Leadership

Unit 15

LEADERSHIP

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Smita ChoudharyFaculty HR & OB

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Contents

• Introduction• Concept of leadership• Theories of leadership• Classification of leadership• Functions of a leader• Managerial grid• Differences between ‘managers’ and ‘leaders’

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Introduction

• Some people are born leaders like Alexander, Julius Caesar.

• A good leader has great ability, creativity, initiative and confidence.

• He builds employees’ morale and motivation.

• The debatable question is “Leaders are born and not made.”

• Leaders are different from ordinary people.

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Learning Objectives

After studying this unit, you will be able to

• Understand leadership• Understand theoretical

framework of leadership• Distinguish between different

types of leaders• Know how managers are different

from leaders

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• Who is a leader?

The leader is a person who can influence the group of people to achieve the organization’s goals in both adverse and normal conditions.

• What is leadership?

A simple definition of leadership is that leadership is the art of motivating a group of people to act towards achieving a common goal.

Introduction

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Concept of Leadership

• Leadership is defined as the relationship in which one person influences others to work together to reach a desired level of achievement. If there is no follower, there is no leader.

• “Leadership is the process by which an executive or a manager imaginatively directs, guides and influences the work of others in choosing and attaining specified goals by mediation between the individual and organization in such a manner that both will obtain the maximum satisfaction.”

---- Haiman

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Qualities of a Good Leader

A good leader-----1. Has foresight2. Has influence3. Has representative role

playing4. Communicates properly5. Commands attention and

respect6. Helps to achieve task

objectives

7. Has concern regarding needs of his group

8. Is sensitive to the task, people and environment

9. Build team and becomes a model

10. Has the ability and skill to manage the team

11. Has the ability to take decisions

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• Leaders may be– Self-oriented– People-oriented– Task-oriented

• A leader should be able to build confidence in his followers.• He is concerned both with the task (goals of the

organization) and the people with whom he is working.• According to Douglas McGregor, the major variables of

leadership are-----– The characteristics of the leader– The attitudes, needs and personal characteristics of the followers– The culture of the organization.– The socio-economic environment and the political set up (both macro

and micro).

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Theories of Leadership• Leadership theories can be classified into following eight

major types:1) “Great Man” Theories • These theories believe that leaders are born and not made. • They describe great leaders as heroic.• The term ‘great man’ was used because earlier leadership

was considered as a male quality.2) Trait Theories• It is similar to great man theories in some ways• These theories believe that people have some inborn

qualities and traits that make them better suited to leadership.

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3)Contingency Theories

• These theories focus on variables related to the environment that may determine which type of leadership style is most suitable for the situation.

• According to this theory, no leadership style is best in all situations.

4) Situational Theories

• These theories believe that leaders choose the best action on the basis of the situational variable.

• Different styles of leadership may be more appropriate for certain types of decision making.

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5) Behavioral Theories---

• These theories believe that great leaders are made, not born.

• According to this theory, people can become leaders through teaching and motivation.

6) Participative Theories---• These theories believe that the ideal leadership style is one

that takes inputs from others also.

• These leaders encourage participation and contributions from group members. This makes group members more committed to the decision making process.

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7) Management Theories

• These theories are also known as transactional theories.

• They focus on the role of supervision, organization and group performance.

• These theories are used in business. When employees are successful, they are rewards; when they fail they are punished.

8) Relationship Theories

• These theories are also known as transformational theories.

• They focus on the connections formed between leaders and followers.

• These theories motivate people by helping group members to know the importance of the task.

• Transformational leaders have high ethical and moral standards.

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Classification of LeadershipAccording to the Personnel Research Board of Ohio University, leaders are classified as follows--•THE BUREAUCRAT – He sticks to routine, keeps superiors happy, avoid subordinates and is disrespectful towards them.•THE AUTOCRAT – He is directive and want his followers to obey him. Subordinates do not like him.•THE DIPLOMAT – He is an opportunist and exploits subordinates. Subordinates do not trust him.•THE EXPERT – He is a specialist person. He is self-centered. He treats his subordinates only as co-workers without any feelings.•THE QUARTER BACK – He associates himself with his subordinates even if his superiors are not happy with it. He is liked by his followers.

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• Chris Argyris has given the following classification of leadership:

– The Directive type– The Permissive type– The Participative type

• There are other types such as positive and negative.

