Chapter

TWELVE

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Leadership
Basic Approaches to Leadership What is leadership? Features, importance Managers vs. leaders Leadership styles

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Definition
Leadership is a process whereby an individual influences a group of individuals to achieve a common goal
Is a process & property. As a process, it is the use of non coercive influence to direct & coordinate the activities of the members of an organized group towards the accomplishment of group objective . As a property , leadership is a set of characteristics attributed to those who are perceived to successfully employ such influence.
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Features 1. Group phenomenon(interaction between 2 parties) 2. Refers to the ability of one individual to influence others 3. Behavior is changed thru non - coercive actions 4. Change of behavior is caused with an objective of achieving common goal

5. Person influencing the others possess a set of qualities or characteristics which he uses to influence others
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Trait Vs. Process Leadership

Trait Leadership Leader Height Intelligence Extroversion Fluency Other traits Process Leadership Leader

Leadership

(Interaction)

Leadership

Followers

Followers

Assigned Vs. Emergent Leadership

Assigned leaders Formal position e.g. Team leaders, Plant managers, Department heads, Emergent leaders No formal position Others perceive an individual as an influential member regardless of title. Being informed, Involved, Seeking others opinion, Initiating new ideas.

Management Vs. Leadership

Management (Produce order and consistency) New subject emerged around 20th century Functions of Planning and Budgeting
Establish agendas Set timetables Allocate resources

Leadership (Produce change and movement) Can be traced back to Aristotle

Functions of Establishing direction

Create a vision Clarify big picture Set strategies

Management Vs. Leadership

Management Organizing and Staffing
Provide structure Make job placements Establish rules and procedures

Leadership Aligning People

Communicate goals Seek commitment Build teams and coalitions

Controlling and Problem solving

Develop incentives Generate creative solutions Take corrective actions

Motivating and Inspiring

Inspire and energize Empower subordinates Satisfy unmet needs

Managers vs. Leaders

Managers are people who do things right, while leaders are people who do the right thing. Warren Bennis
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What Is Leadership?
Leadership

The ability to influence a group toward the achievement of goals.

Management Use of authority inherent in designated formal rank to obtain compliance from organizational members.

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Other differences : Leaders have followers , managers do not have Leaders have emotional appeal Leader fulfill the followers need Management is doing things right , leadership is doing right things . Management's efficiency lies in climbing the ladder of success , leadership determines whether it is leaning towards the right wall

Peter Drucker & Warren Bennis

In real life and in Organizations there may not be distinct leaders , and mangers . They will be acting both as managers & leaders

A successful manager when required

both the qualities

make use of them

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Leadership is a mutual influence process

Leader's influence on the followers :

1. 2. 3. 4. 5. Reward power Coersive power Legitimate power Expert power Referent power

Followers influence on the leader:

1.
2. 3. 4.

Responses or performance of the subordinates

Characteristics of the subordinates Org policy & climate Peers & their influence on the leaders

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Importance of leadership: A leader not only commits his followers to organizational goals, but also pools necessary recourses , guides & motivates subordinates to reach the goal Transforms potential into reality The leader evaluates , inspire & motivates his followers to higher things in life Poor performing organization does not attract best leaders Not all the leaders have same abilities & experience Environmental & organizational factors can override the effect of a leader Organization continues to flourish even after the change of leadership
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Formal vs informal leaders

Formal leadership when a manager leads by exercising formal authority through assignng duties etc

Informal leadership When a person without any formal authority is influencing or directs the behavior of others . Are not formally appointed / elected , he becomes a leader thru his actions or personal attractions

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Leadership styles & implication Is a typical approach a particular person uses to lead people . The behavior the leader exhibit during the supervision of the subordinates is called leadership style

Comprise of 2 distinct elements : 1. Leaders assumption about subordinates

2.

leaders actual behaviors when interacting with subordinates

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4 Styles
1. Styles based on authority retained Authoritarian

Participative
Free reign 2 3. 4. Styles based on task vs people emphasis Styles based on Assumptions about people Entrepreneurial leadership style

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Types of Leadership Style

Autocratic(authoritarian)
Leader makes decisions without reference to anyone else High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively

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Types of Leadership Style

Participative : I)consultative (just consult with the employees, final decisions is taken by the leader) Ii)Consensual (arranges GD takes a decision that reflects the general agreement ) Iii)Democratic (final authority to the group, collector of opinions, takes vote before making a decision)
May help motivation and involvement Workers feel ownership of the firm and its ideas Improves the sharing of ideas and experiences within the business Can delay decision making
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Types of Leadership Style

Laissez-Faire (delegate, free reign)

