Leadership StylesSrishti : 1113252Vivek : 1113253

Simran : 1113255Gaurav : 1113601

Yatin : 1113709

Organisational Behavior

Presentation

INTRODUCTION• The behavioral pattern which a leader exhibits is known as

style of leadership.

• The leadership style in a particular situation is determined by the leader’s personality, experience & value system, nature of followers and nature of environment.

• There are 4 important leadership styles which are based on use of authority. They are:

Persuasive

Persuasive Leaders persuade their subordinates to get the work done their way.

Autocratic Leadership• Autocratic Leader gives orders which

must be obeyed by the subordinates in any circumstance.

• This kind of leader gives personal praise or criticism to each member on his own initiative and remains aloof from the group for most of the time.

• There are 3 Categories of autocratic leaders as follows:

Strict Autocrat Benevolent Autocrat Manipulative Autocrat

Case Study Leona Helmsley of the Helmsley hotel chain

A striking example of an autocratic leader in the corporate world was Leona Helmsley. In 1972 she marries Harry Helmsley whose property management , business included dozens of apartment complexes , office tower such as the empire state building and a nationwide chain of hotels.Her combative style earned her the tabloid nickname “the queen of mean”. While Leona’s autocratic leadership style did make the Helmsley hotel chain popular her demands of perfection from everyone and her exiting ways scraped the dignity of everyone on her payroll from the cleaning staff to top executives. She allegedly “treated people like garbage”. Example being to fire on the spot a secretary daring to use the Helmsley palace dry cleaner to remove an accidental spill on her clothing even though she had worked diligently for eight years. A lawyer that once had a breakfast with her became witness of her tyrannical behavior when a waiter served a cup of tea with a tiny bit of water spilled on the saucer. Leona asked the waiter to get down on his hands and knees to beg that he would not be fired right away.On the other hand her autocratic type of leadership allowed her to become a billionaire hotel operator. The disgruntled employees soon raised several charges of tax evasion , kickbacks , extortion and the like against Leona and the charges to tax evasion stuck. She spent millions of dollars overhauling her mansions and luxuries and claimed them against the profits of the hotel chain. Her personal maid testified against her and her much derided quote “ that only little people pay taxes” led her to spend 21 months in prison and fines.

Democratic Leadership• It is a very open and collegial style of running a team. Ideas

move freely amongst the group and are discussed openely. Everyone is given a seat at the table and discussion is relatively free flowing.

• This style is needed in dynamic and rapidly changing environments where very little can be taken as a constant. In these fast moving organization every option for improvement has to be considered to keep the group from falling out of date.

• The democratic leadership style means facilitating the conversation , encouraging people to share their ideas and then synthesizing all the available information into the best possible decision. The democratic leader must also be able to communicate that decision back to the group to bring unity the plan is chosen.

Case StudyRatan Tata, a dynamic leader:

• In terms of leadership style, TATA Group has adopted a team-led culture and collective approach. With Ratan Tata as leader of the Group, the management style of the entire TATA Group has changed considerably; trust became a huge facet and theme of the group. Ratan Tata has put a complete organizational restructuring when he took over in 1991 as leader of the TATA Group, by taking a more matrix-style approach building teams. These changes would have obviously transformed a lot in the business, senior managers would have had to be on their toes and flexibility and adaptability became essential qualities to have. The leadership changed from a centralized, command center to a much more distributed form with employees and all managers enjoying greater responsibility and knowledge about the Group, which would have in turn; motivated them to work harder and as a group.

Laissez Faire Leadership• Laissez-faire leaders are characterized as

uninvolved with their followers and members; in fact, laissez-faire leadership is an absence of leadership style.

• Leaders of this style make no policies or group-related decisions. Instead, group members are responsible for all goals, decisions, and problem solving.

• Laissez-faire leaders have very little to no authority within their group organization.

• Laissez-faire leaders are most successful in environments with highly trained and self-directed followers.

Case StudyIntel’s leadership style:When Intel was launched in the late 1960s, the leadership

style of Robert Noyce helped inspire other Fairchild employees to join him. Initially, Noyce’s laissez-faire management style appealed to the brilliant engineers who founded Intel, including Andrew Grove and Gordon Moore, who coined Moore’s Law of exponential growth.

As Intel and the semiconductor industry matured, Noyce’s laissez-faire management style was no longer optimal for a company increasingly dependent on perfecting quality assurance processes and scaling costs. Eventually, Noyce was succeeded by Grove, whose management style was more refined and autocratic — better-suited for Intel’s long-term survival.

Persuasive Leadership• The art of persuasion is a powerful tool for entrepreneurs.

• It can help you land new clients, hire the best employees and form new business relationships.

• More than 2,000 years ago Aristotle gave us three essential elements of persuasive communication:

Ethos: how credible the audience perceives the speaker to be 

Logos:  how logical and effectively structured the speaker’s argument is

Pathos: how emotionally appealing the communication is.

Key Characteristics1. Listen effectively

2. Be honest and confident

3. Address concerns

4. Engage in effective communication

5. Show empathy

6. Find common ground

Case Study• Drawing on the example of the turnaround of Beth Israel

Deaconess Medical Center (BIDMC) in Boston. Paul Levy, who became CEO in early 2002, managed to bring the failing hospital back from the brink of ruin.

• An unlikely candidate to run BIDMC, Paul was not a doctor and had never managed a hospital, Despite this, he was appealing to the board.

• His challenge was threefold: to give remaining employees time to grieve and recover from layoffs; to make them feel supported and cared for; and to ensure that the turnaround plan proceeded apace.

• The first step was to acknowledge employees’ feelings of depression while helping them look to the future. He then urged employees to look forward and concluded on a strongly optimistic note

• Ensuring the employees continue to work hard, he spoke about the need for cost control thus putting merit pay increases on hold.

• A year later, everything changed. Operational improvements had begun to take hold. Financial performance was well ahead of budget, with the best results since the merger.

• In studies of successful turnarounds, it was found that effective leaders explicitly reinforce organizational values constantly, using actions to back up their words. Their goal is to change behavior, not just ways of thinking.

• Performance, of course, is the ultimate measure of a successful turnaround. moving from a $58 million loss in 2001 to breakeven in 2004. At the end of the 2004 fiscal year, the hospital reported a $37.4 million net gain from operations

• Paul Levy chose an approach that blended with a strong dose of discipline with real-time, public reinforcement. He understood the importance of readying the cultural soil before planting the seeds of change.

Conclusion• A leader may be of various types but a true and

competent leader is one that encompasses all the aforesaid qualities.

• It is essential for a great leader to be dynamic and constantly evolving so that he/she may lead the team in the most apt and beneficial manner.

• Having a wide knowledge and diverse background will not only help make well informed decisions but also increase the level of compassion.

• The perfect leader is one which has a blend of all the characteristics and can call upon his attributes to meet the necessary situation at hand.

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