Organizational Leadership Model

The effective leadership influence is not the same for everyone. It depends on their ranks in the
organization and abilities which are required in leaders. The three basic leadership roles identified:
initiation, speech, and management.

1. Initiation

Initiation refers to planned decision making on policy formulation or structural change. These vital
decisions are the determinants of the organization’s culture and mission.

2. Speech

Strategic decisions and methods designed for implementation within the establishment. It includes
adjusting or adding on to the present structure towards new policy demands.

3. Management

Management is putting into practice the policies and measures that are available to maintain the
operations of the organization efficiently.

These three kinds of Leadership are naturally executed at diverse ranks in the company with different
abilities and skills. The top level management would initiate new policies that involve a change in the
business’s structure or understanding the company’s mission. An understanding of the entire
organization, culture, mission, vision and how it correlates with the external parties is mandatory for
these top level individuals. They represent the organization and what the business stands for.

Understanding the policy decisions and practicing them to the existing organization via utterance or
speech is usually made by the intermediate-level managers. They must uphold a two-way point of
reference by taking orders from the above management and adapting them for the lower groups of
people in the organization.
In this lesson, you will learn how the size of an organization impacts the structure and design of that
organization in the areas of work specialization, departmentalization, and formalization.

How Size Affects Structure

When an architect plans a new building, the size of the building being planned will have a considerable
impact on how the building is designed and the type of foundation that is used to support the building.
A small building typically requires a simple design with a shallow foundation, and a larger building
requires a more complex design and a deeper foundation.

In the same vein, when determining the most effective structure and design for an organization, the
number of people that belong to the organization has a major impact on which structure works best.
The typical structure of a small business is flat since there are a limited number of people who are
responsible for many tasks. The typical structure of a large organization is tall, with several vertical
levels, or management layers, which represent a more complex structure.

In short, when determining what type of structure works best for an organization, size matters. Let's
take a look at two different sized companies that operate in the same industry and learn how the size of
these organizations impact how they are structured.

How Size Affects Work Specialization

One factor of organizational structure that is impacted by the size of an organization is work
specialization, which determines how tasks are subdivided into separate jobs. The more a job is broken
down into small tasks, the more specialization is required by each individual worker. Small organizations
have fewer people to divide tasks among, so the jobs in small organizations have a lower degree of work
specialization than the jobs in large organizations.

For example, the Droopy Dog Motel is a small motel that operates off Interstate 88 near DeKalb, Illinois.
The Droopy Dog has 22 rooms and 19 employees. The structure of this organization is comprised of a
general manager, four front desk workers, six housekeepers, three maintenance people, three security
staff members, an accountant, and a night auditor.

At the Droopy Dog Motel, there are usually two members of the housekeeping staff on duty, and each is
assigned 11 rooms to clean in addition to cleaning the common areas of the motel. The job description
of a housekeeping staff member in this organization includes making beds, cleaning rooms, stocking
supplies, washing linens, and cleaning the front desk area and other general areas of the motel. It takes
a member of the housekeeping staff an average of 45 minutes to clean a room.

The Silver Spike Resort is a big hotel and spa in Reno, Nevada, with over 1,000 rooms, a fully staffed spa
and fitness center, an 18-hole golf course, and eight swimming pools. The Silver Spike employs over
2,000 people and has six vertical levels of management. Housekeeping at the Silver Spike is done in
teams of three with each housekeeper performing a specialized task. One person cleans the bathroom,
one person cleans the bedroom and makes the bed, and the third person vacuums and washes the
windows. Because the jobs are much more specialized, it takes an average of 12 minutes for a team of
housekeepers to clean a room at the Silver Spike Resort.

How Size Affects Departmentalization

Another aspect of organizational structure that is affected by the size of an organization is

departmentalization, which establishes how jobs are grouped together. Large organizations use a high
degree of departmentalization when defining jobs since they need to provide their large workforce with
clearly defined tasks in order to keep the organization running efficiently. Small organizations require
less departmentalization since there are a small number of people available to achieve the
organization's goals, and departmental functions often overlap.

For example, Jack Johnson is one of the night auditors at the Silver Spike Resort. He works from 11:00
pm to 6:00 am along with the night audit supervisor. Jack's job description is to audit the receipts for the
day and assist the front desk people if they get busy.

Woody Thomas is the night auditor for the Droopy Dog Motel. Woody's job is to audit the receipts for
the day, make the night deposit, take reservations over the phone, answer calls from guests, set up the
breakfast area, and make coffee in the morning. Sometimes, after a bad snow storm, he has to shovel
snow in the parking lot so that guests can get their cars out. Woody does many jobs that would typically
be handled by several departments in a large organization because he is the only employee at the motel
during his late night shift. Woody's job description is loosely defined as 'do whatever is necessary to
keep guests happy.'

How Size Affects Formalization

A third aspect of organizational structure that is affected by the size of an organization is formalization,
which determines to what degree the jobs in the organization are standardized and to what extent
members of the organization are governed by rules and regulations. Since large organizations have taller
structures, they have a longer and more structured chain of command, which results in highly structured
jobs that are governed by many rules and regulations. Small organizations are less formal and typically
have fewer rules and regulations, since they are less bureaucratic and simply do not have the manpower
to

Scale affects everything from the physical universe to the man-made construction of systems most of us
are involved in. Why shouldn’t it apply to leadership? Leading a very small team is fundamentally
different from leading a very large global corporation. Successful careers are a progression from one
scale of leadership to another, whether it’s up the ladder to the top of the corporate hierarchy or out
and down to captain a startup.

The truth is, most great leaders are challenged to show leadership at both ends of the scale all the time.
Small-scale leadership may be what you use with your management team, while large-scale leadership is
what you need with your department, business unit or company. To use a sailing analogy, good captains
have to be able to demonstrate handling skills in both small and large boats, depending on the need. In
my experience, I find that I am most successful at leadership in my own business when I consciously shift
gears between leading on a small or a large scale.

