Nature and Importance of

Leadership
I. The Meaning of Leadership
To be a leader, one has to make a
difference and facilitate positive changes.
Leaders inspire and stimulate others to
achieve worthwhile goals. A useful
definition of leadership is the ability to
inspire confidence and support among the
people who are needed to achieve
organizational goals.
Articles and books about leadership
indicates 533 million. In all those entries
leadership has probably been defined in
many ways. Several other representative
definitions of leadership are the
following:
Interpersonal influence, directed through
communication toward goal attainment.
The influential increment over and above mechanical
compliance with directions and orders.
An act that causes other to act or respond in a shared
direction.
The art of influencing people by persuasion or
example to follow a line of action.
The principal dynamic force that motivates and
coordinates the organization in the accomplishment of
its objectives.
A willingness to take the blame (as defined by
legendary football quarterback Joe Montana)
A. Leadership as a Partnership
A current perspective on leadership is that it
constitutes a partnership, being connected to another
in such a way that the power between the two is
approximately balanced. Partnership occurs when
control shifts from the leader to the group member.
According to Peter Block, a partnership involves (a)
an exchange of purpose, (b) the right to say no (c)
joint accountability and (d) absolute accountability.
A closely related idea is stewardship theory that
repicts group members (or followers) as being
collectivists, pro-organizational and trustworthy.
B. Leadership as a Relationship
A modern study of leadership emphasizes
that leadership is a relationship between the
leader and the people being led. Research
indicates that having good relationship with
group members is a major success factor for
the three top positions in large
organizations. Building relationships with
people is such an important part of
leadership that the theme will be introduced
at various points.
C. Leadership versus Management
 To understand leadership. It is important to grasp the
difference between leadership and management. Leadership
is but one of the four major functions of management
(planning, organizing, controlling and leading). Current
thinking emphasizes that leadership deals with change,
inspiration, motuivation and influence. In contrast,
management deals more with maintaining equilibrium and
the status quo.

 According to John P. Kotter, a prominent leadership theorist,

managers must know how to lead as well as manage.
Without being led as well as manage, organizations face the
threat of extinction. Following are several key distinctions
between management and leadership.
Leaders and Managers
LEADER MANAGER

Visionary Rational

Passionate Business-like

Creative Persistent

Inspiring Tough-minded

Innovative Analytical

Courageous Structured

Imaginative Deliberative

Experimental Authoritative

Independent Stabilizing

Shares Knowledge Centralizes Knowledge

Trusting Guarded

Warm and radiant Cool and reserved

Expresses humility Rarely admits to being wrong

Initiator Implementor

Act as a coach, consultant, teacher Act as a boss

Does the right things Does things right

Despite these distinctions, organizational
leaders must still be good managers, and
effective managers must also carry out
leadership activities.
The Impact of Leadership on
Organizational Performance
An important justification for studying
leadership is that leaders effect
organizational performance. Many
faltering business firms and athletic teams
bring in a new top leader to spearhead a
turn around.
A. Research and Opinion: Leadership
Does Make a Difference
A smattering of evidence supports the contention that
leadership affects organizational performance. A team of
researches investigated the impact of transactional (routine)
and charismatic (inspirational) leadership on financial
performance, as measured by net profit margin. They found
that transactional leadership was not related to performance
and that charismatic leadership was most strongly related to
performance in an uncertain environment. A case example
is that Allen Questrom achieved some good results in
attempting to turn around a poorly performing J.C. Penney.
Whether or not leaders do make a difference, organization
members perceive that they do, as suggested by attribution
theory, the process of attributing causality to events.
B. Research and Opinion: Formal
Leadership Does not make a Difference

According to the anti leadership

argument, leadership has a smaller impact
on organization outcomes than do
situational forces.
1. Substitutes for Leadership. One viewpoint is
that many organizations contain substitutes for
leadership, factors in the work environment that
provide guidance and inceptives to perform,
making the leaders role almost superfluous.
These substitutes for the leader and the
leadership function include closely knit teams
of highly trained individuals, intrinsic
satisfaction, computer technology (monitoring
of work by computer) and professional norms.
Closely knit teams of highly trained
individuals intrinsic satisfaction
computer technology professional
norms
Closely knit teams of highly trained
individuals intrinsic satisfaction
computer technology professional
norms
Closely knit teams of highly trained individuals - When members
of a cohesive, highly trained group are focused on a goal, they
may require almost no leadership to accomplish their task.

Instrinsic satisfaction – Employees who are engaged in work they

find strongly self-motivating or intrinsically satisfying require a
minimum leadership.
 