No particular leadership style actually abdicates leadership give the authority to somebody in the group, but still have a hold on the employees Works well when the group is composed of highly commited employees Sometimes it may be perceived that he abdicate the leadership role because of his incompetency or fear of failure Relies on good team work Relies on good interpersonal relations

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Forces: Good leader adopts 3 different styles depending on what forces are involved between the leader, follower & situation Authoritarian style: When an employee who is just learning the job. The leader is competent & good coach . Employee is motivated to learn new skill Participative style :

With a team of workers who know their job well . The leader knows all the problems But does not have all the information . The employee know the job and want to a part of the team
Delegative style : With a worker know more about the job than you . You cannot do everything. The employee needs to have the ownership of the job
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Using all the 3 styles:

Telling your employee that a procedure is not working correctly

& a new one must be established (authoritarian). Asking for their ideas & inputs on creating a new procedure (participative). Delegating the task in order to implement the new procedure (delegative) Factors that influence the style to be used : How much time is available ? Are relationship based on respect& trust or disrespect ? Who has the information? Internal conflicts Type of task Laws or established procedures/norms
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Leader

Employees

Autocratic Participative

Free reign

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II. Styles based on task versus people emphasis:

Based on relative concern the leader places on the tasks to be performed & the people performing the task .

Leader who give importance to task performance may show :

1. Organizing & defining roles of the group members 2. Explain what activities to be done etc. 3. Established well defined patterns of organization, channels of communication & ways of task accomplishment

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A leader who give importance to people :

1. 2. 3. 4. Establish channels of communication & ways of task accomplishment Psychological support to them Mutual trust Empathy for them

High

Supporting style
People emphasis

Participative style

Free reign style

Low Low

Autocratic Style

Task emphasis

High

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III. Styles based on assumption about people

Based on leaders assumption about people :

This 2 way classification is based on Mc gregorss famous

Theory X
Autocratic (close supervision, tight control over subordinates)

&

Theory Y
Participative ( trust subordinates, allow to participate in decision making

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IV. Entrepreneurial leadership styles:

Entrepreneur is a person who convert a innovative idea into business. Based on their personality , characteristics & circumstances of operating a business , many entrepreneurs use similar leadership style 1 impatience & brusqueness towards employee because entrepreneurs are always busy 2. Heavy task orientation combined with very direct approach of giving instruction 3. A charismatic personality that inspires others to want to do business with them 4. A strong interest in dealing with the employees 5. Hatred towards govt rules & regulations and related red tapeism
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Signs You are Becoming a Leader

1. People ask you what you think. 2. People ask you for help. 3. Acknowledged company leaders ask you to help on a major project. 4. Peers begin to follow your example. 5. Youre not afraid to run the copying machine late at night and you know where to find dinner for your team.

The most effective leaders make no demands, they just define and communicate the course, provide resources, and get in front of the team.
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How do I become a leader? (contd)

1. Get your technical and emotional skill base set (formal/informal). 2. Seek challenges to grow and expand your emotional and rational capabilities. 3. Find a mentor (formal or informal) to guide your development. Can have more than one all through your career. 4. Take acceptable risks. 5. Adopt a leadership style you are comfortable with and that fits your personality. 6. Be accountable. 7. Have courage in the face of adversity or controversy. 8. Admit mistakes. 9. Communicate frequently. Up and down. 10. Be approachable but resolute.
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Perspectives of leadership
Perspectives of leadership speaks about the different factors which influences leadership behavior & effectiveness. Based on these perspectives certain theories have been developed which are very important in understanding how a leaders behavior affects the organization

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Perspectives of Leadership

Competency Perspective
Behaviour Perspective

Romance Perspective

Leadership Perspectives

Transformational Perspective

Contingency Perspective

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Seven Leadership Competencies/traits

Drive (inner motivation to pursue the goal) Leadership motivation(strong need for power) Integrity (truthfulness & tendency to translate words into deeds) Self-confidence(belief in leadership skills & ability to achieve objective)
Courtesy of Kookmin Bank

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Intelligence(above average cognitive ability) Knowledge of the business

Emotional intelligence(ability to manage emotions & discriminate among them

self monitoring personality, ability to empathize with others& build relationship

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Trait Theories
Limitations:
No finality of the list of personality traits How much of which trait a successful leader should have is not clear Theory assumes that leader is born & not trained is not acceptable to contemporary thinkers

Unclear evidence of the cause and effect of relationship of leadership and traits.
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Behavioral perspectives/theories
Ohio state university studies (initiating structure , consideration) Michigan university studies (task oriented behavior, employee oriented behavior) Managerial grid theory

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The Managerial Grid

(Blake and Mouton)

