BUSINESS MANAGEMENT LEADERSHIP STUDY MATERIAL

BUSINESS MANAGEMENT STUDY MATERIAL

1. Leadership in Indian Ethical Perspective UNIT -III

2. Co n t e n t Leadership, Pre-requisites of Leadership Approaches to Leadership, Leadership Styles Ethical Leadership Values in Leadership

3. Leadership “Be the servant while Leading” — Swami Vivekananda Leadership means many things to many people. This is due to the changing environment of leaders in different roles in different functions in different settings starting from leadership of the family to the top positions in multinational organizations. However, the essentials of leadership are the same to all leaders in all positions.

4. Leadership Prerequisite Due to the variation in the skills required, roles played, functions performed, issues tackled and the relationships promoted, different leaders have different perceptions of leadership. As such, several attributes have been made both for the success and failure of leadership in the form of properties and processes or traits and styles of leaders. Leadership is a necessary part of the social process. Any group, association, organization or community functions the way its leader leads it. It is more true in the collectivistic cultures like India where people follow the path shown by the great people.

5. Listed below 10 prerequisites for future leaders :   Passion:  Leaders must have an ongoing burning drive to make things better, to make a difference, and to persevere and overcome all barriers to achieve success. Perspective:  Today’s leaders need to understand where you have been, where you are, and where you want/need to go. It’s an ever-changing world today. The speed of technology, for instance, has never been faster. Having your eyes on the horizon regarding members’ growing needs, growing regulatory requirements, evolving infrastructure, etc., is so critical. However, one of the most critical components is keeping your pulse on your employees and your culture, which have such a powerful impact on the member experience and the growth of a credit union.

6. 3. Creativity:  Use your creativity to find new and more effective ways to do things. It’s the fun part of the job that requires the complete opposite – risk taking, which is what credit unions are in the business to do. This approach takes creativity to venture outside the proverbial box that can many times help leapfrog over the competition. Try new things; be curious. 4. Organizational skills:  Transferring your broad vision into a very well organized, practical, step-by-step program takes effort. This prerequisite, however, is vital to running a well-oiled machine in keeping tasks, responsibilities, and order in check and on target.

7. 5. Teamwork:  Leading any major change involves engaging, persuading, and working with other people while keeping the organization’s best interests at heart. Very few great things in life occur from one person – especially professionally. Being an aligned team from top to bottom just about guarantees success as long as the direction has been clearly defined for all staff. But this alignment and direction starts at the top, the leader and must clearly communicate to everyone in the organization to act as one.

8. 6. Persistence:  Passion gets you started; persistence is what carries you through. Highs and lows are not only part of life, they are part of business, too. A leader that can weather these fluctuations and keep steaming ahead can keep the credit union heading toward achieving its goals. Setbacks occur, but being persistent can quell those speed bumps – keeping the passion that sparked it all at full stoke. Getting and keeping everyone focused on the goal and putting simple action plans in place is critical to remain steadfast and persistent in your mission and vision.

9. Open-mindedness:  Change leads you into unchartered waters and involves a good measure of “learning by doing.” Therefore, you must be very comfortable with ambiguity. It’s somewhat similar to both creativity and perspective, keeping options open for anything new and, yes, proven. Therein lies the calculated risk that an open mind craves. A mighty fine prerequisite for today’s credit union leader. Integrity:  Honest and genuine; motivated by your deeply held values to make your organization and team better. Nothing matters more in a leader. Empowerment and Accountability : Empowerment and accountability go hand in hand. One does no good without the other. Great leaders are comfortable delegating and empowering their teams to excel and do the right thing to get the right results. Conversely, great leaders hold their teams accountable as well. Fun:  Leaders know how to incorporate fun along the journey!

10. Definitions:- The word ‘leader’ means ‘to travel’ or ‘show the way’. It has been derived from the verb “to lead.” This also implies “to advance,” “to stand out,” to guide and govern the actions of others. A leader is a person who leads a group of followers. Leadership is an attempt at influencing the activities of followers through the communication process and toward the attainment of some goal or goals. Leadership is an influence process that enable managers to get their people to do willingly what must be done, do well what ought to be done.(Cribbin, J.J. ‘Leadership: strategies for organizational effectiveness’) Leadership is defined as the process of influencing the activities of an organized group toward goal achievement.(Rauch & Behling.)

