1. The Road Toward Leadership
Dr. Hussin J. Hejase
Director, Department of Business
AUST
LMA … Thursday May 13, 2004…

2. What are the Necessary Elements for Leadership?

3. Behavioral Management Theory

4. Behavioral Management Theories
The study of how managers should behave to motivate employees and encourage them to perform at high levels and be committed to the achievement of organizational goals.
Focuses on the way a manager should personally manage to motivate employees.

5. X & Y Theories
Douglas McGregor proposed the two different sets of assumptions about workers.
Theory X assumes the average worker is lazy, dislikes work and will do as little as possible.
Managers must closely supervise and control through reward and punishment.
Theory Y assumes workers are not lazy, want to do a good job and the job itself will determine if the worker likes the work.
Managers should allow workers greater latitude, and create an organization to stimulate the workers.

6. Comparison

7. Mechanistic & Organic Structures
Mechanistic Structure
Authority is centralized at the top. (Theory X)
Employees are closely monitored and managed.
Can be very efficient in a stable environment.
Organic structure
Authority is decentralized throughout the organization. (Theory Y)
Tasks and roles are left ambiguous to encourage employees to react quickly to changing environment.

8. Structures

9. Leadership Leadership Leader
The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organizational goals.
Effective leadership increases the firm’s ability to meet new challenges.
Leader
An individual who is able to exert influence over other people to help achieve group or organizational goals

10. Leaders

11. Leadership Across Cultures
Leadership styles may vary among different countries or cultures.
European managers tend to be more people-oriented than American or Japanese managers.
Japanese managers are group-oriented, while U.S managers focuses more on profitability.
Time horizons also are affected by cultures.
U.S. firms often focus on short-run efforts and results.
Japanese firms have a longer-run perspective.
European firms fall somewhere between the U.S. and Japanese orientations.

12. Sources of Leadership Power

13. Empowerment: An Ingredient in Modern Management
The process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes.
Empowerment helps managers:
Get workers involved in the decisions.
Increase worker commitment and motivation.
Have time to focus on other issues.
Effective managers usually empower substantial authority to workers.

14. Leadership Models Trait Model
Attempted to identify personal characteristics that cause for effective leadership.
Research shows that certain personal “traits” do appear to be connected to effective leadership.
Many “traits” are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits.

15. Leadership Models Example of Traits: Energy & Ambition Desire to lead
Self Confidence
Intelligence
Trustworthiness
Straightness

16. Leadership Models (cont’d)
Behavioral Model
Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates:
Consideration: employee-centered leadership behavior indicating that a manager trusts, respects, and cares about subordinates.
Example: Help subordinates in their personal problems.
Accept their suggestions
Deal with subordinates with equality
Defend their rights

17. Leadership Models (cont’d)
Initiating structure: job-oriented leadership behavior that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably, and the organization is efficient and effective.
Example: Hire employees for specific jobs
Expect from employees to follow the assigned
performance standards
Both behaviors are independent; managers can be high or low on both behaviors.

18. Contingency Models of Leadership 1970-1990
Fiedler’s Model
Effective leadership is contingent on both the characteristics of the leader and of the situation.
Leader style is the enduring, characteristic approach to leadership that a manager uses and does not readily change.
Relationship-oriented style: leaders concerned with developing good relations with their subordinates and to be liked by them.
Task-oriented style: leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done.

19. Fiedler’s Model Situation Characteristics
How favorable a situation is for leading to occur.
Leader-member relations—determines how much workers like and trust their leader.
Task structure—the extent to which workers tasks are clear-cut; clear issues make a situation favorable for leadership.
Position Power—the amount of legitimate, reward, and coercive power leaders have due to their position. When positional power is strong, leadership opportunity becomes more favorable.

20. Fiedler’s Contingency Theory of Leadership

21. Fiedler’s Model in Application
Combines considerations of leader-member relations, task structure, and position power to identify leadership situations.
Identifies situations where given types of managers might perform best.
Leader style is a characteristic managers cannot change; managers will be most effective when:
they are placed in situations that suit their leader style.
the situation can be changed to fit the manager’s leader style.

22. House’s Path-Goal Theory
A contingency model of leadership proposing the effective leaders can motivate subordinates by:
Clearly identifying the outcomes workers are trying to
obtain from their jobs.
2. Rewarding workers for high-performance and goal
attainment with the outcomes they desire
3. Clarifying the paths to the attainment of the goals,
remove obstacles to performance, and express
confidence in worker’s ability.

23. Motivating with Path-Goal
Path-Goal identifies four leadership behaviors:
Directive behaviors: set goals, assign tasks, show how to do things.
Supportive behavior: look out for the worker’s best interest.
Participative behavior: give subordinates a say in matters that affect them.
Achievement-oriented behavior: Setting very challenging goals, believing in worker’s abilities.
Which behavior to be used depends on the nature of the subordinates and the tasks.

24. The Leader Substitutes Model
Leadership Substitute
Acts in the place of a leader and makes leadership unnecessary. Possible substitutes can be found in:
Characteristics of the subordinates: their skills, experience, motivation.
Characteristics of context: the extent to which work is interesting and fun.
Worker empowerment or self-managed work teams reduce leadership needs.
Managers should be aware that they do not always need to directly exert influence over workers.

25. Transformational Leadership
Leadership that:
Makes subordinates aware of the importance of their jobs and performance to the organization by providing feedback to the worker.
Makes subordinates aware of their own needs for personal growth and development.
Motivates workers to work for the good of the organization, not just themselves.

26. Being a Charismatic Leader
An enthusiastic, self-confident transformational leader able to clearly communicate his or her vision of how good things could be by:
Openly sharing information with employees so that everyone is aware of problems and the need for change.
Being excited and clearly communicating excitement to subordinates.
Empowering workers to help with solutions.
Engaging in the development of employees by working hard to help them build skills.

27. Transactional Leadership
Use their reward and coercive powers to encourage high performance—they exchange rewards for performance and punish failure.
Push subordinates to change but do not seem to change themselves.
Do not have the “vision” of the transformational leader.

28. Gender and Leadership
The number of women managers is rising but is still relatively low in the top levels of management.
Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused.
Research indicates that actually there is no gender-based difference in leadership effectiveness.
Women are seen to be more participative than men because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills.

29. Emotional Intelligence and Leadership
The Moods of Leaders:
Affect their behavior and effectiveness as leaders.
Affect the performance of their subordinates.
Emotional Intelligence
Helps leaders develop a vision for their firm.
Helps motivate subordinates to commit to the vision.
Energizes subordinates to work to achieve the vision.

30. Thank You for your Kind Attention