ORGANIZATIONAL BEHAVIOR Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B, JU Mahfuza Khatun Lecturer, F & B, JU LEADERSHIP Chapter 7

1.The Nature Of Leadership 2.Difference Leadership Styles 3.Contingency Approaches to Leadership 4.Likert Four System of Management AFTER STUDYING THIS CHAPTER, YOU SHOULD BE ABLE TO UNDERSTAND: L E A R N I N G O B J E C T I V E S Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

Leadership: is the process of influencing and supporting others to work enthusiastically toward achieving objectives. It’s the critical factor that helps an individual or a group - identify its goals motivates assists in achieving the stated goals. THE NATURE OF LEADERSHIP: Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

Leadership is an important part of management. Role of the Leader: –Establishing a clear vision –Sharing that vision with others so that they will follow it willingly –Provide information, knowledge and methods to realize vision –Coordinating and balancing the conflicting interest of all members Management and Leadership: Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

When a Leader fail: 1.Have opportunity but fail to change 2.Fail to understand the situation 3.Fail to control the system rather control by the system 4.Fail to take decision when and where it is needed Negative Qualities of the Leader: 1.Less or no conceptual skill 2.Abrasiveness 3.Arrogance 4.Aloofness Management and Leadership (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

Leadership Behavior: Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU Skill of Leader: 1.Technical Skill : refers to a person’s knowledge of and ability in any type of process or technique. Employees are promoted to leadership responsibilities, their technical skills become proportionality less Important.

Leadership Behavior (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU Skill of Leader: The three broad types of skills leaders use are- 2. Human Skill: is the ability to work effectively with people and to build teamwork.

Leadership Behavior (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU Skill of Leader: The three broad types of skills leaders use are- 3. Conceptual Skill: Is the ability to think in terms of models, frameworks, and broad relationships, such as long range plans.

Leadership Behavior (Skill of Leader) (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU Variation in the use of leadership skills at different organizational level:

Followership: Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU Followership behavior include:  Not competing with the leader to be in the limelight  Being loyal and supportive, a team player  Not being a “yes person” who automatically agree  Acting as a devil’s advocate by raising penetrating question  Constructively confronting the leader’s ideas, values, and actions  Anticipating potential problems and preventing them

1.Autocratic Leaders: Centralize power and decision making in themselves. Autocratic Leaders typically is negative, based on threats and punishment. Advantages of Autocratic Leaders : When leader is most knowledgeable one Permits quick decision Allows the use of less competent subordinates Provide security and structure for employees Conflicting among the participants Leadership Styles and Use of power: Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

1.Autocratic Leaders(Contd.): Disadvantages of Autocratic Leaders : Most employees dislike it It is extreme enough to create fear and frustration Leadership Styles and Use of power (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

2. Consultative Leaders: approach one or more employees and ask them for inputs prior to making a decision. 3. Participative Leaders: Tended to involve employees in decision making, delegating authority, use feedback as an opportunity for employees. Types of Leadership Style (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

 Fiedler’s Contingency Theory of Leadership: Fiedler shows that a leader’s effectiveness is determined by the interaction of employee-orientation with three additional variables that relate to the followers, the task, and the organization. Contingency approaches to Leadership style: Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

 Fiedler’s Contingency Theory of Leadership (Contd.): Leader-member relations are determined by the manner in which the leader is accepted by the group. Task structure reflects the degree to which one specific way is required to do the job. Leader position power describes the organizational power that goes with the position the leader occupies. Contingency approaches to Leadership style (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

 Hersey & Blanchard’s Situational Leadership Model: Focuses on the maturity of the followers or the subordinates. Where the subordinates maturity is defined by three criteria: Degree of achievement motivation Willingness to take on responsibility Amount of education & or experience “Management success mainly depends on selection of the right leadership style based on the follower’s maturity”. Contingency approaches to Leadership style (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

 Hersey & Blanchard’s Situational Leadership Model(Contd.): Key management Leadership styles: Telling Style: (High task- low relationship): The leader define the role & tell the follower-what, how, when to do tasks. ‘Effective when follower’s are very low level of maturity’. Selling : (High task- High relationship): Leader provides both directional and supportive behavior. ‘Effective when follower’s are low side of maturity’. Contingency approaches to Leadership style (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

 Hersey & Blanchard’s Situational Leadership Model(Contd.): Key management Leadership styles: Participating (Low task- High relationship): The leader and followers share in decision making. ‘Effective when follower’s are High Side of maturity’. Delegating (Low task- Low relationship): Leader provides little direction or support to their followers. ‘Effective when follower’s are very High Side of maturity’. Contingency approaches to Leadership style (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

 Trait Theory of Leadership: also known as the Greatman theory of leadership is based on the view that leaders are born, not made. It was thought that traits - intelligence, assertiveness, height, good vocabulary, attractiveness, self-confidence etc, are the key to be a leader. Contingency approaches to Leadership style (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

 Charismatic Leadership: The followers make attribution of heroic or extraordinary leadership abilities when they observe certain behaviors. Characteristics of Charismatic Leaders: Self-confidence and clear vision Ability to articulate the vision among the followers Behavior as an –out of the ordinary Appearance as a change agent Contingency approaches to Leadership style (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

System-1: Exploitative-authoritative: Are highly autocratic thus have little trust in subordinates Motivate people through fear and punishment Limit decision making to the top System-2:Benevolent-authoritative: Managers have a patronizing confidence and trust in subordinates Motivates with rewards and some punishment Solicit some ideas and opinions from subordinates Four System of Management: Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

System-3:Consultative-authoritative: Managers have substantial but not complete confidence and trust Use rewards for motivation with occasion/punishment Some participation & try to make use of subordinates’ ideas Four System of Management (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

System-4: Participative Have complete trust & confidence in subordinates in all matters Always get ideas and opinions from subordinates Four System of Management (Contd.): Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU

Questions Finance & Banking Jahangirnagar University Mahfuza Khatun Lecturer, F & B,JU