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  • The trait theory of leadership looks at personality, social, physical, or intellectual traits that differentiate leaders from nonleaders. Initially this theory was based on studies that looked at over 80 different traits, which allowed almost anything to be defined as leadership. A breakthrough occurred when researchers began to organize the traits into categories and this became known as the Big Five Personality Framework where five groups of traits were found to be consistently present among leaders. Some essential leadership traits include extroversion, conscientiousness, openness, and emotional intelligence (EI), although the link between EI and leadership has not been fully explored.With the many years of research dedicated to the trait theory of leadership, it is widely accepted that traits do predict leadership. However, it is more likely that they predict the emergence of a leader than the effectiveness of a leader.
  • Two key studies in the area of behavioral leadership advanced our understanding of the theory. The first was done at Ohio State University. They looked at important dimensions of leadership behavior and began with over 1000 dimensions. In the end the Ohio State studies were able to narrow it down to two dimensions – initiating structure and consideration. Initiating structure is when the leader is able to define and structure their role and that of their employees to work toward the goals of the organization. Consideration is the ability of the leader to gain the trust and respect of their followers and to help them feel appreciated for what they do. Both behaviors have proven to be very important in an effective leader. The University of Michigan Studies identified two key dimensions of leadership behavior as well. They are similar in nature to the Ohio State findings. However, the University of Michigan studies classified these behaviors as employee-oriented which looks at the interpersonal relationships between the leader and their followers; and production-oriented which focuses on the technical aspect of the job. Again, both are important for successful leadership.
  • In this theory Fiedler is trying to match the leader to the context. He proposes that leadership style is fixed. So that if the situation needs a charismatic leader and your current leader does not exhibit that style, you need to change leaders. This leadership style can be determined by taking the LPC questionnaire (least preferred coworker). After the leadership style is determined, you can match the leader to the situation. There are three dimensions to find a successful match. The first situational factor is the leader-member relationship; this ties back to our behavioral studies by looking at the degree of trust and respect the employees have for the leader. The second factor is the amount of structure that is embedded in job assignments. The last factor is the amount of influence the leader has over decisions that represent power such as hiring, firing, and rewards.
  • Contingency theories have failed to account for followers and heterogeneous leadership approaches to individual workers. The Leader-Member Exchange theory begins to account for this. In this theory the premise is that because of time pressures leaders very quickly form special relationships with a small group of employees, the “in-group.” This group tends to be like the leader in terms of gender, race, age, and other characteristics. This group quickly becomes part of the leader’s inner circle of communication and will receive more time and attention from the leader. This group will experience more stress because of the added workload. The “outgroup” is made of people who tend to be different than the leader and correspondingly receive fewer exchanges. As a result they are more likely to experience stress because of their relationship and may retaliate against the organization as they become discontent with their assignments.
  • Charisa comes from the Greek word meaning gift. When talking about a charismatic leader one will refer to someone with certain gifts or abilities. A charismatic leader will often gain followers through personality rather than through power or authority. This chart takes a look at key characteristics that are associated with a charismatic leader. These are often traits that a leader is born with, thus continuing the debate whether leaders are born or developed. The leader must have vision, expressed as an idealized goal. The leader must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so the leader needs to remain sensitive to the feelings and needs of their followers. Throughout the process the leader must be engaging in behaviors that are perceived as counter to norms.
  • Evidence shows a four-step process can help the charismatic leader utilize their characteristics to influence their followers. First the leader articulates a long-term strategy for achieving a goal. This strategy should fit the vision and uniqueness of the organization. Next the leader needs to formalize that vision by creating a vision statement. Charismatic leaders will often use this statement to reinforce the goal and purpose of the organization. This vision is communicated in a way that expresses the leader’s excitement and commitment to the goal. Next the leader will use his words and actions to communicate a new set of values for the followers to imitate. Then the charismatic leader will try to find behaviors that demonstrate their commitment to the vision. They will choose behaviors that will help followers “catch” the emotions the leader is conveying and help achieve buy-in of the followers.Finally, the charismatic leader engages in emotion-inducing and often unconventional behavior to demonstrate courage and conviction about the vision to help the followers “catch” the vision.
  • 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.
  • Authentic leadership is a growing area of research. There are two components that need to be addressed when discussing authenticity in leadership. First we must look at authentic leaders. These are leaders who engage in reflection and understand who they are, what they believe and bring those two aspects together in their actions. The second component is the intersection of ethics and leadership. Over the past several years, we have been involved in what many have called an ethical crisis in the business community. When we look at leadership, we need to look at more than the results of the leader – we must also look at the steps the leader took to achieve those results.
  • Mentoring is defined as someone with more experience supporting someone with less experience. It is a way for the leadership of this generation to invest in individuals and develop future leaders. Mentoring has positive effects on both the career and the psychological functions of the individual being mentored.
