The document discusses various leadership theories and styles. It contrasts managers with leaders, noting that leaders focus on long-term goals and change while managers focus on short-term goals and maintaining the status quo. Several leadership theories are summarized, including path-goal theory, situational leadership theory, and normative decision theory. Leadership styles like directive, supportive, and participative are also discussed.
The document discusses key concepts in management. It defines management as getting work done through others and achieving effectiveness and efficiency. The four main management functions are identified as planning, organizing, leading, and controlling. Planning involves determining goals and how to achieve them. Organizing is deciding roles, responsibilities, and reporting structures. Leading includes motivating and inspiring others. Controlling monitors progress and ensures goals are met. Different levels of management such as top, middle, and first-line managers are outlined along with their typical roles and responsibilities.
Richard L. Daft addresses themes and issues directly relevant to both the everyday demands and significant challenges facing businesses today. Comprehensive coverage helps develop managers able to look beyond traditional techniques and ideas to tap into a full breadth of management skills. With the best in proven management and new competencies that harness creativity, D.A.F.T. is Management!
The document discusses different aspects of organizational structure, including:
1) It describes common elements of organizational structure like division of labor, formal reporting relationships, and coordination systems.
2) It outlines different structural designs for organizing work like functional, divisional, matrix, and team-based structures.
3) It examines structural elements like spans of control, centralization/decentralization, and departmentalization and how they shape organizational design.
4) It discusses how factors like strategy, environment, and technology influence appropriate structural choices.
This document discusses organizational change and the challenges of managing in turbulent times. It identifies several driving forces of change, including advancing technology, increasing workforce diversity, rising public expectations of corporate social responsibility, tougher global competition, and the need to satisfy multiple stakeholders. Effective management requires navigating these challenges through planning, organizing, leading, and controlling organizational resources to achieve goals in an efficient and effective way.
The document discusses organizational structures and leadership styles. It describes functional, divisional, and flat organizational structures. Autocratic leadership is discussed as well as its advantages and disadvantages. The importance of internal and external stakeholders is also covered. Training and selecting staff are identified as important factors for organizational success.
This document discusses the concepts of line and staff authority relationships in organizations. It defines key terms like power, authority, line functions, and staff functions. Staff functions provide advice to help line managers accomplish organizational objectives, but staff have no direct authority over line. Principles of effective delegation are outlined, including defining expected results, functional roles, and maintaining a clear line of authority. Decentralization is the degree to which decision-making authority is delegated within an organization, based on factors like cost, uniformity, and managerial skills.
Fundamentals of organizational structure pptSubhamMalik
The document discusses organizational structure and its key components. It describes 7 main components that determine structure: work specialization, departmentalization, hierarchy levels, chain of command, span of control, decision making regarding centralization and decentralization, and level of formalization. It provides examples of different types of departmentalization and discusses considerations for optimal organizational design such as functional vs. divisional vs. matrix structures.
The document discusses various aspects of organizational design and structure. It begins by listing four presenters and their employee IDs. It then covers topics such as work specialization, organizational design elements like authority, departmentalization, chain of command, span of control and alternatives to specialization. The key aspects of work specialization include breaking down jobs into discrete tasks and having workers focus on specific skills. While specialization increases efficiency, it can also lead to monotony and loss of flexibility. The document discusses alternatives like job rotation, enlargement and enrichment to address the disadvantages.
The document discusses key concepts in management. It defines management as getting work done through others and achieving effectiveness and efficiency. The four main management functions are identified as planning, organizing, leading, and controlling. Planning involves determining goals and how to achieve them. Organizing is deciding roles, responsibilities, and reporting structures. Leading includes motivating and inspiring others. Controlling monitors progress and ensures goals are met. Different levels of management such as top, middle, and first-line managers are outlined along with their typical roles and responsibilities.
Richard L. Daft addresses themes and issues directly relevant to both the everyday demands and significant challenges facing businesses today. Comprehensive coverage helps develop managers able to look beyond traditional techniques and ideas to tap into a full breadth of management skills. With the best in proven management and new competencies that harness creativity, D.A.F.T. is Management!
The document discusses different aspects of organizational structure, including:
1) It describes common elements of organizational structure like division of labor, formal reporting relationships, and coordination systems.
2) It outlines different structural designs for organizing work like functional, divisional, matrix, and team-based structures.
3) It examines structural elements like spans of control, centralization/decentralization, and departmentalization and how they shape organizational design.
4) It discusses how factors like strategy, environment, and technology influence appropriate structural choices.
This document discusses organizational change and the challenges of managing in turbulent times. It identifies several driving forces of change, including advancing technology, increasing workforce diversity, rising public expectations of corporate social responsibility, tougher global competition, and the need to satisfy multiple stakeholders. Effective management requires navigating these challenges through planning, organizing, leading, and controlling organizational resources to achieve goals in an efficient and effective way.
The document discusses organizational structures and leadership styles. It describes functional, divisional, and flat organizational structures. Autocratic leadership is discussed as well as its advantages and disadvantages. The importance of internal and external stakeholders is also covered. Training and selecting staff are identified as important factors for organizational success.
This document discusses the concepts of line and staff authority relationships in organizations. It defines key terms like power, authority, line functions, and staff functions. Staff functions provide advice to help line managers accomplish organizational objectives, but staff have no direct authority over line. Principles of effective delegation are outlined, including defining expected results, functional roles, and maintaining a clear line of authority. Decentralization is the degree to which decision-making authority is delegated within an organization, based on factors like cost, uniformity, and managerial skills.
Fundamentals of organizational structure pptSubhamMalik
The document discusses organizational structure and its key components. It describes 7 main components that determine structure: work specialization, departmentalization, hierarchy levels, chain of command, span of control, decision making regarding centralization and decentralization, and level of formalization. It provides examples of different types of departmentalization and discusses considerations for optimal organizational design such as functional vs. divisional vs. matrix structures.
The document discusses various aspects of organizational design and structure. It begins by listing four presenters and their employee IDs. It then covers topics such as work specialization, organizational design elements like authority, departmentalization, chain of command, span of control and alternatives to specialization. The key aspects of work specialization include breaking down jobs into discrete tasks and having workers focus on specific skills. While specialization increases efficiency, it can also lead to monotony and loss of flexibility. The document discusses alternatives like job rotation, enlargement and enrichment to address the disadvantages.
The document discusses the changing nature of management in turbulent times. It notes that the pace of change continues to accelerate and is a major business risk. Key driving forces include advances in technology, increasing workforce diversity, rising public consciousness, globalization, and the growing stakeholder community. Successful modern management requires integrating traditional skills with new approaches that emphasize human elements, flexibility, and engaging employees. Managers must help organizations navigate turbulence through dispersed leadership, empowering employees, collaborative relationships, and emphasizing learning.
