1

Chapter 5: Leadership and Communication

What is leadership?

A leader is one who knows the way, goes the way, and shows the way. John Maxwell

Such a simple question, and yet it continues to vex popular consultants and lay people alike
Lets start with what is not leadership:
1. Leadership has nothing to do with seniority or ones position in the hierarchy of a
company
2. Leadership has nothing to do with titles
3. Leadership has nothing to do with personal attributes
4. Leadership isnt management technically managers manage things and leader lead
people
Then what is leadership?
Leadership is the ability to influence a group toward the achievement of a vision or set of goals.
Warren Bennis: Leadership is the capacity to translate vision into reality.
Bill Gates: As we look ahead into the next century, leaders will be those who empower others.

DEFINITION: Leadership is a process of social influence, which maximizes the efforts of others,
towards the achievement of a goal.

Notice key elements of this definition:

Leadership stems from social influence, not authority or power

Leadership requires others, and that implies they dont need to be direct reports

No mention of personality traits, attributes, or even a title; there are many styles, many
paths, to effective leadership
It includes a goal, not influence with no intended outcome

Transactional Leadership:
Leaders who guide or motivate their followers in the direction of established goals by clarifying
role and task requirements
Manager expects more productivity from employee in order to give good rewards. A politician
announces benefits in their agendas to the vote from citizens. In business leaders announces
rewards in turn to the productivity. These relation is all about requirements, conditions, rewards
(punishments). Leaders who shows these kinds of relationship is called transactional leaders.
2

Transactional leadership styles are more concerned with maintaining the normal flow of
operations. Transactional leadership can be described as "keeping the ship afloat." Transactional
leaders use disciplinary power and an array of incentives to motivate employees to perform at
their best. The term "transactional" refers to the fact that this type of leader essentially motivates
subordinates by exchanging rewards for performance.

A transactional leader generally does not look ahead in strategically guiding an organization to a
position of market leadership; instead, these managers are solely concerned with making sure
everything flows smoothly today.

Approaches followers with an eye to exchanging one thing for another Burns

Pursues a cost benefit, economic exchange to met subordinates current material and psychic
needs in return for contracted services rendered by the subordinate . Bass

Transformational Leadership
At some point in life things happens without expectations from other side. Raising child and
shaping future life of child by mother is unconditional, dedicated and committed and such
relationship is called transformational.

Transformational Leaders work toward a common goal with followers; put followers in front and
develop them; take followers to next level; inspire followers to transcend their own self-interests
in achieving superior results.

A transformational leader goes beyond managing day-to-day operations and crafts strategies for
taking his company, department or work team to the next level of performance and success.
Transformational leadership styles focus on team-building, motivation and collaboration with
employees at different levels of an organization to accomplish change for the better.
Transformational leaders set goals and incentives to push their subordinates to higher
performance levels, while providing opportunities for personal and professional growth for each
employee

The transactional leaders work within the organizational culture as it exists; the transformational
leader changes the organizational culture.

Transactional Leadership Transformational Leadership

* Leaders are aware of the link * Leaders arouse emotions in their followers which
between the effort and reward motivates them to act beyond the framework of what
may be described as exchange relations

* Leadership is responsive and its

basic orientation is dealing with * Leadership is proactive and forms new expectations in
3

present issues followers

* Leaders rely on standard forms
of inducement, reward,
punishment and sanction to
control followers
* Leaders motivate followers by
setting goals and promising
rewards for desired performance
* Leadership depends on the
leaders power to reinforce
subordinates for their successful
completion of the bargain.
* Leaders are distinguished by their capacity to inspire
and provide individualized consideration, intellectual
stimulation and idealized influence to their followers
* Leaders create learning opportunities for their
followers and stimulate followers to solve problems
* Leaders possess good visioning, rhetorical and
management skills, to develop strong emotional bonds
with followers
* Leaders motivate followers to work for goals that go
beyond self-interest.

Advantages
Both leadership styles are needed for guiding an organization to success. Transactional leaders
provide distinct advantages through their abilities to address small operational details quickly.
Transactional leaders handle all the details that come together to build a strong reputation in the
marketplace, while keeping employees productive on the front line.

Transformational leadership styles are crucial to the strategic development of a small business.
Small businesses with transformational leaders at the helm shoot for ambitious goals, and can
they achieve rapid success through the vision and team-building skills of the leader.

Applications
Different management styles are best suited to different situations. When it comes to front-line
supervisors of minimum-wage employees, for example, a transactional leadership style can be
more effective. Shift supervisors at a fast food restaurant will be much more effective if they are
concerned with ensuring all of the various stations run smoothly, rather than spending their time
thinking up better ways to serve hamburgers.

On the other hand, CEOs or sales managers can be more effective if they are transformational
leaders. Executive managers need the ability to design and communicate grand strategic
missions, passing the missions down to transactional leaders for implementation of the details.

