Contemporary issues in Management Leadership -Class notes

The leadership story: (Stephen Covey) A group of workers and their leaders are set on a task of clearing a road through a dense jungle on a remote island to get to the coast where an estuary provides a perfect site for a port. The leaders organise the labour force into efficient units and monitor the distribution and use of capital assets – progress is excellent.

The leadership story: The leaders continue to monitor and evaluate progress, making adjustments along the way to ensure the progress is maintained and efficiency increased wherever possible. Then, one day amidst all the hustle and bustle and activity, one person climbs up a nearby tree. The person surveys the scene from the top of the tree.

The leadership story: And shouts down to the assembled group below… “Wrong Jungle!” The managers response? Shut up we are making progress!!!

Leadership verses Management “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leadership: A definition “Leadership is having influence, nothing less, nothing more” –John C Maxwell “Leadership is having followers” –Peter Drucker “Leadership is having individual capability of being a leader” –Warren Bennis

Our definition “Leadership is defined as the process of influencing others to facilitate the attainment of organizationally relevant goals” Ivancevich et al, 2008, Organizational Behavior and Management, 7th Edition, Tata-MacGraw-Hill Publishing Co, New Delhi, India

Challenge of defining leadership It is difficult to achieve a unified definition of leadership due to the fact that leaders and leadership situations differ. Some definitions are based on leader characteristics, others on leaders behavior and others on outcomes or end results. There are 3 key variables to leadership The people being led The task people are performing The environment in which the people and task exist

Characteristics of Effective leaders They provide direction and meaning to people they are leading They generate trust They favor action and risk taking They are purveyors (inspire) of hope.

Managers vs. Leaders Managers Focus on things Do things right Plan Organize Direct Control Follows the rules Leaders Focus on people Do the right things Inspire Influence Motivate Build Shape entities

Evolution of leadership thinking Leadership has evolved over the years from a trait based approach to the concept of teams without bosses There are 3 major approaches to understanding leadership Trait approaches Behavioral approaches Situational Approaches

Traits approaches to leadership The traits theory of leadership is an attempt to identify specific characteristics (physical, mental, personality) associated with leadership success. The theory relies on research that relates various traits to certain success criteria. Traits theory is also supported by personnel testing and other researches based on observation of behavior in group situations.

Traits associated with leadership effectiveness Intelligence Judgment Decisiveness Knowledge Fluency of speech Personality Adaptability Alertness Creativity Personal integrity Self confidence

Traits associated with leadership effectiveness Abilities Ability to enlist cooperation Cooperativeness Popularity and prestige Sociability (interpersonal skills) Social participation Tact, diplomacy

Behavioral Approaches In the 1940s researchers began to explore the notion that how a person acts determines that person’s leadership effectiveness. Leaders are seen to be Job-centered or Employee centered according to behavioral leadership theory. The managerial grid is a well known leadership behavior study tool (see below)

David McLelland posited that leadership takes a strong personality with a well-developed positive ego. To lead, self-confidence and high self-esteem are useful, perhaps even essential

Robert Blake & Jane Mouton Leadership Grid developed in1964 suggests five different leadership styles, based on the leaders' concern for people and their concern for goal achievement.

The leadership Grid

Job-centered & employee centered leader Job-centered leader focuses on completing the task and uses close supervision so that subordinates perform their tasks using specified procedures Employee centered leader focuses on the people doing the work and believes in delegating decision making and aiding employees in satisfying their needs by creating a supportive work environment.

Leadership style and performance Kurt Lewin, Ronald Lipitt, and Ralph White developed in 1939 the seminal work on the influence of leadership styles and performance. According to their study they identified three styles: Authoritarian(Autocratic), democratic, and laissez-faire Additional studies now include Paternalistic style

Leadership styles cont’d Different situations call for different leadership styles. In an emergency when there is little time to converge on an agreement and where a designated authority has significantly more experience or expertise than the rest of the team, an autocratic leadership style may be most effective;

Leadership styles cont’d However, in a highly motivated and aligned team with a homogeneous level of expertise, a more democratic or laissez-faire style may be more effective. The style adopted should be the one that most effectively achieves the objectives of the group while balancing the interests of its individual members

Styles of leadership: Autocratic Leader makes decisions without reference to anyone else High degree of dependency on the leader Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively

Styles of leadership: Democratic Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation. Leader may relay on Consultative: process of consultation before decisions are taken Persuasive: Leader takes decision and seeks to persuade others that the decision is correct

Styles of leadership: Laissez-Faire ‘Let it be’ – the leadership responsibilities are shared by all Can be very useful in businesses where creative ideas are important Can be highly motivational, as people have control over their working life Can make coordination and decision making time-consuming and lacking in overall direction Relies on good team work Relies on good interpersonal relations

Styles of leadership: Partenalitic Paternalistic: Leader acts as a ‘father figure’ Paternalistic leader makes decision but may consult Believes in the need to support staff

Situational Approaches to leadership These theories suggest that leadership effectiveness is a function of various aspects of the leadership situation. Fiedler’s Contingency Leadership model – which postulates that the performance of a group is dependent on the interactions between leadership style and situational favourableness.

Situational Approaches to leadership Vroom-Jago Leadership model –which specifies which leadership decision-making procedures will be most effective in each of several different situations (autocratic style, consultative style, group style or delegated style) Path-Goal Leadership model –Suggests that it is necessary for a leader to influence the follower’s perceptions of work goals, self development goals and path to goal attainment (Founded on the expectancy motivation theory).

Situational Approaches to leadership Hersey Blanchard Situational Leadership Model –emphasizes followers and their level of maturity. The leader must properly judge or intuitively know followers maturity level and then use a leadership style that fits that level. This model proposes four leadership styles to adapt 1) Telling, 2) Selling, 3) Participating & 4) Delegating.

Other Perspectives: Charismatic Leadership The charismatic leader is one who creates an atmosphere of motivation based on an emotional commitment and identity to his or vision, philosophy, and style on the part of followers. A combination of charm & personal magnetism. John F Kennedy Barack Oboma Winston Churchill, Jomo Kenyatta Nelson Mandela

Attributes of a charismatic leader Develop visionary thinking Communicate the vision Show conviction Engage in extraordinary behaviors Develop self-confidence

Other Perspectives: Transactional leadership Transactional leader helps follower identify what must be done to accomplish the desired results (e.g. better-quality output, more sales or service, reduced cost of production) and ensures that employees have the resources they needed to complete the job.

Other Perspectives: Transformational Leadership Transformational leader motivates followers to work for goals instead of short-term self interest and for achievement and self-actualization instead of security; is able to express a clear vision and inspire others to strive to accomplish the vision.

Other Perspectives: Transformational Leadership Factors that describe a transformational leader are; Charisma Individual attention Intellectual stimulation (helps followers rethink situations) Contingent reward (informs followers what to expect as reward) Management by exception (Allows followers to work on tasks)

Coaching as a leadership concept Coaching is the everyday interaction of helping, guiding and encouraging another employee to improve his or her understanding of the work and improve performance How to coach in an organization; Observe the detail. Develop the person’s strengths

Coaching, cont’d Work to improve people, not change them. Require continual improvement. Pace the person. Don’t wear them out by working so hard all the time. Believe that you can be the best.

Q&A