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  1. 1. LEADERSHIP CSH Pharma group
  2. 2. A Challenge Please write a One Sentence Definition for LEADERSHIP.
  3. 3. <ul><li>the leader; </li></ul><ul><li>the employees; and </li></ul><ul><li>the demands of the situation. </li></ul>Leadership Leadership is a complex process involving three dimensions:
  4. 4. What is leadership? <ul><ul><li>Leadership is the initiation of action to solve a problem </li></ul></ul><ul><ul><li>Leadership is directing or controlling the activity of a group </li></ul></ul><ul><ul><li>Leadership is influencing the activities of group as it moves toward </li></ul></ul><ul><ul><li>its goals. </li></ul></ul><ul><ul><li>A person who leads others along a way; a guide </li></ul></ul><ul><li>. </li></ul><ul><li>Leadership is power, But power is not necessarily leadership. </li></ul><ul><li>Power is the ability to get others to do what you want them to do. </li></ul>
  5. 5. Sources of Power and Leadership Power from Personal Characteristics YES NO Power from The Position YES NO Officer Formal Leader Follower Informal Leader
  6. 6. Leadership : The exercise of influence by one member of a group or organization over other members to help the group or organization achieve its goals. Leader : An individual who is able to influence group or organizational members to help the group or organization achieve its goals. Leader Effectiveness : The extent to which a leader helps a group or organization to achieve its goals. Leadership - Key Terms
  7. 7. Formal and Informal Leaders <ul><li>Formal Leader : A member of an organization who is given authority to influence other organizational members to achieve organizational goals . </li></ul><ul><li>Informal Leader : An organizational member with no formal authority to influence others, but who has special skills or talents to influence others. </li></ul>
  8. 8. Early Approaches to Leadership The TRAIT THEORY seeks to identify personal characteristics that effective leaders possess. The BEHAVIOR THEORY focuses on the behaviors that effective leaders engage in.
  9. 9. Leadership Trait Theory <ul><li>Sir Francis Galton </li></ul><ul><ul><li>- One of the earliest leadership theorists </li></ul></ul><ul><ul><li>- Wrote “Hereditary Genius” pub. 1869 </li></ul></ul><ul><ul><li>- Believed leadership qualities were genetic </li></ul></ul><ul><li>This theory assumes physical and psychological characteristics </li></ul><ul><li>account for effective leadership </li></ul><ul><ul><li>- Basic intelligence </li></ul></ul><ul><ul><li>- Clear and strong values </li></ul></ul><ul><ul><li>- High personal energy </li></ul></ul>
  10. 10. <ul><li>Edwin Gheselli identified six traits for effective leadership: </li></ul><ul><ul><li>- Need for achievement </li></ul></ul><ul><ul><li>- Intelligence </li></ul></ul><ul><ul><li>- Decisiveness </li></ul></ul><ul><ul><li>- Self-confidence </li></ul></ul><ul><ul><li>- Initiative </li></ul></ul><ul><ul><li>- Supervisory ability </li></ul></ul>
  11. 11. Trait Theory Applied <ul><li>Paul Von Hindenburg </li></ul><ul><ul><li>First Chancellor of Germany, post WWI </li></ul></ul><ul><ul><li>Used the trait theory for selecting and developing military leaders </li></ul></ul><ul><li>Primary qualities for leadership ability </li></ul><ul><ul><li>Intelligence (bright vs. dull) </li></ul></ul><ul><ul><li>Vitality (energetic vs. lazy ) </li></ul></ul>
  12. 12. Examples of Trait Theory <ul><li>Bright, lazy — staff officer </li></ul><ul><li>Energetic, dull — frontline soldier </li></ul><ul><li>Bright, energetic — field commander </li></ul><ul><li>Lazy, dull — left to find their own level of </li></ul><ul><li>effectiveness </li></ul>
