that it does.
Steps:
-Pursue a long term vision guided by core values: Too often short-term
planning clouds good business decision making and causes us to make the
wrong move. The only way to meet long term goals is to root them in mission
worthy of our dedication and the kinds of values that meaningfully connect us
and enable us to relate deeply to the world around us.-
Incorporate values into the recruiting: Hiring, say, bond traders purely on
the basis of their talent-and then training them on the values that matter to
your company simply does not work in the long term. Instead hiring decision
should focus on issues like character from the get go.
Give trust away: Many of us have an instinctive drive to meet the expectations
of others. But on the job leaders too often scrutinize others actions instead of
setting clear goals and trusting employees to raise to the occasion. Instead, give
trust away and we will see people giving back more in return.
Measure progress based on values-not just profits: The old adage that
what you measure is what you get remains valid. We’ll always need to track
profits and losses. But if we ask only how much got done we miss the even
more important things.
Inspire employees, instead of just relying on carrots or sticks:

Conventional wisdom tells us that carrots are a better motivational tool than
sticks. But even carrots have limits, particularly during tough economic times.
These contributions will not come as the result of threats or even bonuses.
Instead leaders must inspire employees with a sense of deep purpose and
shared values.
4. Methods to Build Value Based Culture:
Walking values: The first step is to enlist our managers and design culture
initiative that empowers managers to act as culture exemplars and ethics
envoys to their teams. This will promote a stronger ethical culture and breed
greater trust amongst their teams. When managers are not involved and do not

serve on the front line as culture envoys, it can breed of cynicism and
skepticism among their employees.
Creating A Shared Vision: Internalization of values - based principles does

not happen overnight-it can take some time create a campaign an and kick of
which a visible with senior leaders and middle managers present. The
objective is to inspire middle management with a compelling vision of how
culture matters, and how leadership on the front line shops culture.
Values based leadership training: Design a cascaded training plan to span

the next three to five years, with leaders training managers and onwards
whether it’s a Vice President, Director or front line supervisor, education
about values based leadership. Assessment and peer coaching scenario based
discussions and role play exercise are effective means of promoting values
based leadership education.
Toolkits coaching strategies: Managers at every level need the right tools to
engage their teams on the company values and expected behavior. Managers
should be encouraged to have regular discussion with their teams to keep
values on everyone minds. Managers will need coaching on how to
comfortably conduct values discussion with then teams.
Measurement: Performance measurement systems need to be re calibrated to

measure manager’s active participation as culture envoys. Clear actionable
benchmarks are particularly helpful for managers who may minimize the
mandate to take an active role in strengthening the organizational culture.
Recognition: In high performing cultures recognitions and celebration can
reinforce the spirit of the company. Promoting greater alignment between the
company core values, day-to-day operations through real stories helps
crystallize the message to employees worldwide. Identity communication
channels and forums to publically celebrate employees for their acts values
based leadership and values based decision making

4. RIGHT AND WRONG VALUES
1. Introduction and Meaning
The ideas of right and wrong values are those which ethics or morality
in supposed to be most concerned. But morality is the sort of thing that is not
testable by science. There is no scientific instrument that measures moral
rightness wrongness. We have to decide on our understanding and reasoning.
Fundamentally, values are the rules by which we make decisions about what
action is right and what wrong. Ethics or morality is concerned with
evaluating the action, feelings, beliefs and things and judge whether particular
is right or wrong, good or bad. The words right and good, wrong and bad are
considered synonymous at sometimes and different in other cases, but it is
true that what is good is only right and bad is wrong. This is to say that right
and wrong are include good and bad respectively.
Meaning
The idea of right and wrong values are based more upon deontological
approach to ethics, though the teleological approach and virtual ethics can also be
applied to judge what is good and what is bad. The deontological approach is the
normative ethical position that judges the morality of an action based on the
actions adherence to rules, obligations rather than inherent goodness or the
consequences of these actions. The teleological approach for evaluation requires
showing evidences of desire, intent or purpose. Still another, the virtual ethics
purports that there are ethical propositions of the form which says that such and
such a kind of action will always be right or wrong in such and such
circumstances, no matter what its intent or consequences might be. Leaned
towards the deontological approach, the discussion of right and wrong values is
based on rules based approach.
Definition:
We can define right and wrong values as follows.
The word ‘right’ means complying with justice, correctness or reason.

The synonyms are correct, just, true, appropriate, and perfectly suitable. Thus,
the right values are those which comply with justice, are correct, true and

which are morally good and morally legal. Right values are implicitly good and
thus not only comply with justice but also results in pleasure and well being.
The word ‘wrong’ means not complying with justice, incorrect, and
not reasonable. The synonyms are incorrect, unjust, false, inappropriate, and
perfectly unsuitable. Thus, the wrong values are those which do not comply
with justice, are incorrect, false and which are morally bad and morally
illegal. Wrong values are implicitly bad and thus not only fail to comply with
justice but also results in pain and misery
2. Factors that determine what is Right and Wrong Value
The philosophy of morality is not so much about which actions are

right and which ones are wrong as it is about what makes actions right or
wrong. The central question of moral philosophy is where morality comes
from i.e. the source of morality. Thus, the question of what is right or wrong
can be answered with reference to different sources.
They are
Culture: Morality comes from culture the system of beliefs, traditions and
policies. So, whatever is commonly accepted in their culture is right and
whatever is commonly forbidden in wrong
Religion: Religion is another important source of values. The actions that are
forbidden are wrong. To decide what is right and wrong we can consult
religions sacred texts or a religious expert.
Feelings: Morality, especially personal morality comes from inside them

selves, the feelings. People have certain emotional reactions to actions and
those feelings determine what is right or wrong.
Pain and Pleasure: This is a simple system for determining what is right or
wrong actions what produces pleasure is right and what produce pain is wrong.
Rationality: Morality also comes from rationality, the intellectual reasoning.

So, whatever is rational is right and whatever is irrational is wrong.
Rights: Every one has certain basic natural rights. Upholding these rights is
right, while violating these rights is wrong.
Relationships: Relationships are very much important. Those actions which
promote and sustain those relationships are right and those damage the
relations are wrong.
Character: What makes an action right or wrong has to do with the person
who does it. It is the character of the person doing the action that makes it
right or wrong.
3. Five Values which sum up what is Right and Wrong
The following five values can be taken as standards for judging the
actions right or wrong.
Fairness: Fairness means being equitable or treating others equally. Thus, the
actions which results is fairness are right and those which result in inequality
are wrong
Respecting human dignity: This means giving value to others, their opinions
and beliefs. This includes diversity of people, culture, ideas etc. Actions which
respect human dignity are right and those which do not are wrong.
Transcending the Ego: Ego means self and only self-importance, many
times at the cost of others. So, actions which serve ego are wrong, and which
go beyond ego are right.
Duty/ Responsibility: Duty means the work one has to do or obligated to do,
and responsibility is duty towards others. If an action aligns with one’s duty
and responsibility it is right of the action is against it is wrong
Honesty: Honesty is propriety sticking to one’s own thinking and saying.

Honesty means deserving trust or relationship. If an action deserves trust it is
right, or if an action rules out trust it is wrong.
4.Right values Vs Wrong Values
Right values and wrong values are certainly different one cannot become
one another. At the most, depending upon circumstances and unexpected results,
right values can become not absolutely right or partly right and wrong values not
absolutely wrong or partly wrong. That means, they are

two district values; there is no continuum between wrong and right values
Following are the differences between right and wrong values.
Description Right Values Wrong Values

Meaning Complying with Net complying with
justice, justice,
correctness, incorrectness,
reasonable unreasonable
Synonyms Correct, justice, Incorrect, unjust,
true, appropriate, false, inappropriate,
suitable unsuitable
Ethics Morally correct, Morally incorrect,
morally legal, morally illegal,
morally good morally bad
Nature Identifying, Not identifying, not
obeying moral obeying moral rules
rules
Evaluating actions Proper, legal, Improper, Illegal,
correct incorrect
Implicitness Implicitly good Implicating bad
Result Pleasure, order Pain, disorder
Nature result Good result Bad result
Relationship Respect to others Disrespect to others
Treatment to others Impartial, and just Partial and unjust
treatment treatment
Recognition Rewards, Punishments, ,
incentives disincentives

5. TERMINAL AND INSTRUMENTAL VALUES
1. Introduction
Values have been defined as ideals or beliefs that a person holds desirable
or undesirable. A person can value honesty and wealth but not to the same
degree. For example, a person might have to let to their values towards honesty
slip a little when it involves increasing their wealth. Values are part of the
personality of a person. They remind us to what is important in our lives, such as
success or family, but also, by the virtue of their presence, they provide contrast
to what is important. Values are guideposts of our lives and they direct us to who
we want to be. By doing that, they help us become who we are, and are a huge
part of our makeup, ethical compass, and ultimately personality.
Rokeach defined values as enduring beliefs that a specific mode of

conduct or end state of existence is personally or socially preferable to an
opposite or converse mode of conduct or end -state of existence in other
words. Rokeach believed that
- We have values for ourselves and values for society. These

values may be the same or they may differ.
- Enduring beliefs means that values are generally stable,
although they can change as people continue to make
decision that involves putting one value ahead of others.
- There is a difference between values that are modes of
conduct and values that are end-states of existence values
that are modes of conduct are refer to as instrumental
values that are end-states of existence are terminal values
2. Types of values
Values are of two types, both in the personal and organizational

domains-Instrumental values and Terminal values.
Instrumental Values
Instrumental values are core values, permanent in nature, comprise

personal characteristics and character traits. Instrumental values refer to
preferable modes of behavior and include values like honesty, sincerity
ambition, independence, obedience, imaginativeness, courageousness,
competitiveness and also some negative traits too. Organization also have
instrumental values which can be ascertained from the organizational culture
and these are permanent in nature and difficult to change. Instrumental values
are difficult to change
Terminal values
In our personal lives, terminal values are those things we can work
towards or we think are most important and we feel are most desirable-terminal
values are desirable states of existence. Terminal values include things like
happiness, self respect, family security, recognitions, freedom, inner harmony,
comfortable life, professional excellence etc. In a nutshell, terminal values
signify the objectives of the life of a person- the ultimate things the person wants
to achieve through his or her behavior the destination he wants to reach in life)
where as instrumental values indicate the methods an individual would like to
adopt for achieving his life’s aim (the path he would like to take to reach his
destination). However, terminal values can be changed and this can be seen when
there is a change of top management or CEO.
. List of Terminal and Instrumental Values:
Rockeach has developed 18 values each as terminal and instrumental

values
Terminal values refer to desirable end states of existence.

These are the goals that a person would like to achieve during his or
her lifetime. These values are vary among different groups of people
in different cultures. Instrumental values refer to preference modes of
behavior. These are preferable modes of behavior, or means of
achieving the terminal values.
Instrumental and intrinsic values are technical labels for the
two poles of an ancient dichotomy. People seem to reason differently
about what they ought to do—good ends-and what they are able to do-
good means. When people reason about ends, they apply the criterion
intrinsic value. When they reason about means they apply the criterion
instrumental value.

The terminal values are: The Instrumental
values are:
1. True friendship 1.Cheerfulness
2. Mature love 2. Ambition
3. Self-respect 3. Love
4. Happiness 4. Cleanliness
5. Inner harmony 5. Self-Control
6. Equality 6. Capability
7. Freedom 7. Courage
8. Pleasure 8. Politeness
9. Social recognition 9. Honesty
10. Wisdom 10.Imagination
11. Salvation 11.Independence
12. Family security 12.Intellect
13. National security 13.Broad-indedness
14. Sense of accomplishment 14. Logic
15. A world of beauty 15.Obedience
16. A world at peace 16.Helpfulness
17. Comfortable life 17.Responsibility
18. An exciting life 18.Forgiveness
4. Instrumental Vs Terminal Values

Instrumental and terminal values are different, though not absolutely.
They have some similarities and many differences.
Similarities
 Guidelines of behavior

 Followed by humans

 Within the individuals

 Important for social peace and order

Differences
Instrumental values Terminal values

Initial values Ultimate values
Means Ends
Acquired Inborn
Temporary Permanent
Will change easily Will not change easily
Lower level values Higher level values
More conflicting Less conflicting
Culturally based Humanity based
Valued on utility Valued on goodness
Teleological approach Deontological approach
5. Conclusion
Very often, it is difficult to distinguish between instrumental and

terminal values because of their overlapping nature. So, when there is
ambiguity with regard to these two values, it should be resolved with, in
the context of time, situation, purpose and level of behavioral outcome.
For example, honesty is an end value to the individual; it is an
instrumental value for a leader to gain trust and real following. Non-
violence is an end vale; but, in a war it is instrumental value to fight
violence and to avoid higher violence.

UNIT II
6 FOUR PRINCIPLES OF VALUE BASED LEADERSHIP
1. Introduction
Leadership is not simply about leader. Leadership is about the growth

and positive change that a leader can bring about while working with others.
That means, leadership is the opportunity to influence people. Value based
leadership affects people on an even higher level because value based
leadership is a system; it takes into consideration the whole organization that
it organizes around well defined core values, which are nothing but the sacred
fundamental convictions that employees have about how they want to behave
in the context of organization’s mission. A values-driven leader’s actions
inspire employees by example and motivate them to do good things and focus
on what truly counts. Values based leadership rests on four basic principles-
self reflection, balance and perspective true self confidence and genuine
humility. Ethical leaders consider these principles when they identify and
pursue their most critical goals.
2. Four Principles
The four principles of value based leadership were coined by Harry M.

Jansen Kraemer Jr. in his book “From Values To Action: The Four Principles of
Value-Based Leadership”. In this book, he outlined the four primary
principles of ethical, value based leadership. According to Kraemer, from values to action, centers on what the four principles of
values based leadership. The first is self reflection. We must have the ability to identity and reflect on what we stand for, what
our values area; and what matters most to us. To be values based leader, we must be willing to look within ourselves through
regular self-reflection and strive for greater self-awareness. After all, if we aren’t self reflective how can we truly know
ourselves? If we don’t know ourselves how can we lead ourselves? If you can’t lead ourselves, how can we lead others? The
second principle is balance which means the ability to see situations from multiple perspectives and differing viewpoints to gain
a much fuller understanding. Balance means that we consider all sides and opinions with an open mind. The third principle is
true self-confidence, accepting
ourselves SriKalahastiswara weare.InstituteWerecognize ofInformation ourstrengthsandManagement andourweaknessSciences
andPagestrive23
for continuous improvement. With true self confidence w know that there will
always be people who are more gifted, accomplished, and successful and so
on than we are. The fourth principle is genuine humility. We should never
forget who we are and where we came from. Genuine humanity keeps us in
perspective, particularly as we experience success in our career. In addition if
helps us value each person we encounter and treat everyone respectfully.
Self reflection
Self-reflective leaders know their priorities, values and ethical

boundaries. By using careful reflection, Kraemer developed a reputation as a
mindful “explicit decision maker, someone who carefully weighs all the
considerations and consequences inherent in a business decision. Self
reflection helps leaders determine their priorities and answer the question,
“What should we be doing?” Such cognition requires silence. A leader should
find a quiet place and take time to think. The leader should conduct self-
reflection sessions for himself and see what he actually said and what he did,
what went well and what did not, what did the leader learn today that he will
have an impact on how he lives and acts next day.
Balance and Perspective:
The world is not black and white. It is gray. Leaders must realize this
basic fact and operate accordingly but that requires balance and perspective.
This means leaders should welcome numerous view points, including those
that differ from their own. Indeed, leaders should solicit as many outlooks as
possible on significant issues. Balanced leaders have open minds and listen
willingly to others, they want to develop well- rounded opinion and they seek
through reporting rather than confirmation of their own ideas. Their primary
concern is not to be right but do the right things. This means their staff
members feel comfortable speaking their minds and don’t worry that their
leader will think less of them for presenting different ideas. Leaders who rely
on balance and perspective extend this sensibility to every area of their lives.
They do not become consumed by work or anything else. When you achieve
life balance all the facts of your life work well together.
True self confidence

True self confidence is the opposite of false self confidence which is
empty bravado. People with false self-confidence feel they are right and
everyone else is wrong. True self-confidence is accepting ourselves as we are.
We recognize our strengths and our weakness and strive for continuous
improvement. With true self confidence w know that there will always be
people who are more gifted, accomplished, and successful and so on than we
are.ence is not just inner fortitude. it is fortitude based on being competent in
all the important areas of your life.
Genuine Humility
Genuine humility is as important and very often more important than

true elf confidence. Indeed, people flock to those who are confident and yet
act with genuine humility. Genuine humility is knowing what we are,
wherefrom we have come, and where we are going We should never forget
who we are and where we came from. Genuine humility keeps us in
perspective, particularly as we experience success in our career. In addition if
helps us value each person we encounter and treat everyone respectfully.
3. Significance of 4 Principles of Value Based Leadership:
Self Balance and High level

Reflection Perspective performance
Four Principles of
VALUES
Values Based ACTION GOALS
Leadership
True Self Genuine Ethical

Confidence Humility Achievement
From Value to Action: Values are important not just as precept, but in
practice. There values should make as inspire the people to phase into action

so that the organizational goals will be achieved. The four principles will do
this job of transforming the values into action.
Higher levels of Performance: The values driven leader’s actions will
inspire employees by example and motivate them to do good things and
focus on what truly counts. This leads to high level of performance by
employees.
Reaching Critical Goals: The four principles of value based leadership
enable the leader to inspire and motivate employees to reach critical goals.
Critical goals need pursuit and perseverance with ethical perspective.
Effective Leadership: The four principles of value based leadership are the
foundations for effective leadership. Leadership is not just leading, but
ethically and effectively. With these four principles, the leader can take the
followers to higher levels of living.
Social Bondage: Establishing social bondage is necessary for effective
leadership. The four principles of value based leadership help the leader to
create an opportunity to pick up on any disconnects and thus establish wider
and deeper links with the peers and followers.
Leader of Learning Organization: With these four principles of values
based leadership, the leader can make and lead a learning organization. A
learning organization is one which improves always bringing the employees
to higher levels of living and empowerment. The four principles of value
based leaderships become the foundation of learning organization.
From Success to Significance: The success of an organization grounded
on the four principles will be celebrated not only by the employees and
stakeholders but by the entire society, The success is celebrated by the
society as a whole.
Leaving Global footprints: The four principles of values based leadership
help the leaders leave the legacy of leadership and thus leave the global
footprints. The leaders will be remembered and cherished by other leaders
because of their achievements and also their values.

