leadership in organizational management
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LeadershipLeadership
Group 3
ObjectivesObjectives Define leadership and contrast leadership and management.
Summarize the conclusions of trait theories of leadership.
Identify the central tenets and main limitations of behavioral theories.
Assess contingency theories of leadership by their level of support.
Compare and contrast charismatic and transformational leadership.
Define authentic leadership and show why effective leaders exemplify
ethics and trust.
Demonstrate the role mentoring plays in our understanding of leadership.
Address challenges to the effectiveness of leadership.
Assess whether charismatic and transformational leadership generalize
across cultures.
What Is Leadership?What Is Leadership?
Leadership
The ability to influence a group toward the achievement of a vision or set of goals.
Management
Use of authority inherent in designated formal rank to obtain compliance from organizational members.
Nonsanctioned Leadership?Nonsanctioned Leadership?
The ability to influence that arises outside
the formal influence
All Leaders are not Managers
All Managers are not Leaders
Trait TheoriesTrait Theories
Leadership Traits:
• Ambition and energy
• The desire to lead
• Honest and integrity
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant knowledge
Leadership Traits:
• Ambition and energy
• The desire to lead
• Honest and integrity
• Self-confidence
• Intelligence
• High self-monitoring
• Job-relevant knowledge
Traits Theories of Leadership
Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.
Big Five Personality FrameworkBig Five Personality Framework
AgreeablenessAgreeableness
ConscientiousnessConscientiousness
Extraversion
Emotional StabilityEmotional Stability
Openness to ExperienceOpenness to Experience
Strong Leaders - historyStrong Leaders - history
Trait TheoriesTrait Theories
Limitations:
• No universal traits found that predict leadership in all situations.
• Traits predict behavior better in “weak” than “strong” situations.
• Unclear evidence of the cause and effect of relationship of leadership and traits.
• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.
Limitations:
• No universal traits found that predict leadership in all situations.
• Traits predict behavior better in “weak” than “strong” situations.
• Unclear evidence of the cause and effect of relationship of leadership and traits.
• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.
Behavioral TheoriesBehavioral Theories
• Trait theory:Leaders are born, not made.
• Behavioral theory:Leadership traits can be taught.
• Trait theory:Leaders are born, not made.
• Behavioral theory:Leadership traits can be taught.
Behavioral Theories of Leadership
Theories proposing that specific behaviors differentiate leaders from nonleaders.
Ohio State StudiesOhio State Studies
Initiating Structure
The extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in the search for goal attainment.
Consideration
The extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate’s ideas, and regard for their feelings.
University of Michigan StudiesUniversity of Michigan Studies
Employee-Oriented Leader
Emphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members.
Production-Oriented Leader
One who emphasizes technical or task aspects of the job.
The Managerial Grid
(Blake and Mouton)
The Managerial Grid
(Blake and Mouton)
Contingency Theories
Fiedler’s Contingency ModelThe theory that effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.Least Preferred Co-Worker (LPC) Questionnaire
An instrument that purports to measure whether a person is task- or relationship-oriented.
LPC Scale
• Used to measure a person’s leadership style• For example, it measures your style by
having you describe a coworker with whom you had difficulty completing a job. (not necessarily someone you dislike, but someone with whom you least like to work with)
• After you choose this person, the LPC instrument asks you to describe your coworker on 16 sets of adjectives
Least Preferred Coworker (LPC) ScalePleasant 8 7 6 5 4 3 2 1 UnpleasantFriendly 8 7 6 5 4 3 2 1 UnfriendlyRejecting 8 7 6 5 4 3 2 1 AcceptingTense 8 7 6 5 4 3 2 1 RelaxedCold 8 7 6 5 4 3 2 1 WarmSupportive 8 7 6 5 4 3 2 1 HostileBoring 8 7 6 5 4 3 2 1 InterestingQuarrelsome 8 7 6 5 4 3 2 1 HarmoniousGloomy 8 7 6 5 4 3 2 1 CheerfulOpen 8 7 6 5 4 3 2 1 ClosedBackbiting 8 7 6 5 4 3 2 1 LoyalUntrustworthy 8 7 6 5 4 3 2 1 TrustworthyConsiderate 8 7 6 5 4 3 2 1 InconsiderateNasty 8 7 6 5 4 3 2 1 NiceAgreeable 8 7 6 5 4 3 2 1 DisagreeableInsincere 8 7 6 5 4 3 2 1 SincereKind 8 7 6 5 4 3 2 1 Unkind
Scoring
• Your final score is the total of the numbers you circled on the 16 scales
• 57 or less = Low LPC (task motivated)
• 64 or above = High LPC (motivated by relationships)
Defining the Situation
1.Leader-Member Relations
The degree of confidence, trust, and respect subordinates have in their leader.
