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Unit 4: People in Organisations

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1 Unit 4: People in Organisations
Leadership styles & their effectiveness Fda Business

2 Leadership Relationship through which one person
influences behaviour/actions of others Related to motivation, interpersonal behaviour & communication No longer command & control, but inspiration and creating a vision others can identify with HE Business

3 Development of leadership styles
Interest in organisational leadership was stimulated by the human relations movement in industrial sociology after the Second World War. The Hawthorne studies demonstrated that when managers took an interest in their employees and involved them in the decisions affecting their work, they worked harder. HE Business

4 Leadership vs Management
does right things innovates develops people inspires trust horizon Manager does things right administers maintains systems, structures control bottom line HE Business

5 Leadership Qualities Alan Bryman (1986) uses the following to distinguish leadership from management. The ability to communicate a desirable image of the future and to unite groups of people in a common purpose. HE Business

6 Great man/Trait theories (1850s-1920s)
Leaders are born not made Innate characteristic – skills cannot be learned Superior qualities provide natural ability to lead No agreement on traits No scientific evidence HE Business

7 Behavioural theories (1950s)
How leaders behave towards their followers: People centred – needs & problems & skills of individuals Task centred – negotiates with followers, shared power Authoritarian – makes decisions & expects others to obey HE Business

8 authoritarian democratic makes decision & announces it
Leader exercises greatest authority here makes decision & announces it makes decision & tries to sell it to team presents probable decision and invites discussion presents problems, invites suggestions & reaches decision presents problems, invites discussion, reaches joint decision with team Team has greatest freedom here allows team to operate on its own democratic

9 Effectiveness of leadership styles
Goleman (2000) suggested there are 6 clear leadership styles: Coercive (Do what I say) – negative Pacesetting (Do as I do, now) – high standards expected and can have negative impact on those who cannot keep up Coaching (Try this) – focused on staff development and individuals HE Business

10 Effectiveness of leadership styles
Democratic (What do you think?) – achieves consensus through participation Affiliative (People come first) – creates harmony and builds relationships. Often seen as the best overall approach Authoritative (Come with me) – a visionary leader who encourages innovation and risk-taking. As long as used subtly, can have big positive impact on the overall organsiaitonal culture HE Business

11 Exercise 1 What qualities have you observed in a good leader?
HE Business

12 A contingency approach
Handy (1987) suggested a contingency approach to leadership whereby several factors determine the particular style used: The leader – their personality, character etc Subordinates – individual personalities The task – objectives, methods of working The environment – other constraints/factors within the organisation such as technology, overall position of power of the leader HE Business

13 Exercise 2 Should a leader be liked or respected – discuss?
HE Business

14 Leadership and change Change is uncomfortable for everyone involved and is often resisted When dealing with change, leaders must consider: - the pace of the change - the scope of the change - the manner of the change HE Business

15 Leading the change Kurt Lewin (1946) said leaders should follow a 3-step process of change management to modify behaviour: Unfreezing – need to ‘sell’ the change Changing – identify the new behaviour needed and communicate it positively Refreezing – stabilise the change and reinforce new behaviour HE Business

16 Dealing with conflict Conflict can be a result of poor communication, personality clashes or the work of a group of agitators The ‘pluralistic’ approach recognises there will always be some form of conflict within an organisation HE Business

17 Dealing with conflict There are 2 aspects of conflict that are relevant, in practice, to the leader: Conflict can be highly desirable – it can energise relationships and be constructive Conflict can be highly destructive HE Business

18 Leadership and organisational culture
The culture of an organisation is a general pattern of behaviour, beliefs and values that all have in common The climate for this culture is created by managers and the way in which they manage/lead Changing a culture may take a long time, especially if a traditional one with a history of one type of leadership and management HE Business

19 Leadership and organisational culture
To change an organisational culture, Hampden-Turner (1990) suggested 6 modes of intervention: Find the dangers Bring conflict into the open Play out corporate dramas Reinterpret corporate myths Look at rituals/processes Creat a new system HE Business

20 Leadership and organisational culture
Transformational leaders create conditions that mean the ‘followers’ want to achieve and do well. They do this by: Individual consideration Intellectual stimulation Inspirational motivation Idealised influence HE Business

21 Further research Further research can be found through:
HE Business


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