7. SELF REFLECTION
1.Introduction
The path to becoming value based leader begins and ends with the
four principles of values based leadership. These principles are closely
interconnected and build on each other. Together they form a solid foundation
for values based leadership to arise. To lead other people effectively we have
first got to get good at leading ourselves and the key to leading is to engage in
regular periodic self reflection. Unless we pause from time to time and look at
how we are doing, we would not know what we need to be doing differently
in the future to get better.
Self-reflection is central to the leadership. The more we self-reflect the

better we know ourselves, our strengths our weaknesses, abilities and areas to
be developed. Being self-ware we know what we stand for and what is most
important to us. With this clarity, we are able to connect and communicate
with others more effectively. Grounded in self knowledge, our leadership
becomes more authentic.
2. Meaning
-Self reflection is the ability to identify and think carefully or consider

(reflect) what we stand for, what our values are, and what matters most to us.
-Self reflection is like looking into a mirror and describing what we

see. It is a way of assessing our-selves our ways of working and how we
study. To put it simply, reflection means to think about something. Reflecting
and composing a piece of self reflective writing is becoming an increasingly
important element to any form of study or learning.
Self Reflection involves asking the questions ourselves
- Strengths – What are our strength for example are we well

organized do we remember things?
- Weaknesses – What are our weaknesses for example are
we easily distracted do we need more practice with a
particular skill?
- Skills – What skills do we have and what are we good at?
- Problems – What problems are there at work/home that
may affect us, for example responsibilities or distractions
that may impact on study or work?
- Achievements – What have we achieved?
- Happiness – Are there things that we are unhappy with or
appointed about what makes us happy?
- Solutions - What could we do to improve in these areas?
3. Importance of Self Reflection
Self reflection is often the difference between being busy and being
productive. Or put it in other way, self-reflection transforms activity into
productivity. It enhances our leadership measurably because we become
aware of the explicit decisions we are making as a leader and that in turn
generates greater transparency. We can make great decisions rather than
being forced into quick decisions which subsequently end up being viewed as
short sighted and inferior.
Reflecting helps you to develop your skills and review their

effectiveness, rather than just carry on doing things as you have always done
them. It is about questioning, in a positive way, what do you do and why you
do it and then deciding whether there is a better or more effective way of
doing it in the future.
In any role whether at home at work, reflection is an important part of

leaving. You would not use a recipe a second time around if the dish didn’t
the first time would you, you would either adjust the recipe or find a new and
hopefully, better one. When we learn we can become stuck in a routine that
may not be working effectively. Thinking about your own skills can help you
identity changes you might need to make.
To be specific, Self Reflection is important in the following ways.
Wake up call
Self reflection can serve as a wake-up call for us- it can remind us to go
out and live our life more fully in the present rather than obsessing over things
we can’t control which may or may not happen in the future. That process of

reconnecting will make us a better leader because we will be more aligned
with happening all around us.
Make better decisions
As a result of self reflection, we make better decisions because we

will take the time to understand all the outcomes and consequences of the
decision we are faced with.
We will become more sensitive
We will become more sensitive to opportunities and challenges which

arise on our watch because we have taken the time and effort think about how
we handled situations in the past.
Create an opportunity to pick up on any disconnects
Between what we are doing and what our priorities really are. It’s all
too easy to let momentum take in us wrong directions and self-reflections can
break the grasp of momentum and make us think about what’s going on.
Noticing negative patterns life
Self reflections allow us to notice negative patterns in life and

leadership. It gives an opportunity, to change even through instruction and
consistency, recognize these patterns and shows how and why they have a
detrimental effect our and work
Focus on bigger pictures
Self reflection keeps us focused on bigger goals and vision. It reminds

us about our duties and objectives to achieve greater goals and objectives
Avoiding worry
Self reflection prevents us from worrying about things which are out
of our control. Self reflection allows to detach from those aspects which are
beyond our control and instead direct our energy toward things we can
absolutely improve on ourselves

Helps us face our fears
Self reflection shows our strengths and weaknesses. It allows us to

admit our fears to ourselves and actually learn the best way to handle them
Making decisions on Conscience
Self reflection helps us make decision based on fully understanding

what is right or wrong for us. We make choices based on what we truly
believe, without allowing others peoples input. But following our consciences
we will in turn feel better the path we choose.
4. Conclusion
The great thing about self-reflection is that it is the kind of activity

that we can engage in at any time, particularly when we are forced to wait and
spend time without any work like when we are terribly tired or when trains or
flights are delayed. Instead of frittering away our time, we can sit down and
give thought to what is happening and where we can improve. Further, there
is no right or wrong way to engage in self-reflection regularly. We just need
time and place where we can be silent and listen to our inner voice. In
addition to regular ongoing self-reflection periods, many leaders also take the
time each year to engage in more extended self-reflection sessions some have
a habit of going on an annual silent retreat where self-reflection is the entire
agenda for three days or so.”Learning how to take the time to step back and
reflect is absolutely essential to your becoming a value-based leader.” – Harry
Kraemer Jr.

8. BALANCE AND PERSPECTIVE
1. Introduction
Balance is the second in the four principles of value based leadership,

the others being self reflection, self confidence, and genuine humanity. The
path to be coming value based leadership begins and ends with the four
principles of value based leadership. These principles are closely
interconnected and build on each other. Together they form a solid foundation
for value based leadership to arise. Balance means the ability to see situations
from multiple perspectives and differing viewpoints to gain much fuller
understanding. Balance means that we consider all sides and opinions with an
open mind.
2. Meaning of Balance and Perspective
-Balance, in literal sense, means awareness of both viewpoints and

matters; following rationality, and maintaining neutrality and objectivity.
-Balance means the ability to see situations from multiple perspectives

and differing viewpoints to gain much fuller understanding. Balance means
that we consider all sides and opinions with an open mind.
-Balance is the ability to see issues, problems, and questions from all
angles, including from differing viewpoints, even those that are diametrically
opposed ones.
3. Components of Balancing
The concept of balancing has different meanings and perspectives. In

the context of leadership, it means balancing between different viewpoints,
different time perspectives, different objectives and goals, and between
different components of an organization and society at large. Balancing
involves the following aspects.
Balancing Different Viewpoints:
Balance is the ability to see issues problems, and questions from all
angles, including from even those that are diametrically opposed to with us
balance. We are able to make decisions explicitly with an understanding of the
broad impact, instead of focusing narrowly. In all the aspects of our life,
professionally and personally pursuing balance will give as a richer more
holistic perspective
Every leader gets know there are always more than one way to
look at anything. If we charge on under the assumptions that our perspective
is the right one and everyone else is wrong we are not going to be as
successful. We will end up we will spending more time trying to convince
others why we are correct and less time doing what needs to be done. Values
based leaders don’t assume they have all the answers but solicit ideas and
suggestions from everyone on the team and therefore end up making much
more robust decisions. Leadership is not a democracy. Our job as a leader is
to seek input not consensus. If decisions are made simply by vote and
majority values the company would not need us. What the team member’s
desire above all is to be part of a fair process and to understand why a
particular decision is being made?
Balancing Perspective on Past, Present and Future
Balance in time perspective is the most important value in our

personal and professional lives. This balance is important even for leaders. A
balanced time perspective can make people feel more vital, more grateful, and
more satisfied with their lives. It can be fine to have fond memories of past,
but spending too much time remembering the past can keep us from enjoying
the present. But, past should teach us. Thinking and fearing about future is
also unproductive. But, we have to make future plans.
Balance between Short term and Long term Goals
Another dimension of achieving balance as a leader is that we have to

run the organization to achieve both short term and your long term objectives.
Getting this right can be tricky. It requires that we focus on generating the
short term results like meeting sales and earnings targets without losing sight
of the investments which are also required to be in position to realize our
organizations long term aims.
The key to hitting a good long term short term balance is not to view
this as an either-or scenario but as more of a continuation of the same
spectrum. What is important is that mindful of the entire spectrum so as to
keep everything in balance. We cannot undermine the present and totally
ignore investing for the future; both activities are essential and required.
Balance between Organizational and Community Goals
Organizational goals should go together with the community goals.

Nothing prevents the organizations to strive to earn profits and build wealth.
But, this should not go against the interests of the community. The
organizational leaders should always keep in mind the interests of the
community as a whole.
Balance in Thinking
Balance between Tactical thinking and Strategic thinking is also

necessary. In a nutshell, tactical thinking is doing things right, while strategic
thinking is doing the right things .Strategic thinking is typically leadership
creating the vision whereas tactical thinking management implementing the
vision. Strategic thinkers tend to analyze the situation but often fail to take
action. Tactical thinkers are all about doing something but they often don’t
think before springing into action. So oftentimes their action is ineffective,
and perhaps unnecessary. If we do something right but it’s the wrong thing to
do our efforts will be futile. Conversely, if we do the right thing but we do it
wrong we will also fail miserably. Strategy without tactics is the slowest to
victory. Tactics without strategy is the noise before the defeat –Sun Tzu.
Personal balance
At a personal level balance is required as well. Not only is there the

long term vs short term dynamic but we also must decide how to balance our
professional and personal life. If we exhaust ourselves by focusing on work
exclusively and don’t take the time to sharpen the saw periodically, we won’t
be all that effective as a leader. By living a genuinely balanced life, we will
be spending a reasonable amount of our time and energy in each area over the
period of a week.

3. Importance of Balance and Perspectives
Happiness: At personal level, happiness may stem from a balanced

perspective involving looking fondly on the past, enjoying present and having
goals to strive for in the future. Many researches also showed that having this
sort of “balanced time perspective” can make people feel more vital, more
grateful, and more satisfied with their lives. If we are too excessive or rely too
much on any one of these perspectives, it becomes detrimental and we can get
into very destructive types of behaviors. People who have a positive attitude
about their past, enjoy the present and focus on goals for the future would be
the happiest, Howell said that a well-being depends on the balance between
these elements. If we are really dominant in one type of perspective, we are
very limited in certain circumstances.
Success: Balance is the easy and comfortable way to success. The absolute lack
of balance will create hurdles and obstacles in the path of success. This is true for
an individual and also for an organization. Maintaining different balance
perspectives is nothing but laying strong steps for an ultimate success.
Sustainability: Balance in perspectives is necessary for sustainability.

Sustainability is keeping success even in the long run and is necessary for
every organization, particularly, a learning organization. Hence, the leader
has to maintain balance between past, present and the future, and also
between long term and short term perspectives.
4. Conclusion:
A leader is not an ordinary individual; he is in the fore front with a

responsibility of not only directing the followers, but also enlightening them
and empowering them to go from lower levels to higher levels of learning,
behavior, living and achievement. He or she is a leader not to one single
section or group of people but to the whole one. A leader should also leave
footprints. All these need a balance in perspective.

9. TRUE SELF CONFIDENCE
1. Introduction:
True or genuine Self-confidence is one of the four principles of value

based leadership, the other three being Self Reflection, Balance and Genuine
Humility. Self-confidence is confidence is one’s own activities. When this
self-confidence is real and absolute, and not pretention of initiative, it is
called Genuine Self-confidence. If self-confidence is not genuine, it leads to
egotism and arrogance. True self-confidence is the starting point for building
up confidence of the society. When we have self-confidence, we also believe
in others. This develops love and trust and helps in building social bondage,
which is very much necessary for a leadership. Hence, it is necessary for a
leader to possess self-confidence and develop it so that the leadership
becomes effective.
2. Meaning and Characteristics:
In the general and literal terms, self-confidence means the following.
-Self-confidence is to be secure in oneself and one’s abilities
-Self-confidence is a feeling of trust in one’s abilities, qualities, and

judgment.
-Self-confidence is the attitude that allows one to see and accept

oneself as one is.
According to Harry Kraemer Jr. “True self-confidence is an inner

quality that establishes our leadership and enables us to empower our team.
Far more than just competency at our job or mastery of certain skills, true
self-confidence is the attribute that allows us to see and accept ourselves
exactly as we are. With true self-confidence we are comfortable in our own
skin recognizing our strengths as well as our weaknesses. We know what we
know, and we know that what we don’t know. If we have true self-
confidence, we are committed to continual self-improvement, to become even
better in that areas at which we already excel, while developing those in
which we are not as strong.”

If we are genuinely self-confident, we will know we can not be good at
everything. We will be proud of our achievements but realistic about our
shortcomings. We will also be forthcoming about our past failures without any
need to beat ourselves up or feel insecure as a result of them. Self-confidence
only becomes feasible if we engage in regular, periodic self-reflection combined
with taking action to addresses our weaknesses and move forward.
.Characteristics of True Self-confidence
Easy to work with others: If we are self-confident we will appreciate the

skills, attributes and qualities other people on your team add to the equation
and actively seek out their input. This attitude is good because it encourages
anyone with valuable information to speak up.
Welcome anyone who challenges the facts: If we are self-confident, you

will ask everyone else to voice their opinions and make their concerns well
known. Instead of discouraging questions, we will do all we can to get
everyone to express their concerns openly so the best decision can be made.
Questions won’t be seen as a challenge to our authority.
Candid about our strengths and weaknesses: If we are self-confident, we

will be entirely open about we are good at and what we are not. We will
understand and appreciate this is the only way that we can work with a team
to generate the optimal results for our organization and therefore we will
make a point of describing ourselves with candor and openness.
Willing to stand up and be counted: If we have self-confidence, we will speak

up when the organization is considering doing something unwise. Sometimes this
will take courage because we might end up in a situation where we challenge
what our immediate boss wants to do, but if we have genuine
self-confidence, we will point out what the right thing to do is regardless.
Raising one’s concerns: If we are truly self-confident, however, we will raise
our concerns. We might approach our boss and say. Based on everything I
know, this is what I would recommend we do about this and these are the
reasons why I have reached that conclusion.

