Leadership (principles of Management)

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Leadership (principles of Management)

  1. 1. 2009 Leadership "Leadership, like swimming, cannot be learned by reading about it."- Henry Mintzberg Principles of Management assignment By: Maha H
  2. 2. TABLE OF CONTENTSSerial Topic Page numbernumber 1. What is Leadership? 3 2. Qualities or Trait approach 4 3. Behavioral approach 5  Autocratic leadership style  Democratic Leadership style  Laissez-faire leadership style 4. Contingency approach 9 5. References 10 2
  3. 3. "Leadership, like swimming, cannot be learned by reading about it - Henry MintzbergLeadership is the process of directing and influencing a group of people. Leaders should have the ability toinfluence members of an organization to work towards achieving goals, being an effective leader can beextremely challenging. Leaders are those people who influence others and possess managerial authority. Self-study, education, training, and experience play a major role in developing good leaders, as they are not born,but are made.The leader should be honest and fair in what ever he does in order to gain trust of his employees. The leadershould possess energy and display a contagious positive attitude to get the employees sold on their vision asemployees want a strong vision before following the leader’s directions, thus, making sure that they do notget stuck in a dead end company which is heading nowhere or is going in the wrong direction. Therefore, fora leader it’s very important to satisfy his employee’s needs as they play an important role in getting theorganization to achieve its goals.Leaders are often referred as being charismatic people who have ‘something about them’ that makes themstand out from the others. Leaders are people, who are able to express themselves fully. They know whatthey want, why they want it, and how to communicate what they want to others, in order to gain co-operationand support to achieve their goals.There are three types of approaches found by the researchers that play a major role in having a goodleadership within the firm. Qualities or traits approach Behavior approach Contingency approach 3
  4. 4.  Qualities or traits approach- the trait approach is where it is argued that people are born with certain character traits that make them exceptional. Traits are distinguishing qualities or characteristics of a person, while character is the total sum of these traits. There are infinite personality traits, far too many to be discussed here therefore we will focus on a few that are crucial for a leader. “Waste no more time arguing what a good man should be. Be one.” Marcus AureliusTraits can be classified as follows: Honesty and trustworthiness – The leader should display sincerity, integrity, and candor in all their actions as illusory behavior will not inspire trust. Competent – The leader should base their actions on reasonable and moral principles but not making decisions based on childlike emotional desires or feelings. Forward-looking -The leader should set goals after having a vision of the future, should be able to sense changes and then should be able to respond to the changes .Otherwise, when change arises it may result in ineffective leadership. Inspiring – The leader should display confidence in all that he does as positive self image, backed up with effective aspirations and genuine ability can often result in effective leaders. On the other hand, it is argued that leaders may fail to lead because they might get hindered in short term activities. Intelligent – The leaders should be out of the ordinary, well read, expert in a particular field, informative and articulate, or else they may not be able to lead the organization effectively. Fair-minded – The leader should treat everyone fairly fair treatment thus displaying empathy by being sensitive to the feelings, values, interests, and well-being of others, as prejudice is the enemy of justice. Broad-minded – The leader should be broad minded, thus seeking diversity. Courageous – The leader should have the persistence to accomplish a goal, regardless of the seemingly impossible obstacles. Also, an effective leader should display confidence and calmness even when under stress. Straightforward – The leader must make sound judgment to make good decisions at the exact right time and moment. Imaginative – The leaders should be smart enough to make timely and appropriate changes in their thinking, plans, and methods. Thus, showing creativity by being innovative i.e. thinking of new and better goals, ideas, and also devoting to suggest radical solutions, making sure that important things are done on time to result in the rise of standards. 4
  5. 5.  Behavioral approachThis approach outlines the different leadership approaches used by the leaders in the organization. Aleadership style is the way the leader acts with his employees. The choice of leadership style is crucial to thesuccess of a leader. There are different types of leadership styles that the leaders usually follow, some of themost commonly used ones are listed below:“You dont get everything you want. A dictatorship would be a lot easier. So long as long as Im thedictator.”- George Bush  Autocratic LeadershipAutocratic leadership is one where managers centralize authority, makes all the decisions, set objectives,allocates tasks and insists on obedience. In other words it is an extreme form of transactional leadership,where the leader plays a dominating role by not taking employees views into account. The employees areonly given few opportunities at times for making suggestions. This style is actually considered to be an oldfashioned technique but some leaders still follow this technique.E.g. 5
  6. 6. Martha Stewart - Martha Stewart Living Omni media, IncMartha Stewart is a successful American businesswoman and entrepreneur. Martha Stewart Living Omnimedia, Inc (MSLO) is a leading provider of original "how-to" information by inspiring and enchantingconsumers with unique lifestyle content and with exquisitely designed high-quality products. MSLO iscomprised of four businesses mainly like publishing, internet, broadcasting and merchandising, and the blendof it allows us to cross-promote their content and products. Martha Stewart built her empire by payingpersonal attention to the depth of the details. She was conscientious, demanding and also very successful inmost of her attempts by using her autocratic management style. There are certain advantages that Marthabenefits from using style like: Reduced stress due to increased control- as she makes all the decisions and have a say ,situations can be less stressful for her as she herself have significant legal and personal responsibility for the projects and she do not have to rely on anyone else but her own self to get the job done as a person can trust his own integrity better than those of the others. Therefore, Martha does not have to face such worries about work not being got done on time. . Improved logistics of operations- having a single leader like Martha with deep involvement in many areas makes it more likely to have problems spotted in advance ,getting complicated work get done and also meeting deadlines. Faster decision making. When only a solo person such as Martha makes decisions then minimal consultation is required and decisions are tend to be made much quicker. As a result, management team can respond to changes in the business environment much more efficiently.Some industry analysts argue that it was Marthas autocratically demanding style which allowed her toflourish in such a competitive environment like the entertainment industry where as on the other hand othersargue that she might have become more successful if she hadn’t relied on the autocratic management style. 6
