LEADERSHIP

A recent Gallup survey indicates that most employees believe that it is the leader, not the company, that guides the culture and creates situations where workers can be happy and successful

What is leadership?
Leadership is the act of making an impact on others in a desired direction. What is the difference between managers and leaders?

Manager Characteristics Administers A copy Maintains Focuses on systems and structure Short-range view Asks how and when Eye on the bottom line Imitates

Leader Characteristics Innovates An original Develops Focuses on people Inspires trust Long-range perspective Asks what and why Eye on the horizon

Manager Characteristics Accepts the status quo Classic good soldier Does thing right

Leader Characteristics Challenges the status quo Own person Does the right thing

Adapted from Warren G. Bennis, Managing the Dream: Leadership in the 21st Century, Journal of Organisational Change Management, Vol 2 (1), 1989, p. 7.

Levels of Leadership
Level of Leadership
Leading Self/Self Leadership

Focus
Self: Productive contribution to the unit of membership Use of skills, knowledge and good habits at work Help others lead themselves Managing individual differences effectively: Trusting, cooperative relationships Influencing follower for more of commitment Group Processes: Organisation of work Resource utilisation Members confidence and contribution to objectives through involvement Organisational culture and organisations readiness for change: Catalyse commitment to and vigorous pursuit of a clear and compelling vision Stimulate performance to meet and exceed high standards

Interpersonal Leadership

Group, team leadership

Organisational Leadership

Source: (1) Leadership in Organisations: (5th ed), Gary Yukl, Pearson Education 2002 (2) Five Leavels of Leadership, Harvard Business Review, The high-performance organisation (July-August,2005)

LEADERSHIP STYLES THEORIES

 Financial Results (e.g. return on sales, revenue growth, efficiency, and profitability) influenced by Organisational Climate Organisational Climate influenced by Leadership Style What is Organisational Climate?

Organisational Climate
First defined by George Litwin and Richard Stringer and later refined by McClelland Refers to six key factors that influenced an organisations working environment:
Its flexibility- how free employees feel to innovate unencumbered by red tape their sense of responsibility to the organisation The level of standards that people set Sense of accuracy about performance feedback & aptness of reward Clarity of mission & vision Level of commitment to a common purpose

Leadership Styles
Coercive Style Authoritative Style Affiliative Style Democratic style Pacesetting style Coaching style

LEADERSHIP SYLE Coercive Style

CHARACTERISTIC Do What I say

MOST EFFECTIVE WHEN. Turnaround situation, natural disaster, when working with problem employees Business is adrift; less effective when the leader is working with a team of experts who are more experience that he is

Authoritative Style

Come with mestates overall goal but gives people the freedom to chose their own means of achieving Gives employees voice in decision making, build organisational flexibility and responsibility and generate fresh ideas Leader sets high performance standards & exemplifies them himself has a very positive impact on employees

Democratic Style

Pacesetting Style

LEADERSHIP SYLE Coaching Style

CHARACTERISTIC Focuses more on personal development than on immediate work-related tasks

MOST EFFECTIVE WHEN. Employees are already aware of their weaknesses and want to improve..not effective when employees are resistant to changing their ways.

Trait Theory of Leadership

Trait refers to relatively stable dispositions of an individual to behave in a particular way. Researchers believed that leadership was a second level trait, which could be explained on the basis of a list of primary traits.

Drawbacks of Trait Theory

The list of traits grew to include 17000 descriptive words in English alone Possessing the traits and characteristics that matched the list could still not predict successful leadership across situations Often the list contained traits that were opposite in nature- e.g. decisiveness as well as flexibility Different persons who were perceived to be leaders, had different styles and different traits It seemed that traits could better explain why someone could not be an effective leader, rather than explain effective leadership.

The Iowa Leadership Studies (Late 1930s)

Ronald Lippitt and Ralph K White under the general direction of Kurt Lewin. Three different styles of leadership:
Authoritarian ( very directive and does not allow any participation) Democratic (encourage group discussion and decision making. Tried to be objective in praising or criticizing and be one of the group in spirit) Laissez-faire (gave freedom to group, provided no leadership)

 GROUP SUBJECTED TO AUTOCRATIC LEADER Apathetic

Reaction to frustration

Aggressive

GROUP SUBJECTED TO LAISSEZFAIRE LEADER Maximum frustration

The Ohio State Leadership Studies

(At the end of World War II, 1945) Started with the premise that no satisfactory definition of leadership exists. Presumed that previous work had too often assumed that leadership was synonymous with good leadership. Used Leader Behaviour Description Questionnaire (LBDQ) to analyse leadership in numerous types of groups and situations.