3. Building Self-Confidence
Two main things contribute to self-confidence: self-efficacy and self-

esteem. We gain a sense of self-efficacy when we see ourselves (and others
similar to ourselves) mastering skills and achieving goals that matter in those
skill areas. This is the confidence that, if we learn and work hard in a particular
area, we’ll succeed, and it’s this type of confidence that leads people to accept
difficult challenges, and persist in the face of setbacks. This overlaps with the
idea of self-esteem, which is a more general sense that we can cope with
what’s going on in our lives, and that we have a right to be happy. Partly, this
comes from a feeling that the people around us approve of us, which we may
or may not be able to control. However, it also comes from the sense that we
are behaving virtuously, that we’re competent at what we do, and that we can
successfully when we put our minds to it. Becoming more confident is readily
achievable, just as long as we have the focus and determination to carry things
through. The things we’ll do build our self-confidence will also build success.
After all, our confidence will come from real, solid achievement. Here are
three steps to self-confidence, for which we’ll use the metaphor of a journey;
preparing for our journey; setting out; and accelerating towards success.
Steps 1: Preparing for our journey: The first step involves getting ourselves
ready for our journey to self-confidence. In preparing for our journey, we have
to do these five things:
-Looking at what we’ve already achieved, Thinking about our life

so far, and list the ten best things we’ve achieved,
-Thinking about our strengths using a technique like SWOT Analysis

to take a look at whom and where we are,
-Thinking about what is important to us, and where we want to go,

and lastly thinking about the things that are really important to us, and what we
want to achieve with our life.
-Start Managing our mind; at this stage, we need to start managing

our mind. Learn to pick up and defeat the negative self-talks which can destroy
our confidence.

-Committing ourselves to success; the final part of preparing for the
journey is to make a clear and unequivocal promise to ourselves that we are
absolutely committed to our journey, and that we will do all in our power to
achieve it.
Step 2: Setting out: This is actually the starting point moving towards our
goals. By doing the right things, and starting with small, easy wins, we will
put ourselves on the path to success – and start building the self-confidence
that comes with this. This step involves
-Building the knowledge need to succeed: Looking at our goals,

identify the skills we’ll need to achieve them. And then look at how we can
acquire these skills confidently and well.
-Focusing on the Basics: When we’re starting, we don’t try to do

anything clever or elaborate. And we don’t reach for perfection – just enjoy
doing simple things successfully and well.
-Setting Small Goals, and Achieve Them: Starting with very small
goals we identify in step 1, get in the habit of setting them, achieving them,
and celebrating that achievement.
-Keeping Managing our Mind: Stay on top of that positive thinking,

keeps celebrating and success, and keeps those mental images strong.
Step 3: Accelerating Towards Success: By this stage, we’ll feel our self-
confidence building. This is the time to start stretching ourselves. We make
the goals a bit bigger, and the challenges a bit tougher, increase the size of our
commitment, and extend the skills we’ve proven into new, but closely related
arenas.
4. Conclusion
Self confidence is extremely important in almost every aspect of our

lives, yet many people struggle to find it. Sadly, this can be a vicious circle:
people who lack self-confidence can find it difficult to become successful.
Confident people inspire confidence in others: their audience, their bosses,
their customers, and their friends. And gaining the confidence of others is one
of the key ways in which a self-confident person finds success.
10. GENUINE HUMILITY
1. Introduction:
Genuine Humility is one of the, and the fourth, principles of value

based leadership, the first three being self Reflection, Balance and Self-
respect. Genuine humility refers to the real, absolute, humility which is not
pretention or the pseudo-humility. According to Hary Kraemer Jr, pure
and simple humility will keep us grounded as our career advances. And,
genuine humility is easy. What is necessary is not lose the sight of who we
are and how other people helped us in our career to move forward and
where we come from. Genuine humility is most important for leadership.
The more the leader practices humility, the more the leadership will shine
in the future because humility showcases what the leader is.
2. Meaning and Definitions
-Genuine humility is nothing but the humility which is genuine,

real and absolute, not pretending, not pseudo, and not imitative. Humility
is the quality of being humble. When this quality is genuine real, it is
called genuine humility. Thus, the meaning and definition of humility can
be applied to the concept of genuine humility, with the additional
qualification of being genuine, real and absolute.
- Genuine Humility is the self restraint from excessive vanity, and

can possess moral or ethical dimensions.
- Genuine Humility is multi dimensional and includes self

understanding and awareness, openness, and perspective taking.
-Genuine Humility can be defined using two main characteristics.

On the intrapersonal level, humility involves an accurate view of self. On
the interpersonal level, humility involves a stance that is others oriented
rather than self focused.

-Genuine humility is not an exercise to look like a good guy. If it is,
then it is not a genuine humility. Rather, it is a reminder that every single
person adds values and that no one is better than agendas.
-- Harny Kraemer Jr
Characteristics of Genuine Humility
¾ Not forgetting the roots – Genuine humility means

grounded in the roots. One should not forget the
background, wherefrom one came this far
¾ Open to other’s opinions – Genuine humility requires to be
open to other’s opinions.
¾ Tend to others’ need – A person with genuine humility
always tends to other’s needs. He/She always is ready to
help others.
¾ Admitting mistakes – This is the most important
characteristic of genuine humility. One should not shy away
from admitting and apologize for mistakes.
¾ Accepting ambiguity – In the real world, issues are not
always crystal clear. They are always shrouded with
confusion and ambiguity. Genuine humility requires that
this ambiguity should be accepted.
¾ Self Reflection – This is the first requisite of genuine
humility. One should know well about oneself. Without this,
any amount of display of humility is only pretention, not
genuine humility.
¾ Letting people do their jobs – Persons with genuine
humility respect others and their abilities and let people do
their jobs freely. They do not interfere with their over
confidence.

3. Significance of Genuine Humility
Enhancement of life definitions

Genuine humility will enhance every dimension of our life. Our
personal, social and professional life will be enriched by genuine
humility; it is the most essential element is the spiritual dimension.
Strengthening social bonds:
Genuine humility creates respect and trust is the person. This will
strengthen the social bonds between leaders and followers, between
peers and outsiders.
Optimization of benefit –
Genuine humility might help in optimizing the benefits of competitive
traits by buffering the wear and tear due to frictions between the
competitive traits.
Better health outcomes:
Genuine humility will result in better health outcomes. Our personal
life will be peaceful and better, it gives an opportunity to contribute to
the organization.
Keeps life in perspective:
Genuine humility keeps our life in perspective, particularly as we
experience success in our career. The success or failure in our career
does not divert us from real perspective.
Valuing each person:
Genuine humility helps the person to value every other person he
encounters and treat everyone respectfully.
4. Ways for Genuine Humility:
Knowing what we don’t know: This is the first and most

important step for genuine humility. Assuming that we know
something is not enough; we should know what we don’t know
Never Forgetting the roots: We should always remember who we
are and wherefrom we have come. We should stay the same person
we have always bear.
Focusing on people around: Genuine humility demands that we
focus an people around us. We should continue our friendship with
people who were alongside us. They will help us to keeps ourselves
in the ground and head out of the clouds.
Reminding about responsibility: We should remind ourselves
about who we are and what is our job. This will help us to stay in
our roots.
Resisting own publicity: Genuine humility also demands that we
should resist ourselves from falling for our own publicity.
Otherwise, pride and vanity will invade us taking away the hope of
being humble.
Thinking about improvement: We should think about all the
ideas for improvement we had in the early days and to see how
many of those things we can actually change now in the present
position of influence.
Recognize the value of everyone: We should recognize the value
of everyone and remind ourselves no matter what our business
principles say. This will enhance respect all us.
Never underestimate competition: The competition is universal
and never ending. We should never underestimate the existing
competition and also the potential competition.
Spirit of service: We should inculcate the spirit of service. This
will keep us in the ground and also bring love and respect towards
us.
Curiousness: We should be passionately curious always. We
should listen to the worlds ideas. This will broader our perspective.

UNIT III
11. CREATING A TEAM FROM SCRATCH
1. Introduction :
Creating a team from scratch refers to the process of
building a team from the preliminary stage or from the starting line.
Other alternative method of create a team is hastily assembling a
team from different parts or sections of an organization. But, the
second method of creating a team runs the risk of disintegration
and failure. That is why, though the former method is a difficult
task, successful and effective leaders try to build new teams from
the scratch.
2. Meaning:
¾ Creating a team from scratch means building an entire

department from the ground up: from hiring, to selecting the
software, to training the employees to eventually delivery
results.
¾ Creating a team from scratch means, building a team with a
clean slate, few rules and only an end game in mind.
The word scratch means several things – preliminary,

starting line, ground, and zero. And, creating a new team is also a
process. Thus, creating a new team from scratch means the process
of building a new team from the primary stage or from the starting
line. The new team may be a department, or a task performance
team. The new team can be created in two ways: it can be built
from the beginning or preliminary stage of recruiting, training and
making them work to get results. The second alternative is to make
an assemblage of people from different parts or departments of an
organization and call it a team, asking it to perform its task. The
former method is called creating a new
team from scratch, and the latter method is called merely as an
assemblage of a team.
Creating a new team for scratch is a difficult and a cumbersome

task, while the assemblage of a team is an easy job. The former is a
process; the latter is an event. Still, the first method is more advantageous
than the second method of building a new team because an assemblage
runs the risk of non-performance and dysfunction. Creating a new team
from the scratch has the following advantages.
Strong foundation Rooted in the ground- If the team is started

from scratch, the team will have a strong foundation, because it is rooted
in the ground. It can withstand any type of threat.
Perfect coordination: As the team members are new and with

single vision and goals it is early to build coordination among the
members. The coordination will also be perfect.
Easy Motivation and Engagement: It is easy to motivate and

even engage the team members, because all the members are hired afresh,
they do not have other objectives.
Ethically strong: When the team is formed from scratch, the

members will totally adhere to norms and values of the team. The team
will be ethically strong.
Coherence: A team created from the scratch will be more

homogenous. It will have greater coherence.
2. Steps for Building a Successful Team:
The opportunity doesn’t come often for us, but getting the chance
to build a brand new team from scratch is one of the most enjoyable
experiences a manager will ever have. After all, building a successful
organization requires planning, creativity, execution and oversight all at
once. It means building an entire department from the ground up, from
hiring, to selecting the software, to training the employees, to eventually
delivering results. If started with a clean slate, few rules and only an end
game in mind we can build a good team. Developing a successful new
team from scratch is not easy and can be intimidating if we stop to think
that about what it is we’ve been asked to do. Some ups and downs, and
countless frequent flyer miles for the leader and the team are imminent.
But, the team will be fantastic and sure to succeed.
Step 1: Starting with Basics: Building a good team takes patience,

thorough planning, and the discipline and willingness to not take on
everything at once. It’s perfectly acceptable and recommended to start
with the basis, and grow the infrastructure and processes as we grow the
team.
Step 2: Creating a Team Charter: Early on, we should take a little time
to create a team charter, even if it’s just for ourselves as the only team
members. The team charter can not be tweaked and modified down the
road, but the process of creating one helps us narrow focus to what’s really
important.
Step3: Hiring the Right People: Hiring is among the most important and
strategic decisions managers will ever make. Ultimately, the people we
employ to do the work will make all the difference in the results we
achieve. Building great team chemistry starts by recruiting candidates
based on their drive and motivation, and who can adapt to the job and can
learn the necessary skills. We should avoid quick hires simply based on
credentials and take the time to make sure the people we bring on to the
team are interested and enthusiastic about being part of the team and
succeed. Recruiting a group of people who are motivated to do their part is
to see the team succeed.
Step 4: Setting Goals That People Understand: Setting goals for a team
may sound like a fluffy management concept, but is actually a critical step
in building a new team. The reason: like our charter by setting goals for a
new team, we are establishing a shared and central purpose for everything
the team does.
Step 5: Holding Manager Assimilation: Now that we have constructed
the right team and have set goals and objectives, we make sure the team
knows who we are, our expectations and how we like to work. Manager
assimilation is a great way to do this. A team’s unity starts with the leader,
so making the effort to hold such an event is time well spent.
Step 6: Focusing on the Relationships: Apart from the right people and a
clear objective, another key ingredient to building successful teams is an
environment of co-dependence and shared winning. That is, the best
results come from a team whose players hold a sense of collective success.
To help build trust between employees and team members, we need to
create an environment where relationships can be forged. Particularly
when we have a new team with many new hires, investing in informal
time as a team will pay the dividends in the office.
Step 7: Creating a Place Where People Want to Be: Having

spent so much time and effort building the team, we will want retain
employees for the long haul. Ultimately, the key to building a successful
team is to get the right people, set a clear course, and build a strong unit
that mutually works towards the end goal. It’s about people, purpose and
performance.
4.Conclusion:
The opportunity to create a team from the scratch does not come
often to us. But getting the chance to build a brand new team from scratch
is one of the most enjoyable experiences a leader will ever have. After all,
building a successful organization requires planning, creativity, execution
and oversight all at once. However, developing a successful new team is
not an easy task, it can be intimidating also if we stop to think that about
what is we have been asked to do. There is bound to be some ups and
downs and countless experienced and experiments for the leader and team
members. But, the new team will be fantastic.

12. TURNING AROUND A TEAM
1. Introduction
The phrase ‘turn around’ means many things – to physically rotate

horizontally 360 degrees; to change to the opposite direction from a previous
position; to reverse the expected outcome of a game from losing position to
the gaining position; to reverse the trend usually towards a more favorable
outcome. A turn around company, in the business context, is a company that
is moving from loss incurring position to profit making status. So, turning
around is a process of moving from an unfavorable position, be it failure, loss
making, losing, infamous to a favorable position success, profit making,
winning or famous position. Turning around will not happen in a moment or
in short period it takes a long time, that too when supported by strategic
approach sincere effort and unstated perseverance.
Meaning
In the context of a team,’ turning around’ means turning the

dysfunctional team to a functional or successful, high performance team.
Teams might not have succeeded once, teams might have failed, teams might
have become dysfunctional and unproductive, and teams might be low
performance teams. There may be many and different reasons, both inside
and outside internal and external. But, the leader’s responsibility is to
transform this dysfunctional team or a low performing team to a functional,
high performing team. This is what is called turning around a team.
2. Essentials for turning around a Team
Creating a sense of Security: There is power in making it clear that one will
be fired initially. This creates a sense of security that is critical to the
teamwork and trust required to turn around a poorly functioning department.
Creating a Culture of the Team: It is easy to walk into a new management

position and identify a Jack or a Joe who is the bad apple and just get rid of
them. Instead, we have to step in and create the culture of the department. We
need to be decisive and go in with the thought process of how we can really
engage the entire department by working as a team.

Assuming the best in the team: Assume the best in the team. About 95 percent
of people love their jobs and the companies they work for, but 85 percent hate the
office drama. The take away people want to do a good job but often either do not
know how or lack a leader for them to do their best work.
Creating Set of Guiding Principles: We should create s list of leadership

maxims and philosophies that guide our professional and personal life.
Written in everyday language, we have to share this list with our employees.
Team members can apply the maxims to any decisions they make and use
them as a way to predict our behavior. Then they begin to trust us.
Creating strict standards: We should create strict standards to which each

employee must adhere. This can include everything from customers’ service
standards to office behavior like gossiping. It should clearly state the
ramifications of failing to stick to the standards.
Training team members: The team members need training on effective

communication. It might make sense to bring in an outside consultant or
require team members to read a book on communication.
Speaking with individuals: It is necessary to speak with each individuals

and find out what motivates them, and what are the strengths. This makes the
team feel that someone is listening and that opinions are important and the
manager learns about them and how they operate.
3. Steps for turning around a Team
Taking a team that is performing poorly and turning it around is not an

easy task, it is a tough job. It needs following steps to be taken very seriously.
Telling the staff the truth: The only way to change people is to tell them in
the clearest possible team, what they are doing wrong and if they do not want
to listen they do not belong to the team. The leaders have to be honest with
people brutally honest. We have to tell them the truth about their performance
we have to tell it to them face-to-face and we have to tell it to them over and
over again. Sometimes the truth will be painful and sometimes sayings it will
lead to an uncomfortable conformation so be it.