11. Definitions:- Contd. Leadership is discovering the company's destiny and having the courage to follow it. ( Joe Jaworski - Organizational Learning Center at MIT.). Leadership is interpersonal influence, exercised in a situation, and directed, through the communication process, toward the attainment of a specified goal or goals. ( Tannenbaum, Weschler & Massarik) Leadership is not a person or a position. It is a complex moral relationship between people, based on trust, obligation, commitment, emotion, and a shared vision of the good. Leadership is that process in which one person sets the purpose or direction for one or more other persons and gets them to move along together with him or her and with each other in that direction with competence and full commitment.

12. D e f i n i t i o n s : - C o n t d . Leadership is the behavior of an individual when he is directing the activities of a group toward a shared goal.(Hemphill ) Leadership is the capacity to translate vision into reality. Warren G. Bennis Leadership is the i ncr e m e ntal infl u e n ce that a p e rson h as b e y o nd his o r her fo r m a l authority. (Vecchio, 1988) Leadership is the influential increment over and above mechanical compliance with the routine directives of the organization.( Katz & Kahn 1978, p. 528) Leadership i s a process whereby a n individual infl u ences a g roup o f indivi d uals to achieve a common goal (Northouse, 2004) Leadership is the influencing process of leaders and followers to achieve organizational objectives through changes. (Lussier & Achua, 2004)

13. Some characteristic of Leaders a)Adaptable of situations b)Alert towards social situation c)Cooperative Significant Dependable Assertive (Positive, Decisive) Confident and Persistent (Determined, Strong Headed) Knowledge

14. Principle Role of Leaders- Negotiator Coach and Motivator Team Builder Friend Advisor Guide Mentor

15. Behavior and attitude of Trustworthy Leader Reliability Truthfulness Consistency Walking the talk Readiness to accept feedback Confidence Collaboration Cooperation Communica t ion Predictable

16. Key Elements in any Leadership Situation Leadership is an activity or a process The leadership process involves such things as influence, exemplary behavior or persuasion It involves actors who are both leaders and followers The leadership process has various outcomes – most obviously the achievement of Goals, but also commitment of individuals to such goals.

17. Leadership roles Create an Inspiring Vision & Lead by Example Empower, Inspire, and Energize People Build and Lead a Team

18. Create an Inspiring Vision & Lead by Example Create an inspiring vision; establish shared values; give direction and set stretch goals Manage change strategically, take risks, create change; lead change; manage resistance to change. Lead by example; practice what you preach; set an example, and share risks or hardship Demonstrate confidence; win respect and trust without courting popularity

19. Empower, Inspire, and Energize People B e enthusiasti c ; inspire and ene r gize p eopl e ; create a positive work environment Empower people; delegate authority; be open to ideas; have faith in the creativity of others Com m u nicate openly and honestl y ; give clear guidelines; set clear expectations Empathize; be willing to discuss and solve problems; listen with understanding; support and help

20. Build and Lead a Team Use team approach; facilitate cooperation; involve everyone; trust ones group; rely on their judgment Bring out the best in ones people; have common touch with them; coach and provide effective feedback Permit group decision; help ones team reach better decisions Monitor progress, but don't micromanage, lead ones team; avoid close supervision; do not over boss; do not dictate; lead team self-assessment

21. Leadership Styles in business Autocratic Leadership Style Bureaucratic Leadership Style Democratic Leadership Style Autocratic Leadership Style The classical approach Manager retains as much power and decision-making authority as possible Does not consult staff, nor allowed to give any input Staff expected to obey orders without receiving any explanations Structured set of rewards and punishments.

