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Leadership Theories

Chapter 5 Leadership Theories

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Leadership Theories

Module Code and Module TitleTitle of SlidesA Leadership Story:A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port. The leaders organise the labour into efficient units and monitor the distribution and use of capital assets progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible. Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.

Module Code and Module TitleTitle of SlidesA Leadership Story:And shouts down to the assembled group belowWrong Way![Story adapted from Covey (2004) The Seven Habits of Highly Effective People].

Management is doing things right, leadership is doing the right things (Warren Bennis & Peter Drucker)

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LEADERSHIP

Managers at all levels are business leaders. The business (literally the area in which one is busy) is about producing quality products or services at a profit (or at least in the most cost-effective way). At the heart of that role lie the three overlapping core responsibilities of any leader:

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LEADERSHIP

DEFINITION: According to Koontz and O Donnell it is the art of including the subordinates to accomplish their assignments with zeal and confidence. Zeal reflects ardour, earnestness and intensity in execution of work; confidence reflects experience and technical ability.

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CONCEPT OF LEADERSHIP

Managers are people who do things right, while leaders are people who do the right thing.'Leadership is all about courage to dream big.Leadership is a complex process by which a person influences others to accomplish a mission, task or objective and directs the organization in a way that makes it more cohesive and coherent.Leadership makes people want to achieve high goals and objectives, while, on the other hand, bosses tell people to accomplish a task or objective.Leadership can be used for good or ill.Leadership skills can be perverted to pursue bad ends.

Module Code and Module TitleTitle of SlidesLeaders vs. ManagersLEADERS:innovatefocus on people

inspire trusthave a long-range viewask what and whyhave eyes on horizon

originatechallenge status quodo the right thing

MANAGERS:administratefocus on systems and structuresrely on controlhave a short-range viewask how and whenhave eyes on bottom lineinitiateaccept status quodo things right

Module Code and Module TitleTitle of SlidesThe difference between leading and managing:Leading is aboutGiving direction, especially in times of change.Inspiring or motivating people to work willingly.Building and maintaining teamwork.Providing an example.Producing a personal output.

Managing is aboutRunning the business in steady state conditions.Day-to-day administration.Organising structures and establishing systems.Controlling, especially by financial methods.

Module Code and Module TitleTitle of SlidesThe leader-manager-professional concept

Module Code and Module TitleTitle of SlidesWe Need Both Leading and Managing

Module Code and Module TitleTitle of SlidesSo What Do Leaders Do?Provide Direction - Where we are headedCommunicate - The Why & Benefits of the directionEnable, Coach and CounselRecognise Results and Reinforce Desired Behavior

Module Code and Module TitleTitle of SlidesTypes of Leadership StyleAutocratic:Leader makes decisions without reference to anyone elseHigh degree of dependency on the leaderCan create de-motivation and alienation of staffMay be valuable in some types of business where decisions need to be made quickly and decisively

Module Code and Module TitleTitle of SlidesTypes of Leadership StyleDemocratic:Encourages decision making from different perspectives leadership may be emphasised throughout the organisationConsultative: process of consultation before decisions are takenPersuasive: Leader takes decision and seeks to persuade others that the decision is correct

Module Code and Module TitleTitle of SlidesTypes of Leadership StyleDemocratic:May help motivation and involvementWorkers feel ownership of the firm and its ideasImproves the sharing of ideas and experiences within the businessCan delay decision making

Module Code and Module TitleTitle of SlidesTypes of Leadership StyleLaissez-Faire:Let it be the leadership responsibilities are shared by allCan be very useful in businesses where creative ideas are importantCan be highly motivational, as people have control over their working lifeCan make coordination and decision making time-consuming and lacking in overall directionRelies on good team workRelies on good interpersonal relations

Module Code and Module TitleTitle of SlidesAre Leaders Born or Made?Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience.

Module Code and Module TitleTitle of SlidesTheories of LeadershipTrait theories:Is there a set of characteristics that determine a good leader?Personality?Dominance and personal presence?Charisma?Self confidence?Achievement?Ability to formulate a clear vision?

Module Code and Module TitleTitle of SlidesTheories of LeadershipTrait theories:Are such characteristics inherently gender biased?Do such characteristics produce good leaders?Is leadership more than just bringing about change?Does this imply that leaders are born not bred?

Module Code and Module TitleTitle of SlidesTheories of LeadershipBehavioural:Imply that leaders can be trained focus on the way of doing thingsStructure based behavioural theories focus on the leader instituting structures task orientatedRelationship based behavioural theories focus on the development and maintenance of relationships process orientated

Module Code and Module TitleTitle of SlidesTheories of LeadershipContingency Theories:Leadership as being more flexible different leadership styles used at different times depending on the circumstance.Suggests leadership is not a fixed series of characteristics that can be transposed into different contexts.

Module Code and Module TitleTitle of SlidesTheories of LeadershipMay depend on:Type of staffHistory of the businessCulture of the businessQuality of the relationshipsNature of the changes neededAccepted norms within the institution

Module Code and Module TitleTitle of SlidesTheories of LeadershipTransformational:Widespread changes to a business or organisationRequires:Long term strategic planningClear objectivesClear visionLeading by example walk the talkEfficiency of systems and processes

Module Code and Module TitleTitle of SlidesTheories of LeadershipInvitational Leadership:Improving the atmosphere and message sent out by the organisationFocus on reducing negative messages sent out through the everyday actions of the business both externally and crucially, internallyReview internal processes to reduce theseBuild relationships and sense of belonging and identity with the organisation that gets communicated to customers, etc.

Module Code and Module TitleTitle of SlidesTheories of LeadershipTransactional Theories:Focus on the management of the organisationFocus on procedures and efficiencyFocus on working to rules and contractsManaging current issues and problems

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