Leadership Style in Bank

LEARDERSHIP STYLE IN BANKING SECTOR
UNIVERSITY OF MUMBAI
Project Report on
LEADERSHIP STYLE IN BANKING SECTOR
BACHELOR OF COMMERCE
BANKING & INSURANCE
SEMESTER V
T.Y.B.COM (BANKING & INSURANCE)
2012-2013
Submitted In part fulfillment of the requirements for the Award of the Degree
of Bachelor of Commerce-Banking & Insurance
SUBMITTED BY
ASHWINI PARAB
ROLL NO: 32
SYDENHAM COLLEGE OF COMMERCE & ECONOMICS,

CHURCHGATE, MUMBAI-400020.
T.Y. B.B.I
SYDENHAM COLLEGE OF COMMERCE AND ECONOMICS
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DECLARATION
I, ASHWINI SANJAY PARAB Student of B.Com Banking and

Insurance Semester V (2012-2013) hereby declare that I have completed
the
project
On
LEADERSHIP
STYLE
IN
BANKING
SECTOR.Whenever the data/information have been taken from any book

or other sources the same have been mentioned in the Bibliography.
The information submitted is true and original to the best of my

knowledge.
Signature of the student

ASHWINI PARAB
T.Y. B.B.I
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ACKNOWLEDGEMENT
First of all I would like to extend my gratitude towards the
MUMBAI UNIVERSITY for giving me an opportunity to make
this project, project has broadened my horizon.
I would like to thank SYDENHAM COLLEGE for
providing me opportunity to do so.
I would also like to thank our head of department Ms. Smita
Kuntay and all lecturers for their continuous support and
guidance.
My grateful thanks to my project guide Prof. Ms.Rupa
Adatia for her admirable support and guidance. I would also like
to thank my colleagues and other concerned people for their on
going support.
I would be grateful to Ms Smita Kuntay for guiding me
throughout the project and furnish me with valuable information
in accomplishing this project.
T.Y. B.B.I
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PREFACE
I Have great pleasure in presenting this project of LEADERSHIP STYLE IN

BANKING SECTOR .I Have made a sincere effort to make this project informative
and I am sure it would help in understanding the concept of LEADERSHIP STYLE
IN BANKING SECTOR in a better way.
I am very thankful to prof Ms.Rupa Adatia and Professor Hassan sir for their
response and suggestions which have necessitated for successful project.
MUMBAI
T.Y. B.B.I
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INDEX
NO.
CONTENT
INTRODUCTION
DEFINITION OF LEADERSHIP
LEADERSHIP : A CONCEPT
PAST HISTORY OF LEADERSHIP
BANKING
OF LEADERSHIP
ENTREPRENEURS
EFFECTIVE LEADERSHIP
INFLUENCE OF LEADERSHIP
STYLEIN BANKING SECTOR
STYLE ON EMPLOYEE
PERFORMANCE
8
9
LEADERSHIP STYLES
INTRODUCTION TO
BANKING INDUSTRY
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10
INTRODUCTION TO STATE BANK

OF INDIA
11
LLEADERSHIP THEORIES
12
FFOUR MOST IMPORTANT

QUALITIES OF A GOOD
LEADER
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INTRODUCTION OF LEADERSHIP
Leadership is all about harnessing people power for the attainment of a
desired goal and thus the concept of leadership cannot be restricted to
the Organizational context . It pervades through all realms of society, whether it
be in politics, religion or the corporate world.
DEFINITION OF LEADERSHIP
We can define leadership as:
The activity of influencing people to strive willingly for group objectives.George R. Terry.
It is interpersonal influence exercised in a situation and directed through the
communication process towards the attainment of specialized goals.
Robert Tannenbaum.
Leadership is influencing people to follow in the achievement of a common
goal Koontz ODonnell.
Leadership is the process whereby one individual influences other group
members towards the attainment of defined group or organizational
goals. Baron & Greenberg
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The above definitions as is evident all pertain to the Western views. This
is b e c a u s e l e a d e r s h i p a s a f o r m a l i z e d f i e l d o f s t u d y
a n d a n a l y s i s w i t h a structured syllabus has not yet been
established in India as it is in the West . Here one still goes by the old
Hindu tradition of the son wearing his father s shoes. Needless to say,
this usually proves to be a hit or miss approach as it
is not necessary that the leadership skills
wil
l b e p a s s e d d o w n t h e generations automatically.
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LEADERSHIP CONCEPT
There are four major factors in leadership:
Follower
Different people require different styles of leadership. For example, a new hire
requires more supervision than an experienced employee. A person who lacks
motivation requires a different approach than one with a high degree
of motivation. You must know your people! The fundamental starting point is
having a good understanding of human nature, such as needs, emotions, and
motivation. You must become to know your employees' be, know, and
do attributes.
Leader
You must have an honest understanding of who you are, what you
know , determines if a leader is successful. If they do not trust or lack
confidence in t h e i r l e a d e r , t h e n t h e y wi l l b e u n i n s p i re d . To b e
s u c c e s s f u l yo u h a v e t o convince your followers, not yourself or your
superiors, that you are worthy of being followed.
Communication
You lead through two-way communication. Much of it is nonverbal.

For instance, when you "set the example," that communicates to your people that
you would not ask them to perform anything that you would not be willing to do.
What and how you communicate either builds or harm the relationship between you
and your employees.
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Situation
A l l a r e d i f f e r e n t . Wh a t yo u d o i n o n e s i t u a t i o n wi l l n o t a l wa ys
w o r k i n another. You must use your judgment to decide the best course of action
and the leadership style needed for each situation. For example, you may need to
confront an employee for inappropriate behavior, but if the confrontation is t o o
l a t e o r t o o e a r l y, t o o h a r s h o r t o o w e a k , t h e n t h e r e s u l t s ma y
p r o v e ineffective.V a r i o u s f o r c e s w i l l a f f e c t t h e s e f a c t o r s . E x a m p
l e s o f f o r c e s a r e y o u r relationship with your seniors, the skill of your
people, the informal leaders within your organization, and how your company
is organized
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PAST HISTORY OF LEADERSHIP

Guru Brahma Gurur Vishnu
Guru Devo Maheshwaraha
Guru Saakshat Para Brahma
Tasmai Sree Gurave Namaha
Meaning:
Guru is verily the representative of Brahma, Vishnu and Shiva. He creates,
sustains knowledge and destroys the weeds of ignorance. I salute such a
guru. This shloka essentially describes the pedestal on which a leader was placed
in the traditional Indian society. The Indian society, being an inward looking and
highly philosophical society awarded the guru a place even higher than Go d . I t
w a s t h e o n l y f o r m o f r e c o g n i z e d l e a d e r s h i p a n d e v e r yo n e i n t h e
society, irrespective of his position, would turn to the guru to seek advice on
matters ranging from war strategies to spiritual solace. In the Indian society, after
the thread ceremony, an important ritual marking the beginning of the formal
education of a child was being sent to a gurukul. He r e h e wo u l d l e a d a l i f e
o f a c o mmo n e r , r e g a r d l e s s o f h i s b a c k g r o u n d , under the guidance of
the guru. The Guru would condition his disciples both spiritually and
mentally to help them embark on the life of agrihastha once they attain
the age of twenty-five
His word was a command in every sphere and everyone was supposed to
discharge his debts to the guru, in the form of a guru dakshina, by carrying out
his orders. In the post Aryan era, the balance of power shifted to the
crown. The king was now recognized as the ultimate leader who was
responsible for all his subjects. The nineteenth century saw another turn and
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political leaders in the form of revolutionaries fighting for the countrys

