© Farhan Mir IMS Current Issues in Management M Phil Leadership Key Perspectives and Research Findings Course Lecturer: Farhan Mir

© Farhan Mir IMS Expected Topics 1.Leadership 2.Organizational Citizenship Behavior (OCB) 3.Managing Diversity 4.Business Ethics and CSR 5.Change Management (Organizational Development) Mid 1.Creativity, Innovation and Entrepreneurship 2.Emotional Management 3.Technology Management – IT Management 4.Cross-Cultural Management 5.Organizational Identity

© Farhan Mir IMS Some important Resources Journals – Academy of Management Review (AMR) – Academy of Management Journal (AMJ) – Journal of Human Relations – Leadership Quarterly – Journal of Leadership – Journal of Organizational Behavior – Journal of Management Issues – Annual Sociological Review – Journal of Organizational Studies Some of these are available through the HEC Digital Library via – JStore could be a useful starting point

© Farhan Mir IMS Franklin D. Roosevelt (FDR) and Adolf Hitler

© Farhan Mir IMS

IMS Our Focus: Business Leaders Bill Gates remains the iconic technologist, entrepreneur, and business leader of his generation Gates launched Microsoft Windows in 1985 and is consistently ranked as one of the richest men in the world. five industries that Steve Jobs has upended - computers, Hollywood, music, retailing, and wireless phones. At this moment, no one has more influence over a broader swath of business than Jobs. Sam Walton founded Wal-Mart and Sam’s Club. Wal-Mart was founded in 1962 but experienced great growth during the 1980s.Walton was the richest man in America from

© Farhan Mir IMS Business Leaders… Katsuaki Watanabe CEO Toyota A.G. Lafley Chairman and CEO, Procter & Gamble Lakshmi Mittal CEO, Mittal Steels

© Farhan Mir IMS

IMS Leadership Challenge It has never been tougher to be a leader. You have to be at your best every day, making it happen, supporting your people.

© Farhan Mir IMS Leadership Defined Leadership is a process whereby an individual influences a group of individuals to achieve a common goal.

© Farhan Mir IMS Many Research Questions…. 11 What is leadership? Who is a leader? How do you develop a leader? How do you identify a potential leader? What are the Characteristic of an Effective Leader Do Effective Leaders enhance Company Performance? Even How do you become a leader?

© Farhan Mir IMS Trait vs. Process Leadership Certain individuals have special innate or inborn characteristics or qualities that differentiate them from non-leaders. – Resides in select people – Restricted to those with inborn talent Trait definition of leadership: LEADER FOLLOWERS Leadership Height Intelligence Extroversion Fluency Other Traits

© Farhan Mir IMS Trait vs. Process Leadership Leadership is a property or set of properties possessed in varying degrees by different people (Jago, 1982). – Observed in leadership behaviors – Can be learned The process definition of Leadership: LEADER Leadership (Interaction) FOLLOWERS

© Farhan Mir IMS Leadership & Management Zaleznik (1977) Managers Unidirectional Authority Leaders Multidirectional Influence Are reactive Prefer to work with people on problem solving Low emotional involvement Are emotionally active & involved Shape ideas over responding to them Act to expand available options Change the way people think about what is possible

© Farhan Mir IMS Leadership & Management Kotter (1990) Management Activities Leadership Activities “Produces order and consistency” Planning & Budgeting Organizing & Staffing Controlling & Problem Solving “Produces change and movement” Establishing direction Aligning people Motivating / Inspiring Major activities of management & leadership are played out differently; BUT, both are essential for an organization to prosper.

© Farhan Mir IMS Leadership Background Four Major Threads of Leadership – Trait theory – Behavior theory (getting things done and relating well with people). – Situational theory – Values-based transformational theory

© Farhan Mir IMS Leadership Background – Trait theory ( Zaccaro, Kemp, and Bader) - Alternative dispositional predictors - Distal or Proximal predictors – The Information-Processing Perspetive (D. J. Brown, Scott, and Lewis) – social and cognitive psychology - person- perception approach – Situational and Contingency theories of leadership (Ayman) - Success of leadership is a function of Contingencies - leaders are capable of environmental monitoring and of adjusting – Transformational, charismatic, and visionary theories of leadership (Sashkin) - hybrid-integrative theory - leaders as creators and shapers of organizational contexts.

