MODULE 03

PROGRAM: MBA SEMESTER: I

ORGANIZATIONAL BEHAVIOR
COURSE NAME
COURSE CODE: 1T4 COURSE TYPE: CORE
COURSE: NAME OF THE FACULTY:DR. DHANASHREE
ORGANIZATIONAL KATEKHAYE
BEHAVIOR

CO3: The student will be able to distinguish between the various

theories of motivation and their application in organizations
and also be able to apply these
theories to practical problems in organizations. They will
also be able to distinguish between a number of different
leadership theories & styles and contribute
to the effective performance of a team as the team leader or a
group member.

Module 3: Motivation– Concept, types of motivation and Theories-Maslow, Herzberg,Mc

Gregor.

Leadership- Concept, Leadership styles and Theories- Trait Theory, Path Goal Theory,
Blake Mouton-Managerial Grid

Books:
Organisational Behavior – StephenRobbins; Timothy Judge, Seema Sanghi;Pearson Prentice
Hall Publication, 13th Edition, ISBN 978-81-317-2121-6, Chapter 6,7,12&13

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 1. Motivation

Motivation in one form or the other is always present at the root of all human activities, as
human behaviour in one form or the other is guided by motives or drives. In every sphere of
life and at various phases of activities motivation plays a vital role. So our success and
achievement in life depend on motivation.

Motivation is said to be the heart of learning' sine-qua-non of learning', 'golden road to

learning' and potent factor in learning, as all learning is motivated learning. Learning cannot
be successful, effective or efficient without persistent, purposeful and selective effort.

1.2 Meaning of Motivation

Motivation is derived from the word 'movere' which means to move. It is the process of
arousing action, sustaining activity in progress, regulating and directing pattern of activity
through energy transformations within the tissues of the organism. It is an art of inculcating
and stimulating interest in studies and in other such activities. Some of the aspects of
motivation are stressed by the terms: incentive, intention, impulse, desire, drive,
determination, need, urge, wish, want, will, longing appetite, attitude, bias, prejudice, set,
readiness, purpose and the like.

1.3 Definitions of Motivation

Some of the well known definitions of motivation are given below:

(1) According to Thompson, "Motivation covers any and every factor of the spring of human
action from the beginning to the end i.e., attitudes, bias, urge, impulse, cravings, incentive,
desire, wish, interest, will, intention, longing, aim."

(2) According to Guilford, "Motivation is an internal factor or condition that tends to initiate
and sustain activity."

(3) According to Johnson, "Motivation is the influence of general pattern of activities

indicating and directing behaviour of the organism.

(4) According to McDonald, "Motivation is an energy change within the person characterised
by effective arousal and anticipatory goal reactions.

(5) Definition by Skinner, "Motivation in school learning involves arousing, persisting,

sustaining and directing desirable behaviour."
Nature of Motivation
Motivation is a psychological phenomenon that occurs within a person. A person lacks some
needs, which makes him satisfied that he works more. The need to satisfy the ego motivates a
person to do better in general.

The following conclusions can be drawn from the definitions given earlier: –

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  Motivation is an inner feeling that makes a person excited to do more work.
 A person’s feelings or desires motivate him to perform a particular task.
 A person has unsatisfying needs that impair his balance.
 A person proceeds to fulfill his dissatisfied needs by conditioning his energies.
 A person has passive energies that are activated by channeling in actions.
 What are the Types of Motivation?
 When a manager wants to take more work from his subordinates, he has to be
motivated to improve his performance. They will either be offered incentives for more
work, or they may be in place of rewards, better reports, recognition, etc., or they may
instill fear in them or use force to achieve the desired task.

1.3.Types of Motivation

The following are the types of motivation: –

1. Positive Motivation: –

Positive motivation is based on reward. Workers are offered incentives to achieve desired
goals. Incentives may be in the form of higher salaries, promotions, recognition of work, etc.
Employees are offered incentives and seek to improve their performance voluntarily.
According to Peter Drucker, genuine and positive motivators are responsible for placement,
high levels of performance, sufficient information for self-control, and worker involvement
as a responsible citizen in the plant community. Positive motivation comes from the support
of employees and they feel happy.

2. Negative Motivation: –

Negative or fear is based on motivation or fear. Fear causes employees to act a certain way.
In case, they do not act accordingly then they can be punished with demotion or take-off.
Fear acts as a pushing mechanism. Employees do not cooperate voluntarily; instead they want
to avoid punishment.
Although employees work to a level where punishment is avoided, this type of motivation
leads to anger and frustration. This type of motivation usually becomes the cause of industrial
unrest. Despite the drawbacks of negative motivation, this method is commonly used to
achieve desired results. There can hardly be any management who has not used negative
motivation at one time or another.

1.4. Theories of motivation

1. Maslow’s Need Hierarchy Theory

It is probably safe to say that the most famous theory of motivation is Maslow’s requirement
hierarchy theory. Maslow’s theory is based on human needs. Primarily based on their clinical
experience, they categorized all human needs from lower to higher order.

In short, he believed that once the level of need given is satisfied, it does not work to
motivate man. Then, the next higher level need to be activated to motivate the man. Maslow
identified five levels in its need hierarchy.

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These are now discussed one by one below: –

1. Physiological Needs: –

These needs are basic to human life and, therefore, include food, clothing, shelter, air, water
and life requirements. These are related to the existence and maintenance of human life.
They have a tremendous impact on human behavior. These needs must be met at least
partially before high levels of needs emerge. Once physical needs are met, they do not
motivate the man.

