Fundamentals Of Leadership

Introduction
Research focuses on two key leadership issues: Why some organizational members become leaders while others do not Why some leaders are successful while others are not

1. 2.

Managers Versus Leaders

Managers
Persons whose influence on others is limited to the appointed managerial authority of their positions to reward and punish. Persons with managerial and personal power who can influence others to perform actions beyond those that could be dictated by those persons formal (position) authority alone.

Not all leaders are managers, nor are all managers leaders.
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What is Leadership?
Leadership the process of influencing others to facilitate the attainment of organizationally relevant goals One does not have to be in a formal leadership position in order to exert leadership behavior

Trait Theories Of Leadership

Assumes that a finite number of individual traits of effective leaders can be found
intelligence personality physical characteristics

Relies on research that relates various traits to certain success criteria Research findings are contradictory
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Traits Associated With Leadership Effectiveness:

Intelligence Judgment Decisiveness Knowledge Fluency of speech Personality Adaptability Alertness Creativity Personal integrity Self-confidence Emotional balance and control Independence (nonconformity) Abilities Ability to enlist cooperation Cooperativeness Popularity and prestige Sociability (interpersonal skills) Social participation Tact, diplomacy

Six Traits That Differentiate Leaders from Nonleaders

1. 2. 3. 4. 5. 6.

Drive Desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge
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Trait Theories Of Leadership

Theories that attempt to isolate characteristics that differentiate leaders from nonleaders Attempts to identify traits that always differentiate leaders from followers and effective leaders from ineffective leaders have failed. Attempts to identify traits consistently associated with leadership have been more successful.
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Shortcomings of the Trait Theory of Leadership

The list of potentially important traits is endless Trait test scores are not consistently predictive of leader effectiveness Patterns of effective behavior depend largely on the situation (environment) The trait approach fails to provide insight into what the effective leader does on the job

The Nature of Leadership

Leadership is the process of influencing people to direct their efforts toward particular goals.
Leadership
PROCESS of Leading

Goals

Management of Change

External Environment

People in Organizational CONTEXT

Task CONTENT 10

The Nature of Leadership

Leadership characteristics: are those possessed by effective leaders and include drive, originality, persistence, and tolerance of stress. Personal characteristics: are personal attributes often possessed by effective leaders and include superior mental ability, emotional maturity, and problemssolving (conceptualize & analytical) skills.

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Some Personal Characteristics

(Related to managerial effectiveness)

Superior Intelligence: With IQ range from 115-130. Emotional Maturity (EQ): Self-confidence and capable of directing subordinates in a calm, conscientious manner. Have a sense of purpose and meaning in life.
Able to cope with the demands and stress of both their business and personal lives.

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Some Personal Characteristics

(Related to managerial effectiveness) (cont)

Motivation Drive: Motivated by the opportunity to achieve the chance for power or control over a situation and by the need to self-actualize. Problem-solving skills: See a problem as both a challenge (Risk) and an opportunity to prove their managerial abilities (with drive and confidence.)

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Some Personal Characteristics

(Related to managerial effectiveness) (cont.)

Managerial skills:
1) Technical skills: help an individual determine how

things work.
2) Human Skills: help an individual interact with

other people.
3) Conceptual skills: help a manger understand how

all parts of the organization or department fit together.

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Skills Needed at Different Hierarchical Levels:

Technical skills Senior Manager Middle Manager Lower Manager L M H Human Skills M M M Conceptual Skills H M L

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Summary of Leadership & Characteristics

Task-Related Characteristics (Stogdills)
Need to excel or achieve Initiative Task orientation Drive for responsibility Responsibility in pursuit of objectives

Social Characteristics (Stogdills)

Administrative ability Interpersonal skills Tact and diplomacy Ability to enlist cooperation Social participation Cooperativeness Attractiveness

Gallup Organizations Leadership Talents

Goal orientation Energy Ability to help people grow A desire to win Willingness to accept challenge

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Nature of Organizational Personnel

The opinions leaders have about their people explain why leaders act as they do. Douglas McGregor has provided management with a set of assumptions: Theory X and Theory Y.

