Leadership styles _organisational_behavior


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Leadership styles _organisational_behavior

  1. 1. Table of Contents<br />CONTENTS PAGE NO<br />Introduction and Definition3<br />Qualities/ characteristics of a leader4<br />Factors of leadership5<br />Leadership Styles6<br />Theories of Leadership11<br />Leadership & Management 14<br />Case study16<br />Introduction<br /> "It is not the critic who counts; not the man who points out how the strong man stumbled, or where the doer of deeds could have done them better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood; who strives valiantly; who errs and comes short again and again; who knows the great enthusiasms, the great devotions; who spends himself in a worthy cause; who, at the best, knows in the end the triumph of high achievement, and who, at the worst, if he fails, at least fails while daring greatly, so that his place shall never be with those timid souls who know neither victory or defeat." — Theodore Roosevelt, American President<br />Definition:<br />Many people believe that leadership is simply being the first, biggest or most powerful. Leadership in organizations has a different and more meaningful definition. Very simply put, a leader is interpreted as someone who sets direction in an effort and influences people to follow that direction -- the people can be oneself, another individual, a group, an organization or a community. How they set that direction and influence people depends on a variety of factors that we'll consider later on below.<br />Is a leader born or made? While there are people who seem to be naturally endowed with more leadership abilities than others, we believe that people can learn to become leaders by concentrating on improving particular leadership skills.<br />Qualities/ Characteristics of Leaders:<br />1. Visionary: A leader with vision has a clear, vivid picture of where to go, as well as a firm grasp on what success looks like and how to achieve it. But it’s not enough to have a vision; leaders must also share it and act upon it. Jack Welch, former chairman and CEO of General Electric Co., said, "Good business leaders create a vision, articulate the vision, passionately own the vision and relentlessly drive it to completion."<br />2. Humane: Leaders with humility recognize that they are no better or worse than other members of the team. A humble leader is not self-effacing but rather tries to elevate everyone. Leaders with humility also understand that their status does not make them a god. Mahatma Gandhi is a role model for Indian leaders, and he pursued a “follower-centric” leadership role.<br />3. Broadminded: Broadminded means being able to listen to new ideas, even if they do not conform to the usual way of thinking. Good leaders are able to suspend judgment while listening to others’ ideas, as well as accept new ways of doing things that someone else thought of. Openness builds mutual respect and trust between leaders and followers, and it also keeps the team well supplied with new ideas that can further its vision.<br />4. Imaginative: Imagination/Creativity is the ability to think differently, to get outside of the box that constrains solutions. Creativity gives leaders the ability to see things that others have not seen and thus lead followers in new directions. The most important question that a leader can ask is, “What if …?” Possibly the worst thing a leader can say is, “I know this is a dumb question ...”<br />5. Integrity: It is the integration of outward actions and inner values. A person of integrity is the same on the outside and on the inside. Such an individual can be trusted because he or she never veers from inner values, even when it might be expeditious to do so. A leader must have the trust of followers and therefore must display integrity.<br />6. Inspirational: A leader must create an inspiring culture within their organization. This results in supply of a shared vision and inspires people to achieve more than they may ever have dreamed possible. They are able to articulate a shared vision in a way that inspires others to act. Great leaders lead by example. People do what they have to do for a manager. Inspired and energized people do their best for an inspirational leader<br />7. Tolerant: A leader should be tolerant of uncertainty and should always remain tranquil, composed and persistent to his/her goals.<br />8. Dependability: A dependable leader allows others to relax because they know the leader will follow through with commitments. Do what you say you are going to do, and others will follow your example. Dependable leaders are always on time, never make excuses and stay on the job until it is done.<br />9. Decisiveness: A good leader has the ability to make decisions in a timely manner. Get all of the facts first, and then make up your mind when you have fully weighed each fact and option.<br />Factors of Leadership <br /> <br />Leader<br />You must have an honest understanding of who you are, what you know, and what you can do. Also, note that it is the followers, not the leader or someone else who determines if the leader is successful. If they do not trust or lack confidence in their leader, then they will be uninspired. To be successful you have to convince your followers, not yourself or your superiors, that you are worthy of being followed. <br />Followers<br />Different people require different styles of leadership.A person who lacks motivation requires a different approach than one with a high degree of motivation. You must know your people! The fundamental starting point is having a good understanding of human nature, such as needs, emotions, and motivation. You must come to know your employees' be, know, and do attributes.