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CH-5 Leadership and Management.ppt
- 1. Prepared by AsfawWassie "If the blind leadthe blind, both shall fall in the ditch." - Matthew 15:14 Leadership 1
- 2. Prepared by AsfawWassie 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. 2
- 3. Prepared by AsfawWassie 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. 3
- 4. Prepared by AsfawWassie 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 4
- 5. Prepared by AsfawWassie 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. 5
- 6. Prepared by AsfawWassie 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 6
- 7. Prepared by AsfawWassie 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 7
- 8. Prepared by AsfawWassie 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. 8
- 9. Prepared by AsfawWassie 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. 9
- 10. Prepared by AsfawWassie 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 10
- 11. Prepared by AsfawWassie 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. 11
- 12. Prepared by AsfawWassie 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. 12
- 13. Prepared by AsfawWassie Matching leadership style and situation: summary predictions from Fiedler’s contingency theory. 13
- 14. Prepared by AsfawWassie 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. 14
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- 16. Prepared by AsfawWassie 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. 16
- 17. Prepared by AsfawWassie Leadership implications of Vroom-Yetton leader-participation model. 17
- 18. Prepared by AsfawWassie Decision-making options in the Vroom- Yetton leader-participation theory: Decide alone. Consult individually. Consult with group. Facilitate. Delegate. 18
- 19. Prepared by AsfawWassie 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. 19
- 20. Prepared by AsfawWassie Path-Goal Theory 20
- 21. Prepared by AsfawWassie 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. 21
- 22. Prepared by AsfawWassie 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. 22
- 23. Prepared by AsfawWassie 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 23
- 24. Prepared by AsfawWassie 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 24
- 25. Prepared by AsfawWassie • 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 25
- 26. Prepared by AsfawWassie 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 26
- 27. Transformational Leaders Inspirefollowers 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 Prepared by Asfaw Wassie 27
- 28. Leadership Model Transaction Approaches • Laissez-Faire •Management by Exception • Contingent Reward Transformational Approaches • Individualized Consideration • Intellectual Stimulation • Inspirational Motivation • Idealized Influence Prepared by Asfaw Wassie 28
- 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 Prepared by Asfaw Wassie 29
- 30. How is TrustDeveloped? Leadership Action: Integrity, Benevolence, Ability Trust Action: Risk Taking, Information Sharing, Group Effectiveness, and Productivity Prepared by Asfaw Wassie 30
- 31. Finding and CreatingEffective Leaders Selecting Leaders Training Leaders Prepared by Asfaw Wassie 31
- 32. Prepared by AsfawWassie 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. 32
- 33. Global Implications Theseleadership 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 Prepared by Asfaw Wassie 33
- 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." Prepared by Asfaw Wassie 34
- 35. In Memory ofMandela “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 Prepared by Asfaw Wassie 35
Editor's Notes
- #3 ---Therefore effective leadership plays a vital role in ensuring the smooth functioning of organizations.
- #4 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…..
- #6 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….
- #9 This leadership program was developed after World War II. The program is resulted in two factor theory: Initiating Structure and Consideration.
- #10 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…
- #12 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..
- #15 Relates to the follower’s maturity level
- #17 Relates to decision making.
- #20 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.
- #22 Directive when followers lack clarity, Supportive when they lack confidence,
- #23 Achievement when sub lacks challenge, and Participative when they lack ability to make the right decisions or using in appropriate procedures.
- #26 Absent when needed….takes no action even when problems become chronic….
- #27 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….
- #28 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.
- #29 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.
- #30 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.
- #31 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.
- #32 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.
- #34 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.