Leadership

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Leadership

  1. 1. LeadershipContents-1- Meaning2- Definition3- Nature & Characteristics4- Types5- Leadership vs. Management6- 5 ps of leadership7- Theories of leadership8- Leadership stylish9- Importance10- Contemporary issues of leadership11- How can we improve leadership skills12- Leadership CompetenciesMeaningThe word ―leadership‘ has been used in at least three different ways. Occasionally it refers toa position within an organization, e.g., ―We are inviting all of the leadership to attend theseminar. ‗Leadership‖ has also been used to describe a personality characteristic, e.g.. ‗Ournew supervisor doesn‘t have as much leadership as our previous one.Leadership is "organizing a group of people to achieve a common goal". The leader may ormay not have any formal authority. Leadership has been described as ―a process of socialinfluence in which one person can enlist the aid and support of others in the accomplishmentof a common task".Leadership is a FUNCTION OF 3 VARIABLES – • THE INDIVIDUAL - the leader himself • THE GROUP OF FOLLOWERS • THE CONDITIONS / SITUATIONFOR A GOOD UNDERSTANDING OF LEADERSHIP, IT IS ESSENTIAL TO HAVE A GOODUNDERSTANDING OF THE INDIVIDUALS, THE ORGANISATIONS AND CONDITION OFTHEIR INTER-RELATIONSHIPSTHE INFLUENCING FACTORS 1- Leaders- personality, belief, preferred style 2- Follower- independent, lazy, dependent, confident In leader 3- Situation- organization culture, time pressurePrepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 1
  2. 2. A leader may be defined as a person who establishes vision, sets goals, motivates peopleand obtains their commitment to achieve the goals and realize the vision.DefinitionLeadership is an interpersonal influence directed toward the achievement of a goal or goals.LEADERSHIP IS THE ABILITY OF A MANAGER TO BRING PEOPLE TO WORKTOGETHER EFFICIENTLY FOR A COMMON GOAL.Leadership is ―GETTING EXTRA-ORDINARY PERFORMANCE OUT OF ORDINARYPEOPLE‖ Sir John Harvey JonesLeadership is ―a business short on capital can borrows money. But a business short ofleadership has little Chance of Survive Peter DruckerLeadership is influence - nothing more, nothing less.‖ - John C Maxwell―Leadership is a function of knowing yourself, having a vision that is well communicated,building trust among colleagues, and taking effective action to realize your own leadershippotential.‖ - Warren Bennis―Leadership is the process of persuasion and example by which an individual (or leadershipteam) induces a group to take action that is in accord with the leader‘s purpose, or the sharedpurposes of all.‖ - John W. Gardner.Nature of Leadership • Leadership is a process • Leadership is a group phenomena • Leadership is an interaction • Leadership is propertyTypes of leadership- there are two types of leadership-Formal leadership – the officially sanctioned leadership based on the authority of a formalposition.Informal leadership – the unofficial leadership accorded to a person by other members ofthe organization.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 2
  3. 3. Leadership vs. Management - Management is doing things right, leadership is doing theright things- Warren Bennis and Peter Drucker Leadership Management Direction Creating vision & strategy Planning & budgeting Keeping Keeping eye on horizon eye on the bottom line Alignment Creating shared culture and Organizing & staffing Directing & values Helping others grow controlling Create boundaries Reduce boundariesRelationships Focusing on people- inspiring Focusing on objects- producing/ and motivating followers Based selling goods and services on personal power Acting as coach, facilitator, servantPersonal Emotional connections (Heart) Emotional Distance Expert mindQualities Open mind (Mindfulness) Talking Conformity Insight into Listening (Communication) organization Nonconformity (Courage) Insight into self (IntegrityOutcomes Creates change, often radical Maintains stability change A leader may have no formal Management suggests more title at all and rely on personal formality & manager refers to a traits and style to influence position in an organization followers. Leaders have followers Managers dont have Long term view Short term view Ask what & why Ask how & when5 Ps of leadership  Pay attention to what‘s important  Praise what you want to continue  Punish what you want to stop  Pay for the results you want  Promote those people who deliver those resultsPrepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 3
