MANAGERS AS LEADERS

(Chapter 16)

What is Leadership? Leadership is a process of influencing a group to achieve goals. It is the ability to influence a group toward the achievement of goals. Leader is a person who can influence others and who has managerial authority. A person may assume a leadership role simply because of his/her position or he/ she can emerge from within a group. Leadership is about coping with change. A Leader must challenge the status quo, create vision of the future, align people by communicating this vision and then inspire them to overcome hurdles & achieve the target. People who are high self-monitors are much more likely to emerge as leaders in groups than low self-monitors. Neither all leaders are managers, nor all managers are leaders.

Leadership Theories Early theories of leadership Trait Theories Behavioral Theories Contingency theories of leadership Situation leadership theory Goal setting theory Neo-charismatic theories of leadership Charismatic leadership Transformational-Transactional leadership Visionary leadership

Trait TheoriesThe cumulative findings from a half of a century of research show that some traits increase the likelihood of success as a leader, but none guarantee success. Trait theories advocate that leaders are born, not made.

Trait Theories

Proponents of trait theories of leadership identify leaders by focusing on personal qualities and characteristics such as charismatic, enthusiastic, and courageous. A search to identify traits that were consistently associated with leadership has better results.Six traits on which leaders tend to differ from non-leaders are:

Ambition and energy Desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge.

Behavioral Theories Behavioral theories identify behaviors that differentiate effective leaders from ineffective leaders. Important behavioral theories are, University of Lowa studies, Ohio State Studies, University of Michigan Studies.Behavioral theories advocate that leadership can be taught & that leaders are not born.

University of Lowa StudiesThese studies explored three leadership styles to find which is the most effective:

Autocratic style described a leader who dictated work methods, made unilateral decisions, & limited employee participation.

Democratic style described a leader who involved employees in decision-making, delegated authority and used feedback as an opportunity for coaching employees.

Laisses-faire style described a leader who lets the group to make decisions and complete work in whatever way it considers fit.

Ohio State StudiesResearch at Ohio State University (in the late 1940s) sought to identify independent dimensions of leader behavior. Researchers down narrowed over a thousand dimensions into two dimensions - initiating structure and consideration.1. Initiating structure: It refers to the extent to which a leader is likely to define & structure his/her role and those of employees in the search for goal attainment. It also includes attempts to organize work, work relationships, and goals.

The leader high in initiating structure could be described as someone who assigns group members to particular tasks, expects workers to maintain definite standards of performance, and emphasizes the meeting of deadlines.

Ohio State Studies (contd)Consideration:Consideration is described as the extent to which a person is likely to have job relationships that are characterized by mutual trust, respect for employees ideas, and regard for their feelings.

The leader shows concern for followers comfort, well-being, status, and satisfaction.

A leader high in consideration could be described as one who helps employees with personal problems, is friendly and approachable, and treats all employees as equals.

University of Michigan StudiesResearchers at this university discovered two dimensions of leadership behavior- employee-oriented and production-oriented.

Employee-oriented leaders emphasize on interpersonal relations. They took a personal interest in the needs of their employees and accepted individual differences among members. Employee-oriented leaders were associated with higher group productivity and higher job satisfaction. Production-oriented leaders tend to emphasize on the technical or task aspects of the job- group members are a means to that end. They tend to be associated with low group productivity and lower job satisfaction.

Contingency TheoriesContingency theories have proposed two moderating variables, i.e. degree of structure and leader-member relationship, which affect leadership effectiveness. Following are the five Contingency theories:

Situational leadership theory Path-Goal theory

Hersey and Blanchards Situational Leadership TheorySituational Leadership Theory (SLT). A contingency theory that focuses on followers readiness. Successful leadership is achieved by selecting the right Behavior/style, which is contingent on the level of the followers readiness. The term readiness refers to the extent to which people have the ability and willingness to accomplish a specific task. The emphasis on the followers in leadership effectiveness reflects the reality that it is the followers who accept or reject the leader. SLT views the leader-follower relationship as analogous to that between a parent and child. Just as a parent needs to relinquish control as a child becomes more mature and responsible, so too should leaders.