Ethical Leadership
4

Leaders spend most of their time learning how to do their work and helping other people learn
how to do theirs, yet in the end, it is the quality and character of the leader that determine the
performance and results. Frances Hesselbein
We say these are the values of the organization, and we all live them. Then, no matter what the
situation, we never think, Well, I can be slightly unethical today, but tomorrow Ill be better. It
doesnt work that way. No matter how difficult the circumstances become, we stand and we act
on principle. Frances Hesselbein
Ethics are the principles, values and beliefs that define what is right and what is wrong behavior.
Leadership is a process of influencing others to achieve goals. Thus we can define ethical
leadership as the process of influencing people through principles, values and beliefs that
embrace what we have defined as right behavior.
Ethical leadership principles:
a. Respect for others
b. Justice for others
c. Honesty towards others
d. Building community with others

Ethical leadership really has two elements. First, ethical leaders must act and make decisions
ethically, as must ethical people in general. But, secondly, ethical leaders must also lead ethically
in the ways they treat people in everyday interaction, in their attitudes, in the ways they
encourage, and in the directions in which they steer their organizations or institutions or
initiatives.

Ethical leadership is both visible and invisible. The visible part is in the way the leader works
with and treats others, in his behavior in public, in his statements and his actions. The invisible
aspects of ethical leadership lie in the leaders character, in his decision-making process, in his
mindset, in the set of values and principles on which he draws, and in his courage to make ethical
decisions in tough situations.

Ethical leaders are ethical all the time, not just when someones looking; and theyre
ethical over time, proving again and again that ethics are an integral part of the intellectual and
philosophical framework they use to understand and relate to the world.

Why practice ethical leadership?

a. Ethical leadership models ethical behavior to the organization and the community
b. Ethical leadership builds trust
c. Ethical leadership brings credibility and respect, both for you and the organization
d. Ethical leadership can lead to collaboration
e. Ethical leadership creates a good climate within the organization
f. If you have opposition, or are strongly supporting a position, ethical leadership allows
you to occupy the moral high ground
g. Ethical leadership is simply the right way to go
5

h. Ethical leadership affords self-respect

How Does Ethical Leadership Work? We are hoping that this chapter will
enable you to better understand yourself as you develop your leadership
skills, knowledge, and abilities. Use the thinking on ethical leadership in this
chapter as a guide in making your decisions. Remember that the relationship
between you and your followers is at the heart of ethical leadership and
requires that you show sensitivity to others needs, treat others in a just
manner, and have a caring attitude toward others. Being an ethical leader
will be easier if you entrench the following questions into your thinking
(Northouse, 2013):
Is this the right and fair thing to do?
Is this what a good person would do?
Am I respectful to others?
Do I treat others generously?
Am I honest toward others?
Am I serving the community?
Ethical leaders must be concerned with more than running their businesses. They must be
concerned with their employees, their customers, their suppliers, their communities, their
shareholders, and themselves. Leadership is influencing people to achieve communal goals;
ethical leadership is achieving those goals in a way that is fair and just to your employees, your
customers, your suppliers, your communities, your shareholders, and yourselves (Daft, 2011;
Phillips, 2006).

Managing Work Groups and Work Teams

Group:
Two or more interacting and interdependent individuals who come together to achieve particular
goals
Formal groups - established by the organization
- have designated work assignments and specific tasks
- different types exist
Informal groups - occur naturally in the workplace in response to the need for social contact
Stages of Group Development
Forming - people join the group either because of a work assignment or for some other benefit
6

begin to define the groups purpose, structure, and leadership

stage marked by much uncertainty
Storming - acceptance of the groups existence
conflict over who will control the group
Norming - relationships and a sense of group identity develop
Performing - group structure is functional and accepted
group energy has moved to task performance

Adjourning - group prepares to disband

attention devoted to wrapping up activities
group does not necessarily become more effective as it moves through the first four
stages
group effectiveness is a complex issue that is affected by factors other than
developmental stage
group assimilates a common set of expectations of what defines correct member behavior
What Is a Team?
Background:
Decades ago, when companies General Foods, W.L. Gore, Volvo introduced team into their
production processes it made news because no one else was doing it. Nowadays, team is essential in
any type of organizations.
The use of teams also began to increase because advances in technology have resulted in more
complex systems that require contributions from multiple people across the organization. As
organizations have restructured themselves to compete more effectively and efficiently, they have
turned teams as a better way to use employee talents.
Management has found that teams are more flexible and responsive to changing events than are
traditional departments or other forms of permanent groupings.
Conclusion
Teams are not a cure-all for organizations. To determine whether a team is needed, organizations
should consider whether a variety of knowledge, skills, and abilities are needed, whether ideas and
feedback are needed from different groups within the organization, how interdependent the tasks
are, if wide cooperation is needed to get things done, and whether the organization would benefit
from shared goals.

Team work generates positive synergy

What is team?
work team - formal group made up of interdependent individuals who are
responsible for the attainment of a goal
7

work teams are popular in organizations

Creates
esprit de corps

Allows managers
to do more strategic
Increases
Management
performance

Why Use
Teams?