Board of Directors Oversight of Leadership RiskCharlie Bishop
This document discusses how boards of directors can better oversee leadership risk within their organizations. It argues that leadership should be considered one of the top risks and that boards need to take a more active role in monitoring talent management processes. The article identifies seven specific leadership risks that boards should pay attention to: loose accountability, inept assessment, misalignment of executive compensation, inadequate bench strength, playing it too safe with development, having a "once a year" mindset, and settling for "just good enough". It provides questions for boards to ask management about each risk area and suggests tactics for boards to mitigate leadership risks, such as adopting a leadership competency model and measuring the effectiveness of talent management processes.
This document discusses delegation of authority and decentralization. It defines delegation as the subdivision and sub-allocation of powers to subordinates to achieve effective results. There are three key elements to delegation: authority, responsibility, and accountability. While authority and responsibility can be delegated, accountability cannot. Delegation allows for multi-tasking, speedier decision-making, better coordination, and increased employee morale. However, there are also limitations to delegation from both the supervisor and subordinate perspectives. The principles of delegation and advantages and disadvantages of decentralization are also outlined.
Safety Symposium Training And Risk Management For Psychological InjuryKeryl Egan
This document discusses training and risk management for psychological injury in the workplace. It defines stress and bullying, and outlines their costs such as increased absenteeism, turnover, and workers' compensation claims. The document presents models for assessing stress levels and change management. It recommends a multi-level intervention approach including strengthening organizational processes, culture, and individual support. Case studies demonstrate reduced stress and cost savings from proactive prevention programs over reactive measures.
Presentation of a group work at the Birmingham City University in People in Organisations. The group splitted up the task "Challenges of Management" into the 5 focues from Fayol, and worked out some definitions, examples and group findings. The group also tried to match the 5 focuses with the 14 principles of management.
The document discusses various concepts related to authority, power, motivation and organizational culture. It defines key terms like authority, responsibility, accountability and different types of power. It also summarizes theories on motivation like Maslow's hierarchy of needs, ERG theory, Expectancy theory and discusses techniques to motivate employees like money, recognition, job enrichment and quality of work life.
"Electronics Industry CEOs Executive SummaryIBMElectronics
How are leaders responding to a competitive and economic environment? IBM interviewed 1,541 CEOs, general managers and senior public sector leaders, including 105 Electronics Industry respondents.
This document provides an overview of management and managers. It begins by defining management and identifying the basic managerial functions of planning, organizing, leading, and controlling. It describes the three levels of managers and the different skills required at each level. The document also discusses major changes in the 21st century that will impact management, such as increasing globalization, diversity, and the growing importance of intellectual capital. It provides context on the roles and responsibilities of functional and general managers.
Richard L. Daft addresses themes and issues directly relevant to both the everyday demands and significant challenges facing businesses today. Comprehensive coverage helps develop managers able to look beyond traditional techniques and ideas to tap into a full breadth of management skills. With the best in proven management and new competencies that harness creativity, D.A.F.T. is Management!
The document discusses various leadership theories and concepts. It defines leadership and differentiates between leaders and managers. It describes substitutes and neutralizers for leadership and examines leadership traits and behaviors. It also covers situational leadership theories including Fiedler's contingency theory, path-goal theory, and Hersey and Blanchard's situational leadership model. Finally, it discusses normative decision theory and visionary leadership approaches like charismatic and transformational leadership.
The document discusses various theories and approaches to leadership. It covers trait approaches, which focus on leaders' personal characteristics. Behavioral approaches like the Ohio State and Michigan studies examined how leaders balance task-oriented and people-oriented behaviors. Contingency theories like Fiedler's suggest that leadership effectiveness depends on matching style to situational favorability. Path-goal theory identifies four leader behaviors and their suitability based on employee characteristics and work environment factors. The document also distinguishes leadership from management and discusses approaches for leading organizational change.
The document discusses leadership concepts from a management textbook. It covers the nature of leadership including power, vision, and empowerment. It also discusses leadership traits and behaviors, contingency approaches to leadership like Fiedler's model and situational leadership, and developing personal leadership through traits like emotional intelligence and moral leadership.
The document describes the key aspects of management based on a textbook. It discusses the four main functions of management: planning, organizing, leading, and controlling. It also addresses the difference between efficiency and effectiveness. Managers require conceptual, human and technical skills. The roles and challenges of management are described for different levels and in different contexts like small businesses and non-profits. Finally, it outlines the transition to a new workplace requiring new competencies for dealing with today's turbulent environment.
9e daft chapter_1_innovative_management_for_turbulent_timesfatwaamrani
The document discusses the role of management and key concepts in management. It describes the four main functions of management as planning, organizing, leading, and controlling. It also discusses the importance of efficiency and effectiveness for organizational performance. Managers require conceptual, human, and technical skills to perform their roles, which include leading employees to achieve goals, making decisions about resources, and ensuring the organization's survival. The challenges of management are increasing as the environment becomes more diverse, dynamic and turbulent.
The sales manager blamed the sales staff for low sales figures and threatened to replace underperforming staff. A newly recruited former Sri Lankan cricketer supported the manager's argument that underperforming players on a cricket team would be replaced. However, the cricketer added that if the entire team fails continuously, the captain and coach would also be replaced, implying that the manager was ultimately responsible for leading the team's poor performance. The document then discusses various models and theories of leadership.
INDIVIDUAL QUESTIONThink about a great leader you have wor.docxjaggernaoma
INDIVIDUAL QUESTIONThink about a great leader you have worked with or worked for.
What specifically did they do that made them so effective?How did you respond to them both psychologically and behaviorally?How did others appear to respond to them?
*
LEADERSHIPLeadership - The use of power and influence to direct the activities of followers toward goal achievement.
Leader effectiveness - The degree to which the leader’s actions result in:The achievement of the unit’s goals, The continued commitment of the unit’s employees, and The development of mutual trust, respect, and obligation in leader–member dyads.
Most studies have concluded that traits are more predictive of leader emergence (i.e., who becomes a leader in the first place) than they are of leader effectiveness (i.e., how well people actually do in a leadership role).
Leader emergence has been linked to a number of traits. Underlined and highlighted traits are associated with leader effectiveness.
Conscientiousness, disagreeableness, openness, extraversion, general cognitive ability, energy level, stress tolerance, and self-confidence.
