2 Leadership - what is it?“influencing people so that they will strive willingly towards the achievement of group goals” 11 Koontz, H. and C. O’Donnell. “Management: A System of Contingency Analysis of Managerial Functions”. McGraw-Hill, New York, 1976.
3 Analysis of leadership effectiveness Define and measure some criteria of organizational effectivenessAssess leadership style of organization’s leadersAttempt to correlate organizational performance with leadership styles
4 How important is a leader? In most cases, people will perform at about 60% of their potential with no leadership at allThus, an additional 40% can be realized if effective leadership is available
5 capabilityutilization40%Contribution due to leadershipability of manager60%Default contribution due toneed for a job, peer pressure, etc.
6 The 2 dimensions of management Economic or productivity-based“concern for production”Employee condition and morale“concern for people”
7 The 2 dimensions of management These can also be thought of as:Initiating structure (get it done)Consideration (human condition)
8 Styles of leadershipXXConsiderationXXXInitiating structure
9 Styles of leadership concern for people concern for production 9BenevolentLeader(Y)TeamLeader(Z)concern forpeopleLaissez-faireLeader(L)AutocraticLeader(X)1concern for production 9
10 Which style of leadership works best? Team Leader (Z) has proven to be the most effective in general (9,9)Requires a “balancing act” of getting things done and having a genuine concern for peopleCertain special situations may require other styles (i.e. making the atom bomb)
11 Theory “L”: Laissez-faire leader Uninvolved - “leave them alone”Sees main role as passer of informationLets others make decisionsBasically abdicates responsibility for team or unit
12 Theory “X”: Autocratic leader Lacks flexibilityControlling and demanding“carrot and stick” approachFocused solely on productivity
13 Theory “Y”: Benevolent leader Very people oriented; encouragingOrganizes around peopleCan be paternalistic“country club” atmosphere: non-competitive
14 Theory “Z”: Team leader Balances production and people issuesBuilds a working team of employeesTeam approach: involves subordinatesOrganization is a vehicle for carrying out plans
15 Results of leadership styles Theory L: “missing management”Very low productivityTheory X: “my way or the highway”Job stress; low satisfaction; unions formTheory Y: “country club”Low achievement; good people leaveTheory Z: “good manager”High productivity, cooperation, low turnover, employee commitment
16 Origins of leadership Are leaders born or made? BOTH. Evidence that both inherent personality and environment are factorsWhat kind of leader would you be?
17 Summary Learn to identify style of your manager If possible, seek a Theory Z environmentMore common in recent yearsGet management trainingInherent leadership styles can be changed, but takes effort