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The effectiveness of leader’s behaviour is contingent upon the demands imposed by situation. A successful leader under one set of circumstances may be a failure under a different set of circumstances. A leader is more successful when his personal traits complement the situational characteristics. There are four contingency variables that influence leader’s behaviour. Leader’s characteristics Sub-ordinate characteristics Group characteristics Organisational structure characterises
There are three such main theories that have been proposed. 1. Fiedler’s contingency theory: This theory explains that group performance is a result of interaction of two factors. These factors are known as leadership style and situational favourableness. In Fiedler's model, leadership effectiveness is the result of interaction between the style of the leader and the characteristics of the environment in which the leader works. 2. Path goal theory: - This theory proposed by House & Mitchell. As per this theory, the effectiveness of leaders can be measured from their impact on their subordinates’ motivation, their ability to perform effectively and their satisfaction with their task. 3. Hearsey and Blanchard’s situational leadership theory:- It is a combination of task and relationship behaviour based on willingness or maturity of the group to carry out the task independently. Task behaviour includes organising and defining roles, explaining activities and establishing methods to get jobs accomplished. Relationship behaviour includes maintaining personal relationship with subordinate by opening channel of communication, provide socio-emotional relationship support and facilitating behaviour.
followers might be willing to work on the task. Leaders pass most of the responsibility onto the follower or group. knowing when to use each style is largely dependent on the maturity of the person or group you're leading. M2 – At this level. Psychological maturity relates self confidence. and how to perform various task. (d)Delegating (S4) – followers are both able and willing to perform their task. The followers’ maturity is determined by the degree or capacity of the followers to set high but attainable goals. ability and willingness of the people to direct their own behaviour. Leaders still provide information and direction. and ability to take responsibility and education of the group. They break maturity down into four different levels: M1 – People at this level of maturity are at the bottom level of the scale. Maturity Levels According to Hersey and Blanchard. (c)Participating (S3) – followers are able but not confident of their ability to perform their task. but there's more communication with followers. the following four leadership styles have been identified. They lack the knowledge.It emphasising matching a style of leadership with maturity of subordinates. but they're still not confident in their abilities. The leaders still monitor progress. 2 . Leaders "sell" their message to get the team on board. willingness. but they still don't have the skills to do it successfully. In context of a particular task. and shares decision-making responsibilities. M3 – Here. but they're less involved in decisions. Leaders focus more on the relationship and less on direction. there are four main leadership styles: (a)Telling (S1) – followers are both unwilling and unable to perform a task independently. (b)Selling (S2) – followers are willing but unable to perform their task. followers are ready and willing to help with the task. They have more skills than the M2 group. Leaders tell their people exactly what to do. According to Hersey and Blanchard. The leader works with the team. skills. it consists of two aspects . Based on the relationships between leadership style and maturity. or confidence to work on their own. Job maturity and psychological maturity. and they often need to be pushed to take the task on. Job maturity relates to technical knowledge and skills relevant to task.
and they're committed to the task. Limitation: Individual has different maturity level. Leaders can change or adapt their style according to the followers maturity but in real life situation. Implication of model. 3 . it may not be possible for individual to change their style so easily and quickly. Leader should check and determine what combination of task and relationship behaviour would be most appropriate in particular situation. They have high confidence and strong skills. the inexperienced employee may perform high level of work. This model is that leaders are unlikely to find complete range of job that can be performed by followers of a particular maturity level. it may be impossible in team situation for a leader to address the different maturity level.it is simple to understand and it is straightforward. If the leadership style is appropriate.M4 – These followers are able to work on their own. it helps followers to increase their level of maturity. Under close supervision and direction. it results when leader develops a team and helps team members learn to manage themselves.
leaders need to communicate with team members clearly. land cost etc.commerce. 4 . Every organisation needs to spread through the world with maximisation profit by cutting down labour cost. e-taxation etc. these aspects necessitate some new skills in leading virtual teams in comparison with the conventional teams. The main reason of developing e-leader is to solve geographical or temporal separations. These aspects also create some unique challenges facing e-leaders. New changes in organizations and teams’ formation force managers and employees to communicate more with each other via telephones. Globalization has led to more complex and dynamic jobs and forced managers to lead organizations that consist of geographically dispersed headquarters. In order to adapt to new demands. removing the physical boundaries. competency optimization and efficiency of project execution phase are enhanced by using virtual teams. Therefore. emails. eleaders usually face challenges on trust establishment. Sometimes employees in these scattered organizations are distributed in different continents with different time zones. positively and constructively but communication technologies and lack of non-verbal communication make this process more complicated in virtual teams. In the process of developing virtual teams. e-governance. In order to enhance the collaboration and resolve the ambiguities and uncertainties among members. To avoid such problems. E-leadership has been formed in order to respond to the unique problems that organizations have faced due to dispersion of headquarters and globalization. faxes. communication conflicts. e-education. though some other advantages.Q-1 E-leadership The organisation specifically MNCs are playing most important role in economic growth and also their sustainability in this world. availability to form new partnerships without considering location. online shopping. such as reducing officespace costs. organizations have formed a new type of team by using the new communication technology which is called virtual team or e-team. and video and voice conferences instead of face-to-face meetings. This new type of team needs a new type of leadership which is usually labelled “e-leadership” or “virtual leadership”. deadlines and team cohesiveness. IT has given lots of opportunities to MNCs for spreading their business across the globe such as e. Now the MNCs have adopted another E –model that is E-leadership.