*
LEADER DECISION-MAKING STYLES
Decision-making styles capture how a leader makes a decision as opposed to what a leader decides.Autocratic style - The leader makes the decision alone without asking for the opinions or suggestions of the employees in the work unit.Consultative style - The leader presents the problem to individual employees or a group of employees, asking for their opinions and suggestions before ultimately making the decision him- or herself.Facilitative style - The leader presents the problem to a group of employees and seeks consensus on a solution, making sure that his or her own opinion receives no more weight than anyone else’s. Delegative style - The leader gives an individual employee or a group of employees the responsibility for making the decision within some set of specified boundary conditions.
*
LEADER-MEMBER EXCHANGE THEORYLeader–member exchange theory (LMX) - Describes how leader–member relationships develop over time on a dyadic basis. Role taking phase - A manager describes role expectations to an employee and the employee attempts to fulfill those expectations with his or her job behaviors. Role making phase - The employee’s own expectations for the dyad get mixed in with those of the leader.Role routinization phase – The conclusion of the role making phase, where roles have been agreed upon by both parties.Many dyads never reach this stage. Those that do tend to have a high LMX relationship.
LMX is an important predictor of many important outcomes.Performance: Performance ratings, actual performance, competenceJob Attitudes/Stressors: Overall Satisfaction, satisfaction with supervision, commitment, decreased role conflict, role clarity, turnover intentions.
*
LEADER-MEMBER EXCHANGE THEORY
*
INDIVIDUAL QUESTIONWhat do you think some of the benefits of differentiated leadership are?
What.
1. The document discusses coaching as an important supervisory skill that involves tutoring, mentoring, confronting, and counseling employees to help them improve performance.
2. It identifies important coaching skills like acknowledging, attending, affirming, and pinpointing, and differentiates between general and specific coaching statements.
3. The document also covers using "I" messages when giving feedback, the role of Employee Assistance Programs in counseling, and issues around supervisors counseling employees about personal problems.
The document discusses the changing nature of management in turbulent times. It notes that the pace of change continues to accelerate and is a major business risk. Key driving forces include advances in technology, increasing workforce diversity, rising public consciousness, globalization, and the growing stakeholder community. Successful modern management requires integrating traditional skills with new approaches that emphasize human elements, flexibility, and engaging employees. Managers must help organizations navigate turbulence through dispersed leadership, empowering employees, collaborative relationships, and emphasizing learning.
Board of Directors Oversight of Leadership RiskCharlie Bishop
This document discusses how boards of directors can better oversee leadership risk within their organizations. It argues that leadership should be considered one of the top risks and that boards need to take a more active role in monitoring talent management processes. The article identifies seven specific leadership risks that boards should pay attention to: loose accountability, inept assessment, misalignment of executive compensation, inadequate bench strength, playing it too safe with development, having a "once a year" mindset, and settling for "just good enough". It provides questions for boards to ask management about each risk area and suggests tactics for boards to mitigate leadership risks, such as adopting a leadership competency model and measuring the effectiveness of talent management processes.
This document discusses delegation of authority and decentralization. It defines delegation as the subdivision and sub-allocation of powers to subordinates to achieve effective results. There are three key elements to delegation: authority, responsibility, and accountability. While authority and responsibility can be delegated, accountability cannot. Delegation allows for multi-tasking, speedier decision-making, better coordination, and increased employee morale. However, there are also limitations to delegation from both the supervisor and subordinate perspectives. The principles of delegation and advantages and disadvantages of decentralization are also outlined.
Safety Symposium Training And Risk Management For Psychological InjuryKeryl Egan
This document discusses training and risk management for psychological injury in the workplace. It defines stress and bullying, and outlines their costs such as increased absenteeism, turnover, and workers' compensation claims. The document presents models for assessing stress levels and change management. It recommends a multi-level intervention approach including strengthening organizational processes, culture, and individual support. Case studies demonstrate reduced stress and cost savings from proactive prevention programs over reactive measures.
Presentation of a group work at the Birmingham City University in People in Organisations. The group splitted up the task "Challenges of Management" into the 5 focues from Fayol, and worked out some definitions, examples and group findings. The group also tried to match the 5 focuses with the 14 principles of management.
The document discusses various concepts related to authority, power, motivation and organizational culture. It defines key terms like authority, responsibility, accountability and different types of power. It also summarizes theories on motivation like Maslow's hierarchy of needs, ERG theory, Expectancy theory and discusses techniques to motivate employees like money, recognition, job enrichment and quality of work life.
"Electronics Industry CEOs Executive SummaryIBMElectronics
How are leaders responding to a competitive and economic environment? IBM interviewed 1,541 CEOs, general managers and senior public sector leaders, including 105 Electronics Industry respondents.
This document provides an overview of management and managers. It begins by defining management and identifying the basic managerial functions of planning, organizing, leading, and controlling. It describes the three levels of managers and the different skills required at each level. The document also discusses major changes in the 21st century that will impact management, such as increasing globalization, diversity, and the growing importance of intellectual capital. It provides context on the roles and responsibilities of functional and general managers.
Richard L. Daft addresses themes and issues directly relevant to both the everyday demands and significant challenges facing businesses today. Comprehensive coverage helps develop managers able to look beyond traditional techniques and ideas to tap into a full breadth of management skills. With the best in proven management and new competencies that harness creativity, D.A.F.T. is Management!
The document discusses various leadership theories and concepts. It defines leadership and differentiates between leaders and managers. It describes substitutes and neutralizers for leadership and examines leadership traits and behaviors. It also covers situational leadership theories including Fiedler's contingency theory, path-goal theory, and Hersey and Blanchard's situational leadership model. Finally, it discusses normative decision theory and visionary leadership approaches like charismatic and transformational leadership.
The document discusses various theories and approaches to leadership. It covers trait approaches, which focus on leaders' personal characteristics. Behavioral approaches like the Ohio State and Michigan studies examined how leaders balance task-oriented and people-oriented behaviors. Contingency theories like Fiedler's suggest that leadership effectiveness depends on matching style to situational favorability. Path-goal theory identifies four leader behaviors and their suitability based on employee characteristics and work environment factors. The document also distinguishes leadership from management and discusses approaches for leading organizational change.
The document discusses leadership concepts from a management textbook. It covers the nature of leadership including power, vision, and empowerment. It also discusses leadership traits and behaviors, contingency approaches to leadership like Fiedler's model and situational leadership, and developing personal leadership through traits like emotional intelligence and moral leadership.
The document describes the key aspects of management based on a textbook. It discusses the four main functions of management: planning, organizing, leading, and controlling. It also addresses the difference between efficiency and effectiveness. Managers require conceptual, human and technical skills. The roles and challenges of management are described for different levels and in different contexts like small businesses and non-profits. Finally, it outlines the transition to a new workplace requiring new competencies for dealing with today's turbulent environment.