<br />Communication<br />You lead through two-way communication. Much of it is nonverbal. For instance, when you "set the example," that communicates to your people that you would not ask them to perform anything that you would not be willing to do. What and how you communicate either builds or harms the relationship between you and your employees. <br />Situation<br />All situations are different. What you do in one situation will not always work in another. You must use your judgment to decide the best course of action and the leadership style needed for each situation. For example, you may need to confront an employee for inappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak, then the results may prove ineffective. <br />Leadership Styles<br />1. Autocratic Leadership: This is often considered the classical approach. It is one in which the manager retains as much power and decision-making authority as possible. The manager does not consult employees, nor are they allowed to give any input. Employees are expected to obey orders without receiving any explanations. The motivation environment is produced by creating a structured set of rewards and punishments. This leadership style has been greatly criticized during the past 30 years. Some studies say that organizations with many autocratic leaders have higher turnover and absenteeism than other organizations. These studies say that autocratic leaders:<br />• Rely on threats and punishment to influence employees<br />• Do not trust employees<br />• Do not allow for employee input<br />Yet, autocratic leadership is not all bad. Sometimes it is the most effective style to use. These situations can include:<br />• New, untrained employees who do not know which tasks to perform or which Procedures to follow<br />• Effective supervision can be provided only through detailed orders and instructions<br />• Employees do not respond to any other leadership style<br />• There are high-volume production needs on a daily basis<br />• There is limited time in which to make a decision<br />• A manager’s power is challenged by an employee<br />• The area was poorly managed<br />• Work needs to be coordinated with another department or organization<br />The autocratic leadership style should not be used when:<br />• Employees become tense, fearful, or resentful<br />• Employees expect to have their opinions heard<br />• Employees begin depending on their manager to make all their decisions<br />• There is low employee morale, high turnover and absenteeism and work stoppage<br />2. Bureaucratic Leadership: Bureaucratic leadership is where the manager manages “by the book” Everything must be done according to procedure or policy. If it isn’t covered by the book, the manager refers to the next level above him or her. This manager is more of a police officer than a leader. He or she enforces the rules. This is a very appropriate style for work involving serious safety risks (such as working with machinery, with toxic substances or at heights) or where large sums of money are involved (such as cash-handling). In other situations, the inflexibility and high levels of control exerted can demoralize staff, and can diminish the organization's ability to react to changing external circumstances.<br />This style can be effective when:<br />• Employees are performing routine tasks over and over.<br />• Employees need to understand certain standards or procedures.<br />• Employees are working with dangerous or delicate equipment that requires a definite set of procedures to operate.<br />• Safety or security training is being conducted.<br />• Employees are performing tasks that require handling cash.<br />This style is ineffective when:<br />• Work habits forms that are hard to break, especially if they are no longer useful.<br />• Employees lose their interest in their jobs and in their fellow workers.<br />• Employees do only what is expected of them and no more.<br />3.Democratic Leadership: The democratic leadership style is also called the participative style as it encourages employees to be a part of the decision making. The democratic manager keeps his or her employees informed about everything that affects their work and shares decision making and problem solving responsibilities. This style requires the leader to be a coach who has the final say, but gathers information from staff members before making a decision. Democratic leadership can produce high quality and high quantity work for long periods of time. Many employees like the trust they receive and respond with cooperation, team spirit, and high morale. Typically the democratic leader:<br />• Develops plans to help employees evaluate their own performance<br />• Allows employees to establish goals<br />• Encourages employees to grow on the job and be promoted<br />• Recognizes and encourages achievement.<br />Like the other styles, the democratic style is not always appropriate. It is most successful when used with highly skilled or experienced employees or when implementing operational changes or resolving individual or group problems.<br />The democratic leadership style is most effective when:<br />• The leader wants to keep employees informed about matters that affect them.<br />• The leader wants employees to share in decision-making and problem-solving duties.<br />• The leader wants to provide opportunities for employees to develop a high sense of personal growth and job satisfaction.<br />• There is a large or complex problem that requires lots of input to solve.<br />• Changes must be made or problems solved that affect employees or groups of employees.<br />• You want to encourage team building and participation.<br />Democratic leadership should not be used when:<br />• There is not enough time to get everyone’s input.<br />• It’s easier and more cost-effective for the manager to make the decision.<br />• The business can’t afford mistakes.<br />• The manager feels threatened by this type of leadership.