Character formation 2-Leadership, Decision-Making, Management and Administration

Chapter 1

Understanding Leadership and Management

The terms "leadership" and "management" are often used Interchangeably. While there is some overlap
between the work that leaders and managers do, there are also significant differences.

Leadership is a process by which an executive can direct, guide and influence the behavior and work of
others towards accomplishment of specific goals in a given situation. Leadership is the ability of a
manager to induce the subordinates to work with confidence and zeal.

In addition, leadership is the potential to influence behavior of others. It is also defined as the capacity to
influence a group towards the realization of a goal. Leaders are required to develop future visions, and to
motivate the organizational members to want to achieve the visions. While Davis (2019) defined
"leadership as the ability to persuade others to seek defined objectives enthusiastically. It is the human
factor which binds a group together and motivates it towards goals".

Leadership can have a formal or informal aspect. Leadership as opposed to leading usually implies that
the entities doing have "leadership skills" or competencies. Then there is leadership which does little
active leading, but to which followers show great respect.

Leadership is an ability of an individual to influence, motivate, and enable others to contribute toward
the effectiveness of and success of the organizations of which they are members (Soriano, 2010). While
Bobier (2013) defined leadership as an art of influencing and directing men in such a way as to obtain
their willing obedience, confidence, respect, and loyal cooperation in order to accomplish the mission.
Influencing others is the ability integral to leadership. A front-runner in a spirit may lead the race but he
does not have a position of leadership if he does not influence others in some way.

An effective leadership is demonstrated by one's ability to command respect and confidence of men.
Leadership is shown through the morale. discipline, esprit de corps, proficiency and effective unit. Thus,
leadership is a group dynamic since leaders are generally given the authority to influence an individual
and group behavior (Bobier, 2013).

On the other hand, management is the primary force within organizations for coordinating human and
material resources, and managers are responsible for organizational performance both current results
and future potentials. Management includes the human element of leadership as well as the application
of various technical skills such as decision making and planning (Boyatzis. 1982).

HOW IS LEADERSHIP DIFFERENT FROM MANAGEMENT?

Leadership and management differ from each other on the following:

1. Process vs. Vision. Effective leadership is centered on a vision to guide change. Whereas managers set
out to achieve organizational goals through implementing processes, such as budgeting, organizational
structuring, and staffing, leaders are more intent on thinking ahead and capitalizing on opportunities.

2. Organizing vs. Aligning.

The manager administers: the leader Innovates

The manager maintains; the leader develops

The manager focuses on systems and structure: the leader focuses on people

Managers pursue goals through coordinated actions and tactical processes, or tasks and activities that
unfold over stages to reach a certain outcome. For example, they may implement a decision-making
process when leading a critical meeting, or when devising a plan for communicating organizational
change. Leaders, on the other hand, are less focused on how to organize people to get work done and
more on finding ways to align and influence them.

3. Position vs. Quality.

The title "manager" often denotes a specific role within an organization's hierarchy, while referring to
someone as a "leader" has a more fluid meaning.
"Manager is a title. It's a role and set of responsibilities. Having the position of manager does not make
you a leader. The best managers are leaders, but the two are not synonymous. Leadership is the result of
action. If you act in a way that inspires, encourages, or engages others, you are a leader. It doesn't matter
your title or position."

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 gulding 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.

What are the Indicators of Leadership?

The following are as indicators leadership such as:

1. Morale. The state of mind of an individual with respect to the confidence, cheerfulness, discipline, etc.
2. Discipline. The state of order based upon submission to rules and authority.
3. Esprit de Corps. Loyalty to, pride in, and enthusiasm for the unit/organization friction displayed by its
members.
4. Proficiency. The physical, technical and tactical ability of the individual.
5. Effective Unit. The one that accomplishes the assigned mission, for which it was equipped, trained and
organized in the shortest possible time, with the least expenditures of resources and least confusion.

What are the different styles of leadership?