© Farhan Mir IMS Current Research Focus on Leadership Leadership and Culture – Leadership and Cultural Transformation – Transformational Leaders – Impact of National Culture on Leaders ( Den Hartog and Dickson) – Contextual vs. Universal Traits of Leaders Leadership and Gender – Gender-based expectations of leaders (Eagly and Carli) Ethics and Leadership – Ethical Well being of Leaders ( Ciulla) - the ethics of leadership and leaders’ degree of moral development – Leadership in Ethics and CSR – Ethical Leadership Leadership Success – Leader’s Success in terms of Effectiveness – Leader’s advancement and ability to transform followers ( McCauley) Distributed Leadership – Emergent property of a group or network of interacting individuals (Gronn) – Concertive action - people work together in such a way that they pool their initiative and expertise – openness of the boundaries of leadership – varieties of expertise are distributed across the many, not the few

© Farhan Mir IMS Leadership - Trait Approach

© Farhan Mir IMS Trait Theories – the earliest work on Leadership Trait Research from 1904 TO 1947 – Research, encouraged by the need to identify potential military leaders, that sought to answer the question “What makes a leader?” – Attempted unsuccessfully to identify a single trait or universal cluster of traits that would differentiate leaders from followers. – Found a number of positive correlations for individual traits.

© Farhan Mir IMS Trait Theories of Leadership (cont’d) Trait Research from 1948 to 1970 – Multivariate experiments and factor analysis became the basic research tools in the study of trait and leadership consequences. – Leadership was now considered to be based on complex groupings of traits and social interactions, rather than on a single trait or a small cluster of traits – More research was now being conducted inside work organizations.

© Farhan Mir IMS Great Person Theories “Great Man” Theories (early 1900s) – Focused on identifying innate qualities and characteristics possessed by great social, political, & military leaders Trait Approach: one of the first systematic attempts to study leadership

© Farhan Mir IMS Great Man Theories Early 1900s Research focused on individual characteristics that universally differentiated leaders from nonleaders Traits Interacting With Situational Demands on Leaders s Landmark Stogdill (1948) study - analyzed and synthesized 124 trait studies - Leadership reconceptualized as a relationship between people in a social situation Mann (1959) reviewed 1,400 findings of personality and leadership in small groups - Less emphasis on situations - Suggested personality traits could be used to discriminate leaders from nonleaders Revival of Critical Role of Traits in Leader Effectiveness Stogdill (1974) - Analyzed 163 new studies with 1948 study findings - Validated original study - 10 characteristics positively identified with leadership Lord, DeVader, & Alliger (1986) meta-analysis - Personality traits can be used to differentiate leaders/nonleaders Kirkpatrick & Locke (1991) - 6 traits make up the “Right Stuff” for leaders Historical Shifts in Trait Perspective 1970’s - Early 90s Innate Qualities Situations Personality / Behaviors Today Intelligence Self-Confidence Determination Integrity Sociability 5 Major Leadership Traits

© Farhan Mir IMS Studies of Leadership Traits and Characteristics Leadership Traits

© Farhan Mir IMS Major Leadership Traits Intelligence – Intellectual ability including verbal, perceptual, and reasoning capabilities Self-Confidence – Ability to be certain about one’s competencies and skills Determination – The desire to get the job done (i.e., initiative, persistence, dominance, drive) Traits to possess or cultivate if one seeks to be perceived by others as a leader:

© Farhan Mir IMS Major Leadership Traits Integrity – The quality of honesty and trustworthiness Sociability – Leader’s inclination to seek out pleasant social relationships Traits to possess or cultivate if one seeks to be perceived by others as a leader:

© Farhan Mir IMS Big Five Personality Factors 5-Factor Personality Model & Leadership

© Farhan Mir IMS 5-Factor Personality Model & Leadership Results – a strong relationship between personality traits and leadership Extraversion – factor most strongly associated with leadership – Most important trait of of effective leaders Conscientiousness – 2 nd most related factor Neuroticism & Openness – next most related – Neuroticism negatively associated to leadership Agreeableness – only weakly related to leadership Big Five & Leadership Study using meta-analysis (Judge et al, 2002)

© Farhan Mir IMS Emotional Intelligence & Leadership people who are more sensitive to their emotions & their impact on others will be more effective leaders Underlying Premise Definition  Ability to perceive and: –apply emotions to life’s tasks –reason/understand emotions –express emotions –use emotions to facilitate thinking –manage emotions within oneself & relationships

