Leadership

Leadership

Neha RathiAmreli (Guj)

Welcome you all future

LeadersWhich famous leaders can you think of?

Are Leaders Born or

Made?

Leadership• Leadership is an interpersonal influence directed

toward the achievement of a goal or goals.

• LEADERSHIP IS THE ABILITY OF A MANAGER TO BRING PEOPLE TO WORK TOGETHER EFFICIENTLY FOR A COMMON GOAL

Nature of Leadership

• Leadership is a process• Leadership is a group phenomena • Leadership is an interaction • Leadership is property

A Leadership Story:• A group of workers and their leaders are set a task

of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port.

• The leaders organise the labour into efficient units and monitor the distribution and use of capital assets – progress is excellent. The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible.

• Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.And shouts down to the assembled group below…“Wrong Way!”(Story adapted from Stephen Covey (2004) “The Seven Habits of Highly Effective People” Simon & Schuster).“Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leadership vs. Management• Leadership is

influencing of others to do what he/she wants them to do.(Influencing others i.e. human interaction)

• A leader may have no formal title at all and rely on personal traits and style to influence followers.

• Management is the process of getting things done through the efforts of other people.(Focuses on procedures and results)

• Management suggests more formality & manager refers to a position in an organization.

Leadership vs. Management

• Leaders have followers• Inspire • Long term view• Ask what & why

• Managers don't have• Control• Short term view• Ask how & when

The Five Ps of Leadership

Pay attention to what’s importantPraise what you want to continuePunish what you want to stopPay for the results you wantPromote those people who deliver

those results

How to Improve Your Leadership Skills

• Skill 1: Think Like a Leader• Skill 2: Use an Appropriate Leadership

Style• Skill 3: Pick the Right Leadership

Situation• Skill 4: Good communication skills • Skill 5: Exercise Better Judgment• Skill 6: Improve Leadership Traits and

Skills

Overview of Traditional Leadership Theories

• Dispositional theories: there are certain attributes which make a great leader

• Behavior theories: great leadership is based on what someone does

• Situational (contingency) theories: interaction between leader and situation is important

Dispositional Theories

• “Great Man theory” Thomas Carlyle – great leaders are great

people– personal attributes are all

that is important– leadership is a scarce

resource– does not specify what

characteristics are relevant

• Trait Theories” Scholars– what are the

characteristics that make someone great

– demographic (height)– ability (IQ; verbal

skills)– personality (energy,

ambition)

Qualities

• A strong desire for accomplishment• Creativity and intelligence• Initiative• Self assumed personality• High tolerance of ambiguity • Ability to influence other people

Behavior Theories

• Ohio State Studies ( major dimensions ) • Consideration – (friendship, mutual trust, respect and

warmth)• Initiating Structure – (organizes and defines

relationships or roles, establishes well-defined patterns of organization, channels of communication, and ways of getting jobs done.)

• University of Michigan Studies•  Employee Orientation – (the human-relations aspect,

in which employees are viewed as human beings with individual, personal needs)

• Production Orientation – (Stress on production and the technical aspects of the job, with employees viewed as the means of getting the work done.

Blake/Mouton’s Managerial Grid

• The model conceptualizes management styles and relations. It uses two axis: “ Concern for People” and “ Concern for Task”

• When taken the two axes and all evolving possibilities together a matrix with 81 different management styles appears. According to Blake and Mouton 5 of the 81 styles are the most significant and important.

The Managerial GridC

once

rn fo

r Peo

ple

1 2 3 4 5 6 7 8 9Concern for ProductionLow High

Low

8

7

6

5

4

3

2

1

5,5 patternMiddle-of-the-roadmanagement

9

5,5 patternMiddle-of-the-road

management

9,1 patternTask management

1,1 patternImpoverishedmanagement

1,9 pattern“Country club”management

,9 patternTeam management-

the ideal style

Situational (contingency) Theories

• Fielders Contingency Model

• Path Goal Theory

• Vroom & Yettons Decision Making Model

• Hersey and Blanchard’s Situational Leadership Theory

Fiedler’s Contingency Model

• Leadership style: relationship vs. task oriented

• Situational Control: 3 characteristics of a work situation make it very + or –

• Not a lot of research evidence, but important for establishing a change in direction in the field

.

