Leadership for Businesses
Leadership is followership. A good leader leads,but does not push. Effective leadership can guide a group towards certain ideals without exerting much force. Managers who possess the quality of guiding and and directing the subordinates under inspired impulses can be called business leaders. Leadership is concerned with getting results through people and implies the Organization of staff into productive teams, groups and departments. Leadership entrails the creation of human structures, their motivation and direction; the resolution of conflicts at the workplace, creating vision for the entire business and providing resources in support of this.

Leading is one important function of management only next to planning and organizing. It is the liveliest element in the management process. It initiates actions to translate the decisions into concrete actions. Managers have to lead their subordinates through guiding and motivating. Leading involves directing, influencing and motivating to perform essential tasks.
Manager can perform various managerial functions more effectively by providing proper leadership to his subordinates. This makes leadership an inevitable aspect of management process itself. Leadership is essential for the success and stability of a business enterprise. Mangers possessing leadership qualities are called business leaders.

Every manager has to act as a leader in his area of operation. This means he has to guide, instruct, lead and motivate his subordinates so as to use their skills, efficiency, capacity etc. for the benefit of his Organization. He has to influence the behavior of his subordinates and get the work done through their collective efforts. Leadership qualities are required in order to conduct various managerial functions effectively. Each and every group of people engaged in a particular activity needs a leader in order to guide, co-ordinate and control their efforts. In this sense, leadership is required for the conduct of economic, social, political or cultural activities. A college principal, secretary of a co-operative society or of a sports club or cultural association act as leaders in their respective fields. Mahatma Gandhi, Dr. Babasaheb Amebedkar, Nelson Mandella, John F. Kennedy, Shri. Narendra Modi, Sardar Patel, Abraham Lincoin, Dhiribhai Ambani, J.R.D Tata, Shri. Biju Pattnaik are known leaders in different filed of work in entire World. Here, we are concerned only with managerial leadership. Managerial leadership is that part of a manager's activities by which he/she influences the behavior of his/her subordinates towards a desired objectives or results.
Ingredients of Leadership
Every group of people that performs job has same person as its head who is skilled in art of leadership. This skill seems to be a compound at least four major ingredients.
1.Power
2.Fundamental understanding of people
3.Ability to inspire followers
The ability to act in a manner
That will develop a conducive climate to responding and rousing motivations.

1.Power
The first ingredient of leadership is power. Power may be define as a strong influence on the direction of an individual's behavior. There are five kind of power.
1.Legitimate Power: The official position of a person is organization is known as legitimate power.
2.Coercive Power: A person's ability to create fear in other individuals is known as coercive power.
3.Reward Power: This power arises from ability of some to grant reward is known as reward power.
4.Expert Power: This power comes from the expertness of a person or a group.
5.Referent Power: This is the power of admiring high esteemed leader by individuals.
6.Decision Making Power: This power arises from the power of positions.
2.Fundamental Understanding of People
The Second ingredient of leadership is fundamental understanding of people. A manager or any other leader who knows the present state of motivation theory and understands the elements of motivation is more aware of the nature and strength to define and design ways satisfaction.
3.Ability to inspire followers The third ingredient of leadership is an ability to inspire followers to apply their full capabilities to a project. Inspirations also come from group heads. They may have qualities of charm and appeal that increase loyalty, deviation and strong desire in followers that the leaders want. This is not matter of need sanctification; It is a matter of people giving unselfish support to a chosen objective.
4.The Ability to act in a manner
The forth ingredient of leadership is related to style of leader and the climate he or she develops. The strength of motivation greatly depends on expectations, perceived rewards, the task to be done and other factors that are part of an environment as well as an organizational climate.
Principle of Leadership
The fundamental is since people tend to follow those who in their view offer them a means of satisfying their own personal goals. The more managers understand what motivates their subordinates and how these motivation operate, and the more they reflect their understanding in caring out their managerial actions, the more effective they are likely to be as leaders.
Characteristics of Leadership
1.Involves guiding and motivating: Leadership is a managerial process of guiding and motivating the subordinates for achieving organizational goals/objectives. For motivating, communicating is necessary. Leadership is described as an art of influencing and inspiring subordinates to perform their duties efficiently.
2.Needs subordinates and common interests: It pre-supposes the existence of subordinates. There must be common interest for the leader and his followers due to which they cooperate and participate for participate for achieving common objectives.
3.Promotes interest in the work: The purpose of leadership is to influence, motivate and encourage subordinates to take active interest in the work assigned and give the best results.
4.Needs support from all: The leader must recognize the presence of all employees irrespective of their position. The leader cannot become successful unless he obtains support from all.
5.Influences subordinates through personal qualities: A leader understands the problems of his subordinates and influences them by his personal qualities.
6.Dynamic and continuous process: Leadership is a dynamic and continuous process. It is a regular activity of guiding and motivating subordinates for improving their performance and contribution towards organizational objectives.
7.Leadership is situational: An ideal leadership is always situational. A leader has to study the prevailing situation and provide appropriate leadership to his subordinates.
8.Assumes obligation: A leader always inspires followers. In the event of failure, he does not shift the responsibility to his subordinates but accepts his personal weaknesses in performance. A leader leads by settings good example.
9.Needs interaction with followers: The objective of the leader and his subordinates should be the same. If the leadership attempts for one purpose and his subordinates for some other purpose, it is no leadership. Their interest must be identical.
10.Achievement of objectives: The success of a leader largely depends on his ability to achieve organizational objectives. When a leader fails to attain the objectives, he is of no utility to the management.
LEADERSHIP AND MANAGEMENT
Leadership and management are the terms that are often considered synonymous. It is essential to understand that leadership is an essential part of effective management. As a crucial component of management, remarkable leadership behavior stresses upon building an environment in which each and every employee develops and excels. Leadership is defined as the potential to influence and drive the group efforts towards the accomplishment of goals. This influence may originate from formal sources, such as that provided by acquisition of managerial position in an organization.