• Positive is power through the people and negative is power over the people.

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Functions of a Leader• A leader performs the following functions:

a) Maintenance of membership i.e. to be close to the group.

b) Objective attainment: To achieve the set targets.c) Group interaction: To provide an atmosphere where

group members interact effectively• PETER DRUCKER says, “An effective leader is one who can make

ordinary people do extraordinary things, make common people do uncommon things. Leadership is a lifting of a man’s sights to a higher vision, the raising of a man’s standard to a higher performance, the building of a man’s performance beyond its normal limitations.”

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According to KILLIAN, the functions of a leader are:

• To provide a service • To take a decision• To get response• To achieve results• To maintain discipline• To take initiative• To bring in team spirit

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Qualities of a Leader

VISCOUNT SLIM has given the following qualities of a leader:a) Courageb) Will-powerc) Judgmentd) Flexibilitye) Knowledgef) Integrity

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Ten Commandments of LeadershipThe ten demands of leadership are:1. Physical and mental energy2. Enthusiasm3. Sense of purpose4. Technical mastery5. Friendliness and affection6. Decision-making7. Integrity8. Intelligence9. Faith 10.Effective communication – both oral and written

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Situational Leadership

Situational leadership has five components:

• Characteristics of followers• Characteristics of the task• Characteristics of the organization• Characteristics of the external environment• Traits of the leader

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Theory XThe assumptions of Theory X are----• The average human being does not like to work and

avoids it if he can.

• People have to be forced, controlled, directed or threatened with punishment to make them work for achieving the organizational objectives.

• The average human being prefers to be directed and avoids taking responsibility.

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Theory Y

The assumptions of Theory Y are:i. Physical and mental effort in work is like play or rest.ii. External control and threat of punishment are not the

only ways to make people work to achieve organizational objectives. Man will use self control to achieve objectives.

iii.Commitment to objectives depends on the rewards to be given on achieving the objectives.

iv.The average human being learns not only to accept responsibility but also to get rid of responsibility.

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Leadership Styles• Leadership behavior changes from person to person

on the basis of philosophy, planning and goal setting, implementation, evaluation, etc.

• The Leadership Continuum Model of Tannenbaum and Schmidt (1973) shows that an autocratic leader has more chances of making his own decisions while a democratic leader gives his subordinates a greater power of decision making.

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To select the most appropriate style and use of authority, the leader must consider:i.Forces in the manager: Confidence in skills on the members.ii.Forces in the subordinate: Subordinates who are independent, competent and can tolerate uncertainty achieve organizational goals.iii.Forces in the situation: The team has required knowledge, it maintains organizational values and traditions and teams work effectively.iv.Time pressure: If immediate decision is to be taken under pressure, participation is not followed.

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Advantages of Leadership Continuum Model

The advantages of Leadership Continuum Model are:

• Gives managers more choices for involvement.• Gives criteria for involvement and delegation.• Focuses decision maker on appropriate criteria.• Gives importance to employee development and

empowerment.• Is heuristic – encourages research to see how effective

delegation may be under the model.

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Limitations of Leadership Continuum Model

• It involves only the first step of assigning a task to someone and not the next processes that find whether the result is effective or not.

• It supposes that manager has sufficient information to find out the tendency to behave in a particular way.

• It assumes an environment that is without social bonds or politics i.e. neutral environment.

• It simplifies complex decisions to a two-polar dimension making it more simple that what the reality is.

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Different Styles of a Leader Aspects of Leadership

Average Manager Time Leader

Responsibility Accepts it Seeks it

Risk taking Avoids it Accepts it when payoff is high

Status Demands respect due to position

Gains respect due to achievement

Getting results Motivates others with external means

Motivates others internally

Goals Follows organizational objectives

Follows both personal and corporate goals

Use of rules Conforms strictly to established rules

Will violate rules in certain circumstances

Relationship with subordinates

Protects self at all costs Protects followers at own expense

Relationship with superiors

Accommodates superiors in all cases

Fights if necessary, specially for subordinates

Control Is controlled by the environment

Controls the environment

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Managerial Grid• Robert Blake differentiated leaders on the basis of their concern

to people and concern to task.• He and Jane Mouton conducted study on 5000 managers and

presented a grid known as Managerial Grid.• The Managerial Grid Model (1964) is a behavioral leadership

model developed by Robert Blake and Jane Mouton.• This model shows five leadership styles that are