The Ohio State Leadership Studies Contd

Two dimensions of leadership
Consideration (behaviors by means of which the leader
establishes rapport with his or her employees, two-way communication, mutual respect, and understanding. It includes behavior indicating trust and warmth between the supervisor and his or her group and emphasizes concern for group members needs.) Initiating Structure (behaviors by means of which the leader defines or facilitates group interaction toward goal attainment. The leader does this by planning, scheduling, criticizing, initiating ideas, organizing the work, defining member roles, assigning tasks, and pushing for production.)

The two dimensions are separate and distinct from each other.

The Michigan Leadership Studies

Investigated the relationship between supervisory behavior and employee productivity and satisfaction. Two dimensions of leadership
Employee-centered (spent more time in actual, supervisory
activities, less time performing tasks similar to those performed by subordinates, used general rather than close supervision, took a personal interest in employees and their gods, and were less punishing when mistakes were made.)

Production-centered (spent less time in actual supervisory

practices such as planning, more time performing tasks similar to those subordinates performed, used close supervision, and punished mistakes.)

Theory X and Theory Y Assumptions About Human Nature ( Douglas McGregor, 1960)
Theory X Assumptions The average person has an inherent dislike for work and will avoid it if possible. People must be coerced, controlled, directed and threatened with punishment in order to get them to work adequately. People prefer to be directed, wish to avoid responsibility, and have little ambition. The average person is only interested in security Theory Y Assumptions Physical and mental effort in work is as natural as play or rest. People will exercise self direction and self-control in the objective of the organisation when commitment to objectives is rewarded. The average person not only accepts, but also seeks responsibility under appropriate conditions. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity, is common among people and organisations utilise them only partially.

Theory X and Theory Y contd

Leaders inclined towards Theory X emphasise external control over employees. Leaders believing in Theory Y inclined to encourage subordinates to exercise selfcontrol and contribute more to their organisation in a creative manner.

Leader-Member Exchange Model (LMX)

Leaders treat individual subordinates differently Leader and subordinate develop dyadic relationships. This relationship affect the behaviour of both leaders and subordinates. in-group and out-group

Managerial Grid

Managerial Grid contd

The Impoverished (1,1):
Desire to avoid risk Postpone dealing with difficult issues within the organisation Meet the lowest job requirement Pay attention to people so sa to get the minimum required production Organisational purpose or positive relationships among personnel are not important for such managers

The task-master style (9,1):

Highly concerned about task Measurement of output Strict adherence to authority and obedience by staff Focuses on task completion towards achieving the organisational purpose Allows little consideration for the needs and problems of the personnel.

Managerial Grid contd

Country club style (1,9)
Concern for production overshadows the production Happiness and harmony among staff as well as their production by the leader enjoy the highest priority Organisational goals or purpose take a back seat.

Middle-of- the-roader(5,5)
Superficially both may appear to be present. However, neither of the orientations are fully developed. Under the declaration of concern for the employees, the managers preoccupation with control may be very strong.

Managerial Grid contd

The Effective Style (9,9)
Relationships are appropriately based around task issues Conflict is treated as a natural phenomenon.

Contingency and Situational Focus

Fiedlers Contingency Model (1967) Hersey and Blanchards Situational Leadership Model (1982)

Fiedlers Contingency Model

Assumptions: No one leadership style suited all situations and situations differed in their basic assumptions Effective group performance depends on the proper match between the leaders style and the degree to which the situation gives control to the leader.

Fiedlers Contingency Model contd

Leadership Style: relationship-oriented establishes mutual trust and respect, listens to employees needs) or task oriented (motivated by accomplishment) Leadership style is determined with help of least preferred coworker (LPC) questionnaire.relationship oriented or task oriented.

Fiedlers Contingency Model contd

Open----------------------- guarded Quarrelsome---------------------- harmonious efficient --------------------- inefficient Self-assured --------------------- hesitant Gloomy--------------------- cheerful Examples of Bipolar Adjectives used on LPC scale

Fiedlers Contingency Model contd

Three contingency dimensions that define key situational factors that determine leadership effectiveness:
Leader-member relations
employees get along?) (How well do the manager and the

Task structure (Is the job highly structured, fairly unstructured, or

somewhere in between?)

Position power

(How much authority does the manager possess?)

Exercises
Which type of leader is suitable in the following situation and why Natural disaster, like a flood or fire When a. leader-member relations are good, b. the task is unstructured, and b. position power is weak