O R G A N I S A T I O N A L L E A D E R S H I P

Subject: MBA Organisational Behaviour

Batch: Feb 2010

Tutor: Dr. John Davies

Presented By:1. Jatinder Virk2. Penal 3. Bhavika4. Ravi5. Hitesh6. Hiren7. Luxmi

What is leadership?

Leading people

Influencing people

Commanding people

Guiding people

What is Leadership?

• Leadership is the process of influencing the behaviour of others to work willingly and enthusiastically for achieving predetermined goals.

• There can be no leadership without followers.

• A leader is capable of influencing them.

• It is an illusive art, practiced more on the basis of feel than on the basis of knowledge.

Definitions• According to TERRY• “Leadership is essentially a continuous process of

influencing behaviour. A leader breaths life into the group and motivates it towards goals. The lukewarm desires for achievement are transformed into a burning passion for accomplishment.”

• In simple words if we describe leadership in business world is that it is same like management both works for the flourishing the business but management more works on facts and figures but leadership works on persons own instinct how much he is able to influence people.

Meaning of Leadership Word• L Learning• E Energy• A Attitude• D Direction• E Enthusiastic• R Responsibility • S Sincere• H Honesty• I Integrity• P Professional

Indispensable Leadership Skills

Management & leadership • "Leadership and management are two distinctive

and complementary systems of action. Each has its own function and characteristic activities. Both are necessary for success in an increasingly complex and volatile business environment...strong leadership with weak management is no better, and is sometimes actually worse, than the reverse. The real challenge is to combine strong leadership and strong management and use each to balance the other." — John Kotter, Management/Leadership Author and Professor of Organizational Behavior, Harvard Business School

Balancing StrengthsManagement

• Processes• Facts• Intellectual• Head• Position power• Control• Problem solving• Reactive• Doing things right• Rules• Goals• Light a fire under people• Written communications• Standardization

leadership• People• Feelings• Emotional• Heart• Persuasion power• Commitment• Possibility thinking• Proactive• Doing the right things• Values• Vision• Stoke the fire within people• Verbal communications• Innovation

Common Activities

• Planning • Organizing• Directing • Controlling

Planning

Manager• Planning• Budgeting• Sets targets• Establishes detailed steps• Allocates resources

Leader• Devises strategy

• Sets direction• Creates vision

Organizing

Manager• Creates structure• Job descriptions• Staffing • Hierarchy• Delegates• Training

Leader• Gets people on board

for strategy• Communication• Networks

Directing Work

Manager• Solves problems• Negotiates • Brings to agreement

Leader• Empowers

people• Optimism leader

Controlling

Manager • Implements control systems• Performance measures• Identifies variances• Fixes variances

Leader• Motivate• Inspire• Gives sense of

accomplishment

What is More Important?

• Both management and leadership are needed to make teams and organizations successful. Trying to decide which is more important, is like trying to decide whether the right or left wing is more important to an airplane's flight.

Leadership Characteristic • Self-Esteem• Strong Internal Motivation—The “Fire

Inside"• Tolerance to Ambiguity• Courage• Optimism• Goal Orientation / Vision• Locus of Control• Screening For Opportunity• Need to Achieve

How to Become Winning Leader

• Make People Trust.• Set an example.• Be approachable and accessible.

 • Praise and criticize on due time.  • Do not take credit for your

team’s work.  

• Know your team well. • Focus on achieving your goals.  • Make sure that every member of

your team feels important.  • Take initiative to get things

done. • A leader has vision.  • Take initiative to get things

done. • A leader has vision.  

LEADERSHIP THEORIES

• Charismatic Theory

• Trait Theory

• Behavioural Theory

• Situational Theory

Charismatic Leadership Theory

• This theory is also known as Great Man Theory.

• It is based on a principle “a leader is born and is not made”.

• A leader has some charisma which acts as influencer.

• Charisma is a God gifted attribute in a person which makes him a leader irrespective of the situations in which he works. • Charismatic leaders are those who inspire followers and have a major impact on their organizations through their personal vision and energy.

According to Robert House “Charismatic leader has extremely high levels of self

confidence, dominance, and a strong conviction in the normal righteousness of his/her beliefs, or at least the ability to convince the followers that he/she possesses such confidence or conviction.”

