TOPIC 6

LEADERSHIP

DefinitionLeadership is defined as:-- the process of directing and influencing the task related activities of group members;- the process of directing human resource efforts toward organizational objectives.

Who Are Leaders?People who:Can influence the behaviors of others.Are able to influence without having to rely on force. Are accepted by others as leaders.

Importance of LeadershipMake contribution to organizationEnhance cooperationEncourage teamworkMotivate employees to generate good work

Traits of LeadersPhysical Appearance- height, facial expression, gestures, age, etc.Charisma- Vision, self-confidenceMental Ability- Sharpness, intelligenceBehavior / Attitude- Introvert vs. Extrovert, quiet vs. talkative5.Personality Factors- Tendency towards dominance or cooperation

Approaches to Leadership(Leadership Theories)Trait TheoryBehavioral Theory- University of Iowa Studies - Michigan Studies- Ohio State Studies- Managerial Grid3.Contingency/Situational Theory- Path-Goal Theory- Hersey & Blanchard Life-Cycle Theory

Approaches to Leadership:Trait TheoryThe trait theory assumed that leaders were born and not made. Assumed that leaders are born with certain physical characteristics, personality that make them successful leaders.

Six Traits That Differentiate Leaders from NonleadersDriveDesire to leadHonesty and integritySelf-confidenceIntelligenceJob-relevant knowledgeExhibit 11.1Source: Reprinted from Leadership: Do Traits Really Matter? by S. A. Kirkpatrick and E. A. Locke by permission of Academy of Management Executive. May 1991, pp. 4860. 1991 by Academy of Management Executive.

*

Approaches to Leadership:Behavioral TheoryThe behavioral approach/theory assumes that effective leadership behaviors can be learned/trainedFocus on what effective leaders do rather than what effective leaders are.Assumption: effective leaders behaved differently than less-effective leaders.

-i.e. problem solving, leadership skills (task oriented or employees oriented)

Behavioral TheoriesUniversity of Iowa Studies (Kurt Lewin)Identified three leadership styles:Autocratic style: centralized authority, low participationDemocratic style: involvement, high participation, feedbackLaissez faire style: hands-off management

No specific style was consistently better for producing better performanceEmployees were more satisfied under a democratic leader than an autocratic leader.

*

Behavioral Theory: Michigan StudiesIntroduced by Rensis Likert a researcher at University of Michigan.He identified 2 basic forms of leader behavior:-

1. Job-centered leader behavior2. Employee-centered leader behavior

Behavioral Theory: Michigan StudiesJob-centered leader:Focus on jobLeader who pays close attention to subordinates work, explain work procedures, interested in performance.

Employee-centered leader:Focus on employeeLeaders who develop cohesive/organized work groups and ensure employee satisfaction.

Behavioral Theory: Michigan StudiesCONCLUSION:Researchers favored employee-centered leader as an effective leader.Reasons - contribute to higher job productivity and greater job satisfaction.Job-centered leader tend to contribute to low productivity and lower job satisfaction.

Behavioral Theory: Ohio State StudiesA research conducted by Ohio State University.Identified 2 basic forms of leader behavior:-

1. Initiating-structure behavior2. Consideration behavior

Behavioral Theory: Ohio State StudiesInitiating-structure behavior:Leaders who define the leader-subordinate roles so that everyone knows what is expected, establish formal lines of communication, and determine how tasks will be performed.Consideration behavior:Leaders who show concern for subordinates and attempt to establish a friendly and supportive climate.

Behavioral Theory: Ohio State StudiesCONCLUSION:Both initiating structure & consideration are associated with effective leadership.Initiating structure lead to high productivity.Consideration lead to high job satisfaction & high motivation.

Behavioral Theory: Managerial/Leadership Grid

Introduced by Blake and Mouton.The grid reflects the concern for:Concern for production/job/task:Deals with the job aspects of leader behavior.Concern for people:Deals with the people aspects of leader behavior.The grid identifies 5 leadership behaviors based on task & employee-oriented styles.