The exchange of data may not be produced timely because of failure of communication. Virtual leaders must create opportunities for building trust among all team members to enhance the collaboration in their teams. Huge data data transferred may not be possible because of limitation in server and data transfer capacity. • • Change of technology:-Leaders have to give effort to accept the change of technology in place of conventional technology. Building trust is one of the most significant challenges of e-leaders. It is worth noting that cultural differences can originate from either national or organizational differences. Cultural differences have been identified as one of the main sources of negative influence in the coordination among the team members in virtual teams. • Communication difficulties. Firstly. instant messaging. To accomplish this.The different reports are received from different unit of projects may not be as per requirement of leaders or organisation. The data may be hacked during exchange of data. Communication causes some difficulties due to two main reasons. team members need to know when to use each of them since all of these means of communication are not suitable for all situations. Change in organisational structure :It is the demand of time for change and modification of corporate structure to suit the E-leader and virtual groups These are the challenges in e-leadership faced by MNC. both geographical and organizational cultural differences should be taken into account by eleaders • Complexities in data exchange. 5 . and voice mail. e-mail.These challenges can be summarized as follows: • Building trust-Creating a trusting work environment is one of the most challenging functions of e-leaders. the team members need to learn how to use these types of communication properly.Members and leaders use indirect ways of communication such as phone conversation. it is suggested that e-leaders be train about communication tools. Therefore. • Cultural diversity-Virtual team members and e-leader with different cultural background apparently interpret written and oral communication according to their own cultures so cultural differences cause different perceptions of team members from a specific task. Secondly. Not only do leaders need to trust their team members but they also have to establish and enhance trust among them.
rather than spending their time thinking up better ways to serve hamburgers. It forms as basis for more mature interaction but care should be taken by leaders not practice it exclusively. Transactional leaders provide distinct advantages through their abilities to address small operational details quickly. Different management styles are best suited to different situations and also depend on subordinates maturity level. Characteristics of Transactional Leaders Practical. Both leadership styles are needed for guiding an organization to success. Shift supervisors at a fast food restaurant will be much more effective if they are concerned with ensuring all of the various stations run smoothly.Q-4 Transactional leadership can be used as a substitute for transformational leadership. Transactional style of leadership is viewed as insufficient but not bad in developing maximum leadership potential. CEOs or sales managers can be more effective if they are transformational leaders. When it comes to front-line supervisors of minimum wage employees. a transactional leadership style can be more effective. while keeping employees productive on the front line. rewards are withheld when the employee does not reach the expected level of performance. through positive reinforcement. power. It is not true.One of the characteristics of the leader is practicality. are given for doing what is required. perks and politics. Executive managers need the ability to design and communicate grand strategic missions. size of organisation etc. for example. content of task. Small businesses with transformational leaders at the helm shoot for ambitious goals. passing the missions down to transactional leaders for implementation of the detail. Transactional leaders handle all the details that come together to build a strong reputation in the marketplace. Transformational leadership styles are crucial to the strategic development of a small business. 6 . Rewards. otherwise it will lead the creation of environment permeated/ penetrated by position. On the other hand. and they can achieve rapid success through the vision and team-building skills of the leader.
Difficult decisions are made easier when decisions align with clearly defined vision. There is no scope for employee innovation under this kind of leadership. A transactional leader wants things to remain as they are and does not believe in transforming the work environment to make things better. Inspiration comes not just from a formal motivational speech or simple recognition for a job well done. Adaptability: Transformational leaders are willing to adapt and are always seeking new ways to respond to a constantly changing business environment. They are quick to spot performance. Organizational consciousness: Transformational leaders share the collective conscious of their organization. Recognizes and Rewards Performance:-Transactional leaders. because of their dislike for change in the work environment. 7 .Change Resistant-Transactional leaders tend to dislike change. A transactional leader has tunnel vision and believes that what has been instituted is for the best. Transformational leaders do not back away or put off tough decisions. The ability to make difficult decisions : Difficult decisions are a part of being a leader.A transactional leader believes in making all the decisions and expecting employees to simply follow instructions. are constantly monitoring performance based on specific targets and objects. recognize and reward it. spur innovation. goals. Inspirational: Transformational leaders have the ability to make those around rise to the occasion. They understand what actions to take to evoke change. Directive:. Poor transactional leaders are less likely to spot problems and take charge to prevent a disaster. and objectives. values. Check their ego: transformational leaders keep their ego in check and do not let it get in the way of doing what is best for business. Willing to listen and entertain new ideas : Transformational leaders understand that success is a team effort and growth is derived from the willingness to be open and listen to ideas from all levels of their organization. but by treating people as individuals and taking the time to understand what motivates and inspires their team. Characteristics of Transformational Leaders:Internal motivation and self-management: Transformational leaders find motivation from within and use that as the driving force to effectively manage the direction of the company. and make decisions that will create growth. Willing to take the right risks: Transformational leaders take calculated risks that more often than not result in positive outcomes.