Assumptions of Charismatic Theory• Leaders have some exceptional inborn leadership

qualities which are bestowed upon them by the divine power.

• Inborn qualities are sufficient for a leader to be successful.

• These qualities can’t be enhanced through education and training.

• These qualities make a leader effective and situational factors don’t have any influence.

Trait Theory• The weakness of charismatic theory gave way to more

realistic approach to leadership.

• Trait is defined as relatively enduring quality of an individual.

• This theory accepted the fact that leadership traits are not completely inborn but can also be acquired through learning and experience.

• This approach seeks to determine ‘what makes a successful leader’ from the leaders own personal characteristics.

• It gives hypothesis on the qualities such as intelligence, attitudes, personality and biological factors for effective leaders.

• Various traits are classified into innate and acquirable traits.

1. Innate traits

Innate qualities are those which are possessed by various individuals since their birth. These qualities are natural and often known as god-gifted. On the basis of such qualities, it is said that ‘leaders are born and not made’. These qualities can not be acquired by the individuals. The following are the major innate qualities :

Physical features :- Physical features of a man are determined by heredity factors. Physical characteristics and rate of maturation determine the personality formation. To some extent, height, weight, physique, health and appearance are important for leadership.

Intelligence :- Intelligence is generally expressed in terms of mental ability. It, to a very great extent is a natural quality in the individuals because it is directly related with brain. Though, many psychologists claim that the level of intelligence in an individual can be increased through various training methods

2. Acquirable Traits Acquirable qualities of leadership are those which can be acquired

and increased through various processes. Such as, when a child is born, he learns many of the behavioural patterns through socialisation and identification processes. The following are the major acquirable qualities:-

• Emotional Stability:- A leader should have high level of emotional stability. He should be free from bias, is consistent in action, and refrains from anger. He must be self confident and believes that he can meet most situations successfully.

• Human Relations:- A leader should know how to deal with human beings. He should have intimate knowledge of people, their relationship to each other and their reaction to various situations.

• Empathy:- Empathy refers to observing the things or situations from others point of view. It is considered as very important aspect for successful leader. Empathy requires respect for the other persons, their rights, beliefs, values and feelings.

• Objectivity:- Objectivity implies that what a leader does should be based on relevant facts and information. The leader must be objective and doesn’t permit himself to get emotionally involved to the extent that he finds it difficult to make an objective diagnosis and implement the action required.

• Motivating Skills:- A leader must be self motivated and also has requisite quality to motivate his followers. Both the inner drive and external forces motivate a person for higher performance. The leader can play active role in stimulating the inner drives of his followers.

• Technical Skills:- Leader must have the ability to plan, organise, delegate, analyses, seek advice, make decision, control and win cooperation. The use of these abilities constitute technical competence of leadership.

• Communication Skills:- A successful leader knows how to communicate effectively. Communication has greater force in getting the acceptance from the receivers of communication. A leader uses communication skillfully for persuasive, informative, and stimulating purposes.

• Social Skills:- A successful leader has social skills. He understand people and knows their strengths and weaknesses. He has the ability to work with people and conducts himself so that he gains their confidence and loyalty, and people cooperate willingly with him.

Behavioural Theory

• Behavioural theory emphasises that strong leadership is the result of effective role behaviour.

• Leadership is shown by a person’s acts more than by his traits.

• Researchers exploring leadership role come to the conclusion that to operate effectively, group needs to perform two functions:-

(i) Task Related Function:- It is also known as problem solving functions, relates to providing solutions to the problem faced by the group, in performing jobs and activities.

(ii) Group Maintenance Function:- It is also known as social functions, relates to action of mediating disputes and ensuring that individuals feel valued by groups.

For performing these Two functions successfully two different type of leader’s behaviour are required these are:-

• Functional Behaviour:-Functional behaviour influences followers positively and includes such functions as setting clear goals, motivating employees for achieving goals, raising the level of morale, building team spirit, effective two way communication.

• Disfunctional Behaviour:-Disfunctional behaviour is unfavorable to the followers and denotes ineffective leadership. Such a behaviour may be inability to accept employees ideas, display of emotional immaturity, poor human relations etc.

