Management and Operations leadership - BMSbms.lk/download/HND/Semester 2/Mo/Manil/week 3/HND -...
Transcript of Management and Operations leadership - BMSbms.lk/download/HND/Semester 2/Mo/Manil/week 3/HND -...
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Management and OperationsleadershipDr Manil de Mel
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Jeff Bezos is a pioneer in world of internet commerce, and was instrumental in defining this space that is now defining many aspects of
the internet world. It is Jeff Bezos who innovated the concept of “predictive analytics”–recommending products to customers based on
search history and buying habits. Whether you like the concept or you hate it, the idea has made online commerce more profit rich and
efficient, and is making online shopping a better experience for consumers throughout the world.
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From his upbringing in a poor family in the Bronx to an athletic scholarship and eventually the head of Starbucks Howard Schultz is a
consummate example of courage, hard work, and the ability to achieve the American dream. Even in the glow of his own successes,
Howard is also interested in investing in others’ success and continues to invest actively in other business ventures, such as eBay.
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Larry Page is another example of a businessperson who can persevere any challenge. Larry and his company have faced much criticism
and received ample praise over the years for his company’s actions. But in the midst of the storm, he has never let what others think sway
him from pursuing the course for his company that he considers the best.
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Steve Jobs is a hard act to follow, but thus far, Tim Cook is doing a tremendous job. Rather than attempt to match the consumer-facing
innovations Steve Jobs had been known for, Tim Cook is forging into the future with his own new advances, such as Apple’s
newest innovative inventory management techniques.
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Anyone who owns more than 400 companies and is worth billions of dollars is clearly doing many things right. I admire Richard Branson’s
tenacity, and I admire his personal brand—so much so, that when my paired leadership partner, Mary Michelle Scott, and I recently
travelled to Australia with several of our team in our launch of Fishbowl Australia, we made the effort and kept the commitment to fly with
Virgin Airlines every step of the way
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The nature of leadership
Leadership is the ability to influence people towards the attainment of goals.
Influence: The relationship among people is not passive. Influence is designed to achieve some end
goal.
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Key functions of a leader
Directing
Communicating
Motivating
Culture building
Innovating and transforming
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Leadership vs. Management
Management is the process of getting things done through the efforts ofother people.
Leadership is influencing other to do what he or she wants them to do; itinvolves human interaction.
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Leadership vs. ManagementManagement Leadership
Establish agenda’s Create a vision
Allocate resources Set strategies
Organizing and staffing Aligning people
Provide structure Communicate goals
Establish rules Build teams and coalitions
Controlling and problem solving Motivating and inspiring
Administers Innovates
Focuses on systems and structure Focuses on people
Accepts status quo Challenges status quo
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Major approaches to leadership
Trait approach
Behavioural approach
Contingency approach
Contemporary approach
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Leadership Trait Theories
Theory was developed based on the characteristics of many leaders, successful and unsuccessful to
determine the most effective qualities that would differentiate leaders from non leaders.
01
Core traits for successful leadership
Achievement drive : High level of ambition, energy and initiative
Leadership motivation : An intense desire to lead others to reach shared goals
Honesty and integrity : Trustworthy, reliable and open
Self confidence : Belief in one’s self and ability
Cognitive ability : Capable of exercising good judgement, strong analytical abilities and
conceptual skills
Job relevant knowledge : Knowledge pertaining to the industry, job and company
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Criticisms of trait approach
Some good leaders do not exhibit number of traits mention above
Some traits are unclear & difficult to describe
Role of leaders will be influenced by their behaviour
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Leadership Behaviour Theories02
Bill Watkins : Seagate Technology
Q : How do you handle your BOD?
A : You never ask board members what they
think. You tell them what you’re going to do.
Joe Lee : Darden Restaurants
After the September 2011, was focussed only on
two things :
1) His employees travelling
2) His company’s Muslim colleagues
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Leadership Behaviour Theories
Focus on the behaviour of leaders
Assume leaders are not born, leaders can be made
Those theories isolate behaviours that differentiate effective leaders from
ineffective leaders.
Defined two leadership behaviours:
Task-oriented behaviour
People-oriented behaviour
02
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2.1 ohio state studies
Identified two major behaviours:
Consideration – people oriented
Mindful of subordinates
Respects ideas and feelings
Establishing mutual trust
Initiating structure – task behaviour
Task oriented
Directs work activities towards goal
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2.2 Michigan studies
Compared the behaviour of effective and ineffective supervisors
Employee-centered leaders (most effective)
Establish high performance goals
Display supportive behaviour
Job-centered leaders (not effective)
Focus on meeting schedules, cost-management, and efficiency
Less concerned with goal achievement/human needs
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2.3 the leadership (managerial) grid
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Contingency approaches
A model of leadership that describes the relationship between leadership styles and specific organisational
situations.