independence came to the fore. The likes of Mahatma Gandhi mesmerized the
country and shook the British throne. After independence, in a pledge to build the
nation, the importance of trade and commerce gained recognition. Thus
evolved the concept of business leadership in India, personified by late Shri
G.D. Birla, ShriJ.R.D.Tata and ahost of others. The common thread running
through these diverse personalities represents the essence of Indian
leadership. These elements can be bulleted as under:
Warm / informal
Respect for the individual
Introspection
Inward looking
Compassionate
Sensitive
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Objective
Collaborative
Intellectual
Ethical
Aesthetic
Recognition of social responsibility
F r o m t h e a f o r e s a i d di s c us s i o n i t em e r g e s t ha t l e a de r s hi p co m pr
i s es o f personality-based attributes appealing to the masses and
channelizes their energy towards a common end. Leaders always
emerge out of vacuum
in ac r i s i s s i t u a t i o n w h e n t h e m a s s e s a r e c o n f u s e d a n d
a g i t a t e d t o s t a k e everything for the attainment of a given goal. The
leadership may emerge in any sphere, whether it is political, religious, social or
economic. It is also evident that although the trajectory of evolution of
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the concept is similar in both India as well as the West, the shift of focus
towards business leadership was much quicker in the West.
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ENTREPRENEURS IN BANKING
Chanda Kochhar (November 17, 1961) is currently the Managing
Director (MD) of ICICI Bank and Chief Executive Officer (CEO).
ICICI Bank is India's largest private bank and overall second largest
bank in the country. S h e a l s o h e a d s t h e C o r p o r a t e C e n t r e o f I C I C I
B a n k . Ko c c h a r h a s a l s o consistently figured in Fortune's list of "Most
Powerful Women in Business"
since 2005. In 2009, she debuted at number 2
0 i n t h e F o r b e s "World's 100 Most Powerful Women list".
PERSONAL
LIFEC h a n d a Ko c h h a r wa s b o r n i n J o d h p u r , R a j a s t h a n
a n d r a i s e d i n J a ip u r ,
Rajasthan. She then moved to Mumbai, where she joi
ned Jai HindCollege for a Bachelor of Arts degree. K
o c c h a r g r a d u a t e d f r o m t h e College in 1982 and then pursued
MBA and Cost Accountancy (ICWAI). Later, she acquired the Masters
Degree in Management Studies from the Jamnalal Bajaj Institute of
Management Studies, Mumbai. Kocchar received the Wockhardt Gold Medal for
Excellence in Management Studies as well asthe J. N. Bose Gold Medal in
Cost Accountancy for highest marks in the same year. Kocchar currently
resides in Mumbai, and is married. She has twochildren, a son and a daughter.
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OTHER INVESTMENT
Kocchar is Often Titled Ms 10%.Its given to her due to her 10% holding
inCastrol India, Nestle India, ACC, Blackstone India, Indian Express, Ambuja
RECOGNITION
U n d e r Ko c c h a r ' s l e a d e r s h i p , I C I C I B a n k wo n t h e B e s t R e t a i l B a n k
inI n d i a a w a r d i n 2 0 0 1 , 2 0 0 3 , 2 0 0 4 a n d 2 0 0 5 a n d
E x c e l l e n c e i n R e t a i l Banking Award in 2002; both awards were given by
the The Asian Banker. Kocchar personally was awarded "Retail Banker of
the Year 2004 (Asia-Pacific region)"by the Asian Banker, "Business
Woman of the Year 2005" by The Economic Times and "Rising Star Award" for
Global Awards
2006 by Retail Banker International. Kocchar has also consistently figured
inF o r t u n e ' s l i s t o f " M o s t P o we r f u l Wo me n i n B u s i ne s s " s i n c e 2 0 0 5 .
S h e climbed up the list debuting with the 47th position in 2005, moving
up 10spots to 37 in 2006 and then to 33 in 2007. In the 2008 list, Kocchar feature
sa t t h e 2 5 th
spot. In 2009, she debuted at number 20 in the Forbes
"World's1 0 0 M o s t P o w e r f u l W o m e n l i s t " . S h e i s t h e s
eco n d In di an i n t h elist behind the ruling Indian Natio
n a l C o n g r e s s p a r t y c h i e f S o n i a Gandhi at number 13.
T.Y. B.B.I
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EFFECTIVE LEADERSHIP STYLE IN

BANKING SECTOR.
The scholarly circles agree that leadership is really an important subject
in the field of organizational behavior. There is an increasing tendency
of investments in the financial services particularly banking sector,
which has given rise to fierce competition in the market particularly in the
consumer banking. In daily routine actions, the employees in the banks
particularly team leaders and managers have to go from side to side many
situations in the light of which they have to take different decisions, which may
or may not be vary from their ordinary personality styles and give rise to conflict
within the departments. In the other side, Chen (2005) suggests that in order to
overcome obstacle and improve productivity, effective leadership
style is required. Literature is prosperous in determining the factors
affecting the variety of leadership style and their development.
However, in the real world it has been noted that no single leadership
style is used by a manager; rather a combination of leadership styles is marked.
There are many factors which determine or affect the application of a leadership
style (Randeree and Chauhdry, 2007).There are different leadership styles
that are used in banking sector. All have some advantages
anddisadvantages in its own place. But transformational leadership and
transactional leadership are more related to leadership style placed in
organization (Jadwinski, 2006).As research conduct by Bass, transactional
leadership is comprised of two dimensions: contingent rewards and managementby-exception, while transformational leadership is consist of of four central
components: charisma, inspiration, individualized consideration, and intellectual
stimulation (Awamleh, 2005).
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As, Transactional leadership is based on the exchange process where the leader
administers rewards. In that style the leader and follower are willing that
desired follower behaviors will be rewarded, while
undesirable behaviors will draw out punishment. The possible
rewards consist of increase in salary, promotions, and other more
benefits to employee. Punishment can be in the form of pay reduction,
no promotion, and terminations and leave of job forever. It is observed
that this type of leadership is not acceptable for many conditions.
Indeed, it is observed that transactional leadership behaviors are not
reliable leadership label (Bryman, 1992). Since it is based on previous research,
transactional leadership does is not seek to motivate followers beyond the
level that is required to avoid punishment or gain extrinsic
rewards. Moreover, fully use of this leadership style may
decrease employee capacity and satisfaction to suffer (Bass, 1985; Burns;
1978; Peters & Austin,1985).
T r a n s f o r ma t i o n a l l e a d e r s h i p i s c on s i d e r i n g a c h i e v i n g h i g h l e v e l s
o f p e r f o r ma n c e o f e mp l o ye e s . I t encourage followers by appealing to
their upper level needs that is self-actualization and their ideals that yield higher
levels of follower satisfaction, performance, and organizational commitment in
individuals(Bass, 2000).On other hand, researcher viewed them as opposite ends
of a field at the same time as(Bass ,1978). Bass (1985) views that the
transformational and transactional leadership are closely related
for e f f e c t i v e r e s u l t . An e f f e c t i v e l e a d e r wi l l r e v e a l a s p e c t s o f b o
t h t r a n s a c t i o n a l a n d t r a n s f o r ma t i on a l leadership. According to Bass,
transformational leadership is concerned with developing followers to
their entire potential (Bass & Avolio, 1990). Thomsen
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and Hoest (2001) consider 'rewards' as''the most influential and

observable management device that can sustain changes"
Therefore, many banks have developed fixed salary
structures coupled with bonuses on achieving sales targets
in order to keep employees motivated in constantly changing
environment.E mp i r i c a l s t u d y a g r e e w i t h B a s s r e s e a r c h t h a t l e a d e r s
h o u l d b e c o mp o s e d o f t r a n s f o r ma t i o n a l a n d transactional leadership
style (Avolio, Waldman, & Einstein, 1988). In other
words, transformational leaders also have the qualities of transactional
leadership behavior.These banks require leaders who can initiate a process of
transformation by conveying transformative change in the state of mind and
develop viewpoint and perception of their followers with their visionary appeal
(Ahanger, 2009).In previous
studiesleadership literature give importance to transactional leadership.
Today, transformational leadership isviewed as the most prominent topic
in the current research and theories of leadership (Bass, 1998).As a result, many
leadership theories have been proposed in the last fifty years which are claimed
tohavei n f l u e n c e d t h e o v e r a l l e f f e c t i v e n e s s o f t h e o r ga n i z a t i o n s w
h e r e t h e y h a v e b e e n e mp l o ye d . I n t h e competitive world business
environment it is vital that organizations utilize leadership styles that enable
organizations to survive in a dynamic environment (Maritz, 1995; Bass, 1997).
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INFLUENCE OF LEADERSHIP
PERFORMANCE
The style of leadership adopted is considered by some researchers(e.g.Awamleh,
1999; Conger, 1999)
to b e p a r t i c u l a r l y i mp o r t a n t i n a c hi e v i n g o r g a n i z a t i o n a l g o a l s , a n
d i n i n d u c i n g p e r f o r ma n c e a mo n g subordinate (Barlinget al., 1996;
Bersonet al., 2001).Employee performance is an important building block of an
organization and factors which set the foundation for high performance in the
organizations(Abbas & Yaqoob, 2009).Behling and McFilen (1996) confirmed
the link between high performance and leadership in the United States by
developing a model of charismatic/transformational leadership where the leaders
behavior is said to give rise to inspiration, high regard and empowerment in his
Subordinates, resulting in exception ally high effort, exceptionally high
commitment and willingness to take risks. It has been widely accepted that
effective organizations require effective leadership, and organizational
performance will suffer in direct proportion to the neglect of this (Maritz, 1995;
Ristow; Staude, 1999).Understanding the effects of leadership on performance is
essential because leadership is viewed by somere searchers (e.g. Zhuet al., 2005)
as a critical success factors that impact subordinates performance. Leader should
increase the level of satisfaction and employee productivity by inspiring
and motivating them. Employee performance depends
on directions which are given by their leader. Enhance
the level of employee output is considered most important factor to get
the progress of organization. It is argued that effective leadership has a positive
influence on the performance of Organizations (Maritz,1995; Bass, 1997;
Charlton, 2000). Ultimately it is the Performance of many individuals that
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attached with the performance of the Organization, or in the achievement of

