OB Presentation

LEADERS AND LEADERSHIPLeader – Someone who can influence others and who has managerial authorityLeadership – What leaders do; the process of influencing a group to achieve goalsIdeally, all managers should be leaders

Leadership research has tried to answer: What is an effective leader?

Early Leadership Theories Trait Theories (1920s-30s)

Research focused on identifying personal characteristics that differentiated leaders from nonreaders was unsuccessful.

Later research on the leadership process identified seven traits associated with successful leadership: Drive, the desire to lead, honesty and integrity,

self-confidence, intelligence, job-relevant knowledge, and extraversion.

Seven Traits Associated with Leadership

Behavioral Theories of Leadership

Behavioral Theories of Leadership

The Fiedler Model (cont’d) Proposes that effective group performance

depends upon the proper match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence.

Assumptions: A certain leadership style should be most effective in

different types of situations. Leaders do not readily change leadership styles.

Matching the leader to the situation or changing the situation to make it favorable to the leader is required.

Contingency Theories of Leadership

Contingency Theories… (cont’d)

The Fiedler Model (cont’d) Least-preferred co-worker (LPC) questionnaire

Determines leadership style by measuring responses to 18 pairs of contrasting adjectives.

High score: a relationship-oriented leadership style Low score: a task-oriented leadership style

Situational factors in matching leader to the situation: Leader-member relations Task structure Position power

situational leadership theory (SLT)

A contingency theory that focuses on followers’ readiness.

Acceptance: leadership effectiveness depends on whether followers accept or reject a leader.

Readiness: the extent to which followers have the ability and willingness to accomplish a specific task.

Situational Leadership Theory (SLT) (cont’d.)

Four specific leadership styles Telling: leader tell to follower what and how to do?

Selling: leader is supportive and directive

Participating: leader include followers in decision making

Delegating: leader is not much supportive toward followers

Component model

R1 R2 R3 R4

unable unable able Able

unwilling willing unwilling willing

telling selling

participating

delight

Path-Goal Model

the leader’s job is to assist followers in attaining their goals and to provide direction or support different leadership styles Directive leader

Supportive leader

Participative leader

Achievement oriented leader

Leader–member exchange (LMX) theory

leaders’ creation of in-groups and out-groups; subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.These groups are made on the bases of same Demographic Personality Attitude Gender

Transactional Leadership

Transactional leadership styles are more concerned with maintaining

the normal flow of operations. Transactional leaders use

disciplinary power and an array of incentives to motivate employees to

perform at their best.

Transformational Leadership

• A transformational leader goes beyond managing day-to-day operations and crafts strategies for taking his company, department or work team to the next level of performance and success. Transformational leadership styles focus on team-building, motivation and collaboration with employees at different levels

Visionary Leaders

• Visionary leaders are individuals who use an idea about the way things could be to motivate individuals to do as they say.

Charismatic Leaders

• They are charming individuals who know how to make individuals think that they like them

Team leadership

Manager controll the whole work on making a team e-g getting the views of the employees and making decisions

ABOUT WALMART

Walmart is an American multinational retailer corporation founded by Sam Walton in 1962 known for discount retailing

Incorporated on October 31, 1969

Publicly traded on the New York Stock Exchange in 1972

World's third largest public corporation

8,500 stores in 15 countries, under 55 different names

Business strategies

Wal-Mart

Stationery

Food

Home appliances

Household chemicals & consumables

Health &beauty aids

Paint &hardware

Sporting goods

Automotive

Wal-Mart’s vision and mission statement

Vision Statement“To be the best retailer in the hearts and

minds of consumers and employees.”

Mission Statement"We save people money so they can live better.”

Principles to fulfill mission Open Door Policy - Managers' doors are open to

employees Sundown Rule - Answering employee, customer,

and supplier questions Grass Roots Process - Capturing suggestions and

ideas from the sales floor and front lines 3 Basic Beliefs & Values - Respect for the

Individual, Service to our Customers, Striving for Excellence

10-Foot Rule - Making eye contact, greeting, and offering help to customers who come within 10 feet

Servant Leadership - Leaders are in service to their team

Organizational StructureWal-Mart follows a hierarchy

structure at the top level and a functional organizational structure at the store level

Leadership at Wal-Mart

Sam Walton was the founder of Wal-Mart He practiced a democratic leadership

styleAppreciating his associates’ opinionsSaturday meetingsVisited stores regularly to checkGave each employee the opportunity to

act as leaders

Transactional leadership

Responsible for executing the strategy and running day to day business at the store.

Impact of Transactional Leadership on Wal-Mart

Promoting of high performing individuals Norm at Wal-Mart where good performance was

rewarded as promotion and rewards. This serves as a big motivation factor Good balance of standard and freedom Managers and associates have lot of freedom to

set up and stock according to their own decision.

Impact of Transactional Leadership on Wal-Mart

Relationship between suppliers Based on the model of give and take Pushes cheapest prices In return provides assured orders in large

quantities to suppliers Improving the process and supply chain

Transformational leadership at Wal-Mart

Four factors to transformational leadership

Idealized influence describes Leaders who are role models for associates.

Inspirational motivation describes Leaders who motivate associates to commit to the vision of the organization

Individual consideration describes Leaders who act as coaches and advisors to the associates.

Intellectual stimulation describe leaders to be innovative and creative

Combine Effect

Charismatic leadership

The abilities of charismatic leader The strong personal interaction

Articulate the compelling and evocate vision

Enhance followers self-conception Sam Walton had all these abilities