  4. 4. Leadership theoriesThe study of leadership has given rise to Dispositional theories of leadership, behavioraltheories and situational leadership theories- • Dispositional theories: there are certain attributes which make a great leader • Behavior theories: great leadership is based on what someone does • Situational (contingency) theories: interaction between leader and situation is importantDispositional theories- this theory include two theories-A) - Great man theoryB)- Trait theoryA)- Great Man theory- The Great Man Theory was a popular 19th century idea accordingto which history can be largely explained by the impact of "great men", or heroes: highlyinfluential individuals who, due to either their personal charisma, intelligence, wisdom, orMachiavellianism utilized their power in a way that had a decisive historical impact .This theory is usually contrasted with a theory that talks about events occurring in the fullnessof time, or when an overwhelming wave of smaller events cause certain developments tooccur. The Great Man approach to history was most fashionable with professional historiansin the 19th century; a popular work of this school is the Encyclopedia Britannica EleventhEdition (1911) which contains lengthy and detailed biographies about the great men of history,but very few general or social histories.B)- Trait theory- The trait model of leadership is based on the characteristics of many leaders- both successful and unsuccessful - and is used to predict leadership effectiveness. Theresulting lists of traits are then compared to those of potential leaders to assess theirlikelihood of success or failure.Scholars taking the trait approach attempted to identify physiological (appearance, height, andweight), demographic (age, education and socioeconomic background), personality, self-confidence, and aggressiveness), intellective (intelligence, decisiveness, judgment, andknowledge), task-related (achievement drive, initiative, and persistence), and socialcharacteristics (sociability and cooperativeness) with leader emergence and leadereffectiveness.Successful leaders definitely have interests, abilities, and personality traits that are differentfrom those of the less effective leaders. Through many researches conducted in the last threedecades of the 20th century, a set of core traits of successful leaders have been identified.These traits are not responsible solely to identify whether a person will be a successful leaderor not, but they are essentially seen as preconditions that endow people with leadershippotentialAmong the core traits identified are: Achievement drive: High level of effort, high levels of ambition, energy and initiative Leadership motivation: an intense desire to lead others to reach shared goalsPrepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 4
  5. 5. Honesty and integrity: trustworthy, reliable, and open Self-confidence: Belief in one‘s self, ideas, and ability Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and conceptually skilled Knowledge of business: Knowledge of industry and other technical matters Emotional Maturity: well adjusted, does not suffer from severe psychological disorders. Others: charisma, creativity and flexibilityStrengths/Advantages of Trait Theory It is naturally pleasing theory. It is valid as lot of research has validated the foundation and basis of the theory. It serves as a yardstick against which the leadership traits of an individual can be assessed. It gives a detailed knowledge and understanding of the leader element in the leadership process.Limitations of The Trait Theory There is bound to be some subjective judgment in determining who is regarded as a ‗good‘ or ‗successful‘ leader The list of possible traits tends to be very long. More than 100 different traits of successful leaders in various leadership positions have been identified. These descriptions are simply generalities. There is also a disagreement over which traits are the most important for an effective leader The model attempts to relate physical traits such as, height and weight, to effective leadership. Most of these factors relate to situational factors. For example, a minimum weight and height might be necessary to perform the tasks efficiently in a military leadership position. In business organizations, these are not the requirements to be an effective leader.Behavioral theoriesA ) - Ohio State StudiesB )- University of Michigan StudiesC )- Managerial Grid model A) Ohio State Studies- Following World War II, a major research effort studying leader behaviors was conducted at The Ohio State University. This project involved a series of studies that ultimately produced a two-factor theory of leader behavior. The two leadership factors were referred to as- Initiating structure Consideration Initiating structure -initiating structure consisted of leadership behaviors associated with organizing and defining the work, the work relationships, and the goals. A leader who initiated structure was described as one who assigned people to particular tasks, expected workers to follow standard routines, and emphasized meeting deadlines. Consideration -The factor of consideration involved leader behaviors that showed friendship, mutual trust, warmth, and concern for subordinates.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 5