  • Leaders don’t just happen to show up at the organization. They must be found and developed. When looking for leaders, it is important to understand what leadership characteristics and style will best match with your organization and find ways to identify leaders with those attributes. Once you have a leader or recognize leadership potential, it is essential to train and develop your leaders to effectively develop followers within your context.
  • Most of the theories we have explored are based on research gathered in English-speaking countries. When you look at research in other areas, you will find different variables that will impact both leaders and followers. It is very important when engaging in cross-cultural business opportunities that the difference in culture is considered. This is true when doing business in other countries, but it is also important to remember that many organizations are cross-cultural because of the make-up of their employees.The GLOBE study looked at 18,000 leaders in over 800 organizations in 62 countries. They found that the characteristics that determined transformational leadership were consistent across cultures. This is significant because it disputes the contingency view that leadership is dependent upon culture.
  • Leadership is a complex function in an organization but essential for success. Individuals, groups, and organizations all need leaders, and there are many factors that define a successful leader. Each organization must assess what they need in their leader in order to be effective.
  • leadership

    1. 1. Leadership Module 9
    2. 2. Contents…..• Leaders Vs. Managers• Trait Theories• Behavioural Theories – – Ohio State studies, – University of Michigan studies• Contingency Theories – Fiedler Model – Hershey and Blanchard’s Situational Theory – Path Goal Theory• LMX Theory
    3. 3. Continued…• Contemporary issues in leadership – Charismatic and transformational leadership – Authentic leadership• Contemporary leadership roles – Mentoring, self leadership, the E-age and on line leadership• Finding and creating effective leaders
    4. 4. What Is Leadership?LeadershipThe ability to influence agroup toward theachievement of a visionor set of goals.ManagementUse of authority inherentin designated formal rankto obtain compliance fromorganizational members.
    5. 5. Principles of Warren BuffetThere was a one hour interview on CNBC with Warren Buffet, the second richestman who has donated $31 billion to charity. Here are some very interesting aspectsof his life:1. He bought his first share at age 11 and he now regrets that he started too late!2. He bought a small farm at age 14 with savings from delivering newspapers.3. He still lives in the same small 3-bedroom house in mid-town Omaha, that hebought after he got married 50 years ago. He says that he has everything he needsin that house. His house does not have a wall or a fence.4. He drives his own car everywhere and does not have a driver or security peoplearound him.
    6. 6. 5. He never travels by private jet, although he owns the worlds largest private jetcompany.6. His company, Berkshire Hathaway, owns 63 companies. He writes only oneletter each year to the CEOs of these companies, giving them goals for the year.He never holds meetings or calls them on a regular basis. He has given his CEOsonly two rules. Rule number 1: do not lose any of your share holders money.Rule number 2: Do not forget rule number 1.7. He does not socialize with the high society crowd. His past time after he getshome is to make himself some pop corn and watch Television.8. Bill Gates, the worlds richest man met him for the first time only 5 years ago.Bill Gates did not think he had anything in common with Warren Buffet. So hehad scheduled his meeting only for half hour. But when Gates met him, themeeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.9. Warren Buffet does not carry a cell phone, nor has a computer on his desk.
    7. 7. His advice to young people: "Stay away from credit cards and invest in yourself andRemember:A. Money doesnt create man but it is the man who created money.B. Live your life as simple as you are.C. Dont do what others say, just listen them, but do what you feel good.D. Dont go on brand name; just wear those things in which you feel comfortable.E. Dont waste your money on unnecessary things; just spend on them who really inneed rather.F. After all its your life then why give chance to others to rule our life."
    8. 8. Leaders and Managers
    9. 9. Trait Theories Leadership Traits: • Ambition and energyTheories that consider • The desire to leadpersonality, social, physical, or intellectual traits to • Honest and integritydifferentiate leaders from • Self-confidencenon-leaders. • Intelligence • High self-monitoring • Job-relevant knowledge
    10. 10. Trait Theories of Leadership• Not very useful until matched with the Big Five Personality Framework• Essential Leadership Traits – Extroversion – Conscientiousness – Openness – Emotional Intelligence (Qualified)• Traits can predict leadership, but they are better at predicting leader emergence than effectiveness.
    11. 11. Trait TheoriesLimitations:• No universal traits found that predict leadership in all situations.• Traits predict behavior better in “weak” than “strong” situations.• Unclear evidence of the cause and effect of relationship of leadership and traits.• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.
    12. 12. Behavioral TheoriesTheories proposing that specific behaviorsdifferentiate leaders from non-leaders.• Trait theory:Trait theory: leadership is inherent, so we must identify the leaderbased on his or her traits• Behavioral theory:Leadership is a skill set and can be taught to anyone, so we must identify the proper behaviors to teach potential leaders
    13. 13. Important Behavioral Studies Ohio • Initiating structure • Consideration State • Production-orientedMichigan • Employee-oriented
    14. 14. Ohio State StudiesInitiating Structure 1. Assigns group members to particularThe extent to which a leader is tasks 2. Expects workers to maintain definitelikely to define and structure his standards of performanceor her role and those of sub- 3. Emphasizes the meetings of deadlinesordinates in the search for goalattainment.ConsiderationThe extent to which a leader islikely to have job relationshipscharacterized by mutual trust,respect for subordinate’s ideas,and regard for their feelings.