Computer technology – Companies today use computer – aided
monitoring and computer networking to take over many of the
supervisor’s leadership function. So instead of a supervisor for
assistance, some employees use the computer network to ask for
assistance from other workers.

Professional norms – Workers who incorporate strong professional

norms often require a minimum of supervision and leadership.
2. Leader Irrelevance. Prefer argues that leadership is
irrelevance. Pfeffer argues that leadership is irrelevant
to most organizational outcomes because factors
outside the leader’s limited control over resources,
and that top leaders whose values are compatible with
those of the firm are chosen. We believe strongly that
despite these constraints leaders still have key roles.

3. Complexity Theory. This theory holds that

organizations are complex systems that cannot be
explained by the usual rules of nature. Leaders and
managers can do little to alter the course of the
complex organizational system.
 
III. Leadership Roles
 Understanding leadership roles helps explain leadership.
A role is an expected set of activities or behaviors
stemming from the job. Leadership roles are a subset of
the managerial roles studied by Henry Mintzberh and
other researchers. Leading is a complex activity, so
Mintzberg and other researchers identified nine roles
that can be classified as part of the leadership function
of management.
The 9 Leadership Roles
1. Figurehead – Leaders, particularly high – ranking
managers, spend some part of their time engaging in
ceremonial activities. Four specific behaviors fir the
figurehead role of a leader:

Entertaining clients or customers as an official

representative of the organization
Making oneself available to outsiders as a representative
of the organization.
Serving as an official representative of the organization
at gatherings outside the organization
Escorting official visitors
2. Spokesperson – Managers acts as a spokesperson, the
emphasis is on answering letters or inquiries and formally
reporting to individuals and group outside the managerial
leader keep five groups of people informed about the units
activities, plans, capabilities, and possibilities (vision):

Upper – level management

Clients or customers
Other important outsiders such as labor unions
Professional colleagues
The general public

Dealing with outside groups and the general public is

usually the responsibility of top-level managers.
3. Negotiator – Part of almost any manager’s job
description is trying to make deals with others
for needed resources. Researchers have
identified there specific negotiating activities:

Bargaining with superiors for funds, facilities,

equipment or other forms of support
Bargaining with other units in the organization
for the sue of staff, facilities, equipment or
other form of support.
Bargaining with suppliers for services,
schedules and delivery items.
4. Coach and Motivator – An effective leader
takes the time to coach and motivate team
members. This role includes four specific
behaviors:

Informally recognizing team members’

achievements
Providing team members with feedback
concerning ineffective performance
Ensuring that team members are informed of
steps that can improve their performance
Implementing reqards and punishments to
encourage and sustain good performance
5. Team Builder – A key aspect of a leaders role is to
build an effective team activities contributing to this
role include:

Ensuring that learn members are recognized for their

accomplishments such as through letters of
appreciation
Initiating activities that contribute to group morale,
such as giving parties and sponsoring sports teams.
Holding periodic staff meetings to encourage team
members to talk about their accomplishments,
problems, and concerns.
 
6. Team Player – Related to team – builder
role is that of the team player. Three
behaviors of team players are:

Displaying appropriate personal conduct

Cooperating with other units in the
organization
Displaying loyalty to superior by
supporting their plans and decision fully.
7. Technical Problem Solver – It is particularly
important for supervisors and middle
managers to help members solve technical
problems. Two activities contributing to this
role are:

Serving as a technical expert or adviser

Performing individual contributor task on a
regular basis, such as making transaction calls
or repairing machinery.
8. Entrepreneur – Although not self-employed, managers who
work in large organizations have some responsibility for
suggesting innovative ideas or furthering the business aspects
of the organization. Three entrepreneurial leadership role
activities are:

Reading trade the publications and professional journals to

keep up with what is happening in the industry and profession.
Talking with customer or others in the organization to keep
aware of changing needs and requirements.
Getting involved in situations outside the unit that could
suggest ways of improving the unit’s performance, such as
visiting other firms (Other RTC/s Regional Offices), attending
professional meetings and participating in educational
programs.
9. Strategic Planner – Top – level managers engage in
strategic planning usually assisted by input from
others throughout the organizational. Carrying out the
strategic – planner role enables the manager to
practice strategic leadership. Specific activities
involved in the role include:

Settinga vision and direction for the organization

Helping the organization deal with the external
environment
Helping develop organizational policies

An important implication of these roles is that

managers at all level can and should exert leadership.
IV. The Satisfactions and Frustrations of
being a Leader
The term leader has a positive connotation
for most people. To be called a leader is
generally better than to be called a follower
or subordinate. Yet being a leader, such as a
team leader, class president, and other higher
positions, does not always bring personal
satisfaction. Some leadership jobs are more
fun than others, such as being the leader of a
successful group with cheerful team
members.
A. Satisfactions of Leaders
The types of satisfactions that you might
obtain from being a formal leader depend
on your particular leadership position.
Factors such as the amount of money you
are paid and the type of people in your
group influence your satisfaction.