3.Position Power
Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.
2. Task Structure
The degree to which the job assignments are procedurized.
Fiedler has identified 3 situational dimensions
Findings from Fiedler Model
A contingency theory that focuses on followers’ readiness.
Situational Leadership Theory (SLT)Situational Leadership Theory (SLT)
WillingUnwilling
Able
UnableDirective
High Taskand
Relationship Orientations
Supportive Participative
Monitoring
Follower Readiness
LeadershipStyles
Path-Goal TheoryPath-Goal Theory (Robert House)
The theory that it is the leader’s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.
The Path-Goal Theory
Leader-Participation ModelLeader-Participation Model (Vroom and Yetton)
A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations.
Contingency Variables in the Revised Leader-Participation Model
1. Importance of the decision
2. Importance of obtaining follower commitment to the decision
3. Whether the leader has sufficient information to make a good decision
4. How well structured the problem is
5. Whether an autocratic decision would receive follower commitment
6. Whether followers “buy into” the organization’s goals
7. Whether there is likely to be conflict among followers over solution alternatives
8. Whether followers have the necessary information to make a good decision
9. Time constraints on the leader that may limit follower involvement
10.Whether costs to bring geographically dispersed members together is justified
11. Importance to the leader of minimizing the time it takes to make the decision
12. Importance of using participation as a tool for developing follower decision skills
© 2005 Prentice Hall Inc. All rights reserved. 11–26
Leader–Member Exchange Theory
Leader-Member Exchange (LMX) Theory
Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.
Leader-Member Exchange Theory
Leader-Member Exchange (LMX) Theory
• Because of time pressures, leaders form a special relationship with
a small group of followers: the “in-group”
• This in-group is trusted and gets more time and attention from the
leader (more “exchanges”)
• All other followers are in the “out-group” and get less of the
leader’s attention and tend to have formal relationships with the
leader (fewer “exchanges”)
• Leaders pick group members early in the relationship
How groups are assigned is unclear– Follower characteristics determine group membership
Leaders control by keeping favorites close
• Research has been generally supportive
Leader-Member Exchange (LMX) Theory
“Certain quality of an individual personality, by virtue of which he / she is set apart from ordinary people and treated as endowed with supernatural, superhuman, or at least specifically exceptional power or qualities”.
“Max Weber”
Charismatic Leadership
• House’s Charismatic Leadership Theory:– Followers make attributions of heroic or extraordinary leadership
abilities when they observe certain behaviors
• Four characteristics of charismatic leaders– Have a vision– Are willing to take personal risks to achieve the vision– Are sensitive to follower needs– Exhibit behaviors that are out of the ordinary
Charismatic Leadership
Are Charismatic Leaders born / Made?
• Traits and personality are related to charisma
• People can be trained to exhibit charismatic behaviors• 3 step Process
1. Develop on aura of charisma by maintaining an optimistic view.
2. Draw others in by creating a bond that inspires them to follow.
3. Bring out the potential in followers by tapping into their emotions
How Charismatic Leaders Influence Followers
• A four-step process:1. Leader articulates an attractive vision
• Vision Statement:
A formal, long-term strategy to attain goals• Links past, present, and future
2. Leader communicates high performance expectations and confidence in follower ability
3. Leader conveys a new set of values by setting an example
4. Leader engages in emotion-inducing and often unconventional behavior to demonstrate convictions about the vision
Does effective charismatic leadership depend on the situation?
