LeadershipLeadership

INTRODUCTIONLEADER

DEFINITION:-

A LEADER IS A PERSON WHO LEADS A GROUP TO ACCOMPLISH A GOAL .

• WITHOUT A LEADER, AN ORGANISATION WOULD BE

“LIKE A HERD OF CATTLE WITHOUT A KEEPERLIKE AN ARMY WITHOUT A GENERAL

LIKE A NIGHT WITHOUT MOONLIKE A GROUP OF COWS WITHOUT A BULL

SUCH WOULD BE THE COUNTRYWHERE THE KING IS NOT SEEN”

Comparing Leaders and Managers Leaders

• Administer

• Originate

• Develop

• Inspire Trust

• Think Long Term

• Ask What and Why

• Watch the horizon

• Challenge status quo

• Are their own people

• Do the right thing

Managers

• Implement

• Copy

• Maintain

• Control

• Think short term

• Ask How and When

• Watch bottom line

• Accept status quo

• Are good soldiers

• Do things right.

LeadershipLeadership Leadership is the process where a person

exerts influence over others and inspires, motivates and directs their activities to achieve goals.

Effective leadership increases the firm’s ability to meet new challenges.

– Leader: The person exerting the influence.• Personal Leadership Style: the ways leaders choose to

influence others.– Some leaders delegate and support subordinates, others are very

authoritarian.

– Managers at all levels have their own leadership style.

Leadership Across CulturesLeadership Across Cultures

• Leadership styles may vary over different cultures.– European managers tend to be more people-oriented

than American or Japanese managers.• Japanese culture is very collective oriented, while

American focuses more on profitability.– Time horizons also are affected by cultures.

• U.S. firms often focus on short-run efforts.• Japanese firms take a longer-term outlook.

LeadingLeading• In leading, managers determine direction,

state a clear vision for employees to follow, and help employees understand the role they play in attaining goals.

• Leadership involves a manager using power, influence, vision, persuasion, and communication skills.

• The outcome of the leading function is a high level of motivation and commitment from employees to the organization.

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LEADERSHIPLEADERSHIP STYLESSTYLES

LEADERSHIP STYLE

DEFINITION:-

• LEADERSHIP STYLE IS THE TYPICAL APPROACH A PARTICULAR PERSON USES TO LEAD PEOPLE.

IMPORTANCE OF LEADERSHIP STYLE

• IN THE MEANWHILE, THE STUDY OF LEADERSHIP STYLES IS USEFUL BECAUSE IT FOCUSES ON WHAT THE LEADER ACTUALLY DOES IN GETTING WORK ACCOMPLISHED THROUGH PEOPLE.

STYLES BASED ON AUTHORITY RETAINED

• AUTHORISATION STYLE(LEADER CENTRED)

ADVANTAGES

NO TWO-WAY COMMUNICATION

QUICK DECISION MAKING

DISADVANTAGES

LOW EMPLOYEE MORAL

WORKERS FOLLOWING LEADER DIRECTIONS LOSE INITITATIVE AND AVOID RESPONSIBILITY FOR ANY ERRORS

SUITABILITY

WHERE SUBORDINATES LACK KNOWLEDGE AND COMPANY GOALS.

WHERE SUBORDINATES ARE INEXPERIENCED.

PARTICIPATIVE STYLE(GROUP CENTRED)

SUITABILITY:-

WHERE THE LEADER TRULY DESIRES TO HEAR THE IDEA OF HIS EMPLOYEES

WHERE THE WORKERS ARE REASONABLY KNOWLEDGABLE AND EXPERIENCED

WHERE THE COMPANY HAS COMMUNICATED ITS GOALS AND OBJECTIVES TO THE SUBORDINATES AND THE SUBORDINATES HAVE ACCEPTED THEM

RELATED TYPES

CONSULTATIVE CONSENSUAL DEMOCRATIC

ADVANTAGES

EMPLOYEES FEELINGS OF SELF WORTH AND SATISFACTION ARE INCREASED

THERE WILL BE LESS RESISTANCE TO CHANGE

IT IMPROVE THE QUALITY OF DECISIONS

IT ALLOWS EMPLOYEES TO SATISFY HIGH LEVEL NEEDS SUCH AS ESTEEM AND SELF-ACTUALISATION

DISADVANTAGES

THERE CAN ALWAYS BE A DANGER OF MISINTERPRETATION OF DECISION MAKING

SUBORDINATES MAY VIEW LEADER AS INCOMPETENT TO HANDLE DECISION

TIME CONSUMING STYLE

FREE-REIN STYLE(LAISSEZ FAIRE/INDIVIDUAL

CENTRED)