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Theory X and Theory Y

Theory X : holds that people are basically lazy & it is necessary to use coercion and
threats of punishment to get them to work. Assumptions: People, by nature, dislike & avoid work Have little ambition, shun responsibility, & like to be directed. Want security.

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Theory X and Theory Y

Theory Y: holds that, under the right conditions, people will work. Assumptions:
Natural to use mental effort at work. If committed to objectives, people will exercise selfdirection and self-control. Commitment is linked to the rewards for their achievement. People do seek & accept responsibility, under proper work environment. People have a wide range of capabilities in problem solving. Peoples intellectual potentials are only partially utilized.
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Continuum of Leadership Behavior

Distinguish among four styles of leadership behaviorAuthoritarian, paternalistic, participative, & laissez-faire. Task -Oriented Authoritarian Paternalistic Participative
On this end, subordinates input is small or not wanted

People -Oriented Laissez-Faire

On this end, subordinates input is large and is expected

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Leadership Behavior
Authoritarian Leadership: tends to be heavily
work centered, with little attention to the human element. View workers as factors of production.

Paternalistic Leadership: tends to be heavily work centered but has some consideration for the
personnel as well.

Work hard and Ill take care of you. [Asian Value?]

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Leadership Behavior (cont.)

Participative Leadership: have high concern for people at work.
-Delegating authority, sharing objectives and getting feedback from subordinates. [Western value? Management of complexity?]

Laissez-faire Leadership: is characterized by a lack of concern for either the people of the work.

Non-interference. Come close to abdicating

the leadership position & responsibility. [Not for the competitive business world?]
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Leader-Subordinate Interactions
Leader

Authoritarian Leadership

Leader
Subordinate Subordinate Subordinate

Subordinate

Subordinate

Subordinate

Paternalistic Leadership
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Participative Leadership
Leader
Continual flow of info. from leader to subordinate Continual exch. of info. between leader and subordinate and/or between subordinates themselves.
Subordinate [Some degree of self-organizing with guiding protocols?]

Subordinate

Subordinate

Leader

Laissez-Faire Leadership
Occasional exch. of info between leader and subordinate

Subordinate

Subordinate

Subordinate

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Leadership Behavior (cont.)

Basic Rules used by Leaders:
1. Be decisive 2. Do not promise what you cannot deliver 3. Praise people in front of others for a job well done and reprimand them in private when they have made a mistake 4. When possible, promote from within.
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Leadership Dimensions

A Leadership Grid
(Entail a concern for people and a concern for work )
High

Concern for People

High People -Low Work

(Eager to help or please, Sympathetic)

High People High Work

(To develop high teamwork, for challenging goals)

Low WorkLow People

(Laissez-faire, Hand-off)
Low

High Work -Low People

(To exercise control and have strict compliance)

Low

Concern for Work

High
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Contingency Leadership Styles

Applied to a Leadership Grid
High

Concern for People

Manager of a Successful Sales Group

(Knowing that the work are in good hands, selforganizing)

President of a Large Corporation

(Concern for long-range objectives & plan, & in need of support of key core teams)

Manager of an R&D Lab

(R&D workers are selfmotivated & derive intrinsic satisfaction from work)

Foreman on an Assembly Line

(To ensure workers keep up with production target)
High
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Low Low

Concern for Work

Contingency Leadership Models

What specific style of leadership is best in which type of situation?
Matching styles with environmental demands (e.g. level of risk & uncertainty, degree of control needed..)

Contingency Approaches:
1. Fiedlers Contingency Model 2. The Managerial Grid 3. Charismatic and Transformational Leadership
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Fiedlers Contingency Model

holds that leader effectiveness is determined by leadership style and situational variables.

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Situational Variables in Fiedlers Model

Leader-member relations: are determined by how well the two groups

get along.
Task structure: is the degree to which the leaders job is laid out in advance. Leader position power: is the authority vested in a leaders position.