There are two main purposes why a leader exists: (1) to accomplish the mission: and (2) to look for the
welfare of men (Bobier, 2013). In accomplishing the mission of an organization, leaders may adopt some
of the following styles of leadership:

1. Autocratic by individual control over all decisions y a little input from group Autocratic leader is
highly authoritative. He makes decision without allowing subordinates to participate (Soriano, 2010). The
superior assumes full responsibility for all actions and seeks obedience from his subordinates in issuing
orders and commands.

2. Democratic members of the group participate in the decision-making. Democratic leader is one
which seeks ideas from subordinates and allowing them to participate in decision making, secure the
best results as a leader. This involves leader who is group oriented and promotes the active participation
of subordinates in planning and executing tasks (Badua & Garcia, 2010).

3. Free Rein - This is a leadership style wherein the leader plays down his role as such and exercise
minimum control and seldom gives his subordinates the attention Lor help they need. This includes
leader who provides mainly materials and information with minimum control. The leader who takes a
hands-off passive approach in dealing with subordinates.

What are the Principles of Leadership?

The following principles of leadership such as:

1. Be technically and tactically proficient

2. Know one's self and seek self-improvement.

3. Know your people and look out for their welfare

4. Keep your subordinates informed.

5. Set the example

6. Ensure that the task is understood, supervise and accomplished.

7. Train people as a team

8. Make sound and timely decisions.

9. Develop a sense of responsibility in subordinates.

10. Employ your command in accordance with its capabilities

11. Seek responsibility and take responsibility for actions.

Development of Self-Leadership

Everybody is a future leader, Leadership is therefore not an inborn trait, but It is developed to become a
leader through learning and training people with a sincere interest. The following are the ways of
developing self-leadership:
1. Clarity of Purpose. This means that each entity must have a vision and be able to set it up. Being
your own leader, your purpose or vision will be the foundation upon which you will build sett-leadership:
Without clearly planned expectations or intent for your life, you will be at risk, attempting to fulfill the
wishes or ideas of people for your life and you will end up lost in the middle of nowhere.

2. Alm at Success and Take Reasonable Risks. Risk-taking is a necessary-part of your life. Challenge
yourself to take on challenging assignments. Do not deter yourself or others from past failures rather
concentrate on success However, risks which are applicable to your intent should be fairly measured.

3. Spend Time to Reflect on Your Life. Reflections can also mean letting others make an objective
evaluation of you. Although you remain the active doer of the things that you are doing you may only
see things from your viewpoint. Taking some time off to think about life, (Compare and experience of
current and present to hopes of the future. You can never notice those small defects until you pause to
examine yourself.

4. Don't Tolerate Just Anything You should not risk your dreams. You should learn to be intolerant
to any suggestions or ideas that don't suit your vision. This intolerance is not just toward others but also
toward you, It involves not tolerating negative factors such as laziness, anxiety, and many others in your
nature.

Simple ways to lead yourself

1. Know your values and stick to them. The ones with real values and ethics are the most
trustworthy leaders. Find ideals that reverberate with your philosophy, temperament, and creeds to
become an effective leader. People tend to be drawn instinctively to somebody who has a dream, intent,
and dignity. One who treats people respectfully and is empathetic to their needs. Moke sure that you
know what type of leader you want to become Personal beliefs in leadership, core values, and the
implementation of those values help leaders become successful.

2. Move towards purpose. You can't be a leader unless you have a clean intention to help you
through the dark times. The aim at the end of a tunnel is like a light a hope that keeps us going-One has
to spend time questioning the real intent or inspiration behind being a leader. As a leader, you can
Inspire, guide, and encourage your subordinates to achieve larger objectives. If you have a clear purpose.
then you can make sure the team is aligned with a common purpose.

3. Keep improving yourself. Great leaders are working hard to improve expand and evolve into
better versions of them. Whether you've just started leading or you've been a veteran in your place,
make it a point to learn something new by going back home.

4. Make mistakes but never make the same mistake twice. The only thing that Sets a leader
different from a great leader is that he never make the same mistake twice. Note also that on the back of
disappointment always comes the greatest successes, Trying new stuff, and doing things that challenge
your comfort zone, is important, You might end up making mistakes whilst doing so Everyone does, Sa
over them there's no need to be ashamed.

