Leadership

Story

A group of workers and their leaders are set a task of clearing a
road through a dense jungle on a remote island to get to the
coast where an estuary provides a perfect site for a port.

The leaders organise the labour into efficient units and monitor
the distribution and use of capital assets progress is excellent.
The leaders continue to monitor and evaluate progress, making
adjustments along the way to ensure the progress is
maintained and efficiency increased wherever possible.

Then, one day amidst all the hustle and bustle and activity, one
person climbs up a nearby tree. The person surveys the scene
from the top of the tree.

Leadership Story
And shouts down to the assembled group below
Wrong Way!

(Story adapted from Stephen Covey (2004) The Seven Habits
of Highly Effective People Simon & Schuster).

Management is doing things right,
leadership is doing the right things
(Warren Bennis and Peter Drucker)

Definition
The ability to positively influence people and
systems to have a meaningful impact and
achieve results.

Leading People
Influencing People
Commanding People
Guiding People
Introduction
The study of leadership in organizations is very crucial in the field of OB.
An effective leader is capable of inspiring and motivating even the most inefficient
employees to strive towards attaining the goals of the organization.
Failing organizations are usually over-managed and under-led
Warren G.Bennis
A leader may be defined as a person who establishes vision, sets goals,
motivates people and obtains their commitment to achieve the goals and realize
the vision



Definition of Leadership
According to Chester I Barnard, Leadership
refers to the quality of the behaviour of the
individual whereby they guide people on their
activities in organised efforts.
According to Terry, A leader shows the way by
his own example. He is not a pusher, he pulls
rather than pushes.
Definition of Leadership
According to koontz and ODonnell,
Management leadership is the ability to exert
inter-personal influence by means of
communication, towards the achievement of a
goal. Since managers get things done through
people, their success depends, to a
considerable extent upon their ability to
provide leadership.
Characteristics of Leadership
1. Leader must have followers
2. It is working relationship between leader and
followers
3. Purpose is to achieve some common goal or goals
4. A leader influences his followers willingly not by
force
5. Leadership is exercised in a given situation
6. Leadership is a power relationship
7. It is a continuous process
A Question
A leader need not be a manager but a manager
must have many of the qualities of a good
leader?????

Managerial Leadership
Significance

1. Setting Goals
2. Motivating Employees
3. Building morale
4. Creating Confidence
5. Discipline
6. Developing Team-work
7. Facilitates Change
8. Representing the group
Leadership Styles
Leader by the position achieved
Leader by personality, charisma
Leader by moral example
Leader by power held
Intellectual leader
Leader because of ability to accomplish things


Distinction between Leadership and Management
Leaders take a personal and active interests in achieving goals whereas managers
tend to play a relatively passive role in accomplishing the goals.

Managers need power to be entrusted to them by the organization to deal with
people . Leaders have power within themselves and the required drive to lead
people and motivate them to work enthusiastically towards achieving goals.

Managers limit their interactions with people to the minimum extent required to
carry out their managerial responsibilities. Leaders interact with people frequently
and in a more natural way. In the process they inspire people, motivate them and
lead them.

Leadership Management
Working in the system
React
Control risks
Enforce organizational rules
Seek and then follow direction

Control people by pushing them in
the right direction
Coordinate effort
Provide instructions
Working on the system
Create opportunities
Seek opportunities
Change organizational rules
Provide a vision to believe in and
strategic alignment
Motivate people by satisfying
basic human needs
Inspire achievement and energize
people
Coach followers, create self-
leaders and empower them
Leadership Traits
Intelligence
More intelligent than
non-leaders
Scholarship
Knowledge
Being able to get things
done
Physical
Doesnt seem to be
correlated
Personality
Verbal facility
Honesty
Initiative
Aggressive
Self-confident
Ambitious
Originality
Sociability
Adaptability
Leadership Skills
Behavioral expert Robert Katz, had identified that the leaders primarily use three skills
technical, human and conceptual skills.
TECHNICAL SKILLS
A technical skill is to have knowledge and be competent and proficient in a specific work or
activity. For example, to use excel and know how to implement macros is an advanced
technical skill. To drive a 300 Ton truck is also an advanced technical skill. Just like these there
are thousands of examples of technical skills in every organization.
HUMAN SKILLS
A human skill is one that enables you to develop the ability to work with people. These
abilities are the ones that we recognize as the ones that helps us to get along with people, to
communicate and work with your team, crew or associates. These are the fundamental
abilities in every human activity, in order to get the most of the groups you work with.
CONCEPTUAL SKILLS
A conceptual skill is one that enables us to understand and better decide the actions and
measures that has to be taken in a particular field of work.
Based on his observations Katz stated that the level of importance of each set of skills
(technical, human and conceptual) was directly correlated with the level that the person has
in the organization. The next figure displays this relationship.