Transformational leaders have the ability not only to effectively communicate the vision. Behaviour. group objectives resulting organisation goal. 4 A manager performs all five functions of Leader influences people to work willingly for management like planning. Leader does the right thing Leaders have their eyes on the horizon 6 7 8 9 All managers are leaders. Q-3 Major difference in Managers and leaders Leader is a person who is influencing and inspiring subordinates to perform their duties willingly.Proactive: Transformational leaders are proactive decision makers. All leaders are not managers. 3 The subordinates are the followers of manager. They are willing to take risks. but also get every person to buy in and work toward that vision by communicating with passion and clearly emphasizing the direction they want the company to pursue. and enthusiastically in order to achieve the desired organisation goals. Visionary:. Mangers 1 Manager by virtue of his position. controlling. Leaders Leader on basis of his personal qualities. Manger does things right Managers have their eyes on the bottom line Manger focuses on system and structure of leader focuses on people department or organisation. competently. monitoring their work. 8 . and taking corrective action when necessary.. organising. try new things and take an innovative approach to growing the organization. 1 Mangers have short range view. Manager is a person responsible for planning and directing the work of a group of individuals. Group of employees are followers of leader. talents etc. 5 A manager is very essential to a concern A leader creates cordial relation between person person. Leaders have a long range perspective view. 2 Manager has formal right because of his Leader does not have any formal right position. They do not wait around for others to make decisions and then react. working in and for organization. directing etc.
and related task records. 1 4 Manager has command over allocation and A leader has command over different sanctions distribution of sanctions. problem Manager displays impersonal attitude about Leader displays very passionate attitude about the the vision and goals. 1 5 1 6 1 7 Managers take low risk approach to solving Leaders takes high risk approach to solving problem. Manager develops process steps and set Leaders develop strategic plans and achieve the timelines. satisfaction A manager can continue in office till he A leader can maintain his position only through performs his duties satisfactorily in day to day wishes of followers. mission and direction. 9 .0 1 1 1 2 1 3 Manager is accountable for self and Leaders have no well defined accountability. implement vision. subordinates behaviour and performance. communicates the vision. These sanctions are essentially of informal nature. congruence with organizational goals. vision and goals. vision. A manager’s concern is organizational A leader’s concern is group goals and member’s goals.
It is also known as vertical Dyad Linkage theory (VDL). The group a member lands in tends to be the group where the member remains. to whom they give high levels of responsibility. But he wants to know the sales staff’s performance. is given low levels of choice or influence. leaders often have a special relationship with an inner circle of trusted advisors. and share more administrative duties. Jibb work experience was weekend life guard. In this role-making stage. But he might have good leadership qualities. It is during this stage that members ultimately are relegated to the in-group or out-group. what they are doing exactly. They are also expected to be fully committed and loyal to their leader.Case study 1. This experience is not fit for a business. They have to nurture the relationship with their inner circle whilst balancing giving them power with ensuring they do not have enough to strike out on their own. are more committed to task objectives. This also puts constraints upon the leader. decision influence. and how they are to be motivated. The out-group. 10 . on the other hand. Reutilization occurs as relationship patterns between leaders and members solidify. The basic premise of VDL/LMX is that leaders develop separate exchange relationships with each subordinate. leaders and members negotiate informally on issues related to the workplace. I will use Leader. This in-group pay for their position. His wife has given a job to supervise the sales staffs of small boat. and access to resources. If the opportunity is given to me as a leader.Member exchange (LMX) theory. describes how leaders in groups maintain their position through a series of tacit exchange agreements with their members. They work harder. In particular.
For sales team. some of sales person needs no supervision while others want to know what they are supposed to do. 1. His wife has given a job to supervise the sales staffs of small boat.I analysed my strength and weakness of my suggested leadership style. Reasons of qualities of leadership for this role making are: Making motivation by giving reward or incentives. it is found that couple of sales person insist on being mangers themselves. On analysis of the case study. recognition. This experience is not fit for a business. Jibb work experience was weekend life guard. • Guiding in a proper way increases the rewards along the route. My leadership plan will work for this company. Creating supportive environment for sub-ordinates. and how they are to be motivated.2 . Self involvement in inner team which help buiding trust and enhancing the good relationship without any barrier. The strength will create distinct leadership style. Good communication and exchange of views with sub-ordinates Dyad (between two) relation with the members. But he might have good leadership qualities. If opportunity is given to me as a leader. But he wants to know the sales staff’s performance. I will use two set of leadership theory. It removes road blocks which are blocking the path of the sub -ordinate to move ahead. 11 . One is path-goal theory and another is Leader – Member Exchange theory or vertical Dyad Linkage theory (VDL). path goal theory of leadership is appropriate because • • It clarifies path to subordinate guiding them to define in which way they proceed. what they are doing exactly.
Because they need individual supervision based on their requirement. 12 . Leader – Member Exchange theory or vertical Dyad Linkage theory (VDL) will be more appropriate.But for couple of sales person.
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