5. Lead by example. None is easier than leading from the front. Not only is it a brave thing to do but
it is a very leading thing. Perhaps that's why they all find It toughest. The only thing that can turn you
into a leader is when you begin to act like one.

What are the desirable factors of leadership?

1. Loyalty. This is one of the most important factors of leadership. Many experienced administrators
and supervisors said that they would rather have a loyal man who is not such excellent officer than
disloyal man who is an excellent policeman otherwise.

2. Positive thinking. Real leaders will always be positive thinkers. They think in terms of how things
can be done, not why they can't. They maintain an open mind to changes, new ideas, training
opportunities.

3. Genuine interest and liking people. This can be found to supervisor who is mild mannered,
humble and friendly. They are approachable. They take time to see and hear their subordinates.

4. Initiative. It is evidence of open and alert mind. The man with initiative continually looks for
better ways to do things. He doesn't wait for the other fellow to do them.

5. Decisiveness. Good decisions can be arrived at with an understanding of what is important and
unimportant in a particular situation that is in question, what is reasonable and in consideration of the
best interest of the organization.

- Tact and courtesy. Leaders are habitually tactful and courteous. Whether on the street of office,
supervisors can be gentleman. Tact is the saying and doing the right thing at the right way. While,
Courtesy is defined as treating others with respect

6. Sincerity and Integrity. Sincerity is the greatest force in the world, it shines in the eyes and lend
strength to the voice, so that when two people meeting for the first time may judge each other fairly.
One can get along with another man who is sincere no matter whether he is right or wrong because
you know where he stands

7. Unobtrusive aggressiveness. Leaders have the drive and will power to do things. They must be a
hunger to be somebody, a will to get ahead.

8. Humbleness. Leaders realize that others can do things just as well or better that they are.

9. Quite self-confidence. Leaders are not arrogant. The mousy, hesitant supervisor who lacks confidence
in himself cannot inspire confidence in his people.
10. Teaching ability. A great part of the supervisor's job consists of instructing his men in one way or
another.

11. Friendly personality. Real leader looks things in friendly fashion.

The Characteristics of a Good Leaders

A good leader should have integrity, self-awareness, courage, respect. compassion, and resilience. They
should be learning agile and flex their influence while communicating the vision, showing gratitude, and
collaborating effectively.

1. Self-Awareness, this is a more inwardly focused trait, self-awareness and humility are paramount
qualities of leadership. The better you understand yourself and recognize your own strengths and
weaknesses, the more effective you can be as a leader.

2. Respect. Treating people with respect on a daily basis is one of the most important things a
leader can do. It helps ease tensions and conflict, fosters trust and improves your effectiveness.

3. Compassion. Compassion is one of the most powerful and important acts of leadership. It's more
than simply showing empathy or even listening and seeking to understand as compassion requires
leaders to act on what they learn. After someone shares a concern or speaks up about something, they
won't feel truly heard if their leader doesn't then take some type of meaningful action on the
information, our researchers have found. This is the core of compassionate leadership, and it helps to
build trust, increase collaboration, and decrease turn over across organizations.

4. Vision. Motivating others and garnering commitment are essential parts of leadership.
Purposedriven leaders ensure they connect their team's daily tasks and the values of individual team
members to the overall direction of the organization, This can help employees find meaning in their work
- which increases engagement, inspires trust, and drives priorities forward. You'll want to communicate
the vision in ways that help others understand it, remember it. and go on to share it themselves.

5. Communication, The best leaders are skilled communicators who can communicate in a variety
of ways, from transmitting information and storytelling to soliciting input and using active listening
techniques. They can communicate well both orally and in writing, and with a wide range of people from
different backgrounds, roles, levels, geographies, and more. The quality and effectiveness of
communication among leaders at your organization will directly affect the success of your business
strategy, too.

6. Learning Agility. It is the ability to know what to do when you don't know what to do. If you're a
"quick study" or are able to excel in unfamiliar circumstances, you might already be learning agile. But
anybody can faster and increase learning agility through intentional practice and effort. After all, great
leaders are really great learners.
7. Collaboration. The most effective leaders can work with a variety of colleagues of different social
identities, locations, roles, and experiences. As the world has become more complex and
interconnected, good leaders find themselves spanning boundaries and learning to work across various
types of divides and organizational silos. When leaders value and embrace collaboration, whether within
their teams or cross-functionally, several benefits arise-including increased innovation, higherperforming
teams, and a more engaged and empowered workforce.