The Leadership/ Managerial Grid

Managerial/Leadership Grid

Different leadership styles that are practiced in LG/MG

Point (1,1) Impoverished ManagementThe management has little concern for people and production.Point (1,9) Country Club ManagementHighly concern for individual personal needs and interests as well as interpersonal relationship, but he has a low concern for productionPoint (5,5) Middle of the Road/Organization Man ManagementModerate concern for people and production. Point (9,1) Authority/Autocratic/Task ManagementHigh concern for production and low concern for people. Stress on operating efficiently through controls.Point (9,9) Team/Participative/Democratic/Supportive MgtHas high concern for people and production. Work accomplishment is from committed people and managers must also concerned for the feelings and interests of the people

Managerial/Leadership Grid

Among the five leadership styles, Point 9,9 is the best leadership style.

- leaders have high concern for people and production- employees are highly satisfied, less absenteeism, less turnover, high productivity

Exhibit 172Behavioral Theories of Leadership

*

Exhibit 172 (contd)Behavioral Theories of Leadership

*

Approaches to Leadership:Situational/Contingency TheoryThis approach focuses on situational factors influencing managerial style.Assumes that appropriate leader behavior varies from one situation to another.Identify factors that contribute to effectiveness of leadership styles in each situation.

Situational Approach : The Path-Goal Theory (by Robert House)This theory suggests that:-

The primary functions of a leader are to make valued or desired rewards available in the workplace.Clarify to the subordinate the kinds of behavior that will lead to rewards (the leader should clarify the paths to goal attainment).A leaders behavior will contribute to employees satisfaction.A leader/manager is the sources for rewards.A leaders job is to create a work environment through structure (organizing), rules and procedures , plans and goals, supports and rewards (motivation) and to act as a facilitator to help employees reach goals.

The Path-Goal FrameworkEmployees CharacteristicsAbilityOpen-mindedSelf-controlExperience

Leader BehaviorDirectiveSupportiveParticipativeAchievement

orientedEnvironmentalCharacteristicsTask structureWork group

The Path-Goal FrameworkThe framework:-- Suggests that managers can use four types of leader behavior to clarify employees paths to goal attainment. Personal characteristics of the employees and environmental characteristics within the organization must be taken into account when determining which style of leadership will work best for a particular situation.

The Path-Goal FrameworkLeader Behavior:-1. Directive lets employees know what is expected of them, gives guidance and directions, schedules work.2. Supportive- friendly and approachable, concern for employees welfare, treating members as equals.3. Participative consulting with employees, soliciting suggestions, allowing participation in decision making.4. Achievement-oriented setting challenging goals, expecting employees to perform at high levels, encouraging employees, confident in employees abilities.

Situational Approach :Hershey Blanchard Life Cycle TheoryThe theory suggests that:-- A leader should change his style of leadership according to the level of maturity (desire for achievement, willingness and ability to accept responsibility, education/ experience and skills relevant to particular tasks) of his employee and the demands of the situation.- effective leader behavior depends on the match between the readiness of the subordinate and the behavior of the leader.

The Hershey Blanchard Life Cycle Theory

Relationship Behavior(the amount of relation behavior the leader provides ie providing consideration and level of emotional support)Task Behavior(the amount of task behavior that the leader shows ie providing direction, guidelines, controlling and monitoring)

The Hershey Blanchard Life Cycle TheoryPhase 1 (HT/LR) TellingLeaders use one-way communicationHe defines goals and roles of employeesAppropriate when dealing with employees who lack task relevant maturity i.e. employee is new and inexperiencedPhase 2 (HT/HR) SellingEmployee are learning to do the jobHT relationship is needed because employees lack experience and skillsHR is due to managers providing high level of support/encouragementPhase 3 (LT/HR) ParticipatingEmployees who show maturity in performing tasks are more experienced and skilledThe manager reduces the need for task relationship but continues to give emotional support and considerationPhase 4 (LT/LR) DelegatingIs meant for the highest level of employees maturity.The employees possess a high level of task maturity (employees are self-directed)Employee no longer need high level of supportive and task behavior from their leaders/managers

High LowLowHigh PHASE 3

HighRelationship

Low TaskPHASE 4

LowRelationship

Low TaskPHASE 1

LowRelationship

High TaskPHASE 2

High Relationship

High Task

Other Related Perspectives on LeadershipCharismatic leadership

Transformational Leadership

Charismatic Leadership theoryWhat is charismatic leadership theory?Robert House followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors

Key characteristic of charismatic leaderVision and articulationPersonal riskSensitivity to followers needsUnconventional behavior

*

Charismatic Leadership (cont)A charismatic leader influences followers by:Stating a vision that provides a sense of community by linking the present with a better future. Communicating high expectations and expressing confidence that followers can attain them.Conveying, through words and actions, a new set of values, and by his or her behavior setting an example for followers to imitate. (Leadership by example)Making self-sacrifices and engaging in unconventional behavior to demonstrate courage and convictions about the vision.

