2 Leadership is the capacity to translate vision into reality Warren Bennis
3 What Is Leadership? Leadership The ability to influence a group toward the achievement of goals.ManagementUse of authority inherent in designated formal rank to obtain compliance from organizational members.
4 Trait Theories Traits Theories of Leadership Leadership Traits: Theories that consider personal qualities & characteristics that , differentiate leaders from nonleaders.The search for personality, social, physical or intellectual attributes that describe leaders from non leaders.Leadership Traits:Ambition and energyThe desire to leadHonest and integritySelf-confidenceIntelligenceHigh self-monitoringJob-relevant knowledge
5 Trait TheoriesAssumptionsPeople are born with inherited traits.Some traits are particularly suited to leadership.People who make good leaders have the right (or sufficient) combination of traits.Limitations:No universal traits found that predict leadership in all situations.Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.For a long period, inherited traits were sidelined as learned and situational factors were considered to be far more realistic as reasons for people acquiring leadership positions.
6 Behavioral Theories Behavioral Theories of Leadership Theories proposing that specific behaviors differentiate leaders from nonleaders.Trait theory: Leaders are born, not made.Behavioral theory: Leadership traits can be taught.
7 Ohio State Studies 1940sResearchers sought to identify 1000 dimensions of leader behaviour which they narrowed down the list to two categoriesThey called the dimensions as initiating structure and considerationInitiating structure – the extent to which the a leader is likely to define and structure his or her role and those of subordinates in the search for goal attainment.Consideration – the extent to which a person is likely to have job relationships that are characterized by mutual trust, respect for employees as equals.
8 University of Michigan Studies Employee-Oriented LeaderEmphasizing interpersonal relationsTaking a personal interest in the needs of employees and accepting individual differences among members.The research strongly favoured leaders who were employee oriented in their behaviour.Therefore higher productivity and higher job satisfactionProduction-Oriented LeaderOne who emphasizes technical or task aspects of the job.Low productivity and lower job satisfaction
9 The Managerial Grid (Blake and Mouton) E X H I B I T 11–1
10 The Managerial Grid High Concern for people Low Low 1,9Country club managementThoughtful attention needs of peoplefor satisfying relationships leads toA comfortable, friendly organizationatmosphere and work tempo9,9Team managementWork accomplishment is fromcommitted people, interdependencethrough a “common stake” in organizationpurpose leads to relationshipof trust and respect9876Concern for people55,5Organization Man ManagementAdequate organization performancepossible through balancing the necessity toget out work with maintainingmorale of the people at a satisfactory level431,1Impoverished ManagementExertion of minimum effort to getrequired work done is appropriateto sustain organization membership9,1Authority-ObedienceEfficiency in operations resultsfrom arranging conditions ofwork in such a way that humanelements interfere to a minimal degreeLow21267813459LowConcern for productionHigh
11 Scandinavian StudiesResearchers in Finland and Sweden began reassessing whether there are only two dimensions that capture the essence of leadership behaviour.Their basic premise is that in a changing world effective leaders would exhibit development oriented behaviourConsidering the earlier approaches these researchers felt that this dimension existed and is necessary in 21 st century.
12 Contingency Theories Fiedler’s Contingency Model The 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) QuestionnaireAn instrument that purports to measure whether a person is task- or relationship-oriented.
13 Fiedler’s Model: Defining the Situation Leader-Member RelationsThe degree of confidence, trust, and respect subordinates have in their leader.Task StructureThe degree to which the job assignments are procedurized.Position PowerInfluence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.
15 Message By Jack Francis Welch “If you pick the right people and give them the opportunity to spread their wings and put compensation as a career behind it almost don’t have to manage it” “If you don’t have competitive advantage, don’t compete” “Control your own destiny or someone else will”
16 Difference between leaders & Managers InnovateAdministerDevelopMaintainInspireControlLong Term ViewShort term viewAsk what and whyAsk, how and whenOriginateInitiateChallenge the status quoAccept the status quoDo the right thingsDo Things right
17 Different Styles of Leadership Autocratic leadershipBureaucratic leadershipCharismatic leadershipDemocratic leadership or Participative leadershipLaissez-faire leadershipPeople-oriented leadership or Relations-Oriented leadershipServant leadershipTask-oriented leadershipTransactional leadershipTransformational leadership
18 Charismatic Leadership Key Characteristics of Charismatic leadersSelf Confidence- They have complete confidence in their judgment and ability.A vision- This is an idealized goal that proposes a future better than the status quo. The greater the disparity between idealized goal and the status quo, the more likely that followers will attribute extraordinary vision to the leader.Ability to articulate the vision- They are able to clarify and state the vision in terms that are understandable to others. This articulation demonstrates an understanding of the followers’ needs and, hence acts as a motivating force.Strong convictions about vision- Charismatic leaders are perceived as being strongly committed, and willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve their vision.Behavior that is out of the ordinary- Those with charisma engage in behavior that is perceived as being novel, unconventional, and counter to norms. When successful , these behaviors evoke surprise and admiration in followers.Perceived as being a change agent- Charismatic leaders are perceived as agents of radical change rather than as caretakers of the status quo.Environmental sensitivity- These leaders are able to make realistic assessments of the environmental constraints and resources needed to bring about change.
