A leader is best , when people barely know he exists…
Not so good when people obey and acclaim him.
Worst when they despise him .
But of a good leader , who talks little,
when his work is done and aim fulfilled ,
they will say : we did it ourselves.
By Lao –tzu
According to Stephen Robbins leadership" is the ability to influence a group towards the achievement of goals”.
According to Paul Heresy and Kenneth Blanchard , leadership “ is a process of influencing group activities towards accomplishment of goals in a given situation”
Besides influence, leadership has been defined in terms of group process, personality,compliances,particular behaviours, persuasion, goal achievement, interaction, role differentiations and combination of two or more .
SOME REAL ORGANIZATIONAL LEADERS
The most successful business icons has been heroic CEO’s who sit astride the giant corporations- the huge system and steers it brilliantly along .
Michel Eisner at Disney
Jack Welch at GE
Bill Gates at Microsoft
John Reed at Citicorp
Indian Business Leaders Dhirubhai Ambani with Mukesh & Anil Ambani JRD Tata with Ratan Tata The Birla Group
N.R. Narayana Murthy: Leader of Infosys
N. R. Narayana Murthy : Non-executive Chairman of the Board and Chief Mentor of Infosys Technologies Limited.
MURTHY- 5 ELEMENTS OF SUCCESS
Openness to learn: Openness to subordinate your ego to take ideas from others.
Second, meritocracy: The best ideas are adopted and implemented using data to arrive at the best decision.
Third, speed: Assuring you do things faster compared to yesterday and last quarter .
Fourth, imagination: You continually bring better ideas and better innovation to the table .
And finally, excellence in execution: That is implementation of these great ideas with a higher level of excellence today than yesterday.
LEADERS OR MANAGERS?
According to Bennis “to survive in the 21 st century, we are going to need new generations of leaders not managers
John Kotter also argues that leadership is different from management .Leadership is about coping with change and management is about coping with complexities.
“ Management is doing things right, leadership is doing the right things”
( Warren Bennis and Peter Drucker)
Characteristics of … MANAGER v/s LEADER
Focus on system & structures
Relies in control.
Short Range view.
Asks how and when.
Eyes on the bottom line.
Accept the status quo
Classic good soldier
Does things right
Focus on people.
Long range perspective.
Asks what and why.
Eyes on horizon.
Challenges the status quo.
Own person .
Does the right thing.
Some Qualities For Becoming A Successful Leader
1. Sound Health : If you are healthy you can invest energy
you can work hard without any physical discomfort
2. Managerial Ability :You should be able to plan and control the work of assistants. 3. Communication Skill :You should know what to speak, when and how. Listen in depth ! 4. Decision Making :Must possess capacity to think / analyze problems and take right decisions. 5. Motivational Ability :You should possess the skill to energize & keep the morale high. 6.Education and Training :Good academic education In depth training in chosen field of operation. 7. Intelligence and Attitude :Your intellectual capacity is sharp & approach is focused. 8. Impressive Personality : Total behavior, writing, speech, dress ,manner- give a Role Model.
LEADERSHIP STYLES : BASIC TYPES AUTOCRATIC BUREAUCRATIC DEMOCRATIC LAISSEZ FAIRE
AUTOCRATIC LEADERSHIP STYLE
This is often considered the classical approach. It is one in which the manager retains as much power and decision-making authority as possible. The managers don't consult employees nor are they allowed to give inputs.
Certainly Gen X employees have proven to be highly resistant to this management style. These studies say that autocratic leaders:
--Rely on threats and punishment to influence employees
--Do not trust employees
--Do not allow for employee input
Yet, autocratic leadership is not all bad. Sometimes it is the most effective style to use. These situations can include:
--New, untrained employees who do not know which tasks to perform or which procedures to follow
--Effective supervision can be provided only through detailed orders and instructions
--Employees do not respond to any other leadership style
--There are high-volume production needs on a daily basis
--There is limited time in which to make a decision
--A manager’s power is challenged by an employee
--The area was poorly managed
--Work needs to be coordinated with another department or organization
BUREAUCRATIC LEADERSHIP STYLE
Bureaucratic leadership is where the manager manages “by the book. Every thing must be done according to procedure and policy.
This style can be effective when:
--Employees are performing routine tasks over and over.