Situational Theory• Situational theory is also known as Contingency

theory.

• This theory was applied first time in 1920 in the armed forces of Germany with the objective to get good generals under different situations.

• The prime attention in this theory is given to the situation in which leadership is exercised.

• Effectiveness of leadership is affected by the factors associated with the leader (Leader’s behaviour) and the factor associated with the situation(Situational factors).

• Transactional leadership – based on the principles of social exchange. The basic premise is that individuals engage in social interaction expecting mutual social, political, psychological, and economic benefits or rewards.

• Transformational leadership – is focused on effecting revolutionary change in organizations through commitment to the organization in all its facets.

Leader’s BehaviourLeader’s behaviour is further affected by two

variables:-• Leader’s Characteristics:-The behaviour of the

individual is influenced by intelligence and ability, his characteristics like his personality characteristics, attitudes, interest, motivation, and physical characteristics such as age , sex, and physical features.

• Leader’s Hierarchical Position:-Leader’s hierarchical position in the organisation is very important because persons at different levels face different kinds of problem which effect the degree of participation between the superior and his subordinates in arriving at decisions to solve the problems.

Situational FactorsThe various situational factors are grouped into four

categories:-• Subordinate Characteristics:-It includes personality

characteristics, attitude, interest, motivation, physical characteristics such as age, sex, physical features.

• Leader’s Situation:-The variables which determine the leaders situation are:

(i)Leader’s position power:-It helps in influencing others. High position power simplifies the leader’s task of influencing others, while low position power makes the leader’s task more difficult.

(ii)Leader’s Subordinate relation:-It is based on the classic exchange theory which suggests that there is two way influence in a social relationship. If the leader has good subordinates, and good relation with them, he is likely to be more effective.

• Group Factors:- Various group factors like task design, group composition, group norms, peer group relationship affect leadership effectiveness and performance. If these factors are favourable, the leader will be effective.

• Organisational Factors:- Organisational factors like organisational climate and organisational culture affect leadership effectiveness. If these are conductive, the leader will be effective.

“Communication is the most important leadership skill.”

-Lin Both well, The Art of Leadership

Leadership is Enacted Through Communication

•A Leader should be :

Communication Oriented 

Responsive and receptive to questions from participants 

Ask and persuade rather than order or command 

Explain the reasons behind changes and policies

Types of Communication 

Speaking 

Listening 

Non Verbal 

Writing

Communication Tools for Leaders

•Group Discussions

•Public Speaking

•One on One

•Formal Meetings

LEADERSHIP FOR EFFECTIVE

COMMUNICATION•A LEADER has keen interest in the topic.

•Able to involve everyone in the discussion.

•Able to balance the viewpoints.

•Has a basic plan, but is flexible.

•Directs the discussion, keeps focus on goals.

COMMUNICATION TO EMPOWER THE FOLLOWERS• Active Listening for understanding the followers problems and queries.

• Asking for more information.

• Paraphrasing (expressing the same message in different and simplest form).

• Checking the assumptions about the other person’s feelings.

• Sharing information to help the other person understand his/her point of view.

• Offering alternatives

Communication Leadership Framework

• Core communication skill• Active listening• Itemized response (appreciative, full

response) e.g. "What I like about it is ...." or "What concerns me is ...“ .

• Paraphrase e.g. “I hear u saying…”

• Making statements rather than asking questions . e.g., "don’t you think it would be better if ...". 

Cont…

• Managerial Communication Skill- listening (subodinates,staffs)- Facilitating- Directing.- Questioning (close questioning, open

questioning,pesonal questioning)

• Corporate Communication Skill-Interpersonal communication- public speaking- presentations

NEW LEADERSHIP AND COMMUCATION (suggestions)

• Effective communication is the oxygen for new-breed leadership• Communication is not one-directional

– Engage strategically– Listen hard– Create an environment that allows candid feedback/ criticism

• Communication needs to be regular– In good times and bad– Never skip scheduled engagements

• Communication has to be open and honest– Own up: take personal responsibility for hard decisions– Resist the urge to spin – it always backfires

Keeping the Communication Channels

Open

• Responsible leaders work hard to prevent bottlenecks and keep channels open up, down, and throughout the organization by.