So what factors make a real difference in adapting your leadership to scale? Throughout my career, I’ve
led very small efforts like startup businesses and special projects to very large-scale efforts like major
government reforms that would ultimately affect millions of people. Here are a few things to keep in
mind.

More on digital transformation:

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7 skills of successful digital leaders

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6 hot digital transformation trends — and 4 going cold

4 things successful CIOs know about digital transformation

Digital disruption: 10 ways to survive and thrive

What is digital transformation? A necessary disruption

12 reasons why digital transformations fail

What is design thinking? The secret to digital success

At The High End: Large-Scale Leadership

Set Direction. Setting the vision, missions and strategies for a large organization requires not only
simplicity and clarity but also a sense of the helm. Just as if you were steering a large ocean liner or
tanker, you need to get the lay of the land, look farther out ahead, plan your turns and account for
delays in responsiveness. Large organizations, like large vessels, just don’t turn on a dime. I spent more
than three years helping to lead a major government reform effort. During this time, I made sure to
clarify the ultimate destination and the roadmap well in advance, and used them consistently to guide
discussions about vision and strategy. The vision was simple, and the many others involved in the effort
could articulate it in their own words without changing the meaning. We still faced tactical situations
that required adjustments, but the overall goal and path didn’t change.

Design and Delegate. Work has to be structured, accountability defined and responsibility delegated
until you’ve got the right people in place to support your scale of work. As a leader, you need to define
the organizational architecture, including your core team, the company, suppliers and business partners.
Get the right people and companies in place, and then get out of the way as quickly as possible. If you
don’t figure out how to get out of the way and still get all the work done, you’ll run aground very
quickly. One of the first things I figure out when leading a very large-scale transformation effort is who
the key players are, how to get them on board and how to make sure they succeed and get credit for the
effort.

Communicate Often and Well. As your company gets larger, communication gets exponentially more
important. Messages need to be that much clearer, with regular boosting, because they are repeated
and passed along so many times, vulnerable to noise and interference all the while. Communication--
whether with customers or employees--is the critical factor in keeping cohesion, motivating action and
setting direction on a very large scale, and it must be tightly controlled and structured. A simple way to
make that happen is to draw on a specialist. Put someone in charge of communications right away, and
then develop a plan and a regular approach to it that sticks.
Map Your Systems. A large organization is one system with many subsystems, both managerial and
technical. Where they don’t exist, you’ll need to build them. The broken ones will need fixing. The
immature or fragile ones will need upgrading. And the old ones will need replacing. Set up a means to
monitor your subsystems’ performance and maturity as well as their life cycles. Know who is
accountable for the major systems on your watch. In each of my large-scale leadership experiences, I’ve
tried to quickly create a systems map that everyone can agree on and get continuing attention focused
on the health, productivity and yield of those systems.

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At The Low End: Small-Scale Leadership

Lead By Doing. Up close and personal, a leader must be a doer and demonstrate hands-on skills and the
ability to work with the team to get things done. One of the most effective acts you can make as a
leader of a small team is to start working right away and show that you can do the work yourself.
Nothing creates credibility more quickly. When I take charge of a small team, the first thing I try to do is
get everyone involved in doing some work. I show that I’m willing to roll up my own sleeves and that we
are going to work like a real team to get some real results. The impression never fails to stick.

Focus on Goals. Goals are more important than processes and systems for a small team. Set them clearly
and early, and then determine whether you’ll need any systems at all in order to achieve them. Buy-in is
also vital on a small team, where a lone person who has not committed to the goal can create
disproportionately large problems. I make sure that goal-setting on a small team is a thoroughly
collaborative process where there is complete ownership among all the team members.

Loosen Up. A tightly bundled team needs a sense of lightness to lubricate work, especially when
pressure is high. Sir John Browne, group chief executive of British Petroleum, applies what he calls the
three H’s in leading his management team: humor, humility and humanity. Where all three of these
exist, you’re sure to find a high-functioning small team. Ever since I heard this, I’ve tried to emulate
Browne’s example.

Create Intimacy. Small teams require you to open up and develop close personal relationships. A small
team either comes together or it doesn’t. There is little in between. Take immediate opportunities to get
to know the people you are working with as whole people, not just team members. Then create
situations where all of you are together outside of a work environment to enhance the team-building
process. These simple but effective ideas are all too often ignored.
If you can adjust quickly to changes in scale, then you will have mastered an essential aspect of
leadership. Most important, you’ll soon be perceived as able to handle any challenge that may arise.
That, in turn, will increase the chance that new leadership opportunities will turn out to be yours, and
not someone else’s.

Concepts of Leadership

I used to think that running an organization was equivalent to conducting a symphony orchestra. But I
don't think that's quite it; it's more like jazz. There is more improvisation. — Warren Bennis

Good leaders are made, not born. If you have the desire and willpower, you can become an effective
leader. Good leaders develop through a never ending process of self-study, education, training, and
experience (Jago, 1982). This guide will help you through the journey.

To inspire your workers into higher levels of teamwork, there are certain things you must be, know, and,
do. These do not often come naturally, but are acquired through continual work and study. Good
leaders are continually working and studying to improve their leadership skills; they are NOT resting on
their past laurels.

Definitions of Leadership

“The meaning of a message is the change which it produces in the image.” — Kenneth Boulding in The
Image: Knowledge in Life and Society

Leadership is a process by which a person influences others to accomplish an objective and directs the
organization in a way that makes it more cohesive and coherent.

Some other popular definitions of Leadership are:

A process whereby an individual influences a group of individuals to achieve a common goal (Northouse,
2007, p3).
The U.S. military has studied leadership in depth. One of their definitions is a process by which a person
influences others to accomplish a mission (U.S. Army, 1983).