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The Managerial Grid

-Addresses concern for production and Concern for people.
High 9

(1, 9)
Country Club Manager

(9,9)
Team Builder

Concern for People

(5,5)
Organization Man

(1,1)
Do-Nothing Manager
1 Low

(9,1)
Production Pusher
9 High
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1 Low

Concern for Production

The Managerial Grid

High 9

(1, 9) Country Club Manager

Thoughtful attention to needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere & work tempo.

Team Builder- (9,9)

Work accomplishment is from committed people; interdependence through a common stake in organization purpose leads to relationships of trust and respect.

Concern for People

(5,5) Organization Man

Adequate organization performance is possible through balancing the necessity to get out work while maintaining morale of people at satisfactory level.

(1,1) Do-Nothing Manager

Exertion of minimum effort to get required work done is appropriate to sustain organization membership.

Production Pusher -(9,1)

Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree.

1 Low

1 Low

Concern for Production

9 High

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Transformational vs Transactional Leadership

Transformational leaders are visionary agents who motivate people to do things differently. Ex. Lou Gerstner, head of IBM, has used his transformational leadership skills to bring the company back to its previous prominence. Transactional leaders exchange rewards for effort and performance.
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Transformational vs Transactional Leadership

Transformational Leader
Provides a vision & a sense of mission. Instill pride, respect, & trust in employees. Communicates high expectations and expresses purposes simply. Promotes rationality and careful problem-solving. Give employees individual attention, coaching, and advising. A courageous change agent. Able to deal with complexity, ambiguity, & uncertainty. Leads by example. A lifelong learner. (An innovator?)

Transactional Leader
Set goals and encourages employees to pursue them. Uses reward and punishment systems to generate compliance. Lets everyone know the objectives. (e.g. MBO) Interested in results rather than problemsolving process. Carefully spells out rewards for accomplishing objectives. Tends to support status quo. Avoids complexity and uncertainty by delegating responsibility to subordinates. Watches for mistakes/deviations from rules & regulations & then takes action. Relies on past knowledge to deal with future problems. (A systems engineer?)
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The Emerging Leadership Challenges

As the economy changes, so do the needs for leadership skills. Hiring qualified people and developing them through training are constant challenges. To meet the shortage of leaders, many firms are training their managers to develop leaders from their work groups. The new approach to leadership is to develop leaders instead of followers. (e.g. Acers internal executive programme to train & develop many future general managers)
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The Emerging Leadership Challenges (cont) Abilities and skills needed in the future leadership include being able to: Create a shared vision for everyone in the firm, Ensure customer satisfaction, Live the values that are critical to the company, Build internal teamwork and external partnerships, Think globally, appreciate cultural diversity, Develop and empower people,
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The Emerging Leadership Challenges (cont) Abilities and skills needed in the future leadership include being able to: Be able to anticipate opportunity (& risk), Learn how to achieve competitive advantage, Embrace change, share leadership, demonstrate personal mastery of the job, Show technological savvy, and Encourage constructive challenge.
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Key Terms in the session

Leadership Leadership characteristics Personal characteristics Trait theory Technical skills Human skills Conceptual skills Theory X Theory Y Authoritarian leadership Paternalistic leadership Participative leadership Laissez-faire leadership Leadership dimensions Fiedlers contingency model

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Key Terms in the session (contd.)

Least preferred coworker scale Leader-member relations Task structure Leader position power Managerial grid 1,1, Managerial style 9,1 Managerial style

1,9 Managerial style 5,5 Managerial style 9,9 Managerial style Transformational leader Transactional leader

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Questions:
1.Describe the Leadership and Personal Characteristics Related to Managerial Effectiveness--Trait Theory, Superior Intelligence, Emotional Maturity, Motivation Drive, Problem-Solving Skills, Managerial Skills, and Leadership Skills 2. Compare and Contrast Theory X and Theory Y 3.Distinguish Among Four Styles of Leadership Behavior Authoritarian, Paternalistic, Participative, and Laissez-Faire 4. Explain the Concept of Self-Leaders and the Basic Rules of Behavior 5. Describe the Two Major Dimensions of Leadership -Concern for People and Concern for Work 6. Distinguish among the Contingency Leadership ApproachesFiedlers Contingency Model, the Managerial Grid, & Transformational Leadership
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