Leadership in organizational management


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  • Mentoring is defined as someone with more experience supporting someone with less experience. It is a way for the leadership of this generation to invest in individuals and develop future leaders. Mentoring has positive effects on both the career and the psychological functions of the individual being mentored.
  • Leaders don’t just happen to show up at the organization. They must be found and developed. When looking for leaders, it is important to understand what leadership characteristics and style will best match with your organization and find ways to identify leaders with those attributes. Once you have a leader or recognize leadership potential, it is essential to train and develop your leaders to effectively develop followers within your context.
  • Leadership is a complex function in an organization but essential for success. Individuals, groups, and organizations all need leaders, and there are many factors that define a successful leader. Each organization must assess what they need in their leader in order to be effective.
  • Leadership in organizational management

    1. 1. Leadership Group 3
    2. 2. Objectives Define leadership and contrast leadership and management. Summarize the conclusions of trait theories of leadership. Identify the central tenets and main limitations of behavioral theories. Assess contingency theories of leadership by their level of support. Compare and contrast charismatic and transformational leadership. Define authentic leadership and show why effective leaders exemplify ethics and trust. Demonstrate the role mentoring plays in our understanding of leadership. Address challenges to the effectiveness of leadership. Assess whether charismatic and transformational leadership generalize across cultures.
    3. 3. What Is Leadership? Leadership The ability to influence a group toward the achievement of a vision or set of goals.ManagementUse of authority inherentin designated formal rankto obtain compliance fromorganizational members.
    4. 4. Nonsanctioned Leadership?The ability to influence that arises outsidethe formal influence All Leaders are not Managers All Managers are not Leaders
    5. 5. Trait TheoriesTraits Theories of Leadership Traits:Leadership • Ambition and energyTheories that considerpersonality, social, physic • The desire to leadal, or intellectual traits to • Honest and integritydifferentiate leaders from • Self-confidencenonleaders. • Intelligence • High self-monitoring • Job-relevant knowledge
    6. 6. Big Five Personality FrameworkExtraversionAgreeablenessConscientiousnessEmotional StabilityOpenness to Experience
    7. 7. Strong Leaders - history
    8. 8. Trait Theories Limitations: • No universal traits found that predict leadership in all situations. • Traits predict behavior better in “weak” than “strong” situations. • Unclear evidence of the cause and effect of relationship of leadership and traits. • Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.
    9. 9. Behavioral TheoriesBehavioral Theories of LeadershipTheories proposing that specific behaviorsdifferentiate leaders from nonleaders. • Trait theory: Leaders are born, not made. • Behavioral theory: Leadership traits can be taught.
    10. 10. Ohio State StudiesInitiating StructureThe extent to which a leader islikely to define and structure hisor her role and those ofsub-ordinates in the search forgoal attainment.ConsiderationThe extent to which a leader is likely to have jobrelationships characterized by mutual trust, respectfor subordinate’s ideas, and regard for their feelings.
    11. 11. University of Michigan StudiesEmployee-Oriented LeaderEmphasizing interpersonal relations; taking apersonal interest in the needs of employees andaccepting individual differences among members.Production-Oriented LeaderOne who emphasizes technicalor task aspects of the job.
    12. 12. The Managerial Grid (Blake and Mouton)
    13. 13. Contingency TheoriesFiedler’s Contingency ModelThe theory that effective groups depend on a propermatch between a leader’s style of interacting withsubordinates and the degree to which the situationgives control and influence to the leader.Least Preferred Co-Worker (LPC)QuestionnaireAn instrument that purports tomeasure whether a person is task-or relationship-oriented.