9e daft chapter_1_innovative_management_for_turbulent_timesfatwaamrani
The document discusses the role of management and key concepts in management. It describes the four main functions of management as planning, organizing, leading, and controlling. It also discusses the importance of efficiency and effectiveness for organizational performance. Managers require conceptual, human, and technical skills to perform their roles, which include leading employees to achieve goals, making decisions about resources, and ensuring the organization's survival. The challenges of management are increasing as the environment becomes more diverse, dynamic and turbulent.
The sales manager blamed the sales staff for low sales figures and threatened to replace underperforming staff. A newly recruited former Sri Lankan cricketer supported the manager's argument that underperforming players on a cricket team would be replaced. However, the cricketer added that if the entire team fails continuously, the captain and coach would also be replaced, implying that the manager was ultimately responsible for leading the team's poor performance. The document then discusses various models and theories of leadership.
INDIVIDUAL QUESTIONThink about a great leader you have wor.docxjaggernaoma
INDIVIDUAL QUESTIONThink about a great leader you have worked with or worked for.
What specifically did they do that made them so effective?How did you respond to them both psychologically and behaviorally?How did others appear to respond to them?
*
LEADERSHIPLeadership - The use of power and influence to direct the activities of followers toward goal achievement.
Leader effectiveness - The degree to which the leader’s actions result in:The achievement of the unit’s goals, The continued commitment of the unit’s employees, and The development of mutual trust, respect, and obligation in leader–member dyads.
Most studies have concluded that traits are more predictive of leader emergence (i.e., who becomes a leader in the first place) than they are of leader effectiveness (i.e., how well people actually do in a leadership role).
Leader emergence has been linked to a number of traits. Underlined and highlighted traits are associated with leader effectiveness.
Conscientiousness, disagreeableness, openness, extraversion, general cognitive ability, energy level, stress tolerance, and self-confidence.
*
LEADER DECISION-MAKING STYLES
Decision-making styles capture how a leader makes a decision as opposed to what a leader decides.Autocratic style - The leader makes the decision alone without asking for the opinions or suggestions of the employees in the work unit.Consultative style - The leader presents the problem to individual employees or a group of employees, asking for their opinions and suggestions before ultimately making the decision him- or herself.Facilitative style - The leader presents the problem to a group of employees and seeks consensus on a solution, making sure that his or her own opinion receives no more weight than anyone else’s. Delegative style - The leader gives an individual employee or a group of employees the responsibility for making the decision within some set of specified boundary conditions.
*
LEADER-MEMBER EXCHANGE THEORYLeader–member exchange theory (LMX) - Describes how leader–member relationships develop over time on a dyadic basis. Role taking phase - A manager describes role expectations to an employee and the employee attempts to fulfill those expectations with his or her job behaviors. Role making phase - The employee’s own expectations for the dyad get mixed in with those of the leader.Role routinization phase – The conclusion of the role making phase, where roles have been agreed upon by both parties.Many dyads never reach this stage. Those that do tend to have a high LMX relationship.
LMX is an important predictor of many important outcomes.Performance: Performance ratings, actual performance, competenceJob Attitudes/Stressors: Overall Satisfaction, satisfaction with supervision, commitment, decreased role conflict, role clarity, turnover intentions.
*
LEADER-MEMBER EXCHANGE THEORY
*
INDIVIDUAL QUESTIONWhat do you think some of the benefits of differentiated leadership are?
What.
1. The document discusses coaching as an important supervisory skill that involves tutoring, mentoring, confronting, and counseling employees to help them improve performance.
2. It identifies important coaching skills like acknowledging, attending, affirming, and pinpointing, and differentiates between general and specific coaching statements.
3. The document also covers using "I" messages when giving feedback, the role of Employee Assistance Programs in counseling, and issues around supervisors counseling employees about personal problems.
This document summarizes several leadership theories and styles discussed in Chapter 5 of the textbook "Educational Administration Concepts and Practices 6th Edition". It describes classic leadership traits and behaviors, as well as contingency theories including boss-centered versus subordinate-centered leadership. Additionally, it outlines leadership styles from several models including Tannenbaum and Schmidt's leadership continuum, Reddin's three-dimensional leadership styles, Hersey and Blanchard's situational leadership theory, and leader-member exchange theory. The document provides examples and implications for applying these leadership theories in educational practice.
The document discusses leadership and management theories. It defines leadership as the ability to influence others towards goals, and notes it is a responsibility rather than a position. Four types of leadership are described: directive, supportive, participative, and achievement-oriented. Several theories of leadership are also summarized, including the trait theory, behavioral theory, and contingency theory. The behavioral theory identifies two leadership functions and styles, while the contingency theory states the most effective leadership depends on situational factors.
The document discusses various theories of leadership. It begins by defining leadership as the ability to influence others toward goals, and management as using authority to obtain compliance. It then covers trait theories that identify personality traits of leaders. Behavioral theories propose that specific behaviors differentiate leaders. Important behavioral studies identified two dimensions of leader behavior: initiating structure and consideration. Contingency theories note that leadership effectiveness depends on the environment. Fiedler's model and Hersey-Blanchard's model are discussed as contingency theories. The document also summarizes leader-member exchange theory and other contemporary leadership approaches.
The document discusses leadership concepts including:
1. The nature of leadership including power, vision, and servant leadership.
2. Leadership traits and behaviors such as traits like drive and honesty, and styles like autocratic and democratic.
3. Contingency approaches to leadership including Fiedler's model, situational leadership, and path-goal theory.
This presentation discusses leadership styles and organizational structure in shipping companies. It was presented by four students and guided by Anurag Sir for a course in logistics and supply chain management. The presentation covers five main leadership styles - autocratic, charismatic, laissez-faire, democratic, and transformational. It also discusses several strategic leadership models and theories. The organizational structure section outlines the typical departments in a shipping company, including financial, human resources, marketing, operations/fleet management, technical, information technology, and security.
This document discusses leadership and leadership development. It covers the nature of leadership, important leadership traits and behaviors, contingency approaches to leadership, and personal leadership development. Key points include definitions of leadership and power, different leadership styles, contingency theories like Fiedler's model and situational leadership, and the importance of traits like vision and empowerment.
This document discusses project cost planning and definition. It covers cost definition, estimating project life cycle costs, cost budgeting and sources of funds, implications of cost to quality and risk, and cost control. Cost is defined as the price paid for something or the resources expended to achieve an objective. Life cycle costing involves estimating all costs over the full lifespan of a project. Cost budgeting examines sources of funds like profits, borrowing, and equity funding. Cost control requires thorough planning, estimating, accounting, and periodic comparisons to budgets.