2. Safety Needs: –

After satisfying the physical requirements, the next needs to be felt are called the need for
safety and security. These require expression in desires such as economic security and
protection from material threats.
To meet these needs more money is required and hence, the person is motivated to do more
work. Like physical needs, they become inactive after being satisfied.

3. Social Needs: –
Man is a social animal. Therefore, he is interested in social interaction, companionship,

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belonging, etc.
It is because of this socialization and belonging that individuals like to work in groups and
especially older people go to work.

4. Esteem Needs: –

These refer to self-esteem and self-respect. They include requirements that indicate
confidence, achievement, ability, knowledge, and independence.
Meeting the requirements of respect creates confidence, strength and the ability to be useful
in the organization. However, inability to meet these needs creates feelings of inferiority,
weakness and helplessness.

5. Self-Actualization Needs: –

This level represents the culmination of all lower, intermediate and higher needs of humans.
In other words, the last step under the needs hierarchy model is self-realization. It refers to
fulfillment.
The term self-realization was coined by Kurt Goldstein and it means that what is probably
good becomes real. In fact, self-realization is the motivation to change one’s perception of
oneself in reality.

Criticism of this theory: –

 The needs may or may not follow a certain hierarchical order. So to say, needs can be
overlapping in the hierarchy. For example, even if the need for security is not
satisfied, social need can emerge.
 The requirement priority model may not be applicable to all locations at all times.
 Research suggests that human behavior at any given time is guided by a multiplicity
of behaviors. Therefore, Maslow’s proposal that one satisfied at a time also has
questionable validity.
 In the case of some people, the level of motivation may be permanently reduced. For
example, a person suffering from chronic unemployment can remain satisfied for the
rest of his life, if only he can get enough food.
 Despite this, Maslow’s theory of hierarchy has received widespread recognition,
especially among practicing managers.

2. Herzberg’s Motivation Hygiene Theory: –

Psychologist Friedrich Herzberg carried on Maslow’s work and introduced a new motivation
theory known as Herzberg’s Motivation Hygiene (Two-Factor) theory. He conducted a
widely reported motivational study on 200 accountants and engineers employed by firms in
and around western Pennsylvania.

He asked these people to describe two important events in their jobs: –

When did you feel good about your job and

When did you feel exceptionally bad about your job? They used the critical event method of
obtaining data.

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When analyzed, responses were found to be quite interesting and quite consistent.
Respondents when they felt good about their jobs were significantly different from the
answers given when they felt bad. Reported good feelings are usually associated with job
satisfaction, while bad feelings accompany job dissatisfaction.

Herzberg labeled the job-satisfying motivators, and he called the job unsatisfactory with
hygiene or maintenance factors. Taken together, the motivators and hygiene factors are
known as Herzberg’s two-factor theory of motivation.

According to Herzberg, dissatisfaction is not the opposite of satisfaction. The underlying

reason, they say, is that removing dissatisfied characteristics from a job does not necessarily
make the job satisfactory. He believes in the existence of a double continuum.

According to Herzberg, today’s motivators are the hygiene of tomorrow because the latter
influences the behavior of individuals when they receive them. Accordingly, one hygiene
may be the motivator of another.

Herzberg’s model is labeled with the following criticism: –

 When things go well, people usually start taking credit for it themselves. They blame
failure on the external environment.
 The theory basically explains job satisfaction, not motivation.
 Even job satisfaction is not measured on an aggregate basis. It is unlikely that a
person may dislike part of their job, yet they consider the work acceptable.

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  This theory ignores situational variables to motivate the individual.
 Due to its ubiquitous nature, pay usually appears as a motivator as well as clean.

 Despite criticism, Herzberg’s ‘two-factor motivation theory’ has been widely read and
some managers seem ineligible with his recommendations. The main use of their
recommendations is in the planning and control of the work of employees.

3. McGregor’s Participation Theory: (X and Y theory)

Douglas McGregor formulated two different views of humans based on worker’s
participation. The first basically negative, the label of Theory X, and the second basically
positive, the enabling of Theory Y.

Theory X is based on the following assumptions: –

People are indolent by nature. That is, they like to do as little work as possible.
People lack ambition, dislike responsibility, and prefer to be guided by others.
People are naturally self-centered and indifferent to organizational needs and goals.
People are usually naive and not very sharp and bright.
On the contrary, theory Y assumes that: –

They want to assume responsibility.

They want their organization to succeed.
People are able to direct their own behavior.
They require achievement.

4. Urwick’s Theory Z
Following the propositions of theories X and Y by McGregor, three theorists Urvik,
Rangnekar, and Auchi accepted the third theory as the Z theory.

The two propositions in Urwicks’s theory are that: –

Everyone should know the organizational goals properly and the amount of contribution to
these goals through their efforts.
Everyone should also know that the relationship of organizational goals is positively
satisfying their needs.
In Urwik’s view, both people above are willing to behave positively to meet both
organizational and personal goals.

However, Ouchi’s Theory Z has attracted a lot of attention from management practitioners as
well as researchers. It should be noted that Z does not stand for anything, only the last
alphabet in the English language.

Theory Z is based on the following points: –

Strong bond between organization and employees

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  Employee participation and participation
 No formal organization structure
 Human Resource Development
 Ouchi’s Theory Z represents the adoption of Japanese management practices (group
decision making, social cohesion, job security, overall concern for employees, etc.) by
American companies. In India, Maruti-Suzuki, Hero-Honda etc. apply the post-up of
Principle Z.

2.LEADERSHIP

2.1 Meaning:
Leadership is an important element of the directing function of management. Wherever, there
is an organized group of people working towards a common goal, some type of leadership
becomes essential. “The power of leadership is the power of integrating. The leader
stimulates what is best in us he unites and concentrates what we feel only gropingly and
shatteringly. He is a person who gives form to the uncoarctate energy in every man. The
person who influences me most is not he who does great Deeds, but he who makes me feel
that I can do great deeds.” Marry Parker Follet.

