Management and managerial skills training manual.pdf
CH-5 Leadership and Management.ppt
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"If the blind leadthe blind, both shall fall in the ditch."
- Matthew 15:14
Leadership
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Introduction
An effective leader is capable of inspiring and motivating even the
most inefficient employees to strive towards attaining the goals of the
organization.
“Failing organizations are usually over-managed and under-led”
Warren G. Bennis
“Leadership is generally defined as influence, the art of process of influencing
people so that they will strive willingly towards the achievement of group
goals.” Koontz O’Donnell.
“Leadership is the lifting of man’s visions to higher rights, the raising of man’s
performance to higher standards and the building of man’s personality
beyond its normal limitations.” Peter F. Drucker.
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Distinction between Leadership and Management
Leaders take a personal and active interests in achieving goals whereas
managers tend to play a relatively passive role in accomplishing the
goals.
Managers need power to be entrusted to them by the organization to
deal with people . Leaders have power within themselves and the
required drive to lead people and motivate them to work enthusiastically
towards achieving goals.
Managers limit their interactions with people to the minimum extent
required to carry out their managerial responsibilities. Leaders interact
with people frequently and in a more natural way. In the process they
inspire people, motivate them and lead them.
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Leadership Theories
There are three main theories that attempt to
explain Leadership.
Personality Trait Theories
Behavior theories
Contingency Theories
According to the trait theories, leaders possess some
personality traits that non leaders do not possess at
all, or possess only to small extent.
The behavior theories explain the behavior
characteristics of the leaders.
Contingency deals with leadership in different situations
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Trait Theory
Earlier researchers believed that there were
certain unique characteristics in people that made
them leaders . According to them , a person must
possess certain unique personality traits that are
essential for effective leadership.
One of the trait theories is the “Great Person “
theory which emphasized that leaders might not
be born with the desired leadership traits but can
be acquired by learning and experience.
Researchers also tried to study the relationship
between physical traits and leadership, but were
unsuccessful to establish a valid relationship.
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Traits of Effective Leaders
Although there are no specific characteristics that can define the
leadership qualities in a person , most researches have shown that
there are certain traits that differentiate leaders from non-leaders.
Few Leadership Traits
Initiative
Ambition
Desire to lead
Self confidence
Analytical ability
Knowledge – process, technology, industry, etc
Creative
Flexibility
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Behavior Theories
The behavioral theorists concentrated on the
unique behavioral aspects found in leaders that
enabled them to attain effective leadership.
Following are the main behavior theories of
leadership
1.The Ohio State studies
2.University of Michigan studies
3.Managerial Grid
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The Ohio State Studies
In 1945 researchers from various fields conducted studies on leadership at
Ohio State university.
The research was based on a questionnaire called ‘Leader Behavior
Description Questionnaire’.
They narrowed down to two independent dimensions along which an
individual’s leadership behavior could be studied.
1. Initiating Structure – Individual’s ability to define his own task as well as
the subordinates tasks and also accomplish them in time. People who
score high in this dimension put pressure on subordinates to meet
deadlines and maintain certain level of performance.
2. Consideration – This refers to the extent to which a leader cares for his
subordinate, respects their ideas and feelings and establishes work
relations which are characterized by mutual trust and respect.
The studies revealed that the people who scored high on both the dimensions
were able to achieve higher performance as well as job satisfaction.
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University of Michigan studies
A research was conducted at the Survey
Research Centre at the University of Michigan..
During the study , researchers also interviewed
24 supervisors and 400 workers. And following
was observed.
1.Employee-oriented dimension
2.Production-oriented dimension
Researchers concluded that leaders with an
inclination towards employee-oriented dimension
resulted in higher job satisfaction and greater
productivity.
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Contingency Theories
According to the contingency approach of leadership, a single
leadership style is not applicable to all situations.
Every leader is to carefully analyze the situation before adopting
a style that best suits the requirements of the situations. Below
are the 4 contingency models of leadership styles.
