03 - Dmba403 - Business Leadership
03 - Dmba403 - Business Leadership
Figure 3, emphasizes on multiple personal traits or characteristics that are very important to understand,
effective leadership. For example, multinational corporations, top executives mostly connect with the
managers and rarely with employees on some events or functions of the company. To build a strong
relationship with employees, to retain them for long and to understand their needs only senior manager
gets in touch so that employees do not feel that they are not the part of the company. The personal
characteristics of managers help them in building an effective and loyal relationship with their subordinates
so that they can freely share their ideas, opinions, etc. We will discuss this in detail as follows:
Multinational corporations, top executives only connect with the managers mostly and they connect with
employees on some events or functions of the company, but to build a strong relationship with employees,
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to retain them for long and to understand their needs only senior manager gets in touch so that employees
do not feel that they are not the part of the company.
We will discuss this in detail as follows:
A. Shared vision: Shared vision means sharing a common vision, irrespective of individualism. A leader
should share his vision with all his subordinates and team members. A leader should be very clear about
their aim and the path required to achieve this aim. The options and alternatives available for achieving
these aims should also be known to the leader. The same thought should be transferred to the subordinates
as well. This will help the followers follow the leader effectively and contribute to the overall organisational
objective and vision.
B. Honesty: Honesty is a very important trait for a leader. Only if the leader is honest, he/she can expect
the same from the followers. The leader has to demonstrate integrity in order to demand the integrity of
the followers. Honesty is the key to success, because if the leader is honest with the subordinates and eager
to help them, then the subordinates will also look up to the leader and wish to support him/her in the
undertaken ventures. Leaders should not always be strict with their subordinates, because a commanding
and restrictive approach might not encourage the members to be honest.
C. Effective Communication: The most crucial characteristic to be portrayed by the leader is effective
communication skills. Communication is a two-way process that includes a listener and a speaker. If the
speaker or the leader is speaking positively and clearly, then there will be no miscommunication, and the
goals can be achieved easily. Effective communication skills lead to effective motivation and workflow by
sharing the right information at the right time and through the right means.
D. Decision Making: Decision-making means choosing the best alternative and making the right choices.
A leader has to make appropriate choices for the welfare of an organisation. The leader should be able to
make quick, feedback-based, feed-forward based and concurrent decisions. Effective decision-making in
concurrent situations is possible by gaining experience over the years in a job. However, a leader should be
able to make decisions in uncertain conditions as well.
E. Empowering others: The leader's real talent is to create future leaders and push everyone forward to
accomplish their personal goals with the organisational goals. This is possible if a leader empowers his
subordinates. The leader should delegate tasks and empower members from time to time for executing the
delegated job. This will give way to creating new leaders for a better tomorrow. Empowering others means
motivating others to become independent and successful.
2. What is Contingency Theory? Discuss in detail.
Ans: Contingency theory is another approach of leadership. The speculation of contingency theory
emphasizes the leader's personality and the environment, situation in which leader perform functions. The
idea behind this theory is that it focuses on the context of leadership, which suggests however well the
leadership technique followed in a particular situation.
A leader needs to mould his/her techniques as per the circumstances to ensure that he/she gets success
irrespective of any situation. Being a contingent leader requires being adaptable and flexible depending
upon the situation.
There are multiple contingency theories, such as:
• Fiedler Model of Leadership
• Hersey and Blanchard's Situational Theory
• Leader-Member Exchange Theory
• Path-Goal Leadership Theory
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• Leader-Participation Model
• Cognitive Resource Theory
• Life Cycle Theory of Leadership
• Multiple Linkage Model
• Normative Leadership Theory
• Participative Leadership Theories
• Situational Leadership Model
• Strategic Contingencies
• Vroom's Expectancy Theory
As we can see from the above-mentioned point there are multiple theories but in further sections, we will
focus on the Path-Goal Leadership Theory and Leader-Member Exchange Theory. The Path-Goal Theory
defines the characteristics of the followers and the organizational context along with the corresponding
leadership method, which is appropriate according to the specified factors. The leader needs to adapt to
the behaviour that is considered to be best suited for a given work environment and the organisation's
employee's behaviour to achieve his/her goals in the end.
Another important theory in contingency theories are the Leader-Member Exchange Theory. It is also
known by another name, i.e., the Vertical Dyad Linkage Theory. This theory was brought into existence by
George Graen. It helps to understand how a leader establishes a good position among the team members
and how he/she builds and maintains relationships with his/her team members or groups.
According to certain research, it is observed that the contingency theory is also affected by certain
factors at the workplace such as:
• Working environment
• Employee's style of work
• Relationships among employees
• Goals and objectives of the company
• Company's policies
3. Who coined the term Group and what do you mean by Group Dynamics?
Ans: Kurt Lewin is one of the first researchers to suggest that groups are quite dynamic and powerful and
they have the power to influence individuals and communities. He was the one who coined the terminology.
