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Unit 1: Foundations of Organisational Behaviour

6. Formalization: This refers to the extent to which the employees are governed by rules, Notes
regulations and standardized operating procedures to maintain consistency and uniformity
in maintaining the output.
(i) In a highly formalized organization, there are explicit job descriptions, lots of rules
and clearly defined procedures covering work process.

(ii) This eliminates flexibility, innovativeness and freedom in discharging the duties
and responsibilities.

Commanding

It is the process of influencing a group towards the achievement of goals. There are certain
characteristics that differentiate leaders from non-leaders. There are three categories of leadership
theories which highlight the key determinants of leadership effectiveness. They are Trait Theories,
Behavioral Theories and Situational Theories.

Trait Theories

There are six traits associated with effective leadership include drive, the desire to lead, honesty
and integrity, self-confidence, intelligence and job-relevant knowledge.
1. Drive: Leaders exhibit a high effort level. They have a relatively high desire for achievement,
they are ambitious, they have a lot of energy, they are tirelessly persistent in their activities
and they show initiative.

2. Desire to lead: Leaders have a strong desire to influence and lead others. They demonstrate
the willingness to take responsibility
3. Honesty and Integrity: Leaders build trusting relationship between themselves and
followers by being truthful and non-deceitful and by showing high consistency between
word and deed.

4. Self-confidence: Followers look to leaders for an absence of self-doubt. Leaders therefore
need to show self-confidence in order to convince followers of the rightness of goals and
decisions.
5. Intelligence: Leaders need to be intelligent enough to gather synthesize and interpret
large amounts of information; and to be able to create vision, solve problems and make
correct decision.
6. Job-relevant knowledge: Effective leaders have a high degree of knowledge about the
company, the industry and technical matters. In-depth knowledge allows leaders to make
well-informed decision and to understand the implications of those decisions.

Behavioral Theories

They identified behaviors that differentiated effective leaders' from ineffective leaders. Based
on these people could be trained to be leaders. The following are three types of behavioral styles
of leadership
1. Autocratic Style: A leader who tended to centralize authority, dictate work methods,
make unilateral decision and limit employee participation.
2. Democratic Style: A leader who tended to involve employees in decision making to
delegate authority, to encourage participation in deciding work methods and goals, and
to use feedback as an opportunity for coaching employees.

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