This chapter discusses communication and perception in management. It covers the basic perception process, problems with perception, perception of others and self-perception. It also discusses formal and informal communication channels, coaching and counseling, nonverbal communication, and improving communication. The key topics covered are the perception filters that influence how people perceive stimuli, attribution theory which explains how people explain the behavior of others, and the formal and informal channels used in organizations to communicate.
The document discusses various aspects of control processes in management. It begins by outlining the basic steps in the control process, including establishing standards, comparing performance to standards, and taking corrective action. It then discusses different types of control, such as feedback, concurrent, and feedforward control. Specific control mechanisms are also examined, including objective control techniques like behavior control and output control. The document also covers accounting tools for financial control like budgets, financial statements, ratios, and economic value added. Non-financial aspects of control like customer retention and quality are briefly addressed.
The document discusses the human resource management process and its key components. It covers human resource planning including forecasting workforce needs and demand. It also discusses recruiting and selection methods like interviews, tests and background checks. The document provides guidelines for conducting structured interviews and evaluating applicants. It discusses complying with employment laws regarding discrimination and harassment.
This document summarizes key aspects of global business discussed in Chapter 8. It discusses three main topics:
1. What is global business? It involves the buying and selling of goods and services between people in different countries. Major forms include multinational corporations and direct foreign investment.
2. Major trade agreements and trade barriers. Agreements like GATT/WTO, NAFTA, and the EU help reduce barriers and promote trade. However, barriers like tariffs and quotas still exist in some cases.
3. Factors companies consider when expanding globally. These include access to growing markets, optimal locations for facilities, and minimizing political risk. Companies must also choose between consistency across countries or local adaptation.
This document summarizes key aspects of innovation management and managing change. It discusses technology cycles and how innovations occur in discontinuous jumps or through incremental improvements. It also outlines approaches to managing innovation, such as through experiential or compression methods. When it comes to managing change, the document discusses the forces driving change and ways to reduce resistance to change, like gaining support and involvement from stakeholders.
The document discusses strategies for achieving sustainable competitive advantage. It explains that sustainable competitive advantage requires resources that are valuable, rare, imperfectly imitable, and non-substitutable. It also outlines the strategy-making process of assessing need for change, conducting a situational analysis, and choosing strategic alternatives. Key corporate and industry-level strategies are also summarized such as the BCG matrix, grand strategies, Porter's five forces, and positioning strategies.
The document discusses various aspects of the planning process. It defines planning as a managerial activity that involves defining goals, strategies, and plans. There are different types of planning - informal planning is short-term and specific to a unit, while formal planning is long-term and organization-wide. Planning provides direction, reduces uncertainty, and sets standards for control. The benefits of planning include creating strategies, intensifying effort, providing direction and persistence. Potential pitfalls include detaching planners from reality, impeding change, and creating a false sense of certainty. Effective planning involves setting goals, developing commitment, effective action plans, tracking progress, and maintaining flexibility. Rational decision making is discussed as a defined process of problem identification, criteria
The document discusses ethics and ethical decision-making in the workplace. It defines ethics as moral principles that define right and wrong for individuals or groups. It describes potential unethical managerial behaviors related to authority, handling information, influencing others, and setting goals. It also discusses types of workplace deviance like production deviance, property deviance, political deviance, and personal aggression. The document outlines steps managers can take to encourage ethical behaviors and make ethical decisions, such as establishing standards and procedures, training employees, and enforcing rules consistently.
This document discusses characteristics of changing external environments that organizations face. It covers four aspects of environmental change: environmental change, environmental complexity, resource scarcity, and uncertainty. It then describes the general external environment and specific external environment. The general environment includes economic, technological, sociocultural, and political/legal trends. The specific environment includes customers, competitors, suppliers, industry regulations, and advocacy groups. It emphasizes the importance of environmental scanning, interpreting factors, and acting on threats and opportunities in changing environments.
The document provides an overview of the history and evolution of management theories from early skilled labor and family work to modern scientific management principles. It discusses key figures like Taylor who developed scientific management, the Gilbreths' studies of motion and time, management theorists like Fayol and Weber who developed bureaucratic structures, as well as human relations theorists like Follett, Mayo, and Barnard who emphasized treating workers well and the social aspects of organizations. The document also covers later developments in operations, information, systems, and contingency management approaches.
Sethurathnam Ravi: A Legacy in Finance and LeadershipAnjana Josie
Sethurathnam Ravi, also known as S Ravi, is a distinguished Chartered Accountant and former Chairman of the Bombay Stock Exchange (BSE). As the Founder and Managing Partner of Ravi Rajan & Co. LLP, he has made significant contributions to the fields of finance, banking, and corporate governance. His extensive career includes directorships in over 45 major organizations, including LIC, BHEL, and ONGC. With a passion for financial consulting and social issues, S Ravi continues to influence the industry and inspire future leaders.
Enriching engagement with ethical review processesstrikingabalance
New ethics review processes at the University of Bath. Presented at the 8th World Conference on Research Integrity by Filipa Vance, Head of Research Governance and Compliance at the University of Bath. June 2024, Athens
Integrity in leadership builds trust by ensuring consistency between words an...Ram V Chary
Integrity in leadership builds trust by ensuring consistency between words and actions, making leaders reliable and credible. It also ensures ethical decision-making, which fosters a positive organizational culture and promotes long-term success. #RamVChary
Designing and Sustaining Large-Scale Value-Centered Agile Ecosystems (powered...Alexey Krivitsky
Is Agile dead? It depends on what you mean by 'Agile'. If you mean that the organizations are not getting the promised benefits because they were focusing too much on the team-level agile "ways of working" instead of systemic global improvements -- then we are in agreement. It is a misunderstanding of Agility that led us down a dead-end. At Org Topologies, we see bright sparks -- the signs of the 'second wave of Agile' as we call it. The emphasis is shifting towards both in-team and inter-team collaboration. Away from false dichotomies. Both: team autonomy and shared broad product ownership are required to sustain true result-oriented organizational agility. Org Topologies is a package offering a visual language plus thinking tools required to communicate org development direction and can be used to help design and then sustain org change aiming at higher organizational archetypes.
12 steps to transform your organization into the agile org you deservePierre E. NEIS
During an organizational transformation, the shift is from the previous state to an improved one. In the realm of agility, I emphasize the significance of identifying polarities. This approach helps establish a clear understanding of your objectives. I have outlined 12 incremental actions to delineate your organizational strategy.
A team is a group of individuals, all working together for a common purpose. This Ppt derives a detail information on team building process and ats type with effective example by Tuckmans Model. it also describes about team issues and effective team work. Unclear Roles and Responsibilities of teams as well as individuals.