The term ‘group dynamics’ means that changes in a group can affect our actions and reactions within a
group structure. If you are willing to understand a group, it is important to understand their dynamics and
analyse them.
Group dynamics deals with the attitudes and behavioural patterns of a group. It can be used as a means for
problem-solving, teamwork, and to become more innovative and productive as an organization. The
concept of group dynamics will also provide you with the strengths, success factors and measures along
with other professional tools.
Meaning and Definitions of Group Dynamics
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The term ‘group dynamics’ means the study of forces within a group. Since human beings have an innate
desire for belonging to a group, group dynamism is bound to occur. In an organization or in a society, we
can see groups, small or large, working for the well-being.
The social process by which people interact with one another in small groups can be called group dynamism.
A group has certain common objectives & goals. Because of which members are bound together with
certain values and culture.
Importance of Group Dynamism
1. Firstly, a group can influence the way the members think. The members are always influenced by
the interactions of other members in the group. A group with a good leader performs better as
compared to a group with a weak leader.
2. The group can give the effect of synergy, that is, if the group consists of positive thinkers, then its
output is more than double every time.
3. Group dynamism can furthermore give job satisfaction to the members.
4. The group can also infuse the team spirit among the members.
5. Even the attitude, insights & ideas of members depend on group dynamism. For example, negative
thinkers convert to positive thinkers with the help of the facilitator.
6. Also, if the group works as a cohesive group, the cooperation and convergence can result in
maximization of productivity
7. Furthermore, group dynamism can reduce labor unrest. Lastly, it reduces labor turnover due to
emotional attachment among the group members.
Assignment Set – 2
4. What is Motivation? Discuss impact of Motivation on Personality and Organisation.
Ans: Motivation giving your staff the correct combination of direction, course, assets and rewards so they
are encouraged and quickly do work as per your preferences. In this way, a considerable part behind these
challenges can undoubtedly be settled by bestowing appropriate motivation. We generally need to
remember that workers are not motivated exclusively by cash-only, but appreciation at the workplace,
promotion, etc., at their current position is also required.
The traits theory of personality This theory asserts that people exude different types of personalities
based on traits that are inherently in them. Several scholars have made an attempt to explain the working
of this theory. One of them is Gordon Allport, as he claims that these traits are categorized into three
groups namely cardinal, central, and secondary traits (Anderson). Hans Eysenck also proposed another
approach in line with the traits theory by categorizing people according to three scales in the determination
of their personality.
The psychoanalytic theory of personality The theory is attributed to Sigmund Freud. According to
Spence, it asserts that one’s personality is composed of three dimensions namely the id, ego, and super ego.
The id is the selfish part of an individual, and it will always seek to satisfy them even at the expense of
others. The super ego is the most moral and socially sensitive of one’s personality as it seeks to prevent
them from committing evil just because it is wrong. The ego is the mediating dimension between the
aforementioned aspects
Impact of personality on motivation Emotional stability and motivation Personality has been found to
affect the manner in which people are willing to be affected by motivation strategies as proposed and or
implemented by management. More specifically, studies have affirmed that People with emotional stability
and those who rank low on the psychoticism are more willing to be receptive to motivation techniques
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(Jaeggi). On the other hand, people with more aggressive personalities tend to be resistant to management
even on things that are beneficial to them. For instance, when management finds that the staff can be well
motivated by inducing job rotation program, some workers may resist this viewing it as a means to allow
‘outsiders’ to their roles. Conway et al. Argues that most of such workers only appreciate monetary
incentives as the sole strategy for improving their levels of motivation
Impact of personality on organizational behaviour Personality effects of organizational tolerance
Personalities and individual differences also have an effect on the conduct of an entire organization by
dictating the behaviour as commonly adopted by members with regards to cultural tolerance. Barrick
observes that an organization with a homogenous set of personality tends to be resistant to other
personalities, and, therefore less tolerant to them. Additionally, the source argues that an organization with
diversity in their personalities will constantly be in conflict in the short run. Avery opines that this trend
ensues because members have to learn how to co-exist with others. In the long run, members will learn to
tolerate all these personalities, especially if the human resources office is working hard to iron out
differences and make members accept the diversity in personalities.
5. What is the significance of organisational culture? What is the outcome-oriented culture in an
organization?
Ans: Organisational culture focuses on how employees intercept characteristics like structure, autonomy,
reward, conflict and other considerations. In common language, it is also known as corporate culture.
Alternately we can also call it a company’s norms, values, protocols, and accepted standards. This helps
guide the behaviour of people within the organisation. As organisational culture helps in shaping the
environment of the workplace and directs the behaviour of employees. This becomes crucial in
understanding the relationship between these.
