leadership

Leadership

Module 9

Contents…..

• Leaders Vs. Managers• Trait Theories• Behavioural Theories – – Ohio State studies, – University of Michigan studies

• Contingency Theories – Fiedler Model– Hershey and Blanchard’s Situational Theory– Path Goal Theory

• LMX Theory

Continued…

• Contemporary issues in leadership– Charismatic and transformational leadership– Authentic leadership

• Contemporary leadership roles – Mentoring, self leadership, the E-age and on line

leadership• Finding and creating effective leaders

What Is Leadership?Leadership

The ability to influence a group toward the achievement of a vision or set of goals.Management

Use of authority inherent in designated formal rank to obtain compliance from organizational members.

There was a one hour interview on CNBC with Warren Buffet, the second richest man who has donated $31 billion to charity. Here are some very interesting aspects of his life:

1. He bought his first share at age 11 and he now regrets that he started too late!

2. He bought a small farm at age 14 with savings from delivering newspapers.

3. He still lives in the same small 3-bedroom house in mid-town Omaha, that he bought after he got married 50 years ago. He says that he has everything he needs in that house. His house does not have a wall or a fence.

4. He drives his own car everywhere and does not have a driver or security people around him.

Principles of Warren Buffet

5. He never travels by private jet, although he owns the world's largest private jet company.

6. His company, Berkshire Hathaway, owns 63 companies. He writes only one letter each year to the CEOs of these companies, giving them goals for the year. He never holds meetings or calls them on a regular basis. He has given his CEO's only two rules. Rule number 1: do not lose any of your share holder's money. Rule number 2: Do not forget rule number 1.

7. He does not socialize with the high society crowd. His past time after he gets home is to make himself some pop corn and watch Television.

8. Bill Gates, the world's richest man met him for the first time only 5 years ago. Bill Gates did not think he had anything in common with Warren Buffet. So he had scheduled his meeting only for half hour. But when Gates met him, the meeting lasted for ten hours and Bill Gates became a devotee of Warren Buffet.

9. Warren Buffet does not carry a cell phone, nor has a computer on his desk.

His advice to young people: "Stay away from credit cards and invest in yourself and Remember:

A. Money doesn't create man but it is the man who created money.

B. Live your life as simple as you are.

C. Don't do what others say, just listen them, but do what you feel good.

D. Don't go on brand name; just wear those things in which you feel comfortable.

E. Don't waste your money on unnecessary things; just spend on them who really in need rather.

F. After all it's your life then why give chance to others to rule our life."

Leaders and Managers

Trait Theories

Leadership Traits:• Ambition and energy• The desire to lead• Honest and integrity• Self-confidence• Intelligence• High self-monitoring• Job-relevant knowledge

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders.

Trait Theories of Leadership

• Not very useful until matched with the Big Five Personality Framework

• Essential Leadership Traits– Extroversion – Conscientiousness– Openness – Emotional Intelligence (Qualified)

• Traits can predict leadership, but they are better at predicting leader emergence than effectiveness.

Trait Theories

Limitations:• No universal traits found that predict leadership in

all situations.• Traits predict behavior better in “weak” than

“strong” situations.• Unclear evidence of the cause and effect of

relationship of leadership and traits.• Better predictor of the appearance of leadership

than distinguishing effective and ineffective leaders.

Behavioral Theories

• Trait theory:Trait theory: leadership is inherent, so we must identify the leader based on his or her traits

• Behavioral theory:Leadership is a skill set and can be taught to anyone, so we must

identify the proper behaviors to teach potential leaders

Theories proposing that specific behaviors differentiate leaders from non-leaders.

Important Behavioral Studies

Ohio State

•Initiating structure•Consideration

Michigan •Production-oriented•Employee-oriented

Ohio State StudiesInitiating StructureThe extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in the search for goal attainment.

ConsiderationThe extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate’s ideas, and regard for their feelings.

1. Assigns group members to particular tasks

2. Expects workers to maintain definite standards of performance

3. Emphasizes the meetings of deadlines

University of Michigan Studies

Employee-Oriented LeaderEmphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members.