Charismatic effectiveness may depend on situation– Charisma works best when:
• The follower’s task has an ideological component• There is a lot of stress and uncertainty in the
environment• The leader is at the upper level of the organization• Followers have low self-esteem and self-worth
The dark side of charismatic leadership
• Dark Side of Charisma
– Ego-driven charismatics allow their self-
interest and personal goals to override the
organization’s goals
Transformational Leadership
Transactional and Transformational Leadership
Transactional Leaders– Leaders who guide or motivate their followers in the
direction of established goals by clarifying role and task requirements
Transformational Leaders– Inspire followers to transcend their own self-interests for
the good of the organization; they can have a profound and extraordinary effect on followers
Not opposing, but complementary, approaches to leadership– Great transformational leaders must also be transactional;
only one type is not enough for success
Characteristics of the Two Types of Leaders
Transactional• Contingent Reward:
– Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments
• Management by Exception:– Active: Watches and searches
for deviations from rules and standards, takes corrective action
– Passive: Intervenes only if standards are not met
• Laissez-Faire: – Abdicates responsibilities,
avoids making decisions
Transformational
• 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
• Intellectual Stimulation:– Promotes intelligence,
rationality, and problem solving
• Individualized Consideration: – Gives personal attention, coaches,
advises
The Relationship between Transformational and Transactional Leadership
These two are not opposing approaches. They complement each other They are not equally important Transformational Leadership builds on Transactional
Leadership if you are a good transactional leader but do not have
transformational qualities. The best leaders are transactional and
transformational.
Full range of Leadership model
Laissez - Faire
Individualized Consideration
Intellectual Stimulation
Contingent Reward
Inspirational Motivation
Idealized Influence
Management by Exception
ActivePassive
Effective
Ineffective
Transactional
Transformational
How Transformational Leadership Works
Leaders – More effective
– More creative
– Encourage those who follow them
– Show greater agreement among
top manager about organizational
goal.
– Improving performance by building
consensus among group members
– Able to increase the follower
efficiency
How Transformational Leadership Works……
Response of leaders in Organization
- Greater decentralization
- Manager have propensity to take risk
- Compensation plans geared toward
long term result
- Facilitate corporate entrepreneurship.
Evaluation of Transformational Leadership
Transformational Leadership theory is not perfect 4 I’s in transformational leadership are not
always superior in effectiveness to transactional leadership.
It is more strongly correlated than transactional leadership with,
1. Lower turnover rates
2. Higher productivity
3. Lower employee stress and burnout
4. Higher employee satisfaction
Transformational Leadership versus Charismatic Leadership
Charismatic Leadership – Want followers to adopt charismatic world and go no further
Transformational leadership – Attempt to instill in followers the ability to question not only established views but eventually those established by leaders.
many researchers believes transformational is broader than charismatic leadership.
Leader score is high in both leadership.
Therefore, in practice they may be roughly equivalent.
Authentic leaders know who they are, know what they believe in value, and act on those values and beliefs openly and candidly
Authentic Leadership
Ethics and Leadership
Ethical Leaders Unethical Leaders Treat followers effective
Socialized Charismatic Leadership
leadership that conveys other centered (not self centered) values by leaders who model ethical conduct
Trust is a psychological state that exists when you agree to make yourself vulnerable to another
Trust and Leadership
Employees’ Trust in Their CEOsEmployees’ Trust in Their CEOs
Leader Trustworthiness
Integrity
Benevolence
Ability
Trust
Risk taking
Information sharing
Group Effectiveness
Productivity
Propensity to Trust
How trust developed?
Challenges to the Leadership Construct
Leadership as an AttributionLeadership as an Attribution
External
Internal
Individual Behaviour
Distinctiveness
Consensus
Consistency
External
External
Internal
Internal
Attribution Theory
Attribution Theory of LeadershipAttribution Theory of Leadership
– The idea that leadership is merely an attribution that people make about other individuals
Qualities Attributed to Leaders:
• Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding, and industrious.
• Effective leaders are perceived as consistent and unwavering in their decisions.
• Effective leaders project the appearance of being leaders.
Substitutes and Neutralizers for Leadership
• Leadership substitutes
subordinate, task, or organizational
characteristics that make leaders redundant or
unnecessary• Leadership neutralizers
subordinate, task, or organizational
characteristics that interfere with a leader’s
actions
Substitutes and – Continue……….