Leadership is the ability to build up confidence and zeal among people and to create an urge
in them to be led. To be a successful leader, a manager must possess the qualities of foresight,
drive, initiative, self-confidence and personal integrity. Different situations may demand
different types of leadership.

2.2 Definitions:
Leadership has been defined in various ways. Stogdill has rightly remarked that there are
almost as many definitions of leadership as there are people who have tried to define it.

The definitions given by some famous authors and management experts are given below:

1. Koontz and O’Donnell, Leadership is the ability of a manager to induce subordinates to

work with confidence and zeal.

2. Dubin, R.Leadership is the exercise of authority and making of decisions.

3. Allford and Beaty, Leadership is the ability to secure desirable actions from a group of
followers voluntarily, without the use of coercion.

4. George R. Terry, Leadership is the activity of influencing people to strive willingly for
group objectives.

5. Hemphill, J.K., Leadership is the initiation of acts which result in a consistent pattern of
group interaction directed towards the solution of a mutual problem.

6. Jame J.Cribbin, Leadership is a process of influence on a group in a particular situation at a

given point of time, and in a specific set of circumstances that stimulates people to strive

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willingly to attain organisational objectives and satisfaction with the type of leadership
provided.

7. Peter Drucker, Leadership is not making friends and influencing people, i.e., salesmanship
it is the lifting of man’s visions to higher sights, the raising of man’s personality beyond its
normal limitations.

In the various definitions of leadership the emphasis is on the capacity of an individual to

influence and direct group effort towards the achievement of organizational goals. Thus, ‘ we
can say that leadership is the practice of influence that stimulates subordinates or followers to
do their best towards the achievement of desired goals.

2.3 Nature and Characteristics of Leadership:

An analysis of the definitions cited above reveals the following important characteristics of
leadership:

1. Leadership is a personal quality.

2. It exists only with followers. If there are no followers, there is no leadership?

3. It is the willingness of people to follow that makes person a leader.

4. Leadership is a process of influence. A leader must be able to influence the behaviour,

attitude and beliefs of his subordinates.

5. It exists only for the realization of common goals.

6. It involves readiness to accept complete responsibility in all situations.

7. Leadership is the function of stimulating the followers to strive willingly to attain

organizational objectives.

8. Leadership styles do change under different circumstances.

9. Leadership is neither bossism nor synonymous with; management.

2.4 Formal and informal Leaders:

From the view point of official recognition from top management, leaders may be classified
as formal and informal leaders. A formal leader is one who is formally appointed or elected
to direct and control the activities of the subordinates. He is a person created by the formal
structure, enjoys organizational authority and is accountable to those who have elected him in
a formal way. The formal leader has a two-fold responsibility. On the one hand, he has to
fulfill the demands of the organization, while on the other he is also supposed to help, guide
and direct his subordinates in satisfying their needs and aspirations.

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Informal leaders are not formally recognized. They derive authority from the people who are
under their influence. In any organization we can always find some persons who command
respect and who are approached to help, guide and protect the informal leaders have only one
task to perform, i.e., to help their followers in achieving their individual and group goals.
Informal leaders are created to satisfy those needs which are not satisfied by the formal
leaders. An organization can make effective use of informal leaders to strengthen the formal
leadership.

2.5 Leadership Functions:

Following are the important functions of a leader:

1. Setting Goals:
A leader is expected to perform creative function of laying out goals and policies to persuade
the subordinates to work with zeal and confidence.

2. Organizing:
The second function of a leader is to create and shape the organization on scientific lines by
assigning roles appropriate to individual abilities with the view to make its various
components to operate sensitively towards the achievement of enterprise goals.

3. Initiating Action:
The next function of a leader is to take the initiative in all matters of interest to the group. He
should not depend upon others for decision and judgment. He should float new ideas and his
decisions should reflect original thinking.

4. Co-Ordination:
A leader has to reconcile the interests of the individual members of the group with that of the
organization. He has to ensure voluntary co-operation from the group in realizing the
common objectives.

5. Direction and Motivation:

It is the primary function of a leader to guide and direct his group and motivate people to do
their best in the achievement of desired goals, he should build up confidence and zeal in the
work group.

6. Link between Management and Workers:

A leader works as a necessary link between the management and the workers. He interprets
the policies and programmes of the management to his subordinates and represents the
subordinates’ interests before the management. He can prove effective only when he can act
as the true guardian of the interests of his subordinates.

7.Qualities of a Good Leader:

A successful leader secures desired behaviour from his followers. It depends upon the quality
of leadership he is able to provide. A leader to be effective must possess certain basic
qualities. A number of authors have mentioned different qualities which a person should
possess to be a good leader.

Some of the qualities of a good leader are as follows:

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1. Good personality.

2. Emotional stability.

3. Sound education and professional competence.

4. Initiatives and creative thinking.

5. Sense of purpose and responsibility.

6. Ability to guide and teach.

7. Good understanding and sound judgment.

8. Communicating skill.

9. Sociable.

10. Objective and flexible approach.

11. Honesty and integrity of character.

12. Self confidence, diligence and industry.

13. Courage to accept responsibility

2.6 Leadership Styles:

1.Autocratic Leadership:

In this style, the leader makes decisions unilaterally and retains significant control over the
team.
The leader does not consult or seek input from subordinates and expects strict compliance
with their directives.
Autocratic leadership is effective in situations requiring quick decisions or when dealing with
inexperienced team members.
Autocratic leadership can be defined as a leadership style where an individual takes control of
decision-making and manages the subordinates with little or no input. Autocratic Leaders
takes decisions based on their own beliefs, ethics, and moral values. They do not seek advice
from others and go by their knowledge and experience.In simple words, All dictators are
autocratic leaders; but vice versa might not be true all the time.The autocratic Leadership

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style is generally used in the modern world to take control and push the team forward and not
for misuse.