Production-Oriented LeaderOne who emphasizes technical or task aspects of the job.

Contingency Theories

1. Fiedler Model2. Hersey Blanchard’s situational theory3. Path-goal theory

Fiedler’s Contingency ModelThe theory that effective group performance depends on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.

Least Preferred Co-Worker (LPC) Questionnaire

An instrument that purports to measure whether a person is task- or relationship-oriented.

Fiedler’s Model: Defining the SituationLeader-Member Relations

The degree of confidence, trust, and respect subordinates have in their leader.

Position Power

Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.

Task Structure

The degree to which the job assignments are procedurized.

Findings from Fiedler Model

E X H I B I T 11–2

Hersey and Blanchard’s Situational Leadership Theory

Situational Leadership Theory (SLT)

A contingency theory that focuses on followers’ readiness.

Leader: decreasing need for support and supervision

Follower readiness: ability and willingness

Unable andUnwilling

Unable butWilling

Able andWilling

Directive High Task and Relationship Orientations

Supportive Participative

Able andUnwilling

Monitoring

Leadership Styles and Follower Readiness(Hersey and Blanchard)

WillingUnwilling

Able

Unable DirectiveHigh Task

and Relationship Orientations

Supportive Participative Monitoring

Follower Readiness

LeadershipStyles

Leader–Member Exchange Theory

Leader-Member Exchange (LMX) Theory

Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

Leader-Member Exchange (LMX) Theory

In-Group• Members are

similar to leader• In the leader’s

inner circle of communication

• Receives more time and attention from leader

• Gives greater responsibility and rewards

Out-Group• Managed by formal rules and policies• Receive less of the leader’s attention / fewer exchanges• More likely to retaliate against the organization

Leader-Member Exchange Theory

Path-Goal Theory Developed by Robert House. Extracted from Ohio State Studies and Expectancy theory of motivation. The theory states that it is the

leader’s job to assist followers in attaining their goals and to provide them the necessary

direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

The Path-Goal Theory

Charismatic Leadership• Charisma means gift in Greek

Vision

Personal Risk

Sensitivity to Followers

Unconventional Behavior

Charismatic Leadership

How do charismatic leaders influence followers?

Articulate a Vision

Create a

Vision Statem

ent

Create a new set of Values

Demonstrate the VisionFamous examples of charismatic leaders are Winston Churchill,

Bill Clinton, Mother Teresa and Adolph Hitler.

Transformational Leaders• Inspire followers to transcend their self-interests for the good of

the organization

Transactional• Contingent Reward• Management by Exception (active/ passive)• Laissez-Faire

Transformational• Idealized Influence• Inspirational Motivation• Intellectual Stimulation• Individualized Consideration

Famous transformational leaders include Martin Luther King Jr. and Walt Disney.

Authentic Leaders

• Authentic leaders know who they are, what they believe in and value, and act upon those values and beliefs.

Ethics and Leadership

• Leadership is not free from values. When we assess leadership, we must assess not just the goals themselves but also the means by which those goals are achieved.

Mentoring – Leading for the Future• Mentor: A senior employee who supports a less

experienced employee.

Career Functions

Helping the protégé gain skills and abilities

Lobbying for the protégé to get better assignments

Providing exposure to influential individuals in the organization

Acting as a sounding board for ideas

Psychological Functions

Counseling the protégé to bolster his/her confidence

Sharing personal experiences with the protégé

Providing friendship and acceptance

Acting as a role model

Finding and Creating Effective Leaders

Selecting Leaders

Training Leaders

Global Implications• These leadership theories are primarily studied in

English-speaking countries• GLOBE does have some country-specific insights

– Indian employees want action-oriented and charismatic leaders.

– 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

Summary and 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.

• Research on charismatic and transformational leadership has made major contributions to our understanding of leadership.

• Leaders must be seen as authentic and trustworthy.

• Investment must be made in the future through mentoring and training leaders.