Taking Charge: To lead, we have got be a leader. The leader has to tell the
team that losing would no longer be tolerated. Players who were contributing
to the team’s weak performance would be given a chance. If they do not
change they would be gone. It will be a tough message but we have to
balance it with a more positive one. We have to tell them what we think a
team is all about achievements, but the only the permanent value of work lies
in achievements and that comes only with relentless effort and commitment.
It was not going to be easy, but at the end of the day, achievement would be
the most important thing they would take home with them. These
conversations also give me a basis for making an honest evaluation of every
player. We should make it clear from day one that we are in charge and do
not wait to earn our leadership impose it.
Process of confrontation: If we want to get the most of people, we have to

apply pressure, the only thing that any of us really responds to. Creating
pressure in an organization requires confrontation, and it can get very intense
and very emotional. But we relish confrontation not because it makes me feel
powerful but because it provides an opportunity to get things straight with
people. It’s not until we look people right in the eye that we get to the sources
of their behavior and motivation. Without confrontation, we are not going to
change the way they think and act. Conformation does not mean putting
someone down. When we criticize members of the team we need to put in a
positive context.
Building Success Culture: The prospect of going from a team that is at the
bottom of the standing to one that is on top is daunting. So even as we are
confronting players about their weaknesses we should also always try to build a
culture of success. That’s not something we can do overnight. We have to go one
step at a time, the same way we move the ball down the field yard by yard.
To win games, we need to believe as a team that we have the ability to
win games. That is confidence is born only of demonstrated ability. Even small
success can be extremely powerful in helping people believe in themselves. We
don’t focus on the ultimate goal we establish a clear set of goals are within
immediate reach we are going to be a smart team. We are going be a team that
plays hard; we’re going to be a team that has pride;’ we’re going to be a team

that wants to win collectively we’re going to be a team that doesn’t criticize
one another
When we set small, visible goals and people achieve them they start to
get it into their heads that they can succeed. They break the habit of losing
and begin to get into the habit of winning it’s extremely satisfying to see that
kind of shift take place in the way a team thinks about itself. So we have to
set small goals and hit them.
Picking the Right People: Companies today are having trouble hanging on
to their best people there a great deal of turnover and not much loyalty.
That kind of turnover adds a tough new wrinkle to turning a team

around and we have to focus on keeping it on the winning track. In particular,
we have to be extremely careful about the new people we bring on. We can
do serious damage with a few bad choices. It’s not always the one who has
the best reputation or even the most outstanding set of talents. It is usually the
one who understands what it will take to succeed and is committed to making
the effort.
Communicating shared vision: Shared vision is a much valued concept in

organizational performance and for success. It is aligning the company’s
vision with all the organizational activities. The absence of such shared vision
might have been one of the main reasons for teams’ failure or low
performance. Now, after making right people to assist leadership, the shared
vision should be communicated to all those involved in clear terms and in
inspirational tone. This will motivate and engage the employees. They will be
prepared to go extra mite for the success of the team
Creating new environment: The last and most important step in turning
around a team is creating new team environment - social and cultural
environment in which the employees can work differently. A new working
environment, allowing the workers and others to work freely, should also be
created and nourished. The leaders’ responsibility is to create new
environment, allow the workers to work freely and motivate and engage them
in the organizational effort.

13. MAKING RIGHT INVESTMENT IN THE TALENT
1. Introduction:
Companies face a variety of challenges in today’s economy: reducing

costs, pursuing growth organically and via mergers and acquisitions,
implementing new business models, and expanding geographically, among
others. But all the challenges have one thing on common: People are at the
heart of a successful response. People imagine change and they make it real.
However, companies don’t consider their people strategies in the proper
context. For instance, when companies seek to grow, their leaders must
decide where to invest resources. Senior leadership teams and HR executives
can maximize the effects of their decisions on people and performance by
first asking what to focus on and strengthen by determining the few
differentiating capabilities that provide their company with sustained
competitive advantage before deciding if and where to invest or cut. Such a
capabilities- driven approach can measurably improve the chances of
successfully meeting all kinds of strategic challenges, and of resolving the
people related issues that invariably accompany them.
2. Need For and Importance of Investment In Talent:
The investment in talent is necessary because;
-Companies’ approach to talent is a core component of its overall

strategy.
-Inventory in talent is necessary for sustained growth/
- It is capabilities –driven approach to people
strategy. -It is the right and best type of investment.
Importance of making investment in talent:

¾ Selecting right person doing the right job: Through right investment
in talent we can select right persons for doing the right job.
¾ Empowering and engaging the staff: The investment in talent
authenticates and helps the process of empowering and engaging the staff.
¾ Encouraging loyalty from the staff: One of the best ways to
encourage loyalty is to make right investment in talent.
¾ Closing the actual skills gap: By making right investment in talent
the management can close the ever increasing gap between the required and
the actual skills.
¾ Better choice of retaining the talented: It is always necessary to
retain the best talent, and this can best be done through investing in talent.
¾ Avoiding hiring mistakes: Even the very scientific methods of
recruitment may involve mistakes. But, this can be avoided through
investment in talent.
¾ Understanding the staff better: The right investment in talent gives
better scope to understand the staff..
¾ To make better professional development decisions: The right
investment in talent enables the management or leadership to make better
decisions.
¾ Employees feel valued: When right investment is made in talent the
employees feel very much valued leading to further positive consequences.
¾ Increase staff’s confidence: The right investment in talent will
certainly increase staff’s confidence on the management.
¾ Increase staff productivity: It is certain and needless to emphasize
that right investment in talent will increase the productivity of the staff.
¾ Improve the social image: Above all, right investment in talent will
improve the company’s social image in the eyes of stakeholders, public and
government.
3. Four Step process of right investment in talent:

Step I: Defining the capabilities system:
A company must first know what it needs to do succeed before it can identify
who should do it. When defining its identify in the marketplace, senior
leadership teams must ask themselves three core questions, how to create value
for customers, what capabilities do we need to deliver this value proposition
and what will we sell, and whom.
Step II: Identifying critical employee segments:
HR executives can begin to identifyemployee segments that support

differentiating capabilities. The goal is to align your people strategy with your
company’s capabilities system, so that the right people are in place to support
the capabilities across functions. Identifying critical employee segments
and their required contribution to the company’s differentiating capabilities
system enables the company to determine where to direct their investments in
people, as well as where to reduce them.
Step III: Creating segment-based employee value propositions:
A segment based employee value proposition needs to capture the essence of

the relationship between employer and employee, and articulates
the
expectations for each. A successful employee value proposition meets the
employer’s requirements while providing the competitive advantage needed
to attract and retain superior talent in the company’s most critical roles.
Step IV: Implement the people strategy:
Once employee value propositions are created, the company needs

to
determine and execute the practical steps needed to bring them to life and
deliver on their promise of attracting, developing, and retaining people in the
segments critical to the company’s success. This includes- the optimal way to
attract the best talent in our most critical segments, the requirement from HR to
deliver the tailored segment value propositions, and the method by values, and
the organization ensures that it is achieving the outcomes articulated by the
employee value propositions.

4. Conclusion:
Creating effective people strategies is a complex task that is often done

improperly, without clear connection to corporate strategy, causing sub-optimal
business performance and inefficient use of resources. These outcomes can be
avoided by aligning people and HR activities with the company’s way to play
and capabilities system. This process ensures not only that people segments are
exposed. Companies must ensure that the people in each critical segment know
exactly what is expected of them. And because each segment typically has its
own recruiting, development, and retention considerations, it will require a
tailored value proposition to attract, motivate, and retain people.
A firm commitment to critical employee segments across functions on
the part of the company and its senior leaders is extremely important, but we
must also acknowledge that strategic change is inevitable.

14. COMMUNICATING CLEARLY AND BROADLY
1. Introduction
Communicating is the process of creating, transmitting and

interpreting massages, ideas, facts, opinions and feelings. The vital function
of a leader is to communicate to his staff as to what they should do through
orders, meetings, circulars and notices. The employees also will report the
leader managers about their process in completely the tasks. They should also
convey their responses to the instructions policies and strategies issued by the
leadership. This simplifies that communications in always two way process in
feedback. Organizations are different methods of communications such as
meetings minutes notices, circulars letters, phones, fax, internet an so on to
keep informed both t insides such as creditors and the like. But there is
communications sap. Most of the leader fails to communicate clearly and
broadly. For an effective leadership communication is very much essential.
Message
Sender Receiver
Feedback
Things to Communicate
The leader has to communicate different things to different

people. At the same time different sections of people should also
communicate to the leader in the form of feedback. Communicating should
focus on the following aspects.
Organizational culture: A system of shared assumptions, values and beliefs

which giver how people behave in organizations.
Vision statement: An inspirational description of what an organization world

like to achieve or accomplish in the mid-term and long-term future.
Mission statement: A short statement of an organizations purpose identifying

the scope of its operations. What kind of product or serve it provider, its primary
customers or market and its geographical resign of operation.
Goals: A desired result or possible outcome than the organization emotions,

plans commit to achieve
Objectives: Specific results that the organization aims to achieve with in a
time frame and available resources.
Organizational ethics: The principles and standards by which businesses

operate. They are best demonstrated through acts of fairness, integrity
compassion honor and responsibility.
Strategies: The sum of the actions a company intends to take to achieve long
term goals. Together, these actions make up a company’s strategic plan.
Policies and procedures: Set of policies are principles, rules and guidelines
formulated or adopted by an organization to reach its long term goals and
typically published is a book or other from that is widely accessible.
Programmes: Organization’s schemes incentives, records and punishments,

welfare programmes, social amenities for the employees.
2 .Communicating clearly
Following are the 7 C’s of communication, which are applicable to

both written and oral communication.
Completeness: The communication must be complete. It should convey

all facts required by the audience. The sender of the message must take into
consideration the receiver’s mind set and convey the message accordingly.
Conciseness: Conciseness means lack of wordiness, i.e.

communicating what we want to convey in least possible words without
forgoing the other C of communication. Conciseness is a necessity for
effective communication.
Consideration: Consideration implies stepping into the shoes of

others. Effective communication must take the audience into consideration
i.e., the audiences’ viewpoints, background, mindset, education level etc.
Clarity: Clarity implies emphasizing on a specific message or goal at

a time, rather than trying to achieve too much at once. Clarity makes
understanding easier. Complete clarity of thoughts and ideas enhance the
meaning of message.

Concreteness: Concrete communication implies being particular and
clear rather than fuzzy and general. Concreteness strengthens the confidence.
Concrete message is supported with specific facts and figures and makes use
of words that are clear and that build the reputation and concrete messages are
not misinterpreted.
Courtesy: Courtesy in message implies the message should shows the

sender’s expressions as well as should respect the receiver. The sender of the
message should be sincerely polite, judicious, reflective and enthusiastic.
Courtesy implies taking into consideration both viewpoints as well as feelings
of the receiver of the message.
Correctness; Correctness in communication implies that there are no

grammatical errors in communication.Correct message have greater impact in
the audience / readers. It checks for the precision and accurateness of facts
and figures used in the message. It makes use of appropriate and correct
language in the message.
3. Communicating Broadly:
The word broadly means in a wide manner, liberally and is a free

sense. Hence, communicating broadly means communicating widely,
liberally and freely. That means communications should touch all aspects, all
perceptiveness, and all people and sections. Thus, communicating broadly
involves the following components.
Communicating all organizational aspects: An organization has vision,

mission, goals and objectives. In addition it has principles, policies programs
and perspective. All those aspects should be conveyed to the people
connected with the organization including the govt and public.
Communicating to all organizational elements: An organization consists of

inside and outside elements including employees, shareholders directors,
creditors other investors, customers, traders and other stake holders including
the Government and general public. All those persons should be
communicated about all the aspects.,
Communicating to all sections of employees: The employees ( a few or

many) groups (small or large ) and teams (company or permanent) form RCR
Institute of Management & Technology Page 57

different parts of organizational staff. All these units should be communicated
both individually and as entries. Each employee should get personal
communication, and also as team and group members.
Communicating to all types of audiences : The leader will have

different types of audience-High tech audience, Low tech audience, Lay
audience and sometimes mixed audiences depending upon the team of
communicating and type of communication. All those audiences should be
addressed differently so that communication will be effective.
Communicating to all places: The communication should reach all places

connected with the organization, head office, branch offices, work places,
market places distributions channels and all those places like exhibitions,
advertising centers, show rooms connected with the organizational activities
Using all methods: Communicating broadly also involves using all the
methods of communicating formal and informal, including grapevine written
and oral verbal and nonverbal, personal and impersonal, individual and group.
Listening: Communication is meaningful and effective only when the leader

listens to views of others. The leaders should developed listening skills to
consider and respect others’ views.
Getting and incorporating feedback: Communicating process is complete

only with the arrival and the incorporation of the feedback. Communicating
broadly involves getting feedback from all the corners and incorporating them
in the organizational process.
4. Conclusion
In the words of O Toole, a learning organization fame, the leaders

need to communicate the vision and its statement in an inspirational and
engaging way, talking with enthusiasm be up beat, have a vivid eye contact
and relax facial muscles. The leader should engage others with discussions
ask questions and welcome feedback. The communication should be done
both in subtle and dramatic way. The task of leadership is to communicate,
leading and repeated the vision all with the intent of helping even persons
involved to understand what are the needs to be done.

15. TEAM MOTIVATION AND TEAM ENGAGEMENT
1. Introduction
Motivation and Engagement are the two important processes, most

crucial is an organization. They lift the employees from lower levels of
performance to higher levels of achievement. Keeping employees motivated
and engaged is the key to every organization’s success. Otherwise, even the
hardworking and motivated employee of to day will turn the following day as
someone who is despondent and less than enthusiastic about their work.
Normally, number of factors such as personal issues, interactions with
colleagues, personal and work related worries or concerns or feelings
undervalued may cause the employees to put them down and become
unmotivated and unenthusiastic. That is why, the leaders/ managers must
always try to motivate and engage the team members to make the
organization successful.
2. Team Motivation
Motivation is the process of inducing persons or team members to experience

needs for the certain desired behavior so that enterprise efficiency is
achieved. Motivation involves identifying the desired behavior of the
employees, explaining the needs of this behavior to the employees and
providing environment to achieve this desires behavior. Team motivation is
the process of encouraging the team members to work to achieve the team
tasks efficiently, so that goals of the team are accomplished. The basic job
factors that keep employees motivated are:
Motivational needs- (David McClelland): Achievement, Authority or power,

and Affiliation.
Motivation and Hygiene factors: (Frederick Herzberg) Motivators are the
things that cause to feel motivated, hygiene factors do not motivate or
demotivate; they are just there.
Types of needs: (Maslow’s hierarchy of needs): Physical, safety, social, self
esteem and self actualization: People would move between levels in the
hierarchy depending up on their own needs and motivation. Understanding
employees’ motivations enables the leader to build up a picture of how each
individual likes to be managed.
Methods of Motivation:
Paying people what they are worth: When we set our employees
salaries, we should be sure that their pay is consistent with what other
companies in our industry and geographic area are paying.
Providing a pleasant place to work: Every one wants to work in an
office environment which is clean and stimulating, and which makes him
feel good instead of bad.
Offering opportunities for self-development: Provide the team with the
training they need to advance in their careers and to become
knowledgeable about the latest technologies and industry news.
Fostering collaboration for self-development: Encourage the members
of the team to fully participate by inviting their input and suggestions on
how to do things better. Ask questions, listen to their answers, and,
whenever possible, implement their solutions.
Encouraging happiness: Happy employees are enthusiastic and positive
members of the team, and their attitude is infectious. Keep an eye on
whether or not our people are happy with their work.
Not punishing failure: The key is to learn valuable lessons from those
mistakes so we don’t make them again. When members of our team make
honest mistakes, we don’t punish them – instead, encourage them to try
again.
Setting clear goals: As a leader, it’s our job to work with the members of
our team to set clear goals. And once we do that, we can make sure
everyone knows exactly what those goals are, what their relative priority
is, and what the team’s role is in reaching them.
No micromanagement: No one likes a boss who is constantly looking over
her shoulder and second-guessing her every decision. Provide our people with
clear goals and then let them figure out the best way to achieve them.
Avoiding useless meetings: Meetings can be an incredible waste of time.
Create an agenda for meetings and distribute it in advance. Invite only the
people who really need to attend, start the meeting on time, and then end it
as quickly as we possibly can.
Evaluating and Rewarding: Instead of waiting until the end results, there
should be periodical evaluation of employees’ performance. There should
be rewards for good performance.
2.Team Engagement
Team engagement is the process of developing or inculcating the spirit of

commitment and willingness to help out beyond their normal job which leads
to better team performance. It makes them eager and enthusiastic always to
design work and contribute to company’s goals and vision. Generally
employees will do their best work or do the extra mile. They want interesting
work that they find absorbing and enjoyable. When these factors combine we
have win-win solution that meets the needs of business and the employees
needs at the same time. This is called employee engagement. Both sides have
everything to gain by it and will work hard to maintain it.
Steps for Team Engagement:
Step 1: Clearly define our vision. Make sure that our vision is provided as a
roadmap for our employees, and that they know each twist and turn.
Step 2: Communicate well and often. Training sessions, memos,

newspapers, FAQs and regular meetings can all be used to present our vision
to our employees. Make sure to ask questions, and if they are confused,
redesign the way the information reaches them.
Step 3: Give employees what they want and need. Don’t just assume that
each and every one of our employees has all the tool, training, and support
from supervisors they need check in with them personally and find out.
Step 4: Get everyone engaged. Figure out a way to get all of our employees
engaged in planning and decision-making. That way the project becomes their
baby: something they’re willing to fight for.
Step 5: Coach for success, and practice random acts of kindness. Positive
feedback should be given away, to encourage more of the same performance.
Negative feedback should also be given away so that workers have the
opportunity to self- correct.
Step 6: Practice Random Acts of Kindness. We should not forget to say