    15. 15. University of Michigan StudiesProduction-Oriented LeaderOne who emphasizes technicalor task aspects of the job.Employee-Oriented LeaderEmphasizing interpersonal relations;taking a personal interest in theneeds of employees and acceptingindividual differences amongmembers.
    16. 16. Contingency Theories1. Fiedler Model2. Hersey Blanchard’s situational theory3. Path-goal theory
    17. 17. Fiedler’s Contingency ModelThe theory that effective group performancedepends on a proper match between a leader’s styleof interacting with subordinates and the degree towhich the situation gives control and influence to theleader. Least Preferred Co-Worker (LPC) Questionnaire An instrument that purports to measure whether a person is task- or relationship-oriented.
    18. 18. Fiedler’s Model: Defining the Situation Leader-Member Relations The degree of confidence, trust, and respect subordinates have in their leader. Task Structure The degree to which the job assignments are procedurized. Position Power Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.
    19. 19. Findings from Fiedler Model EXHIBIT 11–2
    20. 20. Hersey and Blanchard’s Situational Leadership TheorySituational Leadership Theory (SLT)A contingency theory that focuses on followers’readiness. Unable and Unable but Able and Able and Unwilling Willing Unwilling Willing Follower readiness: ability and willingnessLeader: decreasing needfor support and supervision Directive High Task and Relationship Supportive Monitoring Orientations Participative
    21. 21. Leadership Styles and Follower Readiness (Hersey and Blanchard)Follower Unwilling WillingReadiness Able Supportive Monitoring Participative Leadership Styles High Task Unable Directive and Relationship Orientations
    22. 22. Leader–Member Exchange Theory Leader-Member Exchange (LMX) Theory Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.
    23. 23. In-Group Out-Group• Members are • Managed by formal similar to leader rules and policies• In the leader’s • Receive less of the inner circle of leader’s attention / communication fewer exchanges• Receives more • More likely to time and retaliate against the attention from organization leader• Gives greater responsibility and rewards
    24. 24. Leader-Member Exchange Theory
    25. 25. Path-Goal Theory Developed by Robert House. Extracted from Ohio State Studies and Expectancy theory of motivation. The theory states that it is the leader’s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.
    26. 26. The Path-Goal Theory
    27. 27. Charismatic Leadership• Charisma means gift in Greek Unconventional Vision Behavior Sensitivity to Personal Risk Followers
    28. 28. Charismatic LeadershipHow do charismatic leaders influence followers? Create a Articulate a Create a new Demonstrate Vision Vision set of Values the Vision Statement Famous examples of charismatic leaders are Winston Churchill, Bill Clinton, Mother Teresa and Adolph Hitler.
    29. 29. Transformational Leaders • Inspire followers to transcend their self-interests for the good of the organization • Contingent Reward • Management by Exception (active/ passive) Transactional • Laissez-Faire • Idealized Influence • Inspirational MotivationTransformational • Intellectual Stimulation • Individualized Consideration Famous transformational leaders include Martin Luther King Jr. and Walt Disney.
    30. 30. Authentic Leaders• Authentic leaders know who they are, what they believe in and value, and act upon those values and beliefs.Ethics and Leadership• Leadership is not free from values. When we assess leadership, we must assess not just the goals themselves but also the means by which those goals are achieved.
    31. 31. Mentoring – Leading for the Future• Mentor: A senior employee who supports a less experienced employee. Psychological Career Functions Functions Helping the protégé gain skills and Counseling the protégé to bolster abilities his/her confidence Lobbying for the protégé to get Sharing personal experiences with better assignments the protégé Providing exposure to influential Providing friendship and individuals in the organization acceptance Acting as a sounding board for Acting as a role model ideas
    32. 32. Finding and Creating Effective Leaders Selecting Leaders Training Leaders
    33. 33. Global Implications• These leadership theories are primarily studied in English-speaking countries• GLOBE does have some country-specific insights – Indian employees want action-oriented and charismatic leaders. – 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
    34. 34. Summary and Managerial Implications• Leadership is central to understanding group behavior as the leader provides the direction.• Extroversion, conscientiousness, and openness all show consistent relationships to leadership.• Behavioral approaches have narrowed leadership down into two usable dimensions.• Need to take into account the situational variables, especially the impact of followers.• Research on charismatic and transformational leadership has made major contributions to our understanding of leadership.• Leaders must be seen as authentic and trustworthy.• Investment must be made in the future through mentoring and training leaders.