LEADERSHIP Leadership is the ability to influence people towerd the attainment of goals.

. This definition captures the idea that leaders are involved with other people in the achievement of goals. There are different styles in leadership. Example: Pat McGovern treats each employee to lunch at the Ritz on his or her tenth anniversary with IDG to tell them how important they are to the success of the company. He personally thanks almost every person in every business unit once a year, which takes about a month of his time. Tom Siebel enforces dress code, sets tough goals and standards, and holds people strictly accountable. Both of them have been successful as leaders, although their styles are quite different. The concept of leadership continues to evolved as the needs of organizations changed. 3 aspects of leadership: 1. 2. 3. People Influence Goals

Leadership occurs among people, involves the use of influence, and is used to attain goals. Influence is designed to achieve some goal. It means that the relationship among people ois not passive. A significant influence on leadership styles in recent years is the turbulence and uncertainty of the environment in which most organizations are operating. Post-heroic approach focuses on the subtle, unseen and often unrewarded acts that good leaders perform every day, rather than on the grand accomplishments of celebrated business heroes. Humility means being unpretentious and modest rather than arrogant and prideful. Humble leaders dont have to be in the center of things. They quietly build strong , enduring companies by developing and supporting others rather than touting their own abilities and accomplishments. Level 5 Leaders often seem shy and unpretentious. Although they accept full responsibility for mistakes, poor results, or failures, level 5 leaders give credit for successes to other people. Level 5 Leadership: Level 1 ( highly capable individual ) Productive contributor; offers talent, knowledge, skills and good working habits as an individual employee. Level 2 ( contributing team member ) Contributes to the achievement of team goals; works effectively with others in a group. Level 3 ( competent manager ) Sets plans and organizer people for the efficiency and effective pursuit of objectives. Level 4 ( the effective executive ) Builds widespread commitment to a clear and compelling vision; stimulates people to high performance. Level 5 ( the level 5 leader ) Builds an enduring great organization through a combination of personal humility and professional reserve. The focus on minimizing personal ambition and developing others is also a hallmark of interactive leadership. Interactive Leadership means that the leader favors a consensual and collaborative process, and influence derives from relationships rather than position power and formal authority. A leadership style characterized by values such as inclusion, collaboration, relationship building and caring.

Contingency Approaches Models of leadership that explains the relationship styles and specific situations, this includes; the situational theory, leadership theory, path-goal theory, and substitutes-for-leadership concept. 1. Situational Leadership Theory Focusing on the characteristics of followers in determining appropriate leadership behavior. Additionally, a leader can adopt one of four leadership styles, based on the combination of relationship (concern for people) and task (concern for production) behavior. The appropriate style depends on the readiness of the followers. Leadership styles Telling (S1) reflects a high concern for tasks concern for people and relationships, involves explicit directions about how tasks should be accomplished. Selling (S2) the leader explains decisions and subordinates a chance to ask questions and gain understanding about work tasks. Participating (S3) Leaders shares ideas with subordinates, gives them a chance to participate facilitates decision making. Delegating (S4) Leaders provides little and little support because the leader turns over responsibility and their implementation to subordinates.

and low giving

gives clarity and

and direction

Follower Readiness High R4 Able and Willing or Confident Follower Characteristics Low readiness level Moderate level, limited skills Moderate level, higher skills but lacking confidence High level R3 Able but Unwilling or Insecure Moderate R2 Unable but Willing or Confident Low R1 Unable but Unwilling or Insecure

Appropriate Leadership Style Telling (high task-low task relationship) Selling (high task-high relationship) Participating (low task- high relationship)

Delegating (low task-low relationship)

2. Fiedlers Contingency Theory A model designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader style to the situation. Situational Favorableness: Highly Favorable situation is when leader-member relationships are positive, tasks are highly structured and the leader has formal authority over followers. In this situation, followers trust, respect, and have confidence in the leader. Highly Unfavorable situation is considered when leader-member relationships are poor, tasks are highly unstructured, and the leader are has little authority. In this situation, followers have little respect for or confidence and trust in the leader. o Diagnosing situational control o o leader-member relations (good or poor) degree of task structure (high or low) amount of position (strong or weak)

Matching leadership style and situation task oriented leader is most successful very favorable (high control) very unfavorable (low control) relationship oriented leader is most successful moderate control situation

Least Preferred Co-worker Scale High Task Oriented

Low I II III IV V VI

Relationship Oriented VII VIII

Very Favorable Situation Leader-Member Relations Task Structured Leader Power Position Good Good

Intermediately Favorable Situation Good Good Poor Poor

Very Unfavorable Situation Poor Poor 4. P ath5.

