LEADING

-THE NATURE OF LEADERSHIP

-Leader is someone who has the ability to lead others to achieve organizational goals
because leading is one of four management functions.

-Three aspects of leadership

1. People- leadership occurs among people

2. Influence- leadership involves the use of influence

3. Goal- leadership is used to attain goals

-CONTEMPORARY LEADERSHIP

a) Level 5 leadership

b) Servant leadership

c) Authentic leadership

-FROM MANAGEMENT TO LEADERSHIP

-Management and leadership reflect two different sets of qualities and skills that frequently
overlap within a single individual

Manager Qualities Leader Qualities

Focus on organization Focus on people
Rational Visionary
Maintain stability Promote change
Assign tasks Define purpose
Organize Nurture
Analyze Innovate
Position power Personal power

-LEADERSHIP TRAITS

-Trait theory of Leadership is an early of theory that focuses on the leader’s traits.

-It attempt to isolate traits (personal characteristic) that differentiate leaders from
non-leaders and this theory also inherit certain qualities and traits which make them better
suited to leadership.

Personality - Self confidence

- Honesty and integrity
- Enthusiasm
- Desire to lead
- Independence
Intelligence and - Intelligence, cognitive ability
ability - Knowledge
- Judgement
Physical - Energy
characteristics - Physical stamina
 Social characteristic - Sociability, interpersonal skills
- Cooperativeness
- Diplomacy
Social background - Education
- Mobility
Work-related - Achievement drive
characteristic - Conscientiousness in pursuit of goals
- Persistence against obstacles

-BEHAVIORAL APPROACHES

1.1 Task vs People

a)University of Lowa researchers explored 3 leadership behaviors or styles

-Autocratic style- centralize authority, make unilateral decisions and limit employee
participation

-Democratic style- involve employee in decision making, delegate authority and use
feedback as an opportunity to coach employees.

-Laissez-faire leader- generally gives their employees complete freedom to make

decision and to complete their work in whatever way they see fit.

b)The Ohio State University researchers identified 2 major leadership behaviors

called consideration and initiating structure:

-Consideration- establishes mutual trust. Considerate leader are friendly, provide

open communication, develop teamwork

-Initiating structure- give instruction, spend time planning, emphasize deadlines and
provide schedules of work activites

c)University of Michigan researchers identified 2 major leadership behaviors called

employee-centeres and job-centered:

-Employee-centered – refer to leader who established hogh performance goals and

displayed supportive behavior toward subordinates. (most effective style)

-Job-centered – ineffective and less concerned with goal achievement and human
needs in favor of meeting schedules, keeping costs low and achieving efficiency.

1.2 The Leadership Grid

Impoverished Exertion of minimum effort to get required work done is

Management appropriate to sustain organization membership.
Occurs when leaders really care about producing a friendly and
Country club
enjoyable work environment but give little attention to
Management
production or performance.
Adequate organization performance is possible through
Middle of the road
balancing the necessity to get out work with maintaining
Management
morale of people at a satisfactory level.
Authority- Leaders show high concern for production and low concern for
Compliance people. The leaders want work schedule to be followed at any
 costs.
High concern for people and production. Work accomplished
Team Management from committed people, interdependence and through
common interests as well as a relationship of trust and respect.
Of these 5 styles, the researchers concluded that managers performed best when using a
team management style, and the ineffective style was impoverished management style.

-CONTIGENCY APPROACHES

1.1 Situational Leadership Theory

- A theory that focused on follower’s readiness. Readiness refers to the extent to

which people have the ability and willingness to accomplish a specific task.

-There are 4 leadership styles associated with this theory:

a) Telling (high task and low relationship)

b) Selling (high task and high relationship)

c) Participating (low task and high relationship)

d) Delegating (low task and low relationship)

Situation (Follower’s Readiness Level) The effective Leadership Style

Low Readiness Level Telling
Moderate Readiness Level Selling
Moderate Readiness Level Participating
High Readiness Level Delegating

1.2 Fiedler’s Contigency Theory

- Created in the mid-1960s by Fred Fiedler.

