Chapter 12

Leadership
PRESENTED BY:

IRITA MISHRA (2013IPG-052)

GIAN SINGH (2016MBA-09)
PRADUMN GUPTA (2016MBA-21)
VIVEK YADAV (2016ITES-12)
YASH KUMAR AGRAWAL (2016MBA-33)
 WHAT IS LEADERSHIP ?
According to PETER DRUCKER:
“The only definition of a leader is someone who has followers.”

BILL GATES:
“As we look ahead into the next century, leaders will be those who empower
others.”

DEFINITION:
“Leadership is a process of social influence, which maximizes the efforts of others,
towards the achievement of a goal.”
 NOT THE SAME THING!
LEADERSHIP MANAGEMENT
• INFLUENCING AND CHANGING • STEWARDSHIP AND
ACCOUNTABILITY
BEHAVIOR
• INSPIRING A VISION • EXECUTING PLANS

• MANAGE PEOPLE • MANAGING RESOURCES

• UNDERSTANDING POWER &
• PLANNING AND CONTROLLING
INFLUENCE
• PUTTING PEOPLE FIRST! • PUTTING CUSTOMERS FIRST

• ACTING DECISIVELY • ACTING RESPONSIBLY

INTERSECTION OF HIGH PERFORMANCE

Leaders Managers
• Inspire & Motivate • Are Accountable
• Manage People • Execute
• Are Decisive • Manage Resources
• Create a Vision • Plan, organize, direct,
control

Leaders who also manage,

or
Managers who also lead
 STYLES OF LEADERSHIP
According to the US Army Handbook, the 3 major
styles of leadership are:

 Authoritarian or autocratic
 Participative or democratic
 Delegative or Free Reign
 AUTOCRATIC LEADER
The authoritarian leader makes decisions alone as power is centralized in one
person. Decisions are enforced using rewards and the fear of punishment. It is an
abusive, unprofessional style called “bossing people around.”
 DEMOCRATIC LEADER
The participative leader include one or more employees in the decision making
process. Communication flow freely; suggestions are made in both directions. The
participation encourages member commitment to the final decision.
 DELEGATIVE LEADER
The free-reign leader gives power to subordinates to make the decisions. However,
the leader is still responsible for the decisions that are made. This is used when
employees are able to analyse the situation. Delegative style is generally not useful.
 THEORIES OF LEADERSHIP

TRAIT
THEORY

BEHAVIOURAL
THEORY

CONTINGENCY
THEORY
 TRAIT THEORY
It is a way of identifying the key characteristics of
successful leaders. Critical leadership traits can be isolated
and that people with such traits can then be installed into
leadership positions.
 BEHAVIOURAL THEORY
Great leaders are made, not born. This leadership theory
focuses on the actions of leaders not on mental qualities
or internal states. People can learn to become leaders
through teaching and observation.
 CONTINGENCY THEORY
The leaders who are very effective at one place and time
may become unsuccessful either when transplanted to
another situation or when the factors around them
change.
 DIFFERENT CONTINGENCY
THEORIES:

 Fiedler’s Contingency Model

 Path Goal Theory

 FIEDLER’S MODEL
• Fixed style of leadership

• Result of two factors:

 Leadership style

• Evaluation tool : least preferred co-worker (LPC)

 Situational control

• Leader member relation

• Task structure

• Leader’s position power

 HOUSE’S PATH-GOAL THEORY
Employee
Leader Behaviors
Behaviors Characteristics
Leader Leadership
 Path-goal  Locus of control Effectiveness
clarifying  Task ability  Employee
 Achievement  Need for motivation
oriented achievement  Employee
 Work facilitation  Experience satisfaction
 Supportive  Need for clarity  Employee
 Interaction performance
facilitation  Leader acceptance
 Group oriented-  Work-unit
decision making performance
 Representation and Environmental
Factors
networking
 Value based  Task structure
 Work group
dynamics
CASE I
 INDRA NOOYI

“Leadership is hard to define and good leadership even harder. But

if you can get people to follow you to the ends of the earth, you are
a great leader.”
 EARLY LIFE AND EDUCATION

 Born October 28, 1955 In Chennai, Tamil Nadu

 Parents - Krishnamurthy & Shantha Krishnamurthy
 Husband - Raj Kishan Nooyi (Management Consultant)
 Post Graduate Diploma In Management From IIM , Calcutta
 Holds A Master’s Degree In Public And Private Management
From The Yale School Of Management
 TIMELINE