Structured Strong Weak

Unstructured Strong Weak

Structured Strong Weak

Unstructured Strong Weak

Goal Theory A contingency approach to leadership in which the leaders responsibility is to increase subordinates motivation by clarifying the behaviors necessary for task accomplishment and rewards. These include supportive, directive, achievement oriented, and participative styles. Supportive leadership leader behavior that shows concern for subordinates well being and personal needs Directive leadership occurs when the leader tells subordinates exactly what they are supposed to do. Achievement oriented occurs when the leader sets clear and challenging goals for subordinates. Participative leadership the leader consults with his or her subordinates and encourages group discussion and written suggestions. Path- Goal Situations and Preferred Leader Behaviors Situation Follower lacks self-confidence Ambiguous job Lack of job challenge Incorrect reward Leader Behavior Supportive Leadership Directive Leadership Achievement-oriented Leadership Participative Leadership Impact on Follower Increase confidence to achieve work outcome Clarify Path to reward Set high goals Clarify followers need and change rewards Increased effort: Improved satisfaction and performance Outcome

4. Substitutes for Leadership This approach suggests that situational variables can be so powerful that they actually substitute or neutralize the need for leadership. This outlines those organizational settings in which a leadership style is unimportant or unnecessary. Substitute a situational variable that makes leadership unnecessary or redundant. Neutralizer - a situational characteristic that counteracts the leadership style and prevents the leader from displaying certain behaviors

Substitutes and Neutralizers for Leadership

Variable Organizational Variables

Group cohesiveness Formalization Inflexibility Low position power Physical separation Highly structured task Automatic feedback Intrinsic satisfaction Professionalism Training/ experience

Task Oriented Leadership Substitutes for Substitutes for Neutralizers Neutralizers Neutralizers Substitutes for Substitutes for No effect on Substitutes for Substitutes for

People Oriented Leadership Substitutes for No effect on No effect on Neutralizers Neutralizers No effect on No effect on Substitutes for Substitutes for No effect on

Task characteristics

Group characteristics

POWER AND INFLUENCE Power is the potential ability to influence others behavior while influence is the effect a persons actions have on the attitudes, values, beliefs, or behavior of others. These terms are used synonymously, but the two are distinct in important ways. Within organizations, five sources of power are typical: legitimate, reward, coercive,expert and referent. In position power, the managers position gives him or her the power to reward or punish subordinates in order to influence their behavior. Legitimate power, reward power, and coercive power are all forms of position power used by managers to change employees behavior. Legitimate Power is the power that stems from a formal management position in an organization and the authority granted to it. Reward Power is the power that results from the authority bestows rewards on other people. Coercive Power is the power that stems from the authority to punish or recommend punishment. In personal power, it is most often comes from internal sources, such as a persons special knowledge or personal characteristics and this power is in contrast to the external sources of position power. Personal power is the primary tool of the leader, and it is becoming increasingly important as more businesses are run by teams of workers who are less tolerant of authoritarian management. Two types of personal power are expert power and referent power. Expert Power is the power that stems from special knowledge of or skill in the tasks performed by subordinates. However, as top management levels, leaders may lack expert power because subordinates know more about technical details than they do.Referent Power is the power that results from characteristics that command subordinates identification with, respect and admiration for, and desire to emulate leader. As a new manager, you may not have a lot of position power. Build your personal power by strengthening your knowledge and skills and by developing positive relationships. Interpersonal influence tactics will serve you well throughout your career, even as your position power increases. This is how leaders use their power to implement decisions and facilitate change. There are a lot of techniques used by leaders to influence others but these tactics fall basic categories that rely on understanding the principles that cause people to change their behavior and attitudes. There are seven principles for asserting influence. These are: use rational persuasion, make people like you, rely on the rule of reciprocity, develop allies, be assertive ask what you want, make use of higher authority and reward the behaviors you want. Use rational persuasion, in this technique, the most frequently used strategy is to use facts, data, and logical argument to persuade others that a proposed idea, request, or decision is appropriate. Rational persuasion is most successful when a leader has technical knowledge and expertise related to the issue at hand (expert power), although referent power is also used. Make people like you, in this strategy, people would rather say yes to someone they like than to someone they dont. When a leader shows consideration and respect, treats people fairly, and demonstrates trust in others, people are more likely to want to help and support the leader by doing what he or she asks. Rely on the rule of reciprocity, in this tactic, leaders share what they have whether it be time, resources, services, or emotional support. This unwritten rule of reciprocity means that leaders who do favors for others can expect that others will do favors for them in return. Develop allies, in this technique, leaders develop networks of allies, people who can help the leader accomplish his or her goals. They strive to reach a meeting of minds with others about the best approach to a problem or decision. Ask for what you want, in this strategy, leaders have to be explicit about what they want, or they arent likely to get it. Also, a clear proposal or alternative will often receive support if other options are less well-defined. Make use of higher authority, in this tactic, to get things done, sometimes leaders have to use their formal authority as well as gain the support of people at higher levels to back them up. Research has found that the key to successful use of formal authority is to be knowledgeable, credible, and trustworthy, that is to demonstrate expert and referent power as well as legitimate power. Reward the behaviors you want, in this technique, leaders can also use organizational rewards and punishments to influence others behavior. Leaders should not rely solely on reward and punishment as a means of influencing others, but combined with other tactics that involve the use of personal power, rewards can be highly effective. Research indicates that people rate leaders as more effective when they are perceived to use a variety of influence tactics. Studies have found that leaders in human resources, for example, tend to use softer, more subtle approaches such as building goodwill, using favors, and developing allies, whereas those in finance are inclined to use harder, more direct tactics such as formal authority and assertiveness.