NO LEADERSHIP AT ALL

ABSENCE OF DIRECT LEADERSHIP

COMPLETE DELEGATION OF AUTHORITY INTO THE HAND OF SUBORDINATE

VERY LITTLE GUIDANCE AND SUPPORT TO FOLLOWERS

SUCH LEADERS ARE OF STYLE

MAXIMUM CONCERN FOR INDIVIDUAL WHO MAKE UP THE WORK TEAM

OPEN DECISION AND RESPECT FOR ALL VIEWS

THE MAJORITY WILL IS OPERATIVE IN DECISION MAKING

FREE-REIN STYLE WOULD BE EFFECTIVE IN CONDITION

WHERE

THE ORANIZATIONAL GOAL HAVE BEEN COMMUNICATED WELL AND ACCEPTED BY THE SUBORDINATES

THE LEADER IS INTERESTED IN DELEGATING DECISION MAKING

SUBORDINATES ARE WELL TRAINED AND HIGHLY KNOWLEDGABLE

THE LEADER HAS HIGH DEGREE OF CONFIDENCE IN THE ABILITY OF SUBORDINATES

THIS PATTERN OF LEADERSHIP SUFFERS FROM DRAWBACKS WHEN

THE MEMBERS OF THE GROUP REFUSE TO CO-OPERATE

IT IS UNWILLING OR UNABLE TO REACH DECISION

LACK OF NECESSARY COHESION DUE TO TOP LARGE GROUP TO ARRIVE AT DECISION AND THE CHAOS GENERATES

STYLE BASED ON TASK VERSUS PEOPLE EMPHASIS

A LEADER WHO PLACES GREATER EMPHASIS ON TASK PERFORMANCE TENDS TO EXHIBIT THE FOLLOWING BEHAVIOURS

ORGANISING AND DEFINING THE ROLE

EXPLAINING WHAT ACTIVITIES EACH HAS TO DO AND WHEN WHERE AND HOW TASK ARE TO BE ACCOMPLISHED

ESTABLISHING WELL CHANNEL OF COMMUNIATION

FOUR COMBINATIONS ARE POSSIBLE AS FOLLOWS

HIGH TASK AND LOW RELATIONSHIP

HIGH TASK AND HIGH RELATIONSHIP

HIGH RELATIONSHIPAND LOW TASK

LOW RELATIONSHIP AND LOW TASK

3.STYLES BASED ON ASSUMPTIONS ABOUT PEOPLE

LIKERT’S FOUR STYLES EXPLOITATIVE AUTHORITATIVE:EXPLOITATIVE AUTHORITATIVE:

LEADER USES SANCTIONSLEADER USES SANCTIONS

COMMUNICATION IS DOWNWARDCOMMUNICATION IS DOWNWARD

SUPERIORS AND SUBORDINATES ARE SUPERIORS AND SUBORDINATES ARE PSYCHOLOGICALLY DISTANTPSYCHOLOGICALLY DISTANT

DECISIONS ARE MADE AT THE TOP OF DECISIONS ARE MADE AT THE TOP OF ORGANIZATIONORGANIZATION

LIKERT’S FOUR STYLES

BENEVOLENT AUTHORITATIVE:

UPWARD COMMUNICATION IS PERMITTED TO LIMITED EXTENT

SUBSERVIENCE TO BOSS IS WIDESPREAD

SOME DELEGATION IN DECISION MAKING

LIKERT’S FOUR STYLES

CONSULTATIVE:LEADER USES REWARDS LEADER USES REWARDS

COMMUNICATION IS TWO-WAY ALTHOUGH COMMUNICATION IS TWO-WAY ALTHOUGH UPWARDSUPWARDS

SOME INVOLVEMENT IS SOUGHT FROM EMPLOYEESSOME INVOLVEMENT IS SOUGHT FROM EMPLOYEES

SUBORDINATES ARE INVOLVED IN DECISION MAKINGSUBORDINATES ARE INVOLVED IN DECISION MAKING IN LIMITED WAYIN LIMITED WAY

LIKERT’S FOUR STYLES PARTICIPATIVE:

LEADER DISPERSE ECONOMIC REWARDS

MAKE FULL USE OF GROUP PARTICIPATION AND INVOLVEMENT

SUBORDINATES AND SUPERIORS ARE PSYCHOLOGICALLY CLOSE

GROUP DECISION MAKING IS WIDESPREAD

ENTREPRENEURSHIP STYLE

IMPATIENCE TOWARDS EMPLOYEES

A HEAVY TASK ORIENTATION WITH A VERY DIRECT-APPROACH

A CHARISHMATIC PERSONALITY

A MUCH STRONGER INTEREST IN DEALING WITH CUSTOMERS

ANXIETY TO CONSOLIDATE BUSINESS GAINS

CONCLUSION

THE MODEL OF LEADERSHIP STYLES CAN BE USED TO INCREASE

THE EFFECTIVENESS OF A LEADER.

NO STYLE IS PERFECT

DIFFERENT STYLES SUIT FOR DIFFERENT SITUATIONS.

COMBINATION OF LEADER ,FOLLOWER AND SITUATUON

DEFINE A PARTICULAR STYLE.

Sources of PowerSources of PowerRewardRewardPowerPower

RewardRewardPowerPower

LegitimateLegitimatePowerPower

LegitimateLegitimatePowerPower

CoerciveCoercivePowerPower

CoerciveCoercivePowerPower

ExpertExpertPowerPower

ExpertExpertPowerPower ReferentReferent

PowerPower

ReferentReferentPowerPower

Enable managers to beEnable managers to beleaders & influenceleaders & influence

subordinates to subordinates to achieve goalsachieve goals

Enable managers to beEnable managers to beleaders & influenceleaders & influence

subordinates to subordinates to achieve goalsachieve goals

Sources of PowerSources of Power• Used to affect other’s behavior and get them to

act in given ways.– Legitimate Power: manager’s authority resulting by

their management position in the firm.• Can be power to hire/fire workers, assign work.

– Reward Power: based on the manager’s ability to give or withhold rewards.

• Pay raises, bonuses, verbal praise.• Effective managers use reward power to signal employees

they are doing a good job.

Sources of PowerSources of Power– Coercive Power: based in ability to punish others.

• Ranges from verbal reprimand to pay cuts to firing.• Can have serious negative side effects.

– Expert Power: based on special skills of leader.• First & middle managers have most expert power.• Often found in technical ability.

– Referent Power: results from personal characteristics of the leader which earn worker’s respect, loyalty and admiration.

• Usually held by likable managers who are concerned about their workers.

EmpowermentEmpowerment• Process of giving workers at all levels

authority to make decisions and the responsibility for their outcomes. Empowerment helps managers:

Get workers involved in the decisions.– Increase worker commitment and motivation.

– To focus on other issues.

• Effective managers usually empower substantial authority to workers.

Leadership ModelsLeadership Models– Trait Model: sought to identify personal characteristics responsible for effective leadership.

Research shows that traits do appear to be connected to effective leadership.

–Many “traits” are the result of skills and knowledge.–Not all effective leaders possess all these traits.

– Behavioral Model: Identifies types of behavior.Consideration: leaders show care toward workers.

–Employee-centered.

Initiating Structure: managers take steps to make sure work is done.

–Done by assigning work, setting goals, etc.–Job-oriented.

ConsiderationConsideration Initiating StructureInitiating Structure

Consideration & Initiating StructureConsideration & Initiating Structure

Is friendly, approachable

Do little things to make it funto be a member of group

Give advance notice of changes

Willing to make changes

Treats group members as equals

Is friendly, approachable

Do little things to make it funto be a member of group

Give advance notice of changes

Willing to make changes

Treats group members as equals

Tries out ideas in the group

Lets group members know what is expected

Assigns workers to tasks

Schedules work to be done

Maintains standardsof performance

Tries out ideas in the group

Lets group members know what is expected

Assigns workers to tasks

Schedules work to be done

Maintains standardsof performance

Rate manager from 1 (never does) to 5 (always does)

Contingency Models Contingency Models

Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation. – Leader style: the enduring, characteristic approach

to leadership a manager uses.• Relationship-oriented: concerned with developing good

relations with workers.• Task-oriented: concerned that workers perform so the job

gets done.