 Nooyi joined PepsiCo as Senior Vice President, corporate strategy

and development in 1994 and was named president and CFO in
2001
 According to Business Week, since she started as CFO in
2000, the company's annual revenues have risen 72%, while net
profit more than doubled, to $5.6 billion in 2006
 In 2007 she became the fifth CEO in PepsiCo's 44-year history
 In 2011, Nooyi’s earned a total compensation of $17 million
 PepsiCo Includes Pepsi-cola, Frito Lay, Tropicana, Gatorade,
Quaker Oats, Cheetos, Aquafina, Mountain Dew, Lipton Teas, Etc.
 STRATEGIC DECISIONS
• Nooyi took the lead in the acquisition of Tropicana in 1998.
• She was lead negotiator on Pepsi's $13 billion purchase of
Quaker Oats.
• Formation of a team called power of one – America’s council
and global snacks group.
• PepsiCo to spin off its restaurant business into independent
business.

• Created new distribution system which reduces overall cost

and increased sales.

• Adopted direct store delivery system.

• She was also instrumental in beating Coca-Cola for

beverage-maker Sobe, which Pepsi acquired for $337 million.
 HONOURS AND AWARDS
• Forbes – 4th on the 2008 And 2009 List Of The World's 100 Most
Powerful Women.

• Fortune - No 1 on its annual ranking of Most Powerful Women

In Business for 2006, 2007, 2008, 2009 And 2010.

• In 2008, Nooyi was named One of America's Best Leaders

by U.S. News & World Report.

• In 2008, she was elected to the Fellowship Of The American

Academy Of Arts And Sciences.

• In 2007, she was awarded Padma Bhushan by Govt Of India.

 HONOURS AND AWARDS

• Nooyi has been named 2009 CEO Of The Year by Global Supply
Chain Leaders Group.

• In January 2008, Nooyi was elected Chairwoman of the US-India

Business Council (USIBC).

• In 2010, she was named #1 on Fortune's List of the "50 Most

Powerful Women" and #6 on Forbes' List of the "World's 100 Most
Powerful Women".
 REASONS BEHIND HER SUCCESS

• Quick Decision Making Ability.

• Sticking To The Work Until It Is Accomplished.
• Treating Everyone Equally.
• Balance Between Corporate Life And Family Life.
• High Dreams
• Outstanding Communication Skills
• Taking Care Of Employees
• Strength Of Conviction
CASE II
 JEFF BEZOS

“A brand for a company is like a reputation for a person. You earn

reputation by trying to do hard things well.”
 EARLY LIFE AND EDUCATION
 •Was born on Jan 12, 1964 in New Mexico
 In 1982 he graduates from high school and joins Princeton
 In 1988 joins Bankers Trust
 In 1990 he became the youngest Vice President in the history of
Bankers Trust
 1993 : Marries McKenzie Bezos
 1994 : Quits his job at DE Shaw to start his own venture
 1995, July 5: Amazon went online
 1997 : Amazon.com begins trading at NASDAQ as AMZN at
split-adjusted price of $1.5
 1998 : Amazon.com expands to music CD’s
 TIMELINE
• 1999 : Expands to toys, electronics, software and video games.
Also launches Amazon.com auctions.
• 2001: Finally turns profit of $5 million in 4th quarter
• 2002: Bezos’ fortune dwindles down to $1.5 billion dollars in
Amazon stock ; no interest in pushing stock prices rather focus
on customer as long term strategy
• 2006 : annual sales over $10.7 billion
• 2007: introduces amazon kindle
• 2010: kindle and e-book sales had reached $2.38 billion
• 2013 :revenues at Amazon.com Inc. Totaled $74.5B USD, while
annual earnings equaled $0.59 per share.
 LEADERSHIP TRAITS
• High MACH “I think frugality drives innovation, just like other
• Type ‘A’ constraints do. One of the only ways to get out
• Openness To Experience of a tight box is to invent your way out.”
• Frugality
• Visionary
• Innovator
• Approachable
• His Religion- CONSUMERISM
• Jeff Bezos – The Marketer
• “I Am The CUSTOMER” strategy
 HONOURS AND AWARDS

• In 1990, at the age of 26 he became the Youngest Vice President in the history of
Banker’s Trust.
• He was named Time Magazine's Person Of The Year in 1999.
• In 2008, he was selected By U.S. News & World Report as one of America's Best
Leaders.
• In 2012, Bezos was named Businessperson Of The Year by Fortune.
• In 2013, Aug 5: Bought the Washington Post for $250 Million.
• Bezos is listed as one of the Wealthiest People in the World with an estimated net
worth of $28 Billion.
• He was ranked the Second Best CEO in the World by Harvard Business Review.
THANK YOU.
MISSION ACCOMPLISHED!

PICTURE CREDITS: ABHISHWET DUMORE