- The model states that there is no one best style of leadership. Instead, a leader’s
effectiveness is based on the situation

a) A relationship-oriented leader is concerned with people

b) A task-oriented leader is primarily motivated by task accomplishment

-Fiedles concluded that:

-The task-oriented leader is effective in favorable and unfavorable situations

-The relationship-oriented leader is effective in intermediately favourable

situations.

-A leader need to do 2 things to use Fiedler’s contingency theory:

-Determine his/her style whether it is a relationship or task-oriented style

-Diagnose the situation and determine whether leader-member relations,

task structure and position power are favorable or unfavorable.

-CHARISMATIC, TRANSFORMATIONAL AND TRANSACTIONAL LEADERSHIP

-2 types of leadership that can have a substantial impact are charismatic leadership and
transformational leadership.

a)Charismatic and visionary leadership

-This type of leader has the ability to inspire and motivate people to do more than
they would normally do, despite obstacles and personal sacrifice.

-Often skilled in the art of visionary leadership, which means that they a strong
vision for the future, almost an obsession, and they can motivate others to help realize it.

b)Transformational leadership

-Similar to charismatic leaders, but are distinguished by the following additional

abilities:

-To lead changes in the organization’s mission, structure and management of human
resources

-Able to take an organization through major strategic change, such as revitalization

-Able to create significant change in both followers and the organization.

-Able to bring innovation and change by just focusing on intangibles, such as vision,
shared values and ideas to build relationships, give larger meaning to activities and enlist
followers in change.

c)Transactional leadership

-Clarify subordinates’ role and task requirements, initiate structure, provide

appropriate rewards and try to meet the social needs of subordinates.

-This type of leader are hardworking, tolerant and fair-minded.

-However, they are less effective than transformational leaders becayse the focus on
tangibles such as rewards, promotions and awards.

-POWER AND INFLUENCE

1.1 Position Power

-Refer to sources of power that relate on managers’ position which give them the power to
reward or punish employees in order to influence their behavior.

a)Legitimate power

-Refers to person’s ability to influence others because of the position that person
holds within an organization.

b)Coercive power

-Refers to the power to punish and followers may comply out of fear.

c)Reward power

-Refers to person’s ability to reward or to distribute something that others value.

1.2 Personal Power

-From internal sources such as an individual’s special knowledge or personal characteristic

a)Expert power

-A person has expert power when he/she possesses an expertise

b)Referent power

-A power based on identification with a person who has desirable resources or

personal traits.
 CONTROLLING

-ORGANIZATIONAL CONTROL

-Systematic process of organizational activities influence the consistency in plans,

targets and standards of performance

-Managers need to decide an essential information, how to obtain and how they
respond to it.

-IMPORTANCE OF CONTROLLING

a) Accomplishing organizational goals

b) Judging accuracy of standards

c) Making efficient use of resources

d) Improving employee motivation

e) Ensuring order and discipline

f) Facilitating coordination in action

-STANDARDS AND MEASURES

-Most organizations focus on measuring and controlling financial performance such

as sales, revenue and profit.

-For example, customer services’ measure performance so that they can compete on
superior services.

-Once they measure the performances, they will evaluate their current standard
whether it can be maintain or need to be adjust

-THE BALANCED SCORECARD

-Originated by Dr Robert Kaplan (Harvard Business School) and David Norton as a

performance measurement framework to give managers and executives a more balanced
view of organizational performance.

-Balanced scorecard suggest viewing an organization from 4 perspectives:

a) The learning and growth perspective

b) The business process perspective

c) The customer perspective

d) The financial perspective

-FEEDBACK CONTROL MODEL

Step 1: Establish standards of performance

Step 2: Measure actual performance

Step 3: Compare performance against standards

 Step 4: Take corrective action

-TOTAL QUALITY MANAGEMENT

-Importance of quality management

-Quality makes a satisfied customer. Happy customers will continue to use

the products or services

-Poor quality reduces productivity and increases costs

-Quality is no longer an order winner, it is just an order qualifier

-TQM techniques

a) Qualitiy circles

b) Benchmarking

c) Six sigma

d) Just-in-time

e) Continuous improvement

https://books.google.com.my/books?
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Source: Harold Koontz & Heinz Weihrich, Essentials of Management, An

International Perspective, 8th Editon, pg 25