A manager must have traits of a leader, i.e, he must possesses leadership qualities. Leaders develop and begin strategies that build and sustain competitive advantage. Organizations require robust leadership and robust management for optimal organizational efficiency.
Differences between Leadership and Management
Leadership differs from management in a sense that:
1.While managers lay down the structure and delegates authority and responsibility, leaders provides direction by developing the organizational vision and communicating it to the employees and inspiring them to achieve it.
2.While management includes focus on planning, organizing, staffing, directing and controlling; leadership is mainly a part of directing function of management. Leaders focus on listening, building relationships, teamwork, inspiring, motivating and persuading the followers.
3.While a leader gets his authority from his followers, a manager gets his authority by virtue of his position in the organization.
4.While managers follow the organization's policies and procedure, the leaders follow their own instinct.
5.Management is more of science as the managers are exact, planned, standard, logical and more of mind. Leadership, on the other hand, is an art. In an organization, if the managers are required, then leaders are a must/essential.
6.While management deals with the technical dimension in an organization or the job content; leadership deals with the people aspect in an organization.
7.While management measures/evaluates people by their name, past records, present performance; leadership sees and evaluates individuals as having potential for things that can't be measured, i.e, it deals with future and the performance of people if their potential is fully extracted.
8.If management is reactive, leadership is proactive.
9.Management is based more on written communication, while leadership is based more on verbal communication.
IMPORTANCE OF LEADERSHIP
Leadership is an important function of management which helps to maximize efficiency and to achieve organizational goals. The following points justify the importance of leadership in a concern.
1.Initiates action- Leader is a person who starts the work by communicating the policies and plans to the subordinates from where the work actually starts.
2.Motivation- A leader proves to be playing an incentive role in the concern's working. He motivates the employees with economic and non-economic rewards and thereby gets the work from the subordinates.
3.Providing guidance- A leader has to not only supervise but also play a guiding role for the subordinates. Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently.
4.Creating confidence- Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates, explaining them clearly their role and giving them guidelines to achieve the goals effectively. It is also important to hear the employees with regards to their complaints and problems.
5.Building morale- Morale denotes willing co-operation of the employees towards their work and getting them into confidence and winning their trust. A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals.
6.Builds work environment- Management is getting things done from people. An efficient work environment helps in sound and stable growth. Therefore, human relations should be kept into mind by a leader. He should have personal contacts with employees and should listen to their problems and solve them. He should treat employees on humanitarian terms.
7.Co-ordination- Co-ordination can be achieved through reconciling personal interests with organizational goals. This synchronization can be achieved through proper and effective co-ordination which should be primary motive of a leader.
Trait Approach Theory
The traits approach theory was one of the first attempts to explain the leadership based on personal traits. Traits are inborn or acquired personal qualities of an individual. They include physical qualities and the qualities of head and heart.
Traits theory refers to certain traits/Characteristics which separate leaders from non-leaders. Such traits enable some to rise above their followers.
The basic traits useful for leadership include height, energy, looks, knowledge and intelligence, imagination, self-confidence, integrity, fluency of speech, mental balance, enthusiasm, courage, sociability and friendliness and so on.