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Contingency Leadership Theories

Situational Leadership Model (Paul Hersey /Ken Blanchard) Effective leaders vary style with follower readiness 2 questions to answer Why is a follower important? What is meant by readiness? Readiness ability & willingness to accomplish specific objectives Ability---skills & knowledge Willingness self direction & motivation to pursue the task
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What to do when employees are:

Unable & unwilling ---clear & specific direction (Telling) Unable & willing ----high task orientation (selling) Able & unwilling --- supportive & participative (participative) Able & willing leader doesn't have to do much (delegative)

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Fiedlers Contingency Model (Fred Fiedler)

The leader effectiveness depends on the proper match between leader style & the degree to which situation gives control to the leader Leadership style is stable --based on personality Best style depends on situational control -- leadermember relations, task structure, position power Determining the LPC (least preferred co worker scale) Matching that style with the situation

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Contingency Theory
Fiedler assumes that the individuals leadership style is fixed ie if the situation require a task oriented behavior & the person in that leadership position is people oriented either the situation is to be changed or the leader has to be replaced
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Contingency Theory
1. 2. 3. 3 situational factors : Leader - member relations Task structure Position power

If the situation is highly favorable or unfavorable for him tough, task oriented behavior can be exhibited If the situation is moderately favorable or unfavorable lenient people oriented behavior can be exhibited

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Transformational & Transactional Leaders

Transformational leaders
Leading -- changing the organization to fit the environment Develop, communicate, enact a vision

Transactional leaders
Managing -- linking job performance to rewards Ensure employees have necessary resources
Courtesy of AES Corp.

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Characteristics of the Two Types of Leaders Transactional Transformational

Contingent Reward:
Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments

Idealized Influence:
Provides vision and sense of mission, instills pride, gains respect and trust

Inspiration:
Communicates high expectations, uses symbols to focus efforts, expresses important issues simply

Management by Exception:
Active: Watches and searches for deviations from rules and standards, takes corrective action Passive: Intervenes only if standards are not met

Intellectual Stimulation:
Promotes intelligence, rationality, and problem solving

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Tranformational leadership
Are change agents who direct & energies the employees to a new set of organizational behaviors & values Agents of change --- leading , changing organizations strategies & culture so that they have a better fit with the environment Develop a vision for the work unit or organization, inspire & collectively bound the employees to the vision Change the team or organization by creating, communicating , modeling a vision or inspiring the employees to strive for the vision
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Importance
Both are required for a firm Transactional leadership improve organizational efficiency Important in organization which has significant alignment with the external environment Transformational leadership steer the org to a better course of action Or stagnate without transformational leadership

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Transformational v/s charismatic leadership

Some writers use both terms interchangeably But both differ Charisma is a form of interpersonal; attraction whereby the followers develop a trust & respect for the leader Extends beyond behavior to personal traits which provide referent power to the followers

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Transformational Leadership Elements

Building Commitment

Creating a Vision

Transformational Leadership
Modeling the Vision Communicating the Vision

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Creating a strategic vision

Vision might originate from the leader but is enacted by the employees , clients, suppliers or other constituents. It may begin as an abstract idea that becomes progressively clearer through critical events & discussions with the staff

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Communicating the vision

Vision is the substance & communication is the process Elevate the importance of the visionary goal to the employees. Try to bring their vision through stories, examples, images , metaphors & other languages that transcend the plain language. Metaphors borrow images of other experiences thereby creating richer meaning of the vision.

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Modeling the vision

not only talk about the vision but also enact it Alter mundane activities, meeting agendas, Office locations, executive schedules so that they remain consistent with their vision & values Greater the consistency between the leaders words & deeds , the more the employees believe & follow the leader

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Building commitment to the vision

Transforming vision into reality requires employees commitment Leader build commitment in several ways Stories & symbols Leader demonstrate a can do attitude by enacting vision & staying on course Leaders persistence & consistency reflect an image of honesty, trust & integrity

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Romance Perspective of Leadership

Attributing Leadership

Romance Perspective of Leadership

Stereotyping Leadership
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Attributing leadership
Attribution error tendency to over estimate the influence of internal factors & under estimate the influence of external factors Causes the employees to believe that organizations success / events are due to motivation & ability of the leader than to environmental contingency Leaders are given the credit or blame for companys success or failure because employees do not readily see the external forces that influence those events Leaders reinforce this belief by taking credit for organizations success
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Stereotyping leadership
People rely on stereotypes to determine whether their boss is an effective leader Preconceived notion about the features & behaviors of effective leaders Leaders success may not be known for months or years If the person fit the model, employee's are more confident that leaders are effective

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