Characteristics of an Autocratic Leader

Many autocratic leaders who follow the autocratic leadership style are generally considered
dominating or bossy in most situations. This control style can be beneficial in some situations
and might fail in other situations. Before we discuss the pros and cons of autocratic
leadership, let us take a look at the characteristics of an autocratic leader:

Confident

The world will mostly follow a confident leader’s ideas and actions. Leaders need to be
confident and believe in themselves, and it is a very desirable attitude when showcased
correctly. Also, autocratic leaders sometimes tend to get overconfident and with no room for
discussions and ideas, which will have a negative effect on the subordinates/team members.
This might hamper the productivity of the individuals and affect the culture negatively, which
could lead to the downfall of an organization.

Structured

Autocratic leaders are generally structured in their approach to any task. The working
environment is highly regimented to the point of rigidity, and this leadership style helps in
completing tasks quickly. On the contrary, the work environment can be overly strict in an
authoritarian workplace. It might not allow team members to learn since they are scared to
make mistakes as their performance is constantly monitored. Fear is not the best form of
motivation to learn for all individuals.

Decisive

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This is one of the key features of autocratic leadership as the decision-making is quick since
the leader himself takes the final call. Quick decision making is of great importance,
especially during crisis situations.

For example, when the world was suddenly hit with the COVID-19 pandemic, every
organization needed leaders who would be quick and take decisions considering risks; rather
than being dependable on someone else.

Taking the right decisions considering calculated risk makes the workplace a better place.

Very Clear

We already know who makes the final decision in authoritative leadership, whether on a vital
business decision or how the organization operates. This leadership style accurately defines
the roles and responsibilities of individuals’ work processes to ensure things run smoothly
and achieve maximum efficiency.

However, not all individuals who work well in such an environment restrict creativity and
involvement and feel left out. If the ideas are not valued, the individual might not stay longer
in an organization, leading to high attrition rates, affecting the team and productivity.

Responsible

Since autocratic leaders have a complete hold on decision-making, they are responsible for
success and failure. The leaders will first face the consequences of their actions in any
scenario. A responsible leader marks a good impression on his subordinates and establishes a
bond of trust.

However, some team members might not get the credit where it is due on specific scenarios,
and it depends on the leader to be responsible and hold their group together.

Fewer discussions

As we already discussed, the autocratic leader makes most of the decisions individually and
does not give much room for feedback/discussions. Although it increases the decision-
making speed, it affects team morale negatively as often team members will feel left out,
especially on critical decisions.

Autocratic Leadership Advantages and Disadvantages

Autocratic leadership is also known as authoritarian leadership and has its own set of pros
and cons. Here are a few of them:

Advantages of Autocratic Leadership

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Fast decision making

In Autocratic Leadership, there are fewer levels of hierarchy and administration, due to which
there are fewer stakeholders that must be kept informed of each decision. In addition, there is
less feedback from various levels of management that must be analyzed. Since there is only
one person(autocratic leader) in charge of everything, the decision making process is fast and
helps achieve the goals quickly.

Improves productivity and efficiency

Quicker decision-making and information-sharing from an autocratic leader will boost the
productivity of any team. Since the roles of all the employees are precise, and there is less
waiting time for approvals, actions are quickly taken by the subordinates/team members,
which has a significant positive impact on their performance.

Structured and disciplined approach

In autocratic leadership, everything is structured and properly defined. The processes

involved in work and discipline in work standards are clearly defined, ensuring the
organization and team move forward together.

Clear Communication

“Communication is the lifeline of any relationship” – Elizabeth Bourgeret

The systematic process of conveying information from one person to another is known as
communication. This is very important in any leadership style as it is the difference between
confusion and clarity. If the communication is not clear, team members might not be
actionable to their best and might hamper efficiency. Autocratic leadership constantly
supports one-way communication, and the leader assigns specified duties and work patterns
to the employees. Furthermore, the instructions will be delivered directly to the personnel,
and it is one of the most significant advantages of autocratic leadership.

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Control

A leader with good leadership characteristics has more decision-making power. They can
keep a careful eye on what others are doing and ensure workplace conformity. This will
ensure that the organization meets its goals and focuses on their tasks.

Helps in crisis management

Autocratic leadership is an excellent leadership style when dealing with crisis situations. The
leader is in complete charge of the situation and is focused on problem-solving, facing all the
challenges, and navigating hierarchies.

Disadvantages of Autocratic Leadership

Micromanagement

Autocratic leaders are responsible for success or failure when they take the lead on any
project, and there is a lot at stake for them. Hence, they supervise every small task in any
work. When done too much to avoid mistakes, this might make it very difficult for employees
to execute their work. This will hamper productivity and affect the work culture over a period
of time.

Lack of creativity

As they say, drops of water make an ocean. A team can generate several ideas as compared to
a single person. This gives more room for discussion, feedback, and improvement on
processes, with an opportunity for everyone to be creative. Innovation and creativity will help
businesses grow faster in the long run.

Dependable system

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Since the leader is more authoritative and takes the final call, individuals might struggle in
the leader’s absence and are dependent on the autocratic leader. This does not help the
individuals grow and restricts the growth of the team and the organization.

