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  1. 1. LEADERSHIP Managing People And Organisations
  2. 2. INTRODUCTION TO LEADERSHIP Leadership is the ability to get work done with & through others, while at the same time winning their confidence, loyalty & willing cooperation.
  3. 3. TWO TYPES OF LEADERSHIP <ul><li>Formal Leadership </li></ul><ul><ul><li>The formal leader is the supervisor or manager appointed by the organization to be in change of the work group. </li></ul></ul><ul><ul><li>Their aim is to achieve the organizations objectives. </li></ul></ul><ul><li>Informal Leadership </li></ul><ul><ul><li>Is chosen by the group itself. </li></ul></ul><ul><ul><li>They usually have good social & communication skills. </li></ul></ul><ul><ul><li>They focus on the group’s need for affiliation, leadership & recognition. </li></ul></ul>
  4. 4. APPROACHES TO UNDERSTANDING Trait, Behavioural and Contingency LEADERSHIP
  5. 5. TRAIT THEORY <ul><li>Assumptions </li></ul><ul><ul><li> People are born with inherited traits </li></ul></ul><ul><ul><li> Some traits are particularly suited to leadership </li></ul></ul><ul><ul><li>These traits may provide people with the potential for leadership, it is the capacity to create a vision and implement it that turns the potential into reality </li></ul></ul><ul><ul><li> People who make good leaders have the right (or sufficient) combination of trait. </li></ul></ul>6 characteristics that differentiate leader from non-leaders. Desire Drive Intelligence Honesty & integrity Self- Confidence Job-relevant knowledge
  6. 6. BEHAVIOURS THEORY  Behavioral theories of leadership do not seek inborn traits or capacities. Rather, they look at what leaders actually do.  If success can be defined in terms of describable action, then it should be relatively easy for other people to act in the same way.  This is easier to teach and learn then to adopt the more ephemeral' traits’ or ‘capabilities’ <ul><li>Ohio State & Michigan Studies </li></ul><ul><ul><li>The Michigan and Ohio State theories each attempt to isolate broad dimensions of leadership behavior </li></ul></ul><ul><ul><li>They have provided parishioners with information on what behaviors leaders should possess </li></ul></ul><ul><ul><li> This has resulted in the establishment of training programs for leaders of various levels </li></ul></ul>
  8. 8. CONTINGENCY THEORIES OF LEADERSHIP Theories that seek to define leadership style and answer: ‘ if’ this situation, ‘then’ this is the best style to use.  Fiedler model  Hersey-Blanchard situational theory  Leader-participation model  Path-goal theory
  9. 9. FIEDLER’S CONTINGENCY MODEL Assumptions  A certain leadership style should be most effective in different types of situation.  Leaders do not readily change leadership styles  Matching the leader to the situation or changing the situation to make it favourable to the leader is required
  10. 10. HERSEY’S AND BLANCHARD’S SITUATIONAL THEORY  Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness.  Acceptance: leadership effectiveness depends on whether followers accept or reject a leader.  Readiness: the extent to which followers have the ability and willingness to accomplish a specific task.  Leaders must relinquish control over and contract with followers as they become more competent.
  11. 11. LEADER-PARTICIPATION MODEL Posits that leader behavior must be adjusted to reflect the task structure whether it is routine, non-routine, or in between-based on a sequential set of rules (contingencies) for determining the form and amount of follower participation in decision making in a given situation. Vromm and Yettom
  12. 12. PATH-GOAL THEORY Path-goal theory that says it is a leader’s job to assist followers and to provide direction and support that are needed to attain goals.