8. Influence. For some people. "influence" may sound unseemly. But as a leader. you must be able
to influence others to get the work done you cannot do it all alone. Being able to persuade people
through thoughtful use of appropriate influencing tactics is an important trait of Inspiring, effective
leaders.
Influence is quite different from manipulation, and it needs to be done authentically and transparently. It
requires high levels of emotional intelligence and trust.

9. Integrity. Integrity is an essential leadership trait for the individual and the organization. It's
especially important for top-level executives who are charting the organization's course and making
countless other significant decisions.

10. Courage. This fosters a coaching culture that supports courage and truth telling. Courage enables
both team members and leaders to take bold actions that move things in the right direction.

11. Gratitude. Being thankful can lead to higher self-esteem, reduced depression and anxiety, and
better sleep. The best leaders know how to show frequent gratitude in the workplace.

12. Resilience. Resilience is more than the ability to bounce back from obstacles and setbacks-it's the
ability to respond adaptively to challenges. A good leader focuses on resilience, both taking care of
themselves and also prioritizing leading employee wellbeing, too thereby enabling better performance
for themselves and their teams.

In addition, stated differences between leadership and management, these are the following:

1. Managers do things right; leaders to the right thing.

2. Managers are efficient; leaders are effective.

3. Managers are position oriented, leaders are people oriented.

4. Managers are aggressive: leaders are assertive.

5. Managers control: leaders empower.

6. Managers accede to goals: leaders set them.

7. Managers are conformists: leaders are reformists.

To sum up, leadership is about setting a new direction for a group: management is about directing and
controlling according to established. principles. However, someone can be a symbolic leader if they
emerge as the spearhead of a direction the group sets for itself.

The Sources of Leader's Power

The leader's ability to influence others is largely determined by the power that the leader is able to exert
in a given situation. This power of supervisors over subordinates is known as social power (Soriano
2010).

The following are the leader's social power:

1) Coercive Power

This is based on subordinate's fear of the manager.

This is a power stemming from the ability to take away or threaten to takes away something of value to
the individual for failing to comply or cooperate (Badua & Garcia 2010)

Leaders who rely on coercive power uses punishment as their primary means of influencing others
(Soriano, 2010).

According to Gaines and Worrall (2012), this is the opposite of reward power. It is embodied in one's
ability to punish others. Punishment is associated with an organization's disciplinary power.

2) Expert/Expertise Power

This stems from the expertise of the person (Badua & Garcia 2010), skills or knowledge that convinces
subordinates that leader's view should serve as a basis for the action (Soriano 2010).

Followers accede to the preferences of a leader with high connection power because they wish to gain
more favor with such a well-connected person (Soriano, 2010).

3) Informational Power
This is based on the leader's knowledge of or access information that is believed to be valuable to others.

A leader who has high information power is willingly followed by those who need the leader's
information or simply enjoy "being in on things" (Soriano 2010).

Reward, coercive, and legitimate power represent the power which an organization bestows on the
individual. These sources of powers are viewed as tools to be used to motivate and manage the
subordinate group.

Expertise and referent power are types of personal power. These are derived from the individual's
personality and standing within an organization. Informal leaders acquire power through expertise and
reference, while formal leaders accumulate power from all sources.

Chapter 2

THEORIES OF LEADERSHIP

Leadership is the practice of driving people to achieve goals. This plays an important role in success and
efficiency of subordinates. Leaders do this by providing many means of shaping the actions of
subordinates. It's a process whereby an individual influences others and guides the organization in a
manner that makes it more cohesive and coherent.

While leadership is learned, a leader's skills and knowledge can be influenced by his or her attributes or
traits, such as beliefs, values, ethics, and character. Knowledge and silks contribute directly to the
process of leadership. while the other contributes give the leader certain characteristics that makes him
or her unique. A leader might have learned the skills in counselling others, but her traits will often play a
great role in determining how he counsels.

