Business Studies | Unit-8 | Leadership | Class-12

Class-12 Business Studies Unit-8: LEADERSHIP Concept of Leadership:- Answer: Leadership is the art of influencing and inspiring the behavio...

Class-12

Business Studies

Unit-8: LEADERSHIP

Concept of Leadership:-

Answer: Leadership is the art of influencing and inspiring the behavior and activities of others in accordance with requirement. To attain common goals, a leader must have an influence on follower’s conduct. A leader must have a clear vision of the organization's objectives and producers of attaining predefined goals in order to do this. By concentrating organizational objectives, the leader can provide advice to followers. When someone has the ability to influence others and they accept it, they are said to be a leader.

A manager is referred to as a leader in a company. As a leader, you must exert influence over your subordinates' behavior and activities. To do so, he or she must have a clear understanding of the organization's goals and how to achieve them. By prioritizing objectives, he must provide direction and instruction to subordinates.

According to George R. Terry„ "Leader is the activity of influence people to strive willingly for mutual objectives."

A Manager must have leadership quality to stimulate and inspire his subordinates to do works according to his instruction.

1. Describe the Qualities of a Leadership?

Answer: To have an impact on followers, a leader must possess both personal and management skills. To have a significant impact on subordinates' performance and conduct, the boss must possess leadership traits. Generally, leadership qualities may broadly be studied under the following two headings.

• Personal Qualities: - The following are the major of personal qualities of a leader:-
• Physical Fitness: - This quality focuses on the physical out-look of the leader. A good leader must be physically fit. In terms of appearance, he or she should be impressive. Only a healthy individual can devote all of his or her energy and effort to his or her profession. Physical fitness is, in general, a usual and natural requirement of any person, including leader.
• Self-Confidence: - A leader must have confidence for any kind of work what they are doing. They should be aware of the outcomes of decisions and activities carried out in the organization.  5he/he is responsible for guiding and leading the subordinates in the most passionate mariner possible. It is necessary to avoid settling any topic by gathering information and knowledge from others.
• Intelligence: - It is mental quality of the leader. A leader must be capable of dealing confidently with complicated and challenging problems and situations. He or she should be able to study, evaluate, and make confident decisions. When new or complex challenges arise in the organization, he/she should never be perplexed or puzzled. She/he must use logical analysis and study to answer any type of problem.
• Vision and Foresight: - This quality of the leader is a must to achieve the destination i.e. to gain goals. A leader must have knowledge and vision about how to begin the task and attain company goals. To overcome any issues or difficulties in performance, he or she must be able to make the appropriate decision at the right time.
• Sense of Responsibility: - A leader must be a responsible person. 5he/he must feel morally responsible for each and every activity, which is done within his /her supervision. She/he should de dependable so that subordinates trust him/her and perform activities in accordance with his /her guidance.
• Human Character: - A leader must be a man of human character. She/he should possess traits like honesty, loyalty, self -discipline and devotion to organization. This character of leader sets an example among subordinates and they also develop their character by taking leader as a symbolic figure.
• Optimist Outlook: - A leader must always be an optimist in attitude. He or she must possess the ability to take initiative in challenging situations with confidence. He or she must be able to tackle the hardest circumstances with courage and determination. An upbeat boss can inspire confidence in his or her colleagues and ensure that the organization runs smoothly and efficiently.
• Flexible Attitude: - A leader must be flexible or dynamic in attitude. It is well known that social environment is changeable according to time a successful leader has to adjust him/ herself with the changing environment of the society.
• Managerial Qualities: - The following are the major managerial qualities of leader:-
• Technical Knowledge: - A leader should have technical knowledge required for doing jobs. He should be able to guide and supervise followers. Technical knowledge helps in decision making. He should keep up-to-date with latest technical developments.
•  Moderate State of Mind: - This quality emphasizes to maintain patience while taking any decision. Because a leader is a decision maker, he or she must be in a balanced state of mind. It is critical to make sensible decisions that are free of bias and emotions. When making a decision, a leader must be patient.
• Organizing Ability: - a leader must have organizing ability. She/he must have ability to make appropriate division of works among subordinates. Besides, she/he should have ability to arrange physical facilities and, modern technology on the basis of requirement. 5/he has to establish well defined productive relation among all the subordinates.
• Motivation and Communication Skills: - A successful leader must possess motivating skill. She/he must be able to persuade subordinates to put up utmost effort. To accomplish this, she/he must be aware of subordinates' wants and requirements, as well as the application of relevant motivational techniques at the proper moment.
• Human Relation Expert: - A successful leader is one who is expert in human relation. 5he/he must interact with a variety of internal and external stakeholders, including customers, visitors, subordinates, suppliers and shareholders. Good human relationships are not only beneficial for gaining cooperation from subordinates, but they also serve as long-term assets for the organization.
• Wider Perspective: - A leader must have wider vision. She/he must have ability to carry-out organizational performance in accordance of plan and system. She/he has to measure whether group performance is going in accordance with organizational setting or not. She/he has to decide the matters only by considering organizational objectives.
• Ability of Judgment: - A successful leader must have ability to maintain impartiality and judgment. As a top managerial authority, she/he has to take various types of decision in different situation. She/he has to decide the matters only by considering organizational objectives.
• Knowledge of Psychology: - As a father figure of the organization, a manager has to keep touch with psychological knowledge. Empathy, sociability, self-awareness and knowledge of subordinates are all desirable qualities. She/he must be able to mingle with subordinates and act as though he or she is one of them.