Leadership styles
Autocratic:

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

Democratic:
Encourages decision making from different
perspectives leadership may be emphasised
throughout the organisation

Consultative: process of consultation before decisions are
taken
Persuasive: Leader takes decision and seeks to persuade
others that the decision is correct

Laissez-Faire:

1. Let it be the leadership responsibilities
are shared by all
2. Can be very useful in businesses
where creative ideas are important
3. Can be highly motivational,
as people have control over their working life
4. Can make coordination and decision making
time-consuming and lacking in overall direction
5. Relies on good team work
6. Relies on good interpersonal relations

Paternalistic:

Leader acts as a father figure
Paternalistic leader makes decision but may consult
Believes in the need to support staff

Leadership Theories
Trait Theory
Early on, it was thought that leaders were born with
inherent physiological and personality traits
Age
Height
Intelligence
Academic achievements

Stogdill (1974) identified several general factors that
differentiate leaders from non-leaders
Leadership Trait Theory

Sir Francis Galton

- One of the earliest leadership theorists
- Wrote Hereditary Genius pub. 1869
- Believed leadership qualities were genetic

This theory assumes physical and psychological characteristics
account for effective leadership

- Basic intelligence
- Clear and strong values
- High personal energy

Trait Theory Applied
Paul Von Hindenburg

First Chancellor of Germany, post WWI
Used the trait theory for selecting and developing military
leaders

Primary qualities for leadership ability

Intelligence (bright vs. dull)
Vitality (energetic vs. lazy)

Examples of Trait Theory
Bright, lazystaff officer
Energetic, dullfrontline soldier
Bright, energeticfield commander
Lazy, dullleft to find their own level of
effectiveness

Capacity: problem-solving capabilities, making judgments and
working hard

Achievements: accomplishments such as academic record,
knowledge and sports

Responsibility: dependability, reliability, self-drive, perseverance,
aggressiveness and self-confidence

Participation and involvement: highly developed social interaction,
popularity, swift adaptation to changing situations, and easier
cooperation compared to non-leaders

Socio-economic status: effective leaders usually belong to higher
socio-economic classes
Leadership Theories
Trait Theory (continued)
Criticisms of the Trait Approach
Some effective leaders do not possess all of these traits,
and some leaders who possess these traits are not effective.

For at least some traits, it is not clear which comes first,
being in a leadership position or possessing the trait in
question.

The trait approach provides little guidance concerning what
advice or training to give current or soon-to-be leaders.

The approach ignores the situation in which leadership takes
place.
Leadership Theories
Behavioral Theories
Ohio State studies focused on task and social behavior of leaders
Identified two dimensions of leader behavior

Initiating Structure: role of leader in defining his/her role and
roles of group members
Consideration: leaders mutual trust and respect for group
members ideas and feelings

Two different behavioral theories:
Role Theory
Managerial Grid

Behavior Theories
The behavioral theorists concentrated on
the unique behavioral aspects found in
leaders that enabled them to attain
effective leadership. Following are the our
main behavior theories of leadership

1. The Ohio State studies
2. Universities of Michigan studies
3. The Managerial Grid
4. Scandinavian studies
In the 1940s, research focused on leader behaviors

- Assumed that leaders take distinct actions

Ralph Stogdill at Ohio State University

- Helped develop the Leader Behavior Description Questionnaire
(LBDQ)
- Respondents described leaders behavior in two dimensions:

1. Initiating structure
2. Showing consideration



In the 1930s, emphasis on behaviorism moved researchers
in the direction of leadership behavior

Kurt Lewin trained assistants in behaviors indicative of three
leadership styles:

Autocratic: tight control of group activities, decisions
made by the leader

Democratic: group participation, majority rule

Laissez-faire: little activity of any type by the leader

Leadership Behavior Theory
Findings of a Leader Behavior Description
Questionnaire (LBDQ) study:

- The Democratic style was
more beneficial for group
performance

- The leaders behavior impacted
the performance of followers
University of Michigan studies
A research was conducted at the Survey Research
Centre at the University of Michigan. The research
was conducted on twelve pairs of sections ,each
section consisted on one high producing section and
one low producing section.
During the study , researchers also interviewed 24
supervisors and 400 workers. And following was
observed.
1. Employee-oriented dimension
2. Production-oriented dimension
Researchers concluded that leaders with an inclination
towards employee-oriented dimension resulted in
higher job satisfaction and greater productivity.
Leadership Behavior Theory
Rensis Likert at the University of Michigan conducted
leadership studies

- Studied leaders behaviors related to worker motivation
and
group performance
- Identified two dimensions of behavior:

Job centered (initiating structure)

Employee centered (showing consideration)
Leadership Theories
Managerial Grid
Developed by Drs. Robert R. Blake and Jane S. Mouton
Believed managers have different leadership styles which led to
two different dimensions of leadership:
Concern for Production: manager who is task-oriented
and focuses on getting results or accomplishing the
mission (X-axis of grid)
Concern for People: manager who avoids conflicts and
strives for friendly relations with subordinates (Y-axis of
grid)
Leadership Theories
Managerial Grid (continued)

9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9
**manager
s goal is
9,9**
Managerial Grid
Major management styles and concerns:

- Impoverished: low production, low people

- Sweatshop: high production, low people

- Country Club: high people, low production

- Status Quo: medium production, medium people

-Fully Functioning: high production, high people

Two additional styles

- Paternalistic: high concern for production,
use of rewards for compliance and loyalty

- Opportunistic: promotes his/her own
advancement


Scandinavian Studies
The previous three behavior theories did not take into account the
dynamics, or even chaotic environments that influence the modern
organizations.
Some Finnish and Swedish theorists began reviewing earlier theories
to find new dimensions that could incorporate the dynamics of the
environment.
The new dimension found was called as developmentoriented
behavior.
According to this dimension leaders were ready to experiment with
new ideas and practices and embrace change.
Leaders who were inclined towards this dimension were found to be
more efficient by the subordinates.
Criticisms of the Behavior Approach
The relationship between leader behaviors
and subordinate performance and satisfaction
are not necessarily clear-cut.

The behavior approach ignores the situation
in which leadership takes place.
Leadership Theories
Participative Theories
Assumes the following
Involvement in decision-making improves the understanding
of the issues involved and the commitment of those who
must carry out the decisions.
People are less competitive and more collaborative when
they are working on joint goals.
Several people deciding together make better decisions
than one person alone.

Two different participative theories:
Lewins leadership styles
Likerts leadership styles
Likerts system of Leadership
Rensis Likert and his associates studied the patterns and styles of
managers for three decades at the University of Michigan, USA, and
identified a four-fold model of management systems.


1. The model was developed on the basis of a questionnaire
administered to managers in over 200 organizations and research
into the performance characteristics of different types of
organizations.
2. The four systems of management system or the four leadership
styles identified by Likert are:
System 1 - Exploitative Authoritative: Responsibility lies in the hands of the people at
the upper echelons of the hierarchy. The superior has no trust and confidence in
subordinates. The decisions are imposed on subordinates and they do not feel free at all
to discuss things about the job with their superior. The teamwork or communication is
very little and the motivation is based on threats.
System 2 - Benevolent Authoritative: The responsibility lies at the managerial levels
but not at the lower levels of the organizational hierarchy. The superior has condescending
confidence and trust in subordinates (master-servant relationship). Here again, the
subordinates do not feel free to discuss things about the job with their superior. The
teamwork or communication is very little and motivation is based on a system of rewards.
System 3 - Consultative: Responsibility is spread widely through the organizational
hierarchy. The superior has substantial but not complete confidence in subordinates. Some
amount of discussion about job related things takes place between the superior and
subordinates. There is a fair amount of teamwork, and communication takes place
vertically and horizontally. The motivation is based on rewards and involvement in the job.
System 4 - Participative: Responsibility for achieving the organizational goals is
widespread throughout the organizational hierarchy. There is a high level of confidence
that the superior has in his subordinates. There is a high level of teamwork,
communication, and participation.