--Employees need to understand certain standards or procedures.
--Employees are working with dangerous or delicate equipment that requires a definite set of procedures to operate.
--Safety or security training is being conducted.
--Employees are performing tasks that require handling cash.
This style is ineffective when:
--Work habits form that are hard to break, especially if they are no longer useful.
--Employees lose their interest in their jobs and in their fellow workers.
--Employees do only what is expected of them and no more.
DEMOCRATIC LEADERSHIP STYLE
The democratic leadership style is also called the participative style as it encourages employees to be a part of the decision making. This style requires the leader to be a coach who has the final say, but gathers information from staff members before making a decision.
The democratic leadership style is most effective when:
--The leader wants to keep employees informed about matters that affect them.
--The leader wants employees to share in decision-making and problem-solving duties.
--The leader wants to provide opportunities for employees to develop a high sense of personal growth and job satisfaction.
--There is a large or complex problem that requires lots of input to solve.
--Changes must be made or problems solved that affect employees or groups of employees.
Democratic leadership should not be used when:
--There is not enough time to get everyone’s input.
--It’s easier and more cost-effective for the manager to make the decision.
--The business can’t afford mistakes.
--The manager feels threatened by this type of leadership.
--Employee safety is a critical concern
LAISSEZ FAIRE LEADERSHIP STYLE
The laissez-faire leadership style is also known as the “hands-off¨ style. It is one in which the manager provides little or no direction and gives employees as much freedom as possible.
This is an effective style to use when:
--Employees are highly skilled, experienced, and educated.
--Employees have pride in their work and the drive to do it successfully on their own.
--Outside experts, such as staff specialists or consultants are being used
--Employees are trustworthy and experienced.
This style should not be used when:
--It makes employees feel insecure at the unavailability of a manager.
--The manager cannot provide regular feedback to let employees know how well they are doing.
--Managers are unable to thank employees for their good work.
--The manager doesn’t understand his or her responsibilities and is hoping the employees can cover for him or her.
VARYING LEADERSHIP STYLE
While the proper leadership style depends on the situation, there are three other factors that also influence which leadership style to use.
1. The manager’s personal background. What personality, knowledge, values, ethics, and experiences does the manager have. What does he or she think will work?
2. The employees being supervised. Employees are individuals with different personalities and backgrounds. The leadership style managers use will vary depending upon the individual employee and what he or she will respond best to.
3. The company. The traditions, values, philosophy, and concerns of the company will influence how a manager acts.
CHANGE IN LEADERSHIP THE PROCESS THE PROBLEM THE SOLUTION SELLING THE IDEA RESENTMENT AND ILIENATION RESIGNATION ACCEPTANCE INTERNALISATION
The most challenging aspect of business is leading and managing change
The business environment is subject to fast-paced economic and social change
Modern business must adapt and be flexible to survive
Problems in leading change stem mainly from human resource management
Change Leadership Self-esteem Time 1. Immobilisation – as rumours of the change circulate, the individual feels some sense of shock and possible disbelief – so much so that they deem it worthy of doing nothing. 1 2. Minimisation: As the change becomes clearer, people try to fit in the change with their own personal position and may try to believe that it will not affect them. 2 3. Depression: as reality begins to dawn staff may feel alienated and angry, feelings of a lack of control of events overtake people and they feel depressed as they try to reconcile what is happening with their own personal situation. 3 4 4. Acceptance/letting go: The lowest point in self-esteem finally sees people starting to accept the inevitable. Fear of the future is a feature of this stage. 5 5. Testing out: Individuals begin to interact with the change, they start to ask questions to see how they might work with the change. 6 6. Search for meaning: Individuals begin to work with the change and see how they might be able to make the change work for them – self esteem begins to rise. 7 7. Internalisation: the change is understood and adopted within the individual’s own understanding – they now know how to work with it and feel a renewed sense of confidence and self esteem.
THEORIES OF LEADERSHIP THEORIES OF LEADERSHIP TRAIT THEORY BEHAVIOURAL THEORIES (IOWA LEADERSHIP STUDY,THE OHIO STATE LEADERSHIP STUDY THE UNIVERSITY OF MICHIGAN STUDIES THE MANAGERIAL GRID THEORY THE CONTINGENCY THEORY PATH GOAL THEORY OF LEADERSHIP LIKERT FOUR SYSTEM
TRAIT THEORY OF LEADERSHIP
People are born with inherited traits.