22. Bureaucratic Leadership Style Manages “by the book ¨ Everything done according to procedure or policy If not covered by the book, referred to the next level above Democratic Leadership Style Also known as participative style Encourages staff to be a part of the decision making Keeps staff informed about everything that affects their work and shares decision making and problem-solving responsibilities

23. Types of Leadership Visionary Leader Integration Leader Fulfillment Leader Transactional Leader Transformational Leaders Charismatic Leader

24. Visionary Leader It is the one who has a long-term perspective, who is externally oriented and has a broad interest in industry, economy, regulations, and politics. His tasks include forming a mission statement, vision and values. He is supposed to transform and structure the organization to ensure survival and growth. Example of visionary leader can be a director, senior executive, chair and head of school, senior partner etc.

25. Integration Leader It is the one who has medium-term perspective. He has an inside out orientation where his main focus is on his own organization. His main function is to develop organization’s systems and processes. He reconciles conflicting interests. He develops and create a strong culture. He ensures effective running of whole organization by using and innovating corporate knowledge and recruiting and retaining talent.

26. Fulfillment Leader It is the one who has a short-term perspective. He is a knowledge expert who is result oriented and who has customer service thinking. He pleases the customer by delivering results on time. He makes continuous improvement by unlocking individual potential and optimum usage of resources.

27. Transactional Leader These are the ones who take the initiative in offering some form of need satisfaction in return for something valued by the employees, such as pay promotion, improved job satisfaction or recognition. The leader sets clear goals and is expert at understanding the needs of employees and selects appropriate, motivating rewards.

28. Transformational Leaders It is the process of engaging the commitment of the employees in the context of the shared values and the shared vision. It is particularly relevant in the context of managing change. It involves relationship of mutual trust between the leaders and the followers.

29. Charismatic Leader Till now we have read about different types of leaders but sometimes it happens that we are awed by a leader and follow him/her blindly. The personal charm of the person influences us. These types of leaders are known as charismatic leaders. Mahatma Gandhi was also an example of charismatic leader. They have a great deal of emotional appeal. Swami Vivekanand was another charismatic leader.

30. Approaches /theories to Leadership Trait Approach Behavioral Approach Situational and Contingency Approach Functional Approach Relational Approach Transformational Approach

31. Trait Approach Theories that consider personal qualities and characteristics that differentiate leaders from non-leaders. Some traits increase the likelihood of success as a leader, but none of them guarantee success. Traits predict behavior better in “weak” than “strong” situations. Unclear evidence of the cause and effect of relationship of leadership and traits. Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

32. Behavioral Approach Behavioral leadership theory ar g ues that the success of a leader is based on their behavior rather than their natural attributes. Behavioral leadership theory involves observing and evaluating a leader's actions and behaviors when they are responding to a specific situation. This leadership theory focuses on the actions of leaders, not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation.

33. Situational and Contingency Approach Situational theory assumes that different situations call for different characteristics; according to this group of theories, no single optimal psychographic profile of a leader exists. The contingency theory of leadership supposes that a leader's effectiveness is contingent on whether or not their leadership style suits a particular situation. According to this theory, an individual can be an effective leader in one circumstance and an ineffective leader in another one.

34. Functional Approach Functional leadership theory is a particularly useful theory for addressing specific leader behaviors expected to contribute to organizational or unit effectiveness. This theory argues that the leader’s main job is to see that whatever is necessary to group needs is taken care of; thus, a leader can be said to have done their job well when they have contributed to group effectiveness and cohesion.

35. Relational Approach The relationship theory of leadership focuses on leaders who are mainly concerned about their interactions with others. They are often mentors for employees, scheduling time to talk to them and working to meet their needs. Relational leaders empower others. They see the strengths and weaknesses of each member of their team, and work to build on strengths and improve weaknesses. The professional growth of others is important to a relational leader. Relational leaders have a clear purpose, which they are able to communicate to others.

36. Transformational Approach The transformational leader motivates its team to be effective and efficient. Communication is the base for goal achievement focusing the group on the final desired outcome or goal attainment. This leader is highly visible and uses chain of lead e r s f ocus command to get the job done. Transformational o n t h e bi g pictu r e, ne e din g t o be surrounded by people who take care of the details. The leader is always looking for ideas that move the organization to reach the company’s vision .