– The Impoverished Style (1,1)– The Country Club Style (1,9)– The Produce or Perish Style (9,1)– The Middle-of-the Road Style (5,5)– The Team Style (9,9)

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The Managerial Grid by Blake and Mouton

1,9Country club managementLow concern for production,

High concern for people

9,9Team management

High concern for production,High concern for people

1,1Impoverished Management Low concern for production,

Low concern for people

5,5Organization Man Management

Balanced concern for both

9,1Authority-Obedience

High concern for production,Low concern for people

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5

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Concern for productionLow High

Low

High

Con

cern

for p

eopl

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The Impoverished Style (1,1)• In this style, managers have low concern for both people and

production.• The manager does not want to be held responsible for any

mistakes. • The leader uses a “delegate and disappear” management

style.Features• Tries to protect job and job seniority.• Gives little and enjoys little.• Protects himself by not being noticed by others.

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The Country Club Style (1,9)• This style shows high concern for people and low concern for

production.• Managers give attention to security and comfort of

employees. The atmosphere is friendly but there is no improvement in performance.

• This type of manager uses reward power to maintain discipline and achieve goals.

• The manager does not have the skill to use punitive power.

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The Produce or Perish Style (9,1)• This style shows a high concern for production and a low

concern for people.• Managers using this style do not take care of employee

needs. • They expect performance in return for money.• Managers put pressure on employees through rules and

punishments to achieve organizational goals.• Such leaders are hard on their workers, less cooperative, task

oriented.• They expect people to follow their instructions.

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The Middle-of-the-Road Style (5,5)• This style shows balance between company goals and worker

needs.• Such mangers are concerned with both people and

production.• They hope to achieve acceptable performance by showing

concern for both.

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The Team Style (9,9)• This style shows high concern for both, people and

production.• Such managers encourage team work and commitment

among employees.• They make employees feel that they are a useful and positive

(constructive) part of the company.• They lead by examples and make efforts to encourage team

environment.

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Grid Relationship Skills• The Grid theory can be used practically through grid style

relationship skills.• These relationship skills show behavior for each style that

makes relationship effective or ineffective.• Some behaviors help and motivate teams whereas some

hamper progress.

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• Critique – It is learning from experience by predicting and checking how behavior affects results.

• Initiative – It is taking action for shared effort and supporting specific activities.

• Inquiry – It is questioning and asking for information for understanding.

• Advocacy – It is expressing attitudes, opinions and ideas.• Decision-making – It is evaluating resources, criteria and

results to reach a decision.• Conflict resolution – It is handling disagreements with others

and reaching a solution or settlement.• Resilience – It is reacting to problems and failures and

understanding how these can affect the ability to move forward.

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Types of Leaders• In 1939, psychologist Kurt Lewin

and a group of researchers identified different styles of leadership.

• This study established three major leadership styles– Authoritarian– Democratic– Laissez-fair leader

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Authoritarian Leadership (Autocratic)

• Authoritarian leaders give clear instructions about what is to be done, when it should be done and how it should be done.

• They make independent decisions without taking input from the group members.

• Research has proved that decision making is less creative under authoritarian leadership.

• It is difficult to shift from an authoritarian style to a democratic style than shifting from democratic style to an authoritarian style.

• It is suitable for situations where there is little time for decision making or the leader is the most knowledgeable person of the group.

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Participative Leadership (Democratic)

• It is the most effective leadership style.

• Democratic leaders guide group members and take input from other members of the group.

• They encourage group members to participate but the final power of decision making lies with them.

• Group members are more motivated and creative.

• Delegative leaders provide no guidance to group members.

• The decision making power lies with the group members.

• This style can be effective in situations where group members are highly qualified.

• The group members do not understand their roles well and there is a lack of motivation among

Delegative (Laissez-Fair)

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Transformational Leader or Leadership

• The term transformational leadership was given by J.V. Downton in 1973.

• Transformational leaders take care of long term goals of the organization.

• The four dimensions of transformational leadership are– Charisma or idealized influence– Inspirational motivation– Intellectual stimulation– Individualized consideration or individualized attention

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Charisma or Idealized Influence• It is the degree to which leaders behave in a way that cause

followers to follow them.• Charismatic leaders:

– Show confidence– Take opinions– Appeal to followers on an emotional level

• They are role model for their followers.