organizational goals. Effective leadership is Instrumental in ensuring
organizational performance (Cuming and Schwab, 1973). Bank employees give
the impression to react much more positively in terms of performance. Perhaps
banking and multicultural environments employees feel more comfortable
with a work system that defines their tasks and clearly spells out
performance targets and way to perform in job (Awamleh, 2007)
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LEADERSHIP STYLE IN BANKING

Leadership style is the manner and approach of providingd
i r e c t i o n , i mp l e m e n t i n g p l a n s , a n d mo t i v a t i n g p e o p l e . Th
e U. S . Ar my H a n d b o o k , 1973 identifies three styles of leadership:
AUTHORITARIAN OR AUTOCRATIC
PARTICIPATIVE OR DEMOCRATIC
DELEGATIVE OR FREE REIGN

A l t h o u g h g o o d l e a d e r s u s e a l l t h r e e s t yl e s , wi t h o n e o f t h e m
n o r ma l l y dominate, bad leaders tend to stick with one style.
AUTHORITARIAN OR AUTICRATI:
This style is used when the leader tells his employees what he wants
done and how he wants it done, without getting the advice of his followers.
Some of the appropriate conditions to use it are when you have all the
information to solve the problem, you are short on time, and your
employees are well motivated. S o m e p e o p l e t e n d t o t h i n k o f
t h i s s t y l e a s a v e h i c l e f o r y e l l i n g , u s i n g demeaning language,
and leading by threats and abusing their power. This is n o t t h e
a u t h o r i t a r i a n s t yl e r a t h e r , i t i s a n a b u s i v e , u n p r of e s s i o n a l
s t yl e called bossing people around. It has no place in a leaders repertoire
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The authoritarian style should normally only be used on rare

occasions.If you have the time and want to gain more commitment
and motivation from your employees, then you should use the
participative style.
PARTICIPATIVE OR DEMOCRATIC
This type of style involves the leader including one or more employees in on
t h e de ci s i o n m a ki ng pr o c es s ( de ter mi ni ng w ha t t o d o a n d
h o w t o do i t ). However, the leader maintains the final decision
making authority. Using this style is not a sign of weakness; rather
its a sign of strength that your employees will respect. T hi s i s
n o r ma l l y us e d w h e n y o u ha v e pa r t o f t he i nf o r m a ti o n , a n d
y o ur employees have other parts. A leader is not expected to know
everything -this is why you employ knowledgeable and skillful
employees. Using this style is of mutual benefit - it allows the
employees to become part of the team and allows you to make better
decisions.
DELEGATIVE OR FREE REIGN

so known as laissez faire, which is the noninterference in the affairs
of others. In this style, the leader allows the employees to make the
decision. However, the leader is still responsible for the decisions that are
made. This is used when employees are able to analyze the situation and
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determine what needs to be done and how to do it. You cannot do

everything! You must set priorities and delegate certain tasks.
This is not a style to use so that you can blame others when things go wrong;
rather this is a style to be used when you have the full trust and
confidence in the people below you. One should not be afraid to use it,
however, to be effective, it must be used wisely! T h e r e a r e a n u mb e r o f
d i f f e r e n t a p p r o a c h e s , o r ' s t yl e s ' t o l e a d e r s h i p a n d management that
are based on different assumptions and theories. The style that individuals use
will be based on a combination of their beliefs, values and preferences, as
well as the organizational culture and norms, which will encourage some, and
discourage others.
In this context, the various approaches could also be classified under
the following heads.
CHRISMATIC LEADERSHIP
PARTICIPATIVE LEADERSHIP
SITUATIONAL LEADERSHIP
TRANSACTIONAL LEADERSHIP
TRANFOMATIONAL LEADERSHIP
THE QUIET LEADERSHIP
SERVANT LEADERSHIP
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CHRISMATIC LEADERSHIP
A t t r i b u t e s o f c h a r i s ma t i c l e a d e r s t h a t i n d i c a t e a mo r e t r a n s f o r ma
- t i o n a l Viewpoint:
Vision and articulation;
Sensitivity to the environment;
Sensitivity to member needs;
Personal risk taking;
Performing unconventional
behavior.M u s s e r ( 1 9 8 7 ) n o t e s t h a t c h a r i s m a t i c l e a
d e r s s e e k t o i n s t i l l b o t h c o mmi t me n t t o i d e o lo g i c a l
g o a l s a n d a l s o d e v o t i o n t o t h e ms e l v e s . Th e e x t e n t t o w h
ich either of these two goals is dominant depends o
n t h e underlying motivations and needs of the leader.
PARTICIPATIVE LEADERSHIPA:
participative leader, rather than taking autocratic decisions

, s e e k s t o involve other people in the process, possibly including
subordinates,peers,s u p e r i o r s a n d o t h e r s t a k e h o l d e r s . O f t e n ,
h o w e v e r , a s i t i s w i t h i n t h e ma n a g e r s ' wh i m t o g i v e o r
d e n y c o n t r o l t o hi s o r h e r s u b o r d in a t e s , mo s t participative
activity is within the immediate team. The question of how much
influence others are given thus may vary on the manager's preferences and
beliefs, and a whole spectrum of participation is possible. There are many
varieties on this spectrum, including stages where the leader sells the
idea to the team. Another variant is for the leader to describe the
'what' of objectives or goals and let the team or individuals decide the 'how'
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o f t h e p r o c e s s b y wh i c h t h e ' h o w' w i l l b e a c h i e v e d ( t h i s i s
o f t e n c a l l e d 'management by objectives').The level of participation
may also depend on the type of decision being made. Decisions
on how to implement goals may be highly participative, whilst
decisions during subordinate performance evaluations are more likely to
be taken by the manager.
SITUATIONAL LEADERSHIP:
When a decision is needed, an effective leader does not just fall into a
single preferred style, such as using transactional or transformational methods.
In practice, as they say, things are not that simple. Factors that affect situational
decisions include motivation and capability of followers. This, in turn, is affected
by factors within the particular situation. The relationship between followers
and the leader may be another factor that affects leader behavior as much as it
does follower behavior. The leaders' perception of the follower and the
situation will affect what they
do rather than the truth of the situation.The leader
s p e r c e p t i o n o f themselves and other factors such as stress and
mood will also modify the leaders' behavior. Yukl (1989) seeks to combine
other approaches and identifies six variables:
Subordinate effort: the motivation and actual effort expended.
Subordinate ability and role clarity: followers knowing what to do
and how to do it.
Or g a ni za ti o n o f th e w o r k : th e s t r uc t ur e o f t he w o r k a n d
u t i l i za ti o n o f resources.
Cooperation and cohesiveness: of the group in working together.
Resources and support: the availability of tools, materials, people, etc.
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External coordination: the need to collaborate with other groups.

