Name of Presentation

Leadership StoryA 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.

Leadership StoryAnd shouts down to the assembled group belowWrong Way!

(Story adapted from Stephen Covey (2004) The Seven Habits of Highly Effective People Simon & Schuster).

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

DefinitionThe ability to positively influence people and systems to have a meaningful impact and achieve results.

Leading PeopleInfluencing PeopleCommanding PeopleGuiding People088840486524Characteristics of LeadershipLeader must have followersIt is working relationship between leader and followersPurpose is to achieve some common goal or goalsA leader influences his followers willingly not by forceLeadership is exercised in a given situationLeadership is a power relationshipIt is a continuous processA QuestionA leader need not be a manager but a manager must have many of the qualities of a good leader?????

Managerial LeadershipSignificanceSetting GoalsMotivating EmployeesBuilding moraleCreating ConfidenceDisciplineDeveloping Team-workFacilitates ChangeRepresenting the groupLeadership Styles Leader by the position achieved Leader by personality, charisma Leader by moral example Leader by power held Intellectual leader Leader because of ability to accomplish things

Leadership ManagementWorking in the systemReactControl risksEnforce organizational rulesSeek and then follow direction

Control people by pushing them in the right directionCoordinate effortProvide instructionsWorking on the systemCreate opportunitiesSeek opportunitiesChange organizational rulesProvide a vision to believe in and strategic alignmentMotivate people by satisfying basic human needsInspire achievement and energize peopleCoach followers, create self-leaders and empower themAgenda

Network Development for Agenda Achievement

Execution

OutcomesLeadership ManagementEstablishing DirectionDevelop future visionDevelop change strategies to achieve vision

Aligning PeopleCommunicate directly by words & deeds to those whose cooperation neededInfluence creation of coalition/teams that understand & accept vision and strategies

Motivating/inspiringEnergy to overcome barriers (ex. Political resource, bureaucratic) to change by satisfying basic needs

Tends to ProduceChange often dramaticProvides potential for very useful change (ex. New products)

Planning/BudgetingDevelop detailed steps/ timetables for resultsAllocate necessary resources

Organizing/StaffingDevelop necessary planning, staffing, delegation structuresProvide policies/procedures for guidance and methods/systems for monitoring

Control/Problem SolvingMonitor results vs. plan in detailIdentify results/plan deviations and plan and organize to correct

Tends to ProduceOrder/predictabilityKey results expected by stakeholdersThe manager administers; the leader innovates.

The manager maintains; the leader develops.

The manager accepts reality; the leader investigates it.

The manager focuses on systems and structures; the leader focuses on people.

The manager relies on control; the leader inspires trust.

The manager has a short-range view; the leader has a long-range perspective.

The manager asks how and when; the leader asks what and why.

The manager has his or her eye always on the bottom line; the leader has his or her eye on the horizon.

The manager imitates; the leader originates. The manager accepts the status quo; the leader challenges it.

The manager is the classic good soldier; the leader is his or her own person.

Leadership TraitsIntelligenceMore intelligent than non-leadersScholarshipKnowledgeBeing able to get things donePhysicalDoesnt seem to be correlatedPersonality Verbal facility Honesty InitiativeAggressiveSelf-confidentAmbitiousOriginalitySociabilityAdaptability Leadership stylesAutocratic:

Leader makes decisions without reference to anyone else High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively

Democratic:Encourages decision making from different perspectives leadership may be emphasised throughout the organisation

Consultative: process of consultation before decisions are takenPersuasive: Leader takes decision and seeks to persuade others that the decision is correct

Laissez-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

Paternalistic:

Leader acts as a father figure Paternalistic leader makes decision but may consult Believes in the need to support staff

Leadership TheoriesTrait TheoryEarly on, it was thought that leaders were born withinherent physiological and personality traitsAgeHeightIntelligenceAcademic achievements

Stogdill (1974) identified several general factors that differentiate leaders from non-leaders

Capacity: problem-solving capabilities, making judgments and working hard

Achievements: accomplishments such as academic record, knowledge and sports

Responsibility: dependability, reliability, self-drive, perseverance, aggressiveness and self-confidence

Participation and involvement: highly developed social interaction, popularity, swift adaptation to changing situations, and easier cooperation compared to non-leaders

Socio-economic status: effective leaders usually belong to higher socio-economic classesLeadership TheoriesTrait Theory (continued)Leadership TheoriesBehavioral TheoriesOhio State studies focused on task and social behavior of leadersIdentified two dimensions of leader behavior

Initiating Structure: role of leader in defining his/her role and roles of group membersConsideration: leaders mutual trust and respect for group members ideas and feelings

Two different behavioral theories:Role TheoryManagerial Grid

Leadership TheoriesRole TheoryAssumptions about leaders in organizations are shaped by culture, training sessions, modeling by senior managers, etc.