© Farhan Mir IMS How Does the Trait Approach Work?  Focus of Trait Approach  Strengths  Criticisms  Application

© Farhan Mir IMS Focus of Trait Approach Focuses exclusively on leader – What traits leaders exhibit – Who has these traits Organizations use personality assessments to find “Right” people – Assumption - will increase organizational effectiveness – Specify characteristics/traits for specific positions Personality assessment measures for “fit” Leader Personality Assessments Personality Assessments

© Farhan Mir IMS Strengths Intuitively appealing – Perception that leaders are different in that they possess special traits – People “need” to view leaders as gifted Credibility due to a century of research support Highlights leadership component in the leadership process – Deeper level understanding of how leader/personality related to leadership process Provides benchmarks for what to look for in a leader

© Farhan Mir IMS Criticisms Fails to delimit a definitive list of leadership traits – Endless lists have emerged Doesn’t take into account situational effects – Leaders in one situation may not be leaders in another situation List of most important leadership traits is highly subjective – Much subjective experience & observations serve as basis for identified leadership traits Research fails to look at traits in relationship to leadership outcomes Not useful for training & development

© Farhan Mir IMS Application Provides direction as to which traits are good to have if one aspires to a leadership position Through various tests and questionnaires, individuals can determine whether they have the select leadership traits and can pinpoint their strengths and weaknesses Can be used by managers to assess where they stand within their organization and what is needed to strengthen their position Leadership Traits Intelligence Intelligence Self-Confidence Self-Confidence Determination Determination Integrity Integrity Sociability Sociability

© Farhan Mir IMS Leadership Behavioral Theories - Style Approach

© Farhan Mir IMS Early Behavior Theories of Leadership Behavioral Leadership Theory Emphasizes leaders’ behaviors (i.e., what leaders do) in considering leadership as an activity. Examines the managerial or leadership style of the leader’s behavior towards followers. Task-oriented behaviors focus on meeting targets and accomplishing goals. Relationship-oriented behaviors are actions taken to establish, maintain, and direct relationships with followers.

© Farhan Mir IMS Ohio State Studies Leadership Behavior Description Questionnaire (LBDQ) – Identify number of times leaders engaged in specific behaviors 150 questions – Participant settings (military, industrial, educational) – Results Particular clusters of behaviors were typical of leaders

© Farhan Mir IMS University of Michigan Studies Exploring leadership behavior – Specific emphasis on impact of leadership behavior on performance of small groups Results - Two types of leadership behaviors conceptualized as opposite ends of a single continuum – Employee orientation Strong human relations emphasis – Production orientation Stresses the technical aspects of a job – Later studies reconceptualized behaviors as two independent leadership orientations - possible orientation to both at the same time

© Farhan Mir IMS Blake & Mouton’s Managerial (Leadership) Grid  Leadership Grid Components – Authority-Compliance (9,1) – Country Club Management (1,9) – Impoverished Management (1,1) – Middle-of-the-Road Management (5,5) – Team Management (9,9) – Paternalism/Maternalism (1, 9; 9,1) – Opportunism

© Farhan Mir IMS The Leadership Grid®

© Farhan Mir IMS Authority-Compliance (9,1) Efficiency in operations results from arranging conditions of work such that human interference is minimal Heavy emphasis on task and job requirements and less emphasis on people Communicating with subordinates outside task instructions not emphasized Results driven - people regarded as tools to that end 9,1 leaders – seen as controlling, demanding, hard- driving & overpowering Definition Role Focus

© Farhan Mir IMS Country Club (1,9) Thoughtful attention to the needs of people leads to a comfortable, friendly organizational atmosphere and work tempo Low concern for task accomplishment coupled with high concern for interpersonal relationships De-emphasizes production; leaders stress the attitudes and feelings of people 1,9 leaders – try to create a positive climate by being agreeable, eager to help, comforting, noncontroversial Definition Role Focus

© Farhan Mir IMS Middle-of-the-Road (5,5) Adequate organizational performance possible through balancing the necessity of getting work done while maintaining satisfactory morale Leaders who are compromisers; have intermediate concern for task and people who do task To achieve equilibrium, leader avoids conflict while emphasizing moderate levels of production and interpersonal relationships 5,5 leaders - described as expedient; prefers the middle ground, soft- pedals disagreement, swallows convictions in the interest of “progress” Definition Role Focus