Leaders here work on such factors as external relationships,
acquisition of resources, managing demands on the group and
managing the structures and culture of the group.
TRANSACTIONAL LEADERSHIP:
The transactional leader works through creating clear structures whereby it is
clear what is required of their subordinates, and the rewards that they get for
following orders. Punishments are not always mentioned, but they are
also well understood and formal systems of discipline are usually in place. The
early stage of transactional leadership is in negotiating the
contractw h e r e b y t h e s u b o r d i n a t e i s g i v e n a s a l a r y a n d o t h e
r b e n e f i t s , a n d t h e company (and by implication the subordinate's
manager) gets authority over the
subordinate.Wh e n t h e t r a ns a c ti o na l l ea de r a l l o c a t es w o r k t o a s u b
o r di na t e, t h e y a r e c o n s i d e r e d t o b e f u l l y r e s p o n s i b l e f o r i t ,
w h e t h e r o r n o t t h e y h a v e t h e r e s o ur ces o r ca p a b i l i t y t o ca r r y
i t o ut. W h en t hi ng s g o w r o ng , t h en t h e subordinate is considered to
be personally at fault, and is punished for their failure (just as they are
rewarded for succeeding).The transactional
leader o f t e n us e s m a na g e me n t b y e x c e pt i o n , w o r ki n g o n t h e p r i
n c i pl e t ha t i f something is operating to defined (and hence expected)
performance then it does not need attention. Exceptions to expectation require
praise and reward for exceeding expectation, whilst some kind of
corrective action is applied for performance below
expectation.W h e r e a s t r a n s f o r m a t i o n a l l e a d e r s h i p h a s m o
T.Y. B.B.I
Page 27
r e o f a ' s e l l i n g ' s t y l e , transactional leadership, once the contract is

in place, takes a 'telling' styles
TRANSFORMATINAL LEADERSHIP:
Wo r ki n g f o r a t r a n s f o r ma ti o na l l ea d er ca n be a w o n d er f u l
a n d up l i f ti ng experience. They put passion and energy into
everything. They care about you and want you to succeed.
Transformational leadership starts with the development of a vision, a view
of the future that will excite and convert potential followers. This vision
may be developed by the leader, by the senior team or may emerge from a
broad series of discussions. The important factor is the leader buys
into it, hook, line and sinker. The next step, which in fact never stops, is to
constantly sell the vision. This takes energy and commitment, as few
people will immediately buy into a radical vision, and some will join
the show much more slowly than
others.T h e tr a ns f o r m a ti o na l l e a der th us ta kes ev er y o p po r tu n
i ty a n d w i l l us e whatever works to convince others to climb on board
the bandwagon. I n o r d er t o cr ea te f o l l o w er s , t h e
t r a ns f o r ma ti o n a l l ea de r h a s t o b e v er y careful in creating trust,
and their personal integrity is a critical part of the package that they
are selling. In effect, they are selling themselves as well as the
vision.P a r a l l e l t o t h e s e l l i n g a c t i v i t y i s s e e k i n g t
h e w a y f o r w a r d . S o m e transformational leaders know the
way, and simply want others to
T.Y. B.B.I
Page 28
followt h e m . O t h e r s d o n o t h a v e a r e a d y s t r a t e g y , b u t w i l
l h a p p i l y l e a d t h e exploration of possible routes to the Promised Land
THE QUIET LEADER:

The approach of quiet leaders is the antithesis of the classic charismatic (and
often transformational) leaders in that they base their success not on ego and
f o r c e o f c h a r a c ter b ut o n t h ei r tho ug h ts a n d a ct i o n s . A l tho u g h
t h ey a r e strongly task-focused, they are neither bullies nor unnecessarily
unkind and may persuade people through rational argument and a form
of benevolent transactional leadership. The 'level 5' leader: In his book Good
to Great, Jim Collins, identified five levels of effectiveness people can take in
organizations. At level four is the merely effective leader, whilst at level
five the leader who combines professional will with personal humility.
The 'professional will' indicates how they are far from being timid
wilting flowers and will m a r c h a g a i n s t a n y a d v i c e i f t h e y
believe it is the right thing to do.
In'personal humility' they put the wellb e i n g o f o t h e r s b e f o r e t h e i r o w n personal needs, for example
giving others credit after successes but taking personal responsibility for
failures.
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SERVANT LEADERSHIP:
The servant leader serves others, rather than others serving th
e l e a d e r . Serving others thus comes by helping them to achieve and
improve.P r i n c i p l e s o f s e r v a n t l e a d e r s h i p d e f i n e d b y t
h e a l l i a n c e f o r s e r v a n t Leadership is:
Transformation as a vehicle for personal and institutional growth.
Personal growth as a route to better serves others.
Enabling environments that empower and encourage service.
Service as a fundamental goal.
Trusting relationships as a basic platform for collaboration and service.
Creating commitment as a way to collaborative activity.
Community building as a way to create environments in which people can trust
each other and work together.
Nurturing the spirit as a way to provide joy and fulfillment in meaningful work
T.Y. B.B.I
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INTRODUCTION TO
BANKING INDUSTRY
The Indian Banking industry, which is governed by the Banking Regulation Act
of India, 1949 can be broadly classified into two major categories, non
scheduled banks and scheduled banks. Scheduled ban
k s c o m p r i s e c o m me r c i a l b a n k s a n d t h e c o o p e r a t i v e b a n k s . I n t e r ms o f o wn e r s h i p , commercial banks can be
further grouped into nationalized banks, the State Bank of India and its group
banks, regional rural banks and private sector banks (the old/ new
domestic and foreign). These banks have over 67,000 branches spread
across the country. T h e f i r s t p h a s e o f f i n a n c i a l r e f o r ms r e s u l t e d i n
t h e n a t i o n a l i z a t i o n o f 1 4 ma jo r b a n k s i n 1 9 6 9 a n d r e s u l t e d i n a
s h i f t f r o m C l a s s b a n k i n g t o M a s s banking. This in turn resulted in a
significant growth in the geographical coverage of banks. Every bank
had to earmark a minimum percentage
of t h e i r l o a n p o r t f o l i o t o s e c t o r s i d e n t i f i e d a s p r i o r i t
y s e c t o r s . T h e manufacturing sector also grew during the 1970s in
protected environs and the banking sector was a critical source. The next
wave of reforms saw the nationalization of 6 more commercial banks in 1980.
Since then the number of scheduled commercial banks increased four-fold and
the number of bank branches increased eight-fold. After the second phase of
financial sector reforms and liberalization of the
sector in the early nineties, the Public Sector Banks (PSB)
s f o u n d i t extremely difficult to compete with the new private sector
banks and the foreign banks. The new private sector banks first made
T.Y. B.B.I
Page 31
their appearance after the guidelines permitting them were issued in January
1993. Eight new private sector banks are presently in operation. These banks
due to their late start have access to state-of-the-art technology, which in turn
helps them to save on manpower costs and provide better services. During the
year 2000, the State Bank Of India (SBI) and its 7 associates accounted
for a 25 percent share in deposits and 28.1 percent share in credit. The 20
nationalized banks accounted for 53.2 percent of the deposits and47.5
percent of credit during the same period. The share of foreign
banks(numbering 42), regional rural banks and other scheduled commercial
banksa c co u n t e d f o r 5. 7 p er ce n t , 3. 9 p er ce n t a n d 12 . 2 pe r c e nt r e
s pe c ti v el y i n deposits and 8.41 percent, 3.14 percent and 12.85
percent respectively in credit during the year 2000.
T.Y. B.B.I
Page 32
Structure of the organized banking sector in India. Numbers of banks are in