  13. 13. Criticisms of the Trait Approach <ul><li>Some effective leaders do not possess all of these traits, </li></ul><ul><li>and some leaders who possess these traits are not effective. </li></ul><ul><li>For at least some traits, it is not clear which comes first, </li></ul><ul><li>being in a leadership position or possessing the trait in </li></ul><ul><li>question. </li></ul><ul><li>The trait approach provides little guidance concerning what </li></ul><ul><li>advice or training to give current or soon-to-be leaders. </li></ul><ul><li>The approach ignores the situation in which leadership takes </li></ul><ul><li>place. </li></ul>
  14. 14. <ul><li>In the 1930s, emphasis on behaviorism moved researchers </li></ul><ul><li>in the direction of leadership behavior </li></ul><ul><ul><li>Kurt Lewin trained assistants in behaviors indicative of three leadership styles: </li></ul></ul><ul><ul><ul><li>Autocratic : tight control of group activities, decisions </li></ul></ul></ul><ul><ul><ul><li>made by the leader </li></ul></ul></ul><ul><ul><ul><li>Democratic : group participation, majority rule </li></ul></ul></ul><ul><ul><ul><li>Laissez-faire : little activity of any type by the leader </li></ul></ul></ul>Leadership Behavior Theory
  15. 15. <ul><li>In the 1940s, research focused on leader behaviors </li></ul><ul><ul><li>- Assumed that leaders take distinct actions </li></ul></ul><ul><li>Ralph Stogdill at Ohio State University </li></ul><ul><li>Helped develop the Leader Behavior Description Questionnaire </li></ul><ul><ul><li>(LBDQ) </li></ul></ul><ul><li>Respondents described leaders’ behavior in two dimensions: </li></ul><ul><ul><ul><li>Initiating structure </li></ul></ul></ul><ul><ul><ul><li>Showing consideration </li></ul></ul></ul>
  16. 16. <ul><li>Findings of a Leader Behavior Description Questionnaire (LBDQ) study: </li></ul><ul><ul><li>The Democratic style was more beneficial for group performance </li></ul></ul><ul><ul><li>The leader’s behavior impacted the performance of followers </li></ul></ul>
  17. 17. Initiating Structure <ul><li>Leaders taking action to define the: </li></ul><ul><ul><li>- Relationship between themselves and staff </li></ul></ul><ul><ul><li>Role each staff member will assume </li></ul></ul><ul><li>Measures of initiating structure: </li></ul><ul><ul><li>- Trying out new ideas </li></ul></ul><ul><ul><li>- Encouraging slow workers to work harder </li></ul></ul><ul><ul><li>- Meeting deadlines </li></ul></ul><ul><ul><li>- Meeting at scheduled times </li></ul></ul><ul><ul><li>- Making sure everyone works to capacity </li></ul></ul>
  18. 18. Showing Consideration <ul><li>Showing consideration means… </li></ul><ul><li>- taking action to develop trust, respect, support, and </li></ul><ul><li>friendship with subordinates </li></ul><ul><li>Measures of consideration: </li></ul><ul><ul><li>- Being helpful </li></ul></ul><ul><ul><li>- Treating all people as equals </li></ul></ul><ul><ul><li>- Willing to make changes </li></ul></ul><ul><ul><li>- Standing behind subordinates </li></ul></ul><ul><ul><li>- Doing things to make group membership pleasant </li></ul></ul>
  19. 19. Leadership Behavior Theory <ul><li>Rensis Likert at the University of Michigan conducted </li></ul><ul><li>leadership studies </li></ul><ul><ul><li>- Studied leaders’ behaviors related to worker motivation and </li></ul></ul><ul><ul><li>group performance </li></ul></ul><ul><ul><li>- Identified two dimensions of behavior: </li></ul></ul><ul><ul><ul><li>Job centered (initiating structure) </li></ul></ul></ul><ul><ul><ul><li>Employee centered (showing consideration) </li></ul></ul></ul>
  20. 20. <ul><li>Robert Blake and Jane Mouton </li></ul><ul><ul><li>- Developed a managerial grid reflecting Ohio and Michigan dimensions </li></ul></ul><ul><ul><li>- The ideal leader has high concern for both production and people </li></ul></ul>