Public Speaking Tips to Help You Be A Strong Leader.pdfPinta Partners
In the realm of effective leadership, a multitude of skills come into play, but one stands out as both crucial and challenging: public speaking.
Public speaking transcends mere eloquence; it serves as the medium through which leaders articulate their vision, inspire action, and foster engagement. For leaders, refining public speaking skills is essential, elevating their ability to influence, persuade, and lead with resolute conviction. Here are some key tips to consider: https://joellandau.com/the-public-speaking-tips-to-help-you-be-a-stronger-leader/
Ganpati Kumar Choudhary Indian Ethos PPT.pptx, The Dilemma of Green Energy Corporation
Green Energy Corporation, a leading renewable energy company, faces a dilemma: balancing profitability and sustainability. Pressure to scale rapidly has led to ethical concerns, as the company's commitment to sustainable practices is tested by the need to satisfy shareholders and maintain a competitive edge.
Employment PracticesRegulation and Multinational CorporationsRoopaTemkar
Employment PracticesRegulation and Multinational Corporations
Strategic decision making within MNCs constrained or determined by the implementation of laws and codes of practice and by pressure from political actors. Managers in MNCs have to make choices that are shaped by gvmt. intervention and the local economy.
Org Design is a core skill to be mastered by management for any successful org change.
Org Topologies™ in its essence is a two-dimensional space with 16 distinctive boxes - atomic organizational archetypes. That space helps you to plot your current operating model by positioning individuals, departments, and teams on the map. This will give a profound understanding of the performance of your value-creating organizational ecosystem.
Comparing Stability and Sustainability in Agile SystemsRob Healy
Copy of the presentation given at XP2024 based on a research paper.
In this paper we explain wat overwork is and the physical and mental health risks associated with it.
We then explore how overwork relates to system stability and inventory.
Finally there is a call to action for Team Leads / Scrum Masters / Managers to measure and monitor excess work for individual teams.
Originally presented at XP2024 Bolzano
While agile has entered the post-mainstream age, possibly losing its mojo along the way, the rise of remote working is dealing a more severe blow than its industrialization.
In this talk we'll have a look to the cumulative effect of the constraints of a remote working environment and of the common countermeasures.
Leaders are concerned with doing the right thing, while managers are concerned with doing things right. Managers are more concerned with means, how to get things done, while leaders are more concerned with ends, what gets done. Leaders focus on visions, missions, goals, and objectives, while managers focus solely on productivity and efficiency. Managers see themselves as preservers of the status quo, while leaders see themselves as promoters of change, as challengers of the status quo in that they encourage creativity and risk taking. Managers are concerned with control and limiting the choices of others, while leaders are more concerned with expanding peoples' choices and options. Finally, managers solve problems so that others can do their work, while leaders and managers inspire and motivate others to find their own solutions.
While leaders are different from managers, in practice, organizations need them both. Managers are critical to getting out the day-to-day work and leaders are critical to inspiring employees and setting the organization's long-term direction. The key issue is the extent to which organizations are properly led or properly managed.
However, there are situations and circumstances in which leadership isn't necessary, or is unlikely to make much of a difference, or where leaders aren't to blame for poor performance. These are known as leadership substitutes and leadership neutralizers.
Leadership substitutes are subordinate, task, or organizational characteristics that make leaders redundant or unnecessary.
Leadership neutralizers are subordinate, task, or organizational characteristics that can interfere with a leader’s actions or make it impossible for a leader to influence followers’ performance. Unlike substitutes which simply take the place of leaders, leadership neutralizers create an "influence vacuum." In other words, leadership neutralizers create a need for leadership by ironically preventing leadership from working.
So do leaders always matter? Leadership substitutes and neutralizers indicate that sometimes they don't. However, this doesn't mean that leaders don't matter at all. Quite the opposite. Leaders do matter, but they're not superhuman. They can't do it all by themselves. And they can't fix every situation. In short, leadership is very important. But poor leadership isn't the cause of every organizational crisis and changing leaders isn't the solution to every company problem.
Trait theory says that effective leaders possess a similar set of traits or characteristics. Traits are relatively stable characteristics, such as abilities, psychological motives, or consistent patterns of behavior. For example, according to trait theory, leaders were commonly thought to be taller, more confident, and have greater physical stamina (i.e., higher energy levels). Trait theory is also known as the "great person" theory, because early versions of trait theory stated that leaders were born, not made. In other words, you either had the "right stuff" to be a leader, or you didn't. And if you didn't, there was no way to get "it."
Until recently, studies indicated that trait theory was wrong, that there were no consistent trait differences between leaders and nonleaders, or between effective and ineffective leaders. However, more recent evidence shows that "successful leaders are not like other people," that successful leaders are indeed different from the rest of us.
Drive refers to high levels of effort and is characterized by achievement, motivation, ambition, energy, tenacity, and initiative. Successful leaders also have a stronger desire to lead. They want to be in charge and think about ways to influence or convince others about what should or shouldn't be done. Honesty/integrity is also important to leaders. Honesty, that is, being truthful with others, is a cornerstone of leadership. Integrity is the extent to which leaders do what they said they would do. Leaders may be honest and have good intentions, but if they don't consistently deliver on what they promise, they won't be trusted.
Self-confidence, believing in one's abilities, also distinguishes leaders from nonleaders. Self-confidence is critical to leadership. This also means that leaders have emotional stability. Even when things go wrong, they remain even-tempered and consistent in their outlook and the way in which they treat others. Leaders who have a good knowledge of the business understand the key technological decisions and concerns facing their companies. More often than not, studies indicate that effective leaders have long, extensive experience in their industries.
Initiating structure is the degree to which a leader structures the roles of followers by setting goals, giving directions, setting deadlines, and assigning tasks. A leader's ability to initiate structure primarily affects subordinates' job performance.
Consideration is the extent to which a leader is friendly, approachable, supportive, and shows concern for employees. Consideration primarily affects subordinates' job satisfaction.
Blake and Mouton used two leadership behaviors—concern for people and concern for production– to categorize five different leadership styles. Both behaviors are rated on a 9-point scale with 1 representing low and 9 representing high.
As shown in Exhibit 14.5, the first basic assumption of Fiedler’s theory is that leaders are effective when the work groups they lead perform well.
Fiedler's contingency theory states that in order to maximize work group performance, leaders must be matched to the right leadership situation. More specifically, as shown in the next slide, the first basic assumption of Fiedler's theory is that leaders are effective when the work groups they lead perform well. So instead of judging leader effectiveness by what a leader does (i.e., initiating structure and consideration) or who the leader is (i.e., trait theory), Fiedler assesses leaders by the conduct and performance of the people they supervise. Second, Fiedler assumes that leaders are generally unable to change their leadership styles and that leaders will be more effective when their leadership styles are matched to the proper situation. The third assumption is that the favorableness of a situation for a leader depends on the degree to which the situation permits the leader to influence the behavior of group members. Thus, Fiedler's third assumption is consistent with our definition of leadership, which is the process of influencing others to achieve group or organizational goals.
