first year

1. LEADERSHIP (II)
Prof.dr.dr.dr.h.c. Constantin Bratianu
Faculty of Business Administration
Academy of Economic Studies

2. Learning objectives
To understand the similarities and differences between managementand leadership
To understand the multiple meanings of leadership
To distinguish between different types of leaders
To search further for leader qualities

3. Management & Leadership(Similarities)
Management and Leadership entail working with people
Management and Leadership create organizational and functional structures
Management and Leadership involve influence
Management and Leadership are concerned with goal accomplishment
Management and Leadership are concerned with resource allocation

4. Management & Leadership(Differences)
Managementproduces order and consistency, reducing the organizational entropy
Managementis concerned with attaining a stationary and inertial organizational equilibrium
Leadershipproduces change and movement, increasing the organizational entropy
Leadershipis concerned with attaining a dynamic organizational equilibrium

5. Management & Leadership(Differences)
Management
Planning and budgeting
Thinking for present
Establish agendas
Set timetables
Allocate resources
Leadership
Establishing direction
Thinking for future
Create a vision
Clarify big picture
Set strategies

6. Management & Leadership(Differences)
Management
Organizing
Provide structure
Make job placements
Establish rules and procedures
Leadership
Aligning People
Communicate goals
Seek commitment
Build teams and coalitions

7. Management & Leadership(Differences)
Management
Problem solving and Controlling
Develop incentives
Generate solutions
Controlling and taking corrective actions
Leadership
Motivating and Inspiring
Inspire and energize
Empower subordinates
Satisfy employees needs

8. Transactional Leaders& Transformational Leaders
Transactional leaders
Leaders who guide or motivate their followers toward established goals by clarifying role and task requirements. They promote mostly incremental or evolutionary change.
Transformational leaders
Leaders who inspire followers to transcend their own self- interest for the good of the organization and are capable of having a profound and extraordinary effect on followers. They promote radical or revolutionary change.

9. Transformational Leadership
Transformational leadership is built on transactional leadership.
Transformational leadershipproduces levels of employee effort and performance that go beyond what would occur with a transactional approach alone.
The evidence is supporting the superiority oftransformational leadershipover the transactional leadership.

10. Charismatic & Visionary Leadership
Charismatic leadership –Leaders able to influence their followers with their charisma
Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors
Visionary leadership –The ability to create and articulate a realistic, credible, attractive vision of the future
Followers share the vision of the leader

11. Transformational Leader
Mohandas Karamchad Gandhi (1869-1948)
“Mahatma” –Great Soul
“Satyagraha” Non-violent
Civil disobedience
Gandhi led India to independence
(1915-1947)

12. Transformational Leader
Louis V. Gerstner Jr.
CEO IBM (1993-2002)
He transformed the old IBM almost on the edge of collapse into a new successful IBM due to his visionary leadership

13. Transformational Leader
Bill Gates
Founder with Paul Allen of Microsoft in summer 1975 to develop software for IBM PC

14. Transformational Leader
Steve Jobs
Founder with Steve Wozniak of Apple Computer
His transformational leadership developed when he returned as CEO to Apple (1997)

15. Transformational leadership factors
Factor 1 –Idealized influence. Charisma
Factor 2 –Inspirational motivation
Factor 3 –Intellectual stimulation
Factor 4 –Individualized consideration

16. Factor 1Idealized influence. Charisma
Leaders act as strong role models. Followers identify with these leaders and want very much to emulate them.
These leaders usually have very high standards of moral and ethical conduct
They are deeply respected by followers, who usually place a great deal of trust in them
They provide followers with a vision and a sense of mission

17. Factor 2Inspirational motivation
These leaders communicate high expectations to followers, inspiring them through motivation to share the vision of organization
In practice, these leaders use symbols and emotional knowledge to focus group members’ effort to achieve more than they would in their own self-interest
Team spirit is enhanced by this type of leadership

18. Factor 3Intellectual stimulation
Leaders stimulate followers to be creative and innovative
Leaders stimulate followers to challenge their own beliefs and values as well as those of the leader and the organization
Leaders supports followers who try new approaches and develop innovative ways of dealing with organizational issues

19. Factor 4Individualized consideration
Leaders provide a supportive climate in which they listen carefully to the individual needs of followers
Leaders act as coaches and advisers while trying to assist followers
Leaders may use delegation to help followers grow through personal challenges

20. Transformational leadership
Idealized influence
Inspirational motivation
Intellectual stimulation
Individualized consideration
Transactional leadershipExpected outcomes
Performance beyond expectationsTransformational leadership impact