Leadership “Crowd will follow a leader who marches twenty steps in advance; but if he is a thousand steps in front of them, they do not see & do not follow him”

Leadership Ability to influence people toward the attainment of organizational goals

The creative and directive force of morale The process of influencing an organized group toward accomplishing its goals The Process by which an agent induces a subordinate to behave in a desired manner An interpersonal relationship in which others comply because they want to, not because they have to Leadership is a complex phenomenon involving the leader, the followers, and the situation.

This chapter explores………. Define Leadership Differences between Leader & Manager Sources of Leader power Leadership traits Autocratic Vs Democratic New Leadership styles Transformational, charismatic, interactive

Definition: The ability to influence people toward the attainment of goals. Aspects of Leadership: People Influence Goals “Remember the difference between a boss & a leader a boss says GO!- a leader says “Lets Go”

One of the four primary function tasks of managers is LEADING Leadership is a key ingredient in effective management / Managerial level at all levels When Leaders are effective Subordinates or followers are highly motivated, committed & high performing

Difference Between Leaders & Managers Administrates Maintains Short-range view Asks How & When Does things Right Focuses on System & Structure Leader Innovates Develops Long-range view Asks What & Why Does the Right Thing Focuses on People Risk taking, dynamic, creativity, change, vision Planning, controlling, efficiency, procedure regulation, control & consistency

Leadership Vs Management Class Discussion

Leader VS Manager Create Vision Mission for Org Involves having a vision of what the Org can become Leadership power comes from personal sources Implement vision Management relies on universal skills such as planning, budgeting and controlling Management powers comes from organizational structure

(Contd)….. The main difference between them is of POWER Power: The potential ability to influence the behavior of others. Within Organization, there are typically five sources of power; One can have power without even using ? “Power does not need to be exercised in order to have its effects” “You Don’t Lead By Hitting People Over The Head- That’s Assault, Not Leadership”

Position Power Power that comes from the Organization Managers position gives him/her power to REWARD or PUNISH subordinates in order to influence their behavior These powers are used by managers to change employee behavior Legitimate Reward Coercive

Personal Power Personal power comes from internal sources, such as specialized knowledge or personality characteristics Personal power is the tool of the leader Subordinates follow a leaders because of the RESPECT, ADMIRATION or CARING they feel for the individual & his/her ideas Expert Referent

Types of Power Position Power Legitimate Reward Coercive Personal Power Expert Referent Compliance Resistance Commitment Strong leadership under weak management is no better

“ Legitimate authority & Leadership are not the same thing” Legitimate Power Leader has authority because he has been assigned a particular role in an Org Boss assign projects Coach decides who plays Teacher assigns homework & awards “ Legitimate authority & Leadership are not the same thing” Example ?

Reward Power The power to give or withhold rewards ( pay raises, bonuses, promotion recommendations, interesting job assignments) Greater the number or rewards a manager controls and the more important the rewards are to subordinates, greater is the managers reward power Managers can use rewards to influence subordinates behavior

Coercive Power Authority to punish or recommend punishment Ability to control others through fear of punishment Managers having a right to demote, fire or criticize employees Examples: Army court-martialing Soldiers Employers firing lazy workers Example : 24/7 Get rid of him

Expert Power Power of knowledge & potential to influence others through their relative expertise in particular field Surgeon influence in hospital Mechanic influence of peers Bill Gates has expertise in software design

Referent Power Potential influence due to strength of the relationship btw the leader & the follower Leaders who are likeable & whom subordinates wish to use as role model are especially likely to posses REFERENT POWER Examples: Students response to likely teacher would be diff than less popular teacher: Buddy ryan fired as head couch of Philadelphia football team…… Players expressed fierce loyalty to him “ We’d do things for Buddy that we wouldn’t do for another coach, I ‘d sell my body 4 Buddy” That’s Referent Power

Leadership Autocratic VS Democratic Leadership

Relationship between personal traits & leaders success ? Leadership Traits Traits are distinguishing qualities or characteristics of a person, such as intelligence, values & appearance Relationship between personal traits & leaders success ? 3 Football coaches have diff personality traits, but all are successful leaders of their football programs

Traits of a Good Leader Honesty - Display sincerity, integrity in all your actions. Deceptive behavior will not inspire trust. Competent - Your actions should be based on reason and moral principles. Forward-looking Set goals and have a vision of the future. Inspiring – Display confidence in all that you do. Take charge when necessary. Intelligent - Read, study, and seek challenging assignments

Autocratic VS Democratic Leaders A leader who tends to centralize authority and rely on legitimate, reward & coercive power to manage subordinates Retain most of the authority to themselves Task oriented A leader who delegates authority to others, encourages participation & relies on expert and referent power to manage subordinates

Autocratic VS Democratic Leaders Groups with Autocratic style of leadership performs well as the leader was present to supervise them However group members displeased– close supervision & feelings of hostility frequently arose Group performance almost as good, even performed well the leader was absent and left the group on its own Empowerment of lower employees is popular trend in companies today

Boss centered or Subordinate centered depends on Organizational circumstances Time pressure---takes too long for subordinates to learn how to make decisions- Autocratic style – Skill difference —Greater the skill diff more autocratic the leader approach

New Leadership Approaches Transactional Leader Charismatic Leader Transformational Leader Interactive Leaders Servant Leaders

Transactional Leadership A leader who clarifies subordinates role and task requirements, initiates structure, provide rewards and display consideration for subordinates Leadership that motivates subordinates high performance & punish them for low performance ----- not making any kind of dramatic changes

Transactional Leadership Where leaders & followers are in some type of exchange relationship in order to get needs met “Example: superior give rewards to sales person for increasing monthly sales”

Charismatic Leaders A leaders ability to motivate subordinates to do more than normally expected An enthusiastic, self confident leader able to clearly communicate his or her vision of how good things could be Have an emotional impact on subordinates Have a vision, masterful communication skills, inspire trust, make group members feel capable & have high energy Tend to emerge during crises

( Still his name surfaces frequently in discussions of charisma ) Bill Gate:-Despite his wide appeal, many consider Gates to be brash, out spoken too ail controlling & obsessed with demolishing the competition ( Still his name surfaces frequently in discussions of charisma ) Richard Branson:- Imaginative entrepreneur To him risking life is part of doing business Dresses like Maverick “ Keeping up with Richard is almost impossible, Ideas constantly pop out of his brain”

The dark side of charismatic leadership Some believe that charismatic leadership can be exercised for evil purposes Observed that some are unethical and lead their Org toward illegal & immoral ends

Transformational Leadership A leader distinguish by a special ability to bring about innovation and change businesses today “overmanaged & underled”- “Org complexity” , “productive change” TL balance the demands of both Have their eyes on the bigger picture of how much better things could be in their Org

Transformational leadership is precisely what developing countries need in order to change their current situation & advance to the next level

Interactive Leaders Women move into higher positions in organizations, they often possess a diff leadership style A leader who is concerned with consensus building, is open and inclusive and encourages participation Leadership that believes that the best performance results when people are excited about their work and feel good about themselves This style is not limited to women, male managers are learning to adopt this style by developing their skills in attention to non verbal behavior, empathy, cooperation, collaboration & listening

Servant Leaders A leader who works to fulfill subordinates needs and goals as well as to achieve the organizations larger mission Sam Walton of Wal-Mart’s corporate culture was to lead from the top but run from the bottom ( provide workers with whatever they need to serve the customers- info, inspiration & then get out of the way) Great leaders are those who serve others Leadership is about serving the community not about exercising power and enjoying privilege

Do women managers lead in different ways than men?

Are male or female managers more effective as leaders ?

Summary