“Thank you!” for a job well done. It’s a powerful motivator, and should be
done often in person if possible. Publicly acknowledging our employees
contributions is even better.
Step 7: Act fairly, respect, and create trust(don’t be jerk). We should use
our judgment, wisdom, and experience to create supportive environment.
When problems arise, examine the circumstances, understand the context, and
only then pass judgment. Respect and trust our team and we will get the same
in return.
Step 8: Trust and verify, but also try to make fun. Good bosses pay
attention to the big picture and the details, and care about both the product
and the employees. A good way to show that is be involved in the creation
process, and to pay attention to what is going on.
Step 9: Give special attention to high-potential employees. “Even in a tough

economy, high-potential employees gave other opportunities. Employees who are
anxious about their future can negatively affect a company. To keep them
engaged, consider putting more resources into career development and training.
Step 10: Be creative to avoid downsizing. An employer who treats its

employees as true partners makes every effort to avoid layoffs. The key is for
employees to trust that management is doing everything possible to retain
them. Voluntary steps to reduce costs, which Klein calls “rings of defense”
can be employed to avert disaster.
Step 11: Implement incentive programs. No matter of what kind of

business we are in, we should look into incentive programs. They have been
shown to be highly beneficial in motivating and engaging employees.
Step 12: Rewards as Per Results. Team engagement will have extraordinary
and high performance effects. There should be recognized often and rewarded.
2. Conclusion :
Team motivation and engagement are crucial for an organization,
particularly for a learning organization to be successful. Motivation is next to
satisfaction, and engagement is more than motivation. The organizations,
apart from providing hygiene factors, should motivate the employee by
identifying their needs and providing environment and incentives that can
help employees reach their desired behavior to satisfy the needs. Motivation
is not enough, employee engagement is also necessary.

UNIT IV
16. LEADING CHANGE EFFECTIVELY AND MORALLY
1. Introduction :
The simplest definition of leadership says Peter Senge, of learning

organization fame “is the ability to produce change”. There is a big emphasis
now on leadership, not just conventional management skills. One reason is a
growing recognition that in times of change, when systems are unstable and
future are uncertain, it is leaders we need, not managers. Ultimately, it boils
down to the fact that leadership itself about leading people through change.
Leading change effectively and morally is the significant obligation and task of a
leader. Peter Senge rightly said that “The simplest definition of leadership is the
ability to produce change”. And the essence of effective leadership is
leading change effectively and morally.
2.Duties of Effective Leader in the Context of Change:
 Identify when change is needed and constantly build their own and
other’s capacity to learn, adapt and transform.

 Translate change initiatives into working visions and strategies staff
find comprehensible and wait to sign onto

 Design down-to-earth workplace change and improvement strategies
people can work with

 Communicate clearly about change in ways people can understand

 Reduce uncertainty and convert anxiety, denial and resistance into
constructive change energy

 Build momentum, create commitment, get people into action mode
then facilitate them through change

Many managers overlook the need to develop ‘change
capabilities’ in themselves or in others. What organization frequently
fail to see is that the skills to build change leadership capability are
very different to those needed to manage a business in normal
operational mode. Everyday management skills, as sound as they may
be, just don’t convert that easily into effective change leadership
capabilities. New skills are needed but not many see this.
2. Key Areas To Lead Change Effectively And Morally:
 Learning to Lead Change: Put simply leadership is frequently about

leading people through change. Leaders are key drivers of change and
leadership learning should focus firmly on the critical role leaders play
in preparing, and leading people through change in order to create
change leaders- those with the capability to communicate clearly about
change in ways people can understand, shape a vision they can sign
onto, build momentum, create commitment, get people into action and
then facilitate them through it.

 Facilitating Change: This is a role for the both change leaders and
teams. It involves being capable of leading team activities, adopting a
facilitation role to lead change teams and shifting from mental
models of ‘managing’, ‘organizing’ or ‘controlling’ to being
facilitators and direction-setters.

 Leveraging Culture: Very little changes unless the culture it’s
happening in gets addressed – the habits, assumptions and shared
mental models carried by yourself and others. This involves sensing
the current culture; assessing how supportive or not this is for change
outcomes we envisage and learning to leverage and work with the
culture to get these change results.

 Promoting Change Participation: Promote involvement in and
responsibility for managing change processes. If we involve others in
jointly determining what and how to change, it is more likely to be
successful than imposed change. This involves working out ways to
involve people – participation both inside the change team or target
group and with stakeholders outside it.

 Building Change Capacity: The capacities we need to build in order
to change successfully include individual skills, tools and disciplines
us and our change team needs to develop change enabling capacity
and the resources needed to support change – tangible and ‘in’. It
also involves building longer term change capability by embedding
good practices in the work/learning habits of people impacted by
changes.

 Systems Redesign: When things change, old work systems,
processes and procedures need to change too. One reason change
fails is lack of know—how or refusal to change old work patterns,
systems, structures and mental models that get in the way, of re-
organizing work processes and procedures to meet ever-changing
improvement challenges. All change leaders need to learn how to be
systems re designers.

 Change Leaders need Tools: Without tools, guiding ideas remain
un-actioned. Leaders need new tools and process to make a positive
contribution to these more flexible and fluid of learning if they are to
use learning to change and respond more quickly to successive
change challenges. Our leadership-learning emphasizes being
transparent about the tools we use and injecting specific learning
tools into the change coaching/action learning process for people to
try out and experiment with.

 Monitoring Change: This involves developing ways to tell whether
real change and improvement has taken place, identifying indicators
and processes to evaluate whether our change actions and processes
have made a real difference and get back on-track if changes aren’t
working.


3. Steps To Lead Change:
Organization often does not take the holistic approach required to see
the change through and hence fails. However, by following the 8-step process
outlined by Dr. Kotter,
Step 1: Creating a Sense of Urgency: The leader should help others feel a
gut-level determination to move and win now. In their rush to make a plan
and take action, most companies ignore this step. Leaders who understand the
importance of sense of urgency are good at taking the pulse of their company
and determining whether the state of the organization is.
Step 2: Creating the Guiding Coalition: This means putting together a group
with enough power to lead the change. Putting together the right coalition of
people to lead a change initiative is critical to its success. That coalition must
have the right composition a significant level of trust, and a shared objective.
Step 3: Developing a Change Vision: This involves clarifying how the
future will be different from the past. A clear vision serves three important
purposes. First, it simplifies hundreds or thousands of more detailed
decisions. Second, it motivates people to take action in the right direction
even if the first steps are painful. Third, it helps to coordinate the actions of
different people in a remarkably fast and efficient way.
Step 4: Communicate the Vision: Executives will use every effective
communication channel possible to broadcast the vision. They turn boring
and unread company newsletters into lively articles about the vision. In
communicating the vision for the transformation, there are some things to
keep in mind. The vision should be simple, vivid, repeatable, and invitational.
Step 5: Empowering Broad-Based Action: Management information

systems can also have a big impact on the successful implementation of a
change vision. Up-to-date competitive information and market analysis, and
the ability to communicate powerfully and effectively throughout the
company in a cost effective way can speed up feedback loops and provide
information necessary for people to do their jobs more efficiently.
Step 6: Generating Short-term Wins: This means creating visible,

unambiguous success as soon as possible. To ensure success, short term wins
must be both visible and unambiguous. The win must also be clearly related
to the change effort. Such wins provide evidence that the sacrifices that
people are making are paying off.
Step 7: Not letting Up: This means consolidating gains and producing more
change. Leadership is invaluable in surviving. Instead of declaring victory
and moving on, the transformational leaders will launch more and more
projects to drive the change deeper into the organization. They will also take
the time to ensure that all the new practices are firmly grounded in the
organization’s culture.
Step 8: Making it Stick To: This means anchoring new approaches in the
cultures for sustained change. New practices must grow deep roots in order to
remain firmly planted in the culture. Culture is composed of norms of
behavior and shared values.

17. CORPORATE RUSHMOREANS
1. Introduction
Rushmoreans are the leaders with integrity, trust listening skills and
respect the leadership values never were comprised despite the leaders had
different situations, themes and challenges to deal with. This type of
leadership is most relevant today, when most of the companies collapsed due
to changing political and economic changes, despite the companies had
powerful values and ethics codes. A few good companies like Enron, World.
Com, and Satyam collapsed due corporate greed and the temptation for short
term gains. The leaders, somehow, got into the traps of losing their companies
corporate soul. They have violated the fundamental values and ethics and
brought about grief in their own and in the lives of their people. The 21 st
century environment is going to pose a myriad of challenges and
complexities. It is these leaders, the Rushmoreans, focused on long term goal
and fundamental corporate values, are important.
James O’ Toole in this book “Leading Change” talks about two types of
leadership groups- the Rushmoreans and the Realists. The former, in memory of
the US Presidents whose faces are carved on Mt. Rushmore, each represents a
major theme and role in shaping of the American history. Although faced with
different challenges and employing different styles, they all never compromised
on values such as integrity trust listening skills and respect for followers. The
four Presidents had different themes and challenges to deal with in their
respective times. George Washington(founding), Theodore Roosevelt (Political
philosophy), Thomas Jefferson (expansion), Abraham Lincoln (preservation of
the union). Their approaches may have been different. But what was common to
them to them was that they all believed in values. Their main values were
integrity, trust and respect for followers.
Realists on the other hand are the ‘here and now’ leaders who focus on
immediate gains. For example Jack Welch was perhaps a realist and also an
iconic leader. He turned around a loss making General Motors to a highly
profitable company. But the criticism for this type of leadership is that it may
lack long term sustainability. Because,here the end justifies the means. This is
course debatable as on several occasions quick results are needed to survive.
Corporate Rushmoreans – Meaning
O’ Toole distinguished between two types of leadership groups-The

Rushmoreans and the Realists. O’ Toole named Rushmoreans leadership
approach after the Presidents of the USA whose faces were carved on Mt
Rushmore, a batholith in the Black Hills in Keystone, Permington County, South
Dakota, US - the faces of George Washington, Thomas Jefferson. Theodore
Roosevelt, and Abraham Lincoln. Although faced with different challenges and
employing different styles, they all had certain values and they never
compromised or lost light of much as integrity, trust and respect for followers.
They exemplified value based leadership; value based leadership requires
integrity, which is two pronged; truth telling, honesty and moral behavior. O’
Toole described integrity as a wholesome or completeness that is achieved by
people who are said to have healthy self-confidence and esteem. People with
integrity know who they are, which allows them to esteem and respect others.
Value based leadership enables others to lead by showing information by
fostering a sense of community and by creating a constant system of rewards,
structure, process and communication. O’ Toole affirmed that the core of
integrity is that we don’t have to become someone else or become like someone
else to be a leader. We have to just become ourselves.
Rushmoreans are different from the Realists. The basic philosophy of

realists is that we have to do whatever it takes to get the job done. This
leadership approach is characterized by taking firm and bold action, being
strong, aggressive, decisive, enacting pragmatic exercises to reach a goal.
Realists get followers to do what the leader has outlined. Realists are the
leaders who feel that they need to take charge. They eschew working in
groups and employee participation. If the job is going to get done, they need
to take charge and get people to follow orders. These leaders are generally
more successful in short term situations but over the long term they don’t get
the very bests of the followers.
2. Rushmoreans and Other Leadership Styles
Rushmorean leaders can be compared to a few other types of

leadership styles. O’ Toole identified Rushmoreans with other types of
leadership styles such as participative and feminine leadership.
Rushmoreans and Participate Style
Toole’s definition of participate leadership is more aligned with the

Rushmoreans style- decision will not be arbitrary secret or closed to
questioning. While it is more open kind of process, a participative leadership
is sometimes confused with being in democracy. Participative leadership
means making the best decisions after getting the input of all those who are
affected by the decision.
Rushmoreans and Feminine leadership
O’Toole also associates the feminine style of leadership with the

Rushmeans and the masculine leadership style more with the Realists. A leader is
one who takes the followers where they want to go, while a feminine leader takes
followers where they ought to go. The female leaders understand the real needs
and potentialities of the organizational workers and followers and motivate them
to create the desired goals. The male leaders try to motivate the followers as per
the goals fixed by them, not focusing on their genuine needs or potentialities. .
The Rushmoreans also do what the female leaders do to their followers through
the leadership values like integrity, commitment and respect.
3 .Main Values of Rushmoreans
The Rushmoreans follow some core values that are more essential for
an effective leader. They are integrity, trust, listening skills and respect for
others. The Rushmorean leaders like the four American Presidents, never
compromise on these values whatever may the circumstances, consequences
and challenges.
Integrity: In ethics integrity means steadfast adherence to strict moral or

ethical code. It also refers to a state of being wholesome, complete and pure.
Those who have integrity will be unimpaired by any situations or challenges
in adhering to the values. Like the American Presidents the corporate
Rushmoreans will show integrity in business and enterprise.
Trust: The Corporate Rushmoreans like the four American Presidents enjoy
trust. Trust means confidence in or reliance on some person or quality. The
followers depend upon these persons and have hope on the in their future

endeavours. Of course, this trust is gained through many other values like
integrity, fairness, listening and respecting others.
Listening skills: In the context of leadership, listening refers to an action that

is performed with caution and attention to the views and perceptions of
others. The Rushmorean leaders have the knowledge and comprehensiveness
about how to take and consider the views, perspectives and perceptions of the
followers and other stakeholders. They can discern into the minds and hearts
of other people; they also consider them
Respecting others: Respect is an attitude of consideration and high regard.

Respecting others, their values and views their needs and perspectives also
involves having high regard to them, so high that they are taken into account
while taking decisions. The Rushmoreans are basically human oriented. Their
fundamental attitude is to respect others.
4. Conclusion:
In addition to these four values, the Rushmoreans stick to other values

like commitment, fairness, justice, honesty, and courage. All these values are the
outcomes of the core values, the Rrushmoreans follow. In fact, it is very difficult
to follow and adhere to four fundamental values in all cases, circumstances and
times. Yet, the Rushmoreans did this; they never compromised on these values
though they faced different challenges- George Washington with nation building,
Theodore Roosevelt with great political and economic challenges like Great
Depression, Thomas Jefferson with expansion, and Abraham Lincoln with civil
war. The Corporate Rushmoreans also will not leave these values in their effort
to withstand any type of challenges..

18. TOUGH LEADERSHIP
1.Introduction:
Leadership is lifting a person’s vision to high sights, the raising of a

person’s performance to a higher standard, the building of a personality
beyond its normal limitations (Peter F Drucker). Tough leadership is greater
than this. The tough leaders have to walk a tight rope. They have to balance a
demanding and obtaining real results with inspiring and leading their staff
impeccably. The tough leaders do this differently. Today we have a world
fussed on cooperation, on consensus and collaboration, and teamwork. They
have their place among management techniques, but not informing leadership
style. A leader who cannot deal with adversity and difficulty while keeping
their cool and delivering solutions will quickly be disrupted by the team. And
even worse, a leader who does not know where he stands will find him alone.
There is no place for wimps in leadership world. There is place for only tough
leaders. A cowardly leader is the most dangerous of men. Now days, leaders
are faced with growing number of uncertainties in a very difficult economic
climate. They have to come to terms with decreased consumer confidence,
political decisions, not to mention technology which is changing at a dizzying
speed. It is only tough leaders who have negotiating skills, which play a vital
role in decision making process. They also can navigate in uncertain
environments with confidence. Above all they are not afraid of making
difficult decisions in a very precarious environment.
2.Definition of Tough Leader:
¾ Tough leader is a leader who has the wherewithal to stand up for what
he or /she believes in, as well as stand others to achieve team and
organizational goals. More important, toughness matters when things
are not going well, when the economy is sinking, the market is shaking,
and brand new competitors appearing on the horizon.
¾ Being a tough leader means making hard decisions, coping with

adversity, demanding top performance from employees and being a
competitive force in the market place.