<br />• Employee safety is a critical concern.<br />4. Laissez-Faire Leadership: This French phrase means “leave it be” and is used to describe a leader who leaves his or her colleagues to get on with their work. It can be effective if the leader monitors what is being achieved and communicates this back to his or her team regularly.<br />The laissez-faire leadership style is also known as the “hands-off¨ style. It is one in which the manager provides little or no direction and gives employees as much freedom as possible. All authority or power is given to the employees and they must determine goals, make decisions, and resolve problems on their own.<br />Most often, laissez-faire leadership works for teams in which the individuals are very<br />experienced and skilled self-starters. Unfortunately, it can also refer to situations where<br />managers are not exerting sufficient control.<br />This is an effective style to use when:<br />• Employees are highly skilled, experienced, and educated.<br />• Employees have pride in their work and the drive to do it successfully on their own.<br />• Outside experts, such as staff specialists or consultants are being used<br />• Employees are trustworthy and experienced.<br />This style should not be used when:<br />• It makes employees feel insecure at the unavailability of a manager.<br />• The manager cannot provide regular feedback to let employees know how well they are doing.<br />• Managers are unable to thank employees for their good work.<br />• The manager doesn’t understand his or her responsibilities and is hoping the employees can cover for him or her.<br />5. Charismatic Leadership: A charismatic leadership style can appear similar to a transformational leadership style, in that the leader injects huge doses of enthusiasm into his or her team, and is very energetic in driving others forward. It is interesting to watch a Charismatic Leader 'working the room' as they move from person to person. They pay much attention to the person they are talking to at any one moment, making that person feel like they are, for that time, the most important person in the world.<br />Charismatic Leaders pay a great deal of attention in scanning and reading their environment, and are good at picking up the moods and concerns of both individuals and larger audiences. They then will hone their actions and words to suit the situation.<br />Charismatic Leaders use a wide range of methods to manage their image and, if they are not naturally charismatic, may practice assiduously at developing their skills. They may engender trust through visible self-sacrifice and taking personal risks in the name of their beliefs. They will show great confidence in their followers. They are very persuasive and make very effective use of of body language as well as verbal language.<br />Charismatic Leaders who are building a group, whether it is a political party, a cult or a business team, will often focus strongly on making the group very clear and distinct, separating it from other groups. They will then build the image of the group, in particular in the minds of their followers, as being far superior to all others.<br />The Charismatic Leader will typically attach themselves firmly to the identity of the group, such that to join the group is to become one with the leader. In doing so, they create an unchallengeable position for themselves. However, charismatic leaders can tend to believe more in themselves than in their teams. This can create a risk that a project, or even an entire organization, might collapse if the leader were to leave: in the eyes of their followers, success is tied up with the presence of the charismatic leader. As such, charismatic leadership carries great responsibility, and needs long-term commitment from the leader.<br />Some other leadership styles include The Servant style, Task oriented style, Transactional, Transformational, people oriented and situational leadership style. <br />4. Transformational Leadership: "Transforming leadership occurs when one or more persons engage with others in such a way that leaders and followers raise one another to higher levels of motivation and morality…transforming leadership ultimately becomes moral in that it raises the level of human conduct and ethical aspirations of both the leader and led and, thus, has a transforming effect on both."The most significant essence of transformational leadership is then the relationship between leaders and followers. Transformational leaders have the ability to identify their own values, and those of others in the organization, to guide their actions, thus developing a shared, conscious way of behaving and doing. Power is distributed because these leaders do not see power as limited but expansive. Transformational leaders are concerned with substance and truly empower others.<br />The full range of leadership introduces four elements of transformational leadership:<br />Individualized Consideration – the degree to which the leader attends to each follower's needs, acts as a mentor or coach to the follower and listens to the follower's concerns and needs. The leader gives empathy and support, keeps communication open and places challenges before the followers. This also encompasses the need for respect and celebrates the individual contribution that each follower can make to the team. The followers have a will and aspirations for self development and have intrinsic motivation for their tasks.<br />Intellectual Stimulation – the degree to which the leader challenges assumptions, takes risks and solicits followers' ideas. Leaders with this style stimulate and encourage creativity in their followers. They nurture and develop people who think independently. For such a leader, learning is a value and unexpected situations are seen as opportunities to learn. The followers ask questions, think deeply about things and figure out better ways to execute their tasks.