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Leadership

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Leadership

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What is leadership?
Leading people
Influencing people Commanding people Guiding people

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Leadership
Leadership is the process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. Effective leadership increases the firms ability to meet new challenges.

Leader: The person exerting the influence. Personal Leadership Style: the ways leaders choose to influence others.

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Authority, Power and Influence

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Sources of Power
Figure 13.1 Reward Power

Legitimate Power
Enable managers to be leaders & influence subordinates to achieve goals

Coercive Power

Expert Power

Referent Power

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Sources of Power
Used

to affect others behavior and get them to act in given ways.

Legitimate Power: managers authority resulting by their management position in the firm. Can be power to hire/fire workers, assign work. Reward Power: based on the managers ability to give or withhold rewards. Pay raises, bonuses, verbal praise. Effective managers use reward power to signal employees they are doing a good job.

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Sources of Power
Coercive Power: based in ability to punish others. Ranges from verbal reprimand to pay cuts to firing. Can have serious negative side effects. Expert Power: based on special skills of leader. First & middle managers have most expert power. Often found in technical ability. Referent Power: results from personal characteristics of the leader which earn workers respect, loyalty and admiration. Usually held by likable managers who are concerned about their workers.

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Empowerment
Process

of giving workers at all levels authority to make decisions and the responsibility for their outcomes. Empowerment helps managers:

Get workers involved in the decisions.

Increase worker commitment and motivation. To focus on other issues.

Effective

managers usually empower substantial authority to workers.

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Theories of Leadership

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Theories of Leadership (Models of Leadership)

1 Trait theories:

Are leadership characteristics inherently gender biased? Do such characteristics produce good leaders? Is leadership more than just bringing about change? Does this imply that leaders are born not bred?

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Theories of Leadership
Trait

theories: Is there a set of characteristics / TRAITS that determine a good leader?

Personality? Dominance and personal presence? Charisma? Self confidence? Achievement? Ability to formulate a clear vision?

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Nehru Indra Rajiv Rahul

????

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Theories of Leadership
2 Behavioural Theory of Leadership: Imply that leaders can be trained focus on the way of doing things

Structure based behavioural theories focus on the leader instituting structures task orientated Relationship based behavioural theories focus on the development and maintenance of relationships process orientated

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Managers vs. Leaders

Behavioural Theory of Leadership

Managers Do things right Plan Organize Control

Leaders Do the right things Inspire Influence Build

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Theories of Leadership
3 Transformational:

Widespread changes to a business or organisation Long term strategic planning Clear objectives Clear vision Leading by example walk the walk Efficiency of systems and processes

Requires:

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Managers vs. Leaders

Transformational

Managers Focus on things Direct Follows the rules

Leaders Focus on people Motivate Shape entities

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Theories of Leadership
4 Contingency Theories: Leadership as being more flexible different leadership styles used at different times depending on the circumstance. Suggests leadership is not a fixed series of characteristics that can be transposed into different contexts Three contingency models

A) Fiedler Model B) Houses Path-Goal C) Leader-Substitute Model

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Contingency Models
Fiedlers Model: effective leadership is contingent on both the characteristics of the leader and the situation.

Leader style: the enduring, characteristic approach to leadership a manager uses. Relationship-oriented: concerned with developing good relations with workers. Task-oriented: concerned that workers perform so the job gets done.

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Fiedlers Model

Situation characteristic: how favorable a given situation is for leading to occur. Leader-member relations: determines how much workers like and trust their leader. Task structure: extent to which workers tasks are clearcut.

Clear issues make a situation favorable for leadership.

Position Power: amount of legitimate, reward, & coercive power a leader has due to their position.

When positional power is strong, leadership opportunity becomes more favorable.

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Fiedlers Contingency Model

LeaderMember Relations Task Structure Position Power GOOD POOR

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Fiedlers Contingency Model

LeaderMember Relations Task Structure Position Power HIGH LO W

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Fiedlers Contingency Model

LeaderMember Relations Task Structure Position Power Strong (S) Weak(W)

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Fiedlers Contingency Model

LeaderMember Relations Task Structure Position Power
Kinds of Leadership Situations

GOOD
HIGH S 1 I W II LO W S III W IV HIGH S V

POOR
LOW S VII W VIII

W VI

TASK

RELATIONSHIP TASK

Relationship-oriented managers most effective in IV, V, VI, VII. Task-oriented managers most effective in I, II, III or VIII.

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Swati Sharma is very good in peoples skills. People love her presence around. But she is a perfectionist and want her way through. She thinks she is always right. What situation will suit her leadership style?

Where do think she will do well? a) Production or HR or Marketing ? b) NGO social health centre? MaxHealth Centre?

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Nazim works for Cipla. Nazim is an extremely hardworking person. He achieves his targets well in time He is apple of managements eyes. Management makes him Team Leader expecting that he will be a role model to other members But, as is always a case, others envy him and are jealous of Nizam. Nizam lacks interpersonal skills too. What do will you advise?

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Using Fiedlers Model

Can combine leader-member relations, task structure, and position power to identify leadership situations. Identifies situations where given types of managers might perform best.

Leader style is a characteristic managers cannot change. Thus, managers will be most effective when: 1) They are placed in leadership situations that suit their style. 2) The situation can be changed to fit the manager.

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Houses Path-Goal Model

Model suggests that effective leaders motivate workers to achieve by: 1) Clearly identifying the outcomes workers are trying to achieve. 2) Reward workers for high-performance and attainment. 3) Clarifying the paths to the attainment of the goals. Path-Goal is a contingency model since it proposes the steps managers should take to motivate their workers.

Based on Expectancy Motivation Theory.

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Steps to Path-Goal
1) Determine the outcomes your subordinates are trying to obtain. Can range from pay to job security or interesting work.

Once outcomes determined, manager needs to be sure they have the reward power to provide these.

2) Reward subordinates for high-performance and goal attainment with the desired outcomes. 3) Clarify the paths to goal attainment for workers, remove obstacles to performance, and express confidence in workers ability.

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Motivating with Path-goal

Path-goal identifies four behaviors leaders can use: 1) Directive behaviors: set goals, assign tasks, show how to do things. 2) Supportive behavior: look out for the workers best interest. 3) Participative behavior: give subordinates a say in matters that affect them. 4) Achievement-oriented behavior: Setting very challenging goals, believing in workers abilities. Which behavior should be used depends on the worker and the tasks.

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