  7. 7. “Im not a banner. I am an encourager and a persuader and an advocate.” -John Howard  Democratic or participative LeadershipA Democratic Leadership style encourages employee’s participation to contribute into the decision makingprocess, promotes sharing and delegating of responsibilities and continual consultation. The democraticleadership style is also called the participative style. Leaders following this leadership style keep theiremployees well informed about everything that affects their work like the decision making process andproblem solving responsibilities or techniques. The employees’ morale level increases and because of thetrust they receive. As a result, they respond with cooperation and team spirit. For long periods of time,democratic leadership can produce high quality and high quantity work. The leaders also welcome feedbackon the results of initiatives and the work environment. They also encourage others to become leaders and beinvolved in the leadership development.E.gToyota Industries CorporationCompany overview:It was founded by Sakichi Toyoda a Japanese man in 1926 to manufacture and sell automobiles and toprovide financial services. The Group mainly operates through the Automotive, Financial Services and othersegments. The Automotive segment designs, manufactures, assembles and sells passenger cars and lightcommercial vehicles and also other related accessories. The finance segments do the financing of the dealersand their customers for the purchase or lease of Toyota vehicles. Other services segment provides intelligenttransport systems, encompassing car multimedia systems, information technology-based systems, on-boardintelligent systems, advanced transportation systems, transportation infrastructure and logistics systems. Theymarket their vehicles in around 170 countries or more. Their success proves their commitment to the furtherdevelopment of their businesses and the firm quest of sustained innovation and creativity. Therefore, Toyotaaims to be an ecologically sensitive car manufacturer.The leadership style that the Toyota Industries Corporation follows is Democratic. Following such type ofleadership style the company might benefit from: 7
  8. 8.  Positive work environment- A culture where the leaders delegate junior employees with a fair amount of responsibility in making decisions and doing tasks. As a result, employees are more contended, enthused to work and motivated. Successful initiatives. The process of having discussions with employees and feedback naturally results in better decision making and often proves to productive as operations can be performed more effectively. The company tends to make fewer grave mistakes and do not run into catastrophes. As the employees have close relationship with the leader, they might not get scared to report the leaders about crucial situations like for e.g. Informing the democratic leader when something is going badly wrong, while employees may not report about such situations to the autocratic leader. Creative thinking.-The free flow of ideas and an optimistic work environment gives birth to creative thinking and innovative ideas. Creative thinking is required to solve problems of any organization no matter what its nature is like.Starbucks CorporationCompany overview:Starbucks Coffee Company was founded in 1971 by three businessmen in Seattle, who had passion forcoffee. It is based originally in Seattle, Washington, United States and has 16,120 stores in 49 countries. It isconsidered as one of the largest coffee house companies in the world which sells rich brewed coffee,espresso-based hot drinks, other hot and cold drinks, snacks, pastries and other coffee related accessories andequipments. Additionally, Starbucks produces and sells bottled Frappuccino® coffee drink and a line ofpremium ice creams through its joint venture partnerships and offers a line of innovative premium teasproduced by its wholly owned subsidiary, the Tazo Tea Company. The Companys objective is to establishStarbucks as the most recognized and respected brand in the world.The type of leadership style followed by the Starbucks Corporation is Democratic. The company benefits in anumber of ways by using this style like: Increased morale level- The morale of the employees increase as they have a ‘say’ in making decisions. They feel more loyal to the organization and committed to work.As a result, they work better, effectively and efficiently. 8
  9. 9.  Reduced employee turnover-When employees feel empowered through leadership development, the employee turnover will eventually get the work to be done at time. The employees appreciate when the company invests in its leadership development plans as it is actually investing in their future. Reduction of friction and office politics.-By allowing the employees to use their ideas and getting praised for them, the company is actually reducing the amount of tension that the employees usually generate with their manager. When autocratic leaders refuse to listen to their employees, ignore their ideas and not letting them participate in other activities of the firm, they therefore invite people to grapevine and talk behind their back and attempt to undermine or supersede them.“A leader has to appear consistent. That doesnt mean he has to be consistent.”  Laissez faire or free reign leadership styleLaissez faire is French word it means ‘leave to be’ and is used by the leader who allows his employees tocarry out activities freely within the broad limit. The leader leaves the workforce to freely set objectives andwork procedures. It has a quite relaxed atmosphere but one where there are only few guidelines anddirections. The leader who follows this leadership wants their employees to develop their own skills andtalents by accepting responsibility. It can also have an adverse effect i.e. it can result in poor productivity andlack of motivation as they have little incentive to work hard. Contingency or situational approachThis leadership approach focuses on variables and circumstances that are related to the environment and alsothose which would determine which leadership style is appropriate for a particular situation. It says that it isunfeasible to determine which leadership style will be appropriate for a particular situation. Success dependson qualities of followers and other variables.Therefore, choosing an appropriate leadership style may depend on certain factors like:  Nature of the task  Organizational climate  Manager’s past experience  Expectations of superiors  Manager’s past experience  Subordinates characteristics 9
  10. 10. References:Business studies third edition by Dave Hall, Rob Jones and Carlo RaffoBusiness studies Karen Borrington and Peter Stimpsonhttp://www.mindtools.com/pages/article/newLDR_84.htm 10

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