  6. 6. These two factors were identified by administering questionnaires containing numerous descriptions of leader behaviors and combining the items that seemed to measure the same dimension, through a statistical technique called factor analysis. The research indicates that initiating structure and consideration are separate and independent dimensions of leadership behavior. Therefore, a leader could be high on both dimensions, low on both dimensions, or high on one and low on the other. Since both factors were considered important dimensions of leadership, the early studies assumed that the most effective leaders were high ~n both dimensions. B) University of Michigan Studies - About the same time as the Ohio State University researchers were discovering the dimensions of initiating structure and consideration, a similar research program at the University of Michigan identified two similar dimensions of leadership behavior which they labeled as- Production-centered Employee centered behaviors Production-centered behaviors- were similar to initiating structure in which leaders established goals, gave instructions, checked on performance, and structured the work of the group. Employee-centered behaviors were similar to the dimension of consideration in which the leader developed a supportive personal relationship with subordinates, avoided punitive behavior, and encouraged two-way communication with subordinates.Studies on the relationship between production-centered and employee centered behaviorsalso found them to be independent dimensions of leadership. A review of twenty-four studiesdispelled a popular myth which suggested that supervisors focused on either production oremployees, and to the extent they focused on one; they were necessarily disinterested in theother. These studies indicated instead that supervisors can be interested in both productionand employees. Therefore, a leader who has a strong production orientation is not necessarilydisinterested in the employees. Knowing an individual‘s orientation on one leader dimensionsays nothing about that person‘s orientation on the other. C) Managerial Grid model- A conceptual framework combining a concern for task accomplishment and a concern for people was created by Robert Blake and Jane Mouton called the Managerial Grid. The concern for production dimension is measured on a nine-point scale and represented along the horizontal dimension, while the vertical dimension measures an individual‘s concern for people, again using a nine-point scale. Blake and Mouton assume that the most effective leadership style is a 9,9 style, demonstrating both concern for production and concern for people. By responding to a questionnaire developed by Blake and Mouton, individuals can place themselves in one of the eighty-one cells on the managerial grid. • Authority Compliance Manager (9,1) – a leader who emphasizes efficient production. Leader is primarily concerned with production and task accomplishment and unconcerned about people; This person wants-to get the job - done and wants a schedule followed at all costs.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 6
  7. 7. • Country Club Manager (1,9) – a leader who creates a happy, comfortable work environment. It reflects a maximum concern for people with minimum concern for production. This individual is not concerned whether the group a small produces anything, but is highly concerned about the members‘ personal needs, interests and inter-personal relationships. • Organization Man (5,5) – a middle-of-the-road leader. Leadership style reflects a moderate concern for both people and production, • Team Manager (9,9) – a leader who builds a highly productive team of committed people. This Leadership style reflects a maximum concern for both production and people. A 9,9 leader wants to meet schedules and get the job done but at the same time is highly concerned about the feelings and interests of the group members. • Impoverished Manager (1,1) – a leader who exerts just enough effort to get by. The 1,1 leadership style reflects minimal concern for both production and people and is characteristic of a person who essentially abdicates the leadership role.The Managerial Grid is popular among managers, and they have used it rather extensively toassess their leadership style as part of a training program designed to move them to the 9,9style. In spite of its popularity, however, the usefulness of the Managerial Grid has not beenconsistently supported by research. Most of the available research consists of case analyseswhich have been loosely interpreted to support it.However, empirical research has failed to show that a 9,9 leadership style is universallysuperior. The demands of the situation, the expectations of other group members, and thenature of the work being performed interact in complex ways that call for a variety ofleadership styles. Consequently the 9,9 leadership style is not always the most effective.Although the research has not shown that one leadership style is universally superior, thisresearch helps to identify the important leadership roles that occur within a group. Rather thanthinking of leadership strictly in terms of the behavior of the formal leader, it is helpful to thinkPrepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 7