1. Fiedler’s Contingency Model
2. Hersey and Blanchard’s situational theory
3. Leadership-participation model
4. Path Goal Theory
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Fiedler’s Contingency Theory
The Fiedler contingency model is a leadership theory of industrial and
organizational psychology developed by Fred Fiedler
Fiedler (1967) emphasised the fact that differing roles, traits and behaviours
of leaders did not just require a specific understanding of interactions with
subordinate, it also required favourable conditions.
Fiedler's model assumes that group performance depends on: Leadership
style, described in terms of task motivation and relationship motivation.
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Situational favourableness, determined by three factors:
1. Leader-member relations - Degree to which a leader is
accepted and supported by the group members.
2. Task structure - Extent to which the task is structured and
defined, with clear goals and procedures.
3. Position power or the leader’s position - The ability of a
leader to control subordinates through reward and punishment.
High levels of these three factors give the most favourable
situation, low levels, the least favourable. Relationship-motivated
leaders are most effective in moderately favourable situations.
Task-motivated leaders are most effective at either end of the
scale.
Fiedler suggests that it may be easier for leaders to change their
situation to achieve effectiveness, rather than change their
leadership style.
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Matching leadership style and situation: summary
predictions from Fiedler’s contingency theory.
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Hersey and Blanchard’s situational theory
The situational leadership model focuses on the fit of leadership style
and followers maturity .
In contrast to Fiedler’s contingency leadership model and its underlying
assumption that leadership style is hard to change, the Hersey-
Blanchard situational leadership model suggests that successful leaders
do adjust their styles.
The situational leadership model views leaders as varying their
emphasis on task and relationship behaviours to best deal with different
levels of follower maturity.
The two-by-two matrix shown in the figure indicates that four leadership
styles are possible.
Telling Style — giving specific task directions and closely
supervising work; this is a high-task, low-relationship style.
Selling Style —explaining task directions in a supportive and
persuasive way; this is a high-task, high-relationship style.
Participating Style —emphasizing shared ideas and participative
decisions on task directions; this is a low-task, high-relationship
style.
Delegating Style —allowing the group to take responsibility for
task decisions; this is a low-task, low-relationship style.
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Vroom and Yetton’s leader-participation
theory.
Helps leaders choose the method of
decision making that best fits the nature of
the problem situation.
Basic decision-making choices:
Authority decision.
Consultative decision.
Group decision.
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Leadership implications of Vroom-Yetton
leader-participation model.
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Decision-making options in the Vroom-
Yetton leader-participation theory:
Decide alone.
Consult individually.
Consult with group.
Facilitate.
Delegate.
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House's Path Goal Theory
This theory was developed by Robert House.
Here the leader provides the necessary support and guidance to
his followers and help them achieve organizational goals.
Leader defines the individual (or groups) goals and help them
achieve them.
As per the theory – Leaders are accepted by the subordinates
when
they find that the satisfaction of their needs depend upon
their effective performance.
They are provided with guidance ,support, and rewards
needed for effective performance.
Robert House suggested 4 types of leadership by this model
1. Directive leadership
2. Supportive leadership
3. Participative leadership
4. Achievement-oriented leadership.
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House’s leadership styles:
Directive leadership.
Communicate expectations.
Give directions.
Schedule work.
Maintain performance standards.
Clarify leader’s role.
Supportive leadership.
Make work pleasant.
Treat group members as equals.
Be friendly and approachable.
Show concern for subordinates’ well-being.
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Achievement-oriented leadership.
Set challenging goals.
Expect high performance levels.
Emphasize continuous improvement.
Display confidence in meeting high standards.
Participative leadership.
Involve subordinates in decision making.
Consult with subordinates.
Ask for subordinates’ suggestions.
Use subordinates’ suggestions.