brackets. A
T.Y. B.B.I
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INTRODUCTION TO STATE BANK OF INDIA
S t a t e B a n k o f I n d i a ( S B I ) i s t h e l a r g e s t stateowned bankingandfinancial company inIndia, by almost every parameter revenues, profits, assets, market capitalization, e t c .
T h e b a n k t r a c e s i t s a n c e s t r y t o British India, through the Imperial, to
the founding in 1806 of the Bank of Calcutta, making it the oldest commercial
bank in the Indian. Bank of Madras merged into the other two presidency banks,
Bank of Calcutta and Bank of Bombay to form Imperial Bank of India, which in
turn became State Bank of India. The Government of India nationalized the
Imperial Bank of India in 1955,with the Reserve Bank of India taking a 60%
stake, and renamed it the State B a n k o f I n d i a . I n 2 0 0 8 , t h e Go v e r n me n t
t o o k o v e r t h e s t a k e h e l d b y t h e Reserve Bank of
India.S B I p r o v i d e s a r a n g e o f b a n k i n g p r o d u c t s t h r o u g h i t s
v a s t n e t w o r k o f branches in India and overseas, including products aimed
at NRIs. The State B a n k G r o u p , wi t h o v e r 1 6 ,0 0 0 b r a n c h e s , h a s t h e
l a r g e s t b a n k i n g b r a n c h n e t wo r k i n I n d i a . Wi t h a n a s s e t b a s e o f
$ 3 5 2 b i l l i o n a n d $ 2 8 5 b i l l i o n i n deposits, it is a regional banking
behemoth. It has a market share among Indian commercial banks of
about 20% in deposits and advances, and SBI accounts for almost one-fifth
of the nation's loans.S B I h a s t r i e d t o r e d u c e o v e r T.Y. B.B.I
Page 34
s t a f f i n g b y c o mp u t e r i z i n g o p e r a t i o n s a n d "golden handshake"
s c h e me s t h a t l e d t o a f l i g h t o f i t s b e s t a n d b r i g h t e s t managers.
These managers took the retirement allowances and then went onto become
senior managers in new private sector banks. In 1959 the Government passed the
State Bank of India (Subsidiary Banks)A c t , e n a b l i n g t h e S t a t e B a n k
o f I n d i a t o t a k e o v e r e i g h t f o r m e r S t a t e - associated banks as its
subsidiaries. On 13 September 2008,State Bank of Saurashtra, one of its
Associate Banks, merged with State Bank of India.SBI has acquired local
banks in rescues. For instance, in 1985, it acquired Bank of Cochin in
Kerala, which had 120 branches. SBI was the acquire rasits affiliate, State Bank
of Travancore, already had an extensive network in Kerala. T h e S t a t e
b a n k o f I n d i a i s t h e 1 0 t h mo s t r e p u t e d c o mp a n y i n t h e wo r l d
according to Forbes. S t a t e B a n k o f I nd i a i s t h e l a r g e s t o f t h e of India,
along with I C I C I B a n k ,P u n ja b Na t i o n a l B a n k and C a n a r a B a n k
i t s m a i n competitors.
T.Y. B.B.I
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LEADERSHIP THEORIES
GREAT MAN THEORIES:

Great Man theories assume that the capacity for leadership is inherent that great
leaders are born not made. These theories often portray great leaders as heroic,
mythic and destined to rise to leadership when needed. The term G r e a t
M a n wa s u s e d b e c a u s e , a t t h e t i me , l e a d e r s h i p wa s t h o u g h t
o f primarily as a male quality, especially in terms of military leadership.
TRAIT THEORIE:
S i mi l a r i n s o me w a ys t o " Gr e a t M a n " t h e o r i e s , t r a i t t h e o r y
a s s u me s t h a t people inherit certain qualities and traits that make them
better suited to leadership. Trait theories often identify particular personality or
behavioral characteristics shared by leaders. But if particular traits are
key features of leadership, how do we explain people who possess those
qualities but are not leaders? This question is one of the difficulties in using
trait theories to explain leadership. Several researchers have demonstrated that
such traits of leadership do
nota l wa ys e n s u r e s u c c e s s f u l l e a d e r s h i p b u t t h e y d o p l a c e t h e p o s
sessor in re
s u c c e s s f u l l e a d e r s h i p b u t t h e y d o p l a c e t h e p o s s e s s o r i n higher
esteem. It is also seen that hardly10% of the listed traits in over 100such
researchers appeared in 5 or more study. The trait approach has lead to selection
procedure by written tests or preference tests. The Greatest defect of this theory is
that we cannot have common or universal traits of leadership.
T.Y. B.B.I
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CONTINGENCY THEORIES:
Contingency theories of leadership focus on particular variables related
to the environment that might determine which particular style of leadership
is best suited for the situation. According to this theory, no leadership style is best
in all situations. Success depends upon a number of variables, including the
leadership style, qualities of the followers and aspects of the situation.
Contingency theory is a class of behavioral theory that claims that there
is n o b e s t w a y t o o r g a n i z e a c o r p o r a t i o n , t o l e a d a
c o m p a n y , o r t o m a k e decisions. Instead, the optimal course of
action is contingent (dependent)upon the internal and external situation.
Several contingency approaches were developed concurrently in the
late 1960s.T
p
h
v
e
i
y
o
s
u
g
t
g
h
e
e
s
o
t
r
e
i
d
e
t
s
h
s
a
u
t
c
asWeber's bureaucracyandTaylor ' s ma n a g e me n t h a d f a i l e d b e c a u s e t h e

yn e g l e c t e d t h a t m a n a g e m e n t s t y l e a n d o r g a n i z a t i o n a l s t r u c
t u r e w e r e influenced by various aspects of the environment: the
contingency factors. There could not be "one best way" for leadership or
organization.H i s t o r i c a l l y , c o n t i n g e n c y t h e o r y h a s s o u
g h t t o f o r m u l a t e b r o a d generalizations about the formal structures
that are typically associated with or best fit the use of different technologies. The
perspective originated with the work of Joan Woodward(1958), who argued that
technologies directly determine differences in such organizational
attributes as span of control, centralization of authority, and the formalization
of rules and procedures.
T.Y. B.B.I
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SITUATIONAL THEORIES:
Situational theories propose that leaders choose the best course of
action based upon situational variables. Different styles of leadership may be
more appropriate for certain types of decision-making. These approach places
more emphasis on the characteristics of the specific s i t u a t i o n o r
e n v i r o n me n t i n wh i c h t h e l e a d e r i s o p e r a t i n g . Qu a l i t i e s
f o r leadership vary with the situation or circumstances and that any traits or skill
can become a quality of leadership in the right situation.
BEHAVIORAL THEORIES:
Behavioral theories of leadership are based upon the belief that great leaders are
made, not born. Rooted in behaviorism, this leadership theory focuses on the
actions of leaders not on mental qualities or internal states. According to this
theory, people can learn to become leaders through teaching and observation.
PARTICIPATIVE THEORIES:
Participative leadership theories suggest that the ideal leadership style is
onet h a t t a k e s t h e i n p u t o f o t h e r s i n t o a c c o u n t . T h e s e l e a d e r
s encourage
participation and contributions from group members and h
e l p g r o u p members feel more relevant and committed to the decision-making
process. In participative theories, however, the leader retains the right to
allow the input of others
MANAGEMENT THEORIES:
Management theories (also known as "Transactional theories") focus on the role
of supervision, organization and group performance. These
T.Y. B.B.I
Page 38
theories b a s e l e a d e r s h i p o n a s y s t e m o f r e w a r d s a n d p u n i s h
m e n t s . M a n a g e r i a l theories are often used in business; when employees are
successful, they are rewarded; when they fail, they are reprimanded or punished.
RELATIONSHIP THEORIES:
Relationship theories (also known as "Transformational theories") focus
u p o n
t h e
b e t w e e n
c o n n e c t i o n s
l e a d e r s
f o r m e d
a n d followers.
Transformational leaders motivate and inspire people by helping g r o u p

me mb e r s s e e t h e i mp o r t a n c e a n d h i g h e r g o o d o f t h e t a s k . Th e s e
leaders are focused on the performance of group members, but also
want each person to fulfill his or her potential. Leaders with this style often have
high ethical and moral standards.
QUALITIES OF A LEADER:
Leaders are not made, it is said, and they are born. This is true because
not e v e r yo n e c a n l e a d . S o me p e o p l e a r e d o c i l e a n d d o r ma n t b y
n a t u r e , a n d constantly require some person to overlook their activities and
remind them a b o u t t h e u l t i ma t e g o a l , s o t h e y a r e n o t c u t o u t
f o r leadership. T h e b e s t leaders are those who are born with the good
qualities of a leader naturally. So, let us see what the qualities of a great leader
are. Th e r e a r e a nu mb e r o f d i f f e r e n t q u a l i t i e s t h a t a l e a d e r mu s t
p o s s e s s , b u t broadly, they can be classified into these categories. Possessing
these traits will make an individual a good leader, and these leadership qualities
should be present in a leader naturally.
T.Y. B.B.I
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GOOD COMMUNICATION SKILL:

Communication is the key to be a great leader. The reason for this is
simple:i f h e p o s s e s s e s t h e o t h e r n i n e l e a d e r s h i p q u a l i t i
e s b u t i f h e f a i l s t o communicate well, he will never be great leader.
What he can do is communicate with others in the organization about what
IT can do to
war.
In other
move the company for

words, good
communication is the key for
developing good business relationships. If he cant establish a good business

working relationship, he is not going to be that leader, that team player. He
will not be able to communicate how IT can add long-term value to the company.
The modern leaders must therefore be equipped with good communication
skill and use new ways to do effective communication.
HONESTY:
The most valuable asset of a leader is honesty. He must be honest with both his
employees and the management committee. Another part of his features is
integrity. Once a leader compromises his or her integrity, it is lost. That
is perhaps the reason integrity is considered the most admirable trait. The leaders
therefore must keep it "above all else."
VISIONARY LOOK:
Leadership qualities are different for different position. For a CIO he must be
thinking for stabilizing the current business and always looking for futures cope
of expansion. He has to be able to look beyond where we are today,
know where the business is going, and be able to use that vision to move the
company
forward. Being able to do this is a rare skill
indeed.
T.Y. B.B.I
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SELECTING A GOOD TEAM:

A good CIO although he possesses sound technical skills he assures that the team
he selects is efficient enough to back up any skill he lacks. Choosing the best
people for such team is a skill. A CIO after all is a human being and does not
have answer for everything. But by working together he creates an atmosphere of
mutual trust and respect; the teams then always find the best solution.
ACTION SPEAKS LOUDER THAN WORDS:
Managers must be able to put aside their concerns to listen to (and appear to
listen to) those around them. As a result, they come know what is going on, and
know what is both said, and said between the lines. They have the knack of
appearing to know what people need even if those needs are not expressed
directly. However, knowing what is going on, and identifying the needs
of those around them is not sufficient. The responsive manager also acts upon
that knowledge, attempting to help fulfill the needs of employees,
superiors,e t c . R e s p o n s i v e ma n a g e r s w i e l d i n f l u e n c e t o s o l v e p r o b l
e ms f o r t h o s e around them, often before even being asked.
ABILITY TO MOTIVATE PEOPLE AROUND:
A good leader must always keep motivating his team mates for good
work a n d s h o u l d ma i n t a i n h e a l t h y e n v i r o n me n t . H e mu s t g i v e
first priority
tos a f e t y o f w o r k e r s a n d s e e t h a t t h e y a r e n o t e x p l o i t e
d by superiors.
T.Y. B.B.I
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CONSISTENCY:
Leadership effectiveness is impossible without consistency. Every leader
hasa n a p p r o a c h t h a t i s u n i q u e t o t h e m . D o n ' t c h a n g e y o u r p
e r s o n a l s t y l e radically after all; it got you in a leadership position. Modify
the rough spots but take care not to confound your staff by displaying
inconsistency. Your
expectations, though subject to modification based on eve
r - c h a n g i n g business needs, should remain as constant as possible. The
business world is confusing enough without you adding unwelcome
surprises into the mix. Keep things simple and consistent.
ABILITY TO STAND AGAINST CRITICS:

As the success rate increases your critics multiply and become louder. Come t o
p e a c e wi t h t h e f a c t t h a t yo u wi l l a l wa ys h a v e a c a mp o f p e o p l e
w h o c r i t i q u e e v e r y d e c i s i o n yo u ma k e . Th e y a r e g e n e r a l l y t h e
o n e s wh o a r e excellent problem-identifiers rather than problemsolvers. Develop your skills of repelling such critics so that they do not
diminish your confidence or enthusiasm. I t t a k e s f o c u s a n d c o n f i d e n c e
n o t t o b e a d v e r s e l y a f f e c t e d b y c r i t i c i s m. Strong leaders learn the
art of listening to critics, but ultimately making decisions for the good
of the department, not to simply please the critics. The following quote
sums it up nicely: "Some of the most talented people a r e t e r r i b l e
leaders because they have a crippling need to be loved by
everyone." As rightly stated by James Schorr.
T.Y. B.B.I
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FOUR MOST IMPORTANT QUALITIES OF

A GOOD LEADER
G o o d l e a d e r s a r e r e q u i r e d i n a l l f i e l d s . Th e y l e a d , mo t i v a t e a n d
i n s p i r e others. Superior leadership is essential in todays high-pressure
competitive wo r l d . T h e f o u r mo s t i mp o r t a n t q u a l i t i e s o f l e a d e r s h i p
a r e g i v e n b e l o w.
RISK TAKING
A leader needs to be ready to take risks. It is claimed that higher, the
risk higher is the gain. A leader should not be living in a comfortable
zone and being happy with whatever he has achieved. He does not rest on past
laurels.Such leaders soon lose their position and the time wave removes them
from t h e p e o p l e s ' mi n d . Th e c o n s t a n t u r g e f o r i n n o va t i o n i s o n e
o f t h e mo s t i mp o r t a n t l e a d e r s h i p q u a l i t i e s . I t h e l p s t h e l e a d e r t o
b e i n t u n e wi t h t h e m odern times and help them to face new challenges
much more effectively.A leader doesnt accept society's definition of what
is possible, they
maket h e i r o w n o u t l i n e s . G o o d l e a d e r s r e f u s e t o a l l o w t h e n
o r m s a n d l i m i t s defined by society to guide their actions or plans. They are
characterized by lack of acceptance for what you see as reality. They just don't
see the world the same way as others. Everything is possible for them despite the
arduousand bumpy road to getting there.
MENTAL TOUGHNESS
A leader needs to be mentally tough. No one can lead with
o u t b e i n g criticized or without facing tough situations. A toughT.Y. B.B.I
Page 43
minded leader seesthings as they are and will pay the price for it.
Leadership creates a certain separation from one's peers which comes
from carrying responsibility that only the leader is able to carry. The
leader must be able to keep his or her own counsel until the proper time. A
leader possesses the ability to live with criticism and not be affected by it. It
is not possible for a leader to please everyone. Leaders are able to limit the
impact of stress on their lives. A good leader thrives on the energy of
stressful situations not the negativity. They assume control even when
they don't have it thus eliminating the stress of not having control.
Good leaders have a self-esteem and self-confidence to ride out of any
tough situation.
SUPIRIOR COMMUNICATION SKILLS
Effective leadership necessitates good listening skills. They need to create
asystem of communication for the organization. Interaction should take
in account the cultural differences too. They possess the ability to ask the right
questions. A good leader possesses superior interviewing skills in order
to choose the right candidate. He is able to communicate clearly the objectives
and procedures required for a task. He needs to be
e x c e l l e n t i n p u b l i c speaking and reading body language. A leader has to be
open to constructive feedback. They have the ability to convince others
and also communicate their vision to their team. They are endowed with the
ability to inspire others to work more productively by their speech or words.
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GOING THE EXTRA MILE

G o o d l e a d e r s a l wa ys p u t mo r e e f f o r t t h a n t h e o r g a n i z a t i o n
e x p e c t s f r o m them. They do activities that the majority of people won't
do. Where most people quit they persevere. This serves as an excellent example
to their team which then strives to achieve much more. A good leader
doesnt just order things; he does it so that others can do it. They not only
motivate them selves in personal development but also motivate those around
them. Good leaders do what is necessary to upgrade their knowledge and
skills and be on the cutting edge in their field.
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LEADERSHIP STRENGTH
Leadership is the ability of a person to guide people in a group
t o wa r d s achieving a task at hand. There are many leadership qualitie
S that help you to become a good leader. These are certain leadership
strengths a person needs to capitalize on to be able to execute effective
leadership. So, given below is a list that entails the important strengths of
leadership that you need to keep in mind to be a good leader.
KEY LEADERSHIP STRENGTHS

