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Meaning of Leadership

• Process of influencing people, understanding their needs and
aspirations, setting goals for them and facilitating them for
goals achievement.
• Leaders create followers by their far sightedness, knowledge
and sensitivity.
eg- Jack Welch of GE.
• As a property leadership is the set of characteristics attributed
to individuals who are perceived to be leaders.
• Three major constituents of leadership are People, Influence
and goals. Thus ability to influence people to achieve certain
goals. People component makes leadership a very important
concept in OB.
• Leadership is an intangible and a charismatic component
which some have and some don’t.
• A good leader is one who can make himself redundant.

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Leadership and Management

Manager Leader
• Creating an agenda- • Establishing direction-
Planning and Budgeting. Developing a vision of the
Establishing schedules of future and strategies
activities and timetables. needed to achieve the
• Involving people- vision.
Recruitment, selection and • Aligning people-
staffing the organization Communicating the
structure. organization’s goals to
• Executing plans- Setting employees and identify
standards, control and them with individual goals.
feedback and monitoring • Motivating and inspiring-
• Outcome- Goal Energizing people to
achievement, good overcoming all barriers.
performance, satisfied • Producing change- Dramatic
stakeholders. changes which change the
face of the organization.

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Coercion is limited to disciplinary actions.Referent power is abstract in nature.More the referent power more the status of a leader. recognition. emotional and physical More the coercive power less the leader respect. fines. • Referent power. The more important the information and lesser the access that people have to it the more the expert power. imitation. Copyright 2007 – Biz/ed . praise. firing Leadership and Power • Legitimate power. penalties. lay offs. Formal in nature. http://www.bized. • Coercive power.Derived from information and expertise. written reprimands.Other word for legitimate power is authority. But merely legitimate power does not make a manager a leader. • Expert power. loyalty and charisma.Refers to the power to give or withhold rewards. promotions. • Reward power.It is based on identification. Rewards like salary hikes.Power granted through the organizational hierarchy.Greater the rewards a manager holds and greater the importance of those for the employees more will be the manager’s reward power.The power to force compliance by means of psychological. All managers have a legitimate power over their subordinates.

2. 3. Motive was that if these set of traits were identified leaders could be identified. 4. 8. Traits are distinguishing personal characteristics of a person. Focus was to identify the traits that distinguished leaders from followers. traits and attributes possessed by leaders. But the approach was not Approaches to leadership • Traits approach (1900-1950s) 1. 5. Further studies were expanded beyond the confinement of traits. Identification of the characteristics. Based on the assumption that leaders are born not made. http://www. task related. Copyright 2007 – Biz/ed . Ultimately categorization was done on the basis of physical.bized. ability. personality. 6. social and social backgrounds traits.

bized. Two major factors of behavioral variables were identified. 6. Copyright 2007 – Biz/ed . http://www. 3. 5. How is the behavior of leaders different from that of non leaders. • Behavioral approach 1. University of Michigan. 4. They were TASK ORIENTED BEHAVIOR and EMPLOYEE ORIENTED BEHAVIOR. 7. Since behavior can be incorporated through training but traits cannot. Failure of traits studies led to the study of the behavioral approach 2. How does the behavior of leaders result in the accomplishment of the organizational goals.. Objective was to find out that what are the behavioral patterns of leaders. Three universities were studying these two variables. Ohio State University and University of Approaches to leadership contd. Leader member exchange theory and Path goal theory. 6. This model assumes that appropriate leader behavior varies from situation to situation. Leaders must develop flexibility to change their style according to the situation.. 3. Objective here was to identify the key situational factors which determine appropriate Approaches to leadership contd. Hersey and Blanchard’s theory. • Situational or Contingency approach 1. 2. Copyright 2007 – Biz/ed .bized. Fred Fiedler’s contingency theory. Match your leadership style with the appropriate situation. 4. Avoid situations where you are likely to fail. http://www.

• Employee centered leaders develop cohesive work group ensuring that employees are satisfied with their jobs. Primary concern is welfare of subordinates. University of Michigan • Researchers were led by Rensis Likert. explains the work procedures and are keenly interested in performance so it comes under not effective leader. Copyright 2007 – Biz/ed These leaders tend to be effective. • Basically tried to contrast the behaviors of leaders with non leaders by interviewing managers on one hand and workers on the other. • Took a one dimensional approach. • Classified leaders into effective and not effective. • Job centered leaders pay close attention to the subordinate’s work. • Identified two styles ie Job centered behavior and Employee centered behavior.

Exploitative-Authoritative (JOB CENTERED)(NOT PARTICIPATIVE) • System2. http://www. Extension in the form of Management by Objectives. • System1.bized.(EMPLOYEE CENTERED)(HIGHLY PARTICIPATIVE) • Introduced the concept of participative leadership.Consultative • Copyright 2007 – Biz/ed .uk University of Michigan • Studied these two types of behavior on the same continuum and devided the continuum from system 1 to system 4.Benevolent-Authoritative • System3.

uk Ohio State Studies • Ralph Stogdill developed the LBDQ( Leader Behavior Description Questionnaire). http://www. explicit schedules of work activities and formal lines of communication. time to time monitoring and regular measurement of performance. Copyright 2007 – Biz/ed . • Leaders using Initiating structure fall under the category of Task oriented • They identified two basic leadership behavioral variables or styles i. clear lines of authority and responsibility. They set clear goals. corrective steps.bized. INITIATING STRUCTURE and CONSIDERATION.

Show concern for the subordinate’s needs and aspirations. • Believe in fostering informal relations.bized. • Difference between Ohio and Michigan. Ohio analyzed leader behavior on a two dimensional Establish warm. • Initially it was presumed that a combination of (HI. • A leader could exhibit varying levels of Initiating structure and Consideration at the same time. Copyright 2007 – Biz/ed .unlike Ohio State Studies • Leaders using Consideration fall under the category of people oriented leaders. friendly and supportive climate conducive to performance. http://www. Personal touch in their dealings.HC) yields best results but later on evidence proved that performance depends on the interaction between behavior and situation. University of Texas • Given by Blake and Moutan through the explanation of Managerial Grid.bized. • Two behavioral variables identified were Concern for Production and Concern for People. • Places every manager according to his behavior at some point on the grid. • Concern for Production relates to Initiating structure and Job centered and Concern for people relates to Consideration and Employee centered Copyright 2007 – Biz/ed .

Impoverished management. 12-13 Copyright 2007 – Biz/ed . http://www.1).Team Blake and Mouton’s Managerial Grid • Draws on both studies to assess leadership style – “Concern for People” is Consideration and Employee- Orientation – “Concern for Production” is Initiating Structure and Production-Orientation • Style is determined by position on the graph • (1. E X H I B I T 12-1 © 2009 Prentice-Hall (9.Authority compliance.bized.1). (9. All rights reserved.9)- Country club. Copyright 2007 – Biz/ed .

Manager exerts little effort towards interpersonal relations or achievement of organizational objectives.bized. • (1.Where major focus is on building building relationships and primary concern is people. Carly Fiorina of HP. Eg.Herb Kelleher of Southwest Airlines. Eg.Not much importance is attached to people.AUTHORITY COMPLIANCE.Kenneth lay of Enron • (9.Where efficiency of operations is the dominating factor.But a low focus on tasks may give questionable results.Absence of management philosophy.Considered the most effective style where manager and organization members work together to accomplish the goals.1).co. Copyright 2007 – Biz/ed .Richard Branson of Virgin Group.1). Eg.COUNTRY CLUB.Focus on efficiency including elimination of people wherever necessary. http://www.IMPOVERISHED MANAGEMENT.Stan O Neal of Merryl Lynch.9). • ( Managerial Grid • (1.9)-TEAM MANAGEMENT. Eg.

Copyright 2007 – Biz/ed . 6. Robert House’s Path Goal Theory. Approach was to identify these situational factors which interact to determine leader behavior.. Leader member exchange theory.. 4. 2. • Situational Approach Appropriate leader behavior varies from situation to situation. Hersey and Blanchard Theory. 7. Fred Fiedler’s LPC Theory. 5. http://www. This theory believed that leaders are the product of a given situation. Approaches to leadership contd.bized.

CONTINGENCY THEORIES  All Consider the Situation – Fiedler’s Contingency Model – Cognitive Resource Theory – Hersey and Blanchard’s Situational Leadership Model – Path Goal Theory Assumptions underlying the different models: Fiedler: Leader’s style is fixed Other’s: Leader’s style can and should be changed .

options to accomplish this: – Select leader to fit situation – Change situation to fit leader . Fiedler Model  Leader: Style is Fixed (Task oriented vs. Relationship oriented)  Considers Situational Favorableness for Leader – Leader-member relations – Task structure – Position power  Key Assumption – Leader must fit situation.

or relationship- oriented.Fiedler’s Model: The Leader Assumption: Leader’s Style is Fixed & Can be Measured by the Least Preferred Co-Worker (LPC) Questionnaire Least Preferred Co-Worker (LPC) Questionnaire The way in which a leader will evaluate a co-worker that is not liked will indicate whether the leader is task. .

Fiedler’s Model: Defining the Situation Leader-Member Relations The degree of confidence. Position Power Influence derived from one’s formal structural position in the organization. trust. and give salary increases. promote. and respect subordinates have in their leader. Task Structure The degree to which the job assignments are procedurized. discipline. . includes power to hire. fire.

Findings of the Fiedler Model Good Task-Oriented Performance Relationship -Oriented Poor Favorable Moderate Unfavorable Category I II III IV V VI VII VIII Leader-Member Good Good Good Good Poor Poor Poor Poor Relations Task Structure High High Low Low High High Low Low Position Power Strong Weak Strong Weak Strong Weak Strong Weak .

• R1 fits into S1. R2 into S2. • Introduced a new dimension of measuring leader effectiveness ie follower’s readiness. Copyright 2007 – Biz/ed . • Follower readiness refers to the behavior of Hersey and Blanchard’s situational theory • Given by Paul Hersey and Kenneth Blanchard. • Identified highly directive to a Laissez. their attitude towards work and willingness to take responsibility. • Most effective leader behavior depends on the ability and willingness level of the followers to assume responsibility. • Essence was that leadership style gets influenced by the characteristics of the group to be led. R3 into S3 and R4 into S4. http://www. • Regardless of what leader does effectiveness depends on action of the • Variables identified were Task behavior and Relationship behavior.bized.faire approach. Copyright 2007 – Biz/ed .

• Leader Behavior. • Rewards play a very important role. • Role of leader is to ensure that path to goals is clearly understood.Leader Behavior and Situational factors. • Situational factors involve: Characteristics of subordinates and Environmental characteristics.bized.Directive. Supportive. http://www. support and resources to help followers achieve the goals. Participative and Achievement Path goal theory • Given by Robert House. • Leaders to provide information. • Builds from the Expectancy theory of Copyright 2007 – Biz/ed . • Help clarify the path and to make valued and desired rewards available at the workplace. • Identified two variables. Path-Goal Model • Two classes of contingency variables: – Environmental are outside of employee control – Subordinate factors are internal to employees © 2009 Prentice-Hall Inc. 12-25 Copyright 2007 – Biz/ed . All rights reserved. http://www.bized.

http://www. leaders form a special relationship with a small group of followers: the “in-group” – This in-group is trusted and gets more time and attention from the leader (more “exchanges”) – All other followers are in the “out-group” and get less of the leader’s attention and tend to have formal relationships with the leader (fewer “exchanges”) – Leaders pick group members early in the relationship – In group members have higher level of satisfaction and Leader Member Exchange Theory • LMX Premise: – Because of time pressures. – Each leader follower relationship is referred to as the “vertical dyad”. Copyright 2007 – Biz/ed .co.bized.

uk LMX Model © 2009 Prentice-Hall Inc. http://www. 12-27 Copyright 2007 – Biz/ed .co.bized. All rights reserved.

where lines of communications are absolutely formal. where reward structure is pre determined and rigid. • Concept of substitutes was introduced because the above theories did not account for all those situations where leadership becomes neutral. where the followers are able and Substitutes for leadership • Leadership has been a concept of a number of researches and lot of studies.bized. Copyright 2007 – Biz/ed . http://www. • Where the task is structured. Charismatic Leadership • Assumes charisma as an individual trait of a leader. • All else being equal someone with more of charismatic personality is likely to exert more influence on followers. • A form of aura and attraction which inspires support and acceptance. firm conviction in their beliefs and ideals and the strong influence to align the followers goals with organizational goals. Copyright 2007 – Biz/ed . • Charismatic leaders have lot of self confidence. • Proposed by Robert House in 1977.

Copyright 2007 – Biz/ed . • Increasingly becoming important in today’s turbulent business environment. http://www. • Focused on bringing about transformational changes in organization by building vision.bized. stimulating learning experiences and inspiring new ways of • Eg. Restructured the entire firm. securing commitment and empowering people.Carly Fiorina of HP. • Goes beyond the exchange inducements of desired Transformational Leadership • Leadership that goes beyond ordinary expectations by transmitting a sense of mission.