2. Kick Off Meeting FY 09 Service Department - Indonesia Chapter 12 Stephen P. Robbins – Organization Behavior Basic Approaches to Leadership PPM Management MME 46 Abraham Sitompul Eva Marrine Sagune Hery Haryanto Imam Haryanto Petrus Mintowiyono Rusdi

3. PPM Management MME 462 THE ABILITY TO INFLUENCE A GROUP TOWARD THE ACHIEVEMENT OF VISION OR SET GOALS LEADER ≠ MANAGER Managers Administer & copy Maintain Focus on system & structure Rely on control Short range view – bottom line Ask how & when Accept the status quo Classic good soldier Do things right Leader Innovation & originality Focus on people Inspire thrust Long range view – the horizon Ask what & why Challenge the status quo Own person Do the right things LEADERSHIP

4. PPM Management MME 463 Theories Trait theories of Leadership (Leader are born no made) Theories that consider personal qualities & characteristic that differentiate leaders & non leaders (effective / ineffective leader) From Research – it’s closely influence by Big five personality Which to underline are (strongest emerging to leadership effectiveness) Extraverted – individual who like being around people & are able to assert themselves Conscientious – individual who are disciplined & keep commitments they make Open – Individual who are creative & flexible Emotional Intelligence – the ability to detect & manage emotional cues & information

5. PPM Management MME 464 Theories Behavioral theories (Leader are made not born) Theories proposing that specific behaviors differentiate leaders from non leaders Ohio Research base – Independent leader behavior -Initiating structure (define structure of his/her role of employees in the search for goals attainment) – outcome: organization productivity & more positive performance evaluation) -Assign group members to particular task -Expect workers to maintain definite standards of performance -Emphasizes the meeting deadlines -Consideration (people who like to have job relationship by mutual thrust, respect for employees ideas & regards for their feeling) – outcome: employee satisfaction, motivated & more respect to their leader -The one who help employees with personal problems -Friendly & approachable -Treat all employees equals & expresses appreciation & support

6. PPM Management MME 465 Michigan Research base – Independent leader behavior -Employee Oriented(Emphasizes interpersonal relations, takes a personal interest in the needs of employees & accepts individual differences among members) – outcome: higher group productivity & greater job satisfaction -Production oriented leader (Emphasizes technical or task aspects of the job) – outcome: accomplishment of group tasks & expresses appreciation & support Summary Trait & Behavioral Theories – Managerial Grid Believes both integrated Concern of People ~ Consideration / Employee oriented Concern for production ~ Initiating structure / production oriented Theories

7. PPM Management MME 466 91.99.9 8 7 6 55.5 4 3 2 11.19.1 123456789 Low Concern for productionHigh Low Concern for People High The Managerial Grid Theories

8. PPM Management MME 467 Contingency Theories (review environment that impact to leader existence) Fiedler Model & Situational Leadership Theory Fiedler 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 & influence to the leader Key of success is Basic Leadership Measure with LPC(Least Preferred coworker) Questionarre – An instrument that purports to measure whether a person is task or relationship oriented Theories

9. PPM Management MME 468 After defining LPC continue with Defining the three contingency dimension as follow: -Leader member relations – is the degree of confidence, thrust, and respect members have in their leader -Task structure – is the degree to which the job assignment are procedurized (that is structured / unstructured) - Position power – is the degree of influence a leader has over power variables such as hiring, discipline, promotions & salary increases Theories

10. PPM Management MME 469 Findings from the Fiedler Model Matching Leaders & Situations Theories Used to determine which type of leader to use in a given situation

11. PPM Management MME 4610 LPC Theory (Fiedler Model) assessment: Positives: Considerable evidence supports the model, especially if the original eight situations are grouped into three Problems: The logic behind the LPC scale is not well understood LPC scores are not stable Contingency variables are complex and hard to determine Theories

12. PPM Management MME 4611 Cognitive resource theory (Fiedler reconceptualized theory) – A theory that states that stress unfavorably affects a situation and that intelligence and experience can reduce the influence of stress on the leader Theories Stress Level Low High Intellectual Abilities Effective Ineffective Leader’s Experience Ineffective Effective

13. PPM Management MME 4612 Hersey & Blanchard’s Situational Theory  Situational leadership theory (SLT) – A contingency theory that focuses on followers readiness Followers can accept or reject the leader Effectiveness depends on the followers’ response to the leader’s actions “Readiness” is the extent to which people have the ability and willingness to accomplish a specific task  A paternal model: As the child matures, the adult releases more and more control over the situation As the workers become more ready, the leader becomes more laissez-faire Theories

14. PPM Management MME 4613 House’s Path Goal Theory A theory that states that it is the leader’s job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization  The Theory: Leaders provide followers with information, support, and resources to help them achieve their goals Leaders help clarify the “path” to the worker’s goals Leaders can display multiple leadership types  Four types of leaders: Directive: focuses on the work to be done Supportive: focuses on the well-being of the worker Participative: consults with employees in decision-making Achievement-Oriented: sets challenging goals Theories

15. PPM Management MME 4614 Theories Path- Goal Model: Two classes of contingency variables: - Environmental are outside of employee control - Subordinate factors are internal to employee

16. PPM Management MME 4615 Leader Member Exchange (LMX) theory A theory that supports leaders creation of in groups and out-groups; subordinates with in-group status will have higher performance ratings, less turnover & greater job satisfaction LMX Premise: Because of time pressures, leaders form a special relationship with a small group of followers: the “in-group” This in-group is trusted and gets more time and attention from the leader (more “exchanges”) All other followers are in the “out-group” and get less of the leader’s attention and tend to have formal relationships with the leader (fewer “exchanges”) Leaders pick group members early in the relationship Theories

17. PPM Management MME 4616 Theories LMX Model How groups are assigned is unclear  Follower characteristics determine group membership Leaders control by keeping favorites close

18. PPM Management MME 4617 Decision Theory (Yroom & Yetton’s) – Leader Participation Model A leadership theory that provide a set of rules to determine the form and amount of participative decision making in different situations  How a leader makes decisions is as important as what is decided  Premise: Leader behaviors must adjust to reflect task structure “Normative” model: tells leaders how participative to be in their decision-making of a decision tree - Five leadership styles - Twelve contingency variables  Research testing for both original and modified models has not been encouraging Model is overly complex Theories

19. PPM Management MME 4618 Theories

20. PPM Management MME 4619 Global Implication  These leadership theories are primarily studied in English-speaking countries  GLOBE does have some country-specific insights Brazilian teams prefer leaders who are high in consideration, participative, and have high LPC scores French workers want a leader who is high on initiating structure and task-oriented Egyptian employees value team-oriented, participative leadership while keeping a high-power distance Chinese workers may favor a moderately participative style  Leaders should take culture into account

21. PPM Management MME 4620 Summary & Managerial Implications Leadership is central to understanding group behavior as the leader provides the direction Extroversion, conscientiousness, and openness all show consistent relationships to leadership Behavioral approaches have narrowed leadership down into two usable dimensions Need to take into account the situational variables, especially the impact of followers

22. PPM Management MME 4621