  13. 13. LEADERSHIP IN BUSINESS The Salvation Army, ANZ & Woolworths
  14. 14. THE SALVATION ARMY The administration of The Salvation Army is top-down and autocratic, in true military style, with all positions except that of General being held by appointment. There are three distinct levels of leadership held within the Salvation Army: Corps level International level Territorial level Divisional level
  15. 15. THE SALVATION ARMY <ul><li>Despite the top-down – autocratic organisation style of the Salvation Army, the nature of Leadership held within the organisation corresponds with the Path-Goal theory of leadership. </li></ul><ul><li> In regards to the leadership style of the Salvation Army, a values-based approach becomes the most relevant </li></ul>The Salvation Army’s main value is to assist all people in need without regard to nationality, race, belief, sexuality, ability, or judgement of behaviour. Their philosophy is that they can best express thier love for God by compassionately reaching out to help people - following the Golden Rule – &quot;Do unto others as you would have others do unto you&quot;.
  16. 16. THE SALVATION ARMY <ul><li>The most important attribute is vision. A leader must understand the big picture and clearly enunciate the way it can be realised in terms that staff, clients and the world at large can identify with. </li></ul><ul><li>2. A leader must be prepared to allow mistakes to be made in the pursuit of the shared vision. Encourage expansionist activity rather than 'safe' repetition of the 'known way'. </li></ul><ul><li>3. Leadership also requires the development of staff to their full potential and recognition of those who have reached a level of expertise they are prepared to work at for the foreseeable future. </li></ul>
  17. 17. ANZ  Both the leadership as traits and Leadership as behavior theory can be applied to the management team of ANZ with certain aspects taking greater priority.  Although the leadership as traits theory has holes such as theories which account attributes such as height, sex and ethnicity to the integrity of the leader which is not always agreed upon, it is hard to argue against the fact that all 9 leaders of ANZ are middle aged white men from the CEO to the Chief Risk Officer.  It seems that those who don’t follow the trend in the leadership as traits theory tend to have to work harder to achieve the same goals.
  18. 18. ANZ <ul><li>ANZ like all other large businesses have decided upon Board Composition, Selection and Appointment Charter that potential candidates must satisfy. Selection criteria include integrity, fitness and propriety, skills, experience, communication capabilities and community standing, all of which come under the traits or behavioral aspects. </li></ul><ul><li>Shane Freeman the Group General Manager of People Capital and Breakout, follows the Path-Goal theory of leadership and could be accurately described as an Achievement oriented leader. Shane as taken his approach of leadership away from the Directive, Supportive and Participative approach which does not fit ANZ structure in a practical sense due to the obvious changes in staff behavior such as reduced motivation and as a result productivity. </li></ul>
  19. 19. WOOLWORTHS  Human Resource framing establishes the fact that sense is made through the emphasis of an organisation as a family and the belief that the effect of an organisation’s actions on an individual is integral and must always be considered.  As stated by Maslow this results in leadership where intrinsic (natural/fundamental) motivation dominates and the leaders goals are to empower, mentor and inspire individuals. This further contributes to family aspect and people believe it is in there best interest to make the organisation successful thus resulting in the individual’s goals being parallel to that of the company.
  20. 20. WOOLWORTHS Woolworths Limited seeks to place emphasis on an organisations most valuabe rescource, being people through constant Mentoring. Woolworths sees this Mentor/Mentee relationship as integral as constant guidance, performance review and training is engaged in. Model popular in US 40s-50s by Abraham Maslow through Motivation & Personality 1954
  21. 21. WOOLWORTHS <ul><li>Symbolic framing reinforces the idea that sense is made through believing what is most important is not an action but the meaning that is derived from it. </li></ul><ul><li>Woolworths provides many examples of symbolic framing as strong leaders that lead by example can be seen throughout the organisation There actions are also prominent throughout the company as Woolworths has various policies set to allow for senior management to interact with every level of staff. </li></ul><ul><li>Company CEO Michael Luscombe is publicised to interact with all staff on a regular basis so that staff can follow is example and derive meaning from his actions. </li></ul>
  22. 22. LESSONS LEARNT… Everyone is different, just as businesses are all different… Thus, different applications of leadership are used for different business environments. To be a good leader, you must first understand the nature of business and then consider the methods of leadership appropriate for your organisation  Brought to you today by: Edward, Sony, Ivy, Lance, Sahin & Pamela