19 Transactional vs Transformational leaders Characteristics of Transactional and transformational leadersTransactional LeadersContingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishmentManagement by exception (active): Watches and searches for deviations from rules and standards, takes corrective action.Management by exception (passive): Intervenes only if standards are not metLaissez faire: Abdicates responsibilities, avoids making decisionsTransformational LeadersCharisma : Provides vision and sense of mission, instills pride, gains respect trust.Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.Intellectual Stimulations: Promotes intelligence, rationality, and careful problem solving.Individualized consideration: Gives personal attention, treats each employee individually, coaches, advises.
20 Traits of Exceptional Leaders An outside in perspective – Eg Dell computer which puts the customer at the very centerAn evangelical leadership gene Eg – Lou Gerstner IBM had this trait in shifting companies mindset he was intensely focused on restoring outside in perspectiveUnderstands the critical role of culture Eg- Michael Dell had the performance oriented culture suggesting that if you don’t perform at Dell go somewhere else Eg- Sam Walton had family oriented culture in Wal MartCreates next generation products , processes or solutions EG- This is in alignment with the vision, Bill Gates had anticipated the market for software , Sam Walton realized the tremendous potential of Walmart in 1962Implements the best ideas regardless of origin Eg Sam Walton ,went into the competitors stores to emulate the best practices, IBM &GE ran into the trouble when their managers stopped searching outside the company for answersAdvances the leadership body of knowledge
21 MODELS OF LEADERSHIP- CHANGE - CHARISMA TO BUSINESS LEADERS – FORMAL Vs MORAL AUTHORITY MATRIXHigh +Hitler GeorgeWashington+ Man Mohan- Many - Mahatma Gandhi- CelebritiesLow CHOICE (Moral Authority) High +( Stephen Covey )Position(FormalAuthority)
23 POA Popular concept of viewing leaders as coaches. Visit an organization specializes in training coaches as managers.Look at international coaching federation find out the answersWould you like to be led by a coach as these organizations define. What would be the advantages and disadvantages of viewing leaders this way ?Based on your own leadership style, would you make a good coach ? Why or why not ?Discuss a situation in which a coaching approach to leadership is particularly effective. What would be a situation where a coaching approach would seem to be ineffective ?Small - Case Study
24 Cognitive Resource Theory Cognitive Resource Theory- reconceptualized by Fiedler Joe GarciaA theory of leadership that states that stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of stress on the leader.Research Support:Less intelligent individuals perform better in leadership roles under high stress than do more intelligent individuals.Less experienced people perform better in leadership roles under low stress than do more experienced people.
25 Hersey and Blanchard’s Situational Leadership Theory Situational Leadership Theory (SLT)A contingency theory that focuses on followers’ readiness.Able and UnwillingUnable and UnwillingUnable but WillingAble and WillingFollower readiness: ability and willingnessLeader: decreasing need for support and supervisionDirectiveHigh Task and Relationship OrientationsSupportive ParticipativeMonitoring
26 Leadership Styles and Follower Readiness (Hersey and Blanchard) Supportive ParticipativeAbleMonitoringLeadership StylesHigh Task and Relationship OrientationsUnableDirectiveWillingUnwilling
27 Leader–Member Exchange Theory Leader-Member Exchange (LMX) TheoryLeaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.
29 Path-Goal Theory Path-Goal Theory 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.
31 Leader-Participation Model Leader-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.It was a decision tree having 7 contingency variables with 5 leadership styles.The leadership model is now revised to 11 contingency variables.The model however, fails to have stress,Intelligence and experience in this.
32 Contingency Variables in the Revised Leader-Participation Model Importance of the decisionImportance of obtaining follower commitment to the decisionWhether the leader has sufficient information to make a good decisionHow well structured the problem isWhether an autocratic decision would receive follower commitmentWhether followers “buy into” the organization’s goalsWhether there is likely to be conflict among followers over solution alternativesWhether followers have the necessary information to make a good decisionTime constraints on the leader that may limit follower involvementWhether costs to bring geographically dispersed members together is justifiedImportance to the leader of minimizing the time it takes to make the decisionImportance of using participation as a tool for developing follower decision skills
33 Deeds for leadersVivah or marriage – between the king & kingdom (leader and organization ).In the absence of this a man is not a leader just an employee doing a job that gives him salary and status. Don’t expect him to be proactive ,creative or enthusiasticRajsuya – One has to prove tangible achievement and has to be accepted by peer group.Abhishek – public bathing was transformational ritual Eg- a field sales manager sent to his headquarters without any attempt by the management to ceremonially crown him king in front of those he is supposed to manageArticle from corporate doisser
34 Deeds for leadersDharma – his vision and how he expects to achieve or realise this vision.Varna – station in the organization and ashrama or stage in the employeeVarana –dharma – means defining the roles and rights and the responsibilities of every employeeAshrama –dharma – knowing which member of the organization is in which stage of his job or his career – learning stage or retiring stage
35 Deeds for LeadersAshwamedh yagna – this helped the kind identify who submitted themselves to him and who challengedEg- PPT- horse, excel sheet with all the search data justifying the nos –army,Digvijay means conquest of the sky or the directions. In corporate world the king must travel through different departments and ensure he is seen and heard and to assert his authority and to tell where he plans to go from here.Vajpeya - a yagna of regeneration. To make the head roll to tell the world who is the boss