In the world of leadership there are many theories about how leadership works, what makes good
leaders, and how to be effective. There are many leadership styles that managers can employ and their
impact varies based on the group they are leading and the industry they are in.

These leadership theories explain how leadership styles work within a company to bring success. If you
are studying to become a business leader or manager, it's important to understand these different
leadership theories and how they impact your leadership and management style.

What is Leadership Theory?

Leadership theories are the explanations of how and why certain people become leaders. They focus on
the traits and behaviors that people can adopt to increase their leadership capabilities. Some of the top
traits that leaders say are vital to good leadership include:

Strong ethics and high moral standards

Great self-organizational skills

Efficient learner

Nurtures growth in employees

Fosters connection and belonging

There are several leadership theories that aim to explain how leadership succeeds. These theories
identity the factors that influence leadership success. Most of these theories focus on the individual
traits, behaviors, or situations as the factors that affect leadership success (Giblin, 2017).

"The function of leadership is to produce more leaders, not followers." This is considered
transformational leadership-a leader can alter the perspective or psychology of a follower and shift them
to want to become a leader too. This suggests that at the end of the day, leadership should be elevating
and inspiring.

Leaders should push the people they lead to new heights, helping them to grow into what they know
they can become. Transformational leadership is an important psychological perspective for leaders to
study and understand if they want to really influence and impact others. Different leadership theories
address to create stronger and more effective leadership, helping followers become encouraged to be
leaders themselves.

Major Leadership Theories

While there are dozens of leadership theories and psychology, there are a few that are more well-known.
These more common leadership theories are important to understand and recognize, especially if you
currently are, or are studying to be business leader in the future. Understanding psychological and social
impacts of effective leadership will help you determine the kind of leader you want to be.

1. Behavioral Theory. The behavioral leadership theory focuses on how leaders behave, and assumes
that these traits can be copied by other leaders. Sometimes called the style theory, it suggests that
leaders aren't born successful, but can be created based on learnable behavior.

Behavioral Theories of leadership focus heavily on the actions of a leader- this theory suggests that the
best predictor of leadership success is viewing how a leader acts. Action rather than qualities are the
focal points of behavioral learning theory.

Patterns of behavior are observed and categorized as "styles of leadership" in this theory. Some of the
styles of leadership include task-oriented leaders, people-oriented leaders, country club leaders,
statusquo leaders, dictatorial leaders, and more. At the end of the day, the actions and actual behaviors
of a leader are what defines success in this theory.

The Behavioral Theory has many advantages primarily that leaders can learn and decide what actions
they want to implement to become the kind of leader they want to be. It allows leaders to be flexible
and adapt based on their circumstances.

Another great benefit of this leadership style is that it suggests anyone is capable of becoming a leader.
Some disadvantages of the behavioral theory are that while it allows flexibility, it doesn't directly suggest
how to behave in certain circumstances. There are dozens of leadership styles that stem from the
behavioral theory, but there isn't a right one for every circumstance.

A great example of the Behavioral Theory is looking at a task-oriented leader vs. a people-oriented
leader, If there's a problem with a team, a task- oriented leader will look at the process to see if
something needs to be adjusted with the workflow. A people-oriented leader will look at the individuals
and go right to them, asking what the issue is. Whatever behaviors you choose, the behavioral
leadership theory helps leaders focus on their actions and utilize their decisions to be a great leader.

2. Contingency Theory. The Contingency Leadership Theory, sometimes called situational theory, focuses
on the context of a leader. These theories look at the situational effects of the success or failure or a
leader. A leader's effectiveness is directly determined by the situational context. While a leader's
personality is a small factor in their success, the most important factor is the context and situation of the
leader.

This theory takes the specific leadership styles and suggests that good leaders can adjust their leadership
style situationally. It also suggests that it may be best to find the right kind of leader for a specific
situation. Types of contingency theories include the Hershey and Blanchard's Situational Theory, the
Evans and House Path-Goal Theory, and Fiedler's Contingency Theory.

The Contingency Theory has great advantages, including that leaders are able to be effective no matter
their situational context. However, this theory does have criticism suggesting that there isn't enough
detail that goes into the context of any situation.