© Farhan Mir IMS Team (9,9) Work accomplished through committed people; interdependence via a “common stake” in the organization’s purpose, which leads to relationships of trust and respect Strong emphasis on both tasks and interpersonal relationships Promotes high degree of participation & teamwork, satisfies basic need of employee to be involved & committed to their work 9,9 leaders - stimulates participation, acts determined, makes priorities clear, follows through, behaves open-mindedly and enjoys working Definition Role Focus

© Farhan Mir IMS Leadership Styles

© Farhan Mir IMS How Does the Style Approach Work?  Focus of Style Approach  Strengths  Criticisms  Application

© Farhan Mir IMS Strengths Style Approach marked a major shift in leadership research from exclusively trait focused to include behaviors and actions of leaders Broad range of studies on leadership style validates and gives credibility to the basic tenets of the approach At conceptual level, a leader’s style is composed of two major types of behaviors: task and relationship The style approach is heuristic - leaders can learn a lot about themselves and how they come across to others by trying to see their behaviors in light of the task and relationship dimensions

© Farhan Mir IMS Criticisms Research has not adequately demonstrated how leaders’ styles are associated with performance outcomes No universal style of leadership that could be effective in almost every situation Implies that the most effective leadership style is High-High style (i.e., high task/high relationship); research finding support is limited

© Farhan Mir IMS Application Many leadership training and development programs are designed along the lines of the style approach. By assessing their own style, managers can determine how they are perceived by others and how they could change their behaviors to become more effective. The style approach applies to nearly everything a leader does.

© Farhan Mir IMS Leadership Contingency Theories

© Farhan Mir IMS Contingency Theories of Leadership The Fiedler Model (cont’d) – Proposes that effective group performance depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence. – Assumptions: A certain leadership style should be most effective in different types of situations. Leaders do not readily change leadership styles. – Matching the leader to the situation or changing the situation to make it favorable to the leader is required.

© Farhan Mir IMS Contingency Theories… (cont’d) The Fiedler Model (cont’d) – Least-preferred co-worker (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 – Situational factors in matching leader to the situation: Leader-member relations Task structure Position power

© Farhan Mir IMS Contingency Theories… (cont’d) Hersey and Blanchard’s Situational Leadership Theory (SLT) – Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness. Acceptance: leadership effectiveness depends on whether followers accept or reject a leader. Readiness: the extent to which followers have the ability and willingness to accomplish a specific task. – Leaders must relinquish control over and contact with followers as they become more competent.

© Farhan Mir IMS Contingency Theories… (cont’d) Hersey and Blanchard’s Situational Leadership Theory (SLT) – Creates four specific leadership styles incorporating Fiedler’s two leadership dimensions: Telling: high task-low relationship leadership Selling: high task-high relationship leadership Participating: low task-high relationship leadership Delegating: low task-low relationship leadership

© Farhan Mir IMS Leadership Contemporary Theories

© Farhan Mir IMS LMX Researchers found that high quality leader member exchanges produced less employee turnover, more positive performance evaluations, higher frequency of promotions, greater organizational commitment, more desirable work assignments, better job attitudes, more attention and support from the leader, greater participation, and faster career progress over 25 years. When leaders and followers have good exchanges, they feel better, accomplish more, and the organization prospers.

© Farhan Mir IMS Leader Member Exchange

© Farhan Mir IMS Leader Member Exchange Strengths It makes sense by describing work in terms of those who contribute more and those who do the bare minimum. Unique because it is the only theory to identify the dyadic relationship. Effective leader member exchanges are important Notes the importance of communication in leadership Reminds leaders to be fair about who they let into the in group – this is based on work performance not race, sex, ethnicity, religion, etc Large amount of research supports this theory

© Farhan Mir IMS Contemporary Views on Leadership Transactional Leadership – Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transformational Leadership – Leaders who inspire followers to transcend their own self-interests for the good of the organization by clarifying role and task requirements. – Leaders who also are capable of having a profound and extraordinary effect on their followers.

