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  1. 1. Leadership<br />
  2. 2. Story<br />A group of workers and their leaders are set a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port. <br />The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible. <br />Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.<br />
  3. 3. Leadership Story<br />And shouts down to the assembled group below…<br />“Wrong Way!”<br />(Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People” Simon & Schuster).<br />“Management is doing things right, leadership is doing the right things”<br /> (Warren Bennis and Peter Drucker)<br />
  4. 4. Definition<br />The ability to positively influence people and systems to have a meaningful impact and achieve results.<br /><ul><li>Leading People
  5. 5. Influencing People
  6. 6. Commanding People
  7. 7. Guiding People</li></li></ul><li>Characteristics of Leadership<br />Leader must have followers<br />It is working relationship between leader and followers<br />Purpose is to achieve some common goal or goals<br />A leader influences his followers willingly not by force<br />Leadership is exercised in a given situation<br />Leadership is a power relationship<br />It is a continuous process<br />
  8. 8. A Question…<br />A leader need not be a manager but a manager must have many of the qualities of a good leader?????<br />Managerial Leadership<br />
  9. 9. Significance<br />Setting Goals<br />Motivating Employees<br />Building morale<br />Creating Confidence<br />Discipline<br />Developing Team-work<br />Facilitates Change<br />Representing the group<br />
  10. 10. Leadership Styles<br /><ul><li> Leader by the position achieved
  11. 11. Leader by personality, charisma
  12. 12. Leader by moral example
  13. 13. Leader by power held
  14. 14. Intellectual leader
  15. 15. Leader because of ability to accomplish things</li></li></ul><li>LeadershipManagement<br />Working in the system<br />React<br />Control risks<br />Enforce organizational rules<br />Seek and then follow direction<br />Control people by pushing them in the right direction<br />Coordinate effort<br />Provide instructions<br />Working on the system<br />Create opportunities<br />Seek opportunities<br />Change organizational rules<br />Provide a vision to believe in and strategic alignment<br />Motivate people by satisfying basic human needs<br />Inspire achievement and energize people<br />Coach followers, create self-leaders and empower them<br />
  16. 16. LeadershipManagement<br />Establishing Direction<br />Develop future vision<br />Develop change strategies to achieve vision<br />Aligning People<br />Communicate directly by words & deeds to those whose cooperation needed<br />Influence creation of coalition/teams that understand & accept vision and strategies<br />Motivating/inspiring<br />Energy to overcome barriers (ex. Political resource, bureaucratic) to change by satisfying basic needs<br />Tends to Produce<br />Change often dramatic<br />Provides potential for very useful change (ex. New products)<br />Planning/Budgeting<br />Develop detailed steps/ timetables for results<br />Allocate necessary resources<br />Organizing/Staffing<br />Develop necessary planning, staffing, delegation structures<br />Provide policies/procedures for guidance and methods/systems for monitoring<br />Control/Problem Solving<br />Monitor results vs. plan in detail<br />Identify results/plan deviations and plan and organize to correct<br />Tends to Produce<br />Order/predictability<br />Key results expected by stakeholders<br />Agenda<br />Network Development for Agenda Achievement<br />Execution<br />Outcomes<br />
  17. 17. <ul><li>The manager administers; the leader innovates.
  18. 18. The manager maintains; the leader develops.
  19. 19. The manager accepts reality; the leader investigates it.
  20. 20. The manager focuses on systems and structures; the leader focuses on people.
  21. 21. The manager relies on control; the leader inspires trust.
  22. 22. The manager has a short-range view; the leader has a long-range perspective.
  23. 23. The manager asks how and when; the leader asks what and why.
  24. 24. The manager has his or her eye always on the bottom line; the leader has his or her eye on the horizon.
  25. 25. The manager imitates; the leader originates.
  26. 26. The manager accepts the status quo; the leader challenges it.