Conclusion

According to Rensis Likert, the nearer the behavioral
characteristics of an organization approach System 4
(Participative), the more likely this will lead to long-
term improvement in staff turnover and high
productivity, low scrap, low costs, and high earnings,
if an organization wants to achieve optimum
effectiveness, then this is the ideal system

Leadership Continuum
A simple model which shows the relationship
between the level of freedom that a manager
chooses to give to a team, and the level of
authority used by the manager. As the team's
freedom is increased, so the manager's
authority decreases. This is a positive way for
both teams and managers to develop.
Contingency Theory
Assumptions:
No one best way of leading
Ability to lead contingent upon various situational
factors:
Leaders preferred style
Capabilities and behaviors of followers
Various other situational factors
Effect:
Leaders who are successful in one situation may
become unsuccessful if the factors around them
change

Leadership Theories
Contingency Theory: Fiedlers Least Preferred Co-Worker
(LPC) Theory
Assumptions:
Leaders prioritize between task-focus and people-focus
Leaders dont readily change their style
Key situational factor in matching leader to situation:
Relationships
Power
Task structure
LPC Questionnaire
Determines leadership style by measuring responses to 18 pairs of
contrasting adjectives.
High score: a relationship-oriented leadership style
Low score: a task-oriented leadership style

Tries to identify the underlying beliefs about people, in particular whether the
leader sees others as positive (high LPC) or negative (low LPC).

Leadership Theories
Exhibit 17.4
Findings of the Fiedler Model
Leadership Theories
Situational Leadership
Situational factors (motivation, capability of followers,
relationship between followers and leader) determine
the best action of leader
Leader must be flexible to diagnosis leadership style
appropriate for situation and be able to apply style
No one best leadership style for all situations

Leadership Theories
Hersey & Blanchards Situational Leadership (1977)

Identified 4 different leadership styles based on readiness of followers
R1. Telling (high task/low relationship behavior)
Giving considerable attention to defining roles and goals
Recommended for new staff, repetitive work, work needed in a short time span
Used when people are unable and unwilling
R2. Selling (high task/high relationship behavior)
Most direction given by leader encouraging people to buy into task
Used when people are willing but unable
R3. Participating (high relationship/low task behavior)
Decision making shared between leaders and followers, role of leader to facilitate
and communicate
Used when people are able but unwilling
R4. Delegating (low relationship/low task behavior)
Leader identifies problem but followers are responsible for carrying out response
Used if people are able and willing
Leadership Theories
Source: Reprinted with permission from the Center for Leadership
Studies. Situational Leadership is a registered trademark of the Center
for Leadership Studies. Escondido, California. All rights reserved.
Leadership Theories
Hersey & Blanchards Model
Summary of Leadership Theories
Theory Leadership Based On
Trait Theory
Leaders born with leadership traits
Behavioral Theory
Initial structure and consideration
- Role Theory
Shaped by culture, training, modeling
- Managerial Grid
Concern for production and concern for people
Participative Leadership
More people involved = better collaboration
- Lewins Style
Autocratic, democratic, laissez-faire
- Likerts Style
Task oriented, relationship oriented, participative style
Contingency Theories
No one best leadership style
- Fiedlers LPC Theory
Task focus v. relationship focus
- Cognitive Resource Theory
Intelligence and experience make a difference
- Houses Path Goal Theory
Help followers make their goals compatible with
organizational goals
Situational Leadership
Similar to contingency theory
- Hersey and Blanchard
Based on relationship between leader and follower
and task behavior
- Vroom & Yetton
Decision quality and decision acceptance
Transactional Vs. Transformational
Leadership
Basis of Distinction Transactional Transformational
Basis Based on exchange
relationship between leader
and followers.
Based on leaders values,
beliefs and needs of
followers
Method of inspiration Rewards and recognition for
good performance
Leaders charisma, vision
and energy
Orientation Task Orientaion Goal Orienatation
Approach Passive and stable Active and dynamic
Main functions of leader Determination of objectives,
clarifying tasks, helping
subordinates in achieving
objectives
Providing vision and sense
of mission, instilling pride,
gaining respect and trust,
inspiring people, giving
personal attention.
Queries????