Leadership

A leader is a person who establishes vision, sets goals, motivates people & obtains their commitment to achieve the goals & realize the vision

Why Leadership is Important?
• For crisis situations • For organizational performance • For employee job satisfaction • For successful management

Why Leadership is Important
• “--- the performance of the managerial leadership determines the success or failure of the organization.” Peter Drucker • Poor leadership leads to failure, and good leadership to success.

Textbook’s Definition of Leadership
Leadership is the influencing process of leaders and followers to achieve organizational objectives through change

Are All Leaders Managers? • Manager = formal title and authority • Leader = person (manager or nonmanager) with influence • Follower = person influenced by a leader .

Influence • Managers may influence through coercion • Leaders influence by gaining followers’ commitment and enthusiasm .

Key Elements of Leadership Influence Leaders– Followers Change Organizational Objectives People Leadership .

Are Leaders Born or Made? • • • • Some are born with natural ability and develop it Some are developed through effort and hard work All people have potential leadership skills Organizations spend millions every year to develop leadership skills of their employees .

Management Use of authority inherent in designated formal rank to obtain compliance from organizational members.What Is Leadership? Leadership The ability to influence a group toward the achievement of goals. .

Leaders vs. Managers  LEADERS:   MANAGERS:          innovate focus on people inspire trust have a long-range view ask what and why have eyes on horizon      originate challenge status quo do the right thing    administrate focus on systems and structures rely on control have a short-range view ask how and when have eyes on bottom line initiate accept status quo do things right .

large body structures and personal attractiveness Certain Factors Initiative. analytical ability and knowledge of the specific company.Traits of Effective Leaders (Distinguishing Leaders from Non-Leaders) Researchers View  Cognitive and psychological factors like intelligence. This shall be supplemented with charisma. creativity and flexibility. ambition and aggressiveness are common  Physical characteristics like height. industry or technology. desire to lead. . integrity. self-confidence.

Effective Leader • Invest time in building & maintaining relationship • Strengthen relationship by helping to reach personal goals. • Ignore negative aspects • Do not look for immediate results from relationship • Recognize individuals are different • Encourage to unlock talents • Ignore criticism .

Leadership Skills • Technical skills Knowledge & ability to make effective use of any process or technique • Human skills Ability to cooperate with other members of the organization & work effectively in teams • Conceptual skills Ability to analyze complex situations & to rationally process & interpret available information .

Levels of Management and Skills C TT ET TOP O N C E H U M A N E C H C N H I C L MIDDLE P T U A L N LOWER A .

.TRAIT THEORIES •Early explanations of leadership focused on the notion that leaders possess certain personality characteristics that set them apart from ordinary people •Great leaders are described as being “charismatic” or having “social intelligence”.

self-confidence. high levels of energy.Trait Theories • Great Person Theory leadership traits can be acquired with training & experience • Leaders are born & not made • Possess some personality traits that are unique & essential for effective leadership • The only trait found common to all leaders was “intelligence” • Some general characteristics – ambition. desire to lead. intelligence & job relevant knowledge . integrity. honesty.

. • How leaders behave seems more important than who they are.Behavioral Theories •Leadership is not a quality that people possess independent of the situations in which they come to lead.

The Ohio State Studies • The Leader Behavior Description Questionnaire • Wanted to identify the different independent dimensions along which an individual’s leadership behavior could be studied • 2 dimensions – Initiating Structure (ability to define his own as well as the subordinate’s tasks & get it accomplished on time) – Consideration (extent to which a leader cares for his subordinates. respects their ideas & feelings and establishes work relations which are characterized by trust & respect – People who scored high on both were able to achieve higher levels of performance & job satisfaction .

University of Michigan Studies • Found that leadership behaviors could be categorized along 2 dimensions – Employee.oriented (importance of interpersonal relations) – Production oriented (concerned with tasks & goals) – Employee oriented leaders achieve higher job satisfaction & higher group productivity .

1.9. 1. 5.• • • • • The Managerial Grid Blake & Mouton 2 dimensional matrix model of leadership styles Consists of 9 rows & 9 columns Rows represent leaders concern for production.9 .1.5 & 9. 9. while columns represent the concern for people Found 5 intersections – 1.

Managerial Grid (Blake & Mouton. 1964) 9 8 Concern for people 7 6 1.1 8 9 2 3 4 5 6 7 Concern for production .5 Middle-of-the-road Management Impoverished Management 1.9 Country Club Management 9.1 1 2 1 AuthorityCompliance 9.9 Team Management 5 4 3 5.

9 – Country Club Management High concern for people.1 – Impoverished Management Exhibit no concern for people or work Often fail as leaders • 1.9 – Team Management High concern for both people & production • 5. low concern for people • 9. low concern for production • 9.1 – Authoritarian style of leadership High concern for production.5 – Middle of the Road Management .• 1.

Scandinavian Studies • New dimension called Development Oriented Behavior • Experiment with ideas & practices and embrace change • Subordinates consider development oriented leaders to be more competent than non-development oriented leaders • The subordinates of development oriented leaders showed higher levels of job satisfaction .

• Leaders have to change their style depending on the situation they face • Suggests that a leader should analyze the nature of the situation carefully before deciding on the style of leadership to be adopted • Question: How do the demands of the situation fit with different leadership styles? .Contingency Approaches • Different situations create different demands that are differently suited to different types of leaders.

When the context or situation in which leadership is exhibited changes. in order to be effective . leaders should be capable of adapting their behaviors to meet the demands of the changed situation.

Fiedler’s Contingency Theory • Appropriate style of leadership depends on whether the overall situation is favorable or unfavorable to the leader • Parameters: – Leader-member relationships – Degree of task structure – The leader’s position .

Situational Variables & Combinations LMR TS LP G H S G H W G G L L P H P H W P L S P L W S W S HF TASK MF RELATIONSHIP HU TASK .

Task Directed Style of leadership Human relations Approach Very Unfavorable Very + Favorable .

Hersey & Blanchard’s Situational Theory • Situational leadership/ Life cycle model • Ability of an employee to carry out a particular task & the extent to which he is motivated to perform the task (competence & commitment) • 4 types –Telling –Selling –Participating –Delegating • Emphasizes the subordinates capabilities & willingness to undertake a specific task .

Hersey and Blanchard’s Situational Theory Relationship behavior (amount of support required) High Participating Selling Delegating Low Low Telling High Task behaviors (direct behavior) .

leaders often act differently towards different subordinates – LMX • Leaders establish a special relationship with a small group of subordinates. usually early in their interaction – in group • Rest – out group .Member Exchange Theory (LMX) • Traditional theories assume that leaders treat all employees alike • George Green & Mitchell in 1979 .Leader.

give them more attention.Higher level of competence & extraversion .Lower turnover .Receive high performance ratings – rewards & promotion .group.• Leaders trust the subordinates who belong to the in. interact with them frequently & offer them special privileges • Generally favor people who have attitudes & personality characteristics that are similar • In-group .

Leader-Member Exchange Theory (LMX) Personal compatibility and/or subordinate competence Leader Trust High interactions Formal relations Subordinate A Subordinate B Subordinate C Subordinate D Subordinate E Subordinate F In-Group Out-Group FIGURE 5: Leader-Member Exchange Theory .

Victor Vroom & Philip Yetton – Relationship between leadership behavior & style of decision making • Provides a sequential set of rules that can be followed for ascertaining the type & amount of participation required in decision making in different situation • Decision tree with 7 contingencies & 5 alternatives leadership styles .Leadership Participation Model • In 1973.

congruence of goals & conflict among the employees . information availability & nature of problem structuring – Employee Acceptance • Dimensions like need for commitment.• Vroom & Arthur Jago – 12 Contingencies or Problem Attributes – Should assess a situation in terms of its problem attributes • Broadly classified the 12 problem attributes into: – Decision Quality • Cost considerations.

indirectly gets data but no say c. Autocratic II (A-II). Leaders have the willingness & capability to adapt their styles to suit the situation 3. Group II (G-II) solve using GD • Model is based on 3 important assumptions: 1. Leaders can classify problems precisely by following the decision tree format 2. Employees accept the leader’s classification of the situation & the changes in his leadership style from situation to situation.Leadership Styles a.only takes suggestions d.no say at all b. Consultive I (C-I). Consultive II (C-II) may or may not have say e. . Autocratic I (A-I).

support & rewards .Path – Goal Theory • Robert House • Borrows from Ohio & Expectancy Theories • Leader should provide the required support & guidance to his followers & help them achieve organizational goals • Should establish individual/ group goals for employees that are compatible with the broad organizational goals • The behavior of a leader is acceptable as long as : – The subordinates find that the satisfaction of their needs depends on their effective performance – They are provided with guidance.

PATH-GOAL THEORY .

• 4 types of leadership a. Directive Supportive Participative Achievement. c. b.Oriented • Depends on: – Environment factors – Personal characteristics of the subordinates . d.

Path-Goal Theory .