37. Ethical Leadership Ethical leadership is a form of leadership in which individuals demonstrate conduct for the common good that is acceptable and appropriate in every area of their life. It is composed of the following three major ethical traits. Be the Example Champion the Importance of Ethics Communicate

38. Be the Example A noble quality of a leader is leading by example. As an ethical leader, it’s important to remember that actions often speak louder than words. People are more likely to judge someone based on how they act, rather than what they say. By practicing and demonstrating the use of ethical, honest and unselfish behavior to subordinates, ethical leaders may begin to earn the respect of their peers. People may be more likely to follow a leader who respects others and shows integrity.

39. Champion the Importance of Ethics One role of an ethical leader is focusing on the overall importance of ethics, including ethical standards and other ethical issues, and how these factors can influence society. As an ethical leader, it’s important to teach peers about ethics, especially in cases where they are faced with an ethical issue in the workplace.

40. Com m uni c a t e Successful ethical leaders tend to be good communicators. People communicate in different ways. Some may feel comfortable speaking in public, regardless of personnel or situation, while others may be hesitant to speak with a leader because of fear, anxiousness or simply not knowing how to articulate what they are trying to say. They might be better talking via email, rather than in person. It’s an ethical leader’s job to communicate with each member of the team, but also allow for open conversation, as some people may have questions and concerns that need addressed. It’s important for leaders to build friendly relation with their team. Quality relationships tend to be built on trust, fairness, integrity, openness, compassion and respect.

41. Impacts of Ethical Leadership Ethical leaders can help establish a positive environment with productive relationships over three levels: the individual, the team and the overall organization. Nurturing the relationships at each of these levels can lead to positive outcomes and benefits for ethical leaders.

42. The Well-Being of the Individual Maintaining a positive working atmosphere is an important responsibility of a strong ethical leader. Ethical leaders who lead by example may influence others to do the same. Generally, people are affected by the interactions that occur around them. Positive communication among co-workers may help influence job productivity and attitude.

43. The Energy of the Team Ethical leadership can also involve the management of conduct and collaboration within a team. Typically, morale is higher in the workplace when people are getting along with each other. When co-workers are working as a team, it can help build relationships in the workplace and help the overall performance of the group. Generally, strong leaders lead by example.

44. The Health of the Organization The importance of maintaining a positive attitude in the workplace has a lot to do with improving the overall health of the organization. When people can show respect for one another and can value other’s opinions, it may help create a productive working environment. An ethical organization can occur when communities of people work together in an environment of mutual respect, where they can grow personally, build friendships and contribute to the overall goal.

45. 4-V Model of Ethical Leadership The 4-V model helps align the internal beliefs and values with the external behaviors and actions for the purpose of the common good. The four V’s stand for Values, Vision, Voice and Virtue , the characteristics that help create a strong ethical leader. In the end, the main goal of an ethical leader is to create a world in which the future is positive, inclusive and allows the potential for all individuals to pursue and fulfill their needs and meet their highest potential.

46. leadership values Values are the underlying beliefs that guide our decisions and actions and ultimately shape our days and careers. Leadership values are a subset of those values that positively influence one’s ability to lead effectively or be a ‘good leader.’ You can foster and develop leadership values with time. However, as with many character traits, you will probably have a tendency toward one specific leadership skill or another.

47. The importance of a leader with values Anyone in a leadership role should be aware of the values they hold, their strengths, and the areas they can improve on as they grow as a leader. Because your values determine how you execute leadership, the team environment you create, and the success of your company. The values you display as a leader will permeate your entire organization and affect its performance. Leaders who adhere to their values earn respect and commitment from their teams. Value-driven leadership can inspire others not just to follow them but to adopt those values as their own.

48. Important values of a leader Empower and development Vision Communication Reinforcement and influence Empathy Humility Passion and commitment Respect Patience Resilience Honesty and t r ans p a r e n cy Accountability Integrity

49. Empowerment and development As a leader, you are in a position of power. Instead of trying to keep all that power and control for oneself, an effective leader empowers others and amplifies their own impact as a result. This empowerment can come from formal employee training, ongoing coaching, and workforce development. Mentorship and the delegation of responsibilities can also help.