Leadership is inspiring others to pursue your vision within the parameters you set, to the extent that it
becomes a shared effort, a shared vision, and a shared success (Zeitchik, 2012).

Leadership is a process of social influence, which maximizes the efforts of others, towards the
achievement of a goal (Kruse, 2013).

Note that all the definitions have a couple of processes in common:

A person influences others through social influence, not power, to get something accomplished (bosses
use power to get things done).

Leadership requires others, who are not necessarily direct-reports, to get something accomplished.

There is a need to accomplish something.

Leaders carry out this process by applying their leadership knowledge and skills. This is called Process
Leadership (Jago, 1982). However, we know that we have traits that can influence our actions. This is
called Trait Leadership (Jago, 1982), in that it was once common to believe that leaders were born
rather than made. These two leadership types are shown in the chart below (Northouse, 2007, p5):

Trait and Process Leadership Model

While leadership is learned, a leader's skills and knowledge can be influenced by his or hers attributes or
traits, such as beliefs, values, ethics, and character. Knowledge and skills contribute directly to the
process of leadership, while the other attributes give the leader certain characteristics that make him or
her unique.

For example, a leader might have learned the skills in counseling others, but her traits will often play a
great role in determining how she counsels. A person who has empathy will make a better counselor
than a person who thinks the employees are simply there do accomplish her biddings.
Skills, knowledge, and attributes make the Leader, which is one of the Factors of Leadership.

Factors of Leadership

There are four primary factors of leadership (U.S. Army, 1983):

Leadership Factors

Leader

You must have an honest understanding of who you are, what you know, and what you can do. Also,
note that it is the followers, not the leader or someone else who determines if the leader is successful. If
they do not trust or lack confidence in their leader, then they will be uninspired. To be successful you
have to convince your followers, not yourself or your superiors, that you are worthy of being followed.

Followers

Different people require different styles of leadership. For example, a new hire requires more
supervision than an experienced employee does. A person who lacks motivation requires a different
approach than one with a high degree of motivation. You must know your people! The fundamental
starting point is having a good understanding of human nature, such as needs, emotions, and
motivation. You must come to know your employees' be, know, and do attributes.

Communication

You lead through two-way communication. Much of it is nonverbal. For instance, when you “set the
example,” that communicates to your people that you would not ask them to perform anything that you
would not be willing to do. What and how you communicate either builds or harms the relationship
between you and your followers.
Situation

All situations are different. What you do in one situation will not always work in another. You must use
your judgment to decide the best course of action and the leadership style needed for each situation.
For example, you may need to confront an employee for inappropriate behavior, but if the
confrontation is too late or too early, too harsh or too weak, then the results may prove ineffective.

Also note that the situation normally has a greater effect on a leader's action than his or her traits. This
is because while traits may have an impressive stability over a period of time, they have little
consistency across situations (Mischel, 1968). This is why a number of leadership scholars think the
Process Theory of Leadership is a more accurate than the Trait Theory of Leadership.

Various forces will affect these four factors. Examples of forces are:

your relationship with your seniors

the skills of your followers

the informal leaders within your organization

how your organization is organized

Bass' Theory of Leadership

Bass' theory of leadership states that there are three basic ways to explain how people become leaders
(Stogdill, 1989; Bass, 1990). The first two explain the leadership development for a small number of
people, while the third one is the dominant theory today. These theories are:

Some personality traits may lead people naturally into leadership roles. This is the Trait Theory.

A crisis or important event may cause a person to rise to the occasion, which brings out extraordinary
leadership qualities in an ordinary person. This is the Great Events Theory.

People can choose to become leaders. People can learn leadership skills. This is the Transformational or
Process Leadership Theory. It is the most widely accepted theory today and the premise on which this
leadership guide is based.

Management verses Leadership

While management and leadership have a great deal in common, such as working with people and
accomplishing the goals of the organization, they do differ in their primary functions (Kotter, 1990):

Management's main function is to produce order and consistency through processes, such as planning,
budgeting, organizing, staffing, and problem solving.

While leadership's main function is to produce movement and constructive or adaptive change through
processes, such as establishing direction through visioning, aligning people, motivating, and inspiring.

For more information on the differences between management and leadership see the next chapter:
The Four Pillars: Leadership, Management, Command, and Control

Boss or Leader?

Although your position as a manager, supervisor, lead, etc. gives you the authority to accomplish certain
tasks and objectives in the organization (called Assigned Leadership), this power does not make you a
leader, it simply makes you a boss. Leadership differs in that it makes the followers want to achieve high
goals (called Emergent Leadership), rather than simply ordering people around (Rowe, 2007). Thus, you
get Assigned Leadership by your position and you display Emergent Leadership by influencing people to
do great things.

Emergent Leadership vs. Assigned Leadership

Total Leadership

What makes a person want to follow a leader? People want to be guided by leaders they respect and
who have a clear sense of direction. To gain respect, they must be ethical. A sense of direction is
achieved by conveying a strong vision of the future.

When people are deciding if they respect you as a leader, they do not think about your attributes,
rather, they observe what you do so that they can determine who you really are. They use this
observation to tell if you are an honorable and trusted leader or a self-serving person who misuses
authority to look good and get promoted.
Self-serving leaders are not as effective because their employees only obey them, not follow them. They
succeed in many areas because they present a good image to their seniors... but at the expense of their
workers.

Good leadership is honorable character and selfless service to your organization. In your employees'
eyes, your leadership is everything you do that effects the organization's objectives and their well-being.

The Two Most Important Keys to Effective Leadership

According to a study by the Hay Group, a global management consultancy, there are 75 key components
of employee satisfaction (Lamb, McKee, 2004). They found that:

Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in
an organization.

Effective communication by leadership in three critical areas was the key to winning organizational trust
and confidence:

Helping employees understand the company's overall business strategy.

