Leadership and Leadership Styles

Leadership - what is it?

“influencing people so that they will strive willingly towards the achievement of group goals” 1

1 Koontz, H. and C. O’Donnell. “Management: A System of Contingency Analysis of Managerial Functions”. McGraw-Hill, New York, 1976.

Leadership is all about influencing a group of

people

How important is a leader?

In most cases, people will perform at about 60% of their potential with no leadership at all

Thus, an additional 40% can be realized if effective leadership is available

40%

60%

capabilityutilization

Contribution due to leadership ability of manager

Default contribution due to need for a job, peer pressure, etc.

Characteristics of effective leader

Take the challenges to grow

Take calculated

risks

Adopt the leadership style that fits you and your personality

Have courage at the time of controversies

Accept mistakes

Communicate frequently

Be approachable

Understand the situation and the facts

Essential requisites of leadership are

Trust

Collaboration

Confidence

Competence

Competitive Spirit

How do you define leadership style?

The 2 dimensions of management

1. Economic or productivity-based “concern for production”

2. Employee condition and morale “concern for people”

Styles of leadership

concern for production

concern for people

Laissez-faireLeader(L)

BenevolentLeader(Y)

AutocraticLeader(X)

Team Leader(Z)

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Theory X, Y (McGregor)

1. Democratic/ Participative Leadership

Style

Theory “Y”: Benevolent leader (Democratic)

Very people oriented; encouraging Organizes around people Can be paternalistic “country club” atmosphere: non-

competitive

Assumptions of Theory Y

Average human does not dislike work Work may be a source of satisfaction oR punishment People exercise self direction and self control in the course

of his work. Commitment to objectives is a function of awards such as

satisfaction of ego and self actualization needs The average human being seeks and accepts responsibility .

The individual has the potential to be creative which is only partially utilized

The theory emphasizes a cooperative environment between the management and the employees

When to use Democratic Leadership Style?

Team Agreement is needed

Greater motivation and commitment

Knowledgeable and skillful team members

Limitation of Democratic Leadership Style

It is a time consuming affair

2. Autocratic Leadership Style (Theory X)

Assumptions of Theory X

The management is responsible for directing the efforts of the people by modifying their behaviour to fit organizational needs.

Without the active involvement of the management, people will be passive They need to be persuaded, motivated, rewarded, punished , controlled and directed

The average person is self centered, indolent, dislikes responsibility and is resistant to change.

When to use Autocratic Leadership Style?

When quick decisions are needed

When there is no need for others input

Team agreement is not necessary

When high level of management control is

needed

Limitations of Autocratic Leadership

Employees cannot question decisions

Little opportunity to give suggestions

3. Laissez-Faire/ Free Rein Leadership Style

Theory “L”: Laissez-faire leader

Leader is Uninvolved - “leave them alone” Sees main role as passer of information He Lets others make decisions Basically abdicates responsibility for

team or unit

When to use Laissez Faire/ Free Rein Style?

When the team is highly capable

When team members are able to analyze the

situation

When close monitoring of a decision is not needed

When there is full trust and confidence in the team

members

Limitations of Laissez Faire/ Free Rein Leadership

Style

Not suitable for lesser experienced employees

Lack of motivation

Poor productivity

The ‘TEAM’ Leader

Theory “Z”: Team leader: the style recognized by Japanese thinker Ouchi

Is Based on the Japanese Management practices.

Balances production and people issues Builds a working team of employees Team approach: involves subordinates Organization is a vehicle for carrying out

plans

Features of theory Z

Trust Strong bond between the organization and the employees Employee involvement by meaningful participation. No formal structure. but perfect teamwork with cooperation

and share of information Coordination of human beings, developing their skills and

creation of a new philosophy of management whereby a more cooperative approach to work is developed.

Emphasizes a common culture and a high level of social responsibility.

What are the factors for selecting leadership

style?

Objectives that need to be achieved

Followers

Situation

Apply the appropriate leadership style and

techniques

Leadership style is the approach for -providing the right way to the team members, -implementing planning strategies and -motivating people by including all the three leadership styles.

Effective leadership is not about making speeches or being liked; leadership is defined by results not attributes. - Peter Drucker

Which style of leadership works best?

Team Leader (Z) has proven to be the most effective in general

Requires a “balancing act” of getting things done and having a genuine concern for people

Results of leadership styles

1. Theory L: “missing management” Very low productivity

2. Theory X: “my way or the highway” Job stress; low satisfaction; unions form

3. Theory Y: “country club” Low achievement; good people leave

4. Theory Z: “good manager” High productivity, cooperation, low turnover,

employee commitment

American and Japanese styles of Leadership

American :Theory X, Y and L (Production oriented)

Japanese : Theory Z (Group Oriented)