According to the traits theory, an individual possessing such traits is usually able to influence others and gets the status of a leader. This suggests that a leader is quite different from an average person in regard to personal qualities such as intelligence, perseverance and overall personality including physical features.

The traits theory suggests that leaders are above the followers in regard to personal traits. A fair combination of such traits makes them influential and impressive as compared to others.

Traits theory indirectly supports the view that leaders are born and not made. Researchers have suggested different traits of leaders. Such traits are similar to physical. psychological, mental, intellectual and other qualities which are normally treated as essential in the case of an ideal leader. It may be noted that some traits are innate while some others can be acquired through special efforts.

The traits theory is based on the personal qualities(inborn/acquired) of an individual. Such qualities play a positive role in building leadership. A person becomes leader due to such traits. The theory is based entirely on personal traits and their contribution in developing leadership.
Behavioral Theories of Leadership
The behavioral approach theory is an extension of the traits theory and is superior in certain respects. The traits theory failed to explain what caused effective leadership. The behavioral approach is based on the study of behavior of a leader.

Leadership grows not by traits but by the acts or experience of a person. The behavioral theory is based on the assumption that leaders are not born but they develop gradually by experience and maturity. The attention is given to what leaders do(i.e, their behavior) rather than to what they are. A leader learns new traits through his experience(behavior or acts). The focus point, here, is on what the leader does while leading.

This behavioral theory suggests that a leader do not behave in the same manner under all situations. Similarly, his actions are not identical under all situations which he faces. He adjusts his behavior as per the need of the situation. There is an element of flexibility in his approach and behavior. He studies the situation and adjust his leadership style accordingly. He adopts different leadership styles to meet of different situations.

The behavioral approach theory is practical in nature. It gives more attention to acts and behavior of a person and not to the personal traits. Leadership develops by experience and not by inborn traits. A leader has to acquire certain qualities by experience only.

Like the traits theory, the behavioral approach oversimplifies the complexities of the leadership process. However, the behavioral approach is responsible for the development of a classification of leadership styles which has provided managers suitable opportunities to secure greater insight into their own behavior.
Situational or Contingency theories of Leadership
Situational/Contingency theory is a new addition to the existing theories of leadership. It is a combination of different leadership styles such as autocratic, democratic and so on. An ideal leader studies the overall prevailing situation, draws conclusions about the whole situation and adopts the leadership style which is most appropriate to the prevailing situation. He is not concerned with one specific leadership style but will use any style as per the available situation. He is interested in achieving his objectives and is willing to use suitable means for this purpose. Sometimes he may be democratic but may be autocratic on some other occasions. "Different strokes for different folks" is his leadership approach. He will consider the group of employees(skilled,unskilled,supervisory,etc.) to be handled and adjust his leadership style accordingly. He will not use one leadership style for controlling/motivating all categories of employees. On the other hand, he will be democratic with some categories of employees and autocratic with the employees working at the other level.In other words, adjusting the leadership style as per the need of the situation or as per the group of employees/subordinates to be handled is the essence of situational leadership style. In brief, he studies the situation and adjust his leadership style accordingly. He adopts a practical approach in order to get his work done i.e achievement of organizational objectives. In brief, in the situational leadership style, the leader adopts practical and flexible approach in decision-making. This is the essence of situational/contingency theory or approach.

Contingency approach concludes that there is no "one best style" of leadership under all conditions. Efficient leadership style varies with situations and an efficient leader is one who studies the prevailing situation and finds out the leadership style which would be most suitable for the given situation. This is natural as a simple cookbook approach for selecting the best leadership style does not exist. A god leader has to study the situation and adjust his leadership style accordingly. Here, the focus is on the situation is on the situation and not on the personal qualities and behavior of a leader.

The situational theory suggests that a manager's leadership style should vary with the situation. This leadership model is simple and appealing. However, it ignores several other critical elements that determine leadership style and it doesn't have a wide accepted research base. In spite of the limitations, this leadership model achieved considerable popularity and also awakened many managers to the idea of contingency approaches to leadership style.

Books by Surendra Nath