<br />Inspirational Motivation – the degree to which the leader articulates a vision that is appealing and inspiring to followers. Leaders with inspirational motivation challenge followers with high standards, communicate optimism about future goals, and provide meaning for the task at hand. Followers need to have a strong sense of purpose if they are to be motivated to act. Purpose and meaning provide the energy that drives a group forward. The visionary aspects of leadership are supported by communication skills that make the vision understandable, precise, powerful and engaging. The followers are willing to invest more effort in their tasks, they are encouraged and optimistic about the future and believe in their abilities.<br />Idealized Influence – Provides a role model for high ethical behavior, instills pride, gains respect and tru<br />Theories on Leadership<br />1. "Great Man" Theories:<br />Great Man theories assume that the capacity for leadership is inherent – that great leaders are born, not made. These theories often portray great leaders as heroic, mythic and destined to rise to leadership when needed. The term "Great Man" was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership.<br />2. Contingency Theories:<br />Contingency theories of leadership focus on particular variables related to the environment that might determine which particular style of leadership is best suited for the situation. According to this theory, no leadership style is best in all situations. Success depends upon a number of variables, including the leadership style, qualities of the followers and aspects of the situation.<br />3.Relationship Theories:<br />Relationship theories (focus upon the connections formed between leaders and followers. Transformational leaders motivate and inspire people by helping group members see the importance and higher good of the task. These leaders are focused on the performance of group members, but also want each person to fulfill his or her potential. Leaders with this style often have high ethical and moral standards.<br />4. Trait theories:<br />Trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Trait theories differentiate leaders from non leaders by focusing on personal qualities and characteristics. Trait theories often identify particular personality or behavioral characteristics shared by leaders. These theories are based on the assumption that leaders are born and not made. However, the idea that leadership traits are inborn and unchangeable appears to be incorrect. It is true that many of our dispositions and tendencies are influenced by our personalities and the way we are born. However, it is possible for someone to change their character traits for the better or worse. Thus it is possible for a person to adjust his behavior or imbibe certain qualities to become a leader.<br />5. Behavioral Theories:<br />Behavioral theories of leadership are based upon the belief that great leaders are made, not born. This leadership theory focuses on the actions of leaders not on mental qualities or internal states. According to this theory, people can learn to become leaders through teaching and observation. Leaders can be either employee oriented or work oriented. Using a managerial grid, the leadership style of a person can be determined. As u can see the managerial grid is a 9x9 matrix.<br />1,1 impoverished<br />1,9 laissez faire<br />9,1 authority type<br />9,9 team management<br />Authoritarian Leader (high task, low relationship)<br />People who get this rating are very much task oriented and are hard on their workers (autocratic). There is little or no allowance for cooperation or collaboration. Heavily task oriented people display these characteristics: they are very strong on schedules; they expect people to do what they are told without question or debate; when something goes wrong they tend to focus on who is to blame rather than concentrate on exactly what is wrong and how to prevent it; they are intolerant of what they see as dissent (it may just be someone’s creativity), so it is difficult for their subordinates to contribute or develop.<br />Team Leader (high task, high relationship)<br />This type of person leads by positive example and endeavors to foster a team environment in which all team members can reach their highest potential, both as team members and as people. They encourage the team to reach team goals as effectively as possible, while also working tirelessly to strengthen the bonds among the various members. They normally form and lead some of the most productive teams.<br />Country Club Leader (low task, high relationship)<br />This person uses predominantly reward power to maintain discipline and to encourage the team to accomplish its goals. Conversely, they are almost incapable of employing the more disciplinary coercive and legitimate powers. This inability results from fear that using such powers could jeopardize relationships with the other team members. <br />Impoverished Leader (low task, low relationship)<br />A leader who uses a “delegate and disappear” management style. Since they are not committed to either task accomplishment or maintenance; they essentially allow their team to do whatever it wishes and prefer to detach themselves from the team process by allowing the team to suffer from a series of power struggles.<br />Middle of the Road Management :<br />Most people fall somewhere near the middle of the two axis. This style of leadership is characterized by medium task-medium people oriented. There is a lack of focus on both people and the work. The leader concentrates only on getting the work done and does not push the boundaries of achievement.