  8. 8. of leadership as leadership roles performed within a group. Thinking of leadership this wayimplies that leadership consists of leader behaviors performed by any group members,whether they are formally appointed as leaders or not.Situational Leadership Theories - In analyzing leadership at the organizational level ofanalysis, the effectiveness of the different leadership styles must be combined with differentorganizational factors to assess their effect effectiveness. At this level of analysis, the studyof leadership has given rise to contingency theories of leadership or situational leadershiptheories. Four situational leadership theories have received the primary attention:A)- Paul Hersey‘s and Ken Blanchard‘s situational leadership model,B)- Fred Fiedler‘s contingency theory of leadership,C)- Robert Houses path-goal theory of leadership,D)- Victor Vroom and Philip Yetton‘s normative decision-making model of leadership. A) Paul Hersey’s and Ken Blanchard’s situational leadership model - The SituationalLeadership Model is a leadership model that was developed in the late 1960‘s by KenBlanchard and Paul Hersey. The model essentially says that the leadership method oneemploys depends on the situation. Before one selects a leadership style to use, they mustfirst understand the situation and the importance of the possible outcomes. Then the leadermay choose one of the four leadership styles and act accordingly.According to Paul Hersey, ―Situational Leadership® is based on interplay among the amountof: Direction (task behavior) a leader gives Socio-emotional support (relationship behavior) a leader provides "Readiness" level that followers exhibit on a specific task, function, activity, or objective that the leader is attempting to accomplish through the individual or groupTask behavior is the extent to which a leader engages in one-way communication byexplaining what each follower is to do, as well as when, where, and how tasks are to beaccomplished. Relationship behavior is the extent to which a leader engages in two-waycommunication by providing socio-emotional support, "psychological strokes", and facilitatingbehaviors. Readiness is the ability and willingness of a person to take responsibility fordirecting his/her own behavior in relation to a specific task to be performed.‖Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 8
  9. 9. Situational leadership theory talks about four different leadership styles and how it relates tosubordinate‘s confidence or ability to carry out a task.The first leadership style is what they call telling. It is best used when subordinates eitherlack the ability or lack the maturity to handle a task well. This is when the leader needs to telland direct the subordinates with specific instructions and expectations.The next leadership style is called selling. Instead of telling them exactly what to do, theleader sells them the idea and gives them some level of independence and autonomy toperform the task. The success of this style will be dependent on how much the subordinatesare ‗sold‘ on.After that, participating style where the leader talks to everyone about his ideas and hearsthe opinion of everyone. There is more shared responsibility in this style because the finaldecision on a task would be a collective decision of the whole team.Finally the delegating style is when the leader fully delegates a task to a subordinate withoutspecific instructions. He tells the subordinates about what needs to be achieved and he truststhe subordinate to find out how to achieve it.This model assumes that the leader is able to change his behaviour to adapt to the changingneeds and readiness of his subordinates. Nevertheless, it‘s a useful tool for you to assessyour own subordinates and adapt to them accordingly.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 9
  10. 10. B)- Fred Fiedler’s contingency theory of leadership - The most popular and extensivelyresearched situational theory of leadership was first proposed by Fred Fiedler during the1960s. Fiedler‘s model claims that group performance depends on the interaction of theleader style and the favorableness of the situation. Fielders‘ major contributions consist of(l) identifying the leadership orientation of the leader and developing a way to measure it, and(2) identifying three situational factors influencing leadership and developing a method ofmeasuring themLeader Orientation. Fiedler‘s definition of the leader‘s orientation emerged largely fromearlier studies in which leaders were classified as either relationship-oriented or task-oriented.Relationship-oriented leaders look at others as coworkers and see close interpersonalrelations as a requirement for accomplishing the task.Task-oriented leaders show a strong emotional reaction against people with whom they havedifficulty