Helping employees understand how they contribute to achieving key business objectives.

Sharing information with employees on both how the company is doing and how an employee's own
division is doing.

So in a nutshell — you must be trustworthy and you need to be able to communicate a vision of where
the organization needs to go. The next section, Principles of Leadership, ties in closely with this key
concept.

Principles of Leadership

To help you be, know, and do, follow these eleven principles of leadership (U.S. Army, 1983). The rest of
the chapters in this Leadership guide expand on these principles and provide tools for implementing
them:

Know yourself and seek self-improvement - In order to know yourself, you have to understand your be,
know, and do, attributes. Seeking self-improvement means continually strengthening your attributes.
This can be accomplished through self-study, formal classes, reflection, and interacting with others.
Be technically proficient - As a leader, you must know your job and have a solid familiarity with your
employees' tasks.

Seek responsibility and take responsibility for your actions - Search for ways to guide your organization
to new heights. And when things go wrong, as they often tend to do sooner or later — do not blame
others. Analyze the situation, take corrective action, and move on to the next challenge.

Make sound and timely decisions - Use good problem solving, decision making, and planning tools.

Set the example - Be a good role model for your employees. They must not only hear what they are
expected to do, but also see. “We must become the change we want to see.” - Mahatma Gandhi

Know your people and look out for their well-being - Know human nature and the importance of
sincerely caring for your workers.

Keep your workers informed - Know how to communicate with not only them, but also seniors and
other key people.

Develop a sense of responsibility in your workers - Help to develop good character traits that will help
them carry out their professional responsibilities.

Ensure that tasks are understood, supervised, and accomplished - Communication is the key to this
responsibility.

Train as a team - Although many so called leaders call their organization, department, section, etc. a
team; they are not really teams... they are just a group of people doing their jobs.

Use the full capabilities of your organization - By developing a team spirit, you will be able to employ
your organization, department, section, etc. to its fullest capabilities.

Attributes of Leadership: BE, KNOW, and DO

Respected leaders concentrate on Be, Know, and Do (U.S. Army, 1983):

who they are [be] (such as beliefs and character)

what they know (such as job, tasks, and human nature)

what they do (such as implementing, motivating, and providing direction)

BE a professional. Examples: Be loyal to the organization, perform selfless service, take personal
responsibility.
BE a professional who possess good character traits. Examples: honesty, competence, candor,
commitment, integrity, courage, straightforwardness, imagination.

KNOW the four factors of leadership — follower, leader, communication, situation.

KNOW yourself. Examples: strengths and weakness of your character, knowledge, and skills.

KNOW human nature. Examples: human needs, emotions, and how people respond to stress.

KNOW your job. Examples: be proficient and be able to train others in their tasks.

KNOW your organization. Examples: where to go for help, its climate and culture, who the unofficial
leaders are.

DO provide direction. Examples: goal setting, problem solving, decision making, planning.

DO implement. Examples: communicating, coordinating, supervising, evaluating.

DO motivate. Examples: develop morale and esprit de corps in the organization, train, coach, counsel.

Environment

Every organization has a particular work environment, which dictates to a considerable degree how its
leaders respond to problems and opportunities. This is brought about by its heritage of past leaders and
its present leaders.

Goals, Values, and Concepts

Leaders exert influence on the environment via three types of actions:

The goals and performance standards they establish.

The values they establish for the organization.

The business and people concepts they establish.

Successful organizations have leaders who set high standards and goals across the entire spectrum, such
as strategies, market leadership, plans, meetings and presentations, productivity, quality, and reliability.

Values reflect the concern the organization has for its employees, customers, investors, vendors, and
surrounding community. These values define the manner in how business will be conducted.

Concepts define what products or services the organization will offer and the methods and processes for
conducting business.

These goals, values, and concepts make up the organization's personality or how the organization is
observed by both outsiders and insiders. This personality defines the roles, relationships, rewards, and
rites that take place.

Roles and Relationships

Roles are the positions that are defined by a set of expectations about behavior of any job incumbent.
Each role has a set of tasks and responsibilities that may or may not be spelled out. Roles have a
powerful effect on behavior for several reasons, to include money being paid for the performance of the
role, there is prestige attached to a role, and a sense of accomplishment or challenge.

Relationships are determined by a role's tasks. While some tasks are performed alone, most are carried
out in relationship with others. The tasks will determine who the role-holder is required to interact with,
how often, and towards what end. Normally the greater the interaction, the greater the liking. This in
turn leads to more frequent interactions. In human behavior — its hard to like someone whom we have
no contact with, and we tend to seek out those we like. People tend to do what they are rewarded for,
and friendship is a powerful reward. Many tasks and behaviors that are associated with a role are
brought about by these relationships. That is, new tasks and behaviors are expected of the present role-
holder because a strong relationship was developed in the past, by either that role-holder or by a prior
role-holder.
Culture and Climate

Culture and climate are two distinct forces that dictate how to act within an organization: .

Each organization has its own distinctive culture. It is a combination of the founders, past leadership,
current leadership, crises, events, history, and size (Newstrom, Davis, 1993). This results in rites: the
routines, rituals, and the “way we do things.” These rites impact individual behavior on what it takes to
be in good standing (the norm) and directs the appropriate behavior for each circumstance.

The climate is the feel of the organization, the individual and shared perceptions and attitudes of the
organization's members (Ivancevich, Konopaske, Matteson, 2007). On the other hand, culture is the
deeply rooted nature of the organization that is a result of long-held formal and informal systems, rules,
traditions, and customs. This differs from climate, which is a short-term phenomenon created by the
current leadership. Climate represents the beliefs about the “feel of the organization” by its members.
This individual perception of the “feel of the organization” comes from what the people believe about
the activities that occur in the organization. These activities influence both individual and team
motivation and satisfaction, such as:

How well does the leader clarify the priorities and goals of the organization? What is expected of us?