Enduring Leadership Approaches The two timeless leadership approaches that are gaining renewed attention in todays environment of ethical scandals and weakened employee trust. Characteristics of servant leadership and moral leadership can be successfully used by leaders in all situations to make a positive difference. Servant Leadership a leader who works to fulfill subordinates needs and goals as well as to achieve the organizations larger mission. There are some persons who are identified as servant leaders, one which is David Packard, who cofounds Hewlett-Packard, made a spectacle of himself in 1949 by standing up in a roomful of business leaders and arguing that companies had a responsibility to recognize the dignity and worth of their employees and share the wealth with those who helped to create it. According to Robert Greenleaf, servant leadership is leadership upside down, because leaders transcend self-interest to serve others and the organization. Servant leaders operate in two levels. 1) For the fulfillment of their subordinates goals and needs. 2) For the realization of the larger purpose or mission of their organization.

Power ideas, information, recognition, credit for accomplishments, even money are the things which servant leaders give away. Harry Stine is one of the examples, founder of Stine Seed Company in Adel, Iowa, casually announced to his employees at the companys annual post-harvest luncheon that they have would each receive $1,000 for each year they had worked at the company. For some loyal workers, that amounted to a $20,000 bonus. Servant leaders truly value other people. They encourage participation, share power, enhance others self-worth, and unleash peoples creativity, full commitment, and natural impulse to learn and contribute. They often work in the nonprofit world because it offers a natural way to apply their leadership drive and skills to serve others but servant leaders also succeed in business. George Merck believed the purpose of a corporation was to do something useful. At Merck & Co., he insisted that people always come before profits. By insisting on serving people rather than profits, Merck shaped a company that averaged 15 percent earnings growth for an amazing 75 years. Moral Leadership is distinguishing right from wrong and choosing to do right in the practice of leadership. Sadly in recent years, too many have chosen to act from self-interest and greed rather than behaving in ways that serve and uplift others. Distinguishing the right thing to do is not always easy, and doing it is sometimes even harder. Commitments to superiors, for example, may mean a leader feels the need to hide unpleasant news about pending layoffs from followers. Moral leaders strive to find the moral answer or compromise, rather than taking the easy way out. Katherine Graham the longtime leader of The Washington Post, when she was confronted with a decision in 1971 about what to do with the Pentagon Paper, a leaked Defense Department study that showed Nixon administration deceptions about the Vietnam War. Graham admitted she was terrified, she knew she was risking the whole company on the decision, possibly inviting prosecution under the Espionage Act, and jeopardizing thousands of employees jobs. She decided to go ahead with the story, and reporters Bob Woodward and Carl Bernstein made Watergate and The Washington Post a household name. Moral leadership requires courage, the ability to step forward through fear and act on ones values and conscience. Leaders often behave unethically simply because they lack of courage. Most people want to be liked and it is easy to do the wrong thing in order to fit in or impress others. An example of which is a leader who holds his tongue in order to fit in with the guys when colleagues are telling sexually or racially offensive jokes. Moral leaders summon the fortitude to do the right thing, even if it is unpopular. Standing up for what is right is the primary way in which leaders create an environment of honesty, trust , and integrity in the organization.