Leadership

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Leadership

A leader is best , when people barely know he exists…

Not so good when people obey and acclaim him.Worst when they despise him . But of a good leader , who talks little,when his work is done and aim fulfilled , they will say : we did it ourselves.

By Lao –tzu

INTRODUCTION

According to Stephen Robbins leadership" is the ability to influence a group towards the achievement of goals”.

According to Paul Heresy and Kenneth Blanchard , leadership “is a process of influencing group activities towards accomplishment of goals in a given situation”

Besides influence, leadership has been defined in terms of group process, personality,compliances,particular behaviours, persuasion, goal achievement, interaction, role differentiations and combination of two or more.

SOME REAL ORGANIZATIONAL LEADERS

The most successful business icons has been heroic

CEO’s who sit astride the giant corporations- the huge system and steers it brilliantly along .

Michel Eisner at Disney Jack Welch at GE Bill Gates at Microsoft John Reed at Citicorp

Indian Business Leaders

Dhirubhai Ambani with Mukesh & Anil Ambani

JRD Tata with Ratan Tata The Birla Group

N.R. Narayana Murthy: Leader of Infosys

N. R. Narayana Murthy: Non-executive Chairman of the Board and Chief Mentor of Infosys Technologies Limited.

MURTHY- 5 ELEMENTS OF SUCCESS

Openness to learn: Openness to subordinate your ego to take ideas from others.

Second, meritocracy: The best ideas are adopted and implemented using data to arrive at the best decision.

Third, speed: Assuring you do things faster compared to yesterday and last quarter.

Fourth, imagination: You continually bring better ideas and better innovation to the table.

And finally, excellence in execution: That is implementation of these great ideas with a higher level of excellence today than yesterday.

LEADERS OR MANAGERS?

According to Bennis “to survive in the 21st century,

we are going to need new generations of leaders not managers

John Kotter also argues that leadership is different from management .Leadership is about coping with change and management is about coping with complexities.

“Management is doing things right, leadership is doing the right things”

(Warren Bennis and Peter Drucker)

Characteristics of …

MANAGER v/s LEADER

Administers. A copy. Maintains. Focus on system & structures Relies in control. Short Range view. Asks how and when. Eyes on the bottom line. Imitates Accept the status quo Classic good soldier Does things right

Innovates. An original. Develops. Focus on people. Inspire trust. Long range perspective. Asks what and why. Eyes on horizon. Originates. Challenges the status quo. Own person . Does the right thing.

Some Qualities For Becoming A Successful Leader

1. Sound Health :If you are healthy you can invest energyyou can work hard without any physical discomfort

2. Managerial Ability :You should be able to plan and control the work of assistants.3. Communication Skill :You should know what to speak, when and how. Listen in depth ! 4. Decision Making :Must possess capacity to think / analyze problems and take right decisions.5. Motivational Ability :You should possess the skill to energize & keep the morale high. 6.Education and Training :Good academic educationIn depth training in chosen field of operation.7. Intelligence and Attitude :Your intellectual capacity is sharp & approach is focused. 8. Impressive Personality :Total behavior, writing, speech, dress ,manner- give a Role Model.

CONTENT

LEADERSHIP

FACTORSEFFECTING LEADERSHIP

TYPES OFLEADERSHIP

STYLES

THEORIES OF’LEADERSHIP

CHANGE LEADERSHIP

LEADERSHIP STYLES : BASIC

TYPES

AUTOCRATIC

BUREAUCRATIC

DEMOCRATIC

LAISSEZ FAIRE

AUTOCRATIC LEADERSHIP STYLE

This is often considered the classical approach. It is one in which the manager retains as much power and decision-making authority as possible. The managers don't consult employees nor are they allowed to give inputs.

Certainly Gen X employees have proven to be highly resistant to this management style. These studies say that autocratic leaders:

--Rely on threats and punishment to influence employees --Do not trust employees --Do not allow for employee input Yet, autocratic leadership is not all bad. Sometimes it is the most effective style to

use. These situations can include: --New, untrained employees who do not know which tasks to perform or which

procedures to follow --Effective supervision can be provided only through detailed orders and

instructions --Employees do not respond to any other leadership style --There are high-volume production needs on a daily basis --There is limited time in which to make a decision --A manager’s power is challenged by an employee --The area was poorly managed

--Work needs to be coordinated with another department or organization

BUREAUCRATIC LEADERSHIP STYLE

Bureaucratic leadership is where the manager manages “by the book. Every thing must be done according to procedure and policy.

