Chapter 5-Leadership

in Organizations
M Abeedur Rahman (Abeed)
Faculty
Department of Business Administration
Sonargaon University
 Leadership in Organizations
Leadership plays a crucial role in the success of any organization. It's the ability to influence, guide, and
motivate others to achieve a common goal. But what exactly constitutes effective leadership in
organizations.

Effective Leadership Practices:

Developing a clear vision and mission: Leaders articulate a compelling vision of the future and the
organization's purpose, inspiring and motivating others.
Communicating effectively: Leaders clearly and consistently communicate goals, expectations, and
changes, ensuring everyone is informed and aligned.
Building trust and relationships: Leaders create a culture of trust by being honest, transparent, and
reliable, fostering strong relationships with team members.
Motivating and empowering others: Leaders inspire and motivate individuals to go beyond their
comfort zones, providing opportunities for growth and development.
Delegating effectively: Leaders empower others by assigning tasks and responsibilities, fostering
ownership and accountability.
Decision-making: Leaders make informed decisions considering all perspectives and potential
consequences.
Adaptability and change management: Leaders navigate change effectively, helping individuals and
teams adjust to new situations.
 Theories of Leadership
Trait Theory: Suggests that certain innate traits, like charisma, intelligence, and
decisiveness, make effective leaders.

Behavioral Theory: Focuses on observable behaviors of leaders, like providing

clear goals, offering feedback, and recognizing achievements.

Contingency Theory: Similar to situational leadership, this theory emphasizes

that the effectiveness of leadership styles depends on specific situations and
follower characteristics.

Transformational Leadership Theory: Explains how leaders inspire and

motivate followers to achieve extraordinary results.
 Formal and Informal Leadership
Formal and informal leadership styles play crucial roles in organizations, each offering distinct advantages and
considerations. Here's a breakdown to help you understand them better:

Formal Leadership: Officially designated leadership positions with clearly defined authority and responsibility. Leaders
usually hold titles like CEO, manager, supervisor, etc.
Source of Power: Stems from the organizational structure and hierarchy, granting formal leaders decision-making
authority and control over resources.
Strengths:
 Clear lines of authority: Ensures efficient decision-making and accountability.
 Stability and consistency: Provides predictable leadership structure and processes.
 Access to resources: Formal leaders have the budget and resources to allocate for projects and initiatives.
Weaknesses:
 Rigidity: Can hinder innovation and adaptability to changing situations.
 Power distance: Can create communication barriers and limit employee engagement.
 Overreliance on hierarchy: May stifle initiative and creativity among lower-level employees.
 Leadership Styles
Types of Leadership:
1. Transformational Leadership: Focuses on inspiring and motivating individuals to exceed
their own expectations and achieve collective goals. Leaders empower followers and
foster a culture of innovation and risk-taking. (Examples: Nelson Mandela, Steve Jobs)

2. Transactional Leadership: Relies on rewards and punishments to motivate followers.

Leaders provide clear expectations and consequences, encouraging efficiency and
adherence to established norms. (Examples: Jack Welch, former CEO of General Electric)

3. Servant Leadership: Prioritizes the needs and well-being of followers before their own.
Leaders empower individuals, share decision-making, and create a supportive
environment. (Examples: Mahatma Gandhi, Mother Teresa)

4. Situational Leadership: Adapts leadership style based on the needs of the situation and
the maturity level of followers. Leaders can switch between directive, supportive,
delegative, and achievement-oriented styles depending on the context. (Examples: Indra
Nooyi, the former CEO of PepsiCo)
 Personal Characteristics of Leaders
Effective leaders come in all shapes and sizes, but they often share certain personal characteristics that contribute to
their success. Here are some key attributes to consider:
Core Characteristics:
1. Integrity: Being honest, ethical, and trustworthy is crucial for building trust and respect from followers.
2. Vision: Leaders have a clear idea of where they want to take their team or organization and can effectively
communicate this vision to inspire others.
3. Passion: They are genuinely enthusiastic about their work and mission, which energizes and motivates those
around them.
4. Communication: Effective leaders articulate ideas clearly, listen actively, and tailor communication to different
audiences.
5. Decision-making: They can gather information, analyze situations, and make sound decisions under pressure.
6. Delegation and empowerment: They trust and empower others to take ownership and responsibility, fostering
individual growth and accountability.
7. Emotional intelligence: Understanding and managing their own emotions and those of others is crucial for
building strong relationships and navigating challenges.
8. Resilience: Leaders can bounce back from setbacks, learn from mistakes, and remain optimistic in difficult
situations.
9. Adaptability: They are flexible and can adjust their approach based on changing circumstances and unexpected
challenges.
 Case Study: Decision Making with Journaling and Affinity
Diagrams
Example 1: Startup Product Selection
Scenario: A small tech startup team is struggling to decide between two potential product ideas. They use
journaling to explore their personal motivations, strengths, and concerns regarding each option. Then,
they create an affinity diagram to organize their ideas based on market demand, technical feasibility, and
financial projections. Using these insights, they make an informed decision about which product to
pursue.
Example 2: Non-Profit Project Prioritization
Scenario: A non-profit organization with limited resources needs to choose which community project to
support. They use journaling to gather input from various stakeholders (staff, volunteers, community
members) about their hopes, fears, and priorities. The team then uses an affinity diagram to categorize
these diverse perspectives and identify areas of alignment. Based on this analysis, they select the project
with the most potential for positive impact and community support.

Use your knowledge and make decisions to help aid making a journal and also affinity
diagrams by organizing information, identifying patterns, and making sense of complex
situations.
The class ends here
Thank you and see you in the next class!