He is either appointed by the senior levels of management or elected by the group. However, a leader can not have all the skills required of the role. The best situation will be to have as a leader someone who is flexible but firm. When it is required, he will let the leadership act to the others.
According to Kouzes and Posner (1995), leadership begins where management ends. The management system of reward and punishment will give way to the innovation, individual character and the courage of conviction of a leader. Management skills alone are not enough to create success in an organization. Leaders are needed to seek out areas to improve. They enjoy challenges and taking them head on. Leaders are motivated and expected to challenge existing paradigms.
The Theory X and Theory Y were first proposed by Douglas McGregor in his 1960 book The Human Side Of Enterprise. In his theory, there are two fundamental approaches to managing people. According to McGregor, Theory X is the authoritarian style of leadership while Theory Y is the participative style of leadership.(Hindle, 2003)
Theory X assumes that the average person dislikes work and will avoid it he/she can. In business, leaders must counteract an inherent human tendency to avoid work. Therefore most people must be forced with the threat of punishment to work towards organizational objectives. The average person prefers to be directed. He chooses to avoid responsibility. He is relatively unambitious, and wants security above all else.
Theory Y assumes that people have the tendency to exercise self-direction and self-control in an environment that favors them. This theory could motivate people to become high achievers. People will apply self-control and self-direction in the pursuit of organizational objectives, without external control or the threat of punishment. Committed people considers effort in work as natural as work and play. Commitment to objectives is a function of rewards associated with their achievement.
The Five Level Leadership Hierarchy
Collins (2001) describes the leadership development as a level based process that moves from various stages in the development.
Level 1. Highly Capable Individual
The first level describes the person as a productive contributor. He offers talent, knowledge, skills and good work habits as an individual.
Level 2. Contributing Team Member
At this stage, the person bestows his share and effort to the achievement of team goals. He works effectively with others in the group.
Level 3. Competent Manager
The person now has the capabilities in setting plans and objectives. He has developed his capacity to organize people for the efficient and effective quest in achieving his set objectives.
Level 4. Effective Executive
The person has gone beyond competence and builds widespread commitment to a clear and compelling vision. He has the capabilities to stimulate and motivate people to high performance.
Level 5. The Leader
The last level of development is that of becoming a true leader. The person builds an enduring and great organization. The Level 5 leader puts the organization's interests above his own. He achieves success through a combination of personal humility and professional resolve. Most leaders of this type believe that the validation and recognition of their work only comes in the success of