Significance of organisational culture: -
Each organisation is recognised by its culture. Whenever people name an organization, the culture attached
to the organisation is immediately recalled. An organization is distinctively different from other
organisations by virtue of its cultural values, beliefs and norms.
i. Organisational culture creates the boundary beyond which no employees are permitted to go. They
automatically observe the organisational standards and norms of behaviour.
ii. An organisation is well recognised by its culture. The culture of an organisation provides its stability.
People prefer to continue with the organisation. Employees, customers, financiers and other related persons
prefer to remain with the organisation.
iii. The social recognition of the organisational culture makes the organisation grow and develop in all
dimensions.
iv. Organisational culture acts as a motivator that guides and controls the employees. Satisfied employees
get more spirit and enthusiasm for performing their respective jobs.
v. The attitude and behaviour of the employees are directed towards the achievement of goals through a
sound culture. Disciplined employees make other employees disciplined and well- behaved.
vi. Culture gives rise to a positive attitude and behaviour which are again an addition to culture. It refers to
the various cycles of a positive behaviour, i.e., culture leads to good behaviour and good behaviour makes
a good culture which is instrumental for better behaviour. This cycle goes on. Both the employees and the
organisation enjoy the culture.
vii. The implicit rules developed under the organisational culture make people development- oriented.
These rules are more effective than explicit rules or written instructions. Conformity of implicit rules make
the employees self-disciplined.
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Outcome-based cultures (OBCs) encourage employees to achieve well-defined outcomes in a way that
works best for them.
Independence is a fundamental working condition for these cultures, but freedom comes with a
considerable amount of responsibility for employees. And even more so for their leaders.
In a culture dedicated to outcomes, leaders' primary responsibility is to define the right outcomes.
But the organization will never reach them -- and this culture will fall apart -- if leaders don't also align the
right talent with the right jobs and focus on engaging the people in those jobs.
Here's the problem: A lot of things that matter can't be measured easily.
Gallup research shows that engagement is a prerequisite for better performance. And performance is
required for outcomes. If leaders want to create the conditions that allow an OBC to flourish, measuring
engagement is a good place to start. The Gallup Q12 employee engagement survey can help.
Function at Your Peak
All workplaces -- OBC or not -- are more productive and profitable, safer, and have less turnover when
workers are engaged. Workers who are not engaged will generally meet minimum requirements at best.
Actively disengaged workers are worse -- they might even sabotage the team and outcomes.
But engaged workers are emotionally invested in helping their company thrive. The Q12 measures the level
of engagement from the workgroup level on up.
6. Discuss Ethical leadership and its dark sides in detail.
Ans: Time and again, we have failed in agreeing on what is ethical and moral. A common definition suggests
Ethics is the study of standards and protocols associated with one’s moral judgment, standards of conduct
and moral philosophy of a specific profession, religion or group. Freud, one of psychiatry's founding
fathers, came to conclusion on Ethics and Morality suggesting following the pleasure principle where every
action is tested against pleasure with the superego playing guardian to morality regarding behavior. Recent
studies into Ethics have academics debate about the core ideology in Ethical decisions and their morality.
It can be simplified as the need of morality for the need of individuals who can maintain respect from every
person and then take actions accordingly.
1. Be the example: As an ethical leader always sets an example before their follower. This is the best way
for them to lead. As we know actions speak louder than words.
2. Good communicators: Ethical leaders are always good communicators. It is part of
their job responsibility to communicate well with their team.
3. Ethics is a priority: For an ethical leader, maintaining ethics is part of their morals. They should also
teach their peers about the same. Some great examples of ethical leadership in the workplace are mentioned
below. Ethical leadership focuses on performing and taking the right decisions, helping others, restricting
unethical or illegal practices at the workplace.
We are taking the example of TATA India, where they have a culture to understand others and help others.
They have a blood bank inside their premises in Jamshedpur. If any employee donates blood in the office,
so employees are allowed to take off that day also they can avail of extra leave within 7 days from the day
they donate blood. This is a kind of ethical leadership; where managers, CEO or any higher authority do
not force their employees to work, do not take off, etc. They follow the ethical culture at the workplace
and give all rights to their employees.
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Linking Ethics and Leadership
In the industrial capitalism era, larger corporations worked with nation-states and their protocols in terms
of ideals, beliefs, morals and ethics. In the modern era, nations do not impose any morals and ethics within
the global-local markets. For every organisation, it is a must that they cater to the diverse needs of local
markets, customers, employees, and society. For instance– let's take the case of the cola giant– Coca Cola
in India. When we take the customer's perspective, they focused on positive media images, taste and
experience as the number one soft drink in India. But the major issue was that they failed to meet the
cultural perspective of things, thus making it less popular than local drinks like Limca or Thums Up.