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Inspirational Motivation• It is the degree to which the leader expresses the vision that

is attractive and inspiring to followers.• Leaders with inspirational motivation challenge followers with

high standards, communicate hopefulness (optimism) about future goals.

• This aspect of leadership should be supported by good communication skills so that leader can express his or her vision accurately and forcefully.

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Intellectual Stimulation• It is the degree to which the leader challenges assumptions,

take risks and takes ideas from followers.• Such leaders encourage creativity in their followers.

Individualized Consideration• It is the extent to which the leader takes care of needs of

each follower, acts as a mentor or coach to the follower, and listens to the needs of the follower.

• The leader respects the individual contribution of each follower to the team.

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Charismatic Leadership• Charismatic leaders show charismatic authority.• Charismatic authority is defined as resting on devotion to the

exceptional sanctity, heroism or exemplary character of an individual, and of the normative patterns or order revealed or ordained by him.”

• Charismatic authority is one of the three forms of authority and the other two are traditional authority and rational-legal authority.

• This concept is being used by sociologists also.

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Characteristics of Charismatic Leaders

• The term charisma means a quality of an individual by which he is different from ordinary people.

• These qualities are not present in ordinary people and thus people having these qualities are treated as leaders.

• Charismatic authority is power on the basis of a leader’s exceptional qualities which inspires followers to be loyal and obedient.

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Routinizing Charisma• The way in which the constant challenge that charismatic

authority presents to a particular society decreases and fits into that society is known as routinization.

• Reutilization is the process by which charismatic authority is succeeded by bureaucracy controlled by a logically established authority or by a combination of bureaucratic and traditional authority.

• Benito Mussolini and Adolf Hitler are charismatic leaders.

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Does Charisma Matter?

• Sometimes charisma matters.• Charismatic leaders inspire and

create excitement.• In some situations charisma

does not matter at all.• Research on this topic

concluded that “when conditions are uncertain, charismatic bosses encourage the subordinates to work beyond their duty.”

• Charismatic people have the skill to break complex ideas into simple messages. They communicate with the help of symbols, analogy and stories.

• They like to take risks and are optimists.

• They are revolutionary by nature and don’t like principles and rules.

What do charismatic leaders do?

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Development of Charismatic LeadershipThere are four stages in the development of charismatic leaders. They are:•Sensing opportunity and formulating a vision: These leaders easily see the problem or imperfection in the existing situation or sense the need of an existing situation. These help him or her have a vision of the future.•Articulating the vision: These leaders have a sense of vision and the capacity to convey that vision to a large number of people.•Building trust in the vision: Subordinates must support the goals of the leader. This cannot be done forcefully. It can be done when the subordinates trust the leader and feel that the goals are practical.•Achieving the vision: These leaders use personal example and role modeling to show how vision can be achieved and how motivation can be maintained.

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A trip to the dark side: charisma doesn’t guarantee success

• People view charismatic leaders as those who can make revolutionary changes, launch new enterprises, and get exceptional performance from members of the organization.

• People have trust, faith and belief in these leaders.• But this does not guarantee that the mission will be correct

and successful.• These leaders can lead to very bad results as well.• Charismatic leaders can be very risky.• Most organizations do not like to take risk because the cost of

following the wrong vision is far more than having no vision at all.

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Difference Between Managers and Leaders

• There is a clear difference between management and leadership.

• One difference between management and leadership is– Management involves power by position.– Leadership involves power by influence.

• Abraham Zaleznik (1977) has differentiated between leadership and management. In his opinion leaders are inspiring visionaries, concerned about substance (core or central part); while managers are planners who have concerns with process.

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Warren Bennis (1989) has given twelve differences between leaders and managers. They are:

1.Managers administer, leaders innovate.2.Managers ask how and when, leaders ask what and why.3.Managers focus on systems, leaders focus on people.4.Managers do things right, leaders do the right things.5.Managers maintain, leaders develop.6.Managers depend on control, leaders inspire trust.7.Managers have a short-term perspective, leaders have a long-term perspective.

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8. Managers accept the situation as it is (status quo), leaders challenge the status quo.

9. Managers have an eye on the bottom line, leaders have an eye on the horizon.

10. Managers imitate (copy), leaders originate (have original ideas)

11. Managers follow the classic good soldier (examples set or methods used by other people), leaders are their own person.

12. Managers copy, leaders show originality.

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