¾ Tough leadership is being thick skinned and rescilient, “tough” in other
words.
.Basic Traits of a Tough Leader.
They defuse tension- The tough leaders can perform under pressure;
for too much pressure can bring disaster. The tough leaders can maintain the
sense of urgency and momentum but also give people some breathing room.
They set off the floor- Failures are common, there is no shame in
getting knocked down. But, tough leaders can get back into the game
and keep slogging. They have resilience an ability to flex with
adversity as well as to persevere when the going gets tough.
They let of the steam- Tough leaders focus on the mistakes, not on the
persons who make mistakes. The leader will show their irritation on the
action, not on the person and give opportunity for the correction.
They have humility- Tough leaders can admit mistakes and have the
right kind of inner toughness. Owning up failure is not a weaknes, it is
a measure of strength.
3.Characteristics of Tough Leaders:
They set a great example: Tough leaders see themselves incredibly

high standards. They have clear objectives, work hard and are punctual
and polite. They rightly demand the same standards from their teams,
as they lead by example.
They can cope with setbacks: When the company loses a contract or
has lost the competitive edge against a rival, the tough leaders will be
able to re-align the objectives by skillful negotiation. In doing so, they
will also be capable of learning lessons from the failure without
demoralizing staff.
They know when to say no: Leaders have to say no to demands by

staff and senior management. They may be problems with financial
targets, marketing strategy or reduction in costs. But in saying no, they
will be able to come up with solutions.
They give constructive feedback: Tough leaders will avoid
confrontation and emotion. These are damaging when giving feedback.
Instead, they will concentrate on praising employees for good things
first.
They help their staff develop: The tough leaders will have the job
descriptions in place so they can be used as a guideline for staff
training. They can help to identify strength and weaknesses. They are
really useful in highlighting gaps in skills and competencies.
They show gratitude for work well done: Everyone, including the
tough leader, craves praise, appreciation and thanks. This is essential
because they build a team spirit, increase motivation, create a better
work environment, help to create a learning culture, increase morale
Employees perform better and feel more secure, when praised and
appreciated.
They never bully their staff: Tough leaders know that their staff is the
best asset the company has, when managed well. The tyrannical
approach belongs to another century. Studies show that staffs respond
better when they are appreciate, when they are not insulted or belittled.
They never play the blame game: “A good leader is a person who
takes a little more than his share of the blame and a little less than his
share of the credit.” –John Maxwell. Passing the blame to an employee
who was marginally involved is the mark of a weak and ineffectual
leader.
They talk openly about expectations: The tough leaders know that
the expectations have to be kept to the forefront and should be
mentioned a normal conversations, almost on a daily basis. In this way,
they can provide motivation, inspiration and a little fear, too.
They are not afraid to make difficult decisions: Tough leaders are
faced with a growing number of uncertainties in a very difficult
economic climate. They have to come to terms with decreased
consumer confidence, political decisions, not to mention technology
which is changing at a dizzying speed.
4. Ways to Become a Tough Leader:
A leader can become a tough leader by following a few
important methods.
Setting High Standards: When we set high standards for ourselves,
our employees will know from the start what we expect of them. So,
we should develop detailed job descriptions, help employees set
ambitious goals and objectives, conduct constructive performance
evaluate and continually encourage our employees to strive for greater
achievements. Reward significant contributions and set so parameters
for performance improvement for underperforming employees.
Being Competitive: Going after our demographic in an aggressive but
ethical way. Use guerrilla marketing tactics, provide better pricing
structure and customer service options than our competitions and
cultivate a loyal customer base. Monitor market conditions to stay
ahead our competition in a dynamic economic environment. Become
known as an expert in our industry by joining industry associate and
business organizations, and develop a reputation for being a results-
oriented, good-focused business leader.
Not Accepting Excuses: Set firm deadlines, develop comprehensive
business strategies and let our employees know we have zero tolerance
for tardy, shoddy work product, poor customer service or internal
workplace conflict. Resolve disputes as they arise, encourage
employees work out minor differences among themselves and
recognize and reward loyalty and teamwork.
Being A Shrewd Negotiator: Always negotiate vendor and supplier
contracts and never stop shopping around for the best deals. Establish
fair pricing strategy and exceptional services, but don’t allow ourselves
to be undercut by clients or customers. Stand firmly behind our
business and quality of our products and services, but don’t allow
ourselves to be taken advantage of.
Keeping the company Professional: In a small-business environment

,employees and colleagues often have close relationships. This can make it
challenging to take tough business decisions when it comes to laying-off
members of our staff or cutting back hours. Maintain a friendly professional
relationship with employees and don’t allow our personal feelings to
negatively impact what’s in the best interest our business.

19. DEMOCRATIC LEADERSHIP
1. Introduction:
The democratic leader is charged with deciding who is in the

group and who gets to contribute to the decisions that are made. The
democratic leadership style is one of the most effective and leads to
higher productivity, better contributions from group members, and
increased group morale. Some of the primary characteristics of
democratic leadership include - group members are encouraged to
share ideas and opinions, even through leader retains the final say
over decisions, members of the group feel more engaged in the
process, and creativity is encouraged and rewarded.
Good democratic leaders possess specific traits that include

honesty, intelligence, courage, creativity, competence, and fairness.
Strong democratic leaders inspire trust among followers. They are
sincere and base their decisions on their morals and values. Followers
tend to feel inspired to take action and contribute to the group.
Democratic leaders also tend to seek diverse opinions and do not try
to silence dissenting voices or those that offer a less popular point of
view. Because the group members are encouraged to share their
thoughts, democratic leadership can lead to better ideas and more
creative solutions to problems. Group members also feel more
involved and committed to projects, making them more likely to care
about the end results.
2. Definitions and Characteristics:

-Democratic leadership, also known as participative leadership, is a
type of leadership style in which members of the group take a more
participative role in the decision making process.
-The democratic leadership style means facilitating the conversation,
encouraging people to share their ideas and then synthesizing all the
available information into the best possible decision.

-The democratic leadership style is a very open and collegial style of
running a team. Ideas move freely among the group and are discussed
openly. Everyone is given a neat at the table, and discussion is
relatively free flowing.
-Democratic leadership as an organization involves the redistribution

of power and authority between employees and managers to provide
employee involvement in decision making.
-Democratic leadership attempts to manage with democratic principles,

such as self-determination, inclusiveness, equal participation and
deliberation. The following three features characterize democratic
leadership.
-The democratic leadership style is essentially a mode of leadership

that is fond in participative management and human resource theory.
The distinction of democratic leadership from an organizational stand
point involves redistribution of authority of power between managers
and employees to provide employee involvement in the process of
decision making.
Basic Characteristics of Democratic Leadership

Democratic principles are used to manage the democratic
leadership approach. These principles include deliberation,
inclusiveness, equal participation and self-determination. The
democratic leadership style is characterized by the three features
outlined below.
Delegation of Responsibility: A democratic leader will delegate
responsibility among members of his or her team to facilitate member
participation in making decisions.
Empowerment of Group Members:It is incumbent on leaders to
empower their team members in order that the members will be
properly equipped to accomplish their tasks. Including in the process
of empowerment is the provision of the education and training required
for the completion of delegated tasks.
Aiding the Process of Group Decision Making:A significant role
played by the democratic leader is ensuring that democratic
deliberation takes place when group decisions are being made. This
indicates that the leader is supposed to serve as a mediator and
facilitator between members of the group, make sure that the members
are psychologically well and there is a respectful environment at all
times.
3. Advantages and Disadvantages:
Advantages
Solutions for the Complex Problems:Democratic leaders are typically

excellent at solving complex issues. They have the ability to work
collaboratively, using a consensus of opinions to get things done the right
way.
Good Business Fit: Solutions that are democratically derived generally

last for the longest period time. The democratic process ensures that the
solution is reviewed on a continuous basis. Additionally, engaging team
members will enable leaders to maintain effective processes that fit the
business well.
Strong Teams are built by Democratic Leaders:Team members under

democratic leadership tend to be supportive and strong. Honesty flourishes
and more collective working is done because the opinions of everyone are
taken into consideration. Democratic leaders are usually popular within
the organization.
Foster Creative Environments:Democratic leaders effectively foster

creative environments since they encourage the input and innovation of
tem members. Creative designers succeed under democratic leadership
because of the support and nurture that is embodied in this leadership
approach.

Disadvantages of Democratic Leadership:
Can Appear Uncertain:Democratic leadership can sometimes come

across as being indecisive. In certain situations, especially during a crisis,
leaders must be very directive and democratic leaders do not function well
in an authoritarian role. In the midst of a crisis, no time is usually available
to address everyone concerned.
Time Consuming: The consultation process could result in

procrastination. If an organization has a project or issue that is urgent,
democratic leaders cannot usually work to the timescales required. It takes
times to talk to a number of individuals and collect a variety of opinions
and many democratic leaders find it difficult to cut corners.
Become Apologetic:Democratic leaders sometimes build an environment

in which individuals expect for their idea to be implemented. Where there
are a variety of solutions in a particular project, only one can be
implemented and democratic leaders will have to invest time in
apologizing and smoothing things over with individuals whose ideas were
not used.
4.Conclusion:
When situation change frequently, democratic leadership offers a great

deal of flexibility to adopt better ways of doing things. Unfortunately, it is
also somewhat slow to make a decision in this structure. So while it may
embrace newer and better methods; it might not do so very quickly.
Democratic leadership style can bring the best out of an experienced and
professional team. It capitalizes on their skills and talents by letting them
share their views, rather than simply expecting them to confirm. If a
decision is very complex and broad, it is important to have the different
areas of expertise represented and contributing input – this is where
democratic leader shines.

20. TRANSFORAMATIONAL LEADERSHIP
1. Introduction:
Transformational leadership style is one of the most important leadership

styles particularly in the present times of rapid changes and growing
complexities. The transformational leadership inspires people to achieve
unexpected results or remarkable outcome. It gives workers autonomy over
specific, as well as the authority to make decisions once they have been
trained.
2. Meaning and Definition:
The concept of transformational leadership was initially introduced by

James V.Downton, the first to coin the term “Transformational leadership”.
The concept was further developed by leadership expert and presidential
biographer James MacGregor Burns. Later, researcher Bernard M. Bass
expanded upon Burns original ideas to develop what is today referred to as
Bass Transformational Leadership Theory. Bernard M. Bass extended the
work of Burns by explaining the psychological mechanisms that underlie
transforming and transactional leadership. Bass introduced the term
“transformational” in place of “transforming.” Bass added to the initial
concepts of Burns to help explain how explain how transformational
leadership could be measured, as well as how it impacts followers’
motivation and performance.
-Transformational leadership is a style of leadership where a leader works

with subordinates to identify needed change, creating a vision to guide the
change through inspiration, and executing the change in tandem with
committed members of a group.
-Transformational leaders are sometimes call quiet leaders. They are the
ones that lead by example. Their style tends to use rapport, inspiration, or
empathy to engage followers. They are known to possess courage,
confidence, and the willingness to make sacrifices for the greater good. They
possess a single-minded need to streamline or change things that no longer
work. - Leadership expert James McGregor Burns introduced the concept of
transformational leadership in his book, “Leadership.” He defined
transformational leadership as a process where “leaders and their followers
raise one another to higher levels of morality and motivation.”
-According to Burns, transformational leadership can be seen when

“leaders and followers make each other advance to a higher level of morality
and motivation”. Through the strength of their vision and personality,
transformational leaders are able to inspire followers to change expectations,
perceptions, and motivations to work towards common goals.
-According to Bass, transformational leadership can be defined based on

the impact that it has on followers. Transformational leaders, Bass suggested,
garner trust, respect, and admiration from their followers.
Transformational leaders are described to hold positive expectations for

followers, believing that they can do their best. As a result, they inspire,
empower, and stimulate followers to exceed normal levels of performance.
Transformational leaders also focus on and care about followers and their
personal needs and development.
Transformational leader is a model of integrity and fairness, sets clear

goals, has high expectations, encourages others, provides support and
recognition, stirs the emotions of people, gets people to look beyond their
self-interest, and inspires people to reach for the improbable.
Transformational leadership inspires people to achieve unexpected or
remarkable results. It gives workers autonomy over specific jobs, as well the
authority to make decisions once they have been trained.
3.Characteristics of Transformational Leaders
Five major personality traits have been identified as factors contributing to

the likelihood of an individual displaying the characteristics of a transformational
leader. Different emphasis on different elements of these traits point to
inclination in personality to inspirational leadership, transactional leadership, and
transformational leadership. These five traits are as follows
Extroversion: The two main characteristics of extroverts are affiliation and

agency, which relate to the social and leadership aspects of their personality,
respectively. Extraversion is generally seen as an inspirational trait usually
exhibited in transformational leadership.
Neuroticism: Neuroticism generally gives an individual an anxiety related to
productivity which, in a group, setting can be debilitating to a degree where
they are unlikely to position themselves in a role of transformational
leadership due to lower self- esteem and a tendency to shirk from leadership
responsibilities
Openness to experience: Creative expression and emotional responsiveness

have been linked to a general tendency of openness to experience. This trait is
also seen as a component of transformational leadership as it relates to the
ability to give big-picture visionary leadership for an organization.
Agreeableness: Although not a trait which specifically points to

transformational leadership, leaders in general possess an agreeable nature
stemming from a natural concern for others and high levels of individual
consideration. Charisma and idealized influence is a classic ability of
individuals who possess agreeability.
Conscientiousness: Strong sense of direction and the ability to put large

amounts of productive work into the by-product of conscientious leaders.
This trait is more linked to a transactional form of leadership given the
management-based abilities of such individuals and the detail oriented nature
of their personality..
4.Components of transformational leadership and aspects:
Inspirational Motivation: The foundation of transformational leadership is

the promotion of consistent vision, mission, and a set of values to the
members. Their vision is so compelling that they know what they want from
every interaction. Transformational leaders guide followers by providing
them with a sense of meaning and challenge. They work enthusiastically and
optimistically to foster the spirit of teamwork and commitment.
Intellectual Stimulation: Such leaders encourage their followers to be

innovative and creative. They encourage new ideas from their followers and
never criticize them publicly for the mistakes committed by them. The leaders
focus on the “what” in problems and do not focus on the blaming part of it.
They have no hesitation in discarding an old practice set by them if it is found
ineffective.
Idealized Influence: They believe in the philosophy that a leader can
influence followers only when he practices what he preaches. The leaders act
as role models that followers seek to emulate. Such leaders always win the
trust and respect of their followers through their action. They typically place
their followers need over their own, sacrifice their personal gains for them, ad
demonstrate high standards of ethical conduct. The use of power by such
leaders is aimed at influencing them to strive for the common goals of the
organization.
Individualized Consideration: Leaders act as mentors to their followers and

reward them for creativity and innovation. The followers are treated
differently according to their talents and knowledge. They are empowered to
make decisions and are always provided with the needed support to
implement their decisions
Inspirational Intellectual
Motivation Stimulation
Transformational
Leadership
Idealized Individualized
Influence consideration