50. Vision Leaders have the important responsibility of creating and maintaining the organizational vision. When you center vision as a leadership value, this means you keep the big picture at the forefront of your decision-making. It also means employing foresight to plan for obstacles. Keep an eye out for anything that may get in the way of your company’s vision, and be ready to update the vision as you gain more experience and information. Successful leadership also includes the leader’s ability to communicate that vision to their team members. The message must be shared in a meaningful, actionable, and engaging way.

51. Com m uni c a t i on Communication is the foundation of any relationship. In a work setting, centering communication as a core leadership value manifests in many ways. It can take the form of conveying context to employees. Or it can be setting clear expectations for individuals and teams. A leader may have a clear vision, but unless communication is a driving value, others will not be able to share it.

52. Reinforcement and influence Positive reinforcement and recognition to your team members are important forms of communication. When things are busy, it can be all too easy to speed along without making an effort to show that you noticed someone’s contribution. However, positive reinforcement is a huge aspect of improving employee motivation and engagement. Not only that but in lifting your influence as a business leader. By demonstrating appreciative behavior, you encourage others to reinforce each other too. This helps boost morale across the organization.

53. Emp a t h y Empathy is the ability to understand others, see from their point of view, and feel what they are feeling. It is a value that is held in high regard by many senior executives and good business leaders. you can build a far stronger team by exercising empathy and understanding each person’s motivations with whom you work. Empathy will help you match people’s strengths and skills to roles where they can make the most impact. It will help you build and sustain positive and productive relationships. It will also help you recognize the core values of others on your team.

54. Humility Leaders must constantly be learning . To be in that receptive state of mind requires humility. Opportunities to build wisdom can easily be lost if you are not willing to recognize and process mistakes. Humility also means knowing when to ask for input from others. If you have a gap in knowledge in a certain area, seek advice from those with more experience or from coaches. If your strategy is not connecting with your audience, consult the people closest to the work or your customers.

55. Passion and commitment An extraordinary leader is not only capable of commanding influence or communicating successfully. They are also: committed to meeting organizational goals passionate about the company and their leadership role within it and demonstrate ferocious resolve when faced with adversity A leader with this kind of mindset can motivate everyone around them. Their passion and energy are so infectious that it drives and uplifts the entire team.

56. Respect As a leader, you can demonstrate respect through many of the behaviors already listed here: Empowering others Strong communication skills Recognition of employee abilities Empathizing with the situations of others

57. P a tien c e Patience is a value that is often learned with time but is an incredibly important skill for those in leadership roles. At its heart, patience is about delayed gratification. Leaders need to be patient with new hires who aren’t up to operating speed yet. They also require patience with existing team members who are working out how to deal with complex issues. This is especially true where the leader may be able to tackle with greater ease. Patience also benefits leaders who have long-term goals, such as quarterly or annual sales targets. These goals can only be achieved incrementally through perseverance and patience.

58. Resilience A key nature of business is change, and as a leader, you often take the brunt of big changes — or even initiate them. You must be able to weather these times, not only for yourself but for your team. This is not to say you can’t have human reactions to challenges, but ultimately your team will respond to how you handle hardship and communicate the outcomes.

59. Honesty and transparency Employees want a coach and leader who is honest and transparent about their performance, business objectives and directives, and internal company politics. Nobody likes to feel like they are being lied to or deceived. Transparency does not mean telling everyone everything as soon as you hear it — there is a time and a manner in which to convey information. Valuing transparency, in this case, would mean communicating why there is a reorganization and getting other company leaders on board with how it affects them and their teams.

60. Accountability One of the values that many employees admire in a leader is accountability. Accountability means taking responsibility for one’s duties and goals and, at times, owning responsibility for the shortcomings of one’s team. However, strong leaders also need to be prepared to hold their employees accountable for the tasks they are responsible for, which helps to promote personal growth with your team.

61. Integrity Integrity is a character trait that gains respect and trust. As a leader, integrity means approaching all of your work with consistency and coherently. Integrity means honoring commitments (including to yourself) and doing what you say you will do, as well as approaching challenges in ways that are coherent with other values and beliefs.