Seven sources of satisfaction that leaders

often experience:
1. Feeling of power and prestige – Being a
leader automatically grants you some power.
Prestige is forthcoming because many people
think highly of people who are leaders.

2. Chance to help others group and develop –

A leader works directly with people, often
teaching them job skills, serving as mentor,
and listening to personal problems. Parts of a
leader’s job is to help other people become
managers and leaders.
3. High Income – Leaders, in general, receive higher pay
than team members. In some situations a team leader earn
virtually the same amount of money as other team
members. Occupying a leadership position, however, is a
starting point on the parth to high-paying leadership
positions.
 
4. Respect and status – A leader frequently receives respect
from the group members. He or she also enjoys a higher
status than people who are not occupying a leadership
role. When an individual’s personal qualifications match
position, his or her status is even higher.
5. Good opportunities for advancement – Once you become a
leader your advancement opportunities increase. Obtaining a
leadership position is a vital first step for career advancement in
many organizations.
 
6. Feeling of “being in on” things – A side benefit of being a
leader is that you received more inside information. For
instance, as a manager you are invited to attend management
meetings. In those meetings you are given information not
passed along to individual contributions.

 7. An opportunity to control money and other resources – A

leader is often in the position of helping to prepare a department
budget and authorize expenses. Even though you cannot spend
this money personally, knowing that your judgment on financial
matters is trusted does provide some satisfaction.
B. Dissatisfactions and Frustrations of Leaders

Despite the glory of being a leader,

occupying a leadership or management
role has many built – in potential
frustrations.

Seven sources of dissatisfaction and

frustrations that leaders often experience:
1. Too much uncompensated overtime – People in
leadership jobs are usually expected to work longer hours
that other employees. Such unpaid hours are called casual
overtime.

2. Too many headaches – It would take several pages to list

all the potential problems leaders face. Being a leader is a
good way to discover the validity of Murphy’s Law: “If
anything can go wrong, it will” A leader is subject to a
batch of problems involving people and things. Many
people find that leadership position is a source of stress
and many manager experience burnout.
3. Not enough authority to carry out
responsibility - as a leader, you might be
expected to work with al ill – performing
team member, yet you lack the power to
fire him or her.

4. Loneliness – being a leader limits the

number of people one can confide in
5. Too many problems involving people – A major frustration facing a
leader is the number of human resource problems requiring action.
The lower your leadership position, the more such problems you face.

6. Too much organizational politics – As a leader you have to engage in

political by play from three directions: below, sideways and upward.
Troublesome aspect of organizational politics is that there are people
lurking to take you out of the game, enemies within might attack you
directly in an attempt to shift the issue to your character and style. In
addition, backstabbers may agree with you in person but badmouth
you to others.

7. The pursuit of conflicting goals – A major challenge leader’s face is

to navigate among conflicting goals. The central theme of these
dilemmas is attempting to grant other the authority to act
independently, yet still getting them aligned or pulling together for a
common purpose.
 
V. A Framework for Understanding Leadership

Certain major sets of variables influence leadership

effectiveness. The basic assumption underlying the
framework is as follows:

L – f (l,gm,s)

This formula means that the leadership process is a

function of the leader, the group members and other
situational variables. The model presented below
extends the situational perspective.
 
A FRAMEWORK FOR UNDERSTANDING LEADERSHIP
The model states that leadership
effectiveness can best be understood by
examining its key variables: leader
characteristics and traits, leader behavior and
style, group member characteristics, and the
internal and external environment. The four
sets of variables are interrelated, with some
linkages stronger that others. An example of
a strong link is that leader characteristics and
traits effect leader behavior and styles.
VI. Skill Development in Leadership
Leadership skills are in high demand.
Developing leadership skills is more
complex than developing a structured
skill, yet these skills can be developed by
following a general learning model:
1. Conceptual knowledge and behavioral
guidelines – presents useful information
about leadership.
2. Conceptual informational demonstrated
by examples and brief descriptions of
leaders in action – Much can be learned
by reading about how effective (or
ineffective) leaders operate.
3. Experiental exercises – Provides an
opportunity for practiced and
personalization through cases, role plays
and self-assessment quizzes are included.

4. Feedback on skill utilization, or

performance from others – Implementing
some of the skills outside the classroom
will provide opportunities for feedback.
5. Practice in natural settings – A given skill
has to be practices many times in natural
settings before it becomes integrated
comfortably into a leader’s mode of
operation.