Topic 7Topic 7

Understanding Leadership in a Dynamic Environment

Leadership Defined

A responsibility and a process that is an observable, understandable, learnable set of

skills and practices available to everyone, anywhere in the organization.

What is leadership

The process of directing and influencing the task-related activities of group members

Leadership DefinedA responsibility and a process that is an observable, understandable, learnable set of skills and practices available to everyone, anywhere in the organization.

Implications of leadership1.Leadership involve other people2.Leadership involve an unequal distribution of power3.Leaders can influence subordinates in a variety of ways

The importance leadership

• 1.To direct and supervise subordinates• 2.To influence and motivates

subordinates• 3.To encourage teamwork• 4.To enhance cooperation• 5.To accomplish org objectives

Approaches to the study on leadership

1. Leader centered approach

2. Follower centered approach

3. Interactive approach

Leader-Centered Approaches1. Trait focus2. Behavior focus3. Power focus

1.

Leader-Centered Approaches

• Trait Focus– The assumption that some people are

endowed with certain physical characteristics (e.g., height, appearance), aspects of personality (e.g., self-esteem, dominance, emotional stability), and aptitudes (e.g., general intelligence, creativity).

The Trait Approach To Leadership

• 1.Assumed that leaders were born and not made.

• 2.Researchers took two approaches :• i) Compare the traits of leaders and non

leaders• ii) Compare the traits of effective leaders

and ineffective leaders• 3.Examples of desirable traits include

wisdom, courage, honesty and sincerity.

The Trait Approach To Leadership• 4.Examples of traits compared include

physical characteristics, mental ability, charisma, attitude

• 5.However the trait theory is inconclusive because of many conflicting evidence.

Leader-Centered Approaches• Behavior Focus– Examines what effective leaders do rather than what

effective leaders are.• Behavioral Models– Define a leader’s effectiveness based on two orientations:• Task orientation - Setting performance goals, planning

and scheduling work, coordinating activities, giving directions, setting standards, providing resources, and supervising worker performance.• Relations orientation - A behavior that shows empathy

for concerns and feelings, being supportive of needs, showing trust, and similar attributes.

The Behavioral Approach To Leadership

• Assumes that leadership can be learned

• Focused on two aspect of leadership behavior :

• i) Leadership function• ii) Leadership style

Leadership Function• A leader performs two major functions:• a) Task related or problem solving

functions• b) Group maintenance or social functions.

Leadership styles• a) Task oriented styles - focus on closely

supervise subordinates• b) Employee oriented styles - Focus on

motivating rather than controlling subordinates

The Ohio State University Studies• Researchers at OSU uses two variables:• a) Initiating structure• b) Consideration• They found that the most effective

leadership styles is High consideration.• However the researchers also found that

effective leadership style also depend on situational factors. For example Air force commanders who were rated high on consideration were less effective

University Of Michigan Studies

• Distinguished between Production centered and Employee centered managers• Found that the most effective

leadership style is the Employee centered.

The Managerial Grid• Developed by Robert Blake and Jane Mouton• Identifies five types of leadership styles :• 1. Style 1,1- Impoverished mgt. Low concern for both

people and production. Also known as Laissez-faire management.

• 2.Style 1,9 - Country club mgt.High concern employees but low concern for production

• 3.Style 5,5 - Middle of the road mgt• Intermediate concern for both production and

employees.• 4.Style 9,1 - Autocratic mgt. High concern for

production but low concern for people.• 5.Style 9,9 -Team or democratic mgt. High concern for

both production and employees.This is the most effective style.

Likert System Four Management• Developed by Rensis Likert• Proposed that there are four types of management

styles:• 1. Autocratic authoritative - Mgt make all decisions.

Subordinates do not have any rights to contribute ideas.

• 2.Benevolent Authoritative - Subordinates are given some latitude to contribute ideas but mgt still makes the final decisions.

• 3.Consultative- Subordinates contributions are encourage.

• 4.Participative - Team or democratic styles

•

Leader-Centered ApproachesSlide 4 of 4

• Power Focus– The ability to marshal human, informational, or

material resources to get something done.

• Two Categories of Power– Position power: Power derived from the

opportunities inherent in a person’s position in an organization.

– Personal power: Power derived from the interpersonal relationships between leaders and followers.

Forms of Position Power• Legitimate Power– Power that stems from formal authority.– Some people accept this power, as long as it is

not abused, because they attribute legitimacy to the formal position and to the person who holds that position.

• Coercive Power– The power to discipline, punish, and withhold

rewards.– Coercive power is important largely as a

potential, rather than an actual, influence.

Forms of Position Power– For example, the threat of being disciplined for

not getting to work on time may be effective in changing an employee’s behavior.

• Reward Power– Derived from control over tangible benefits, such as a

promotion, a better job, a better work schedule, or some form of recognition.

– For reward power to be influential, the employee must value the rewards.

• Information Power– Control over information that involves the leader’s

power to access and distribute information that is either desired or vital to others.

Forms of Personal Power• Expert Power– The power to influence another person

because of expert knowledge and competence.– Computer specialists often have substantial

expert power in organizations because they have technical knowledge that others need.

• Referent Power– The ability to influence others based on

personal liking, charisma, and reputation. It is manifested through imitation or emulation.

– Much of the power wielded by strong political leaders, professional athletics, musicians, and artists is referent power.

Power Orientation• Personalized Power Orientation– Associated with a strong need for esteem and

status; power is often used impulsively.• Socialized Power Orientation– The use of power for the benefit of others to

make subordinates feel strong and responsible.

Follower-Centered Approaches• 1.Self-Leadership Focus• 2.Leadership substitutes

Follower-Centered Approaches

• Self-Leadership Focus– Self-leadership, sometimes referred to as

followership, is a paradigm founded on creating an organization of leaders who are ready to lead themselves.

Characteristics of self-leadership

• 1.Capacity to motivate themselves• 2.Loyalty to the organization• 3.Stay focus on tasks• 4.Understanding of the org• 5.Willingness to take the initiative• 6.Skilfulness and flexibility• 7.Responsible for their actions

Leadership substitutes• Variables that tend to outweigh or

prevents the leader from having an effect on a follower performance.

• Also known as Neutralizer. Three major variables of Leadership

substitutes• 1. Individual characteristics• 2.Task characteristics• 3.Organizational characteristics.

Follower-Centered Approaches

Leadership Substitutes

Individual characteristics

Experience

Training

Ability

Professional orientation

Indifference to organizational rewards

Follower-Centered Approaches

Leadership Substitutes

Task characteristics

Degree of intrinsic satisfaction

Degree of repetitiveness

Degree of structure or feedback

Follower-Centered Approaches

Leadership Substitutes

Organizational characteristics

Degree of formality

Degree of flexibility

Amount of cohesiveness

Independence of reward structure

Degree of spatial distance from manager

Interactive Approaches

• Interactive Approaches– Another method of examining leadership

effectiveness is to look at how leaders interact with their followers.– The three approaches covered:• Situational leadership model• Empowerment• Transformational leadership

Interactive Approaches

• Situational Leadership Model– Examines the interaction between leadership

behavior, the situation, and the follower’s readiness.• Readiness - The extent to which a subordinate

possesses the ability and willingness to complete a specific task.• Task behavior - The extent to which a leader organizes

and defines the role of followers by explaining what each person must do and when, where, and how tasks are to be accomplished.

Interactive Approaches

• Situational Leadership Model– Four styles of leadership behavior:• Telling style - The leader provides specific instructions

and closely supervises performance.• Selling style - The leader explains decisions and

provides opportunities for clarification.• Participating style - The leader shares ideas and

maintains two-way communication to encourage and support the skills subordinates have developed.• Delegating style - The leader provides the

subordinates with few task or relations behaviors.

Hersey and Blanchard’s Situational leadership theory(life-cycle theory)

• 1.Formulated by Paul Hersey and Kenneth Blanchard

• 2.Hold that the most effective leadership style varies with the “maturity” of subordinates.

• 3.Maturity is not define in terms of age or emotional stability but a desire for achievement, etc

Stage 1 - Telling Stage• High Task – A directive leadership is needed. A

non directive leader will create anxiety and confusions among new workers

• Low relationship – Managers and subordinates are in the process of knowing each other.

Stage 2 - Selling Stage• High Task – Detail instructions is still essential

because subordinates are not yet able to function without the structure

• High Relationship – Subordinate need the support and encouragement from the leader

Stage 3 - Participating Stage• Low Task - Subordinates have more

ability.Therefore the leader will no longer need to be as directive.

• High Relationship – The leader will still have to be supportive.

Stage 4 - Delegating Stage• Low Task, Low Relationship• Subordinates become more confident, self

directing and experienced.• Followers no longer need direction.They

are on their own.

Interactive Approaches• Empowerment– The interaction of the leader giving away or sharing

power with those who use it to become involved and committed to independent, high-quality performance.

– Successful empowerment means that everyone has been convinced that he or she makes a difference to the success of the organization.

• Transformational Leadership– The interaction process of the leader’s behavior and

attitudes with the attitudes and behaviors of followers.

e.g Leaders promotes innovation and creativity and subordinates should try new approaches.

The Path-Goal Approach To Leadership

• 1.Formulated by Martin Evans and Robert House

• 2.Based on the Expectancy Model• 3.Focuses on the leader as a source of

rewards.I.e Managers must clarify the availability of rewards and what subordinates must do to earn them.

Four Leadership Styles Based On The Path Goal Theory

• 1.Directive- Provide detail instructions and guidelines

• 2.Supportive- Show concern for the needs of subordinates

• 3.Participative• 4.Achievement oriented – influence

subordinates to have a strong need for success

What is the situational approaches to leadership?

• The situational approaches to leadership focuses on the situational factors influencing managerial style.

• It assumes that there is no one best leadership style .I.e effective leadership depends on situational factors

Situational Factors in Leadership Effectiveness

• 1.The leader’s personality, past experiences and expectations.

• 2.The expectations and behavior of superiors• 3.Subordinate’s characteristic, expectations and

behaviors• 4.Task requirements• 5.Organizational culture and policies• 6.Peers expectation and behavior

Interactive Approaches

Primary Dimensions of Transformational Leadership

Dimension Leader’s Specific Behavior Follower’s Behavior

Individualize Consideration

Intellectual Stimulation

Mentors; is attentive to achievement and growth needs

Is motivated, feels valued

Promotes innovation and creativity; reframes problems

Is encouraged to be novel and try new approaches

Interactive Approaches

Primary Dimensions of Transformational Leadership

Dimension Leader’s Specific Behavior Follower’s Behavior

Inspirational Motivation

Idealized Influence

Provides meaning and challenge through prosocial, collective action

Is aroused by team spirit; enthusiastic; optimistic

Shares risks; is considerate of others over own needs; is ethical and moral

Shows admiration; respect; trust

Leader-Centered Approaches• Leader-Centered Approaches– Focus on traits, leader behaviors, and power.

• Trait Focus– The assumption that some people are

endowed with certain physical characteristics (e.g., height, appearance), aspects of personality (e.g., self-esteem, dominance, emotional stability), and aptitudes (e.g., general intelligence, creativity).

• Behavior Focus– Examines what effective leaders do rather than

what effective leaders are.

Leader-Centered Approaches• Trait Focus (cont.)– According to “trait” focused research, successful leaders

tend to possess the following traits:• Drive, motivation, honesty and integrity, self-

confidence, conceptual ability, and business knowledge.

• Behavioral Models– Define a leader’s effectiveness based on two

orientations:• Task orientation - Setting performance goals, planning

and scheduling work, coordinating activities, giving directions, setting standards, providing resources, and supervising worker performance.

Leader-Centered ApproachesRelations orientation - A behavior that shows empathy for concerns and feelings, being supportive of needs, showing trust, and similar attributes.

• Power Focus– The ability to marshal human, informational, or

material resources to get something done.• Two Categories of Power– Position power: Power derived from the

opportunities inherent in a person’s position in an organization.

– Personal power: Power derived from the interpersonal relationships between leaders and followers.

Forms of Position Power• Legitimate Power– Power that stems from formal authority.– Some people accept this power, as long as it is not

abused, because they attribute legitimacy to the formal position and to the person who holds that position.

• Coercive Power– The power to discipline, punish, and withhold rewards.– Coercive power is important largely as a potential, rather

than an actual, influence.– For example, the threat of being disciplined for not

getting to work on time may be effective in changing an employee’s behavior.

Forms of Position Power• Reward Power– Derived from control over tangible benefits,

such as a promotion, a better job, a better work schedule, or some form of recognition.

– For reward power to be influential, the employee must value the rewards.

• Information Power– Control over information that involves the

leader’s power to access and distribute information that is either desired or vital to others.

Forms of Personal Power• Expert Power– The power to influence another person because of

expert knowledge and competence.– Computer specialists often have substantial expert

power in organizations because they have technical knowledge that others need.

• Referent Power– The ability to influence others based on personal

liking, charisma, and reputation. It is manifested through imitation or emulation.

– Much of the power wielded by strong political leaders, professional athletics, musicians, and artists is referent power.

Power Orientation

• Personalized Power Orientation– Associated with a strong need for esteem and

status; power is often used impulsively.

• Socialized Power Orientation– The use of power for the benefit of others to

make subordinates feel strong and responsible.

Follower-Centered Approaches• Self-Leadership Focus– Self-leadership, sometimes referred to as

followership, is a paradigm founded on creating an organization of leaders who are ready to lead themselves.

• Leadership Substitutes– Variables such as individual, task, and

organizational characteristics.– Neutralizer• A condition that counteracts leader behavior

and/or prevents the leader from having an effect on a follower or a specific situation.

Interactive Approaches• Interactive Approaches– Another method of examining leadership

effectiveness is to look at how leaders interact with their followers.

– The three approaches covered:• Situational leadership model• Empowerment• Transformational leadership

Interactive Approaches

• Situational Leadership Model– Examines the interaction between leadership

behavior, the situation, and the follower’s readiness.• Readiness - The extent to which a subordinate

possesses the ability and willingness to complete a specific task.• Task behavior - The extent to which a leader organizes

and defines the role of followers by explaining what each person must do and when, where, and how tasks are to be accomplished.

Interactive Approaches

• Situational Leadership Model– Four styles of leadership behavior:• Telling style - The leader provides specific instructions

and closely supervises performance.• Selling style - The leader explains decisions and

provides opportunities for clarification.• Participating style - The leader shares ideas and

maintains two-way communication to encourage and support the skills subordinates have developed.• Delegating style - The leader provides the subordinates

with few task or relations behaviors.

Interactive Approaches

• Empowerment– The interaction of the leader giving away or

sharing power with those who use it to become involved and committed to independent, high-quality performance.

– Successful empowerment means that everyone has been convinced that he or she makes a difference to the success of the organization.

Interactive Approaches

• Transformational Leadership– The interaction process of the leader’s behavior

and attitudes with the attitudes and behaviors of followers.

– There are four primary dimensions of transformational leadership: idealized influence, inspirational motivation, intellectual stimulation, and individual consideration.

Interactive Approaches

Primary Dimensions of Transformational Leadership

Dimension Leader’s Specific Behavior Follower’s Behavior

Individualize Consideration

Intellectual Stimulation

Mentors; is attentive to achievement and growth needs

Is motivated, feels valued

Promotes innovation and creativity; reframes problems

Is encouraged to be novel and try new approaches

Interactive Approaches

Primary Dimensions of Transformational Leadership

Dimension Leader’s Specific Behavior Follower’s Behavior

Inspirational Motivation

Idealized Influence

Provides meaning and challenge through prosocial, collective action

Is aroused by team spirit; enthusiastic; optimistic

Shares risks; is considerate of others over own needs; is ethical and moral

Shows admiration; respect; trust

Women as Leaders

• The number of women in leadership positions has increased steadily since 1970.

• Women occupy slightly over 25 percent of the supervisory positions in U.S. industry and just 11 percent of senior executive positions in Fortune 500 companies, although they represented 51% of the population in 1999.

Principles of Leadership Effectiveness• Know yourself. • Be a role model.• Learn to communicate with your ears open and your

mouth shut.• Know your team and be a team player.• Be honest with yourself as well as to others.• Do not avoid risks.• Believe in yourself.• Take the offense rather than the defense.• Know the ways of disagreement and the means of

compromise.• Be a good follower.