Discourages ideas and inputs

In this type of leadership, you will see fewer meetings and discussions on processes and work
implementation, which gives little room to discuss new ideas and inputs. Since the autocratic
leader makes the final decisions, he/she might reject ideas basis his personal preference,
which discourages team members from giving new creative ideas.

Might affect Work Culture negatively

If the autocratic leader in charge strictly follows ethics and morals without breaking the rules,
it creates a very positive culture and work environment. If the vice-versa happens,
organisations will have to deal with high attrition rates and a mental breakdown for
employees/team members.

Less room for employee growth

As discussed before, there is less hold on decision making and no room for idea discussion.
The feedback consideration is also less for any processes/projects. Since the leader will have
a complete hold, team members might not get a chance to improve their soft skills, essential
for individuals.

Autocratic Leadership Examples

Several famous leaders follow the autocratic style of leadership. Here are a few examples of
autocratic leaders:

1.Donald Trump

Donald Trump, the former president of USA is one of the popular leaders known for his
autocratic leadership style. Trump takes the responsibility of his conglomerate company on
his shoulders, taking all the critical decisions. He even fired employees who were not
performing well and gave a raise and other incentives to those performing well, which seems
strict but fair.

This worked well for his organization but not so much during his tenure as the president of
USA. Different roles require different leadership skills to be used, and flexibility and
adaptability play a significant role in any leadership role.

2.Bill Gates

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During his tenure as the CEO of Microsoft, Bill Gates followed the authoritative leadership
but with room for participation from his subordinates and peers, which was a huge success.
He took the major decisions but gave room for feedback and inputs in critical areas, which
shows an example of How one can leverage autocratic leadership!

3.Napoleon Bonaparte

Napolean Bonaparte was one of the craziest autocratic leaders you will ever encounter. In a
completely different approach, the French revolutionary leader shared his ideas with no one
in his vast army. He expanded his army to more than 70 million in a few decades, keeping
control over everything.

2.Democratic Leadership:

In democratic leadership, the leader involves subordinates in decision-making processes,

seeking their input and feedback.
This style fosters a sense of ownership, empowerment, and participation among team
members.
It is particularly useful when creativity, diverse perspectives, and consensus-building are
essential.

he idea of democratic leadership clearly comes from the early concept of democracy, which
in short, means government by the people. In a democracy, some people fill the role of
leaders and some the role of followers, but everybody has equal say in the decision-making
process.

Daniel Goleman expanded on Lewin’s ideas of leadership with his six leadership styles,
adding two important elements to the definition of democratic leadership: empowerment and
consensus-seeking. Team members are empowered to participate fully in group decision-
making and the process is geared toward reaching a consensus.

Characteristics of the Democratic Leadership Style

Leaders who embrace the democratic style of leadership often possess the following
characteristics.

Promote creativity
In shared leadership, leaders trust their teams to generate ideas and come up with solutions.
This trust encourages organizational creativity, spurring teams to work together in new ways,
without micromanagement.

Inclusive
Democratic leaders want all team members to be involved. Everyone comes to the table when
it’s time to make a decision. This approach reduces power struggles and makes team
members feel valued.

Collaborative
In contrast with other styles of leadership, democratic leadership encourages team members

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to work together. Employees can’t just rely on the leader’s edicts to get things done. Instead,
they have to come up with solutions themselves, knowing that their leader is there to take
responsibility when there’s an issue.

Trust-building
Above all, participatory leaders trust their teams to get things done. They follow Douglas
McGregor’s Theory Y model, an optimistic approach that assumes workers are self-
motivated, see work as fulfilling and can solve problems creatively on their own.

Democratic Leadership Examples

President Dwight D. Eisenhower, who was famously democratic in his leadership style,
once said that “leadership consists of nothing but taking responsibility for everything that
goes wrong and giving your subordinates credit for everything that goes well.”

This attitude doesn’t come automatically to everyone, but it can be learned. Continuing
education coursework, such as Strategic Organizational Leadership, a course within
Villanova’s Certificate in Organizational Leadership program, can help you acquire the four
traits of democratic leaders.

Known as the “Balancer in Chief,” Eisenhower demonstrated the qualities of democratic

leadership by building strategic coalitions and bringing on board knowledgeable experts to
help make important decisions.

Mahatma Gandhi, one of the great leaders of our time, exemplified many of the traits of a
democratic leader. He brought together broad coalitions of people, working among them
instead of above them. He held the life-long belief that every class of people had something
to contribute, and he encouraged diverse and often at-odds groups to find ways to work
together. The people of India trusted him, and he trusted them to create a new future for
India, together.

Pros and Cons of Democratic Leadership

While democratic leadership has many benefits, there are some drawbacks.
Cons of democratic leadership
 Slower decision making: Because democratic leadership requires building coalitions
and coming to a shared consensus as a team, it can take longer to make decisions than
in situations where one leader is unilaterally deciding an organization’s direction.
 Can lead to communication failures: If a democratic leader is not adequately
engaged or employees don’t have the experience to make important decisions,
deadlines can be shuffled to the side and momentum can go haywire.
Pros of democratic leadership
 Empowering: Employees are trusted as capable, creative team members, not simply
mechanisms for carrying out a boss’s instructions. They are empowered to come up
with solutions and get better at their jobs.
 Increases employee satisfaction: A meta-analysis of democratic leadership studies
shows that there is an increase in group member satisfaction among groups led by
democratic leaders.

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3) Laissez-Faire Leadership:

Laissez-faire leaders provide little or no direction to their team and delegate decision-making
authority to subordinates.
This style works best with highly skilled and self-motivated individuals who can work
independently and take responsibility for their actions.
Definition: The Laissez-Faire or Free-Rein is the leadership style wherein the leader gives
full freedom to his subordinates to act on their own. Here, the leader once defines the goals,
policies, programmes and the limitations for action and then leaves the remaining process to
be accomplished by the subordinates on their own.

