Chapter 1 – Introduction to Leadership

1.1. Leadership definition

Leadership is a process whereby an individual influences a group of individuals to achieve a
common goal. Breaking this down even more, while there are a variety of leadership definitions
out there, there are specific components that are central to the majority of these definitions.
Leadership:

➢ is a process

➢ involves influence

➢ occurs in a group context (there is a need to have at least one constituent)

➢ involves goal attainment

No matter how you operationalize leadership, these components play some small role in the
definition or theory utilized. Besides to that, the following are either of the definitions of
leadership.
• Leadership is the process of influencing the activities of an organizational group in its efforts
towards goal setting and goal achievement.
• 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.
• Leadership is no more than exercising such an influence upon others that they tend to act in
concert towards achieving a goal which they might not have achieved so readily had they
been left to their own devices.
• Leadership is an influencing process aimed at goal achievement.

These definitions which bring about this agreeable state of affairs are many and varied. At the
most superficial level they are believed to include such factors as voice, stature and appearance,
an impression of omniscience, trustworthiness, sincerity and bravery. At a deeper and rather
more important level, leadership depends upon a proper understanding of the needs and opinions
of those one hopes to lead, and the context in which the leadership occurs.

1.2. Leadership Vs. Management

The terms “leadership” and “management” are seen very differently by diverse people. Some
individuals see these terms as synonyms and frequently use them interchangeably throughout

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phrases and sentences. Others approach them as extreme opposites; so extreme, in fact, that they
would argue that you cannot be a good manager and a good leader at the same time. Still other
people reside somewhere in the middle and realize that while there is a difference between
leadership and management, with the right knowledge an individual can successfully navigate
both from the same position.

Today’s groups, organizations, and teams need both effective leaders and effective managers to
run a successful operation. While some obvious similarities (i.e. they both involve influencing
constituents or employees; authority and power are generally given with both positions) can be
found between leadership and management, there are also some striking differences (i.e.
management is often more task-oriented; leadership is often considered more inspirational and
visionary). Managers do things right, while leaders do the right thing. The leader is prophet,
catalyst, mover-shaker, focused on strategy. The manager is operator, technician and problem-
solver, concerned with the here-and-now of goal attainment. The distinguishing feature here is
orientation to change.

John Kotter contrast between the functions of leaders and managers. The leader establishes
vision and direction, influences others to sign up to that vision, inspires them to overcome
obstacles, and produces positive and sometimes radical change. The manager establishes plans
and budgets, designs and staffs the organization structure, monitors and control performance, and
delivers order and predictability.
Table 1.1 distinctions of management and leadership
Leadership functions Management functions
Creating Establishing direction: vision of the Plans and budgets: decide actions and
an agenda future, develop strategies for change to timetables, allocate resources
achieve goals
Developin Aligning people: communicate vision Organising and staffing: decide
g people and strategy, influence creation of teams structure and allocate staff, develop
which accept validity of goals policies, procedures and monitoring
Execution Motivating and inspiring: energise Controlling & problem solving:
people to overcome obstacles, satisfy monitor results against plan and take
human needs corrective action
Outcomes Produce positive and sometimes Produces order, consistency and
dramatic change predictability

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So how does one distinguish between leadership and management? In table 1.2 below you will
see a direct comparison between leadership and management activities. An individual can be a
great leader, a great manager, or both, but each area requires the mastery of slightly different
skills and competencies.

Table 1. 2 Additional Comparisons of Management and Leadership Competencies.

Management Produces Order & Leadership Produces Change &
Consistency Movement
• Planning and Budgeting • Establishing Direction
• Establishing agendas • Creating a vision
• Setting timetables • Clarifying the big picture
• Allocating resources • Setting strategies

• Organizing and Staffing • Aligning People

• Provide structure • Communicating goals
• Making job placements • Seeking commitment
• Establishing rules and procedures • Building teams and coalitions

• Controlling and Problem Solving • Motivating and Inspiring

• Developing incentives • Inspiring and energize
• Generating creative solutions • Empowering subordinates
• Taking corrective action • Satisfying unmet needs

Managers are appointed and they have legitimate power that allows them to reward or punish
their subordinates. Their ability to influence is founded upon the formal authority inherent in
their position. On the other hand, leaders may either be appointed or emerge from within a
group. They can influence others to perform beyond the actions dictated by formal authority.
Until today there is no valid support that all managers possess leadership ability. Holding of a
managerial position does not make a person leader. A manager will be a leader only when he is
successful in influencing and motivating his subordinates to work enthusiastically to accomplish

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the stated goals. An effective manager may not necessarily be a good leader, and even a strong
leader may be a weak manager.
Managers Leaders
❖ Focus on things ❖ Focus on people
❖ Do things right ❖ Do the right things
❖ Plan ❖ Inspire
❖ Organize ❖ Influence
❖ Direct ❖ Motivate
❖ Control ❖ Build
❖ Follows the rules ❖ Shape entities
NB. Argue yourself which is better for a successful organization? And, assume you are a
manager and criticize a leader and vice versa….