    14. 14. LPC Scale• Used to measure a person’s leadership style• For example, it measures your style by having you describe a coworker with whom you had difficulty completing a job. (not necessarily someone you dislike, but someone with whom you least like to work with)• After you choose this person, the LPC instrument asks you to describe your coworker on 16 sets of adjectives
    15. 15. Least Preferred Coworker (LPC) ScalePleasant 8 7 6 5 4 3 2 1 UnpleasantFriendly 8 7 6 5 4 3 2 1 UnfriendlyRejecting 8 7 6 5 4 3 2 1 AcceptingTense 8 7 6 5 4 3 2 1 RelaxedCold 8 7 6 5 4 3 2 1 WarmSupportive 8 7 6 5 4 3 2 1 HostileBoring 8 7 6 5 4 3 2 1 InterestingQuarrelsome 8 7 6 5 4 3 2 1 HarmoniousGloomy 8 7 6 5 4 3 2 1 CheerfulOpen 8 7 6 5 4 3 2 1 ClosedBackbiting 8 7 6 5 4 3 2 1 LoyalUntrustworthy 8 7 6 5 4 3 2 1 TrustworthyConsiderate 8 7 6 5 4 3 2 1 InconsiderateNasty 8 7 6 5 4 3 2 1 NiceAgreeable 8 7 6 5 4 3 2 1 DisagreeableInsincere 8 7 6 5 4 3 2 1 SincereKind 8 7 6 5 4 3 2 1 Unkind
    16. 16. Scoring• Your final score is the total of the numbers you circled on the 16 scales• 57 or less = Low LPC (task motivated)• 64 or above = High LPC (motivated by relationships)
    17. 17. Defining the SituationFiedler has identified 3 situational dimensions 1.Leader-Member Relations The degree of confidence, trust, and respect subordinates have in their leader. 2. Task Structure The degree to which the job assignments are procedurized. 3.Position Power Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.
    18. 18. Findings from Fiedler Model
    19. 19. Situational Leadership Theory (SLT)A contingency theory that focuses on followers’readiness.Follower Unwilling WillingReadiness Supportive Monitoring Able Participative Leadership Styles High Task Unable and Directive Relationship Orientations
    20. 20. Path-Goal TheoryPath-Goal Theory (Robert House)The theory that it is the leader’s job to assist followersin attaining their goals and to provide them thenecessary direction and/or support to ensure that theirgoals are compatible with the overall objectives of thegroup or organization.
    21. 21. The Path-Goal Theory
    22. 22. Leader-Participation ModelLeader-Participation Model (Vroom and Yetton)A leadership theory that provides a set of rules todetermine the form and amount of participativedecision making in different situations.
    23. 23. Contingency Variables in the Revised Leader-Participation Model1. Importance of the decision2. Importance of obtaining follower commitment to the decision3. Whether the leader has sufficient information to make a good decision4. How well structured the problem is5. Whether an autocratic decision would receive follower commitment
    24. 24. 6. Whether followers “buy into” the organization’s goals7. Whether there is likely to be conflict among followers over solution alternatives8. Whether followers have the necessary information to make a good decision9. Time constraints on the leader that may limit follower involvement10. Whether costs to bring geographically dispersed members together is justified11. Importance to the leader of minimizing the time it takes to make the decision12. Importance of using participation as a tool for developing follower decision skills
    25. 25. Leader–Member Exchange Theory Leader-Member Exchange (LMX) Theory Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.© 2005 Prentice Hall Inc. All rights reserved. 11–25
    26. 26. Leader-Member Exchange Theory
    27. 27. Leader-Member Exchange (LMX) Theory • Because of time pressures, leaders form a special relationship with a small group of followers: the “in-group” • This in-group is trusted and gets more time and attention from the leader (more “exchanges”) • All other followers are in the “out-group” and get less of the leader’s attention and tend to have formal relationships with the leader (fewer “exchanges”) • Leaders pick group members early in the relationship
    28. 28. Leader-Member Exchange (LMX) Theory How groups are assigned is unclear – Follower characteristics determine group membership Leaders control by keeping favorites close • Research has been generally supportive
    29. 29. Charismatic Leadership“Certain quality of an individual personality, by virtue ofwhich he / she is set apart from ordinary people and treatedas endowed with supernatural, superhuman, or at leastspecifically exceptional power or qualities”. “Max Weber”
    30. 30. Charismatic Leadership• House’s Charismatic Leadership Theory: – Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors• Four characteristics of charismatic leaders – Have a vision – Are willing to take personal risks to achieve the vision – Are sensitive to follower needs – Exhibit behaviors that are out of the ordinary
    31. 31. Are Charismatic Leaders born / Made?• Traits and personality are related to charisma• People can be trained to exhibit charismatic behaviors • 3 step Process 1. Develop on aura of charisma by maintaining an optimistic view. 2. Draw others in by creating a bond that inspires them to follow. 3. Bring out the potential in followers by tapping into their emotions
    32. 32. How Charismatic Leaders Influence Followers • A four-step process: 1. Leader articulates an attractive vision • Vision Statement: A formal, long-term strategy to attain goals • Links past, present, and future 2. Leader communicates high performance expectations and confidence in follower ability 3. Leader conveys a new set of values by setting an example 4. Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision
    33. 33. Does effective charismatic leadership depend on the situation? Charismatic effectiveness may depend on situation – Charisma works best when: • The follower’s task has an ideological component • There is a lot of stress and uncertainty in the environment • The leader is at the upper level of the organization • Followers have low self-esteem and self-worth
    34. 34. The dark side of charismatic leadership• Dark Side of Charisma – Ego-driven charismatics allow their self- interest and personal goals to override the organization’s goals
    35. 35. Transactional and Transformational Leadership Transactional Leaders – Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements Transformational Leaders – Inspire followers to transcend their own self-interests for the good of the organization; they can have a profound and extraordinary effect on followers Not opposing, but complementary, approaches to leadership – Great transformational leaders must also be transactional; only one type is not enough for success
    36. 36. Characteristics of the Two Types of Leaders Transactional Transformational• Contingent Reward: • Idealized Influence: – Contracts exchange of rewards – Provides vision and sense of for effort, promises rewards for mission, instills pride, gains good performance, recognizes respect and trust accomplishments • Inspiration:• Management by Exception: – Communicates high expectations, uses symbols to – Active: Watches and searches focus efforts, expresses for deviations from rules and important issues simply standards, takes corrective action • Intellectual Stimulation: – Promotes intelligence, – Passive: Intervenes only if rationality, and problem solving standards are not met • Individualized• Laissez-Faire: Consideration: – Abdicates responsibilities, – Gives personal attention, avoids making decisions coaches, advises
    37. 37. The Relationship between Transformational and Transactional Leadership  These two are not opposing approaches.  They complement each other  They are not equally important  Transformational Leadership builds on Transactional Leadership  if you are a good transactional leader but do not have transformational qualities.  The best leaders are transactional and transformational.
    38. 38. Full range of Leadership model Effective Idealized Influence Inspirational Motivation Intellectual Stimulation Individualized Transformatio Consideration nal Contingent ActivePassive Reward Management by Exception Transactional Laissez - Faire Ineffective
    39. 39. How Transformational Leadership Works Leaders – More effective – More creative – Encourage those who follow them – Show greater agreement among top manager about organizational goal. – Improving performance by building consensus among group members – Able to increase the follower efficiency
    40. 40. How Transformational Leadership Works…… Response of leaders in Organization - Greater decentralization - Manager have propensity to take risk - Compensation plans geared toward long term result - Facilitate corporate entrepreneurship.
    41. 41. Evaluation of Transformational Leadership Transformational Leadership theory is not perfect 4 I’s in transformational leadership are not always superior in effectiveness to transactional leadership. It is more strongly correlated than transactional leadership with, 1. Lower turnover rates 2. Higher productivity 3. Lower employee stress and burnout 4. Higher employee satisfaction
    42. 42. Transformational Leadership versus Charismatic Leadership Charismatic Leadership – Want followers to adopt charismatic world and go no further Transformational leadership – Attempt to instill in followers the ability to question not only established views but eventually those established by leaders. many researchers believes transformational is broader than charismatic leadership. Leader score is high in both leadership. Therefore, in practice they may be roughly equivalent.
    43. 43. Authentic Leadership Authentic leaders know who they are, know what they believe in value, and act on those values and beliefs openly and candidly
    44. 44. Ethics and Leadership Ethical Leaders Unethical Leaders Treat followers effective Socialized Charismatic Leadership leadership that conveys other centered (not self centered) values by leaders who model ethical conduct
    45. 45. Trust and LeadershipTrust is a psychological state that exists when you agree to make yourself vulnerable to another Employees’ Trust in Their CEOs
    46. 46. How trust developed? LeaderTrustworthiness Risk taking Integrity Information sharing Benevolence Trust Group Effectiveness Ability ProductivityPropensity to Trust
    47. 47. Challenges to the Leadership Construct
    48. 48. Leadership as an AttributionAttribution Theory External Distinctiveness Internal External Individual Consensus Behaviour Internal External Consistency Internal
    49. 49. Attribution Theory of Leadership– The idea that leadership is merely an attribution that people make about other individualsQualities Attributed to Leaders: • Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding, and industrious. • Effective leaders are perceived as consistent and unwavering in their decisions. • Effective leaders project the appearance of being leaders.