LPC Contingency Theory

Situational Control

Lead

er E

ffect

iven

ess

(gro

up p

erfo

rman

ce)

ModerateLow HighLow

High

Low LPC(concern forpeople)

High LPC(concern forproduction)

High LPCLeaders (TaskOriented) are highlyeffectiveunderHigh or low situationalcontrol

Low LPCleadersare highlyeffectiveundermoderatesituationalcontrol

Low LPCLeaders (people oriented)are highlyeffectiveunder moderatesituationalcontrol

Hersey and Blanchard’s Situational Leadership Theory (1977)

Follower readiness: ability

and willingness

Follower readiness: ability

and willingness

Leader: decreasing need for support and supervisionLeader: decreasing need for support and supervision

They identified task behaviour and relationship behavior as two styles ofLeadership which need to adapted as per readiness level of the participants.

.

Situational Leadership Theory: Its Basic Dimensions

ParticipatingParticipating works best(followers have the ability todo the job but they are unwilling)

SellingSelling works best(followers are neitherwilling nor able to dothe job)

DelegatingDelegating works best(followers)are willing todo the job, and know how to go about it)

TellingTelling works best(followers are willingto do the job, but don’tknow how to do it)

Low High

High

Low

Task Behavior (amount of guidance required)

Rel

atio

nshi

p B

ehav

ior

(am

ount

of s

uppo

rt re

quire

d)

M2

Path- Goal Theory(Robert House) Leader's behavior is acceptable to subordinates insofar as they view it as a source of immediate or future satisfaction.

According to this theory the leader’s job is to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals re compatible with the overall objectives of the group or organization.

Path-Goal Leadership Styles• Directive

– Task-oriented behaviors• Supportive

– People-oriented behaviors• Participative

– Encouraging employee involvement• Achievement-oriented

– Using goal setting and positive self-fulfilling prophecy

Vroom & Yettons Decision Making Model

• A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations

Contemporary issues of leadership

Transactional and Transformational Leadership

• Contingent Reward

• Management by Exception (active)

• Management by Exception (passive)

• Laissez-Faire

• Charisma

• Inspiration

• Intellectual Stimulation

• Individual Consideration

They inspire followers to transcend own self interests for the good of the organization and who is capable of having a profound and extraordinary-effects on followers.

• Transformational leadership is a process that changes and transforms individuals (Northouse, 2001).

• It is the ability to get people to want to change, to improve, and to be led. It involves assessing associates' motives, satisfying their needs, and valuing them (Northouse, 2001).. Sam Walton (founder of Wall Mart) gave "rules for success" in hisautobiography, one of which was to appreciate associates with praise.

“Leadership is the ability to influence, motivate and enable others to contribute towards the effectiveness of the organization.” Effective leaders subordinate their egos and nurture leadership in others. (Richard Branson)

Transformational leadership

Exemplary role models

motivate so that vision of the organization is met

Encourage innovation, creativity, critical thinking

managers who act as coaches and advisors to

the associates

Evaluating Female Leaders

• Past evidence – Women rated less favorably than equivalent

male leaders due to stereotyping

• Recent evidence – Women rated more favorably than men,

particularly on emerging leadership styles (coaching, teamwork)

Charismatic Leaders

Charismatic Leadership

Personal characteristicsOf charismatic leaders1. Vision and articulation2. Personal risk3. Environmental sensitivity4. Sensitivity to follower needs5. Unconventional behavior

How charismatic leaders influence followers:

1) Begins by the leader articulating an appealing vision.

2) Communicating high performance expectations and expression of confidence in followers that they can attain. Enhances followers self esteem and self confidence.

3) The leader conveys through words and actions a new set of values and by his behavior sets an example for followers to imitate.

4) finally, leader makes self sacrifices and engages in unconventional behaviour to demonstrate courage and convictions about his/her vision.

Are charismatic leaders born or made?Charismatic leadership can be inculcated by following a 3 step process—

1) An individual needs to develop the aura of charisma by maintaining an optimistic view, using passion for generating enthusiasm and communicating with the whole body and not just with words.

2) Drawing others towards himself/herself by creating bond with the followers.

3) The individual brings out the potential in followers by tapping into their emotions.

There is ample evidence to suggest that charismatic leadership is situational (not inborn)and is not always required to achieve high level of employee performance.