When Fiedler uses the term leadership style, he means the way in which a leader generally behaves toward followers. However, Fiedler also assumes that leadership styles are tied to leaders' underlying needs and personality. And since personality and needs are relatively stable, he assumes that leaders are generally incapable of changing their leadership styles.
Fiedler uses a questionnaire called the Least Preferred Co-worker scale (LPC) to measure leadership style. When completing the LPC scale, people are instructed to consider all of the people with whom they have ever worked and then to choose the one person with whom they "least preferred" to work. Take a second yourself to identify your LPC. It's usually someone you had a big disagreement with, or, for whatever reason, you couldn't get along with or didn't like.
When Fiedler uses the term leadership style, he means the way in which a leader generally behaves toward followers. However, Fiedler also assumes that leadership styles are tied to leaders' underlying needs and personality. And since personality and needs are relatively stable, he assumes that leaders are generally incapable of changing their leadership styles.
Fiedler uses a questionnaire called the Least Preferred Co-worker scale (LPC) to measure leadership style. When completing the LPC scale, people are instructed to consider all of the people with whom they have ever worked and then to choose the one person with whom they "least preferred" to work. Take a second yourself to identify your LPC. It's usually someone you had a big disagreement with, or, for whatever reason, you couldn't get along with or didn't like.
Fiedler assumes that leaders will be more effective when their leadership styles are matched to the proper situation. More specifically, Fiedler defines situational favorableness as the degree to which a particular situation either permits or denies a leader the chance to influence the behavior of group members. In highly favorable situations, leaders find that their actions influence followers. However, in highly unfavorable situations, leaders have little or no success influencing them.
Three situational factors determine the favorability of a situation: leader-member relations, task structure, and position power. Leader-member relations, which is the most important situational factor, is how well followers respect, trust, and like their leaders. When leader-member relations are good, followers trust the leader and there is a friendly work atmosphere. Task structure is the degree to which the requirements of a subordinate's tasks are clearly specified. With highly structured tasks, employees have clear job responsibilities, goals, and procedures. Position power is the degree to which leaders are able to hire, fire, reward, and punish workers. The more influence leaders have over hiring, firing, rewards, and punishments, the greater their power.
After studying thousands of leaders and followers in hundreds of different situations, Fiedler found that the performance of relationship- and task-oriented leaders followed the pattern displayed in this slide. Relationship-oriented leaders with high LPC scores were better leaders (i.e., their groups performed more effectively) under moderately favorable situations. In moderately favorable situations, the leader may be liked somewhat, tasks may be somewhat structured, and the leader may have some position power. In this situation, a relationship-oriented leader improves leader-member relations, which is the most important of the three situational factors. In turn, morale and performance improve. By contrast, task-oriented leaders with low LPC scores were better leaders in highly favorable and unfavorable situations. Task-oriented leaders do well in favorable situations where leaders are liked, tasks are structured, and the leader has the power to hire, fire, reward, and punish. In these favorable situations, task-oriented leaders effectively step on the gas of a highly tuned car that's in perfect running condition. Their focus on performance sets the goal for the group, that then charges forward to meet it. But task-oriented leaders also do well in unfavorable situations where leaders are disliked, tasks are unstructured, and the leader doesn't have the power to hire, fire, reward, and punish. In these unfavorable situations, the task-oriented leader sets goals, which focuses attention on performance, and clarifies what needs to be done, thus overcoming low task structure. This is enough to jump-start performance, even if workers don't like or trust the leader.
In contrast to Fiedler's contingency theory, path-goal theory assumes that leaders can change and adapt their leadership styles.
In contrast to Fiedler's contingency theory, path-goal theory assumes that leaders can change and adapt their leadership styles. Figure 14.10 illustrates this process, showing that leaders change and adapt their leadership styles contingent on the subordinate they are leading or the environment in which that subordinate works.
Just as its name suggests, path-goal theory states that leaders can increase subordinate satisfaction and performance by clarifying and clearing the paths to goals and by increasing the number and kinds of rewards available for goal attainment. Said another way, leaders need to make clear how followers can achieve organizational goals, take care of problems that prevent followers from achieving goals, and then find more and varied rewards to motivate followers who achieve those goals.
However, leaders must meet two conditions in order for path clarification, path clearing, and rewards to increase followers' motivation and effort. First, leader behavior must be an immediate or future source of satisfaction for followers. Therefore, the things you do as a leader must please your followers today or lead to future activities or rewards that will satisfy them in the future. Second, while providing the coaching, guidance, support, and rewards necessary for effective work performance, leader behaviors must complement and not duplicate the characteristics of followers' work environments. Thus, leader behaviors must offer something unique and valuable to followers beyond what they're already experiencing as they do their jobs or beyond that which they can already do for themselves.
Directive leadership involves letting employees know precisely what is expected of them, giving them specific guidelines for performing tasks, scheduling work, setting standards of performance, and making sure that people follow standard rules and regulations.
Supportive leadership involves being friendly and approachable to employees, showing concern for them and their welfare, treating them as equals, and creating a friendly climate. Supportive leadership is very similar to considerate leader behavior. Supportive leadership often results in employee job satisfaction and satisfaction with leaders. This leadership style may also result in improved performance when it increases employee confidence, lowers employee job stress, or improves relations and trust between employees and leaders.
Participative leadership involves consulting employees for their suggestions and input before making decisions. Participation in decision making should help followers understand which goals are most important and clarify the paths to accomplishing them. Furthermore, when people participate in decisions, they become more committed to making them work.
Achievement-oriented leadership means setting challenging goals, having high expectations of employees, and displaying confidence that employees will assume responsibility and put forth extraordinary effort.
Perceived ability is simply how much ability subordinates believe they have for doing their jobs well. Subordinates who perceive that they have a great deal of ability will be dissatisfied with directive leader behaviors. Experienced employees are likely to react in a similar way. Since they already know how to do their jobs (or perceive that they do), they don't need or want close supervision. By contrast, subordinates with little experience or little perceived ability will welcome directive leadership. Locus of control is a personality measure that indicates the extent to which people believe that they have control over what happens to them in life. Internals believe that what happens to them, good or bad, is largely a result of their choices and actions. Externals, on the other hand, believe that what happens to them is caused by external forces outside of their control.