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Leadership Styles
Authoritarian
A style of leadership in which the leader uses strong, directive,
controlling actions to enforce the rules, regulations, activities and
relationships in the work environment.
o Organizational Behavior, Nelson & Quick
Sets goals individually
Engages primarily in one-way, downward communication
Controls discussions of followers
Sets policy and procedures unilaterally
Dominates interaction
Personally directs the completion of tasks
Provides infrequent positive feedback
Rewards obedience and punishes mistakes
Exhibits poor listening skills
Uses conflict for personal gain
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Democratic
A style of leadership in which the leaders takes collaborative,
responsive, interactive actions with followers concerning the work
and the work environment.
o Organizational Behavior, Nelson & Quick
Involves followers in setting goals
Engages in two-way, open communication
Facilitates discussion with followers
Solicits input regarding determination of policy and procedures
Focuses interaction
Provides suggestions and alternatives for the completion of tasks
Provides frequent positive feedback
Rewards good work and uses punishment only as a last resort
Exhibits effective listening skills
Mediates conflict for group gain
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• Laissez-Faire
(“leave them alone”)
A style of leadership in which the leader fails to accept the
responsibilities of the position.
o Organizational Behavior, Nelson & Quick
Allows followers free rein to set their own goals
Engages in noncommittal, superficial communication
Avoids discussion with followers to set policy and
procedures
Avoids interaction
Provides suggestions and alternatives for the completion
of tasks only when asked to do so by followers
Provides infrequent feedback of any kind
Avoids offering rewards or punishments
May exhibit either poor or effective listening skills
Avoids conflict
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Current issues in leadership development?
Transactional leadership
Someone who directs the efforts of others through tasks, rewards,
and structures
guide followers in the direction of established goals by
clarifying role and task requirements
Transformational leadership
Someone who is truly inspirational as a leader and who arouses
others to seek extraordinary performance accomplishments.
charismatic and visionary, can inspire followers to
transcend their own self-interest for the good of the
organization
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27. Transformational Leaders
Inspire followers to transcend their self-interests for
the good of the organization
• Contingent Reward
• Management by Exception
(active)
• Management by Exception
(passive)
• Laissez-Faire
Transactional
• Idealized Influence
• Inspirational Motivation
• Intellectual Stimulation
• Individualized Consideration
Transformational
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29. Trust and Leadership
Trust – a psychological state that exists when you
agree to make yourself vulnerable to another because
you have a positive expectation for how things are
going to turn out.
Key attribute associated with leadership
Followers who trust their leader will align their actions
and attitudes with the leader’s behaviors/requests
Trust Desired
Actions
Desired
Attitudes
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30. How is Trust Developed?
Leadership
Action:
Integrity,
Benevolence,
Ability
Trust Action: Risk Taking,
Information Sharing,
Group Effectiveness,
and Productivity
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31. Finding and Creating Effective
Leaders
Selecting
Leaders
Training
Leaders
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Gender and leadership.
Both women and men can be effective
leaders.
Women tend to use interactive leadership.
A style that shares qualities with transformational
leadership.
Men tend to use transactional leadership.
Interactive leadership provides a good fit
with the demands of a diverse workforce
and the new workplace.
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33. Global Implications
These leadership theories are primarily studied in
English-speaking countries
GLOBE does have some country-specific insights
Brazilian teams prefer leaders who are high in
consideration, participative, and have high LPC scores
French workers want a leader who is high on initiating
structure and task-oriented
Egyptian employees value team-oriented, participative
leadership, while keeping a high-power distance
Chinese workers may favor a moderately participative
style
Leaders should take culture into account
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34. Mandela’s Inspirational Quotes:
"Real leaders must be ready to sacrifice all for the
freedom of their people.“
"Everyone can rise above their circumstances and
achieve success if they are dedicated to and
passionate about what they do.“
Education is the most powerful weapon which you
can use to change the world.“
"Lead from the back — and let others believe they are
in front.“
Do not judge me by my successes, judge me by how
many times I fell down and got back up again.“
"A good head and a good heart are always a
formidable combination."
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35. In Memory of Mandela
“Death is something inevitable.
