Leadership

Leadership versus Management

Leadership is the ability to influence a group toward the achievement of goals Effective leaders do the right things Management is the use of authority inherent in a designated formal rank to obtain compliance from organizational members Effective managers do things right

Leadership versus Management

Managers
Plan and budget Organize and staff Control and solve problems Produce consistent results Emphasize efficiency Focus on day-to-day agenda See path to reach goals

Leaders
Establish direction Align people with goals Motivate and inspire Produce change Emphasize effectiveness Have a long-term perspective See the overall picture

Source: What Leaders Really Do by John P Kotter

The Study of Leadership

Leadership trait theories
What personal characteristics make a good leader?

Leadership behavior theories

What behaviors differentiate a leader from a nonleader?

Situational leadership theories

What contingency factors influence leadership?

Trait Theories of Leadership

Leadership Traits:
1. Drive: Leaders inner motivation to pursue goals 2. Leadership Motivation: Need for socialized power to accomplish goals 3. Honesty and integrity: Truthfulness & tendency to translate words into deeds 4. Self-confidence: Belief in ones ability to achieve goals 5. Intelligence: above-average cognitive skills to process information 6. Knowledge of the business: Understands companys environment to make decision 7. Emotional intelligence: Ability to monitor ones own and others emotions to guide ones thoughts and actions

In Search of Leader Integrity

Integrity is the most important leadership characteristic Also called authentic leadership Individual acts with sincerity Has a higher moral capacity to judge dilemmas Yet, most people think business leaders lack integrity: 73% say CEOs of large firms cant be trusted (US) Nearly 40% do not trust their immediate boss (UK) Approx 50% say business wrongdoing has undermined their trust in employers (Australia)

Trait Theories of Leadership

Leadership fatal flaws:
Insensitivity Coldness (aloof, arrogant, etc.) Untrustworthy Overly ambitious Inability to delegate

Trait Theories of Leadership

Limitations:
No universal traits that predict leadership in all situations. Traits predict behavior better in weak than strong situations. Unclear evidence of the cause and effect of relationship of leadership and traits. Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

Behavioral Theories of Leadership

Trait theory: Leaders are born, not made. Behavioral theory: Leadership traits can be taught.

Leadership Behavior studies

Ohio State studies
Identified two independent dimensions of effective leaders behaviors.
1. Consideration
The extent to which a leader is sensitive to subordinates, respects their ideas and feelings, and establish mutual trust

2. Initiating structure
The extent to which a leader is task oriented and directs subordinates work activities towards goal achievement

Leadership Behavior studies

University of Michigan studies
Identified behavioral characteristics of leaders related to measures of performance effectiveness
Employee-oriented leader Establish high performance goals & displays supportive behavior towards employees human needs Production-oriented leader Less concerned human needs, more emphasis on technical & task aspect of job

Behavioral Theories of Leadership

Michigan Studies
Production-oriented Leader Behavior Employee-oriented Leader Behavior

Michigan researchers favored employee-oriented leaders Employee orientation associated with higher job satisfaction low absenteeism, grievances, turnover, but low job performance Production orientation associated with low job satisfaction but high group productivity Effective leaders exhibits high levels of both task-oriented and people oriented behavior

Behavioral Theories of Leadership

The Managerial Grid

Contingency Perspective of Leadership

A model of leadership that describes the relationship between leadership styles and specific organizational situations

Contingency Models of Leadership

Fiedler contingency model

Fiedlers Least Preferred Co-worker Scale

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

Fiedler contingency model

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

Source: Adapted from Robbins, 2003

Fiedler contingency model

Matching leaders and situations Examining the relationship among leadership style, situational favorability, and group performance Fiedler found Task-oriented leaders are most effective when the situation is highly favorable or highly unfavorable Relationship-oriented leaders perform better in situations of moderate favorability

Hersey & Blanchards situational theory

Combined Ohio state studies and Managerial Grid approach The level of followers readiness depends on 1. Degree of self-motivation 2. Commitment 3. Skills and knowledge to perform a task

Delegating Selling Participating Telling

Leadership style used for employees with high-task maturity Used for employees with moderate task-maturity Used for employees with low task-maturity

Contingency Models of Leadership

Contingency Theories of Leadership

Four leadership styles in path-goal theory 1. Directive Let followers know what is expected, schedule work for them, give specific guidance 2. Supportive Be friendly and show concern for needs of followers 3. Participative Consult with followers and use their suggestions to make decisions 4. Achievement-oriented Set challenging goals and expect followers to perform at their highest levels

Charismatic Leadership
Key Characteristics:      Vision and articulation Personal risk Environmental sensitivity Sensitivity to follower needs Unconventional behavior

Source: Adapted from Robbins, 2003

Charismatic Leadership

Transactional leadership
Leaders who guide or motivates their followers in the direction of established goals by clarifying role and task requirement.
Key characteristics of transactional leaders  Transactional leadership is based on traditional management function of leading  Excel at management functions  Watches and search for deviation of rules , takes corrective actions. Intervenes only when standards are not met  Often stress the impersonal aspect of performance, like plans, schedule and budget  Committed to organization and its norms and value

 Transactional leadership  Occurs when leader and followers are in an exchange-based relationship
Goal is to meet the other partys needs

 Involves a leader-follower relationship that tends to be transitory Effective only as long as relationship is mutually beneficial  Is based on contingent reward Contracted exchange of rewards for effort Promised rewards for good performance Recognized accomplishments

Transformational Leadership
Leaders who have a special ability to bring about innovation and change
 Characteristics of transformational leaders  Perform exceptionally well in situations of crises  Have a vision of what a new society or organization could be  Cultivate strong bonds between themselves and subordinates.  Followers willingly subordinate themselves  Strong emotional bonds develop over time

Transformational Leadership
Characteristics of transformational leaders  Charisma Provides vision and sense of mission Instills pride Gains respect and trust  Inspiration Communicates high expectations Uses symbols to focus efforts Expresses important purposes in simple ways

Transformational Leadership
Characteristics of transformational leaders (cont) Intellectual stimulation Promotes intelligence, rationality, and careful problem solving Individual consideration Gives personal attention Treats each employee individually Coaches Advises

Transformational Leadership
Vision & Transformational Leadership Ability to create and articulate a realistic, credible and attractive vision of the future Uses own behavior to express the vision. Ability to build commitment to the vision

Source: Adapted from Robbins, 2003

Transactional vs. Transformational Leadership

Category Leaders source of power Follower reaction Time frame Rewards Supervision Counseling focus Where change occurs Where leadership found Transactional Rank, position Compliance Short term Pay, promotion, etc. Important Evaluation Follower behavior Leaders behavior Transformational Character, competence Commitment Long term Pride, self-esteem, etc. Less important Development Follower attitude, values Followers heart