Contingency Theory focuses on the importance of a situation, but may not focus enough on the
psychology of the employees or the company itself. It also may not focus enough on how leadership
styles can change over time.

There are internal and external factors that impact a leader and their situation. The type of company, the
size of the team, and the innate leadership style of an individual are internal factors. External factors may
include the customer feelings and the marketplace. All of these situations play a factor into the
Contingency Theory.

3. Great Man Theory. The great man theory of leadership, sometimes called the trait theory,
suggests that good leaders are born. They have innate traits and skills that make them great, and these
are things that can't be taught or learned. The trait theory suggests that leaders deserve to be in their
position because of their special traits.

There is a great amount of criticism for the trait theory, mainly that leaders are either born or not, that
there isn't work or effort that is needed to be put in so you can become a leader. This suggests that social
or psychological leaders are predetermined and that leaders are unable to come from the shadows-they
are either chosen or not. There is also criticism that most of the traits associated with this theory are
inherently masculine, and don't match the real psychology of good leaders.

People cite Abraham Lincoln, Alexander the Great, Queen Elizabeth I, and many others as their examples
of the great man theory. These social giants utilized their skills to lead nations. High levels of ambition
and determination are usually seen in leaders that appear to bring this theory to life.

Today, leaders that climb to the top may view their traits and abilities as part of the "great man" theory.
So it may appear that leaders get to their position based on their inherit gifts.

4. Trait Theory. Some personality traits may lead people naturally intro leadership roles. This theory
focuses on identifying different personality traits and characteristics that are linked to successful
leadership across a variety of situations. This line of research emerged as one of the earliest types of
investigations into the nature of effective leadership and is tied to the "great man" theory of leadership
first proposed by Thomas Carlyle in the mid-1800s.

5. Management Theory. The Management Theory is sometimes called transactional leadership, and
focuses on supervision, organization, and group performance. Transactional leadership is a system of
rewards and punishments, and transactional leadership is regularly used in business.

When employees do something successful, managers reward them. When they fail, they may get
punished. Transactional rewards and punishments are given based on the idea that people really only do
things for the reward. Their psychology doesn't allow human beings to do things out of goodness, but
rather out of the promise of a reward.

The management leadership style can be extremely effective. Positive reinforcement is known for
working wonders with employees, encouraging and motivating them to succeed. But there is lots of
criticism around leadership that is strictly transactional as well. Consequences and punishments can
decrease morale in an organization, negatively impacting employees. It can also be seen as a lazy
leadership style rewards and punishments are a relatively simple way to lead employees.

A common example of this management style is a leader that offers a cash bonus for employees who
meet a goal. Or a leader who makes employees do extra paperwork if they miss a deadline.

6. Participative Theory. Participative leadership isn't as common in the corporate world. Sometimes
called democratic leadership, this leadership theory suggests that employees be directly involved in
decision making in their organization.
The leader simply facilitates a conversation and then takes all the suggestions, and comes up with the
best possible action. In this theory, everyone is very involved with decisions for the team and
organization, with the leader simply helping direct the charge.

There are many advantages to this theory. Employees teel more engaged and motivated when they are
directly involved in decisions and outcomes for their company. This theory is not without criticism
however-some suggest that this type of style makes leaders appear weak or unnecessary. It is also a
criticism that leaders in this theory don't actually get the best outcomes, because they are too engaged
in what people want more than what the company needs.

Bill Gates is a well-known example of Participative Theory. While this theory is still hotly debated, there
are many examples of companies that work to incorporate employees more in the decision making
process. In this theory, a leader may have a meeting to ask employees how to solve a particular problem.
They encourage employees to be open and honest about their thoughts. They take all the suggestions,
and meet with other leaders to discuss them. Leaders then make a decision based on the input from
employees and their own decision making. Employees tend to appreciate this style, though it can be less
effective overall.