• Relationship- Task- oriented oriented
Characteristics Leadership Leadership
Individual • Experience/training No effect on Substitutes for
Professionalism Substitutes for Substitutes forIndifference to rewards Neutralizes Neutralizes
Job • Highly structured task No effect on Substitutes for
Provides its own feedback No effect on Substitutes forIntrinsically satisfying Substitutes for No effect on
Organization
• Explicit formalized goals No effect on Substitutes forRigid rules and procedures No effect on Substitutes forCohesive work groups Substitutes for Substitutes for
Online LeadershipOnline Leadership
Leadership at a Distance: Building Trust– The lack of face-to-face contact in electronic
communications removes the nonverbal cues that support verbal interactions.
– There is no supporting context to assist the receiver with interpretation of an electronic communication.
– The structure and tone of electronic messages can strongly affect the response of receivers.
– An individual’s verbal and written communications may not follow the same style.
– Writing skills will likely become an extension of interpersonal skills.
Finding and creating effective leaders
By reviewing the knowledge, skills and abilities needed to do the job
effectively.
Personality tests :- Can identify traits associated with leadership.
• Extraversion
• Conscientiousness
• Openness to experience
• Self monitoring – high self monitors are better at reading situations and
adjusting their behavior accordingly.
• Self confidence
• Having a vision
• The verbal skills to frame issues or charismatic physical presence.
• High emotional intelligence – especially in situations requiring transformational
leadership
• Experience – Poor predictor of leader effectiveness but situation- specific
experience is relevant.
Training leadersThese efforts take many forms:-• From executive leadership programs and outward bound programs
How can managers get maximum effect from their leadership trainings?
1. Let’s recognize the obvious. high self monitors – they have the flexibility to change their
behavior.2. What can organizations teach that might be related to higher leader
effectiveness?• Not “ vision creation” but, likely, implementation skills.• Can train people to develop “ an understanding about content
themes critical to effective visions”• Can teach skills – Trust building and mentoring• Can be taught situational – analysis skills.
A number of companies turn to executive coaches to help senior managers improve their leadership skills.Hired coaches to help top executives improve their interpersonal skills and be more professional in their approach.
Global implications
How culture might influence the validity of the theories ?
India Brazil France Egypt China
Action orientation & charisma were found to be the most important characteristics for effective leadership
•Team oriented,Participative &humane•Participative decision making would be suited to managing employees
•More bureaucratic view of leaders•Less likely to expect them to be humane & considerate.•A leader high on initiating structure will do best & can make decisions in a relatively autocratic manner
•Team oriented•Participative leadership •Relatively high- power-distance culture
•Emphasizes being polite, considerate & unselfish•It also has a high performance orientation•Moderately participative•Status difference between leaders and employees
A number of elements making up transformational leadership appear associated with effective leadership, regardless of the country
What elements of transformational leadership appear universal ?
ForesightVisionProviding encouragementTrust worthinessDynamismPositivenessPro-activeness
Universal aspects of leadership
Conclusions of the two members of the GLOBE team
“ Effective business leaders in any country are expected by their subordinates to provide a powerful & proactive vision to guide the company into the future, strong motivational skills to stimulate all employees to fulfill the vision, & excellent planning skills to assist in implementing the vision.
Mentoring – Leading for the Future Mentor: A senior employee who supports a less
experienced employee.
Career FunctionsHelping the protégé gain skills
and abilities
Lobbying for the protégé to get better assignments
Providing exposure to influential individuals in the organization
Acting as a sounding board for ideas
Protecting the protégé to his or her reputation
Psychological Functions
Counseling the protégé to bolster his/her confidence
Sharing personal experiences with the
protégé
Providing friendship and acceptance
Acting as a role model
Finding and Creating Effective LeadersFinding and Creating Effective Leaders
Selecting Leaders
Training Leaders
Summary and Managerial ImplicationsSummary and Managerial Implications
• Leadership is central to understanding group behavior as the leader provides the direction.
• Extroversion, conscientiousness, and openness all show consistent relationships to leadership.
• Behavioral approaches have narrowed leadership down into two usable dimensions.
• Need to take into account the situational variables, especially the impact of followers.
Summary conti…….Summary conti…….
• Research on charismatic and transformational leadership has made major contributions to our understanding of leadership.
• Leaders must be seen as authentic and trustworthy.
• Investment must be made in the future through mentoring and training leaders.
THANK YOU