This style can be effective when: --Employees are performing routine tasks over and over. --Employees need to understand certain standards or procedures. --Employees are working with dangerous or delicate equipment

that requires a definite set of procedures to operate. --Safety or security training is being conducted. --Employees are performing tasks that require handling cash. This style is ineffective when: --Work habits form that are hard to break, especially if they are no

longer useful. --Employees lose their interest in their jobs and in their fellow

workers.

--Employees do only what is expected of them and no more.

DEMOCRATIC LEADERSHIP STYLE

The democratic leadership style is also called the participative style as it encourages employees to be a part of the decision making. This style requires the leader to be a coach who has the final say, but gathers information from staff members before making a decision.

The democratic leadership style is most effective when: --The leader wants to keep employees informed about matters that affect

them. --The leader wants employees to share in decision-making and problem-

solving duties. --The leader wants to provide opportunities for employees to develop a

high sense of personal growth and job satisfaction. --There is a large or complex problem that requires lots of input to solve. --Changes must be made or problems solved that affect employees or

groups of employees. Democratic leadership should not be used when: --There is not enough time to get everyone’s input. --It’s easier and more cost-effective for the manager to make the

decision. --The business can’t afford mistakes. --The manager feels threatened by this type of leadership. --Employee safety is a critical concern

LAISSEZ FAIRE LEADERSHIP STYLE

The laissez-faire leadership style is also known as the “hands-off¨ style. It is one in which the manager provides little or no direction and gives employees as much freedom as possible.

This is an effective style to use when: --Employees are highly skilled, experienced, and educated. --Employees have pride in their work and the drive to do it

successfully on their own. --Outside experts, such as staff specialists or consultants are being

used --Employees are trustworthy and experienced. This style should not be used when: --It makes employees feel insecure at the unavailability of a

manager. --The manager cannot provide regular feedback to let employees

know how well they are doing. --Managers are unable to thank employees for their good work. --The manager doesn’t understand his or her responsibilities and is

hoping the employees can cover for him or her.

VARYING LEADERSHIP STYLE

While the proper leadership style depends on the situation, there are three other factors that also influence which leadership style to use.

1. The manager’s personal background. What personality, knowledge, values, ethics, and experiences does the manager have. What does he or she think will work?

2. The employees being supervised. Employees are individuals with different personalities and backgrounds. The leadership style managers use will vary depending upon the individual employee and what he or she will respond best to.

3. The company. The traditions, values, philosophy, and concerns of the company will influence how a manager acts.

CHANGE IN LEADERSHIP

THE PROCESS

THE PROBLEM

THE SOLUTION

SELLING THE IDEA

RESENTMENT AND ILIENATION

RESIGNATION

ACCEPTANCE

INTERNALISATION

Change Leadership

The most challenging aspect of business is leading and managing change

The business environment is subject to fast-paced economic and social change

Modern business must adapt and be flexible to survive

Problems in leading change stem mainly from human resource management

Change LeadershipSelf-esteem

Time

1. Immobilisation – as rumours of the change circulate, the individual feels some sense of shock and possible disbelief – so much so that they deem it worthy of doing nothing.

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2. Minimisation: As the change becomes clearer, people try to fit in the change with their own personal position and may try to believe that it will not affect them.

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3. Depression: as reality begins to dawn staff may feel alienated and angry, feelings of a lack of control of events overtake people and they feel depressed as they try to reconcile what is happening with their own personal situation.

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4. Acceptance/letting go: The lowest point in self-esteem finally sees people starting to accept the inevitable. Fear of the future is a feature of this stage.

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5. Testing out: Individuals begin to interact with the change, they start to ask questions to see how they might work with the change.

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6. Search for meaning: Individuals begin to work with the change and see how they might be able to make the change work for them – self esteem begins to rise.

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7. Internalisation: the change is understood and adopted within the individual’s own understanding – they now know how to work with it and feel a renewed sense of confidence and self esteem.

THEORIES OF LEADERSHIP

THEORIES OF

LEADERSHIP

TRAIT THEORY

BEHAVIOURAL THEORIES

(IOWA LEADERSHIPSTUDY,THE OHIO STATE LEADERSHIP

STUDY

THE UNIVERSITY OF MICHIGAN

STUDIES

THE MANAGERIAL

GRIDTHEORY

THE CONTINGENCY

THEORY

PATHGOAL THEORY

OFLEADERSHIP

LIKERT FOUR SYSTEM

TRAIT THEORY OF LEADERSHIP

Assumptions People are born with inherited traits. Some traits are particularly suited to leadership. People who make good leaders have the right (or sufficient) combination of

traits. Stogdill (1974) identified the following traits and skills of leaders

  Traits Skills

•Adaptable to situations •Alert to social environment •Ambitious and achievement-orientated •Assertive •Cooperative •Decisive •Dependable •Dominant (desire to influence others) •Energetic (high activity level) •Persistent •Self-confident •Tolerant of stress •Willing to assume responsibility