Some traits are particularly suited to leadership.
People who make good leaders have the right (or sufficient) combination of traits. Stogdill (1974) identified the following traits and skills of leaders
Adaptable to situations
Alert to social environment
Ambitious and achievement-orientated
Dominant (desire to influence others)
Energetic (high activity level)
Tolerant of stress
Willing to assume responsibility
Diplomatic and tactful
Fluent in speaking
Knowledgeable about group task
Organised (administrative ability)
Leaders can be made, rather than are born.
Successful leadership is based in definable, learnable behavior.
Imply that leaders can be trained – focus on the way of doing things
Iowa leadership studies by R.lippit and Ralph k White is a behavioural theory of leadership based on the impact of leadership styles on a group. It was experimentally found that democratic leadership lead to an overwhelming behaviour were as laissez faire lead to a worst form of aggression.
The Ohio State Leadership study: In 1945 the bureau of business research initiated a series of studies on leadership. They plotted behaviour on 2 separate axis
1. Initiating structure :the extent to which the leader is suppose to define his and his subordinates role .
2.Consideration : the extent to which a leader is suppose to have trust, regards, job relationship with is subordinates.
UNIVERSITY OF MICHIGAN STUDIES
In the Michigan university, a group of researcher also came up with 2 dimensions of leadership behavior. They are :
Employee centered: Emphasizing interpersonal relationship considered with the welfare of the subordinates
Production centered: Emphasizing task or technical aspect.
THE MANAGERIAL GRID THEORY
Robert R Blake and Jane S Mouton developed managerial grid which is very famous among leaders and manager for adopting styles . They proposed managerial grid based on two dimensions.
A. Concern for people
B. Concern for production
The scale range for each dimension range from 1 to 9 . Based on these range 5 types of basic management styles evolved .
(1,1) :Also known as impoverished managers , were leaders plays least importance to production and concern for people
(1,9) : Also known as Country club managers , the leaders have high concern for people and low concern for production
(5,5): Leaders maintains adequate performance , maintaining a balance .
(9.1):Leaders initiate autocratic control with least interference of human element
(9.9): Leaders initiate high concern for people and production , leading to maximum productivity
CONTINGENCY THEORIES OF LEADERSHIP
This model states that most appropriate style of leadership depends upon the nature of situations the leaders face. The first contingency theory was developed by Fred Feidler (1967)
He developed an instrument which was called LPC (least preferred coworker) Questionnaire.
According to him , there are 3 situational variables
Leader member relationship : The manner a leader is accepted in a group.
Task structure : One's specific ways one is required to do the job.
Leader position power: The organizational power a leader occupies
PATH GOAL LEADERSHIP THEORY
Developed by Robert House and others , the theory mainly emphasize on the path and goal concept , were a leader mainly helps his subordinates or followers on what need to be done (Goal) and how to be done (Path)
According to this theory a leader can adopt 4 styles while following the path and goal concept .They are:
LIKERTS FOUR SYSTEM THEORY
Renis Likert developed four basic system or styles of organizational leadership called the “style of management leadership”.
Exploitative Autocratic :Tries to exploit subordinates.
Benevolent Autocratic: Initiate paternalistic approach while exploiting
Participative or consultative
Democratic: Total participation and consensus by majority
FACTORS AFFECTING STYLE
Risk - decision making and change initiatives based on degree of risk involved
Type of business – creative business or supply driven?
How important change is – change for change’s sake?
Organisational culture – may be long embedded and difficult to change
Nature of the task – needing cooperation? Direction? Structure?
PROBLEMS OF LEADERSHIP IN MODERN INDUSTRY
No uniformity in attitude, personality & educational background.
Lack of transparency in decision making, provide very little scope for participation.
Unable to cope up with the fast pace of change.
Corporate Leadership in the 21st Century needs
The magnitude of change will demand:
Newer forms of leadership
Tomorrow’s corporate leaders should be:
Builders of organizational communities
The first responsibility of a leader is to define reality. The last is to say thank you. In between the two, the leader must become a servant and debtor. That sums up the progress of an artful leader.”