Hersey and Blanchards Situational Leadership Theory Specific BehaviorsAccording to SLT theory, role & relationship dimensions have been combined with following specific behaviors:

Telling (high task low relationship). The leader defines roles and tells people what, how, when, and where to do various tasks. It emphasizes directive behavior. Selling (high task high relationship). The leader provides both directive behavior and supportive behavior. Participating (low task high relationship). The leader and follower share in decision making, with the main role of the leader being facilitating and communicating. Delegating (low task low relationship). The leader provides little direction or support.

Hersey and Blanchards Situational Leadership Theory Followers ReadinessThe final component of this theory refers to four stages of followers readiness: Stage-R1. People are neither competent nor confident (both unable and either unwilling or too insecure to take responsibility). Stage-R2. People are unable but willing to do the necessary job task. They are motivated but lack appropriate skills.Stage-R3. People are able but unwilling or too apprehensive to do what leader wants. Stage-R4. People are both able and willing to do what is asked of them.

Path - Goal Theory (by Robert House) It is the leaders job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the firm.

The term path-goal is derived from the belief that effective leaders clarify the path to help their followers achieve their work goals.It is one of the most respected approaches to leadership.

The Path-Goal Theory (contd)House identified four leadership behaviors:

The directive leader lets followers know what is expected of them, etc.

The supportive leader is friendly and shows concern for the needs of followers.

The participative leader consults with followers and uses their suggestions before making a decision.

The achievement-oriented leader sets challenging goals and expects followers to perform at their highest level.

CONTEMPORARYVIEWS ON LEADERSHIP

Charismatic LeadershipAccording to this theory, followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors. The five best documented characteristics of such leaders are:

They have a vision. They are willing to take risks to achieve that vision. They are sensitive to both environmental constraints and follower needs. They exhibit behaviors that are out of the ordinarythat differentiate charismatic leaders from non-charismatic ones.

Charismatic Leadership (contd)Charismatic leaders actually influence followers through a four-step process:

1. The leader first articulates an appealing vision. This vision provides a sense of continuity for followers by linking the present with a better future for the organization. 2. The leader then communicates high performance expectations and expresses confidence that followers can attain.3. The leader conveys, through words and actions, a new set of values and, by his or her behavior, sets an example for followers to imitate/replicate. 4. Finally, the charismatic leader makes self-sacrifices and engages in unconventional behavior to demonstrate courage and convictions about the vision.

Transformational Vs Transactional LeadershipTransformational Leaders. Leaders who provide individualized consideration and intellectual stimulation, and who possess charisma. They inspire followers to transcend their own self-interests for the good of the organization. They change followers awareness of issues by helping them to look at old problems in new ways; and they are able to excite, arouse, and inspire followers to put out extra efforts to achieve group goals. Evidence indicates that transformational leadership is more strongly correlated with lower turnover rates, higher productivity, and higher employee satisfaction.

Transactional leaders. Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. The transactional leader works through creating clear structures whereby it is clear what is required of their subordinates, and the rewards that they get for following orders. Punishments are not always mentioned, but they are also well-understood and formal systems of discipline are usually in place. When the transactional leader allocates work to subordinates, they are considered to be fully responsible for it, whether or not they have the resources or capability to carry it out.Transformational Vs Transactional Leadership

Visionary Leadership Visionary leaders: Leaders who have the ability to create and articulate a realistic, credible, attractive vision of the future for an organization or organizational unit that grows out of and improves upon the present.

This vision is so energizing that it in effect jump-starts the future by calling forth the skills, talents, and resources to make it happen.

A vision has clear and compelling imagery that offers an innovative way to improve. Vision taps peoples emotions and energy. A vision creates the enthusiasm that people have for sporting events and other leisure-time activities, bringing this energy and commitment to the workplace.

Visionary Leadership (contd) Qualities/ Properties of a Vision:

The key properties of a vision seem to be inspirational possibilities that are value centered, realizable, with superior imagery and articulation.

Desirable visions fit the times and circumstances and reflect the uniqueness of the organization.

People in the organization must also believe that the vision is attainable. It should be perceived as challenging yet doable.

Visions that have clear articulation and powerful imagery are more easily grasped and accepted.

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