Charisma appears to be most appropriate when the followers’ task has an ideological component or when the environment involves high degree of stress and uncertainty. (in the early 1970s Chrysler Corp required Lee Iacocca and in 1997 Apple Computer required Steve Jobs to reinvent the companies, both known for their unconventional ideas) Charisma is only limited to the high/highest level of the organization bcoz it involves the creation of a vision.

Charismatic leaders who have larger than life image don’t always act in the best interest of their organization.

Jim Collins (From Good to Great)

Study based on 29 companies that went from good to great (their cumulative stock returns were at least three times better than the general stock market for over 15 years) found an absence of ego-driven charismatic leaders. The leaders of these firms were fiercely ambitious and driven but their ambition were for the company and not for themselves.

Types of Leadership Style• Autocratic:

– Leader makes decisions without reference to anyone else– High degree of dependency on the leader– Can create de-motivation and alienation of staff– May be valuable in some types of business where

decisions need to be made quickly and decisively• Paternalistic

– Leader acts as a ‘father figure’– Paternalistic leader makes decision but may consult– Believes in the need to support staff

Democratic:

• Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation– Consultative: process of consultation before

decisions are taken– Persuasive: Leader takes decision and seeks to

persuade others that the decision is correct

Laissez-Faire

– ‘Let it be’ – the leadership responsibilities are shared by all

– Can be very useful in businesses where creative ideas are important

– Can be highly motivational, as people have control over their working life

– Can make coordination and decision making time-consuming and lacking in overall direction

– Relies on good team work– Relies on good interpersonal relations

Leadership Styles in Indian Context

• Nurturant task style (Sinha 1980)

• Consultative Style (Karla & Gupta)

Emotional Intelligence and Leadership Effectiveness

Elements of Emotional Intelligence:

• Self-awareness

• Self-management

• Self-motivation

• Empathy

• Social skills

I.Q and Technical skills are “threshold capabilities”. They are necessary but not the sufficient requirements for effective leadership.

When star performers were compared with average ones in senior management position, nearly 90% of the difference in their difference was attributable to EI factors rather than IQ (Goleman, 1998; Goleman et al, 2002; George 2000)

Determinants of Leadership

– 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?

Effective Supervision

1 - Get Involved 1 - Get Involved Know Your PeopleKnow Your People

Get out from behind your desk Get out from behind your desk Don’t be over-involved Don’t be over-involved Show InterestShow Interest

Sense of MissionSense of Mission Have a planHave a plan Share your visionShare your vision

2 - Open Channels of Communication2 - Open Channels of Communication• Encourage discussionEncourage discussion• Resolve conflictResolve conflict• ListenListen• Remain in controlRemain in control

3 - Give Your People a Chance to Develop3 - Give Your People a Chance to Develop• Match the People to the WorkMatch the People to the Work

Be aware of requirements and limitations Be aware of requirements and limitations Education and training Education and training

• Be FlexibleBe Flexible Welcome ChangeWelcome Change

4 - Establish Standards and Stick to Them4 - Establish Standards and Stick to Them• Personal StandardsPersonal Standards• Enforce ThemEnforce Them• Excellence Begins with YouExcellence Begins with You

5 - Provide Feedback5 - Provide Feedback

• Constructive criticismConstructive criticism• Praise in public and discipline in privatePraise in public and discipline in private• Don’t be afraid to approach themDon’t be afraid to approach them• Ask for their views/opinionsAsk for their views/opinions

IntegrityIntegrity

DriveDrive

• Truthfulness• Translates words into deeds

• Inner motivation to pursue goals• Need for achievement, quest to learn

Leadership Leadership MotivationMotivation

• High need for socialized power to accomplish team’s or firm’s goals

Emotional Emotional IntelligenceIntelligence

• Perceiving, assimilating, understanding, and regulating emotions

Seven Leadership Competencies

IntegrityIntegrity

Emotional Emotional IntelligenceIntelligence

IntelligenceIntelligence• Above average cognitive ability• Can analyze problems/opportunities

Knowledge ofKnowledge ofthe Businessthe Business

• Familiar with business environment• Aids intuitive decision making

Self-ConfidenceSelf-Confidence• High self-efficacy regarding ability to

lead others

Seven Leadership Competencies (con’t)