- Books Name
- BUSINESS STUDIES-XII
- Publication
- ABCD CLASSES
- Course
- CBSE Class 12
- Subject
- Business Studies
LEADERSHIP
The ability of an individual to maintain good interpersonal relations with followers and motivate them to contribute to achieving organizational objectives.
Importance of Leadership
- Creates confidence: creates confidence among individuals to recognize their qualities and capabilities.
- Assigns tasks and provides psychological support: Assigns tasks and provides psychological support to his subordinates by ensuring that people have proper material support to accomplish their jobs.
- Necessary guiding and inspiring employees: creates needs in the employees to perform high and helps in the attainment of organizational goals.
- Developing team spirit: People in organizations are involved in different activities. Leadership mixes individual goals with group goals.
- Link between management and workers: Explains the goals of the organization to the workers and recommends their cases for reward, promotion, etc.
- Ensures required changes in the organization: Overcomes the problem of resistance to change and introduces it with minimum dissatisfaction. He persuades, clarifies and inspires people to accept changes wholeheartedly.
Type of leadership style
Autocratic Leadership Style:
- Manager keeps maximum power and decisions.
- Does not consult staff nor allowed to give any suggestions
- Staff obeys orders without receiving any explanations.
Required When:
- New untrained staff.
- Limited time to make a decision
Not used
- When staff becomes tense and fearful.
- Staff expect their opinions heard
- Low staff morale, high turnover and absenteeism.
Democratic Leadership Style/ participative style
- Encourages staff to be a part of the decision-making.
- Keeps staff informed about everything and shares decision making
Required When
- To keep staff informed about matters that affect them.
- Wants to provide opportunities for staff to develop a high sense and job satisfaction.
- Staff want to encourage team building and participation
Should not be used
- When not enough time to get everyone’s input easier.
- Manager feels threatened by this type of leadership.
Delegative/Free Rein Leadership / Laissez Faire
- Leader gives complete freedom to the subordinates and Avoids the use of power.
- Depends largely upon the group to establish its own goals and work out its problems.
Required When
- Employees are highly skilled, experienced, educated, trustworthy and experienced
- Employees have confidence in their work and can complete
Should not be used
- If the manager cannot provide regular feedback to let employees know how well subordinates are doing.
- When manager escapes responsibility and is hopes the employees do the task