TASK EXECUTION
There's many a slip between cup and lip. Coming up with a brilliant idea and
executing that idea are two completely different things. Bringing an idea tolife is
lot easier said than done. An idea really comes to life only when it
ise x e c u t e d
h i s
i s
o n e
t o
o f
p e r f e c t i o n .
t h e
T h u s ,
m o s t importantleadership stren
gths . For this, you need to be a team player. Thereis a fine line between having
followers that follow you out of respect and h a v i n g f o l l o we r s t h a t
f o l l o w b e c a u s e t h e y h a v e n o c h o i c e . An y k i n d o f discord in the
team reflects in the end result and the efficiency of the task performed.
ENVISION
Before you go on to put any kind of strategy into place,
you need
tounderstand and envision what you wish to achieve. This
i s i m p o r t a n t because the expectations of the entire group will ride on
T.Y. B.B.I
Page 46
your shoulders.Thus, one of the important leadership strengths is to be a

visionary becauseyou need to have a very clear vision about how to go
about a task at hand,keeping the long term and short term goals and
repercussions in mind. Youneed to be realistic yet optimistic about the
prospects involved in any task and must take into consideration all the risks
involved.
LISTEN
B e i n g t h e l e a d e r d o e s n o t me a n t h a t yo u o wn t h e p e o p l e yo u
w o r k wi t h . M a n y p e o p l e t e n d t o g e t c a r r i e d a w a y a n d d o n o t
l i s t e n t o t h e i r t e a m members. This can go against them as the team
members then tend to lose
respect for their leader. Hence, one of the most important
l e a d e r s h i p strengths is the ability to listen to your teammates. You
need to genuinely is ten to your team members because they are the only ones
that will tell you if you go wrong at any point of time. Furthermore, listening will
make surethat you connect with your team members on a personal level,
which
willi m p r o v e t h e p e r f o r m a n c e o f y o u r t e a m g r e a t l y . R e
a d m o r e o n team leadership.
RELATIONSHIP BUILDING
No two people are alike and hence, even the thinking of no two people will
match. Hence, there is always scope for discord and dispute within
group members. In such cases, you need to be the peacemaker. You need to be
the one who manages to listen to both sides of the story from an unbiased
third persons point of view. Furthermore, when an idea is conveyed, be
T.Y. B.B.I
Page 47
sure tonever out rightly rule out any kind of suggestion offered, no
matter howi r r e l e v a n t o r u n r e a l i s t i c i t ma y b e . Th i s ma k e s i t l o o k
l i k e t h e g r o u p i s following a dictatorship, which in general, brings
down the morale of thegroup. Thus, relationship building within a team, and
outside of it, is one of t h e mo s t i mp o r t a n t l e a d e r s h i p s t r e n g t h s
e x a mp l e s t h a t a p e r s o n n e e d s t o keep in mind. Read more onstrategic
leadership.
ACCEPT MISTAKES
There will be times when as a leader and as a group, you may fail. This will b e a
h a r d t i me f o r yo u b u t yo u n e e d t o u n d e r s t a n d t h a t yo u h a v e
b e e n patient. Lashing out at your team members, blaming them for
failure will o n l y a d d t o y o u r r es ent m e n t . If
t h e s u c c es s i s s ha r e d , t he n s o m us t t h e failure be shared. So in
fact, when the team fails, ensure that you take anequal amount of
responsibility in the failure. Do not cower to admit defeat because if you do so,
then you may lose the respect of your team. So accept your mistake, learn
from it and try to improvise as a leader. This will earnyou respect and
the most loyal team members you can ever hope to find.Read more on
leadership.Leadership strengths are essential qualities that distinguish a
good leader from a bad one. Irrespective of what the saying is, I believe that
leaders arema d e, th e y a r e no t bo r n a n d a pe r s o n c a n a l w a y s be a
g o o d l ea d er i f he capitalizes on the above given list of leadership strengths.
T.Y. B.B.I
Page 48
LEADERS AND MANAGERS :

A COMPARISON
E x p e r t s a r g u e t h a t l e a d e r s h i p a n d ma n a g e me n t a r e d i f f e r e n t . Ab r
a h a mZaleznik (1986) argues that leaders are different from managers and they
arevery different kind of people. They differ in motivation, personal history and
how they think and act.
1.M a n a g e r s t e n d t o t a k e i mp e r s o n a l a t t i t u d e s t o wa r d g o a l s , wh e r
e a s leaders take a personal and active attitude towards goals.
2. Managers tend to take moderate risk and establish strategies and makedecision
s. Leaders work from high-risk positions.
3 . M a n a g e r s a r e a p p o i n t e d t o t h e i r p o s i t i o n s . Th e i r a b i l i t y t o i n f
l u e n c e employees is based on the formal authority inherent in that
position.
4. Leaders are appointed or merge from within a work group and are
able to influence others for reasons beyond formal authority.
5. Managers prefer to work with people; they avoid solitary activity because it
makes them anxious. Leaders, who are concerned with ideas, relate
to people in more intuitive and emphatic ways.
6. Good management brings about order and consistency by
formulating plans, designing organization structure and monitoring
results against the plans.
7. Leadership, in contrast, is coping with change. Leaders establish vision
of t h e f u t u r e a n d a r t i c u l a t e t h i s v i s i o n a n d i n s p i r e p e o p l e
t o o v e r c o me hurdles.
8. Managers use the authority inherent in their designated formal rank
to obtain compliance from organizational members
T.Y. B.B.I
Page 49
THE BE,KNOW,DO PRINCIPLE OF

LEADERSHIP
If you are a leader who can be trusted, then those around you will grow to
respect you. To be such a leader, there is a leadership framework to guideyou:Be a professional. Examples: be loyal to the orga
n i z a t i o n , p e r f o r m selfless service, and take personal responsibility.B e a p r o f es s i o n a l w ho po s s es s g o o d ch a r a c t e r tr a i t s . E x a m pl es :
h o nes ty , c o m p e t e n c e ,
t ,
i n t e g r i t y ,
c a n d o r ,
c o m m i t m e n
c o u r a g e , straightforwardness, imagination.
-Know the four factors of leadership - follower,

l e a d e r , c o m m u n i c a t i o n , and situation.Know yourself. Examples: strengths and weakness of
y o u r c h a r a c t e r , knowledge, and skills.- K n o w h u m a n n a t u r e .
E x a m p l e s : h u m a n n e e d s , e m o t i o n s a n d h o w p e o p l e respond
to stress.- K n o w y o u r j o b . E x a m p l e s : b e p r o f i c i e n t a n d b e
a b l e t o t r a i n o t h e r s i n their tasks.- K no w y o ur o r g a n i za ti o n.
E x a mp l es : w her e t o g o f o r he l p , i t s c l i ma t e a n d culture, who the
unofficial leaders are.- D o pr o v i d e d i r e c t i o n. E x a m pl es : g o a l s e t ti ng ,
p r o b l em s o l v i ng , d e ci s i o n making, planning
Do implement. Examples: communicating, coordinating, su
p e r v i s i n g , evaluating.Do motivate. Examples: develop moral and esprit
d e c o r p s i n t h e organization, train, coach, and counsel.
T.Y. B.B.I
Page 50
THE PROCESS OF GREAT LEADERSHIP

The road to great leadership that is Common to successful leaders:
Challenge the process - first, find a process that you believe needs to
be improved the most.
Inspire a shared vision - next, share you vision in words
t h a t c a n b e understood by your followers.
Enable others to act - give them the tools and methods
t o s o l v e t h e problem.
Model the way - when the process gets tough, get your hands dirty. A
bosstells others what to do...a leader shows that it can be done.
En c o u r a g e t h e h e a r t - s h a r e t h e g l o r y wi t h yo u r f o l l o w e r s '
h e a r t , wh i l e keeping the pains within your own.
T.Y. B.B.I
Page 51
THUMB RULES OF A SUCCESSFUL