What is the system of recognition, rewards, and punishments in the organization?

How competent are the leaders?

Are leaders free to make decisions?

What will happen if I make a mistake?

Organizational climate is directly related to the leadership and management style of the leader, based
on the values, attributes, skills, and actions, as well as the priorities of the leader. Compare this to
“ethical climate” — the feel of the organization about the activities that have ethical content or those
aspects of the work environment that constitute ethical behavior. The ethical climate is the feel about
whether we do things right; or the feel of whether we behave the way we ought to behave. The
behavior (character) of the leader is the most important factor that influences the climate.

On the other hand, culture is a long-term, complex phenomenon. Culture represents the shared
expectations and self-image of the organization. The mature values that create tradition or the “way we
do things here.” Things are done differently in every organization. The collective vision and common
folklore that define the institution are a reflection of culture. Individual leaders cannot easily create or
change culture because culture is a part of the organization. Culture influences the characteristics of the
climate by its effect on the actions and thought processes of the leader. But, everything you do as a
leader will affect the climate of the organization.

For information on culture, see Long-Term Short-Term Orientation

The Process of Great Leadership

The road to great leadership that is common to successful leaders include (Kouzes, Posner, 1987):

Challenge the process - First, find a process that you believe needs to be improved the most.

Inspire a shared vision - Share your vision in words that can be understood by your followers.

Enable others to act - Give them the tools and methods to solve the problem.

Model the way - When the process gets tough, get your hands dirty. A boss tells others what to do; a
leader shows that it can be done.

Encourage the heart - Share the glory with your followers' hearts, while keeping the pains within your
own.

Even though there appears to be at least some personality traits that relate to leadership ability, the
most important approaches to understanding leadership take into consideration both the personality
characteristics of the leader and the situation in which the leader is operating. In some cases, the
situation itself is important. For instance, although Winston Churchill is now regarded as having been
one of the world’s greatest political leaders ever, he was not a particularly popular figure in Great Britain
prior to World War II. However, against the backdrop of the threat posed by Nazi Germany, his defiant
and stubborn nature provided just the inspiration many sought. This is a classic example of how a
situation can influence the perceptions of a leader’s skill. In other cases, however, both the situation and
the person are critical.

One well-known person-situation approach to understanding leadership effectiveness was developed by

Fred Fiedler and his colleagues (Ayman, Chemers, & Fiedler, 1995). The contingency model of leadership
effectiveness is a model of leadership effectiveness that focuses on both person variables and
situational variables. Fielder conceptualized the leadership style of the individual as a relatively stable
personality variable and measured it by having people consider all the people they had ever worked
with and describe the person that they least liked to work with (their least preferred coworker). Those
who indicated that they only somewhat disliked their least preferred coworker were classified as
relationship-oriented types of people, who were motivated to have close personal relationships with
others. However, those who indicated that they did not like this coworker very much were classified as
task-oriented types, who were motivated primarily by getting the job done.

In addition to classifying individuals according to their leadership styles, Fiedler also classified the
situations in which groups had to perform their tasks, both on the basis of the task itself and on the
basis of the leader’s relationship to the group members. Specifically, as shown in Figure 6.13 Fiedler
thought that three aspects of the group situation were important:

The degree to which the leader already has a good relationship with the group and the support of the
group members (leader-member relations)

The extent to which the task is structured and unambiguous (task structure)

The leader’s level of power or support in the organization (position power)

Furthermore, Fielder believed that these factors were ordered in terms of their importance, with leader-
member relationships being more important than task structure, which was in turn more important than
position power. As a result, he was able to create eight levels of the “situational favorableness” of the
group situation, which roughly range from most favorable to least favorable for the leader. The most
favorable relationship involves good relationships, a structured task, and strong power for the leader,
whereas the least favorable relationship involves poor relationships, an unstructured task, and weak
leader power.

media/image13.png Figure 6.13 The Contingency Model of Leadership Effectiveness

The contingency model is interactionist because it proposes that individuals with different leadership
styles will differ in effectiveness in different group situations. Task-oriented leaders are expected to be
most effective in situations in which the group situation is very favorable because this gives the leader
the ability to move the group forward, or in situations in which the group situation is very unfavorable
and in which the extreme problems of the situation require the leader to engage in decisive action.
However, in the situations of moderate favorableness, which occur when there is a lack of support for
the leader or when the problem to be solved is very difficult or unclear, the more relationship-oriented
leader is expected to be more effective. In short, the contingency model predicts that task-oriented
leaders will be most effective either when the group climate is very favorable and thus there is no need
to be concerned about the group members’ feelings, or when the group climate is very unfavorable and
the task-oriented leader needs to take firm control.

Still another approach to understanding leadership is based on the extent to which a group member
embodies the norms of the group. The idea is that people who accept group norms and behave in
accordance with them are likely to be seen as particularly good group members and therefore likely to
become leaders (Hogg, 2001; Hogg & Van Knippenberg, 2003). Group members who follow group norms
are seen as more trustworthy (Dirks & Ferrin, 2002) and are likely to engage in group-oriented behaviors
to strengthen their leadership credentials (Platow & van Knippenberg, 2001).

Key Takeaways

Social power can be defined as the ability of a person to create conformity, even when the people being
influenced may attempt to resist those changes.

Milgram’s studies on obedience demonstrated the remarkable extent to which the social situation and
people with authority have the power to create obedience.

One of the most influential theories of power was developed by French and Raven, who identified five
different types of power—reward power, coercive power, legitimate power, referent power, and expert
power. The types vary in terms of whether their use is more likely to create public compliance or private
acceptance.

Although power can be abused by those who have it, having power also creates some positive outcomes
for individuals.

Leadership is determined by person variables, situational variables, and by the person-situation

interaction. The contingency model of leadership effectiveness is an example of the last factor.