working. If they are forced to make a choice between getting the job done or worryingabout interpersonal relations, they choose the task first and worry about interpersonalrelations later.Following earlier research, Fiedler suggested that individuals could be placed along onecontinuum characterized by two basic leader orientations:Relationship-oriented versus task-orientedSituational favorableness. Fiedler‘s model claims that whether a high LPC leader or lowLPC leader will be more effective depends upon the favorableness of the situation. In somesituations, a high LPC leader is most effective, while a unenthusiastic low LPC leader is moreeffective in other situations.Fiedler claimed that the favorableness of the situation is determined by three variables:(1) whether the relationships between the leader and the members are good or poor.(2) whether the task is relatively structured or unstructured, and(3) whether the power position of the leader is relatively strong or weak.LPC scale. Leadership orientation is measured by the least preferred coworker (LPC) scale,as illustrated in Exhibit 16.5. Individuals are asked to think of a person with whom they haveworked who they least preferred as a coworker, and describe this person using sixteenscales. When the responses arc summed, an individual with a favorable description of theleast preferred coworker would have a high LPC score, suggesting a relationship-orientedleader. An unfavorable description of the least preferred coworker would result in a low score,suggesting a task-oriented leader.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 10
  11. 11. A review of 25 years of research using th~3 LPC scale concluded that- High LPC leaders are primarily relationship-oriented Low LPC leaders are primarily task-oriented consistent with Fiedlers claims. In general, a low LPC leader is more directive, more structuring, more goal-oriented, and more concerned with efficiency. A high LPC leader is more considerate, more human relations oriented, more participative, and more sensitive to the feelings of others.LimitationDifficulty in interpreting the LPC scores has been a problem for Fiedler‘s contingency theory.The LPC scale is not related to any of the well-known personality measures. In spite ofuncertainty about what exactly it measures, however, the evidence indicates that it is areliable measure of something, and Fiedler concludes that ―there can be little doubt that weare dealing with a very important aspect of personality.‖Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 11
  12. 12. Vroom–Yetton decision model-The Vroom–Yetton contingency model is a situational leadership theory of industrial andorganizational psychology developed by Victor Vroom, in collaboration with Phillip Yetton(1973) and later with Arthur Jago (1988). The situational theory argues the best style ofleadership is contingent to the situation. This model suggests the selection a leadership stylefor group decision making.Vroom-Yetton-Jago Normative Decision Model help us to answer above questions. Thismodel identifies five different styles (ranging from autocratic to consultative to group-baseddecisions) on the situation & level of involvement. They are:Autocratic Type 1 (AI) – Leader makes own decision using information that is readilyavailable to you at the time. This type is completely autocratic.Autocratic Type 2 (AII) – Leader collects required information from followers, then makesdecision alone. Problem or decision may or may not be informed to followers. Here, followersinvolvement is just providing information.Consultative Type 1 (CI) – Leader shares problem to relevant followers individually andseeks their ideas & suggestions and makes decision alone. Here followers‘ do not meet eachother & leader‘s decision may or may not has followers influence. So, here followersinvolvement is at the level of providing alternatives individually.Consultative Type 2 (CII) – Leader shares problem to relevant followers as a group andseeks their ideas & suggestions and makes decision alone. Here followers‘ meet each otherand through discussions they understand other alternatives. But leader‘s decision may or maynot has followers influence. So, here followers involvement is at the level of helping as agroup in decision-making.Group-based Type 2(GII) – Leader discuss problem & situation with followers as a group andseeks their ideas & suggestions through brainstorming. Leader accepts any decision & do nottry to force his idea. Decision accepted by the group is the final one.Vroom & Yetton formulated following seven questions on decision quality, commitment, probleminformation and decision acceptance, with which leaders can determine level of followers involvementin decision. Answer to the following questions must be either ‘Yes’ or ‘No’ with the current scenario.1.Is there a quality requirement? Is the nature of the solution critical? Are there technical orrational grounds for selecting among possible solutions?2.Do I have sufficient information to make a high quality decision?3.Is the problem structured? Are the alternative courses of action and methods for theirevaluation known?4.Is acceptance of the decision by subordinates critical to its implementation?Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 12