  27. 27. The manager is the classic good soldier; the leader is his or her own person.</li></li></ul><li>Leadership Traits<br />Intelligence<br />More intelligent than non-leaders<br />Scholarship<br />Knowledge<br />Being able to get things done<br />Physical<br />Doesn’t seem to be correlated<br />Personality <br />Verbal facility <br />Honesty <br />Initiative<br />Aggressive<br />Self-confident<br />Ambitious<br />Originality<br />Sociability<br />Adaptability <br />
  28. 28. Leadership styles<br />Autocratic:<br /><ul><li> Leader makes decisions without reference to anyone else
  29. 29. High degree of dependency on the leader
  30. 30. Can create de-motivation and alienation of staff
  31. 31. May be valuable in some types of business where decisions need to be made quickly and decisively</li></li></ul><li>Democratic:<br />Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation<br />Consultative: process of consultation before decisions are taken<br />Persuasive: Leader takes decision and seeks to persuade others that the decision is correct<br />
  32. 32. Laissez-Faire:<br />‘Let it be’ – the leadership responsibilities are shared by all<br />Can be very useful in businesses where creative ideas are important<br />Can be highly motivational, as people have control over their working life<br />Can make coordination and decision making time-consuming and lacking in overall direction<br />Relies on good team work<br />Relies on good interpersonal relations<br />
  33. 33. Paternalistic:<br /><ul><li> Leader acts as a ‘father figure’
  34. 34. Paternalistic leader makes decision but may consult
  35. 35. Believes in the need to support staff</li></li></ul><li>LeadershipTheories<br />Trait Theory<br />Early on, it was thought that leaders were born with<br /> inherent physiological and personality traits<br />Age<br />Height<br />Intelligence<br />Academic achievements <br />Stogdill (1974) – identified several general factors that differentiate leaders from non-leaders…<br />
  36. 36. LeadershipTheories<br />Trait Theory (continued)<br />Capacity: problem-solving capabilities, making judgments and working hard<br />Achievements: accomplishments such as academic record, knowledge and sports<br />Responsibility: dependability, reliability, self-drive, perseverance, aggressiveness and self-confidence<br />Participation and involvement: highly developed social interaction, popularity, swift adaptation to changing situations, and easier cooperation compared to non-leaders <br />Socio-economic status: effective leaders usually belong to higher socio-economic classes<br />
  37. 37. Leadership Theories<br />Behavioral Theories<br />Ohio State studies focused on task and social behavior of leaders<br />Identified two dimensions of leader behavior<br />Initiating Structure: role of leader in defining his/her role and roles of group members<br />Consideration:leader’s mutual trust and respect for group members’ ideas and feelings<br />Two different behavioral theories:<br /><ul><li>Role Theory
  38. 38. Managerial Grid</li></li></ul><li>Leadership Theories<br />Role Theory<br />Assumptions about leaders’ in organizations are shaped by culture, training sessions, modeling by senior managers, etc.<br />People define roles for themselves and others based on social learning and reading.<br />People form expectations about the roles that they and others will play.<br />People subtly encourage others to act within the role expectations they have for them.<br />People will act within the roles they adopt.<br />
  39. 39. Leadership Theories<br />Managerial Grid<br />Developed by Drs. Robert R. Blake and Jane S. Mouton<br />Believed managers have different leadership styles which led to two different dimensions of leadership:<br />Concern for Production: manager who is task-oriented and focuses on getting results or accomplishing the mission (X-axis of grid)<br />Concern for People: manager who avoids conflicts and strives for friendly relations with subordinates (Y-axis of grid)<br />
  40. 40. Leadership Theories<br />Managerial Grid (continued)<br />9<br />8<br />7<br />6<br />5<br />4<br />3<br />2<br />1<br />**manager’s goal is 9,9**<br />1 2 3 4 5 6 7 8 9 <br />
  41. 41. Leadership Theories<br />Participative Theories<br />Assumes the following<br />Involvement in decision-making improves the understanding of the issues involved and the commitment of those who must carry out the decisions.<br />People are less competitive and more collaborative when they are working on joint goals.<br />Several people deciding together make better decisions than one person alone.<br />Two different participative theories:<br /><ul><li>Lewin’s leadership styles
  42. 42. Likert’s leadership styles</li></li></ul><li>Leadership Theories<br />Lewin’s Leadership styles<br />Kurt Lewin’s studies at the University of Iowa (1939)<br />Identified three different styles of leadership:<br />Autocratic: centralized authority, low participation <br />(works where input would not change decision or employee motivation, excessive styles lead to revolution)<br />Democratic: involvement, feedback <br />(appreciated by people, most effective style but problematic when there are a range of opinions)<br />Laissez-Faire: hands-off management<br /> (works when people are motivated and there is no requirement for central coordination)<br />
  43. 43. Likert’s system of Leadership<br />RensisLikert and his associates studied the patterns and styles of managers for three decades at the University of Michigan, USA, and identified a four-fold model of management systems. <br />The model was developed on the basis of a questionnaire administered to managers in over 200 organizations and research into the performance characteristics of different types of organizations. <br />The four systems of management system or the four leadership styles identified by Likert are:<br />
  44. 44. System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at the upper echelons of the hierarchy. The superior has no trust and confidence in subordinates. The decisions are imposed on subordinates and they do not feel free at all to discuss things about the job with their superior. The teamwork or communication is very little and the motivation is based on threats.<br />System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels but not at the lower levels of the organizational hierarchy. The superior has condescending confidence and trust in subordinates (master-servant relationship). Here again, the subordinates do not feel free to discuss things about the job with their superior. The teamwork or communication is very little and motivation is based on a system of rewards.<br />System 3 - Consultative: Responsibility is spread widely through the organizational hierarchy. The superior has substantial but not complete confidence in subordinates. Some amount of discussion about job related things takes place between the superior and subordinates. There is a fair amount of teamwork, and communication takes place vertically and horizontally. The motivation is based on rewards and involvement in the job.<br />System 4 - Participative: Responsibility for achieving the organizational goals is widespread throughout the organizational hierarchy. There is a high level of confidence that the superior has in his subordinates. There is a high level of teamwork, communication, and participation.<br />
  45. 45. Conclusion<br />According to RensisLikert, the nearer the behavioral characteristics of an organization approach System 4 (Participative), the more likely this will lead to long-term improvement in staff turnover and high productivity, low scrap, low costs, and high earnings, if an organization wants to achieve optimum effectiveness, then this is the ideal system<br />
  46. 46. Leadership Continuum<br />A simple model which shows the relationship between the level of freedom that a manager chooses to give to a team, and the level of authority used by the manager. As the team's freedom is increased, so the manager's authority decreases. This is a positive way for both teams and managers to develop.<br />
  47. 47.