<br />Leadership V/S Management<br />Is Leading Different than Managing? (Pros and Cons)<br />Leadership doesn’t require any managerial position to act as a leader. On the other hand, a manager can be a true manager only if he has got the traits of leader in him. Leadership is an important aspect of management. <br />LeaderManagerA leader is the one who:Guides or inspires others in action or opinion; Takes the lead in any enterprise or movement; Is “followed”.A manager is the one who:Supervises Directs others in an enterprise.Everyone from supervisor through president is a “manager.”<br />PlanningLeaderManagerDevises strategyBudgeting Sets directionSets targetCreates visionEstablishes detailed stepsAllocate resourcesOrganizing LeaderManagerGets people onboard for strategyCreates structure Communication networkJob descriptionStaffingHierarchyDelegatesTrainingDirecting WorkLeaderManagerEmpowers peopleSolves problemsCheerleaderNegotiatesBrings to consensusControllingLeaderManagerMotivateImplements control systems InspirePerformance measuresGives sense of accomplishmentIdentifies variancesFixes variancesOutcomesLeaderManagerProducing Change Producing Predictability and Order<br />Case Study: Leadership<br />Sourav Chandidas Ganguly (born 8 July 1972) is a former Indian cricketer, and captain of the Indian national team. Born into an affluent family, Ganguly was introduced into the world of cricket by his elder brother Snehasish. He started his career by playing in state and school teams. During his career, he achieved success as a batsman but mainly as a captain, but he was involved with many controversies. Due to the match-fixing scandals in 2000 by other players of the team, and for his poor health, Indian captain Sachin Tendulkar resigned his position, and Ganguly was made the captain of the Indian cricket team. He soon received media criticism after an unsuccessful stint for county side Durham and for taking off his shirt in the final of the 2002 NatWest Trophy. He led India into the 2003 World Cup final, where they were defeated by Australia. Due to a decrease in individual performance, he was dropped from the team in the following year. Ganguly was awarded the Padma Shri in 2004, one of India's highest awards. He returned to the National team in 2006, and had successful batting displays. Around this time, he became involved in a dispute with Indian team coach Greg Chappell over several misunderstandings. Ganguly was again dropped from the team, however he was selected to play in the2007 Cricket World Cup. Ganguly joined the Kolkata Knight Riders team as captain for the Indian Premier League Twenty20 cricket tournament in 2008. The same year, after a home Test series against Australia, he announced his retirement from cricket. After his retirement, Ganguly continued to play for the Bengal team and was appointed the chairman of the Cricket Association of Bengal's Cricket Development Committee. The left-handed Ganguly was a prolific One Day International (ODI) batsman, with over 11,000 ODI runs to his credit. He is India's most successful Test Captain to date, winning 21 out of 49 test matches. An aggressive Captain, Ganguly is credited with having nurtured the careers of many young players who played under him. <br />Questions:<br /><ul><li>Which Leadership traits of Sourav Ganguly are reflected?
  2. 2. What can the leaders in businesses learn from his successes andfailures?</li></ul>Solution:<br /><ul><li>LEADERSHIP TRAITS OF SOURAV GANGULY
  3. 3. Indifference To Criticism
  4. 4. Ganguly always took decisions which he felt right without caring for the critics’ sake. It is perhaps this indifference to criticism that led to his omission from the team.
  5. 5. No personal Insecurity
  6. 6. Sourav understood the insecurities of other newcomers in the team better than his predecessors. Sourav backed the youngsters in the team tremendously and thus, gained the love of his teammates.
  7. 7. Visionary
  8. 8. His vision was to win the world cup for India and indeed came very very close to win </li></ul> one after a gap on 20 years. <br /><ul><li>Preference for Match Winners
  9. 9. He relinquished himself, to make the space for the opening slot to accommodate other talented players. Ganguly will most be remembered though for having forged a winning unit from a bunch of talented boys.
  10. 10. Emotional Intelligence
  11. 11. He as a captain always believed in replying on the face and responding in an appropriate fashion.
  12. 12. Nurturing Talent
  13. 13. He always wanted his players to develop skills for their and the teams’ betterment.
  15. 15. Sourav Ganguly was prone to experimentation. He promoted himself to the opening slot. This showcases his ability to shoulder responsibility. An opener’s job is a specialist’s job and he took over the responsibility to display his Flamboyant Panache as a southpaw.
  16. 16. Future Leaders and entrepreneurs can learn a lot from Sourav .His unprecedented Knack for experimentation, Indifference to criticism, an eye for talent, his Vision and not to mention his extraordinary Emotional Quotient can make every leader stand up and notice. If someone can accommodate few of the above mentioned qualities as we see in Sourav, they can make a whole world of difference to their respective organizations.</li></ul>“Every leader succeeds and fails depending on the<br />Situation he or she is working under.”<br /><ul><li>We do agree with the above statement because of the fact that success can always be measured in any field by performance. Also, since success is dependent on the performance it also incorporates the performance of the other individuals in the group/team, simply because Business is also about teamwork. Therefore , the acceptance of the leader by his/her team, the internal and external forces which directly/indirectly affect the business/task, the performance of his colleagues and peers are responsible for the success of the leader.