  13. 13. 5.If I were to make the decision by myself, is it reasonably certain that it would be accepted bymy subordinates?6.Do subordinates share the organizational goals to be obtained in solving this problem?7.Is conflict among subordinates likely in obtaining the preferred solution?Based on the answers one can find out the styles from the graph.Path-goal theory The path-goal theory of leadership was developed by Robert House (1971) and was basedon the expectancy theory of Victor Vroom. According to House, the essence of the theory is"the meta proposition that leaders, to be effective, engage in behaviors that complementsubordinates environments and abilities in a manner that compensates for deficiencies and isinstrumental to subordinate satisfaction and individual and work unit performance".The theory identifies four leader behaviors, achievement-oriented, directive, participative, andsupportive, that is contingent to the environment factors and follower characteristics. Incontrast to the Fiedler contingency model, the path-goal model states that the four leadershipbehaviors are fluid, and that leaders can adopt any of the four depending on what thesituation demands.The path-goal model can be classified both as a contingency theory, as it depends on thecircumstances, and as a transactional leadership theory, as the theory emphasizes thereciprocity behavior between the leader and the followers.The essence of the theory is that it‘s the leader‘s job to assist his or her followers in attainingtheir goals and to provide the direction or support needed to ensure that their goals arecompatible with the overall objectives of the group or organization .Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 13
  14. 14. 1- The term path-goal is derived from the belief that effective leaders clarify the path and reduce roadblocks and pitfalls for their followers. 2- A leader‘s behavior is acceptable to subordinates to the degree that they view it as an immediate source of satisfaction or as a means of future satisfaction. 3- A leader‘s behavior is motivational to the degree that it: (1) Makes subordinate need satisfaction contingent on effective performance. (2) Provides the coaching, guidance, support, and rewards that are necessary for effective performance.Path-Goal Leadership Styles-Directive -Autocratic leadership, which is also being referred to as Authoritarian Leadership is defined bythe fact that the leader is making all of the decisions and the followers are simply there tofollow orders and to execute without deviating from the decision. Their participation in thedecision making process is nonexistent. There are some situations where the use of theautocratic style is appropriate and actually the use of any other style would render yourleadership ineffective.Participative leadershipPrepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 14
  15. 15. Participative leadership also known as Democratic leadership entails that there is someparticipation from the followers within the decision process. However, these decisions areguided by the leader and he actively participates. The democratic style can take you and yourorganization to the top.SupportiveAlso called Benevolent Autocratic. Main characteristics are-  Close controls and supervision  Centralized decision-making  Carrot and stick policy is followed. However, carrots are given also, not just shown.  While taking decisions leaders have consideration for the employees.  Some amount of freedom is given to employees so that they can implement the decisions.Achievement-orientedFree-reign style, like the name indicates, is defined by the reality that the followers have beengranted all of the decisional power and there isnt any participation from the leader. This style,contrary to popular belief, is a must if you want to move toward the summit of your leadershipcareer.Importance of leadership-Why is leadership necessary? Most organizations are highly structured and have relativelyclear lines of authority, stated objectives, and momentum to carry them forward. Why, then, isthere a need for incremental influence beyond the routine directives and formal jobrequirements? Four reasons have been proposed to explain the need for ongoing leadership. 1- Incomplete organizational structure -The first reason why leadership is necessary is because there is a degree of incompleteness in every organization design. Social organizations cannot be designed to be like machines, which are simply turned on and allowed to run untouched. Leaders are needed to structuring the tasks, decide who should do what, and delegate work assignments, level. Leaders help the people they lead to accomplish their collective goals. 2- External change - The second reason why leadership is necessary is because the organization exists in a changing environment. As the external environment changes, leaders are needed to identify the strategic mission of the organization and help it adapt to its changing environment.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 15