  48. 48. Michigan Studies<br />Studies conducted by Michigan University beginning in the 1950s<br />Found 3 critical characteristics of effective leaders:<br /><ul><li>Task-oriented behavior</li></ul>Effective Leaders didn’t do the same work as their subordinates.<br /><ul><li>Relationship-oriented behavior</li></ul>Focus on task, but also on relationship with subordinates<br /><ul><li>Participative leadership</li></ul>Use a participative style, managing at the group level as well as individually <br />The role of the manager is more facilitative than directive<br />Leadership Theories<br />
  49. 49. Leadership Theories<br />Contingency Theory<br />Assumptions:<br />No one best way of leading<br />Ability to lead contingent upon various situational factors:<br />Leader’s preferred style<br />Capabilities and behaviors of followers<br />Various other situational factors<br />Effect:<br />Leaders who are successful in one situation may become unsuccessful if the factors around them change<br />
  50. 50. Leadership Theories<br />Contingency Theory: Fiedler’s Least Preferred Co-Worker (LPC) Theory<br />Assumptions:<br />Leaders prioritize between task-focus and people-focus<br />Leaders don’t readily change their style<br />Key situational factor in matching leader to situation:<br />Relationships<br />Power <br />Task structure<br />LPC Questionnaire<br />Determines leadership style by measuring responses to 18 pairs of contrasting adjectives.<br />High score: a relationship-oriented leadership style<br />Low score: a task-oriented leadership style<br />Tries to identify the underlying beliefs about people, in particular whether the leader sees others as positive (high LPC) or negative (low LPC).<br />
  51. 51. Leadership Theories<br />Findings of the Fiedler Model<br />Exhibit 17.4<br />
  52. 52. Situational Leadership<br />Situational factors (motivation, capability of followers, relationship between followers and leader) determine the best action of leader<br />Leader must be flexible to diagnosis leadership style appropriate for situation and be able to apply style<br />No one best leadership style for all situations<br />Leadership Theories<br />
  53. 53. Hersey & Blanchard’s Situational Leadership (1977)<br />Identified 4 different leadership styles based on readiness of followers<br />R1. Telling (high task/low relationship behavior)<br /><ul><li>Giving considerable attention to defining roles and goals
  54. 54. Recommended for new staff, repetitive work, work needed in a short time span
  55. 55. Used when people are unable and unwilling</li></ul>R2. Selling (high task/high relationship behavior)<br /><ul><li>Most direction given by leader encouraging people to ‘buy into’ task
  56. 56. Used when people are willing but unable</li></ul>R3. Participating (high relationship/low task behavior)<br /><ul><li>Decision making shared between leaders and followers, role of leader to facilitate and communicate
  57. 57. Used when people are able but unwilling</li></ul>R4. Delegating (low relationship/low task behavior)<br /><ul><li>Leader identifies problem but followers are responsible for carrying out response
  58. 58. Used if people are able and willing</li></ul>Leadership Theories<br />
  59. 59. Leadership Theories<br />Hersey & Blanchard’s Model<br />Source:Reprinted with permission from the Center for Leadership Studies. Situational Leadership® is a registered trademark of the Center for Leadership Studies. Escondido, California. All rights reserved.<br />
  60. 60. Summary of Leadership Theories<br />
  61. 61. Transactional Vs. TransformationalLeadership<br />
  62. 62. Queries…????<br />