LEADER
Whether a leader is operating in the West or in India, these are some Of the
thumb rules when it comes to successful leadership:- T he s i x m o s t
i m po r ta n t w o r ds : " I a d mi t I ma d e a mi s ta ke. " - T he f i v e
m o s t i m p o r ta n t w o r ds : " Y o u di d a g o o d j o b . " - T h e f o ur
m o s t i m p o r ta n t w o r ds : " W h a t i s y o ur o pi ni o n ?" - T h e t h r e e
most important words: "If you please."-The
two most important words: "Thank you,"- T h e
one most important word: "We"-The lea st most
important word: "I"
T.Y. B.B.I
Page 52
LEADERSHIP DEVELOPMENT
DEVELOPING INDIVIDUAL LEADERS
Traditionally, leadership development has focused on dev
e l o p i n g t h e leadership abilities and attitudes of
individuals.J u s t
r n
w i t h
l i k e
t h e
p e o p l e
a b i l i t y
a r e n ' t
t o ,
a l l
b o
s a y , playfootballlikeZi
nedine Zidaneo r s i n g l i k e Luciano Pavarotti, p e o p l e aren't all born

with the ability to lead. Different personal characteristics can help or hinder a
person's leadership effectiveness and require formalized programs for
developing leadership competencies yet; everyone can develop
their leadership effectiveness. Achieving
such development takes focus, practice and persistence more akin to
learning a musical instrument than reading a book. C l a s s r o o m s t y l e t r a i ni ng a nd a s s o ci a t e d r e a d i ng i s ef f e ct i v e i n he l p i n g l ea d
e r s t o k no w mo r e a bo u t w ha t i s i n v o l v e d i n l ea di ng w el l .
H o w ev e r , k n o w i n g w h a t t o d o a n d d o i n g w h a t y o u k n o w a r e
t w o v e r y d i f f e r e n t outcomes;managementexpertHenry Mintzbergi s
o ne p er s o n t o hi g hl i g h t this dilemma. It is estimated that as little as 15%
of learning from traditional classroom style training results in sustained
behavioral change within the workplace. T h e s u c c es s o f l ea d er s hi p
d e v el o p me n t ef f o r ts ha s be e n l i nk e d t o t hr e e variables Individual
learner characteristics The quality and nature of the leadership development
program Genuine support for behavioral change from the leader's
supervisor Military officer training academies, such as the Royal Military
T.Y. B.B.I
Page 53
Academy Sandhurst, g o t o g r e a t l e n g t h s t o o n l y a c c e p t
c a n d i d a t e s w h o s h o w t h e highest potential to lead well. Personal
characteristics that associated with successful leadership development
include leader motivation to learn, a high achievement drive and personality
traits such as openness to experience, aninternal focus of control, and self
monitoring.
Development is also more likely to occur when t
h e d e s i g n o f t h e development program: Integrates a range of
developmental experiences over a set period of t i m e (e. g . 6
1 2 mo nt h s ). T h es e ex pe r i e n c e s ma y i nc l ud e 36 0 deg r e e feedback ,
experiential classroom style programs, business school
stylecoursework,executive coaching, r e f l e c ti v e j o u r na l i n g , m e nto r i n
g a n d more. Involve goal setting, following an assessment of key
developmental n e e ds a nd t he n e v a l ua t e t he a ch i ev e m e nt o f g o a l s
a f t er a g i v e n ti me period.
Among key concepts in leadership development one may find:- E x p e r i e n t i a l
l e a r n i n g : p o s i t i on i n g t h e i n d i v i d ua l i n t h e f o c u s o f t h e learning
process, going through the four stages of experiential learning as
formulated by David A. Kolb:1. Concrete experience2. Observation and
reflection3. Forming abstract concept4. Testing in new situations.- Self
efficacy: The right training and coaching should bring about
'Self e f f i c a c y' i n t h e t r a i n e e , a s Alb e r t B a n d u r a f o r mu l a t e d : A
p e r s o n ' s b e l i e f about his capabilities to produce effects- Visioning:
Developing the ability to formulate a clear image of the aspiredfuture of an
organization unit.
T.Y. B.B.I
Page 54
DEVELOPING LEADERSHIP AT A
COLLECTIVE LEVEL
More recently, organizations have come to understand that leadership

can also be developed by strengthening the connection between, and alignment
o f , t h e e f f o r t s o f i n d i v i d u a l l e a d e r s a n d t h e s ys t e ms t h r o u g h
which
theyi n f l u e n c e o r g a n i z a t i o n a l o p e r a t i o n s . T h i s h a s l e d t o a
differentiation b e t w e e n l e a d e r d e v e l o p me n t a n d l e a d e r
s h i p d e v e l o p m e n t . L e a d e r development focuses on the
development of the leader, such as the personal attributes desired in a leader,
desired ways of behaving, ways of thinking or feeling. In contrast, leadership
development focuses on the development of leadership as a process. This
will include the interpersonal relationships,s o ci a l i nf l u e n c e pr o c es s ,
a n d t h e t ea m dy n a mi cs be tw e e n t h e l ea de r a nd his/her team at
the dyad level, the contextual factors surrounding the team such as the
perception of the organizational climate and the social network linkages
between the team and other groups in
the organization.O n e p r a c t i c a l e x a m p l e o f d e v e l o p i n g l e a d e r s h
i p s p e c i f i c a l l y s o a s t o influence an organization's safety culture is
described by Burman &
EvansB o t h f o r m s o f d e v e l o p m e n t m a y m u t u a l l y i n f l u e n
c e e a c h o t h e r , a s exemplified in the concept of "Deep Change" in
T.Y. B.B.I
Page 55
Robert E. Quinn's 1996 book of the same

title.Le a der s hi p de v e l o p m e n t ca n b u i l d o n t he d ev e l o pm e nt o f i n
d i v i d u a l s (including followers) to become leaders. In addition, it also
needs to focus on the interpersonal linkages between the individuals in the
team.In the belief that the most important resource that an organization
possesesis the people that comprise the organization, some organizations
address the development of these resources (even including the leadership).In
contrast, the concept of "Employee ship" recognizes that what it takes to be a
good leader is not too dissimilar to what it takes to be a good employee.
Therefore, bringing the notional leader together with the team to
explore these similarities (rather than focusing on the differences)
brings positive results. This approach has been particularly successful in
Sweden where the power distance between manager and team is small.
T.Y. B.B.I
Page 56
Conclusion
In conclusion leadership style is depending up the roll of the particular system
that a is willing to follow.It depends up on the leader ideological nature.The
successes are depend up on his/ her planes and objective to achieve the goal.
Leader should have a Long-term plane or short term plane to achieve the
objectives.It also depends upon the approaches that leaders are going to put
forward. The approaches have to choose according to the situation that the
leadership is going to take over.A quality leader should have a good charisma
and quality characteristics
T.Y. B.B.I
Page 57
Questionnaire :
1)
Explain any 5 Theories of Leadership ?
2)
What are the leadership strengths ?
3)
What are the different types of leadership ?
4)
Explain a difference between Leader & Manager ?
5)
Explain essential qualities of Leadership ?
6)
Leadership role in banking sector ?
BIBILOGRAPHY
http://en.wikipedia.org/wiki/Leadership_styles
http://www.scribd.com
http://www.slideshare.net
T.Y. B.B.I
Page 58

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LEARDERSHIP STYLE IN BANKING SECTOR

SYDENHAM COLLEGE OF COMMERCE & ECONOMICS,

LEARDERSHIP STYLE IN BANKING SECTOR

I, ASHWINI SANJAY PARAB Student of B.Com Banking and

SECTOR.Whenever the data/information have been taken from any book

The information submitted is true and original to the best of my

Signature of the student

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

I Have great pleasure in presenting this project of LEADERSHIP STYLE IN

LEARDERSHIP STYLE IN BANKING SECTOR

PAST HISTORY OF LEADERSHIP

STYLEIN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

INTRODUCTION TO STATE BANK

FFOUR MOST IMPORTANT

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

You lead through two-way communication. Much of it is nonverbal.

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

PAST HISTORY OF LEADERSHIP

LEARDERSHIP STYLE IN BANKING SECTOR

political leaders in the form of revolutionaries fighting for the countrys

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

EFFECTIVE LEADERSHIP STYLE IN

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

and Hoest (2001) consider 'rewards' as''the most influential and

LEARDERSHIP STYLE IN BANKING SECTOR

LEARDERSHIP STYLE IN BANKING SECTOR

attached with the performance of the Organization, or in the achievement of

LEARDERSHIP STYLE IN BANKING SECTOR