Key Assumption - Leaders must fit to situations; options to accomplish this:
Select leader to fit situation
Change situation to fit leader
Main theories are,
Hersey and Blanchard’s Situational Theory
Fiedler’s Contingency Theory
Path-Goal Theory
Substitute for Leadership
03
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3.1 Hersey and Blanchard’s SituationalLeadership Theory
Situational Leadership Theory (SLT)
A contingency theory that focuses on followers’ readiness
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Hersey and Blanchard’s Situational Model
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Fielder’s contingency theory
Leader’s style, is task oriented or relationship oriented
Goal is to match the leader’s style with organisational situation
Analyze the leader’s style to the favourability of the situation
Leadership situations can be analyzed in terms of three elements.
Leader-member relations – refers to group atmosphere and members’ attitude towardand acceptance of the leader.
Task structure – refers to the extent to which tasks performed by the group are defined,involve specific procedures, and have clear, explicit goals.
Position power – is the extent to which the leader has formal authority over subordinates
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How Leader’s Style Fits the Situation
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Path goal theory
The theory that it is the leader’s job to assist followers
in attaining their goals and to provide them the
necessary direction and/or support to ensure that their
goals are compatible with the overall objectives of the
group or organisation.
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Path goal theory
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Substitute for leadership
Situational variables can be so powerful that they actually substitute for or
neutralize the need for leadership.
Substitute – a situational variable that makes a leadership style unnecessary
or redundant.
Neutralizer – a situational variable that counteracts a leadership style and
prevents the leader from displaying certain behaviors.
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Contemporary approaches
Leadership evolves as the needs of the organisation change
Leadership has evolved with technology, economic, labour, social, and cultural changes
Responding to the turbulence and uncertainty of the environment new theories ofleadership are developed
Four approaches for today’s turbulent times:
Level 5 Leadership
Servant Leadership
Authentic Leadership
Interactive Leadership (gender differences)
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Level five leadership
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Servant leadership
Work exists for the development of the worker
Servant leaders transcend self-interest to serve
others
Servant leaders give away power, ideas,
information, recognition, credit, and money
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Authentic leadership
Leaders who know and understand themselves
Inspire trust and commitment
Staying true to one’s values and beliefs
Respect diverse viewpoints
Espouse and act with higher order ethical values
Encourage collaboration
Help others learn, grow, and develop as leaders
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Components of authentic leadership
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Interactive leadership
Derived from studies of female leaders (gender differences)
Consistent with Level 5 leadership
Consensual and collaborative
Influence derived from relationships
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Gender differences in leadershipbehaviours
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Charismatic and visionary leadership Charismatic leaders are skilled in the art of visionary leadership
Inspire and motivate people to do more
A superior vision
Ability to understand and empathize
Empowering and trusting subordinates
Visionary leaders speak to the hearts of employees to be a part of something big
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Transformational vs. transactional leadership
Transactional
Clarify tasks
Initiate structure
Provide awards
Improve productivity
Hard working
Tolerant and fair-minded
Focus on management
Transformational
Innovative
Recognize follower needs
Inspire followers
Create a better future
Promote significant change
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Leadership styles
Autocratic:
Leader makes decisions without reference to anyone else
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
Leadership may be emphasised throughout the organisation
May help motivation and involvement
Workers feel ownership of the firm and its ideas
Can delay decision making
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Leadership styles contd.
Laissez-Faire:
‘Let it be’ – the leadership responsibilities are shared by all
Can be very useful in businesses where creative ideas are
important
Can be highly motivational, as people have control over their
working life
Can make coordination and decision making time-consuming and
lacking in overall direction
Relies on good team work
Relies on good interpersonal relations
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Power in organisations
Ability to influence others and to resist being influenced.
Control of valuable resources.
Capacity to affect another persons rewards and costs.
Ability to control what happens to another
individual.
Two bases of power
Position
Personal
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Sources of powerSource of power Description
Legitimate
power/
Positional power
Power derived through organizational position.
Job descriptions, for example, require junior workers to report to managers and give managers the power to assign duties to
their juniors.
Expert power Power derived through possession of knowledge or expertise in a particular area.
For example, a person who holds expert power can be promoted to senior management, thereby giving him legitimate power
Referent power Referent power is derived from the interpersonal relationships that a person cultivates with other people in the organization.
People possess reference power when others respect and like them. Referent power arises from charisma, as the charismatic
person influences others via the admiration, respect and trust others have for her.
Coercive power Coercive power is derived from a person's ability to influence others via threats, punishments or sanctions.
A junior staff member may work late to meet a deadline to avoid disciplinary action from his boss. Coercive power is, therefore,
a person's ability to punish, fire or reprimand another employee.
Reward power Reward power arises from the ability of a person to influence the allocation of incentives in an organization. These incentives
include salary increments, positive appraisals and promotions. In an organization, people who wield reward power tend to
influence the actions of other employees. Reward power, if used well, greatly motivates employees
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Thank you!
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