Fiedler’s Model Fiedler’s Model – Situation characteristic: how favorable a given

situation is for leading to occur.• Leader-member relations: determines how much workers

like and trust their leader.• Task structure: extent to which workers tasks are clear-

cut. – Clear issues make a situation favorable for leadership.

• Position Power: amount of legitimate, reward, & coercive power a leader has due to their position.

– When positional power is strong, leadership opportunity becomes more favorable.

Fiedler’s Contingency ModelFiedler’s Contingency Model

GOOD POORGOOD POOR

HIGH LO W HIGH LOW HIGH LO W HIGH LOW

SS WW SS WW SS WW SS WW

Leader-MemberRelations

TaskStructure

PositionPower

Kinds ofLeadershipSituations

VeryFavorable

VeryUnfavorable

I II III IV V VI VII VIII1

Relationship-oriented managers most effective in IV, V, VI, VII.Task-oriented managers most effective in I, II, III or VIII.

Using Fiedler’s ModelUsing Fiedler’s ModelCan combine leader-member relations, task structure,

and position power to identify leadership situations. • Identifies situations where given types of managers might

perform best.• Seen in Figure 13.4.

– Leader style is a characteristic managers cannot change. Thus, managers will be most effective when:

1) They are placed in leadership situations that suit their style.

2) The situation can be changed to fit the manager.

House’s Path-Goal ModelHouse’s Path-Goal Model– Model suggests that effective leaders motivate

workers to achieve by:1) Clearly identifying the outcomes workers are trying to

achieve.

2) Reward workers for high-performance and attainment.

3) Clarifying the paths to the attainment of the goals.• Path-Goal is a contingency model since it proposes the

steps managers should take to motivate their workers.– Based on Expectancy Theory.

Steps to Path-GoalSteps to Path-Goal

1) Determine the outcomes your subordinates are trying to obtain.

• Can range from pay to job security or interesting work.– Once outcomes determined, manager needs to be sure they have

the reward power to provide these.

2) Reward subordinates for high-performance and goal attainment with the desired outcomes.

3) Clarify the paths to goal attainment for workers, remove obstacles to performance, and express confidence in worker’s ability.

Motivating with Path-goalMotivating with Path-goal– Path-goal identifies four behaviors leaders can use:

1) Directive behaviors: set goals, assign tasks, show how to do things.

2) Supportive behavior: look out for the worker’s best interest.

3) Participative behavior: give subordinates a say in matters that affect them.

4) Achievement-oriented behavior: Setting very challenging goals, believing in worker’s abilities.

– Which behavior should be used depends on the worker and the tasks.

Leader-Substitute ModelLeader-Substitute Model– Leadership substitute: acts in the place of a leader

and makes leadership unnecessary. Possible substitutes can be found:

• Characteristics of Subordinates: their skills, experience, motivation.

• Characteristics of context: the extent to which work is interesting and fun.

• Worker empowerment or Self-managed work teams reduce leadership needs.

– Managers need to be aware that they do not always need to directly exert influence over workers.

Transformational LeadershipTransformational Leadership– Started with von Pierer, CEO of Siemens, and

allows dramatic improvements in management effectiveness.

– Transformational managers:• Make subordinates aware of how important their jobs

are by providing feedback to the worker.• Make subordinates aware of their own need for personal

growth and development.– Empowerment of workers, added training help.

• Motivate workers to work for the good of the organization, not just themselves.

Transformational LeadersTransformational Leaders– Transformational leaders are charismatic and have a

vision of how good things can be.• They are excited and clearly communicate this to

subordinates.– Transformational leaders openly share information

with workers. • Everyone is aware of problems and the need for change. • Empowers workers to help with solutions.

– Transformational leaders engage in development of workers.

• Manager works hard to help them build skills.

Transactional LeadershipTransactional Leadership• Involves managers using the reward and

coercive power to encourage high performance.

• Managers who push subordinates to change but do not seem to change themselves are transactional.

• The transactional manager does not have the “vision” of the Transformational leader.

Gender and LeadershipGender and Leadership

• The number of women managers is rising but still relatively low in top levels.

• Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused.– Research indicates that actually there is no gender-

based difference in leadership effectiveness.– However, women are seen to be more participative

than men.