• (1) Establishing an appropriate working climate and adjusting their communication behavior to fit the situation, and

• (2) Practicing techniques to improve communication in their organization.

Practicing Techniques are

• Potential Techniques Active listening.

Being with the audience.

Making words count.

Tone and body language.

Using silence.

LEADERSHIP AND COMMUNICATION (IN A NUTSHELL)

• Communication is the key competency of today’s successful leader.

• Effective communication is two-way. This means sharing relevant information with the right audience at the right time, but also listening to the concerns, fears, suggestions and criticism of employees.

• There are many tools to achieve - Some of the tools useful, include regular leadership video conferences, lunch time forums with a cross section of staff at all levels, work place visits, personal letters and personal sessions as part of the induction programme for new employees.

Cont…

• Consistent and regular communication is key to organizational harmony.  Employees interpret corporate silence in many ways - not least of which is that the leadership has something to hide.

• Part and parcel of being a leader is to take hard decisions; to take responsibility for those and to live with the consequences. Leadership communication is of necessity honest and open - it deals with the bad news as confidently as with the good.

Cont…

• The Communication and Leadership presentation seeks to help team leaders communicate powerfully, not by changing the way they act, but by building on who they really are.

To lead people, walk beside them ...As for the best leaders, the people do not

notice their existence.The next best, the people honor and

praise.The next, the people fear;

and the next, the people hate ...When the best leader's work is done the

people say,"We did it ourselves!"

- Lao-

Common Leadership Mistakes

Case Study Richard Branson: Secrets to My Success

• Sir Richard Branson is an iconic and legendary figure within business circles. His Virgin companies span the globe, while his thirst for brand domination and sense of adventure tell a story of an fascinating and thought provoking life sprinkled with danger, high risk tactics – that push the boundaries of the possible, – and an all encompassing purpose.

Richard Branson’s Habitual Patterns of Behavior

• Stepping Outside of Comfort Zone

• Facing Problems Head-on

• Open to Change• Making Every Second

Count• Hunting for New

Opportunities• Asking Questions• Challenging Self• Enjoys Living Life to

Fullest• Having Fun

• Meeting New People• Trying New Things• Enjoys Working• Carries a Notepad• Surrounds Self with

Great People• Takes Calculated Risks• Takes Time to Read &

Learn• Takes Time to Catnap

& Daydream• Takes Time to Think

Richard Branson’s Skill Set

• Flexible Thoughts• Sales Skills• Public Relations• Negotiation Skills• Influence Skills• Leadership Skills• Good Listening Skills• Good Communication Skills

Richard Branson’s Beliefs• Believes that anything is possible.• Believes that everything is negotiable.• Believes that business is a fun and creative way of life.• Believes in developing people.• Believes in leading from the front.• Believes in action over hope.• Believes in being polite and honest.• Believes in doing no harm.• Believes in building teams.• Believes in integrity.• Believes in respect.• Believes in trust.• Believes in “Self” controlling personal destiny.

Richard Branson’s Qualities

• There are certain and specific qualities that Richard Branson projects out into the world on a daily basis that help shape his character and public persona. These qualities include:

• A solution focused attitude.• An ambitious and passionate nature.• A competitive, flexible, bold, and ruthless approach to life.• A fun-loving, humorous, cheeky, curious, enthusiastic and charming character.

Richard Branson’s Viewpoint

• He lives his life on the edge.• He lives life to the fullest.• He lives life for the moment.• He lives life with a “work hard, play hard” mentality.• He understands that a solution will always be found no matter how big the problem.• He chases his dreams while at the same time remaining grounded in the real world.• He perceives that money is a means of making things happen, and not an end in itself.

Richard Branson Quotes

• Business opportunities are like buses, there’s always another one coming.

• A business has to be involving, it has to be fun, and it has to exercise your creative instincts.

• My mother was determined to make us independent. When I was four years old, she stopped the car a few miles from our house and made me find my own way home across the fields. I got hopelessly lost.

People do what their minds and

emotions tells them to do…. The LEADER

works on their emotions through

his/her thoughts and actions. So, our advise to our dear classmates is to be a future

action LEADER

QUESTIONS???