7. Power Theory. This theory looks at the way a leader utilizes their power and influence to get
things accomplished. French and Raven's Five Forms of Power is a commonly known power theory of
leadership. It looks at positional power and personal power and how they impact leader's choices and
outcomes,

This theory may appear to be highly effective-leaders with great power may seem highly efficient and get
things done quickly. However, most employees don't appreciate power leadership. They want a leader
who doesn't wield power over them, but works with them and encourages them. Thus the greatest
criticism of this theory is that it doesn't reach the end goal of inspiring and encouraging employees, but
rather makes them feel dominated.

The power theory can be seen in organizations where hierarchy and promotion is key to success.
Employees in power theory companies see that their only way to influence change or impact the
company is to gain power of their own. This can result in low morale, political, and cliquey climates in
the office.

8. Relationship Theory. 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.

These kinds of leaders are focused on making work enjoyable for as many people as possible, and they
want to foster a positive work environment. Studies show that this kind of leadership behavior can be
the most effective for many employees. Relationship-oriented managers often get better results from
their employees.
There are many advantages to this kind of leadership. Employees feel confident in their leader and want
to follow them. They are also inspired to be good leaders to others. Mentorship provides great
opportunities to foster growth in employees, and encourages them to stay at the organization for a
longer period of time.

There are some critics for this kind of leadership however, including thoughts that relationship driven
leaders may be unwilling to view employees who are causing problems at face value, they can let
relationships get in the way of work, and they can be guided to favor people over productivity. However,
most experts agree that relationship driven leaders are actually more effective at the end of the day.

An example of relationship theory would be a manager who takes a newer employee under her wing.
She works to help this employee understand how they fit within the organization, encourage them to be
open about questions and problems, and create a positive working relationship. This employee then is
encouraged to work hard, point out issues, and help solve problems for the company.

Ethics in Leadership

Ethics is about the types of values and morals that a person or a community finds acceptable or
necessary. In addition, ethics is concerned with the morality and actions of individuals. They look to
leaders when it comes to ethics to lead on ethics and take responsibility for both good and bad results.

Ethically-leading leaders are role models, promoting the value of ethical standards, keeping their people
accountable for those principles, and crucially- designing environments in which others work and live. It
has been shown that ethical leadership produces a variety of positive results, and reduces the risk of
many negative results. Thus, leadership can be the most effective tool in an ethical system designed to
support ethical behavior.

Ethical leadership is leadership motivated by respect for ethical beliefs and values, and other people's
integrity and rights (Watts, 2008). It is therefore related to values such as honesty, sincerity, care, beauty,
and fairness.

How to become an Ethical Leader?

1. Define and align your values

2. Champion the importance of ethics

3. Hire people with similar values

4. Promote open communication

5. Beware of bias
6. Lead by example

7. Find your role models

8. Care for yourself so you are able to care for others

Impacts of Ethical Leadership

1. The well-being of the individual

2. The energy of the team

3. The health of the organization

The 4-V Model of Ethical Leadership

The 4-V model aims to reconcile internal beliefs and values for the common good with extemal behaviors
and factors. The four V's stands for Values. Vision. Voice and Virtue. These characteristics help to build a
strong ethical leader. In the end, an ethical leader's main goal is to create a world in which the future is
positive, inclusive, and allows all individuals to pursue and fulfill their needs and fulfill their maximum
potential.

According to this model, leaders make the difference. The first step begins with self-knowledge and the
discovery of one's own core values. Only then can the ethical leader share his core values with others
and connect himself to society in doing so.

Values. In order to develop good Ethical Leadership, the leader needs to first go in search of his own core
values.

Vision. It is about the leader's ability to implement his actions in such a way that they lead to a certain
goal (vision).

Voice. The ethical leader must have a voice, in order to formulate the vision for others and to make it
clear in a way that motivates them to act.

Virtue. Ethical leaders are role models because of their virtuous behavior and will strive to do the right
things and act appropriately.
However, Dr. bill Grace, founder of the 4- V model added three extra key elements to his 4-V model, in
order to achieve ethical leadership:

Service connects the vision to the values. From the values, the vision will be revealed through the
service.

Polis stands for politics. It indicates that an organization deals with the art of politics when the vision has
to be communicated to public groups.

Renewal stands for innovation. Although the voice can be expressed in different ways, the ethical leader
will have to regularly consider whether actions are in accordance with values and vision.