Leadership and Decision MakingDaisy Chauhan

Manager and LeaderAdministersMaintainsFocuses on systems & structureRelies on controlShort-range viewEye on the bottom lineImitatesAccepts status quoSurrenders to external forces

Does things rightlyInnovatesDevelopsFocuses on peopleInspires trustLong-range viewEye on the horizonOriginatesChallenges the status quoConquers over volatile, turbulent and ambiguous surroundingsDoes the right things

What Differentiates a LeaderA Leader sees:MoreFarther andBeforeOthers.It is not the position that makes a leaderIt is the leader that makes a position.In the case of a manager things happen when he is there;In the case of a Leader, things happen even when he is not there.

Ten Leadership CompetenciesPassionVisionSelf DisciplineInitiativeCourageIntegrity and TrustRisk Taking CapacityBuilding a TeamCreativityCompetence

Theories of Leadership

Trait TheoriesBehavioral TheoriesContingency Theories

Trait TheoriesTrait theories differentiate leaders from non-leaders by focusing on personal qualities and characteristicsSome common traits of leaders:Ambition and energyDesire to leadHonesty and integritySelf ConfidenceIntelligenceHigh self-monitoringJob relevant knowledge

Trait Theories

Extroversion is the most important trait of effective leadersExtroversion more strongly related to leader emergence than to leader effectiveness

Behavioural TheoriesOhio State Studies:Two dimensions relating to behaviour:Initiating structure : Extent to which a leader is likely to define and structure his/her role and those of employees for the attainment of goalsConsideration: The extent to which a leader is likely to have job relationships characterised by mutual trust, respect for employees ideas and regard for their feelingsHas concern for employees comfort, wellbeing, status and satisfaction

Behavioural TheoriesMichigan Studies:People Oriented Leader: emphasise interpersonal relations, take personal interest in the needs of the employeesProduction Oriented Leader: emphasise the technical and task aspects of the job. Their concern is accomplishing tasks and employees are only a means to that end.

Behavioural TheoriesThe Managerial Grid (Blake and Mouton):Nine possible positions (styles) along each axis on people orientation and production orientation.Managers are found to perform best under 9,9 style (High on people and production orientation)

Leader-Member Exchange TheoryDue to time constraint leaders establish a special relationship with a small group of their followers.These individuals make the in-groupLeader chooses those members who have similar attitude and personality characteristics as theirsThey are trusted, get disproportionate amount of leaders attention and special privilegesOther followers fall into the out-groupIn-group persons get higher performance ratings and have higher satisfaction than the out-group members

Favourable Unfavourable ModerateGoodPoorTask oriented: Relationship Oriented:

Cate-goryIIIIIIIVVVIVIIVIIIL-M Rela-tionsGoodGoodGoodGoodPoorPoorPoorPoorTask Stru-ctureHighHighLowLowHighHighLowLowPosi-tion PowerStrongWeakStrongWeakStrongWeakStrongWeak

MATCHING LEADERS AND SITUATIONSWhen faced with situations I, II, III, VII and VIII Task Oriented leaders perform better.

In situations IV, V, and VI Relationship Oriented leaders perform better.

Contingency TheoriesContingency theories of leadership emerged because the earlier theories failed to provide consistent results. The focus therefore shifted to situational influences.

Fiedler Contingency Model:Proposes that effective group performance depends on the proper match between the leaders style and the degree to which the situation gives control to the leader.

Contingency TheoriesLeast Preferred Coworker (LPC)A high LPC score on 16 dimensions (pleasant-unpleasant) is indicative of relationship orientation and a low LPC score is indicative of task orientation basic leadership styleLeadership effectiveness depends on a match between the style and three situational factors:Leader-member relations: The degree to which members have confidence, trust and respect in their leadersTask Structure: The degree to which job assignments are procedurised (structured/unstructured)Position Power: The degree of influence a leader has over matters relating to hiring, firing, discipline, promotions and salary increases.

COGNITIVE RESOURCE THEORYStress unfavorably affects a situation Intelligence and experience can lessen the influence of stress on the leader

HERSEY AND BLANHARDS SITUAITONAL THEORYSituational leadership is a contingency theory where the focus is on the readiness of the followersThe extent to which people have the ability and willingness to accomplish a taskUnable and unwilling - Clear and specific directionsUnable and willing- task orientation Able and unwilling - Supportive and participativeAble and willing- Leaders role minimal

Situational LeadershipR4R3R2R1Turn over responsibility for decisions and executingFind out why the reluctance. Share ideas and help in decision makingExplain your decisions and provide opportunity for clarificationProvide specific instructions and closely supervise performanceAble and willing

Able but unwilling

Unable but willingUnable and unwilling Follower Directed Leader Directed How to do itFollower Readiness: Competence & Motivation Leader BehaviorS4S3S2S1DelegatingObservingFulfillingUnderstanding EncouragingCollaboratingTrainingExplainingMonitoringTellingGuidingDirecting

Situational Leadership - Need based

S3: Participating/EncouragingS4: Delegating/MonitoringS2:Selling/ExplainingS1: Telling/DirectingTask BehaviourRELATIONSHI P

BEHAVIUOR

High Relationship/ Low Task

High on Relationship/High on Task

Low Relationship/Low Task

Low Relationship/ High Task

Leadership and Decision MakingCriteria for Decision Making:

Rationality Acceptance

Rational Emotive Therapy is the method of decision making where both the above criteria are taken care of.

Neither being too rational nor too emotional.

A balance between rationality and acceptance or using emotions/feelings for making intelligent decisions.

Criteria for Decision MakingQUALITY1. Information:RelevantSufficientComplete2. Complexity3. Goal Congruity ACCEPTANCE

1. Conflict Rule2. Fairness Rule3. Acceptance PriorityTIME AVAILABILITY

Leadership and Decision MakingDecision Styles:AI : Autocratic. No information sharing, No search for information, managing with available info. You take your own decision.

AII: Autocratic but may seek some information, speak to a few people. True facts not shared.

CI: Consultative approach. Problem sharing with relevant individuals (subordinates) on a one to one basis. Then you take a decision which may or may not reflect your subordinates views.

CII: Consultative approach. Problem sharing with your subordinates in a group collectively obtaining their ideas and suggestions. Then you take the decision which may or may not reflect their views.

GII: Consensus Group Decision-making. You share your problems with you subordinates in a group. Together you generate and evaluate alternatives and attempt to reach a consensus. You do not try to influence the group to adopt your solution and you are willing to accept and implement any solution that has the support of the entire group.