Story A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port. The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible. Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.
Leadership Story And shouts down to the assembled group below… “Wrong Way!” (Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People” Simon & Schuster). “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)
Definition The ability to positively influence people and systems to have a meaningful impact and achieve results.
Characteristics of Leadership Leader must have followers It is working relationship between leader and followers Purpose is to achieve some common goal or goals A leader influences his followers willingly not by force Leadership is exercised in a given situation Leadership is a power relationship It is a continuous process
A Question… A leader need not be a manager but a manager must have many of the qualities of a good leader????? Managerial Leadership
Significance Setting Goals Motivating Employees Building morale Creating Confidence Discipline Developing Team-work Facilitates Change Representing the group
Leader because of ability to accomplish things
LeadershipManagement Working in the system React Control risks Enforce organizational rules Seek and then follow direction Control people by pushing them in the right direction Coordinate effort Provide instructions Working on the system Create opportunities Seek opportunities Change organizational rules Provide a vision to believe in and strategic alignment Motivate people by satisfying basic human needs Inspire achievement and energize people Coach followers, create self-leaders and empower them
LeadershipManagement Establishing Direction Develop future vision Develop change strategies to achieve vision Aligning People Communicate directly by words & deeds to those whose cooperation needed Influence creation of coalition/teams that understand & accept vision and strategies Motivating/inspiring Energy to overcome barriers (ex. Political resource, bureaucratic) to change by satisfying basic needs Tends to Produce Change often dramatic Provides potential for very useful change (ex. New products) Planning/Budgeting Develop detailed steps/ timetables for results Allocate necessary resources Organizing/Staffing Develop necessary planning, staffing, delegation structures Provide policies/procedures for guidance and methods/systems for monitoring Control/Problem Solving Monitor results vs. plan in detail Identify results/plan deviations and plan and organize to correct Tends to Produce Order/predictability Key results expected by stakeholders Agenda Network Development for Agenda Achievement Execution Outcomes
The manager accepts the status quo; the leader challenges it.
The manager is the classic good soldier; the leader is his or her own person.
Leadership Traits Intelligence More intelligent than non-leaders Scholarship Knowledge Being able to get things done Physical Doesn’t seem to be correlated Personality Verbal facility Honesty Initiative Aggressive Self-confident Ambitious Originality Sociability Adaptability
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 from different perspectives – leadership may be emphasised throughout the organisation Consultative: process of consultation before decisions are taken Persuasive: Leader takes decision and seeks to persuade others that the decision is correct
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
LeadershipTheories Trait Theory Early on, it was thought that leaders were born with inherent physiological and personality traits Age Height Intelligence Academic achievements Stogdill (1974) – identified several general factors that differentiate leaders from non-leaders…
LeadershipTheories Trait Theory (continued) Capacity: problem-solving capabilities, making judgments and working hard Achievements: accomplishments such as academic record, knowledge and sports Responsibility: dependability, reliability, self-drive, perseverance, aggressiveness and self-confidence Participation and involvement: highly developed social interaction, popularity, swift adaptation to changing situations, and easier cooperation compared to non-leaders Socio-economic status: effective leaders usually belong to higher socio-economic classes
Leadership Theories Behavioral Theories Ohio State studies focused on task and social behavior of leaders Identified two dimensions of leader behavior Initiating Structure: role of leader in defining his/her role and roles of group members Consideration:leader’s mutual trust and respect for group members’ ideas and feelings Two different behavioral theories:
Leadership Theories Role Theory Assumptions about leaders’ in organizations are shaped by culture, training sessions, modeling by senior managers, etc. People define roles for themselves and others based on social learning and reading. People form expectations about the roles that they and others will play. People subtly encourage others to act within the role expectations they have for them. People will act within the roles they adopt.
