Chap 12 Leadership

8/19/2019 Chap 12 Leadership

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Chapter # 12 Leadership Page 1

Chapter #11: Leadership

1. Define leadership and contrast leadership and management

Exam Q: How can u differentiate the between leaders and managers?

Why managers think in short term goals and leaders look for futurization(Three Times)

What is leadership?

• Leadership is defined as the ability to influence a group towards the

achievement of a vision or set of goals.

What is Management?

• Management use of authority inherent in designated formal rank to obtain

compliance from organizational members.

Difference b/w Leaders and managers:

Subject Leader Manager

Origin A person becomes a leader

on basis of his personal

qualities.

A person becomes a manager

by virtue of his position.

Direction Creating vision and strategy.

Keeping eye on horizon.

Long-Term HorizonUse New Roads

Planning and budgeting.

Keeping eye on bottom line.

Short-Term HorizonUse Existing Roads

Functions Leader influences people to

work willingly for group

objectives.

Do the Right Things

Concern over group goals

and members satisfaction.

Facilitates Decision Making

A manager performs all five

functions of management.

Do things Right

Concern over organizational

goals.

Makes Decision

Alignment Creating shared culture and

values

Helping others grow

Reducing boundaries

Organizing and staffing

Directing and controlling

Creating boundaries.


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Relationships Focusing on people –

inspiring and motivating

followers

Based on personal power

Acting as coach, facilitator,servant

Focusing on objects –

producing/selling goods and

services

Based on position power

Acting as boss

Personal Qualities Emotional connections

(Heart)

Open mind (Mindfulness)

Listening (Communication)

Nonconformity (Courage)

Insight into self (Character)

Seeks Truth

Is ProactiveHas Transformational Style

Use Conflict and Takes Risk

Credit to team and takes

blame self.

Emotional distance

Expert mind

Talking

Conformity

Insight into organization

Establishes Truth

Is ReactiveHas Transactional Style

Avoid Conflict and Minimize

Risk

Credit to Self and blames to

other

Followers Has Followers

People follow them on

voluntary basis.

Has Subordinates

People follow manager by

virtue of job description.

Outcomes Creates change and a cultureof integrity

Wants Achievements

Maintains stability; createsculture of efficiency

Wants Results


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• Both a manager and a leader may know the business well.

• But the leader must know it better and in a different way.

• Leader must grasp the essential facts and the underlying forces that

determine the past and present trends in the business, so that leader can

generate a vision and a strategy to bring about its future.• One telling sign of a good leader is an honest attitude towards the facts,

towards objective truth.

• A subjective leader obscures (confuses) the facts for the sake of narrow

self-interest, partisan interest or prejudice.

• Leaders investigate reality, taking in the pertinent (relevant, appropriate)

factors and analyzing them carefully.

• On this basis they produce visions, concepts, plans, and programs.

• Managers adopt the truth from others and implement it without probing

for the facts that reveal reality.

• There is profound difference between leaders and managers.

• A good manager does things right. A leader does the right things.

• Doing the right things implies a goal, a direction, an objective, a vision, a

dream, a path, a reach.

• Leadership is about innovating and initiating.

• Management is about copying, about managing the status quo.

• Leadership is creative, adaptive, and agile.

• Leadership looks at the horizon, not just the bottom line.

• There is a profound difference between management and leadership, and

both are important "To manage" means "to bring about, to accomplish, to

have charge of or responsibility for, to conduct."

• "Leading" is "influencing, guiding in direction, course, action, opinion." The

distinction is crucial.


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2.

Finding and Creating Effective Leaders

How can organizations select and develop effective leader? Discuss.

Selection

• The entire process that organizations go through to fill management

positions is essentially an exercise in trying to identify individuals who will

be effective leaders.

• The search might begin by reviewing the specific requirement for the

position to be filed that is knowledge, skills, and abilities that are needed

to do the job effectively.

• Use tests that identify personal traits associated with leadership, measure

self-monitoring, and assess emotional intelligence.

• Testing is useful for identifying and selecting leaders.• Personality tests can be used to look for traits associated with leadership

extroversion, conscientiousness, and openness to experience.

• Testing to find a leadership candidate’s score on self-monitoring also makes

sense.

• High self-monitors are likely to outperform their low-scoring counterparts

because the former is better at reading situations and adjusting his or her

behavior accordingly.

• You can also asses’ candidates for emotional intelligence (EI).

• Candidates with a high EI should have an advantage especially in situations

requiring transformational leadership given the importance of social skills

to managerial effectiveness.

• Conduct personal interviews to determine candidate’s fitness with the

job.

• Interviews also provide an opportunity to evaluate leadership candidates.