•Clever (intelligent) •Conceptually skilled •Creative •Diplomatic and tactful •Fluent in speaking •Knowledgeable about group task •Organised (administrative ability) •Persuasive •Socially skilled  

BEHAVIORAL LEADERSHIP

Assumptions Leaders can be made, rather than are born. Successful leadership is based in definable, learnable behavior. Imply that leaders can be trained – focus on the way of doing things Iowa leadership studies by R.lippit and Ralph k White is a

behavioural theory of leadership based on the impact of leadership styles on a group. It was experimentally found that democratic leadership lead to an overwhelming behaviour were as laissez faire lead to a worst form of aggression.

The Ohio State Leadership study: In 1945 the bureau of business research initiated a series of studies on leadership. They plotted behaviour on 2 separate axis

1. Initiating structure :the extent to which the leader is suppose to define his and his subordinates role .

2.Consideration : the extent to which a leader is suppose to have trust, regards, job relationship with is subordinates.

UNIVERSITY OF MICHIGAN STUDIES

In the Michigan university, a group of researcher also came up with 2 dimensions of leadership behavior. They are :

Employee centered: Emphasizing interpersonal relationship considered with the welfare of the subordinates

Production centered: Emphasizing task or technical aspect.

THE MANAGERIAL GRID THEORY

Robert R Blake and Jane S Mouton developed managerial grid which is very famous among leaders and manager for adopting styles . They proposed managerial grid based on two dimensions.

A. Concern for people B. Concern for production The scale range for each dimension range from 1 to 9 . Based on these

range 5 types of basic management styles evolved .They are:(1,1) :Also known as impoverished managers , were leaders plays least

importance to production and concern for people (1,9) : Also known as Country club managers , the leaders have high concern

for people and low concern for production(5,5): Leaders maintains adequate performance , maintaining a balance .(9.1):Leaders initiate autocratic control with least interference of human

element (9.9): Leaders initiate high concern for people and production , leading to

maximum productivity

CONTINGENCY THEORIES OF LEADERSHIP

This model states that most appropriate style of leadership depends upon the nature of situations the leaders face. The first contingency theory was developed by Fred Feidler (1967)

He developed an instrument which was called LPC (least preferred coworker) Questionnaire.

According to him , there are 3 situational variables

Leader member relationship : The manner a leader is accepted in a group.

Task structure : One's specific ways one is required to do the job.

Leader position power: The organizational power a leader occupies

PATH GOAL LEADERSHIP THEORY

Developed by Robert House and others , the theory mainly emphasize on the path and goal concept , were a leader mainly helps his subordinates or followers on what need to be done (Goal) and how to be done (Path)

According to this theory a leader can adopt 4 styles while following the path and goal concept .They are:

Directive style. Supportive style. Achievement style. Participative style.

LIKERTS FOUR SYSTEM THEORY

Renis Likert developed four basic system or styles of organizational leadership called the “style of management leadership”.

They are: Exploitative Autocratic :Tries to exploit subordinates. Benevolent Autocratic: Initiate paternalistic approach while

exploiting Participative or consultative Democratic: Total participation and consensus by majority

FACTORS AFFECTING STYLE

Risk - decision making and change initiatives based on degree of risk involved

Type of business – creative business or supply driven?

How important change is – change for change’s sake?

Organisational culture – may be long embedded and difficult to change

Nature of the task – needing cooperation? Direction? Structure?

PROBLEMS OF LEADERSHIP IN MODERN INDUSTRY

No uniformity in attitude, personality & educational background.

Favoritism Lack of transparency in decision making,

provide very little scope for participation. Power tactics Unable to cope up with the fast pace of

change.

Corporate Leadership in the 21st Century needs

• The magnitude of change will demand:The magnitude of change will demand: More leadershipMore leadership Newer forms of leadershipNewer forms of leadership

• Tomorrow’s corporate leaders should be:Tomorrow’s corporate leaders should be: Strategic opportunistsStrategic opportunists Global/cultural/diversityGlobal/cultural/diversity

awarenessawareness Decentralized managersDecentralized managers Interpersonally competentInterpersonally competent Builders of organizational Builders of organizational

communitiescommunities

The first responsibility of a leader is to define reality. The last is to say thank you. In between the two, the leader must become a servant and debtor. That sums up the progress of an artful leader.”

- Max DePree