  21. 21. Managerial Grid <ul><li>Major management styles and concerns: </li></ul><ul><ul><li>- Impoverished : low production, low people </li></ul></ul><ul><ul><li>- Sweatshop : high production, low people </li></ul></ul><ul><ul><li>- Country Club : high people, low production </li></ul></ul><ul><ul><li>- Status Quo : medium production, medium people </li></ul></ul><ul><ul><li>Fully Functioning : high production, high people </li></ul></ul><ul><li>Two additional styles </li></ul><ul><ul><li>- Paternalistic: high concern for production, use of rewards for compliance and loyalty </li></ul></ul><ul><ul><li>- Opportunistic: promotes his/her own advancement </li></ul></ul>
  22. 22. Behavior Theory Applied <ul><li>Margot Morrell documented Ernest Shackleton’s endurance expedition and the lessons he learned: </li></ul><ul><ul><li>- Leading by example </li></ul></ul><ul><ul><li>- Communicating a vision </li></ul></ul><ul><ul><li>- Keeping morale up </li></ul></ul><ul><ul><li>- Maintaining a positive attitude </li></ul></ul><ul><li>Successful leaders execute these points </li></ul>
  23. 23. Criticisms of the Behavior Approach <ul><li>The relationship between leader behaviors </li></ul><ul><li>and subordinate performance and satisfaction </li></ul><ul><li>are not necessarily clear-cut. </li></ul><ul><li>The behavior approach ignores the situation </li></ul><ul><li>in which leadership takes place. </li></ul>
  24. 24. Leadership Contingency Theory <ul><li>Both trait and behavioral theories tried to identify the one best leader or style for all situations </li></ul><ul><ul><li>By the late 1960s, it became apparent that there is no </li></ul></ul><ul><ul><li>such </li></ul></ul><ul><ul><li>universal answer </li></ul></ul><ul><li>Leadership effectiveness depends on a combination of the: </li></ul><ul><ul><li>- Leader </li></ul></ul><ul><ul><li>- Followers </li></ul></ul><ul><ul><li>- Situational factors </li></ul></ul>
  25. 25. Leader Styles <ul><li>According to Fiedler, a leader’s style is an enduring </li></ul><ul><li>personal characteristic. Fiedler created the least </li></ul><ul><li>preferred coworker (LPC) scale to measure it. </li></ul><ul><li>Leaders who are relationship-oriented want to be liked </li></ul><ul><li>by and to get along well with their subordinates. </li></ul><ul><ul><li>- Also called High LPC leaders because they tend to </li></ul></ul><ul><ul><li>describe their LPC in relatively positive terms. </li></ul></ul><ul><li>Leaders who are task-oriented want their subordinates </li></ul><ul><li>to perform at a high level and accomplish all of their </li></ul><ul><li>assigned tasks. </li></ul><ul><ul><li>- Also called Low LPC leaders because they tend to </li></ul></ul><ul><ul><li>describe their LPC in relatively negative terms . </li></ul></ul>
  26. 26. Situational Characteristics <ul><li>According to Fiedler, three characteristics determine how favorable situations are for leading. </li></ul><ul><li>Leader-Member Relations : The relationship between a leader and his or her followers. </li></ul><ul><ul><li>- Situation is favorable for leading when relations are good. </li></ul></ul><ul><li>Task Structure : The extent to which the work to be performed by a group is clearly defined. </li></ul><ul><ul><li>- Situation is favorable for leading when structure is high. </li></ul></ul><ul><li>Position Power : The amount of formal authority a leader has. </li></ul><ul><ul><li>- Situation is favorable for leading when power is high. </li></ul></ul>
  27. 28. Matching Style and Situation <ul><li>High LPC leaders are most effective in </li></ul><ul><li>situations that are moderately favorable </li></ul><ul><li>for leading. </li></ul><ul><ul><li>- Octants IV, V, VI, and VII </li></ul></ul><ul><li>Low LPC leaders are most effective in </li></ul><ul><li>situations that are very favorable or very </li></ul><ul><li>unfavorable for leading. </li></ul><ul><ul><li>- Octants I, II, III, and VIII </li></ul></ul>
  28. 29. Path-Goal Theory A theory which describes how leaders can motivate their followers to achieve group and organizational goals and the kinds of behaviors leaders can engage in to motivate followers.