In Laissez-Faire leadership style, the leader maintains contact with outside people and bring
in information to the group members which they need for the accomplishment of the given
task. Although, the subordinates are given the power and authority to make decisions the
leader still takes responsibility for the actions of his group members.

This leadership style proves to be beneficial only when the group members are highly skilled,
well-motivated and capable enough to accomplish the task assigned to them. The Laissez-
Faire style is most suitable in the situations, where the group members are more
knowledgeable than the leader and possess expertise in a particular field that can be used to
find a solution to the complex problem. Thus, highly passionate team members prefer this
style of leadership.

One of the major disadvantages of the Laissez-Faire leadership style is that the project may
go off track in case the group members are not knowledgeable and lacks experience in
making the effective decisions. Also, the project may suffer if no clear lines of authority and
responsibility are defined among the group members. Lack of guidance and feedback from
the leader may also affect the viability of the project which in turn may lead to inadequate
integration among the teammates.

Characteristics Of Laissez-Faire Leadership

“Hands-Off Style” Leadership

A hands-off approach is perhaps the fundamental characteristic of laissez-faire leadership, as

the “laissez-faire leadership style is also known as the “hands-off” style” (Sharma & Singh,
2013).

In this leadership style, the leader of the group is absent from many of the group’s functions
and leaves things in the hands of their group members. This may be beneficial for people
who function best with little direction, but, on the other hand, it may pose problems for
people who require more direction to complete tasks effectively and efficiently.

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Provide Training and Support

In order for group members to make effective and well-informed decisions on the group’s
behalf, training and support from the leader of the group is extremely useful.

As the leader of a laissez-faire led group is not very involved with the group’s decision-
making process, they must make sure that the people who are in charge (the group members)
are adequately prepared for their responsibilities.

A variety of training is likely needed before group members can assume the large
responsibilities that this leadership style gives them.

Additionally, it is important for laissez-faire leaders to set up support for their group
members if they need it along the decision-making process.

Especially since the leader of a laissez-faire led group may not be accessible in the group
decision-making process, they must ensure that proper support and materials are available to
help their group members through the process as smoothly as possible.

Trust is Given to Employees

Because employees are given so much responsibility in the laissez-faire leadership style, a
huge amount of trust is being put in them to keep the group running smoothly.

It is important for a laissez-faire leader to have group members that they can trust so that they
can ensure that the group will progress without the leader’s direct input. If the leader does
not trust their group members to handle their responsibilities properly, then it may be difficult
for the leader to not be involved, and therefore it would likely not be a laissez-faire
leadership.

Placing trust in group members may increase their confidence in themselves and make them
more likely to complete their jobs efficiently and effectively, which highlights an advantage
of laissez-faire leadership.

Employees Make Decisions

Part of group members’ responsibilities in the laissez-faire leadership style is making

decisions (Sharma & Singh, 2013). In this leadership style, employees must come together to
make the best decisions for the group’s future development.

It is important for this process to be collaborative, with all group members participating in
some way. It may be more efficient to divide responsibilities among group members, but
how responsibilities are split up will be different from group to group.

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Advantages Of Laissez-Faire Leadership

Encourages Personal Growth

One advantage of laissez-faire leadership is that, by providing group members with more
responsibility within the group, it encourages their own personal growth.
Being trusted with more tasks and completing these tasks can boost anyone’s confidence in
themselves and their skills. This highlights a positive cycle within a laissez-faire-led group
as if people are more confident in their abilities, they are likely to do a better job, and doing a
good job further raises their confidence in themselves.

Encourages Creativity

Because the laissez-faire leadership style includes so many people in the decision-making
process and in other important group functions, it encourages creativity through all the
different perspectives and ideas that many people can bring (Malec, 2021).

Importantly, “such a focus on personal growth and a general trust in the capabilities of
individuals creates room for innovation and to be creative without the fear of failure, or rather
the fear of the consequences of failure.”

Removing an authority figure to overlook the decision-making process within a group gives
people opportunities to make mistakes, which promotes creativity.

Learning and Development

Another advantage of laissez-faire leadership is that “it facilitates learning and development
opportunities…because of its hands-off approach, employees have the chance to learn on
their own” (Pathak, 2022).

Many people learn better with direct experience than being shown exactly how to do
something, and a laissez-faire leadership style provides this opportunity.

Faster Decision-Making

A laissez-faire leadership style can lead to faster decision-making because group members do
not have to pass ideas by the group leader along the way in the decision-making process
(Pathak, 2022).

This allows for a smoother, speedier process, where more decisions can be made and, if they
are good decisions, a group can progress and develop faster overall.

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Disadvantages Of Laissez-Faire Leadership

Lack of Role Clarity

On the other hand, one disadvantage of laissez-faire leadership is that, without a leader being
involved in the decision-making process, there may be a lack of role clarity among group
members. Without proper assignment of tasks to group members, it may be unclear to
members exactly what they are responsible for.

Additionally, without a leader being involved along the way, there is no one available to
clarify group members’ responsibilities if they become unclear.

Isolation

Group members may even feel like the group leader does not care about the group in this
leadership style (Malec, 2021).

With the leader being so removed from the group dynamic, it may seem as though the leader
is not invested in the group to group members. However, the opposite is likely true.

Those who choose to lead their group in a laissez-faire way should choose this leadership
style because they think that it will be the best way for the group to function, and by
implementing a whole new style of leadership, the leader would actually be demonstrating
just how much they care about the success of their group.