Leadership Theories Managerial Grid Developed by Drs. Robert R. Blake and Jane S. Mouton Believed managers have different leadership styles which led to two different dimensions of leadership: Concern for Production: manager who is task-oriented and focuses on getting results or accomplishing the mission (X-axis of grid) Concern for People: manager who avoids conflicts and strives for friendly relations with subordinates (Y-axis of grid)
Leadership Theories Participative Theories Assumes the following Involvement in decision-making improves the understanding of the issues involved and the commitment of those who must carry out the decisions. People are less competitive and more collaborative when they are working on joint goals. Several people deciding together make better decisions than one person alone. Two different participative theories:
Leadership Theories Lewin’s Leadership styles Kurt Lewin’s studies at the University of Iowa (1939) Identified three different styles of leadership: Autocratic: centralized authority, low participation (works where input would not change decision or employee motivation, excessive styles lead to revolution) Democratic: involvement, feedback (appreciated by people, most effective style but problematic when there are a range of opinions) Laissez-Faire: hands-off management (works when people are motivated and there is no requirement for central coordination)
Likert’s system of Leadership RensisLikert and his associates studied the patterns and styles of managers for three decades at the University of Michigan, USA, and identified a four-fold model of management systems. The model was developed on the basis of a questionnaire administered to managers in over 200 organizations and research into the performance characteristics of different types of organizations. The four systems of management system or the four leadership styles identified by Likert are:
System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the upper echelons of the hierarchy. The superior has no trust and confidence in subordinates. The decisions are imposed on subordinates and they do not feel free at all to discuss things about the job with their superior. The teamwork or communication is very little and the motivation is based on threats. System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not at the lower levels of the organizational hierarchy. The superior has condescending confidence and trust in subordinates (master-servant relationship). Here again, the subordinates do not feel free to discuss things about the job with their superior. The teamwork or communication is very little and motivation is based on a system of rewards. System 3 - Consultative: Responsibility is spread widely through the organizational hierarchy. The superior has substantial but not complete confidence in subordinates. Some amount of discussion about job related things takes place between the superior and subordinates. There is a fair amount of teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job. System 4 - Participative: Responsibility for achieving the organizational goals is widespread throughout the organizational hierarchy. There is a high level of confidence that the superior has in his subordinates. There is a high level of teamwork, communication, and participation.
Conclusion According to RensisLikert, the nearer the behavioral characteristics of an organization approach System 4 (Participative), the more likely this will lead to long-term improvement in staff turnover and high productivity, low scrap, low costs, and high earnings, if an organization wants to achieve optimum effectiveness, then this is the ideal system
Leadership Continuum A simple model which shows the relationship between the level of freedom that a manager chooses to give to a team, and the level of authority used by the manager. As the team's freedom is increased, so the manager's authority decreases. This is a positive way for both teams and managers to develop.
Michigan Studies Studies conducted by Michigan University beginning in the 1950s Found 3 critical characteristics of effective leaders:
Effective Leaders didn’t do the same work as their subordinates.
Focus on task, but also on relationship with subordinates
Use a participative style, managing at the group level as well as individually The role of the manager is more facilitative than directive Leadership Theories
Leadership Theories Contingency Theory Assumptions: No one best way of leading Ability to lead contingent upon various situational factors: Leader’s preferred style Capabilities and behaviors of followers Various other situational factors Effect: Leaders who are successful in one situation may become unsuccessful if the factors around them change
Leadership Theories Contingency Theory: Fiedler’s Least Preferred Co-Worker (LPC) Theory Assumptions: Leaders prioritize between task-focus and people-focus Leaders don’t readily change their style Key situational factor in matching leader to situation: Relationships Power Task structure LPC Questionnaire Determines leadership style by measuring responses to 18 pairs of contrasting adjectives. High score: a relationship-oriented leadership style Low score: a task-oriented leadership style Tries to identify the underlying beliefs about people, in particular whether the leader sees others as positive (high LPC) or negative (low LPC).
Leadership Theories Findings of the Fiedler Model Exhibit 17.4
Situational Leadership Situational factors (motivation, capability of followers, relationship between followers and leader) determine the best action of leader Leader must be flexible to diagnosis leadership style appropriate for situation and be able to apply style No one best leadership style for all situations Leadership Theories
Hersey & Blanchard’s Situational Leadership (1977) Identified 4 different leadership styles based on readiness of followers R1. Telling (high task/low relationship behavior)
Giving considerable attention to defining roles and goals
Recommended for new staff, repetitive work, work needed in a short time span
Leadership Theories Hersey & Blanchard’s Model Source:Reprinted with permission from the Center for Leadership Studies. Situational Leadership® is a registered trademark of the Center for Leadership Studies. Escondido, California. All rights reserved.