Takes advantage
of workforce
Increases
diversity Flexibility

Types of Teams: b. Self managed

1. Purpose 3. Membership
a. Product Development a. Functional
b. Problem Solving b. Cross Functional
c. Any other organization purpose 4. Duration
desired a. Permanent
2. Structured b. Temporary
a. Supervised 5. Virtual
Characteristics of Effective Teams

Managing Teams:

Planning - goal determination

members understand and accept the teams goals
Organizing - clarify authority and structural issues
support in the organizations culture for employee involvement and autonomy
must resolve issues of leadership, tasks to be performed, and assignment of tasks
Leading - determine the role that leader will play
deal with human dynamics of the team
Controlling - performance criteria must reflect teamwork behaviors
reward system must reflect team efforts and performance
gainsharing - incentive program that shares the gains of the efforts of employees with those
employees
rewards directly related to performance

Steps to Creating and Maintaining a Cohesive Team

There are several steps you can take as a manager to help build a cohesive team. For example, you

can work to:

Align the group with the greater organization. Establish common objectives in
which members can get involved.
Let members have choices in setting their own goals. Include them in
decision making at the organizational level.
Define clear roles. Demonstrate how each persons contribution furthers the
group goaleveryone is responsible for a special piece of the puzzle.
 Situate group members in proximity to one another. This builds familiarity.
Give frequent praise, both to individuals and to the group, and encourage
them to praise each other. This builds individual self-confidence, reaffirms
positive behavior, and creates an overall positive atmosphere.
Treat all members with dignity and respect. This demonstrates that there are
no favorites and everyone is valued.
Celebrate differences. This highlights each individuals contribution while also
making diversity a norm.
Establish common rituals. Thursday morning coffee, monthly potlucksthese
reaffirm group identity and create shared experiences.

Role of management in Team cohesion:

a. Establish the team vision/goal

b. Facilitate the working environment

c. Set the clear expectations and responsibilities

d. Training and staffing

e. Get out of their way give autonomy to team

Common Barriers to Effective Teams

1. Challenge of knowing where to begin
2. Dominating team members
3. Poor performance of some team members
4. Poor managed team conflicts

Role of Team
Designing effective teams: (OB book Page 354)

a. Context
b. Composition
c. Work Design
d. Process

Comparing Work Groups and Work Teams

Share Information Goal Collective performance

Neutral (sometimes negative) Synergy Positive

Individual Accountability Individual and mutual

Random and varied Skills Complementary

Why do people join group:

1. Security 2. Status 3. Self Steem 4. Affiliation
5. Power 6. Goal Achievement

Intergroup Conflict and Its management

Inter-Group Conflict An organization is a collection of individuals and groups. As the
situation and requirements demand, the individuals form various groups. The
success of the organization as a whole depends upon the harmonial relations among
all interdependent groups, even though some intergroup conflicts in organizations is
inevitable. The idea is to study intergroup behaviours within an organization so that
any conflict can be recognized and dealt with by the management.
Intergroup conflicts between different departments also cause problems. On a minor
scale these are something like the wars between juvenile gangs. Each group sets
out to undermine the other, gain power, and improve its image. Conflicts arise from
such causes as different viewpoints, group loyalties, and competition for resources.
Intergroup relations between two or more groups and their respective members are often
necessary to complete the work required to operate a business. Many times, groups inter-relate
to accomplish the organization's goals and objectives, and conflict can occur. Some conflict,
called functional conflict, is considered positive, because it enhances performance and identifies
weaknesses. Dysfunctional conflict, however, is confrontation or interaction between groups that
harms the organization or hinders attainment of goals or objectives.
Conflict-Management Techniques
Conflict-Resolution Techniques

Problem solving Face-to-face meeting of the conflicting parties for the purpose of
identifying the problem and resolving it through open discussion.

Superordinate goals Creating a shared goal that cannot be attained without

the cooperation of each of the conflicting parties.

Expansion of resources When a conflict is caused by the scarcity of a resource

say, money, promotion opportunities, office space expansion of the resource can
create a win-win solution.

Avoidance Withdrawal from, or suppression of, the conflict.

Smoothing Playing down differences while emphasizing common interests

between the conflicting parties.

Compromise Each party to the conflict gives up something of value.

Authoritative command Management uses its formal authority to resolve the

conflict and then communicates its desires to the parties involved.

Altering the human variable Using behavioral change techniques such as human
relations training to alter attitudes and behaviors that cause conflict.

Altering the structural variable Changing the formal organization structure and the
interaction patterns of conflicting parties through job redesign, transfers, creation of
coordinating positions, and the like.
Conflict-Stimulation Techniques

Communication Using ambiguous or threatening messages to increase conflict

levels.

Bringing in outsiders Adding employees to a group whose backgrounds, values,

attitudes, or managerial styles differ from those of present members.

Restructuring the organization Realigning work groups, altering rules and

regulations, increasing interdependence, and making similar structural changes to
disrupt the status quo.

Appointing a devils advocate Designating a critic to purposely argue against the

majority positions held by the group.