For instances, we know that experience is a poor predictor of leader

effectiveness, but situation-specific experience is relevant.

• The interview performance can be used to determine if a candidate’s prior

experience fits with the situation required to be filled.

• Similarly, the interview is a reasonable good vehicle for identifying the

degree to which a candidate has leadership traits such as extroversion, self-

confidence, vision, verbal skills to frame issues, or a charismatic physical

presence.


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Training

• The knowledge of importance of situational factors in leadership success

should be used to match leaders to situations.

•

If the situation requires a change transformational qualities in the leaderare required to focus on the changed situation. If not, look for transactional

qualities.

• They may be situational factors that substitute for or neutralize leadership.

If there are, then the leadership essentially performs a figurehead or

symbolic role, and the importance of selecting the “right” person is not

particularly crucial.

• Organizations, in aggregate, spend billions of dollars, yen, and Euros on

leadership training and development.

• Recognize that all people are not equally trainable.• Teach skills that are necessary for employees to become effective leaders.

• Provide behavioral training to increase the development potential of

nascent (potential, growing) charismatic employees

• The concerned authority or selection committee should try to analyze the

situation in order to find candidates who will make a proper match.


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3.

Challenges to Effective Corporate Leadership

Exam Q: Explain and discuss some of the challenges faced for

effectiveness of corporate Leadership

• Every leader will have challenges, because it's not always easy to workthrough others to get the results you need.

• Following are the challenges faced by leaders for effectiveness of corporate

leadership:

I. Globalization

II.

Climate Change

III. Demographic Shifts

IV. Individualizations

V.

Technology Convergence

I. Globalization

• As globalization accelerates, the new business world will be characterized

by increasingly diverse teams and declining loyalty between organizations

and employees.

• Companies will need to be more alert and collaborative to manage the

global/local divide

• Their leaders will need to be flexible, internationally mobile and culturallysensitive, and they must have strong conceptual and strategic thinking

capabilities in order to manage risk and cope with the dangers and

uncertainties associated with globalization.

II. Climate Change

• The scarcity of strategic resources like water, minerals and fossil fuels could

trigger price hikes and operational costs.

• Organizations will be forced to lower their eco-footprint, adapt to rising

operational costs and restructure along sustainable lines.

• Leaders will need outstanding cognitive skills to balance the competing

demands of financial success, social responsibility and environmental

custodianship, and must act as change agents, advocating environmentally

responsible business practices.


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III.

Demographic Shifts

• The aging population means demographic imbalances are rapidly emerging,

leading to skills shortages.

•

For organizations, this means the war for talent will continue to rage.• Leaders will need to attract, motivate and retain increasingly diverse teams

and find ways to develop and promote the growing numbers of

international migrants, women and older people into leadership positions.

IV. Individualizations

• Careers are an important part of people’s quest for self-expression.

• But their loyalty is more likely to be directed toward social networks than

employers.• These trends have a huge impact on how leaders and companies motivate

people.

• Leaders will have to work harder at generating personal loyalty, through

accommodating employees’ requirements, enabling self-directed ways of

working and individualized leadership by developing relationships beyond

the direct work environment.

V.

Technology Convergence

• Ignore troublemaking technologies at your peril.

• Despite their lack of detailed knowledge, leaders must be open to – and

advocates of – visionary ideas.

• They must encourage innovation and collaboration and act as orchestrators

of expertise from within and outside the organization in order to control

the potential of converging technologies.


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4.

Summarize the conclusions of trait theories of leadership

• Theories that consider personal qualities and characteristics that

differentiate leader from non-leader.

• Initially this theory was based on studies that looked at over 80 differenttraits, which allowed almost anything to be defined as leadership.

• A breakthrough occurred when researchers began to organize the traits

into categories and this became known as the Big Five Personality

Framework where five groups of traits were found to be consistently

present among leaders.

• Some essential leadership traits include:

Ø Extroversion,

Ø Conscientiousness,

Ø Openness to experience, and

Ø Emotional intelligence (EI)

• Although the link between EI and leadership has not been fully explored.

• With the many years of research dedicated to the trait theory of leadership,

it is widely accepted that traits do predict leadership.

• However, it is more likely that they predict the emergence of a leader than

the effectiveness of a leader.

• Assumption: Leaders are born

• Goal: Select leaders

Limitations to Trait Theories:

• No universal traits found that predict leadership in all situations.

• Unclear evidence of the cause and effect of relationship of leadership and

traits.

• Better predictor of the appearance of leadership than distinguishing

effective and ineffective leaders.


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5.

Identify the central tenets and main limitations of behavioral theories of

Leadership.

• These are the theories proposing that specific behaviors differentiate

leaders from non-leaders.