    50. 50. Substitutes and Neutralizers for Leadership• Leadership substitutes subordinate, task, or organizational characteristics that make leaders redundant or unnecessary• Leadership neutralizers subordinate, task, or organizational characteristics that interfere with a leader’s actions
    51. 51. Substitutes and – Continue……….• Relationship- Task- oriented oriented Characteristics Leadership Leadership Individual• Experience/training No effect on Substitutes for Professionalism Substitutes for Substitutes for Indifference to rewards Neutralizes Neutralizes Job• Highly structured task No effect on Substitutes for Provides its own feedback No effect on Substitutes for Intrinsically satisfying Substitutes for No effect on Organization• Explicit formalized goals No effect on Substitutes for Rigid rules and procedures No effect on Substitutes for Cohesive work groups Substitutes for Substitutes for
    52. 52. Online Leadership Leadership at a Distance: Building Trust – The lack of face-to-face contact in electronic communications removes the nonverbal cues that support verbal interactions. – There is no supporting context to assist the receiver with interpretation of an electronic communication. – The structure and tone of electronic messages can strongly affect the response of receivers. – An individual’s verbal and written communications may not follow the same style. – Writing skills will likely become an extension of interpersonal skills.
    53. 53. Finding and creating effective leaders By reviewing the knowledge, skills and abilities needed to do the job effectively. Personality tests :- Can identify traits associated with leadership.• Extraversion• Conscientiousness• Openness to experience• Self monitoring – high self monitors are better at reading situations andadjusting their behavior accordingly.•Self confidence• Having a vision• The verbal skills to frame issues or charismatic physical presence.• High emotional intelligence – especially in situations requiring transformationalleadership• Experience – Poor predictor of leader effectiveness but situation- specificexperience is relevant.
    54. 54. Training leadersThese efforts take many forms:-•From executive leadership programs and outward bound programsHow can managers get maximum effect from their leadership trainings? 1. Let’s recognize the obvious. high self monitors – they have the flexibility to change their behavior. 2. What can organizations teach that might be related to higher leader effectiveness? • Not “ vision creation” but, likely, implementation skills. • Can train people to develop “ an understanding about content themes critical to effective visions” • Can teach skills – Trust building and mentoring • Can be taught situational – analysis skills.A number of companies turn to executive coaches to help seniormanagers improve their leadership skills.Hired coaches to help top executives improve their interpersonal skillsand be more professional in their approach.
    55. 55. Global implications How culture might influence the validity of the theories ?India Brazil France Egypt ChinaAction •Team oriented, •More •Team oriented •Emphasizesorientation & Participative bureaucratic •Participative being polite,charisma were &humane view of leaders leadership considerate &found to be the •Participative •Less likely to •Relatively high- unselfishmost important decision making expect them to power-distance •It also has acharacteristics would be suited be humane & culture highfor effective to managing considerate. performanceleadership employees •A leader high orientation on initiating •Moderately structure will do participative best & can make •Status decisions in a difference relatively between leaders autocratic and employees manner
    56. 56. Universal aspects of leadershipA number of elements making up transformational leadershipappear associated with effective leadership, regardless of thecountryWhat elements of transformational leadership appear universal ? Foresight Vision Providing encouragement Trust worthiness Dynamism Positiveness Pro-activeness
    57. 57. Conclusions of the two members of the GLOBE team“Effective business leaders in any country areexpected by their subordinates to provide apowerful & proactive vision to guide thecompany into the future, strong motivationalskills to stimulate all employees to fulfill thevision, & excellent planning skills to assist inimplementing the vision.
    58. 58. Mentoring – Leading for the Future Mentor: A senior employee who supports a less experienced employee. Psychological Career Functions Helping the protégé gain skills and Functions abilities Counseling the protégé to Lobbying for the protégé to get bolster his/her confidence better assignments Sharing personal experiences Providing exposure to influential individuals in the organization with the protégé Providing friendship and Acting as a sounding board for ideas acceptance Protecting the protégé to his or her Acting as a role model reputation
    59. 59. Finding and Creating Effective Leaders Selecting Leaders Training Leaders
    60. 60. Summary and Managerial Implications• Leadership is central to understanding group behavior as the leader provides the direction.• Extroversion, conscientiousness, and openness all show consistent relationships to leadership.• Behavioral approaches have narrowed leadership down into two usable dimensions.• Need to take into account the situational variables, especially the impact of followers.
    61. 61. Summary conti…….• Research on charismatic and transformational leadership has made major contributions to our understanding of leadership.• Leaders must be seen as authentic and trustworthy.• Investment must be made in the future through mentoring and training leaders.
    62. 62. THANK YOU