  29. 30. <ul><li>Effective leaders motivate their followers to achieve group and </li></ul><ul><li>organizational goals. </li></ul><ul><li>Effective leaders make sure that they have control over </li></ul><ul><li>outcomes their subordinates desire. </li></ul><ul><li>Effective leaders reward subordinates for performing at a high </li></ul><ul><li>level or achieving their work goals by giving them desired </li></ul><ul><li>outcomes. </li></ul><ul><li>Effective leaders raise their subordinates’ beliefs about their </li></ul><ul><li>ability to achieve their work goals and perform at a high level. </li></ul><ul><li>In determining how to treat their subordinates and what </li></ul><ul><li>behaviors to engage in, effective leaders take into account </li></ul><ul><li>their subordinates’ characteristics and the type of work they </li></ul><ul><li>do. </li></ul>
  30. 31. Path-Goal Theory: Guidelines <ul><li>Determine what outcomes subordinates are trying to </li></ul><ul><li>obtain in the workplace and make sure that you have </li></ul><ul><li>control over them. </li></ul><ul><li>Reward subordinates for performing at a high level or </li></ul><ul><li>achieving their work goals by giving them desired </li></ul><ul><li>Make sure subordinates believe that they can obtain </li></ul><ul><li>their work goals and perform at a high level. </li></ul>
  31. 32. Path-Goal Theory: Four Types of Behavior Directive behavior lets subordinates know what tasks need to be performed and how they should be performed. Supportive behavior lets subordinates know that their leader cares about their well-being and is looking out for them. Participative behavior enables subordinates to be involved in making decisions that affect them. Achievement-oriented behavior pushes subordinates to do their best. Includes setting difficult goals for followers, expecting high performance, and expressing confidence.
  32. 33. Vroom and Yetton Model <ul><li>A model that describes the different ways in which leaders can </li></ul><ul><li>make decisions and guides leaders in determining the extent to </li></ul><ul><li>which subordinates should participate in decision making. </li></ul><ul><li>The model first requires leaders to determine whether an </li></ul><ul><li>individual or a group decision needs to be made. </li></ul><ul><ul><li>- Individual decisions pertain to a single subordinate. </li></ul></ul><ul><ul><li>- Group decisions pertain to a group of subordinates </li></ul></ul>
  33. 34. Decision-Making Styles Autocratic (A) - The leader makes the decision without input from subordinates. Consultative (C) - Subordinates have some input, but the leader makes the decision. Group (G) - The group makes the decision; the leader is just another group member. Delegated (D) - The leader gives exclusive responsibility to subordinates.