  16. 16. 3- Internal change- The third reason for leadership stems from the dynamics of internal change in the organization. Leadership is needed to coordinate the efforts of diverse organizational units, particularly during periods of rapid growth or decline. Leadership is necessary to solve internal conflicts and settle differences of opinion. 4- Motivate and inspire- The fourth reason why organizations require leadership stems from the need to motivate people and maintain their involvement in the organization. Individuals are not permanent fixtures within the organization. Instead, they come and go, and when they are present, their needs and Intel interests change. Effective leadership provides meaning and purpose by creating a vision of where the organization is going. This ability to inspire and motivate others and transform them into committed contributors to the organization is the function of leadership that has captured the interest of philosophers and scholars and propelled the study of leadership.Contemporary issues of leadershipCharismatic Leadership- Followers make attributions of heroic or extraordinary leadershipabilities when they observe certain behaviors. Personal characteristics of charismatic leadersinclude having a vision, being willing to take risks, being sensitive to both environmentalconstraints and follower needs, and exhibiting behaviors that are out of the ordinary.Charismatic’s Influence Followers By: 1. Articulating the vision - Has a vision—expressed as an idealized goal—that proposes a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others. 2. Personal risk- Willing to take on high personal risk, incur high costs and engage in self-sacrifice to achieve the vision. 3. Environmental sensitivity- Able to make realistic assessments of the environmental constraints and resources needed to bring about change. 4. Sensitivity to follower needs- Perceptive of others‘ abilities and responsive to their needs and feelings. 5. Unconventional behavior- Engages in behaviors that are perceived as novel and counter to norms. 6. Setting high performance expectations 7. Conveying a new set of values 8. Making personal sacrificesHow charismatic leaders influence followersA four-step process - 1- Articulation of an appealing vision.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 16
  17. 17. 2- Communication of high performance expectations, expressing confidence that the expectations will be achieved. 3- Conveying a new set of values. 4- Making self-sacrifices and engaging in unconventional behaviors.There is a high correlation between charisma and high performance and satisfaction amongfollowers. The ―dark side‖ of charisma is that its effects may be situational-1- It is generally needed in tasks that have an ideological component (war, politics, etc.)2-It is hard to use charisma at lower levels of the organization because it is harder to define the visionand align this vision with the larger goals of the organization.3-Sometimes charismatic leaders don‘t act in the best interest of their organization.Transactional Leadership- Transactional leadership, also known as managerial leadership,focuses on the role of supervision, organization and group performance. This theory ofleadership was first described in by sociologist Max Weber, and further explored by BernardM. Bass in the early 1980s.Basic Assumptions of Transactional Leadership People perform their best when the chain of command is definite and clear. Workers are motivated by rewards and punishments. Obeying the instructions and commands of the leader is the primary goal of the followers. Subordinates need to be carefully monitored to ensure that expectations are met.This theory bases leadership on a system of rewards and punishments. Transactionalleadership is often used in business; when employees are successful, they are rewarded;when they fail, they are reprimanded or punished.How Transactional Leadership Works-In transactional leadership, rewards and punishments are contingent upon the performance ofthe followers. The leader views the relationship between managers and subordinates as anexchange - you give me something for something in return. When subordinates perform well,they receive some type of reward. When they perform poorly, they will be punished in someway.Rules, procedures and standards are essential in transactional leadership. Followers are notencouraged to be creative or to find new solutions to problems. Research has found thattransactional leadership tends to be most effective in situations where problems are simpleand clearly-defined.While transactional leadership can be effective in some situations, it is generally consideredan insufficient and may prevent both leaders an followers from achieving their full potential.Transformational LeadershipPrepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 17