UNIT V
21.BUILDING A HOLISTIC RELATIONSHIP WITH SUPPLIERS
1.Introduction
Building a holistic relationship with the suppliers implies

establishing healthy and purposeful relationship with the supplies by taking
them as an integral part of the organization rather than viewing them as
separate entity different from the production. The supplies are business
partners who provide the organizational system with materials, including
ingredients, packing and machinery, as well as goods and services. A holistic
approach is an offshoot of holism, a theory or belief that the whole is greater
than the sum of the parts. In this sense, the supplies are not treated as a
separate part of the organization with designated function of supplying
ingredients; rather, the suppliers are also considered as an integral element in
the whole organizational system. And, the suppliers are not only suppliers of
physical inputs, but also the providers of other services as knowledge,
technology, technology, product diversification, innovation, finance,
employee relationships and customer satisfaction.
2.Supplier Relationship Management
Supplier Relationship Management (SRM) is the discipline of

strategically planning for, and managing all interactions with third party
organizations that supply goods and/or services to an organization in order to
maximize the value of those interactions. In practice, SRM entails creating
closer; more collaborative relationships with key suppliers in order to uncover
and realize new value and reduce risk of failure.
Holistic supplier relationship management (HSRM) is the systematic,

enterprise-wide assessment of suppliers’ assets and capabilities with respects
to overall business strategy determination of what activities to engage in with
different suppliers, and planning and execution of all interactions with
suppliers, in a coordinated fashion across the relationship life cycle, to
maximize the value realized through those interactions.
In many fundamental ways, HSRM is analogous to customer

relationship management. Just as companies have multiple interactions over

time with their customers, so too do they interact with suppliers-negotiating
contacts, purchasing managing logistic and delivery, collaborating on product
design etc. The starting point for defining SRM is a reorganization that these
various interactions with suppliers are not discrete and independent- instead
they are accurately and usefully thought of as comprising a relationship, one
which can and should be managed in a coordinated fashion across functional
and business unit touch points and throughout the relationship lifestyle.
3. Importance of Building Holistic Relationship with Suppliers
In the past many companies would dismiss the supplier until the next
order or delivery was needed. Not anyone. The attitude towards supplier’s
relationships has changed over the past decade. Companies maintaining close
relationships with their suppliers. There are many reasons to improve
relationships with your suppliers. There are the three important reasons for
most businesses to build holistic relationship with suppliers.
Knowledge is key to Success
In may help to think of our suppliers as gate-keepers. Their knowledge

extends beyond the products they supply us with and very often can encompass
production processes or use cases. We would never know about. As our
relationship with our supplier deepens, they are likely to be open to providing
their own alternative solutions or products that could decrease our costs, increase
our quality or could provide new product innovations for our company
entirely. Knowledge transfer from both parties is paramount to success in a
customer/supplier relationship. Only when both customer and supplier can
understand each other’s deeper motives throughout the decision-making process,
can all parties can provide better service. The shared information will vary from
industry to industry, but the ideas are the same. If we let our supplier be a friend
rather than simply a means to an end, both parties will benefit.
Competing on innovation instead of only price
“Let us ask our suppliers to come and help us to solve our problems” – W.
Edwards Demming. Our suppliers are consistently innovating on their own ideas
and processes. While some of the innovations may have trickled down to our
company, we can be sure that some were kept for their best customers. As
the relationship grows between our company and our suppliers, our key
customer status may provide us with the benefits that were previously
unavailable. If we have a good relationship with our suppliers they can
provide us with innovations that could put us in the forefront of our market.
Long- Term relationships Create Financial and Strategic Value
Close relationships, both inside and outside of the business world,

have the potential to create value for us in many ways. For a supplier
relationship the benefit can be both financial and strategic. In its most basic
form, a close supplier could provide our company with volume discounts,
ensure our deliveries arrive on time by putting us first, and work with us to
lower inventory costs. It is important to realize that as our company grows,
we become a larger part of our supplier’s revenue, and in doing so, the
success of both companies become intertwined. This is the point where
strategic value is jointly created. This value could be created by sharing
innovation, allowing our company to be first to market with a new
technology, or by jointly creating new ideas.
4.Guiding Principles for Building a Holistic Relationship with Suppliers
Supplier relationships can either make or break an e-commerce

business. That is no secret given the ultra competitive web presence between
growing lists of e-commerce sites. How our suppliers perceive us is critical.
The supplier relationship affects the ability to maintain product inventory, as
well as our ability to negotiate favorable terms and pricing. After all, buyers
are often just a click away from finding what they desire on another site.
Here are some best practices for maintaining a good relationship with
suppliers.
Always pay suppliers on time: Failing to pay on time poses a risk to

supplier relationships. It erodes good faith, trust and can even be a bad
decision financially. Suppliers often have associated penalties for late
payment. They hate using it since it is adversarial, but may be forced to if our
payments are chronically late.
Maintain open and ongoing communication: Ongoing communication

between an e-commerce business and its suppliers is vital because inventory

and availability are directly affected. If our suppliers that are across borders,
additional communication issues around language and time zone delay can
occur. This is where a self service suppliers’ portal can be great advantage for
a company. By allowing our suppliers to update their payments information
upload invoices, monitor payment status and review their payments history in
a secure, always available website many of the most basic questions are
answered when they need to know.
Recognize the competition for elite suppliers: In the e-commerce world

competition for suppliers that are offering unique quality can be fierce. When,
lets say, you offer a product on our website and the reviews are terrible or that
associated customer service is rated poorly does that reflect on our site or the
supplier. It is actually a shared responsibility. If a better product is out there
not on our site buyers will go there; likewise if the supplier simply does not
value our customers because we have a weak relationship with them they may
not go out of the way to support your buyers.
Establish a personal relationship with the supplier: Even though email

is the easiest form of communication, it is better for the relationship to
establish in-person contacts once in awhile or even the occasional phone call.
Networking with suppliers can help build up a personal rapport and drive
partnership that is often off the menu. To arrive at that collaboration
points other areas of the relationship must be resolved, particularly if we are
looking to scale the process to a wide breadth of suppliers.

22. BUILDING BEST PARTNER RELATIONSHIP
WITH CUSTOMERS
1. Introduction
The concept of partner relationship with customers is of recent origin.

It refers to thinking of the company – customers relationship as a partnership
rather than two ships passing in the right (separately) – Anderson. Now, more
than ever, customers’ satisfaction and retention are critical to success. Fierce
competition today forces company to become much more creative and
flexible in their delay with customers to give them exactly what they want.
The companies must partner with their customers, reconnect with them to
create a shared that in more secure them either could have built alone. In today’s
turbulent times of rapid and volatile change, no force in more grounding and
stabilizing than a partnership with customers. We take the term customer
partnership no much in its legal definition of co-ownership best rather in its sense
of sharing in benefits, profits and losses of the company.
Meaning of Partnership Relationship with Customers
-Customers’ partnership is a shared journey to create a future for both

parties that is better than either could have developed alone. The customer
influences every aspect of business and is the foundation of organizational
success.
Customer Partnership

The diagram shows how customers can influence every aspect of
organization and how it can be foundation for company’s success
- Customer partnership is more than putting customers first it is finding

mutually satisfactory solutions to shared problems or dedication to
excellence in every sale or service counter. It also secures
commitment to forging long-term relationships that create synergies of
knowledge, security and adaptability for both parties.
2. Importance of Partner Relationship with Customers
Changing business world: The business world is always changing and more
and more so also the relationship between the business service providers and
their customers. In the present context, it in not enough for agencies to treat
customers separate from them. There is necessity for building best partnership
with the customers and drive the benefit of new partnership.
Sharing relationship: With a partnership approach there is a sharing

relationship. The new partners do not pay the service or the product the
companies are selling; they rather share their success with the companies. The
companies are contributing to the success and customers are contributing to
the business growth.
Foundation for Cooperation: The partnership approach enables companies

to understand partner’s needs as good communication and understanding in
mandatory for business success. An on-going dialogue is very important; on it
is the foundation of cooperation. It gives an opportunity to respect others’
opinions and ideas and choose best approach for both sides
Anticipatory: Customers are always looking for reduced costs, improved

sales and profits and deliver better quality, more diverse products. Building
partnership with customers creates additional value for the customers by
anticipating their demand and interests and to pro-actively deliver viable
solutions for their business problems.
Maintaining the needed focus: Creating a partnership with customers will

help the organizations maintain the focus they need to make good decisions
and harness the power and commitment the companies need to weather
volatile times
Increasing customers’ value: It is partnership with customers leads virtual
integration where the links of value chain are brought together by informal
work in order to differentiate themselves from their competitors and earn
higher margins and integrity thoroughly with their customers’ obligations.
3. Principles for Building Best Partner Relationship with Customers
Communication: Listening is just as important as telling. We should think

about how often we actually speak with our customers. We should not be
calling only when we need to make a sale or close a deal. We should focus on
less financial driven communication whether it’s email phone, or face to face
interaction.
Rewards: Every industry has companies who do reward and customers’

loyalty programs differently. It is a very simple from of saying Thank You
and particularly of late loyalty programs seem only to have grown in
popularity. Customer loyalty programs are the next generation marketing
strategy. It is a viable and measurable recognizing and understanding our
customer and each one is unique. So learn about each of them separately once
we do that, we can gear loyalty program around their habits likes and dislikes.
Enhanced customer service: Customers no longer care about what

department we are in, they simply want their problem fixed. With social
CRM channels like twitter replacing traditional call centers, it is imperative
that everyone in our company buy into a singular customer service strategy.
Good customer service can be the determining factor in repeat business. So
we should focus extra attention on it.
Emphasize human touch: It is very true that getting to know the names and
faces of regular customers shows that we care. Additionally as a small
business, we make the extra effort to emphasize face-to-face interaction as
opposed to phone or event.
Be flexible: We should be quick and attentive to a customer problems or

complaints. We should set aside some strategy ideas for dealing but with an
unhappy customer but we should not waver far from the old mantra that the
customer is always right.

4. Guidelines for Building Partner Relationship with Customers
Be Authentic: ‘Be who you are, accept others as they are’. It is easy to create
a false persona, especially online, but that is not the way to start a relationship
and is short lived. We should find people and companies we feel a natural
connection and ease of communication with and things we both have in
common. The authenticity of connecting personality, beliefs and point of
view can accelerate relationship.
Identify shared goals and values: We seek out people in life we like share
similar goals and values with. Too many people present themselves one way only
to take advantage of people. Once they have their trust we may not always share
the same point of view with everyone, but the shared values are a must.
Develop mutual respect: Join a chamber, professional group, or online

communities which are all great environments to develop relationship. Be
patient, selective and watch people in action. Building mutual respect is an
essential for growing relationships
Support Loyalty: We should let customers know that we support loyalty.

This may be done through regular, informal conversations, events, or by
addressing the people.
Make meaningful connections for people to network with each other: The
greatest compliment in business is a referral. We should be thoughtful, have
right motives and be connecting people for the right reasons. Not all referrals
work out. It takes two to make it happen and work, so we should not be doing
all the work.
Get more personal: If we really want to get to know people, we ask them to
go for coffee so that we can talk more personally. No one will be willing to
hare experiences ideas points of view and simply learn more about each other
story family and professional history.
Schedule Brainstorming time: We should block out dedicated time to

brainstorm, engage and do business together. It is best to set a regular time, a
time limit and an agenda for what we want to accomplish it.

23. CREATING VALUE TO SHAREHOLDERS
1. Introduction
Shareholders value is a business term, sometimes phrased as

shareholder value maximization or as the shareholder value model, which
implies that the ultimate measures of a company success is the extent to
which it enriches shareholders. It became popular during the 1980’s and is
particularly with former CEO of General Electric, Jack Welch. The term can
be used to refer to the market capitalization of a company. The concept means
that the primary goal for a company is to increase the wealth of its
shareholders (owners) by paying dividends and or causing the stock price to
increase. The more specific concept is that planned action by management
and the returns to shareholders should outperform certain bench-marks such
as the cost capital concept. In essence, the idea that shareholder’s money
should be used to earn a higher returns than they could earn themselves by
investing in other assets having the same amount of risk.
2. Meaning and Definition
For a publicly traded company, shareholders value, shareholders (SV)

is the part of its capitalization that is equity as opposed to long-term debt,. In
the case of only one type of stock, this would roughly be the number of
outstanding shares times current share price. Things like dividends augment
shareholders value, while issuing of shares (stock options) lower it. This
shareholders value added should be compared to average/ required increase in
value, making reference to the cost of capital. For a privately held company,
the value of the firm after debt must be estimated using one of several
valuation methods as discount cash flow or others.
Maximizing shareholder’s value, also known under value based

management, states that management should first and foremost consider the
interests of shareholders in its business actions. The concept of maximizing
shareholders value is usually highlighted in opposition to alleged examples of
CEO’s and others management actions which enrich themselves at the expense of
shareholders. Example of this includes acquisitions which are dilutive to
shareholders, that is, they may cause the combined company to have twice the

profit for example but these might have to be split amongst three times the
shareholders.
Shareholder value is value delivered to shareholders because of

management ability to grow sales, earnings, and free cash flow over time. A
company shareholders’ value depends on strategic decision made by senior
management including it ability to make wise investments and generate a
healthy return on invested capital. If this value created over the long term the
share price increases and the company can pay larger cash dividends to
shareholders. are four important components in creating value to
shareholders. They are: commitment of value creations as the company’s
focus, relentless cost management, major transformation of the performance,
and creating high performance outcome.
3. Need for Creating Value for Shareholders
The reality is that the shareholders value principle has to failed

management; rather it is management that has betrayed the principle. In the
1990’s for example many companies introduced stock options as a major
component of executive compensations. The idea was to align the interest of
management with those of shareholders. But the generous distribution of
option largely failed to motive value-friendly behavior because their design
almost guaranteed that they would produce the opposite result.
Some executives contend that they have no choice but to adopt a

short-term orientation, given that the average holding period for stock in
professionally managed funds has dropped from about seven years in the
1960;s to less than one year today. Then, it is not wise to consider the interest
of long-period shareholders when there are none. This reasoning is deeply
flawed. What matters is not investor holding periods but rather the market’s
valuation horizon-the number of years of expected cash flows required to
justify the stock price. While investors may focus unduly on near-term goals
and hold shares for a relatively short time, stock price reflect the markets long
view. Studies suggest that it takes more than ten years of value-creating cash
flows to justify the stock prices of most companies. Management
responsibility, therefore, is to deliver those flows- that is to pursue long-term

value maximization regardless of the mix of high – and low- turnover
shareholders.
4. Methods to Create Value to Shareholders
Do not manage earnings or provide earnings guidance: Focusing on

earnings is not wise because of three reasons; first the accountant bottom line
approximate neither a company’s value nor change in value over the reporting
period. Second organizations compromise value when they invest at rates
below the cost capital (over investment) or forgo investment in value creating
opportunities (under investment) in an attempt to boost short- term earnings.
Third, the practice of reporting rosy earnings via value destroying operating
decision or by stretch permissible accounting to the limit eventually up with
companies.
Maximize the Expected Value: Makes strategic decision that maximize

expected at the expense of lowering near term earnings. Expected value is the
weighted average value for a range of plausible scenarios (to calculate it,
multiply the value added for each scenario by the probability that that
scenario materialize, then sum up the results). A sound strategic analysis by a
company operating units should produce uniform response to three questions;
first how do alternative strategic affects value second which strategy is most
likely to the greatest value, third for the selected strategy, how sensitive is the
value of the most likely scenario to potential shift competitive dynamics and
assumptions about technology life cycles, the regulatory environment and
other relevant variable.
Making Acquisitions that maximize Expected Value: Make acquisition

that maximize expected value even at the expense of lowering near-term
earnings. Companies typically create most of their value through day-to-day
operations, but a major acquisition can create or destroy value faster than any
co-operate activity. With record levels of cash and relatively low debt levels
companies increasingly use mergers and acquisitions to improve their
competitive positions.
Carry only assets that maximize value: The fourth principle takes creation
to a new level because it guides the choice of business model that value-
conscious companies will adopt. There are two parts to this principle.

First, value oriented companies regularly monitor whether there are
buyers willing to pay meaningful premium over the estimated cash flow value
to the company for its business units, brands, real estate and other detachable
assets. Second, companies can reduce the capital they employ and increase
value in two ways; by focusing on high value-added activities (such as
research, design and marketing) where they enjoy a comparative advantage
and by outsourcing low value added activities (like manufacturing) when
these activities can be reliably performed by others at lower cost.
Return cash to shareholders: When there are no credible value creating

opportunities to invest in the business it is better to return cash to
shareholders. Value – conscious companies with large amounts of excess cash
and only limited value creating investment opportunities return the money to
shareholders through dividends and share buybacks. Not only does this give
shareholders a chance to earn better returns elsewhere, but it also reduce the
risk that management will use the excess cash to make value destroying
investments in particular ill advised overpriced acquisition.
Reward CEO’s other senior executive: It is necessary to reward the CEOs

and other senior executives for delivering superior long-term returns.
Companies need effective pay incentives at every level to maximize the
potential for superior returns. Value – conscious companies can overcome the
shortcomings of standard employee stock options by adopting either
discounted indexed-option plan or a discounted equality risk option (DERO)
plan. Indexed options reward executive only if the company’s shares
outperform the index of the company’s peers-not simply because the market
is rising.
Reward operating unit executives: The operating executives should also be

rewarded for adding superior multiyear value. While properly structured
stock options are useful for executives whose mandate is to raise the
performance of the company as a whole and thus, ultimately, the stock price.
Such options are usually inappropriate for rewarding operating unit
executives who have a limited impact on overall performance. To create
incentive for an operating unit, companies need to develop metrics such as
shareholders value added (SVA).