Naturally, if a group has a designated leader, that person would be the authority figure within
the group, and therefore for a group to have a laissez-faire leadership style, the leader of the
group (or the founder of the group) would have to have gone out of their way to implement
this style.

Interestingly, a study from 2012 found results that “indicate that Laissez Faire style is not an
important style that boosts the motivation level of workers as compared to other leadership
styles” (Chaudhry & Javed, 2012). This highlights the potential lack of motivation that
laissez-faire leadership may cause among group members.

Low Accountability

Without a clear authority figure or hierarchy among the group, group members in a laissez-
faire led group are not truly held accountable by anything or anyone other than the success of
the group itself. And, if group members are not invested in the group’s success, then they
truly have no accountability.

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Avoids True Leadership

With the low involvement of the leader in a laissez-faire leadership style, there is a lack of
any true leadership, which can be a disadvantage for many groups.

Leadership can be a strong factor in productivity and in making a group move forward and
progress. With all group members at the same leadership level and with no leader in charge,
accountability may be low, and therefore little or no progress may be made within the group.

2.7 Theories Of Leadership

1.Trait Theory of Leadership

The trait model of leadership is based on the characteristics of many leaders - both successful
and unsuccessful - and is used to predict leadership effectiveness. The resulting lists of traits
are then compared to those of potential leaders to assess their likelihood of success or failure.

Scholars taking the trait approach attempted to identify physiological (appearance, height,
and weight), demographic (age, education and socioeconomic background), personality, self-
confidence, and aggressiveness), intellective (intelligence, decisiveness, judgment, and
knowledge), task-related (achievement drive, initiative, and persistence), and social
characteristics (sociability and cooperativeness) with leader emergence and leader
effectiveness.

Successful leaders definitely have interests, abilities, and personality traits that are different
from those of the less effective leaders. Through many researches conducted in the last three
decades of the 20th century, a set of core traits of successful leaders have been identified.
These traits are not responsible solely to identify whether a person will be a successful leader
or not, but they are essentially seen as preconditions that endow people with leadership
potential.

Among the core traits identified are:

 Achievement drive: High level of effort, high levels of ambition, energy and
initiative
 Leadership motivation: an intense desire to lead others to reach shared goals
 Honesty and integrity: trustworthy, reliable, and open
 Self-confidence: Belief in one’s self, ideas, and ability
 Cognitive ability: Capable of exercising good judgment, strong analytical abilities,
and conceptually skilled
 Knowledge of business: Knowledge of industry and other technical matters
 Emotional Maturity: well adjusted, does not suffer from severe psychological
disorders.
 Others: charisma, creativity and flexibility

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Strengths/Advantages of Trait Theory
 It is naturally pleasing theory.
 It is valid as lot of research has validated the foundation and basis of the theory.
 It serves as a yardstick against which the leadership traits of an individual can be
assessed.
 It gives a detailed knowledge and understanding of the leader element in the
leadership process.

Limitations of The Trait Theory

 There is bound to be some subjective judgment in determining who is regarded as a
‘good’ or ‘successful’ leader
 The list of possible traits tends to be very long. More than 100 different traits of
successful leaders in various leadership positions have been identified. These
descriptions are simply generalities.
 There is also a disagreement over which traits are the most important for an effective
leader
 The model attempts to relate physical traits such as, height and weight, to effective
leadership. Most of these factors relate to situational factors. For example, a minimum
weight and height might be necessary to perform the tasks efficiently in a military
leadership position. In business organizations, these are not the requirements to be an
effective leader.
The theory is very complex

Implications of Trait Theory

 The trait theory gives constructive information about leadership. It can be applied by
people at all levels in all types of organizations.

 Managers can utilize the information from the theory to evaluate their position in the
organization and to assess how their position can be made stronger in the
organization. They can get an in-depth understanding of their identity and the way
they will affect others in the organization. This theory makes the manager aware of
their strengths and weaknesses and thus they get an understanding of how they can
develop their leadership qualities.

2.Path Goal Theory

Effective leadership strategies can improve employee satisfaction, boost productivity and
promote better business alignment. One theory many organizations and leaders consider
when deciding how to best manage their teams is the path-goal theory. Understanding how
this theory works and how to employ it in your own practices can help you motivate
employees and improve team performance.

In this article, we define what path-goal theory is, list its four components and offer strategies
for employing path-goal theory with your team.
The path-goal theory of leadership says that a leader's style, traits and behaviors influence
team productivity, motivation and satisfaction. This theory comes from expectancy theory,

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which is the assertion that individuals act in a certain way based on the expectation of a
desirable outcome.

Path-goal theory assumes that a leader complements their employees and can compensate for
their shortcomings. Effective leaders, according to this theory, give their employees a clear
path to follow to achieve goals, removing challenges and obstacles. The theory provides
guidance for ways leaders can encourage and support employees in reaching their goals.

4 types of path-goal theory

Path-goal theory identifies four key types of leadership behavior:

1. Achievement-oriented
With this type of leadership style, the leader focuses on encouraging excellence by setting
challenging goals. Leaders encourage employees to pursue their highest level of performance
and the leader trusts their ability to handle this.

The leader encourages employees to display excellent work achievements and be continually
improving. Employees who are comfortable working fully independently and have strong
problem-solving skills are suitable for this type of management.

2. Directive path-goal clarifying

In directive leadership, the leader provides employees with clear guidelines for the processes
and expectations for them, as well as how they should best carry out tasks. This style of
leadership aims to reduce ambiguity in job functions and clarify work processes.

