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  1. 1. LEADERSHIP A Social influence process in which the leader seeks the voluntary participation of subordinates in an effort to reach organizational objectives. The ability to influence a group towards the achievement of goals.
  2. 2. Transactional Leaders  Contingent Reward – exchange of rewards for effort.  Management by Exception(active) – watches and searches for deviations from the rule, takes corrective action.  Management by Exception (passive) – intervenes only if standards are not met.  Laissez-faire – abdicates responsibilities, avoids making decisions.
  3. 3. Transformational Leaders  Charisma – provides vision and sense of mission  Inspiration – communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.  Intellectual Stimulation – promotes intelligence, rationality and creative problem solving.  Individualized consideration – gives personal attention, treats each employee individually, coaches and advises.
  4. 4. Leadership Theories Trait Theory - Leaders are born not made. A leader trait is a personality characteristic that differentiates a leader from followers.  Ambition and Energy  Drive to Lead  Honesty and Integrity  Self Confidence  Intelligence  Job Relevant knowledge  High Self motivators.
  5. 5. Behaviour Theories Ohio-State Studies : There are two independent dimensions of Leader behaviour.  Initiating Structure – Organizing and defining what group members should be doing.  Consideration – creating mutual respect and trust with followers.
  6. 6. Behaviour Theories Blake and Mouton Managerial Grid (5 quadrants) 1.Country Club Management – thoughtful attention to needs of people leading to a comfortable, friendly organization. 2. Impoverished Management – leader fails to provide necessary structure. Shows little consideration for employee needs and wants
  7. 7. Behaviour Theories Blake and Mouton Managerial Grid (5 quadrants) 3. Organization man management – adequate organization performance is possible through balancing the necessity to get the work done. Employee morale is maintained at satisfactory level. 4. Authority-obedience – primary importance is placed on structuring employee tasks while leader demonstrates little consideration for employees.
  8. 8. Behaviour Theories Blake and Mouton Managerial Grid (5 quadrants) 5. Team – Management – the leader provides a lot of guidance on how work is to be done. Also demonstrates high consideration for people.
  9. 9. Contingency approaches to Leadership Fielder’s Contingency Model- emphasises the situational aspects of specific leadership styles. Analysis of the situation facing the leader would determine the most appropriate style of leadership. Situational favourability consists of : 1. Leader –member relations 2. Degree of task structure 3. The leaders position power
  10. 10. Recommendations of Fielders Contingency Model 1. In either highly favourable or highly unfavourable situations, a task-oriented , tough natured leader is most effective. 2. In moderately favourable/ unfourable situations, people oriented, lenient leader is most effective.
  11. 11. Hersey and Blanchard’s Situational Theory  The maturity level of subordinates should determine the leadership style.  Maturity of followers refers to the task specific combination of Employee competence (ability) and Motivation to perform (willingness).
  12. 12. Situational Leadership Recommendations 1. Low Ability, Low Willingness 2. Low Ability, High Willingness 3. High Ability, Low Willingness 4. High Ability, High Willingness Telling High Direction, Low Support Selling/ Coaching High Direction, High Support Participating/ Supporting Low Direction, High Support Delegating Low Direction, Low Support
  13. 13. Leader – Member Exchange Theory A leader develops a unique one-to-one relationship with each each of the persons reporting to them, favouring some over the others. This creates an in-group and an out-group. Members in the in-group show higher commitment, job satisfaction and job performance than out-group.This relationship becomes stronger when tasks are complex. This influences career outcomes such as promotability, salary level and bonus.
  14. 14. Path-Goal Theory Leader behaviour is acceptable when it provides a ‘path’ to achieve followers ‘goals’. A leader should : 1. Reduce roadblocks that interfere with goal accomplishment 2. Provide the guidance and support needed by employees 3. Tie meaningful rewards to goal accomplishment.
  15. 15. Leadership Styles 1. Directive – tells subordinates what is expected of them and specifies how tasks can be achieved most effectively. 2. Supportive- concerned with subordinates needs. 3. Participative – consults and uses suggestions of followers. 4. Achievement-oriented leader – gives challenging tasks to subordinates and expects them to show their best performance.
  16. 16. Leadership Styles However, there are two contingency variables that affect the behaviour – outcome relationship.  Environmental factors – culture in the organization, formal authority system.  Personal characteristics of the subordinates – locus of control, experience etc.
  17. 17. Managerial Implications  There is no one fixed set of universal leadership traits.  People who are ambitious, have high energy, desire to lead, self confidence, intelligent and having relevant job knowledge, are honest, trustworthy and flexible are more likely to succeed as leaders.
  18. 18. Managerial Implications  For effective leadership, the relevant situational variables are task structure of the job, level of situational stress, level of group support, leader’s intelligence and experience.  Follower characteristics such as personality, ability, experience and motivation affects leadership.