When a man has done what he
considers to be his duty to his
people and his country, he can
rest in peace. I believe I have
made that effort and that is,
therefore, why I will sleep for the
eternity.” ~ Nelson Mandela
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Editor's Notes
---Therefore effective leadership plays a vital role in ensuring the smooth functioning of organizations.
Mgrs: reactive, maintain status quo, focus on plan, org, contr, risk avers, lay down structures, follow rules and regulations, science and mind, focus on job content…You can be both but you have to take time to cultivate it…..
No two leaders are alike…No leader possesses all z traits. No consistent traits found in all leaders… Focus on “What”: Physical, social, personal,….in 1920-30…Aristotelian philosophy: leaders have innate ability to lead others….
This leadership program was developed after World War II. The program is resulted in two factor theory: Initiating Structure and Consideration.
This study was made to identify the principles and methods of effective leadership by the famous psychologist Rensis Likert. But this study doesn’t clearly show that one particular style of leadership is always the most effective. Conducted in 12 pairs of sections one high producing and the other low producing section…
Fiedler studied leadp for 40 yrs.
leadership effectiveness depends on the interaction of qualities of the leader with demands of the situation in which the leader functions, made the simplistic "one best way" approach of earlier eras obsolete."
Relates to favorableness of the situation determined by leader member relation, task structure and position power.
He used a questionnaire called LPC (Least Preferred Coworker) scale..
Relates to the follower’s maturity level
Relates to decision making.
The manager's job is viewed as coaching or guiding workers to choose the best paths for reaching their goals.
It's the leader's job to assist followers in attaining goals and to provide direction and support needed to ensure that their goals are compatible with the organization's.
Directive when followers lack clarity, Supportive when they lack confidence,
Achievement when sub lacks challenge, and Participative when they lack ability to make the right decisions or using in appropriate procedures.
Absent when needed….takes no action even when problems become chronic….
transformational, as compared to transactional, leadership is more strongly correlated with lower turnover rates, higher productivity, and higher employee satisfaction. TLP: Inspirational Motivation, Idealized influence (charisma), Intellectual stimulation, and individualized consideration….
Transactional based on contingent rewards…basded on exchange….
Transformational leaders help followers to look at the bigger picture and commit to the good of the organization, even if it means setting their own goals aside.
This chart looks at the different characteristics of transactional and transformational leadership. These two approaches are not contradictory in nature – in fact they can complement each other. Transformational leadership often is built upon transactional leadership. Good leadership will incorporate both transactional and transformational components.
This exhibit shows the full range of the leadership model. The first four behaviors represent transactional approaches and begins with the Laissez-Faire approach, which is the most passive. As a leader progresses on the scale they move toward more active behaviors. The final four behaviors on the model represent transformational actions. This model shows that as leaders utilize more transformational behaviors they become more effective.
Trust is defined as a state that exists when you agree to make yourself vulnerable to another because you have a positive expectation for how things are going to turn out. Over the years this has been found to be a foundational characteristic of leadership. When trust is present, followers are willing to do as the leader asks and engage in behaviors that are for the benefit of the organization. In short, followers will do a lot more for a leader they trust than for one that does not hold their trust.
Trust is developed over time. The interactions between the leaders and the followers are part of the development of trust – it goes both ways. Research has shown that the three main characteristics of a leader that instill trust are integrity, ability, and benevolence.
These three characteristics are important in developing trust between leaders and followers. If followers perceive these characteristics as strong in their leaders, it will encourage positive behaviors such as risk taking, information sharing, group interactions, and productivity.
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.
Most of the theories we have explored are based on research gathered in English-speaking countries. When you look at research in other areas, you will find different variables that will impact both leaders and followers.
It is very important when engaging in cross-cultural business opportunities that the difference in culture is considered. This is true when doing business in other countries, but it is also important to remember that many organizations are cross-cultural because of the make-up of their employees.
The GLOBE study looked at 18,000 leaders in over 800 organizations in 62 countries. They found that the characteristics that determined transformational leadership were consistent across cultures. This is significant because it disputes the contingency view that leadership is dependent upon culture.