2. Describe the Function of Managerial Leader?

Answer: Asa leader, manager has to perform various types of function especially of executive and creative nature. The following are the major roles that a managerial leader plays in the organization:-

• Goal determination
• job focus
• People focus
• Coordination
• Communication
• Motivation
• Representation
• Environmental adaptation
• Goal Determination: - Goal provide direction to planned budget. Managerial leader sets goals for the organization. He selects the courses of action to achieve goals. Goals are desired result. They are SMART— specific, measurable, achievable, realistic and time-bound.
• Job Focus: - Managerial leader gets the jobs done through subordinates. He is an implementer. Jobs are organized into departments. They are assigned to positions and people Performance standards are set for jobs.
• People Focus: - Managerial leader is people- focused. He provides guidance and inspiration to others. For his subordinates, he is not only a boss, but also a "friend, philosopher, and guide. “He cultivates positive interpersonal relationships. He instills a sense of pride in his employees. The level of job happiness is measured by morale. Job satisfaction is defined as having a positive attitude about one's work.
• Coordination: - Managerial leader achieves coordination. He creates unity and harmony in efforts of subordinates. He integrates the goals of organization and employees. He resolves conflicts. He takes care of grievances. He achieves coordination in use of resources.
• Communication: - Managerial leader effectively communicates with subordinates. Orders and directions are given clearly. Information flow is both downward and upward. Open communication is promoted.
• Motivation: - Managerial leader motivates subordinates for higher performance. He energizes them to work willingly. He facilitates team work for higher productivity. He performs the role of father figure for subordinates. He provides rewards and punishment to workers.
•  Representation: - Managerial leader represents the organization to outside world. He negotiates with employees and others to reach agreements. He performs the role of mediator. He is a scapegoat when things go wrong,
•  Environmental Adaptation: - Managerial leader adapts to the changing environment. He takes risks. He is innovative. He facilitates change management. He overcomes resistance to change. He settles disputes among worker.
• Climate Creation: - Managerial leader creates better organizational climate. Through a performance-based incentive and punishment system, he enhances the working environment. He advocates for job autonomy. Employees have access to training opportunities. Employees are encouraged to have faith and trust in them.

3. Describe the Different Styles of Leadership?

Answer: Leadership is the process of influencing the subordinates so that they can perform their works willingly and enthusiastically towards common goals. The widely accepted leadership styles are explained as follows:-