Reward middle managers and frontline employees: The middle level
managers and frontline employees need to be rewarded for delivering superior
performance on the key value driers that they influence directly. Although sales
growth operating margins and capital expenditure are useful financial indicators
for tracking operating unit SVA, they are too broad to provide much day-to-day
guidance for middle managers and frontline employees who need to know what
specific actions they should take to increase SVA.
Require Senior executive to bear the risks of Ownership just

as
Shareholders do: For the most part option grants have not successfully aligned
the long-term interests of senior executives and shareholders because the former
routinely cash out vested options. The ability to sell shares early may in fact
motivate them to focus on near-term earnings results rather than on long term
value in order to boost the current stock price. Companies need to balance the
benefits of requiring senior executive to hold continuing ownership stakes and
the resulting restrictions on their liquidity and diversification.
Provide investors with value-relevant information: One way to do this is

to prepare a corporate performance statement. This statement separates out
cash flows and accruals, providing a historical baseline or estimating a
company’s cash flow prospects, classifies accruals with long cash-conversion
cycles into medium and high levels of uncertainty, provides a range and the
most likely estimate for each accrual rather than additional single-point
estimates, and excludes arbitrary, value-irrelevant accruals.

24. SOCIALLY RESPONSIBLE LEADERSHIP
1. Introduction
A changing world demands a new leadership style emphasizing

societal impact and commitment to the common good. Unfortunately our
business and political leaders have been slow to recognize the need for
change the frequent appearance of buzzwords such as corporate social
responsibility (CSR) and sustainability in management literature
notwithstanding. As a result, public trust in business and government hit
historic lows in the past..
The ideological impasse and trust deficit between leaders and

the public have made the worlds problems appear intractable. As decision
makers within our primary value creating institutions i.e., companies.
Business leaders wield immense power and influence to be used for good
or ill. In many of emerging markets where companies expect future
growth to be concentrated business may be better able to effect necessary
change than Government struggling to retain power or mired in corruption
through responsible leader, socially responsible lreadership.
2. Socially Responsible Leadership - Definition
Socially Responsible Leadership is about making business decision

that next to the interest of the shareholders, also takes into account all the
other stakeholders, such as workers, clients, suppliers the environment the
community and future generations
Socially Responsible Leader develops a social dialogue in the plant,

building strong relationships with workers and trade union leaders. He
promotes fair wage increases through collective bargaining, ensures the latest
health and safety procedure are in place. He sets up a day care centre for the
working parents and also negotiates many other items, like parental leave
health packages, continuing education and career paths for his staff.
Socially Responsible Leadership is that which meets regularly with

many of the local officials of the town nearby to make sure his company is
considered as a good citizen in the community. He also promotes philanthropic
activities

Socially Responsible Leadership as a business school subject area is
less about ethical theory and more about ethical practice based on case
studies. The practice has a particular focus on individuals’ value systems and
the pragmatic applications of an individuals values in the real life challenging
dilemmas of business.
5.Five Dimensions of Responsible Leadership
The development of socially responsible leaders in today’s

complex global and ever changing world requires a commitment to holistic
and integrated learning by a community. Moreover it requires that the
university community itself embodies what it seeks to develop in its
members, thus as an effective mentoring community and environment.
1. Awareness:Socially responsible leaders have achieved a sense of self-

authorship or personal agency. They critically assess and actively discern how
their personal gifts, talents, resources, and abilities might best contribute to
the broader human community. They articulate and live with a sense of
authenticity, purpose, and ethical integrity. They maintain an appreciation for
the transcendent dimension of human life, and seek ongoing personal and
spiritual development and growth. They understand their personal values
within the context of deeper cultural, historical, and philosophical/theological
roots.
2. Vision: Socially responsible leaders engage and listen compassionately to

alternative and diverse perspectives and people. Rooted in the spirit of
tradition, they have a particularly keen recognition and appreciation for the
sacred dignity of each human person, especially those who are poor or
marginalized. They demonstrate the ability to work in a team or a community
of people and interact and communicate effectively with diverse others in a
variety of social situations.
3. Responsibility: Socially responsible leaders articulate, actively reflect

upon, and live a commitment in their life and work to contribute to a
community beyond themselves – locally, nationally and/or globally. Their
sense of purpose, mission, and vocation extends to consider the broader social
and environmental implications of their decisions and actions. They actively
participate in civic and political processes and demonstrate an ability to think

systematically about social problems and opportunities in the light of some
normative understanding of the just society.
4. Imagination: Socially responsible leaders have the ability to think

critically. They actively seek historical and contextual knowledge relevant to
the concrete situation they experience or confront. They show the ability to
apply knowledge from their expertise or discipline of study to their particular
life experiences and social situations in fruitful ways and in dialogue with
other perspectives and disciplines. In addition, they seek to integrate and
synthesize knowledge from a variety of sources and perspectives.
5. Action: Socially responsible leaders sustain long-term commitments worthy

of their attention over a lifetime or career. They consistently strive for self-
improvement and higher standards, and through their actions and words they
effectively inspire others to do the same. They exercise ethical decision-making
and leadership by developing creative and innovative responses to both emerging
and persistent human and societal questions. They are lifelong learners who
pursue and work for an ever-renewed vision of the common good.
3. Duties of Responsible Leadership
-Being prepared to challenges the logic of your industry: Great leaders are
prepared to challenge the logic of their industry. They try to question and
change the existing patterns towards better ones.
-Doing something because it is the right thing to do: The socially

responsible leader. Leaders are pay prepared to do something because it is the
right thing to do and then work out how to make it pay and thereby give good
results.
-Understanding that the leaders set incentives- Sometimes the bottom line
is the wrong incentives. The people should understand that the leaders set
incentives. It is the duty of the leader to make this happen.
-Understanding when to follow the rules, and when to use common sense:
In the face of unintended outcomes good leaders understand when to follow
the rules and when to use common sense in following rules and procedures.

-Knowing the reality of oneself:- Just because people around us see us as a
leader, it does not mean that we are good leaders. We have to know the reality
of ourselves.
4. Conclusion:
: Socially Responsible leadership is the dire necessity of the present times,

plagued with unbridled selfishness, cut throat competition, aggressive marketing,
exploitation of workers in excess supply , widespread and mindless exploitation of
resources, unauthorized use of power and so on. The organizations should look for
socially responsible leaders so that there will be a win-win situation in all fields of
activity and across the globe. Because, the social responsibility does not end with one
society, and one nation.

25. LEAVING THE GLOBAL FOOTPRINTS
1. Introduction
Leaving the footprints is a phrase from a poem by Henry Wadsworth

Longfellow. The phase describes the mark that great leaders or individuals
leave on history. By this phrase, the poet means leaving everlasting, never
erasable, lessons of life on and during time as a time revelation. The phrase is
found in the seventh stanza of the poem ‘A Psalm of Life’. Lives of great men
all remind us we can make our lives sublime, and departing, leaving behind
us footprints on the sands of time. When we look at the lives of great men we
can see that it is possible to live with meaning and that when we depart we
can leave our footprints on the sands of time”. It is possible that some other
person who is toiling solemnly may see our footprints and take heart. Lives of
grater men remind that we can make our lives noble and elevated, that is ,we
can reach great heights. Finally, when we depart or die we can leave behind
us our footprints or noble deeds, noble principles for others to follow. The
noble deeds and principles which we leave behind should be such that an
unhappy and ship- wrecked man sailing over the sea of life would courage
following our examples. Mahatma Gandhi, for example, has left footprints in
the form of national movement with the principles of non-violence and
satyagraha. Other leaders like Nelson Mandela have followed these footprints
for achieving noble deeds.
The footprints are idiomatic representations of great deeds,

achievements, noble principles, humane programmes, and innovative policies.
A new political, social and cultural philosophy, a new theory a new social
service entity, a brand new development strategy can also be termed as
footprints. In business, leaving global footprints means making a remarkable
mark in the business field which other global business leaders can take to
their hearts and follow for achieving noble deeds and significant social
results. It may be a new product which can enrich the lives of people -their
health, education and living standards or a broad new technology which can
transform the while business environment or an innovative business strategy
that satisfies the wishes of all the stakeholders or business theory and practice
which enables people to understand the problems and challenges encountered
in the business world.
2.Basic Traits for leaving Global Footprints
Know the business: We should be deeply rooted in the business. We have to

be the business people first, and communicators second. We have to identify
and align with people who can help us develop our understanding of the
business.
Take a wide view: We should be knowledgeable about the world. We have

to know many forces at play, each of which can affect our business,
customers, and stakeholders.
Be intellectually curious: We should be like investigative journalist, the

person eager to ask tough questions. When we do our job properly, we should
ask questions. Colleagues will find awkward and even uncomfortable.
Have gumption: Gumption means common sense, initiative, and

resourcefulness. We should take a broad view that looks out over multiple
stakeholder groups.
Write, write then write some more: If we can not write we have no business
being in any field of enterprise or activity. We shape the narratives, explain
the positions, and vision of our organization and answer tough questions.
Practice humor humility, honesty and honor: We perform intense,

pressure-packed roles. A little humour, combined with humility, honour and
honesty will go a long way in building trusted long-term relationships.
Be essential: We should earn the respect of business leaders by knowing

what matters them and become one among the few they intend to choose for
any task or challenge.
Integrity and ethics: We have to be an internal conscience, always acting

with integrity and ethics. Only then we can help our leaders earn the respect
and credibility from the stakeholders we seek to engage.
As an evolving profession: We should consider and treat our profession as

an evolving profession. It will take a long time and process. Still it is an
essential step.

3.Methods for leaving Global Footprints in Business
Leaving global footprints is not an easy task it is a result of extraordinary

endeavor and involves many steps/methods. It is not as if the sands are there
to receive our footprints readymade. The following are the major steps for
leaving global footprints as the sands time in the business world.
New products : Normal business achievement like sales growth and revenue
are not enough for leaving footprints. Launching of new products and
developing them will make the business world remember the products and
also the leader; the leader can leave footprints only through new products.
Closing the gap from the end client: Closing the gap from the giver and
receiver made many leaders to be remembered by the world. The close
relationship between leader and followers made Gandhi and Mother Theresa
great leaders. In the business world a distributor less scheme which connects
the manufacturer and client will make the leader great; the direct link with
clients is the footprints that the leader can leave and this can be followed by
others.
Growth from regional development: It is not the overall development or

development in macro sense that will be remembered. The growth from the
lowest level or regional level that will be a meaningful development and that
will be remembered by the world.
Becoming the heart of development: Development should breed

development; it should not be an end, and it should become central or hub
leading to the further development area wise. Success is one aspect should be
heart for development in other aspects.
Improvements from technology upgrades: Traditionalism and status quo

technology will not be remembered at all. Only the improvements from
technology upgrades will be remembered by the world for quite some time.
So, it is only improvement in service or cut in costs that leave footprints.
New suppliers: Creation of opportunities for new suppliers is another method of

leaving global footprints. The business leaders should provide opportunities for
local supplies apart from non-local suppliers. The companies should seek

suppliers in all the countries where they operate to assist the development of
the industry locally.
Social activities : The leaders should share concern for the commitments
where they operate and function. After achieving development and
improvements in the industry, the focus should be on providing social
services and involving in social activities like health, education, welfare or
environment.
Becoming social partners: The development of an industry should

contribute to the development of others business;; the global business
activities should benefit from the growth of a particular industry or business.
4.Steps for leaving Global Footprints.
Leaving global footprints is not an easy task it is a difficult and noble

process involving many aspects to be done step-by- step. Following are the
essential steps for leaving global footprints.
Identifying what matters to us
A leader has many things to do – directing, motivating, enlightening,

empowering etc. But, a leader cannot do everything at a time; it is important
that we identify what matters to us at a point of time and pursue it to the best.
we should contribute best to our cause.
Writing a six word memoir : Memoir is an account describing our

experience of a subject from personal knowledge or from sources with
personal knowledge of the subject. This will be a reference for our endeavor
and also messages for the people who follow us. This is the best method of
leaving footprints.
Creating an ethical will: A will of a person is his independent faculty of

choice, his intention or decision, his order and commands, and ultimately
asking for exercise of his choice or intention. A leader should state in clear
terms what are the intentions and choices to be pursued by himself or herself,
and also the followers.
Leaving a legacy of leadership: This is the best medium through which a

leader can leave the footprints. Whatever may be the ideas and achievements,

they are bound to be wiped out by the winds of time. The floods of changes
and tsunami of revolutions my make people forget the facts. So, it is
necessary for a legacy of leadership to carry on the ideas and keep the
momentum of transformation.
Giving of ourselves: We should give of ourselves. Selfishness, self-

centeredness or self-orientation is the things that are anathema to leadership.
The leaders should come out of the self and work for the community.
Life of honor (Mensch) : Mensch is a gentleman, a person of strength,

integrity, honor and comparison. It is only the leaders who live with these
values can leave global footprints.

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LEADERSHIP VALUES

RCR Institute of Management & Technology

RCR Institute of Management & Technology Page 1

1. Harry M. Kraemer (2015) Becoming the Best: Build a World Class

NOTE TO THE PAPER SETTER:

RCR Institute of Management & Technology Page 2

1. CONCEPT AND SIGNIFICANCE OF

Leadership is the ability or capacity of someone to lead and to

-Value based leadership is when there is alignment of organizations

-Value based leadership is a system; it takes into consideration the

Systems Strategy Process

Performance Recognition Rewards

-Value based leadership is motivating employees by connecting

- The essential characteristic of value based leadership is the belief that

-Value based leadership is essentially about cultivating a purposeful

-Value based leadership is motivating employees by connecting

RCR Institute of Management & Technology Page 4

Value based leadership holds a number of extraordinary promises that

Values- based leaders communicate organizational values that tell members

3.Principles of Value –Based Leadership

Leading a life guided by purpose: When looking for a job, examine a

RCR Institute of Management & Technology Page 5

Putting people in the right jobs: McDonald emphasized the importance of

Encouraging diversities in the organization: Diversity is what helps these

Trying to blend a high-performance culture with robust systems and

Being committed to employees as people, not as employees: The

Trying to manage changes: Organizations must renew themselves. Leaders

Recruiting is a top priority: There is every need for new membership to

Trying to leave footprints: The true test of a leader is the organization’s

Shared vision is the sharing of the organizations’ vision, created by

2. Meaning and Definitions

Shared vision is the first step for learning organizations to improve

-A force in people’s hearts, a force of impressive power…. At its

-A shared vision is a picture that everyone in the company carries in

-Shared vision is an attempt to define a distinct future.

Burt Nanus gives a clear and concise definition.- A vision is only an

RCR Institute of Management & Technology Page 7

According to Reggie McNeal, “Vision in other words is the domain of

A vision is a clear picture of the future an organization wishes or

3. Significance of Shared Vision

All about leadership: Leadership is not only leading and directing;

Essential component: Shared vision is an essential component of a

Sense of commonality: Shared vision creates a sense of commonality;

Avoids competition and confrontation: With a shared vision, there

RCR Institute of Management & Technology Page 8

Creates excitement: Shared vision will encourage emotions in the

Common identity and purpose: Shared vision also creates common

Innovation: Shared vision encourages new ways of thinking and acting.

Makes employees forward-looking: Through shared vision, the

3. Methods of Sharing Vision

One of the greatest challenges any leader has in regard to team

RCR Institute of Management & Technology Page 11

3.Components of and Steps for Value Based Culture

Committed to service: Value based culture is professional, objective,

Accountability: Value based culture is open and accountable to the

Ethical: Value based leadership demonstrates that leadership is trustworthy,

Inspire employees, instead of just relying on carrots or sticks:

4. Methods to Build Value Based Culture: