CHAPTER NINE

 Leadership is the process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task.  Leadership is the activity of influencing people to strive willingly for group objectives.  Leadership is about setting and not just reacting to agendas, identifying problems, and initiating change.

 Great Man Theory: 1) Assumes that the capacity for leadership is inherent – that great leaders are born, not made. 2) These theories often portray great leaders as heroic, mythic, and destined to rise to leadership when needed. 3) The term “Great Man” was used because, at the time, leadership was thought of primarily as a male quality, especially in terms of military leadership.

 Trait Theory : 1) Similar in some ways to “Great Man” theories, trait theory assumes that people inherit certain qualities and traits that make them better suited to leadership. 2) Trait theories often identify particular personality or behavioral characteristics shared by leaders. 3) But if particular traits are key features of leadership, how do we explain people who possess those qualities but are not leaders?

 Leaders can be made, rather than are born. “What leaders actually do”, the action.  Assumes that leadership capability can be learned, rather than being inherent. Therefore, people can learn to become leaders through teaching and observation.  Focuses on the actions of leaders, not on mental qualities.  It opposes to simple psychometric assessment that sorts those with leadership potential from those who will never have the chance.

 According to Behavioral Theory, “what behaviors make the leaders effective???” 1) People oriented behaviors: like showing trust, respect for subordinates, genuine concern, looking for their welfare. 2) Task oriented behaviors: that tends to define and structure work roles. Assigning task, clarifying duties, roles, ensuring task completion, pushing beyond standards, getting maximum performance, adherence to regulations.

Managerial/ Leadership Grid:

 Impoverished Management (1, 1) - the indifferent leader: 1) Does only enough to preserve job and job seniority. Gives little & enjoys little. 2) Protects himself by not being noticed by others.  Country Club (1, 9) – the accommodating leader: 1) Attention to the security & comfort of employees. 2) Predominantly reward power is used.

 Task management (9, 1) - controlling leader: 1) Also called dictatorial or perish style, The style is based on theory X of McGregor. 2) The leader believes that efficiency can result only through proper organization of work systems and through elimination of people wherever possible. 3) Such a style can definitely increase the output of organization in short run but due to the strict policies and procedures, high labour turnover is inevitable.

 Middle-of-the-Road (5, 5): 1) This is basically a compromising style wherein the leader tries to maintain a balance between goals of company and the needs of people. 2) Here neither employee nor production needs are fully met, resulting in average performance.  Team Management (9, 9) 1) It is based on the theory Y of McGregor 2) The leader feels that empowerment, commitment, trust, and respect are the key elements in creating a team atmosphere which will automatically result in high employee satisfaction and production.

 Seeks to involve other people in the process.  It improves the understanding of the issues involved by those who must carry out the decisions.  People are more committed to actions where they are involved in decision making.  Social commitment to one another is greater.  Several people deciding together make better decisions than one person alone.  Also known as consultation, empowerment, joint decision making, democratic, MBO.

 Autocratic or Authoritarian Leadership: 1) Centralizes power and decision making. Gives orders, assign tasks without consultation. 2) It is negative, based on threats. 3) Based upon close supervision, clear cut direction and commanding order. 4) Facilitates quick decisions, prompt action, unity of direction & lesser degree of delegation.

 Democratic or Participative Leadership: 1) Decentralize authority, characterized by consultation and participation. 2) Leads the subordinates mainly through persuasion. 3) It is usually appreciated by the people, it fosters enthusiasm. 4) Can be problematic when there are a wide range of opinions & there is no clear way of reaching an equitable final decision.

 Laissez – faire or Free – rein Leadership: 1) Leaders avoid power and responsibility. 2) The leader passes on the responsibility for the decision making to his subordinates and takes a minimum of initiative in admin. 3) Gives no direction and allows the group to establish its own goals and work out its own problems. 4) The idea is that each member of the group when left to himself will put forth his best effort and the maximum results can be achieved.

 Exploitive Authoritative  Benevolent Authoritative  Consultative  Participative

Contingency Theories: Situational Leadership - S3 Supporting S4 Delegating S1 Directing S2 Coaching LowHigh Directive Behavior Supportive Behavior D1 Low Cp High Cm D2 Low to some Cp & Low Cm D3 Moderate To high Cp & Variable Cm D4 High Cp &High Cm

Hersey, Blanchard & Johnson, 2008: It is based on the development levels and adapted from Hersey’s Situational Selling –  R1 : Unable and insecure or unwilling  R2 : Unable but confident or willing  R3 : Able but insecure or unwilling  R4 : Able, confident and willing.

 Vroom and Yetton (1973) took the earlier generalized situational theories that noted how situational factors cause almost unpredictable leader behavior and reduced this to a more limited set of behaviors.  The 'normative' aspect of the model is that it was defined more by rational logic than by long observation.

 Decision quality is the selection of the best alternative, and is particularly important when there are many alternatives. It is also important when there are serious implications for selecting (or failing to select) the best alternative.  Decision acceptance is the degree to which a follower accepts a decision made by a leader. Leaders focus more on decision acceptance when decision quality is more important.

 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: 1) Clarify the path so subordinates know which way to go. 2) Remove roadblocks that are stopping them going there. 3) Increasing the rewards along the route.

According to this model, leadership is effective when the leader’s style is appropriate to the situation - as determined by three principal factors:  Leader-Member Relations - Degree to which a leader is accepted and supported by the group members.  Task Structure - Extent to which the task is structured and defined, with clear goals and procedures.  Position Power - The ability of a leader to control subordinates through reward and punishment.

Transformational Leadership (Relationship)  Transformational Leader seeks overtly to transform the organization, there is also a tacit promise to followers that they also will be transformed in some way.  Assumptions - People will follow a person who inspires them, the way to get things done is by injecting enthusiasm and energy.

The main elements of a transformational leadership are:  Creating a strategic vision: portrays a clear picture of realistic attractive future.  Communicating the vision: making employees understand the significance of the visionary goal.  Modeling the vision: walk the talk.  Building the commitment to the vision: Energize people to adopt the vision at their own.

 The transactional leader works through creating clear structures whereby it is clear what is required of their subordinates, and the rewards that they get for following orders.  Punishments are not always mentioned, but they are also well-understood and formal systems of discipline are usually in place.  Assumptions - The prime purpose of a subordinate is to do what their manager tells them to do, social systems work best with a clear chain of command and when people have agreed to do a job, a part of the deal is that they cede all authority to their manager.

1. Structural framework 2. Human Resource framework 3. Political Framework 4. Symbolic framework

 Charismatic Leadership  Servant Leadership  Distributed Leadership