  18. 18. The concept of transformational leadership was initially introduced by leadership expert andpresidential biographer James MacGregor Burns. According to Burns, transformationalleadership can be seen when "leaders and followers make each other to advance to a higherlevel of moral and motivation." Through the strength of their vision and personality,transformational leaders are able to inspire followers to change expectations, perceptions andmotivations to work towards common goals.Later, researcher Bernard M. Bass expanded upon Burns original ideas to develop what istoday referred to as Bass‘ Transformational Leadership Theory. According to Bass,transformational leadership can be defined based on the impact that it has on followers.Transformational leaders, Bass suggested, garner trust, respect and admiration from theirfollowers.The Components of Transformational LeadershipBass also suggested that there were four different components of transformational leadership. 1. Intellectual Stimulation – Transformational leaders not only challenge the status quo; they also encourage creativity among followers. The leader encourages followers to explore new ways of doing things and new opportunities to learn. 2. Individualized Consideration – Transformational leadership also involves offering support and encouragement to individual followers. In order to foster supportive relationships, transformational leaders keep lines of communication open so that followers feel free to share ideas and so that leaders can offer direct recognition of each follower‘s unique contributions. 3. Inspirational Motivation – Transformational leaders have a clear vision that they are able to articulate to followers. These leaders are also able to help followers experience the same passion and motivation to fulfill these goals. 4. Idealized Influence – The transformational leader serves as a role model for followers. Because followers trust and respect the leader, they emulate this individual and internalize his or her ideals.Emotional Intelligence- Leaders forge relationships with groups or individuals. Theindividual relationships tend to be more intellectual but, in both cases, good leader‘s exhibithighly developed ―emotional‖ or ―social intelligence.‖ They are self-aware, socially skilled,disciplined and able to deal capably with other people. People with emotional intelligencethink before they act, focus on their goals, understand other people‘s emotions and have theskill to establish common grounds for discussion.In this instance, scholars concluded that even the most talented executive cannot succeedWithout emotional intelligence. Some major corporations that wanted to encourage futureleaders in their ranks hired psychologists to sort out leadership characteristics.The psychologists found that leaders are smart and have solid, long-term vision, but that theiremotional intelligence is twice as important as either intellect or vision. One study shows thatcompanies where the employees have high emotional intelligence earn higher profits. Thereverse is also demonstrably true. A workforce marked by a lack of emotional intelligence canmean lower profits.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 18
  19. 19. Leaders can learn emotional intelligence. People who know their limitations can plan to avoidstressful situations or to work around events that tug at their weaknesses. One on- onetraining is the best way to learn how to improve your emotional intelligence.Such training focuses on correcting undesirable social habits, such as acting impulsively orbeing a bad listener. Because this process requires people to correct brain-based emotionaldrives, it is time-consuming.TrustA positive expectation that another will not—through words, actions, or decisions—actopportunistically. Trust is a history-dependent process (familiarity) based on relevant butlimited samples of experience (risk).Dimensions of Trust  Integrity – Honesty and truthfulness.  Competence – An individual‘s technical and interpersonal knowledge and skills.  Consistency – An individual‘s reliability, predictability, and good judgment in handling situations.  Openness – Reliance on the person to give you the full truth.  Loyalty – The willingness to protect and save face for another person.Types of Trust 1- Deterrence-based Trust- Trust based on fear of reprisal if the trust is violated. 2- Knowledge-based Trust- Trust based on behavioral predictability that comes from a history of interaction. 3- Identification-based Trust- Trust based on a mutual understanding of each other‘s intentions and appreciation of the other‘s wants and desires.Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 19
  20. 20. Prepared By- Mrs. Neha Rathi Faculty of KKPIMS Page 20

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