This can give employees a higher level of certainty regarding procedures, policies and rules.
Leaders define the relationship between performance goals and rewards, including pay
increases and promotions, explicitly to promote clarity and transparency. With this style of
leadership, leaders supervise employees closely, which makes it most appropriate for
inexperienced employees who need guidance and to be checked on regularly.

3. Supportive
With supportive leadership, the leader pays attention to the needs and well-being of
employees and makes work pleasant for them by being friendly and empathetic. Leaders who
operate under this style treat employees with respect and offer support when needed. This
management style is useful when employees have personal problems or need a boost in
motivation or confidence.

4. Participative
This type of leadership behavior involves consulting with employees on important decisions
related to work, task goals and paths to reach goals, enabling the employee to be directly
involved in the decision-making process. This typically results in the employee exerting
greater effort to achieve the goals they selected.

Leaders often use this style of leadership when employees are highly involved or have
specialist knowledge. In these situations, their insight can be invaluable to the leader.

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Strategies for using path-goal theory
Here are some strategies you can use the different path-goal leadership styles to inform your
own leadership strategies:

 Achievement strategies
For this approach to be successful, leaders must display complete confidence in their team's
ability to overcome obstacles. Set high expectations for employee goals. Create a list of
objectives that you want your team members to complete and a time frame in which they're
required to have them completed.

Express your confidence that the goal is achievable, even if there is a tight deadline attached
to it. Tie the completion of the objectives to a higher goal or specific project or priority. This
style of leadership often works best with employees who have a low need for affiliation or
who are comfortable working independently.

It also works well for employees who prefer less structure and who have a high belief in their
own abilities. This style is most effective in professional work environments, such as
scientific or technical, or achievement environments like sales.

 Directive strategies
Because this style of leadership is task-oriented, where the leader provides strict guidelines,
goals and performance standards, the best way to apply this style is through extensive
training or one-on-one coaching.

Break down bigger goals into smaller steps with milestones. When using this leadership style,
try to leverage rewards for achievement, particularly when employees reach important
milestones.

This style works well for employees who prefer structure or who require more clarity to
understand how external factors influence their role or responsibilities. It also works well for
employees who lack confidence in their own abilities.

 Supportive strategies
With this leadership style, leaders show genuine concern about the needs of their employees
and want to do all they can to help the employees reach their goals. It is most effective in
situations where relationships and tasks are physically or psychologically challenging.

Supportive leaders can focus on creating a warm and friendly environment and showing
employees they're friendly and approachable in the event of a problem or concern. By being
empathetic and motivating, managers can develop more cohesive cultures and safe work
environments.

 Participative strategies
Using this theory, employees can take part in goal setting. Meet regularly with employees to
discuss goals and come up with a strategy together for how you plan to achieve those goals.
Encourage employees to provide feedback regarding progress. This can help you work
together to reach objectives, improve processes and elevate business strategies.

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2.8 Blake Mouton-Managerial Grid

The treatment of task orientation and people orientation as two independent dimensions was a
major step in leadership studies.

Many of the leadership studies conducted in the 1950s at the University of Michigan and the
Ohio State University focused on these two dimensions.

Building on the work of the researchers at these Universities, Robert Blake and Jane Mouton
(1960s) proposed a graphic portrayal of leadership styles through a managerial grid
(sometimes called leadership grid).

The grid depicted two dimensions of leader behavior, concern for people (accommodating
people’s needs and giving them priority) on y-axis and concern for production (keeping tight
schedules) on x-axis, with each dimension ranging from low (1) to high (9), thus creating 81
different positions in which the leader’s style may fall. (See figure 1).

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The five resulting leadership styles are as follows:

Impoverished Management (1, 1): Managers with this approach are low on both the
dimensions and exercise minimum effort to get the work done from subordinates.
The leader has low concern for employee satisfaction and work deadlines and as a result
disharmony and disorganization prevail within the organization. The leaders are termed
ineffective wherein their action is merely aimed at preserving job and seniority.

Task management (9, 1): Also called dictatorial or perish style. Here leaders are more
concerned about production and have less concern for people. The style is based on theory X
of McGregor.
The employees’ needs are not taken care of and they are simply a means to an end. The
leader believes that efficiency can result only through proper organization of work systems
and through elimination of people wherever possible.

Such a style can definitely increase the output of organization in short run but due to the strict
policies and procedures, high labour turnover is inevitable.

Middle-of-the-Road (5, 5): This is basically a compromising style wherein the leader tries to
maintain a balance between goals of company and the needs of people.
The leader does not push the boundaries of achievement resulting in average performance for
organization. Here neither employee nor production needs are fully met.

Country Club (1, 9): This is a collegial style characterized by low task and high people
orientation where the leader gives thoughtful attention to the needs of people thus providing
them with a friendly and comfortable environment.
The leader feels that such a treatment with employees will lead to self-motivation and will
find people working hard on their own. However, a low focus on tasks can hamper
production and lead to questionable results.

Team Management (9, 9): Characterized by high people and task focus, the style is based on
the theory Y of McGregor and has been termed as most effective style according to Blake and
Mouton.
The leader feels that empowerment, commitment, trust, and respect are the key elements in
creating a team atmosphere which will automatically result in high employee satisfaction and
production.

Advantages of Blake and Mouton’s Managerial Grid

 The Managerial or Leadership Grid is used to help managers analyze their own
leadership styles through a technique known as grid training. This is done by
administering a questionnaire that helps managers identify how they stand with
respect to their concern for production and people.

 The training is aimed at basically helping leaders reach to the ideal state of 9, 9.

Limitations of Blake and Mouton’s Managerial Grid

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The model ignores the importance of internal and external limits, matter and scenario. Also,
there are some more aspects of leadership that can be covered but are not.

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