People define roles for themselves and others based on social learning and reading.People form expectations about the roles that they and others will play.People subtly encourage others to act within the role expectations they have for them.People will act within the roles they adopt.Leadership TheoriesManagerial GridDeveloped by Drs. Robert R. Blake and Jane S. MoutonBelieved managers have different leadership styles which led to two different dimensions of leadership:Concern for Production: manager who is task-oriented and focuses on getting results or accomplishing the mission (X-axis of grid)Concern for People: manager who avoids conflicts and strives for friendly relations with subordinates (Y-axis of grid)Leadership TheoriesManagerial Grid (continued)

9876543211 2 3 4 5 6 7 8 9 **managers goal is 9,9**Leadership TheoriesParticipative TheoriesAssumes the followingInvolvement in decision-making improves the understanding of the issues involved and the commitment of those who must carry out the decisions.People are less competitive and more collaborative when they are working on joint goals.Several people deciding together make better decisions than one person alone.

Two different participative theories:Lewins leadership stylesLikerts leadership stylesLeadership TheoriesLewins Leadership stylesKurt Lewins studies at the University of Iowa (1939)Identified three different styles of leadership:Autocratic: centralized authority, low participation (works where input would not change decision or employee motivation, excessive styles lead to revolution)Democratic: involvement, feedback (appreciated by people, most effective style but problematic when there are a range of opinions)Laissez-Faire: hands-off management(works when people are motivated and there is no requirement for central coordination)Likerts system of LeadershipRensis Likert and his associates studied the patterns and styles of managers for three decades at the University of Michigan, USA, and identified a four-fold model of management systems.

The model was developed on the basis of a questionnaire administered to managers in over 200 organizations and research into the performance characteristics of different types of organizations. The four systems of management system or the four leadership styles identified by Likert are:System 1 - Exploitative Authoritative:Responsibility lies in the hands of the people at the upper echelons of the hierarchy. The superior has no trust and confidence in subordinates. The decisions are imposed on subordinates and they do not feel free at all to discuss things about the job with their superior. The teamwork or communication is very little and the motivation is based on threats.System 2 - Benevolent Authoritative:The responsibility lies at the managerial levels but not at the lower levels of the organizational hierarchy. The superior has condescending confidence and trust in subordinates (master-servant relationship). Here again, the subordinates do not feel free to discuss things about the job with their superior. The teamwork or communication is very little and motivation is based on a system of rewards.System 3 - Consultative:Responsibility is spread widely through the organizational hierarchy. The superior has substantial but not complete confidence in subordinates. Some amount of discussion about job related things takes place between the superior and subordinates. There is a fair amount of teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job.System 4 - Participative:Responsibility for achieving the organizational goals is widespread throughout the organizational hierarchy. There is a high level of confidence that the superior has in his subordinates. There is a high level of teamwork, communication, and participation.

Conclusion

According to Rensis Likert, the nearer the behavioral characteristics of an organization approach System 4 (Participative), the more likely this will lead to long-term improvement in staff turnover and high productivity, low scrap, low costs, and high earnings, if an organization wants to achieve optimum effectiveness, then this is the ideal system

Leadership ContinuumA simple model which shows the relationship between the level of freedom that a manager chooses to give to a team, and the level of authority used by the manager. As the team's freedom is increased, so the manager's authority decreases. This is a positive way for both teams and managers to develop.

Michigan StudiesStudies conducted by Michigan University beginning in the 1950sFound 3 critical characteristics of effective leaders:Task-oriented behavior Effective Leaders didnt do the same work as their subordinates.Relationship-oriented behavior Focus on task, but also on relationship with subordinatesParticipative leadershipUse a participative style, managing at the group level as well as individually The role of the manager is more facilitative than directive

Leadership Theories30Task-oriented behaviorEffective managers studied did not do the same kind work as their subordinates. Their tasks were different, and included planning and scheduling work, coordinating activities and providing necessary resources.They also spent time guiding subordinates in setting task goals that were both challenging and achievable. Relationship-oriented behaviorEffective managers not only concentrated on the task, but also on their relationship with their subordinates. They were more considerate, helpful and supportive of subordinates, including helping them with their career and personal problems. They recognized effort with intrinsic as well as extrinsic reward, thanking people for effort.Overall, the effective preferred a general and hands-off form of supervision rather than close control. They set goals and provided guidelines, but then gave their subordinates plenty of leeway as to how the goals would be achieved.Participative leadershipEffective leaders use a participative style, managing at the group level as well as individually, for example using team meetings to share ideas and involve the team in group decisions and problem-solving. By their actions, such leaders model good team-oriented behavior.The role of the manager is more facilitative than directive, guiding the conversation and helping to resolve differences. The manager, however, is responsible for results and is not absolved of responsibility. As such, they may make final decisions that take recommendations from the team into account.The effect of participative leadership is to build a cohesive team which works together rather than a set of individuals.Although an early study, this is still often referenced. It is notable that the two factors correlate with the people-task division that appears in other studies and also as preferences (although the preference scale generally assumes an either-or structure rather than two independent scales).The Michigan studies were conducted around the same time as the Ohio State Leadership Studies, which also identified the focus on task ('Initiating Structure') and people ('Consideration'). The Michigan studies added 'Participative leadership' to the Ohio findings, moving the debate further into the question of leading teams rather than just individuals.Contingency TheoryAssumptions:No one best way of leadingAbility to lead contingent upon various situational factors:Leaders preferred styleCapabilities and behaviors of followersVarious other situational factorsEffect:Leaders who are successful in one situation may become unsuccessful if the factors around them change

Leadership Theories31Contingency theories are a class of behavioral theory that contend that there is no one best way of leading and that a leadership style that is effective in some situations may not be successful in others.An effect of this is that leaders who are very effective at one place and time may become unsuccessful either when transplanted to another situation or when the factors around them change.This helps to explain how some leaders who seem for a while to have the 'Midas touch' suddenly appear to go off the boil and make very unsuccessful decisions.