Exercises and Critical Thinking

Write a paragraph that expresses your opinions about the Holocaust or about another example of
obedience to authority. Consider how social psychological research on obedience informs your
interpretation of the event.

Imagine being a participant in Milgram’s experiment on obedience to authority. Describe how you think
you would react to the situation as it unfolds.

Provide an example of someone who has each of the types of power discussed in this section.

Consider a leader whom you have worked with in the past. What types of leadership did that person
use? Were they effective?
Choose a recent event that involved a very effective leader or one that involved a very poor one.
Analyze the leadership in terms of the topics discussed in this chapter.

The life of modern-day leaders is more demanding than ever. Inside their organisations, they need to
motivate a diverse group of women and men, work across organisational boundaries, improve efficiency
and achieve growth. Externally, they face a complex and globalised environment. They have to manage
the requirements of government, keep ahead of competitors, and exceed the expectations of other
stakeholders. And within this global environment, there are many cultural considerations leaders must
navigate to be effective. They must work across cultural boundaries and alongside others who, at times,
are very different from them and have different ways of getting work done.

These are difficult challenges, developing leaders who can face these challenges requires a
comprehensive response. Of course, some training needs and content can be derived from
organisational strategy and planned change initiatives. Yet other needs and challenges arise that
strategy or change initiatives do not anticipate. So how can a company ensure that training actually is
designed to meet the development needs of a specific leader?

According to a survey conducted at the Center for Creative Leadership, involving 763 leaders, there are
six leadership challenges across seven countries that we studied - India, China/Hong Kong, Egypt,
Singapore, Spain, United Kingdom and United States:

Developing managerial effectiveness: The challenge of developing the relevant skills - such as time
management, prioritisation, strategic thinking, decision-making, and getting up to speed with the job -
to be more effective at work.

Inspiring Others: The challenge of inspiring or motivating others to ensure they are satisfied with their
jobs and motivated to work smarter.

Developing Employees: The challenge of developing others, especially through mentoring and coaching.

Leading a team: The challenge of team-building, team development, and team management.
Guiding change: The challenge of managing, mobilising, understanding, and leading change, including
mitigating the impact of change, overcoming resistance to it, and dealing with employees' reaction to
change.

Managing internal stakeholders and politics: The challenge of managing relationships, politics, and
image, such as gaining managerial support and managing up and getting buy-in from other departments,
groups, or individuals.

For Indian leaders, developing managerial effectiveness tops the challenges list with 23 per cent,
followed by developing employees (19 per cent), guiding change (17 per cent), managing retention and
leading vision (14 per cent), leading a team and managing internal stakeholders and politics (13 per
cent).

Challenges for world leaders

The most frequently mentioned challenge for India, China and the United States is developing
managerial effectiveness, which requires a focus on very specific skills such as prioritisation, time
management, and decision-making.

So what can a leader do to nurture this skill? Goal-setting is important- be proactive in setting goals, and
with setting the timelines and deadlines required to meet those goals. It is also crucial to delegate more.
Delegating can, in fact, make you more productive by empowering the people to whom you have given
work.

The other three challenges - inspiring others (top challenge in Singapore), developing employees (top
challenge in Egypt), and leading a team (top challenge in Spain) - are all related to the relationship-
oriented part of leadership. This is more important in today's context of work, where organisations are
encouraging leaders to pursue and participate in relationships that develop their direct reports and
team members. The tension between task and relationship-oriented leadership has existed for decades.
Leaders must focus on production as well as demonstrate interpersonal skill.

Organisations exist in a VUCA world (volatile, uncertain, complex, and ambiguous). Their leaders need to
be adept at managing, mobilising, leading, and dealing with change. Incorporating change management
and enhancing resourcefulness should be at the forefront of leadership development initiatives.
Many times people are uncomfortable with change. Leaders can model a positive response by
transforming their own thinking and by being more open to fresh ideas. It is also critical to embrace
emotional reactions to change. Human cognition and emotion are integrated systems. When convincing
people that change is needed and desirable, it's not enough to use rational arguments. Leaders also
need to be sensitive to employees' emotions and show empathy.

Nobody can tell others what the future will be, but you definitely can tell others about the present and
what you're doing to reach the desired future state. If you reduce ambiguity, control over the situation
increases, enabling people to become proactive change agents.

Grooming top leaders

Business and public service leaders who are fully prepared to run global organisations are in short supply
and in demand as never before. Strategies to prepare today's managers for future leadership roles must
be crafted carefully and cannot be left to chance. Coursework and training are important but not
entirely sufficient. Organisations must also create systems and processes that enable managers to
enhance their leadership skills through experience. This work involves offering a clear sense of what
needs to be learned, providing colleagues who support their development efforts, and promoting
effective developmental practices, such as reflection, dialogue, intentional goal setting and feedback.

Organisations are pursuing fast-paced, global growth to improve their profitability. They are aided by
breakthroughs in telecommunication technologies that enable interconnectivity and make it easier to
create a global footprint. To succeed on a continually evolving, volatile and complex global stage,
however, organisations must complement their ambitious business growth strategies with sensible
leadership development strategies that ensure they have the talent ready to implement their plans.

Need for more and better

It is misguided to believe that some individuals are born with superior leadership talent and that we
simply need to identify and rank-order them to fill our talent pipelines. Nor is it fruitful to rely on past
selection and development practices. The context for business is changing so fast that new, carefully
crafted strategies are needed based on the best knowledge available. Leadership development cannot
be left to chance.

CCL's research shows that the challenges leaders face around the world are more similar than different.
Even though they may feel alone in facing their challenges, it is likely that one leader's challenge is the
same as others several time zones away. So take solace in the fact that you are not alone. Help others
who are facing similar challenges by offering peer feedback if you are asked for it.