© Farhan Mir IMS Transformational Leadership A process that changes and transforms people. It is concerned with emotions, values, ethics, standards and long term goals and includes assessing followers motives, satisfying their needs, and treating them as full human beings. Incorporates charismatic and visionary leadership and though the leader plays a pivotal role in precipitation change, followers and leaders are inextricably bound together in the transformation process. The process whereby a person engages with others and creates a connection that raises the level of motivation and morality in both the leader and the follower.

© Farhan Mir IMS Charismatic Leadership The German sociologist Max Weber described certain leaders as having exceptional qualities—a charisma—that enabled them to motivate followers to achieve outstanding performance. Charisma is a Greek word meaning “gift bestowed by the gods.”

© Farhan Mir IMS Requirements for Charismatic Leadership Four conditions give rise to charismatic leadership: 1.A crisis situation 2.Potential followers in distress 3.An aspiring leader 4.A doctrine promising deliverance.

© Farhan Mir IMS A Blessing and a Curse "Charisma is a tricky thing. Jack Kennedy oozed it—but so did Hitler and Charles Manson. Con artists, charlatans, and megalomaniacs can make it their instrument as effectively as the best CEO's entertainers, and presidents. Used wisely, it's a blessing; indulged, it can be a curse. Charismatic visionaries lead people ahead—and sometimes astray." Fortune, January 15, 1996

© Farhan Mir IMS “I never forget that I live in a house owned by all the American people and that I have been given their trust.” – Franklin D. Roosevelt

© Farhan Mir IMS “We shall not capitulate... no never. We may be destroyed, but if we are, we shall drag a world with us... a world in flames.” – Adolf Hitler

© Farhan Mir IMS DIMENSIONS OF TRANSFORMATIONAL LEADERSHIP The four ‘ I ’s’ Idealised i nfluence (charisma): Idealised i nfluence (charisma): - follower admiration & respect, - risk sharing - consideration for follower needs - ethical & moral conduct (trust)

© Farhan Mir IMS TRANSFORMATIONAL LEADERSHIP I nspirational motivation I nspirational motivation - meaning & challenge to work I ntellectual stimulation I ntellectual stimulation - creative problem solving I ndividualised consideration I ndividualised consideration - listening, praising (Bass & Avolio, 1994)

© Farhan Mir IMS Contemporary Views Charismatic Leadership – An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways. – Characteristics of charismatic leaders: Have a vision. Are able to articulate the vision. Are willing to take risks to achieve the vision. Are sensitive to the environment and follower needs. Exhibit behaviors that are out of the ordinary.

© Farhan Mir IMS Personality Characteristics, Behaviors, and Effects of Followers of Charismatic Leadership

© Farhan Mir IMS Transformational Leadership Pros -It has been widely researched since 1970’s -It has an intuitive appeal (consistent with society’s popular notion of what leadership means) -It treats leadership as a process that occurs between followers and leaders -It provides a broader view of leadership that augments other leadership models -It places a strong emphasis on followers needs, values, and morals -Evidence supports this theory – it does work!

© Farhan Mir IMS Trends and Challenges in Leadership A glimpse into New Perspectives and Research Initiatives in Leadership

© Farhan Mir IMS These statements show that leadership is not just the property of an individual figure. Leadership is much more. What is Leadership? “She was a courageous leader” “An innovative leadership culture flourished in the company” “The company board showed great leadership” “Scandinavia takes a lead on social welfare”

© Farhan Mir IMS Leadership Background Four Major Threads of Leadership – Trait theory – Behavior theory (getting things done and relating well with people). – Leadership and Gender – Distributed Leadership – Situational theory Leadership and Culture Leadership and Culture – Values-based transformational theory Leadership and Ethics Leadership and Ethics Effective Leaders as transformers Effective Leaders as transformers

© Farhan Mir IMS

IMS `It is refreshing when you come across a clear, well- written book about leadership that is not peddling the latest gimmick, buzzword or quick fix. What makes this work really refreshing is the emphasis on the critical dimension in the title and the breadth of the author's own experience of work' - Times Higher Education “In a highly original way, taking “Critical Theory” as a point of departure, Dr. Western helps us to obtain greater insight into the enigma of leadership.” Manfred Kets de Vries Director INSEAD Global Leadership Center ‘‘Leadership A Critical Text’ is an outstanding addition to the Leadership literature. This is an excellent text which takes the field to new heights in the first decade of the 21st Century". Professor Cary L. Cooper, CBE, Professor of Organizational Psychology and Health at Lancaster University