*Charismatic leaders often emerge during times of crisis or massive change in business, politics, religion, or war. However, once the crisis is over, a charismatic leader may become a liability because overwhelming self-confidence and unconventional behavior can interfere with day-to-day business operations.

Transformational vs TransactionalTransformational leaders: inspire followers to transcend their own self-interest for the good of the organization. are capable of having a profound and extraordinary effect on their followers.

Transactional leaders:Leaders who guide their followers directions and tasks to achieve goals.

*There are other research done on differentiating transformational leader and transactional leader

Transactional leader Ohio State studies, Fiedlers model and path goal theory, where they direct leaders direction to achieve the goals by doing certain tasks and requirements.

Transformational leadership (cont)Characteristic of transformational leader:Idealize influenceInspirational motivationIntellectual StimulationIndividual Consideration

How does transformational leaders work?They encourage followers to be more innovation and creative

*Idealized Influence Provides vision and sense of mission, instills pride, gains respect and trustInspirational motivation Communicate high expectation, uses symbols to focus efforts, express important purposes in simple waysIntellectual Stimulation Promotes intelligence, rationality and careful at problem solvingIndividual consideration Gives personal attention, treats each employee individually, coaches and advises

Leadership and Management (both are related with some distinction)

ACTIVITYMANAGEMENT (managers)LEADERSHIP (leaders)Creating an AgendaPlanning and budgeting. Establishing details steps and allocating resourcesEstablishing direction. Developing vision of the future and strategies to achieve the visionDeveloping a human network to achieve agendaOrganizing and staffing. Establishing structure and delegation Aligning people. Communicating by words and actionsExecuting PlansControlling and problem solving. Monitoring result vs. planningMotivating and inspiring. Energize people to overcome barriersOutcomeProducing a degree of predictability and order and able to produce consistently major results.Producing change, often to a dramatic degree, and has potential to produce extremely useful change i.e. developing new products

POWERIs the potential ability to influence others behavior.The ability to exert/use influence.

There are 2 types of power a leader holds in an organization:-Position powerPersonal power

POWERPosition powera power that a manager has due to his position in an organization. The position that a manager holds, gives him the power to reward or punish subordinates in order to influence their behavior.

POSITION POWER4 sources of position power (forms of position power)

Legitimate power- Power granted through organizational hierarchy.i.e. Company guard has the power to require even the company president to present an identification card before entering the premise.

2.Reward power- The power to give or withhold rewards such as salary increase, bonuses, promotion.

3.Coercive power- The power to punish or recommend punishmenti.e. written or verbal warning, fines

Information powerPower based on control of information.Leaders power to access and distribute information that is desired by others, which other people dont have access.

POWERPersonal powera power that a manager has due to his special knowledge or personal characteristics.

PERSONAL POWER2 sources of personal power:

Expert power- The personal power that accrues to someone based on the information or expertise that they possessi.e. a scientist who is capable of achieving an important breakthrough .

Referent power- The personal power that accrues to someone based on identification, loyalty or charismai.e. Tun Dr. Mahathir the charisma that he has.i.e. workers admire a supervisor because of the way he deals with employees.

*

*

*

*

*

*Charismatic leaders often emerge during times of crisis or massive change in business, politics, religion, or war. However, once the crisis is over, a charismatic leader may become a liability because overwhelming self-confidence and unconventional behavior can interfere with day-to-day business operations.*There are other research done on differentiating transformational leader and transactional leader

Transactional leader Ohio State studies, Fiedlers model and path goal theory, where they direct leaders direction to achieve the goals by doing certain tasks and requirements.*Idealized Influence Provides vision and sense of mission, instills pride, gains respect and trustInspirational motivation Communicate high expectation, uses symbols to focus efforts, express important purposes in simple waysIntellectual Stimulation Promotes intelligence, rationality and careful at problem solvingIndividual consideration Gives personal attention, treats each employee individually, coaches and advises