For those who work in training and development, knowing the challenges leaders face can be the
catalyst for developmental initiatives aimed at strengthening their skills. Developmental initiatives are
more effective if they are in line with the challenges leaders face. So, it is possible that much of the
content could be the same no matter where the training is taking place or who is going through it.

At the same time, we also recognise that there is often a cultural appropriateness or awareness of how
to do certain things in select cultures that must always be considered carefully as well. In creating
training and development initiatives aimed at helping leaders with these challenges, it is essential to be
aware of the cultural nuances. When that understanding is blended with a robust leadership curriculum,
organisations will see their leadership capacity accelerate rapidly.

John R Ryan

President & CEO, Center for Creative Leadership

First Published: Mon, December 23 2013. 00:12 IST

ology in the globalization process.

Technology can be defined as the socialized knowledge of producing goods and services. We can
describe the term technology with five important elements: production, knowledge, instruments,
possession and change. Our definition of technology as a socialized knowledge can be better conceived
with these elements. Now we shall briefly look through them:

It has something to do with production (of goods and services). We need technology to produce
something either goods (ex: clothes, television set, cars etc.) or service (ex: banking, security, teaching
etc.) Technology improves our capacity to produce.

Technology has something to do with knowledge. Technology is a result of intellectual activities.

Therefore technology is type of intellectual property. Today technology is developed through research
and development institutions as integral parts of the universities.
 Technology has something to do with instruments. The instruments are the extensions of the human
body, whenever an instrument is used there is technology involved. The instruments indicate the usage
of technology by human beings. Instruments are mostly physical such as computers, vacuum cleaners or
pencils, but sometimes there are immaterial instruments too, such as databases or algorithms in
computer programming.

Technology has something to do with possession. Those people who possess technology also control it.
Controlling technology has usually something to do with economics and politics. Therefore we can speak
of technologically rich and poor countries and the struggle among them usually in the forms of patents,
transfers and protection of intellectual rights.

Technology has something to do with change. With technology, the world has changed drastically. Most
of the innovations from the technological advances have very important effects on the lives of peoples
of the world, which has witnessed radical changes especially after 1960’s revolutions on the
microelectronics technologies. Even there are some people who argue that the history is made by
technology as a result of their highly criticized techno-determinist view.

All these aspects of technology justify our definition of technology as the socialized knowledge of
producing goods and services, and this definition makes a clear differentiation between the terms
technology and technique (technics). Therefore if we speak about the effects of technology on
globalization, instead of techniques or technical developments we refer to technology as a social and
political term.

One may argue that the commercial activities on the Mediterranean in the Ancient times were to be
labeled as globalization. The world of these ages, although smaller in size than that of today, had
witnessed a simpler form of globalization, after the technological developments on navigation and
transportation. The invention of the script can be considered as the first technology of communication
that contributed to globalization. With the script man could transmit and store information that could
speed up further technological developments. Transportation and communication in these ages were in
parallel to each other and there were couriers, people who specifically carried and delivered mail and
other written materials by running or riding horse. However this limited amount of information
transmitted, received and stored was not sufficient for a large-scale state. Later, due to further
developments in transportation and communication it was possible to control larger areas; and the
emergence of larger empires such as Byzantine Empire had provided greater globalizations. Invention of
the print machine with moving letters by Gutenberg was the most important revolutionary technological
development, which made possible even a larger global geography. The emergence of the newspapers
marked an important era of globalization when the news both commercial and political became an
indispensable element for the decision makers. Another milestone in the history of globalization is the
invention of telegraph by Samuel Morse. Telegraph made it possible to communicate with the places
where you don’t have to go and separated the practices of communication from those of transportation.
This aspect of telegraph soon drew the attention of military ranks and telegraph became both a civilian
and military communication technology. However because the poles and the copper wires needed for a
telegraph and telephone system it was not possible to set up a properly functioning network in insecure
and instable geographies. Cyrus Field’s attempts to lay a transatlantic cable for telegraphy succeeded in
1858 and this marked the beginning of a global network. Telephone of Graham Bell in 1861 also
contributed to communication networks. Railways also networked to reach to larger distances.
Invention of radio as a wireless communication technology solved this problem and opened a new era of
globalization. With radio it became possible to communicate with places where you cannot go and even
with places where no one can travel. Hertz, Maxwell, Marconi, Tesla and several other people
contributed to the invention of radio, which soon became a military communication tool especially for
the navy. Radio of 1920’s however, turned to be a commercial communication technology; and is used
as a mass communication technology. Transportation technologies also improved with the start of the
20th Century when transatlantic ships became safer and faster and airplanes were produced. First
propeller driven passenger plane began service in 1919 between London and Paris. Jet plane and
television of 1950’s were also important steps toward greater globalizations. The first reliable
transatlantic telephone cable TAT-1 was laid in 1956. 1957 marked the most important step in the
history of globalization when USSR launched its Sputnik as the first man-made satellite. Satellites made
it possible to built a fully reliable global network, compensating the radio networks’ ionosphere fading
problem. However global networks still required stronger global networks with solid connections. The
first transatlantic fiber cable TAT-8 was laid in 1988 for faster and reliable networks.

Global networks:

Digital technologies have opened the way towards global networks. Global networks are the networks in
which all information and knowledge – also the ideology- necessary for the realization, maintenance and
the reproduction of the system – basically the capitalist system. The term “New Economy” is the
clearest explanation of how all these information, knowledge and ideology are in close relation to
capitalism.

Monopolization of economic power –or rather the emergence of an oligopoly markets- is also related to
the technology, which facilitates the monopoly tendencies in many ways. Electronic banking is at the
heart of the global networks system. Electronic Fund Transfer (EFT), is the first operating form of global
electronic financial networks. With EFT it is possible to send and receive financial assets among banks.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) is the organization to assure
a reliable global electronic financial system.