• Autocratic Leadership: - In autocratic leadership, a leader believes in sole power and accepts all decisions from him/her without consultation with subordinates. As a leader, the manager wields unlimited power, has complete authority, and is responsible for the entire organization. She/he never listens to or follows the advice of his/her subordinates. 5he/he is the one who fixes all of the organization's problems. Through subordinates, he also determines what to do and how to accomplish the work. The Following are the main characteristics of autocratic rule:-
• Leader makes all the decisions himself without consulting to subordinates.
• Leader is job- focused. Production is emphasized.
• There is no delegation of authority to subordinates.
• There is one way downward communication from leader to followers.
• Information is controlled by the leader. There is close supervision.
• Advantages of Autocratic Leadership: - Some of the common advantages of autocratic leadership are as follows:-
• Provide Strong Motivation: - In this leadership, leader motivates the subordinates according to his/her will and requirement. She/he motivates subordinates by using his/her authority and strength. Subordinates cannot object to his or her decision and must carry out their responsibilities in accordance with the leader's instructions.
• Quick Decision: - Leader doesn't take any suggestion and guidance form subordinates. He or she makes decisions based on his or her knowledge, experience, and logic. As a result, any decision is made swiftly. In some circumstances, making a swift choice and putting it into action can lead to corporate success.
• Frequent Implementation: - In autocratic leadership, subordinates have to perform their works according to instruction from leader. Manager can implement his/her decision frequently as subordinates cannot ignore his/her instruction. Frequent implementation of plans and polices is a must to gain organizational objectives.
• Strict Discipline: - Discipline is a must to develop system and working efficiency of the organization. In autocratic leadership, there is the provision of strict discipline among the subordinates. Everyone is bound to follow rules and regulation of the organization.
• Disadvantages of Autocratic Leadership:- The following are the common disadvantage of autocratic leadership:-
• Negative Motivation Styles: - Autocratic leadership gives emphasis on negative motivation like demotion penalties minimize remuneration etc. The leader never considers remuneration or benefits for the workforce. She/he never considers suggestions and advice from subordinates when making decisions.
•  Decrease Organizational Efficiency: - In such leadership, employees perform their works under pressure. They are not self-sufficient in completing specified tasks based on their knowledge and ideas. They must work in line with the leader's instructions, resulting in a drop in the organization's operating efficiency.
• Lack of Creativity: - As the employees cannot perform their work independently, they are unable to instruction new knowledge; idea and process of work. They have to work on the basis of plans, polices, and instruction of the leader. Therefore, the concept of creativity is not possible in autocratic leadership.
• Instability: - Here, employees have to perform their work under pressure and so they can't perform their work for a long duration of time. In other words, they are concerned about their job security and want to level the organization as much as possible. This is the highest amount of labor turnover. As a result, organizational performance becomes unstable.
• Democratic Leadership: - In democratic leadership, leader believes in decentralization of power and invites subordinates in decision making process. The formulation of plans and policies is the responsibility of higher management, while their implementation is the responsibility of subordinates. For the creation of plans and policies, top level management solicits recommendations, direction, and information from subordinates. The following are some of the most important characteristics of democratic leadership:
• Leader emphasizes participation in decision making leader.
• Leader gives performance- based reward and punishment.
• Influence flows both ways from leader to follower and follower to leader.
• Authority is delegated to subordinates. They can make decisions.
• Leader protects the interest of followers.
•  Advantage of Democratic Leadership: - The following are the main advantage of democratic leadership:-
• Better Decision: - It is said “more heads are better than one-head if one head is not best”. In democratic leadership, management takes decision by taking suggestion, guidance and information from subordinates. Management makes decisions based on the consequences of their actions. In democratic leadership, better decisions can be made since decisions are made after detailed discussion.
• Better Satisfaction of Employees: - In democratic leadership, there is the provision of two way communication Subordinates play a significant role in the decision-making process as well. They are, to some measure, self-sufficient in their profession. The management gives all necessary amenities and conducts himself in a nice manner. It tends to increase employee satisfaction.
• Increase Productivity: - In democratic leadership, all the employees working in the organization can gain knowledge about the internal matters. A two-way communication system is available. Employees can seek advice and suggestions from supervisors at any time. The manager constantly motivates and inspires employees to achieve higher levels of performance. It contributes to an increase in productivity.
• Promotion of Mutual Co-operation: - Democratic leadership always emphasizes to maintain mutual cooperation among all the authority of the organization. For this purpose, manager supervision department according to time and situation and provides guidance to maintain close relation to each other.
• Disadvantage of Democratic Leadership: - Some disadvantage of democratic leadership are as follows:-
• Delay in Decision Making: - One of the limitations of democratic leadership is delay in decision making. Before making a decision, the management must consult with other relevant authorities, such as subordinates, technicians, and seniors. As a result, it will take extra time to reach a final conclusion. In some cases, a delay in making a choice can result in a business loss.
• Inefficient and Incompetent Employees: - Some freedom or independency is given to employees to do their works in democratic leadership. Only instruction and guidance are given by the leader. As a result, if employees are inefficient and inept, they are more likely to make a mistake, causing a slew of issues with organizational performance. Only efficient and capable staffs are suitable for democratic leadership.
• Absence of Discipline: - There is more possibility of arising disciplinary problem in democratic leadership. Employees have been granted some authority and independence in their work here. In some situations, it's necessary to take suggestions from subordinates into account. If the boss is ineffective and unable, there will be an issue with subordinates becoming irresponsible. This could lead to a problem of employee irresponsibility.
• Laissez Fairs of Free Rein Leadership: - In free rein leadership, a leader grants authority and responsibility to a group. A leader's job is to give counsel and instruction to subordinates when they ask for it. The position of the leader is merely that of a facilitator. The notion of management by exception encourages subordinates to plan, control, assess, and make decisions for themselves. The following are the main features of laissez faire leadership:
• The leader does not hold power and responsibility.
• Responsibility is given to the group members.
• Leader only plays the role of coordinates and facilitator.
• Subordinates implement their decisions.