1.3. What makes effective leader?

Leadership is about influencing the behavior of others. One cannot be a leader without followers,
and followers must be willing to obey. To understand why people are influenced by some
individuals and not others, we need to understand the nature of compliance. Power is a useful
concept with which to explain the social process of interpersonal influence. Power is a critical
dimension of leadership, and we can define power in much the same way that we have defined
leadership. Power is the ability of an individual to control or influence others, to get someone
else to do something that they would perhaps not otherwise do. John French and Bertram Raven
identified five main bases of power:

(1) Legitimate power

The power stemming from a position’s placement in the managerial hierarchy and the authority
vested in it. When we accept job, we know we will receive work directions from our immediate
boss and others in the hierarchy. Normally, we accept such directions as legitimate because these
people hold positions of authority. Hence legitimate power relates to a position, rather than a
person in isolation.

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(2) Reward power

It is based on capacity to control and provide rewards valued by others. Most organizations offer
an array of rewards, including pay rises, bonuses, interesting projects, promotion
recommendations, a better office, support for training, assignments with high organizational
visibility, recognition, positive feedback, and time off. The greater the manager’s control over
these rewards, the greater the manager’s reward power.

(3) Coercive power

It depends on the ability to punish others who do not engage in desired behaviors. Forms of
coercion or punishment include criticism, termination, and reprimand, suspension, warning
letters going into the individual’s personal life, negative performance appraisal, demotion and
withheld pay rises. The greater the freedom to punish others, the greater the manager’s coercive
power.

(4) Expert power

It is based on possession of expertise which others value. Managers often have considerable
knowledge, technical skills and experience critical to subordinates’ success. To the extent that
leaders possess expertise and information needed or desired by others they have expert power.

(5) Referent power

It results from being admired, personally identified with, or liked by others. When we admire
people, want to be like them, or feel friendship toward them, we will follow their directions and
show loyalty to them. The more leaders can cultivate the liking, identification and admiration of
others, the greater their referent power.

The British National Health Service, concerned with implementing ambitious government plans
for health care modernization, commissioned Hay Group, a management consultancy, to identify
the qualities required for senior leaders. Based on research involving 150 chief executives and
directors, the NHS Leadership Qualities Framework identifies, in three clusters, the fifteen
qualities that distinguish effective and outstanding leaders as indicated in Table 1.3.

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Table 1.3 Qualities that distinguish effective and outstanding leaders
Personal Qualities Setting direction Delivering the service
Self-belief Seizing the future Leading change through people
Self-awareness Intellectual flexibility Holding to account
Self-management Broad scanning Empowering others
Drive for improvement Political astuteness Effective and strategic influencing
Personal integrity Drive for results Collaborative working

A study carried out by Fortune Magazine on leading American executives revealed eight
qualities that characterize ‘the champions’:
➢ Integrity, maturity and energy: this is the foundation on which everything else is built
➢ Business acumen: understanding the business and a strong profit incentive
➢ People acumen: leading teams, coaching people, cutting losses when necessary
➢ Organizational acumen: engendering trust, sharing information, decisive and incisive
➢ Curiosity, intellectual capacity, global mindset: external focus, hungry for knowledge
➢ Superior judgment
➢ An insatiable appetite for accomplishment and results Powerful motivation to grow and
convert learning into practice.

In general, some common characteristics and behaviors of effective leaders are as follows:

✓ Efficient coaching skills ✓ Long-term focus ✓ Service mentality

✓ Confidence ✓ Maintaining a ✓ Sincerity
✓ Consistency between balance between ✓ Technical or contextual
word and action – individual needs and expertise
“walking the talk” team needs ✓ Trust
✓ Creativity ✓ Awareness of ✓ Willingness to share
✓ Empathic listening skills realistic conditions responsibility
✓ Being visionary ✓ Strong self-esteem ✓ Willingness to share
✓ Inspiring ✓ Sense of priorities credit or recognition

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1.4 Importance of leadership for good governance and development

Leadership is an important function of management which helps to maximize effectiveness and

to achieve organizational goals. The following points justify the importance of leadership in a
concern.
• Initiates action- Leader is a person who starts the work by communicating the policies and
plans to the subordinates from where the work actually starts.
• Motivation- A leader proves to be playing an incentive role in the concern’s working.
He/she motivates the employees with economic and non-economic rewards and thereby gets
the work from the subordinates/followers.
• Providing guidance- A leader has to not only supervise but also play a guiding role for the
subordinates. Guidance here means instructing the subordinates the way they have to
perform their work effectively and efficiently.
• Creating confidence- Confidence is an important factor which can be achieved through
expressing the work efforts to the subordinates, explaining them clearly their role and giving
them guidelines to achieve the goals effectively. It is also important to hear the employees
with regards to their complaints and problems.
• Building morale- Morale denotes willing co-operation of the employees towards their work
and getting them into confidence and winning their trust. A leader can be a morale booster
by achieving full co-operation so that they perform with best of their abilities as they work
to achieve goals.
• Builds work environment- Management is getting things done from people. An efficient
work environment helps in sound and stable growth. Therefore, human relations should be
kept into mind by a leader. She/he should have personal contacts with employees and should
listen to their problems and solve them. She/ He should treat employees on humanitarian
terms.
• Co-ordination- Co-ordination can be achieved through reconciling personal interests with
organizational goals. This synchronization can be achieved through proper and effective co-
ordination which should be primary motive of a leader.
Finally, it can be stated that the challenge of leadership is to be strong, but not rude; be kind, but
not weak; be bold, but not bully; be thoughtful, but not lazy; be humble, but not timid; be proud,
but not arrogant; have humor, but without folly.
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