As in Fiedler's contingency theory, task structure is the degree to which the requirements of a subordinate's tasks are clearly specified. When task structure is low and tasks are unclear, directive leadership should be used, because it complements the work environment. However, when task structure is high and tasks are clear, directive leadership duplicates what task structure provides and is not needed. Alternatively, when tasks are stressful, frustrating, or dissatisfying, leaders should respond with supportive leadership.
The formal authority system is an organization's set of procedures, rules, and policies. When the formal authority system is unclear, directive leadership complements the situation by reducing uncertainty and increasing clarity. But when the formal authority system is clear, directive leadership is redundant and should not be used.
Primary work group refers to the amount of work-oriented participation or emotional support that is provided by an employee's immediate work group.
Hersey and Blanchard’s Situational Leadership theory is based on the idea of follower readiness. They argue that employees have different levels of readiness for handling different jobs, responsibilities, and work assitgnments. Accordingly, Hersey and Blanchard’s situational theory states that leaders need to adjust their leadership styles to match followers’ readiness.
Worker readiness is composed of two components. Job readiness consists of the amount of knowledge, skill, ability, and experience people have to perform their jobs. Psychological readiness is a feeling of self-confidence or self-respect.
Job readiness and psychological readiness are combined to produce four different levels of readiness in Hersey and Blanchard’s Situational Leadership theory.
The lowest level, R1, represents insecure people who are neither willing nor able to take responsibility for guiding their own work. R2 represents people who are confident and are willing but not able to take responsibility for guiding their own work. R3 represents people who are insecure and are able but not willing to take responsibility. And R4 represents people who are confident and willing and able to take responsibility
Situational theory defines leadership styles in terms of task behavior and relationship behavior. These two behaviors can be combined to form four different leadership styles: telling, selling, participating, and delegating.
Many people believe that making tough decisions is at the heart of leadership. However, experienced leaders will tell you that deciding how to make decisions is just as important. The normative decision theory (also known as the Vroom-Yetton-Jago Model) helps leaders decide how much employee participation (from none to letting employees make the entire decision) should be used when making decisions.
While nearly all of the other leadership theories in this chapter have specified leadership styles, that is, the way a leader generally behaves toward followers, the normative decision theory instead specifies five different decision styles or ways of making decisions. As shown in this slide, those styles vary from autocratic decisions (AI or AII), in which leaders make the decisions by themselves, to consultative decisions (CI or CII), in which leaders share problems with subordinates but still make the decisions themselves, to group decisions (GII), in which leaders share the problems with subordinates and then have the group make the decisions.
According to the normative decision theory, using the right degree of employee participation improves the quality of decisions and the extent to which employees accept and are committed to decisions.
Visionary leadership creates a positive image of the future that motivates organizational members and provides direction for future planning and goal setting.
Charisma is a Greek word meaning “gift from God.” The Greeks saw people with charisma as divinely inspired and capable of incredible accomplishments. German sociologist Max Weber viewed charisma as a special bond between leaders and followers.
Charismatic leaders have strong, confident, dynamic personalities that attract followers and enable them to create strong bonds between themselves and their followers. Followers trust charismatic leaders, are loyal to them, and are inspired to work toward the accomplishment of the leader’s vision. Because of these qualities, followers become devoted to charismatic leaders and may go to extraordinary lengths to please them. Therefore, we can define charismatic leadership as the behavioral tendencies and personal characteristics of leaders that create an exceptionally strong relationship between them and their followers. Charismatic leaders also:
articulate a clear vision for the future that is based on strongly held values or morals,
model those values by acting in a way consistent with the vision,
communicate high performance expectations to followers, and
display confidence in followers' abilities to achieve the vision.
In general, there are two kinds of charismatic leaders, ethical charismatics and unethical charismatics. Ethical charismatics provide developmental opportunities for followers, are open to positive and negative feedback, recognize others' contributions, share information, and have moral standards that emphasize the larger interests of the group, organization, or society. Ethical charismatics produce stronger commitment, higher satisfaction, more effort, better performance, and greater trust.
By contrast, unethical charismatics pose a tremendous risk for companies. Followers can be just as supportive and committed to unethical charismatics as they are to ethical charismatics. However, unethical charismatics control and manipulate followers, do what is best for themselves instead of their organizations, only want to hear positive feedback, only share information that is beneficial to themselves, and have moral standards that put their interests before everyone else's. John Thompson, a management consultant, said, "Often what begins as a mission becomes an obsession. Leaders can cut corners on values and become driven by self-interest. Then they may abuse anyone who makes a mistake."
While charismatic leaders are able to articulate a clear vision, model values consistent with that vision, communicate high performance expectations, and establish very strong relationships between themselves and their followers, transformational leadership goes further by generating awareness and acceptance of a group's purpose and mission and by getting employees to see beyond their own needs and self-interest for the good of the group. Transformational leaders, like charismatic leaders, are visionary. However, transformational leaders transform their organizations by getting their followers to accomplish more than they intended and even more than they thought possible. Transformational leaders are able to make their followers feel as if they are a vital part of the organization and can help them see how their jobs fit with the organization’s vision. By linking individual and organizational interests, transformational leaders encourage followers to make sacrifices for the organization, because they know that they will prosper when the organization prospers. There are four components of transformational leadership: charismatic leadership or idealized influence, inspirational motivation, intellectual stimulation, and individualized consideration.
Finally, a distinction needs to be drawn between transformational leadership and transactional leadership. While transformational leaders use visionary and inspirational appeals to influence followers, transactional leadership is based on an exchange process, in which followers are rewarded for good performance and punished for poor performance. When leaders administer rewards fairly and offer followers the rewards that they want, followers will often reciprocate with effort. However, transactional leaders often over-rely on discipline or threats to bring performance up to standards. While this may work in the short run, it's much less effective in the long run.
Charismatic leadership or idealized influence means that transformational leaders act as role models for their followers. Because transformational leaders put others' needs ahead of their own and share risks with followers, they are admired, respected, and trusted, and followers want to emulate them. Thus, in contrast to purely charismatic leaders (especially unethical charismatics), transformational leaders can be counted on to do the right thing and maintain high standards for ethical and personal conduct.
Inspirational motivation means that transformational leaders motivate and inspire followers by providing meaning and challenge to their work. By clearly communicating expectations and demonstrating commitment to goals, transformational leaders help followers envision future states, such as the organizational vision. In turn, this leads to greater enthusiasm and optimism about the future.
Intellectual stimulation means that transformational leaders encourage followers to be creative and innovative, to question assumptions, and to look at problems and situations in new ways, even if they are different from the leader's ideas.
Individualized consideration means that transformational leaders pay special attention to followers' individual needs by creating learning opportunities, accepting and tolerating individual differences, encouraging two-way communication and being a good listener.