In 1973 in Brussels, supported by 239 banks in 15 countries, SWIFT starts the mission of creating a
shared worldwide data processing and communications link and a common language for international
financial transactions. In 1977, Albert, Prince of Belgium, sends the first SWIFT message. By this time the
initial group of members has grown to 518 commercial banks in 17 countries. By the end of that year
SWIFT achieved 518 customers - 22 countries - 3,400,000 messages. In 1985 a satellite link between US
and Europe established. With the utilization of sattelite technology SWIFT has developed rapidly and
this technologically well functioning electronic financial network has been accepted globally. By the end
of 1999 SWIFT had 6,797 live users in 189 countries and reached 1,059,000,000 messages.

With the introduction of VSAT (Very Small Aperture Terminal) technology utilizing the satellites, it has
been possible to establish communication networks for TNCs themselves. These networks have been re-
structured later with the introduction of IP based intranet technologies. Today it is easily possible to
establish a perfectly functioning intranet of a TNC with branches over distant parts of the globe.

The satellites today lie at the heart of the global networks. The foundation of INTELSAT in 1964, as an
international organization for satellite utilization, was an important step towards the handling of several
techno-political issues such as scarce resource satellite positions on Clark belt, an imaginary line 35780
km. Above the equator. The foundation of INTERSPUTNIK in 1971 by the Soviet allies, also improved the
communication capabilities of many non-Western countries. The foundation of EUTELSAT in 1974 was
another response by the European countries in the “space race”. Today Turkey has three satellites
positioned at 42 degrees East and 31.3 degrees East.

Internet and especially e-commerce are the terms that are basically used for justifying the recent
approach of techno-globalism. Techno-globalism can be summarized as the ideology which rationalizes
globalism on technological grounds.

The techno-globalists, most of them live in the Anglo-Saxon countries claim that technology makes
globalism irresistible. Therefore, techno-globalists wishing to dismantle all worldwide barriers to
economic or technology flows, suggest a “liberal” global economic system on technologically improved
infrastructure.

Nothing ever stays the same – especially not in the business world. Just as society changes and develops,
so do workplace challenges.

As a leader, you must be able to adapt to the technological advancements and economic forces that
directly impact your team. Here are five modern leadership challenges and how to handle them.
1. Technological advancements

The latest and greatest tech tools from a few years ago are now obsolete, and business leaders may find
it difficult to adjust. But staying ahead of the curve means using these gadgets to your advantage.

David Scarola, chief experience office of business coaching service provider The Alternative Board, noted
that Generation Y, whose presence is continually increasing in the modern workplace, is generally very
tech-savvy, especially with social media. As long as the appropriate administrative and security controls
are in place, younger workers can help you ensure that your business stays current.

"The more experienced leader may never feel comfortable with technology," said Scarola. "If you're not
[comfortable], allow your younger staff to help lead your company into a more technology-friendly
direction." [5 Simple Ways to Become a Better Leader]

2. Globalization

The internet has opened the doors for global business opportunities in many different industries. While
the increasingly global economy has given businesses the chance to enter previously untapped markets,
it also means that leaders need to be more aware of what happens in those markets.

"You're impacted by the globe, whether you're an individual consumer, a business owner or a Fortune
500 executive," said Shirley Engelmeier, author of "Becoming an Inclusive Leader" (eBookIt.com, 2014).
"What happens everywhere else affects you."

3. Demographic shifts

Along with globalization, today's business world is seeing a huge shift in demographics, Engelmeier said.
Disposable income and spending power have increased greatly for Generation Y, as well as Latino and
African-American populations in recent years, so diverse input in the workplace will be required to adapt
to this changing market.
"Who you're hiring matters for how you're tapping into these markets," Engelmeier told Business News
Daily. "The traditional makeup of who's running [major corporations] is 96 percent [older] white males.
Make sure you have representation and diversity across races, genders and ages."

4. Customer needs and motivations

Every business owner knows that the key to success is giving customers what they want, but are you
doing everything you can to find out exactly what that is? Bruce Cazenave, CEO of home fitness
solutions provider Nautilus, believes that many of today's leaders have trouble understanding the
complex, changing needs of their customers.

"Not only can business leaders get caught up in outdated policies and yesterday's successes; they can
also quickly lose sight of the emerging needs of their target audience," he said. "It's imperative to
understand the emotional and intellectual essentials of your customers better than anyone else, and
then motivate your organization to deliver innovative, relevant products and solutions that meet
[customers'] needs."

Cazenave recommended spending quality time with your customers to let their voices drive progress
and inform changes within your organization. You can do this with personal visits, consumer insight
research, trade shows, social media and other communication channels.

"We are continuously in a learning mode," Cazenave said. "When we solicit feedback in a
nonthreatening way, the information we get back is powerful and allows us to create one-of-a-kind
products and solutions."

5. Information and choice available to the workforce

With websites like Glassdoor and Rate My Employer, employees can share their opinions about their
employers, which means candidates may form an opinion of your company before contact is ever made.

"The internet has changed workplace team dynamics in ways many leaders don't fully realize," said
leadership author and speaker David Dye. "An organization's management culture, compensation and
even its interview questions are often available to anyone who wants to look. In the past, employees
might have shrugged off a poor boss and thought, 'That's just the way it is.' Today, people know better."
Creating a strong culture of collaboration and respect within a company – and consequently, a good
impression of it to the outside workforce – begins with its leaders. To build this culture, Dye advised
treating your team as if they were volunteers who are motivated by factors other than salary and
benefits.

"Recognize that your employees choose how they'll show up each day, how much energy they will
expend, and whether or not they will solve problems or ignore them," Dye said. "Wages and salary do
not directly affect these choices, but leadership, culture and internal motivations do. Act with integrity,
ensure that expectations are clear, celebrate success, hold team members accountable for their
commitments, believe in and respect your people, and equip them to succeed."