Contingency theory is similar to situational theory in that there is an assumption of no simple one right way. The main difference is that situational theory tends to focus more on the behaviors that the leader should adopt, given situational factors (often about follower behavior), whereas contingency theory takes a broader view that includes contingent factors about leader capability and other variables within the situation.Contingency Theory: Fiedlers Least Preferred Co-Worker (LPC) TheoryAssumptions:Leaders prioritize between task-focus and people-focusLeaders dont readily change their styleKey situational factor in matching leader to situation:RelationshipsPower Task structureLPC QuestionnaireDetermines leadership style by measuring responses to 18 pairs of contrasting adjectives.High score: a relationship-oriented leadership styleLow score: a task-oriented leadership style

Tries to identify the underlying beliefs about people, in particular whether the leader sees others as positive (high LPC) or negative (low LPC).

Leadership Theories32Fiedler identified the a Least Preferred Co-Worker scoring for leaders by asking them first to think of a person with which they worked that they would like least to work with again, and then to score the person on a range of scales between positive factors (friendly, helpful, cheerful, etc.) and negative factors (unfriendly, unhelpful, gloomy, etc.). A high LPC leader generally scores the other person as positive and a low LPC leader scores them as negative.High LPC leaders tend to have close and positive relationships and act in a supportive way, even prioritizing the relationship before the task. Low LPC leaders put the task first and will turn to relationships only when they are satisfied with how the work is going.

Three factors are then identified about the leader, member and the task, as follows:Leader-Member Relations: The extent to which the leader has the support and loyalties of followers and relations with them are friendly and cooperative. Task structure: The extent to which tasks are standardised, documented and controlled. Leader's Position-power: The extent to which the leader has authority to assess follower performance and give reward or punishment.

Exhibit 17.4Findings of the Fiedler Model

Leadership Theories33Situational LeadershipSituational factors (motivation, capability of followers, relationship between followers and leader) determine the best action of leaderLeader must be flexible to diagnosis leadership style appropriate for situation and be able to apply styleNo one best leadership style for all situations

Leadership TheoriesHersey & Blanchards Situational Leadership (1977)

Identified 4 different leadership styles based on readiness of followersR1. Telling (high task/low relationship behavior)Giving considerable attention to defining roles and goalsRecommended for new staff, repetitive work, work needed in a short time spanUsed when people are unable and unwillingR2. Selling (high task/high relationship behavior)Most direction given by leader encouraging people to buy into taskUsed when people are willing but unableR3. Participating (high relationship/low task behavior)Decision making shared between leaders and followers, role of leader to facilitate and communicateUsed when people are able but unwillingR4. Delegating (low relationship/low task behavior)Leader identifies problem but followers are responsible for carrying out responseUsed if people are able and willingLeadership Theories

Source: Reprinted with permission from the Center for Leadership Studies. Situational Leadership is a registered trademark of the Center for Leadership Studies. Escondido, California. All rights reserved.Leadership TheoriesHersey & Blanchards ModelSummary of Leadership TheoriesTheoryLeadership Based OnTrait TheoryLeaders born with leadership traitsBehavioral TheoryInitial structure and consideration - Role TheoryShaped by culture, training, modeling - Managerial GridConcern for production and concern for peopleParticipative LeadershipMore people involved = better collaboration - Lewins StyleAutocratic, democratic, laissez-faire - Likerts StyleTask oriented, relationship oriented, participative styleContingency TheoriesNo one best leadership style - Fiedlers LPC TheoryTask focus v. relationship focus - Cognitive Resource TheoryIntelligence and experience make a difference - Houses Path Goal TheoryHelp followers make their goals compatible with organizational goalsSituational LeadershipSimilar to contingency theory - Hersey and BlanchardBased on relationship between leader and follower and task behavior - Vroom & YettonDecision quality and decision acceptanceTransactional Vs. TransformationalLeadershipBasis of DistinctionTransactionalTransformationalBasisBased on exchange relationship between leader and followers.Based on leaders values, beliefs and needs of followersMethod of inspirationRewards and recognition for good performanceLeaders charisma, vision and energyOrientationTask OrientaionGoal OrienatationApproachPassive and stableActive and dynamicMain functions of leaderDetermination of objectives, clarifying tasks, helping subordinates in achieving objectivesProviding vision and sense of mission, instilling pride, gaining respect and trust, inspiring people, giving personal attention.Queries????