Differences between theories of leadership

• Trait theory: leadership is inherent, so we must identify the leader based on

his or her traits (Leaders are born, not made).

• Behavioral theory: leadership is a skill set and can be taught to anyone, so

we must identify the proper behaviors to teach potential leaders.

Important Behavioral Studies

• Following two key studies in the area of behavioral leadership advanced

our understanding of the theory:

A. Ohio State University Studies

B.

University of Michigan Studies

A.

Ohio State University Studies

• The Ohio State studies developed questionnaires about leaders that

included self-assessments and assessments by subordinates.

• This research became the foundation for most of the future research about

leadership behavior, attitudes, and styles.

• They looked at important dimensions of leadership behavior and began

with over 1000 dimensions.

• In the end the Ohio State studies were able to narrow it down to two

dimensions:

a)

INITIATING STRUCTURE

b)

CONSIDERATION


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a)

INITIATING STRUCTURE

• The extent to which a leader is likely to define and structure his or her role

and those of sub-ordinates in the search for goal attainment such as.

Ø Assigning specific tasks,

Ø Specifying procedures to be followed,

Ø Scheduling work, and

Ø Clarifying expectations.

How to enhance Initiating Structure

• Initial Structure can be enhanced by:

i. Trying out new ideas in work group.

ii. Encouraging slow workers in the group.

iii. Emphasize meeting deadlines.

iv. Meet the group at regularly scheduled meetings.

v. See to it that group member’s work up to the capacity.

b)

CONSIDERATION

• The extent to which a leader is likely to have job relationships characterized

by mutual trust, respect for subordinate’s ideas, and regard for their

feelings.

• Leaders who score high on the consideration factor typically are friendly,

trustful, earn respect, and have a warm relationship with team members.

How to enhance consideration

• Do personal favors for group members.

• Treat all members of group as your equal.

• Be willing to make changes


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• Do little things to make it pleasant to be member of the group

• Back-up what people do under you

B.

University of Michigan Studies

The University of Michigan Studies identified two key dimensions of leadership

behavior as well.

They are similar in nature to the Ohio State findings.

However, the University of Michigan studies classified these behaviors as:

a)

Employee-Oriented Leader

b) Production-Oriented Leader

a)

Employee-Oriented Leader

• Employee-Oriented Leaders focuses on interpersonal relations between the

leader and followers;

• Taking a personal interest in the needs of employees and accepting

individual differences among members.

b) Production-Oriented Leader

• Production-oriented Leader focuses on the technical aspect of the job.

• Again, both are important for successful leadership.


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6.

Assess contingency theories of leadership by their level of support.

• While trait and behavior theories do help us understand leadership, an

important component is missing: the environment in which the leader

exists• Contingency Theory adds this additional aspect to our understanding

leadership effectiveness studies

• Three key theories are:

I. Fiedler’s Model

II.

Hersey and Blanchard’s Situational Leadership Theory

III. Path-Goal Theory

I.

Fiedler’s Model

• Fiedler’s Contingency Theory has the following parts:

A.

Measuring Leadership Style: The Least Preferred Coworker (LPC) Scale

B. Measuring the Leadership Situation

C.

Overall Findings

D. Making the Situation More Favorable for the Leader

E.

Evaluation of Fiedler’s Contingency Theory

A.

Measuring Leadership Style: The Least Preferred Coworker (LPC) Scale

• Every leader has fixed leadership style that is task motivated or relationship

motivated.

• To determine the leadership style there is instrument called LPC (least

preferred coworker).

• The LPC scale measures the degree to which a leader describes favorably or

unfavorably an employee who is not liked by leader or with whom leader

could work least well.

• A relationship-motivated leader tends to describe LPC in favorable terms

• A task-motivated leader tends to describe LPC in an unfavorable manner.


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B.

Measuring the Leadership SituationExam Q: Discuss factors involved in situational control in any

contingency?

•

Leadership situations are classified as high, moderate, or low control.• A high-control situation is the most favorable.

• Amount of control is determined by rating the situation on three

dimensions:

a) Leader-member relations

b)

Task Structure

c) Position power

a)

Leader-member relations

• A leader-member relation is the degrees of confidence, trust, and respect

subordinates have in their leader.

b) Task structure

• Task Structure is the degree to which the job assignments are processed or

formulized.

c) Position power

• Position power measures the leader’s authority to hire, fire, discipline,

promote, and give salary increases.

• Leader-member relations contribute as much to the favorability of the

leadership situation as do task structure and position power combined.


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C. Overall Findings

• Leadership effectiveness depends on matching leaders to situations in

which they can exercise more control.

• Task-motivated leaders perform the best in situations of high control and

low control.

• Relationship-motivated leaders perform the best in situations of moderate

control.

