Importance and determinants of Leadership

PSYCH-105 Industrial Psychology

Chapter 7: Leadership

Unit 1

Unit 2

Unit 3

Unit 4


Importance of Leadership

1. Providing Inspirations to Employees

The leaders have direct contacts with the subordinates and they always motivate the employees for higher performance and achievement of goal. That is why leadership is considered as an important factor for the success of the organization. Leaders also act as guides as whenever the employees are in trouble, leaders guide them in the right direction of achievement of organizational goal.

2. Securing Cooperation

Leaders try to secure the willing cooperation of the employees as they develop feeling of initiative and enthusiasm in the employees. The leaders develop the spirit of teamwork and convince the subordinates that they can achieve their goal only when the team goal or group goal is achieved.

3. Creation of Confidence

A good leader can instill confidence in his followers by directing them and guiding them for success. The leaders try to recognize the hidden talent and qualities of the employees and encourage them to highlight these hidden talents to boost up their confidence level. Generally employees fail to realize or recognize their abilities and capabilities. Leaders recognize their abilities which provide psychological support and confidence in the employee.

4. Providing Conducive Environment

Efficiency of performance depends on the work environment. Leadership aims at creating and maintaining a satisfactory environment for employees to contribute their maximum towards achieving the goals. 

5. Building Higher 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. High morale leads to high productivity and organizational stability.

6. Facilitation of Change

The environmental effect on the organization through legal, technical, cultural, economical factors etc. can call for professional changes in the set up and a leader helps in bringing changes and to adapt with them.

7. Source of Motivation

Leadership is the motivating power to group efforts. Effective leadership motivates the subordinates for higher productivity.

8. Development of Team Spirit

Effective leadership promotes team-spirit and teamwork which is quite essential for the success of any organization.

9. Overcoming Resistance to Change

A leader overcomes resistance, if any on the part of followers to organizational changes; through explaining to them the utility of such changes to both—the enterprise and the employees.

Determinants of Leadership

• Leader’s Traits

Successful leaders are able to influence the attitudes beliefs and behaviour of their followers through their qualities or traits. The important leadership traits include Intelligence, Ability, Attitude, Initiative, Motivation, Physical feature, Honesty, etc.

• Characteristics of Followers or Subordinates

The style of leadership depends upon the nature of followers or subordinates and their needs and aspirations. For example, if the followers are active, work loving and dependable, democratic style of leadership will be more suitable. But if the followers are passive, work shirker and dependant, autocratic style of leadership will be more suitable.

• Nature of Situation

Leadership is always related to particular situation, at a given point of time and under a specific set of circumstances. At some point of time the followers may accept the autocratic behaviour of the leader while at a different point of time and under a different situation, only participative leadership style may be successful.

• Leader’s Position Power

A leader having higher position power in the organization is likely to be more influential. He can use his position power to make subordinates obey his instructions. 

• Leader – Follower Relation

A leader having good relations with his subordinates is likely to be more effective than a leader having bad relations.

• Group Dynamics

Group factors like group composition, group norms, group goal, and group cohesiveness also influence the effectiveness of leadership.

Author – Dr. Niyati Garg

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