Leadership in Organizations

Your Syllabus
LEADERSHIP Leadership and management

Perspectives on leadership: Trait, Behavioural, and Contingency Transactional vs. transformational leadership vs. charismatic leadership Leaders and mentorship

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Leaders and Managers

Leaders primarily are responsible for establishing an organizational mission, whereas managers primarily are responsible for implementing that mission through others. The intermediate steps formulating a strategy for the mission and increasing peoples commitment toward it tend to be performed by either leaders or managers. It is these overlapping functions that make the distinction between leaders and managers blurred in actual practice.

Leadership Theories
1.

First researchers looked at TRAITS

Are leaders different from others?

2.

Next to BEHAVIOURS
Do leaders behave in particular ways?

3.

Then to SITUATIONS

The view that leaders possess special traits that set them apart from others and that these traits are responsible for their assuming positions of power and authority.

Trait Perspective of Leadership

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Trait Theories of Leadership

Leadership Traits:

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders.

Ambition and energy The desire to lead Emotional Stability & Maturity Honesty and integrity Self-confidence Intelligence Job-relevant knowledge Power, Achievement & Affiliation Motivation

Source: Stephen Robbins, Organizational Behavior

Leadership Characteristics

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Leadership Style
An approach to leadership describing the ways in which leaders allocate influence to subordinates. This ranges from controlling everything (autocratic) to allowing others to make decisions for themselves (delegating). Between these two extremes are more participative forms of leadership consulting and make joint decisions.

Autocratic Persuasive Democratic

Consultative
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Leadership Skills
Administrative

Skills
Skills

Communication Interpersonal

Skills

Conceptual

Skills

BEHAVIOURAL PERSPECTIVE OF

LEADERSHIP

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Behavioral Theories
Theories proposing that specific behaviors differentiate leaders from non-leaders.
Trait theory: Leaders are born, not made. Behavioral theory: Leadership traits can be taught.

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Behavioral Theories
Propose that specific behaviours differentiate leaders from others 1. Initiating Structure
This indicates a concern about defining the roles ir relationships within an organization, establishing well defined norms of organizations, channels of communication, and ways of getting a job done, and trying out new ideas and practice.
e.g., task-orientation, work-orientation, production-orientation

2. Consideration
1. This indicates friendship mutual trust, respect, and worth. A leader with this kind of behaviour is likely to be friendly and approachable, and likely to have a good rapport with subordinates.
employee needs and concerns
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3. Examples

The Behavior Approach

Initiating Structure and Consideration are complementary and independent behaviors. Why complementary? Because leaders can engage in both types of behaviors. Why independent? Because knowing the extent to which a leader engages in consideration says nothing about the extent to which he or she engages in initiating structure and vice versa.

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Criticisms of the Behavior Approach

The relationship between leader behaviors and subordinate performance and satisfaction are not necessarily clear-cut. The behavior approach ignores the situation in which leadership takes place.

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Ohio State Studies

Research at Ohio University identified consideration and initiating structure as the dimensions of leadership behaviour

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University of Michigan Studies

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Scandinavian Studies

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Dimensions of Leader Behavior

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The Managerial Grid

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The Managerial Grid explained

Country Club Leadership - High People/Low Production

This style of leader is most concerned about the needs and feelings of members of his/her team. These people operate under the assumption that as long as team members are happy and secure then they will work hard. What tends to result is a work environment that is very relaxed and fun but where production suffers due to lack of direction and control.

Produce or Perish Leadership - High Production/Low People

Also known as Authoritarian or Compliance Leaders, people in this category believe that employees are simply a means to an end. Employee needs are always secondary to the need for efficient and productive workplaces. This type of leader is very autocratic, has strict work rules, policies, and procedures, and views punishment as the most effective means to motivate employees.

Impoverished Leadership - Low Production/ Low People

This leader is mostly ineffective. He/she has neither a high regard for creating systems for getting the job done, nor for creating a work environment that is satisfying and motivating. The result is a place of disorganization, dissatisfaction and disharmony.

Middle-of-the-Road Leadership - Medium Production/Medium People

This style seems to be a balance of the two competing concerns. It may at first appear to be an ideal compromise. Therein lies the problem, though: When you compromise, you necessarily give away a bit of each concern so that neither production nor people needs are fully met. Leaders who use this style settle for average performance and often believe that this is the most anyone can expect.

Team Leadership - High Production/High People

According to the Blake Mouton model, this is the pinnacle of managerial style. These leaders stress production needs and the needs of the people equally highly. The premise here is that employees are involved in understanding organizational purpose and determining production needs. When employees are committed to, and have a stake in the organization's success, their needs and production needs coincide. This creates a team environment based on trust and 20 respect, which leads to high satisfaction and motivation and, as a result, high production.

Likerts Systems Styles of Leadership

S1
Exploitive Authoritative

S2
Benevolent Authoritative

S3
Participative

S4
Democratic

Likerts Systems of Leadership

Exploitive Authoritative
No confidence or trust in subordinates Motivated by physical security, economic needs and desire for status Decisions made at the top Issues orders

Benevolent Authoritative
Condescending confidence and trust in subordinates Motivated by economic needs and moderately by desire for status Decisions made at all levels, always checked by upper level Orders issued but with comment opportunities

Likerts Systems of Leadership

Participative
Substantial but not complete confidence and trust in subordinates Quite a bit of interaction aimed at achieving objectives Broad policy decisions at top, specific decisions at lower levels Orders issued after discussion with subordinates

Democratic
Complete confidence and trust in subordinates Interaction with individuals and groups are high Decision making widely done throughout organization Except in emergencies, goals are usually established through group participation

Contingency Perspective of Leadership

Contingency Theories
Any of several theories that recognize that certain styles of leadership are more effective in some situations than others. Theories include
LPC Contingency Theory Situational Leadership Theory Path-Goal Theory Normative Decision Theory Substitutes for Leadership
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LPC Contingency Theory

A theory suggesting that leader effectiveness is determined both by the competency of the leader and by the situation. LPC: Short for esteem for least preferred coworker, a personality variable distinguishing individuals with respect to their concern for people (high LPC) and their concern for production (low LPC). Situational determinants of effectiveness:
Leaders relations with group members Degree of structure in the task being performed Leaders position power

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LPC Contingency Model

Fiedlers Least Preferred Coworker Scale

Source: Fred E. Fiedler, A Theory of Leadership Effectiveness (New York: McGraw-Hill, 1967), p. 41.

Contingency Models of Leadership

Situational favorableness: The appropriate leadership style depends on the combination of three contingency variables.

Source: Adapted from Robbins, 2003

Contingency Theories of Leadership

Fiedlers LPC Theory Research Conclusions

Source: Adapted from Robbins, 2003

LPC Contingency Theory

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Situational Leadership Model

Emphasizes matching a style of leadership with the maturity of the subordinates

Maturity = Job Maturity + Psychological Maturity

Different styles explained .

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Advice to Managers

Do not expect leaders to change their leader style from task-oriented to relationship-oriented or vice versa. Assign task-oriented leaders to very unfavorable or to very favorable situations. Assign relationshiporiented leaders to moderately favorable situations. If you or one of your subordinates is a relationshiporiented leader in a very unfavorable situation, try to increase the favorability of the situation by improving leader-member relations, increasing task structure by clarifying goals or ways to achieve goals, or raising levels of position power.
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Path-Goal Theory of Leadership

The Path-Goal Theory of Leadership was developed to describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy. In particular, leaders:
Clarify the path so subordinates know which way to go. Remove roadblocks that are stopping them going there. Increasing the rewards along the route.

Expectancy Theory

Determinants of Motivation
Expectancy: The belief that ones efforts will

positively influence ones performance.

Instrumentality: An individuals beliefs regarding the

likelihood of being rewarded in accord with his or her own level of performance.
Valence: The value a person places on the rewards

he or she expects to receive from an organization.

Other Determinants: Skills and abilities, Role

perceptions, opportunities to perform

Path-Goal Theory

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Path-Goal Theory
A theory of leadership suggesting that subordinates will be motivated by a leader only to the extent they perceive this individual as helping them to attain valued goals. Four basic leadership styles:
Instrumental (directive): An approach focused on providing specific guidance and establishing work schedules and rules. Let followers know what is expected, schedule work for them, give specific guidance Supportive: A style focused on establishing good relations with subordinates and satisfying their needs. Be friendly and show concern for needs of followers Participative: A pattern in which the leader consults with subordinates, permitting them to participate in decisions. Consult with followers and use their suggestions to make decisions Achievement Oriented: An approach in which the leader sets challenging goals and seeks improvements in performance. Set challenging goals and expect followers to perform at their highest Copyright 2003, Prentice Hall levels

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Path-Goal Contingencies
Employee Contingencies
Skill/Experience Locus of Control
Directive Supportive Participative Achievement
low external low external high internal high internal

Environmental Contingencies
Task Structure Team Dynamics

Directive Supportive Participative Achievement

nonroutine neg. norms routine low cohesion nonroutine pos. norms ? ?

Contingency Theories of Leadership

Predictions

from path-goal theory

Directive leadership will lead to greater satisfaction when tasks are ambiguous or stressful Supportive leadership results in high performance and satisfaction when employees are performing structured tasks Directive leadership is likely to be perceived as redundant among employees with high perceived ability or considerable experience Employees with an internal locus of control will be more satisfied with a participative style Achievement-oriented leadership will increase employees expectancies that effort will lead to high performance when tasks are ambiguously structured
Source: Adapted from Robbins, 2003

Substitutes for Leadership

The view that high levels of skills among subordinates or certain features of technology and organizational structure sometimes serve as substitutes for leaders, rendering their guidance or influence superfluous. Examples:
Individual characteristics such as a high level of knowledge, commitment, or experience on the part of subordinates. Jobs that are structured in ways that make direction and influence from a leader redundant. Characteristics of organizations such as work norms, group cohesion, and technology.

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Normative Decision Theory

A theory of leader effectiveness focusing primarily on strategies for choosing the most effective approach to making decisions.

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Decision Rules - Quality

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Decision Rules - Acceptance

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Normative Decision Theory

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Charisma
Charisma is a rare personal quality attributed to leaders who arouse fervent popular devotion and enthusiasm.

Source: Adapted from Robbins, 2003

Charismatic Leadership

Charismatic Leaders
Qualities of Charismatic Leaders
Self-confidence A vision Extraordinary behavior Recognized as change agents Environmental sensitivity

Reactions to Charismatic Leaders

Above-normal levels of performance High levels of devotion, loyalty, and reverence toward the leader Enthusiasm for and excitement about the leader and his or her ideas In general, reactions tend to be highly polarized people either love
them or hate them

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Transactional vs. Transformational Leadership

Transactional leadership
Leaders who favour this style create defined structures, including a clear chain of command. They work on the assumption that once a deal is struck between boss and subordinate, all authority passes on to the former, while responsibility rests with the latter.

Transformational leadership
Leaders are truly transformational when they increase the awareness of what is right, good, important and beautiful, when they help to elevate followers needs for achievement and self realization

Characteristics of Transformational Leaders

Intellectual

Stimulation: Transformational leaders help their followers recognize problems and ways of solving them. Individualized Consideration: Transformational leaders give their followers the support, encouragement, and attention they need to perform their jobs well. Inspirational Motivation: Transformational leaders clearly communicate the importance of the companys mission and rely on symbols (e.g., pins and slogans) to help focus their efforts.
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Leaders as Mentors

Mentor
This is the term used to describe a favourite teacher, a wise master, an insightful friend, an experienced educator, a seasonal guide, or a guru.

Mentoring
The concept of mentoring relates to mental and emotional support and guidance given usually by an older person to a younger one, who is called a protg.
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THANK YOU

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