  34. 35. Questions Leaders Must Ask <ul><li>Is there a quality requirement such that one solution is likely </li></ul><ul><li>to be more rational than another? </li></ul><ul><li>B. Do I have sufficient information to make a high-quality </li></ul><ul><li>decision? </li></ul><ul><li>C. Is the problem structured? </li></ul><ul><li>D. Is acceptance of decision by subordinates critical to effective </li></ul><ul><li>implementation? </li></ul><ul><li>E. If I were to make the decision by myself, is it reasonably </li></ul><ul><li>certain that it would be accepted by my subordinates? </li></ul><ul><li>F. Do subordinates share the organizational goals to be </li></ul><ul><li>attained in solving this problem? </li></ul><ul><li>G. Is conflict among subordinates likely in preferred solutions? </li></ul><ul><li>H. Do subordinates have sufficient information to make a high- </li></ul><ul><li>quality decision? </li></ul>
  35. 36. Group Problems and Decisions AI. AII. CI. CII. GII. Leader solves the problem or makes the decision using information available at the time. No outside input. The leader obtains the necessary information from subordinates. The leader makes the decision. The leader shares the problem with the relevant subordinates individually and gets their ideas and suggestions without bringing them together as a group. The leader makes the decision. The leader shares the problem with subordinates as a group, obtaining their ideas and suggestions. The leader makes the decision. The leader shares the problem with subordinates as a group, does not try to influence the group, and is willing to accept and implement any solution that has the support of the entire group. Least Participative Most Participative
  36. 37. Individual Problems and Decisions AI. AII. CI. CII. GII. The leader solves the problem or makes the decision using information available at the time. No outside input. The leader obtains the necessary information from the subordinate involved in the decision. The leader makes the decision. The leader shares the problem with the subordinate and asks for ideas and suggestions. The leader makes the decision. The leader shares the problem with the subordinate, and together they analyze the problem and arrive at a mutually agreeable solution. The leader delegates the problem to the subordinate, provides any relevant information, but gives the subordinate responsibility for solving the problem. Least Participative Most Participative
  37. 38. Leader-Member Exchange Theory <ul><li>A theory that describes the different kinds of relationships that may develop between a leader and a follower and what the leader and the follower give to and receive back from the relationship. </li></ul><ul><li>Leader-follower Dyad : The relationship between a </li></ul><ul><li>leader and a follower. </li></ul><ul><li>In-group : A leader-follower dyad characterized by </li></ul><ul><li>mutual trust, commitment, and involvement. </li></ul><ul><li>Out-group : A leader-follower dyad in which the leader </li></ul><ul><li>relies on his or her formal authority to influence the </li></ul><ul><li>subordinate and the subordinate is expected to perform </li></ul><ul><li>his or her job in an acceptable manner. </li></ul>
  38. 39. Substitutes and Neutralizers <ul><li>Leadership Substitute : Something that acts in </li></ul><ul><li>place of a formal leader and makes leadership </li></ul><ul><li>unnecessary (functional). </li></ul><ul><ul><li>- Intrinsic motivation of subordinates </li></ul></ul><ul><ul><li>- Skill level of subordinates and nature of work </li></ul></ul><ul><li>Leadership Neutralizer : Something that </li></ul><ul><li>prevents a leader from having any influence and </li></ul><ul><li>negates a leader’s efforts (dysfunctional). </li></ul><ul><ul><li>- Lack of ability to reward/punish </li></ul></ul><ul><ul><li>- Physical distance between leader and workers </li></ul></ul>
  39. 40. Transformational Leadership <ul><li>Charismatic leaders </li></ul><ul><ul><li>- Inspire others and bring forth loyalty </li></ul></ul><ul><li>Max Weber’s definition of charisma: </li></ul><ul><ul><li>- A quality that sets an individual apart from ordinary people </li></ul></ul><ul><ul><li>- To be treated as if endowed with exceptional powers or qualities </li></ul></ul><ul><li>Charisma is a gift or power of leadership </li></ul>
  40. 41. Theory of Charismatic Leadership <ul><li>This theory was published by R.J. House in 1976 </li></ul><ul><li>Charismatic leaders exhibit a </li></ul><ul><li>combination of personal characteristics and behavior: </li></ul><ul><ul><li>- Dominant </li></ul></ul><ul><ul><li>- Ambitious </li></ul></ul><ul><ul><li>- Self-confident </li></ul></ul><ul><ul><li>- Sense of purpose </li></ul></ul>
  41. 42. Behaviors of Charismatic Leaders <ul><li>Charismatic leaders… </li></ul><ul><ul><li>- Are role models </li></ul></ul><ul><ul><li>- Demonstrate ability that elicits respect </li></ul></ul><ul><ul><li>Have ideological goals with moral overtones </li></ul></ul><ul><ul><li>- Communicate high expectations and show </li></ul></ul><ul><ul><li>confidence in meeting them </li></ul></ul><ul><ul><li>- Ignite the motives of followers </li></ul></ul><ul><li>Types of motives… </li></ul><ul><ul><li>Affiliation, power, and achievement </li></ul></ul>
  42. 44. Transformational Leadership <ul><li>Charismatic leaders emerge in every walk of life </li></ul><ul><ul><li>-Football coach Vince Lombardi generated respect and </li></ul></ul><ul><ul><li>following of others through charisma </li></ul></ul><ul><ul><ul><li>He cared </li></ul></ul></ul><ul><ul><ul><li>He worked hard </li></ul></ul></ul><ul><ul><ul><li>He knew the right answers </li></ul></ul></ul><ul><ul><ul><li>He believed </li></ul></ul></ul><ul><ul><ul><li>He kept the bar high </li></ul></ul></ul><ul><ul><ul><li>He knew people </li></ul></ul></ul>
  43. 45. <ul><li>According to James MacGregor Burns, “charisma” has overlapping meanings : </li></ul><ul><ul><li>- Leaders’ magical qualities </li></ul></ul><ul><ul><li>- An emotional bond between the leader and the led </li></ul></ul><ul><ul><li>- Dependence on a powerful figure by the masses </li></ul></ul><ul><ul><li>- Assumption that a leader is omniscient and virtuous </li></ul></ul><ul><ul><li>- Popular support for a leader that verges on love </li></ul></ul>
  44. 46. <ul><li>Transformational leaders raise aspirations </li></ul><ul><li>and transform individuals through : </li></ul><ul><ul><li>- Optimism </li></ul></ul><ul><ul><li>- Charm </li></ul></ul><ul><ul><li>- Intelligence </li></ul></ul><ul><ul><li>- Other personal qualities </li></ul></ul>
  45. 47. <ul><li>Transformational leadership was first discussed by </li></ul><ul><li>J. V. Downton </li></ul><ul><li>However, identification of these leadership types is </li></ul><ul><li>credited to James MacGregor Burns : </li></ul><ul><ul><li>- Transformational leadership </li></ul></ul><ul><ul><li>- Transactional leadership </li></ul></ul>
  46. 48. Transformational Vs Transactional <ul><li>Transformational leaders </li></ul><ul><ul><li>Focus on the potential relationship between the leader </li></ul></ul><ul><ul><li>and the followers </li></ul></ul><ul><ul><li>Engage the full person of the follower </li></ul></ul><ul><ul><li>Tap the motives of the followers </li></ul></ul><ul><li>Transactional leaders </li></ul><ul><ul><li>Focus on exchanges between leaders and followers </li></ul></ul><ul><ul><li>Emphasize exchanging one thing for another </li></ul></ul>
  47. 49. <ul><li>Able to handle the boss or other managers. </li></ul><ul><li>Able to manage time wisely -- can establish priorities and not get swamped down by minor details. </li></ul><ul><li>Results oriented: &quot;I do not care how you do it. Just do it.“ </li></ul><ul><li>Able to read between the lines. People do not always tell you everything -- how they say something is often as important as what they say. </li></ul><ul><li>A good example for employees. They cannot break the rules and expect employees to adhere to them. </li></ul><ul><li>Able to handle emergencies. </li></ul>Effective Leadership Checklist
  48. 50. <ul><li>Firm, yet fair -- a very difficult combination. </li></ul><ul><li>Able to be close to employees and still be the boss – </li></ul><ul><li>particularly difficult when managing friends and former peers. </li></ul><ul><li>Effective at handling problem employees. These tough cases </li></ul><ul><li>will consume great amounts of supervisory time and energy. </li></ul><ul><li>Decisive even in highly ambiguous situations. Supervisors should not be paralyzed into inaction due to a lack of information. </li></ul><ul><li>Politically skilled. </li></ul>Effective Leadership Checklist
  49. 51. <ul><li>Able to use authority wisely. Too much use of authority and you are a tyrant; too little and you are a cream puf </li></ul><ul><li>Patient. </li></ul><ul><li>Good at handling stress. They must resist taking job-related stress home since this can damage ones family/social life. </li></ul><ul><li>Motivated. They have to like the supervisory job in spite of all its problems and have the will to manage. </li></ul>Effective Leadership Checklist
  50. 52. Brain storming session Leaders are born or made?
  51. 53. THANK YOU