D. Making the Situation More Favorable for the Leader

• To increase control over the situation, the leader can do one or more of the

following:

Ø Improve leader-member relations

Ø Increase task structure

Ø Exercise more position power.

E. Evaluation of Fiedler’s Contingency Theory

• Fiedler’s theory has prompted extensive research.

• The model has also alerted leaders to the importance of sizing up the

situation to gain control.

• Yet the contingency theory is too complicated to have much of an impact

on most leaders.

• A major problem centers on matching the situation to the leader.


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II.

Hersey and Blanchard’s Situational Leadership Theory

• Situational Leadership Model developed by Kenneth Blanchard and

colleagues.

•

The situational leadership model explains how to match leadership style tothe capabilities of group members on a given task

• The key contingency factors are thus group member characteristics.

• SLII is designed to increase the frequency and quality of conversations

about performance and professional development between leaders and

group members so that:

• Competence is developed.

• Commitment takes place.

• Turnover among talented group members is reduced.

• SLII is particularly applicable to front-line leaders, such as supervisors andteam leaders.

• The following are the two parts of this model

A. Basics of the Model (SLII)

B.

Evaluating of the Model (SL II)

A.

Basics of the Model (SLII)

• The basis for effective leadership is managing the relationship between a

leader and a group member on a given task.

• Task behavior is the extent to which the leader spells out the duties and

responsibilities of an individual or group.

• Relationship behavior is the extent to which the leader engages in two-way

or multi-way communication.

•

As shown in following Figure, combinations of task and relationshipbehaviors are placed into four quadrants that is following four styles:

i. Tell Style

ii.

Sell Style

iii. Participative Style

iv.

Delegating Style


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i. Tell Style

Ø The “telling” style (S1) is directive. High task and low relationship (R1).

Ø Group member is unable and unwilling or insecure to accomplish task.

ii. Sell Style

Ø The “selling” style (S2) is also directive, but in a more persuasive, guiding,

manner. High task and high relationship (R2).

Ø Group member is unable and willing or confident to accomplish task.

iii.

Participative Style

Ø In the “participating” leadership style (S3) there is less direction and more

collaboration between leader and group members. High relationship and

low task (R3).

Ø Group member is able and unwilling or insecure to accomplish task.


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iv.

Delegating Style

Ø In the “delegating” style (S4), the leader delegates and is kept informed of

progress. Low relationship and low task (R4).

Ø

Group member is able and willing or confident to accomplish task.

• The most effective style depends on the readiness level of group members.

• Readiness is the extent to which a group member is able and willing to

accomplish a specific task.

• Ability is the knowledge, experience, and skill an individual or group brings

to a particular activity.

• Willingness is the extent to which an individual or group has the

confidence, commitment, and motivation to accomplish a specific task.

B. Evaluating of the Model (SL II)

• Model represents a consensus of thinking about leadership behavior in

relation to group members.

• No one style is best.

• An effective leader uses all styles, depending on the situation and the

individual group member.

• Model is challenging to apply SLII consistently because leaders must “stay

tuned” and tasks shift rapidly.

• However, the model has become a basis for leadership training as the

model builds on other explanations of leadership that emphasize the role of

task and relationship behaviors.


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III.

Path-Goal Theory

• Developed by Robert House

• The path-goal theory of leadership effectiveness specifies what the leader

must do to achieve high productivity and morale in a given situation.• In general, the theory says a leader who attempts to “clear the path” to a

goal for a group member tends to find the group member’s job satisfaction

and performance increase.

• A leader should choose a leadership style that takes into account the group

member characteristics and the task demands.

• The theory is based on the Expectancy Theory of Motivation.

• The following are the important parts of the Path-Goal Theory

A.

Matching the Leadership Style to the SituationB.

How the Leader Influences Performance

A.

Matching the Leadership Style to the Situation

• The leader should choose among four leadership styles to achieve optimum

results in a given situation.

• Two key sets of contingency factors are the type of subordinates and the

type of work they perform.

• Key subordinate characteristics include:

Ø The locus of control

Ø Experience

Ø Perceived Ability

• Environmental contingency factors are:

Ø The Task Structure

Ø The Formal Authority System

Ø The work group.

• The following describes the four styles and their appropriate circumstances.


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7. The Leader-Member Exchange Model & Teamwork (LMX)

• This model proposes that leaders develop unique working relationships

with group members that result in an in-group and an out-group.

IN GROUP OUT GROUP

• The member becomes part of a

smooth functioning team headedby formal leader

• Members have good relationship

with leader

• Members take part in important

decision making

• Members are given additional

responsibilities

• Members have inside

information• Member have higher level of

performance & Satisfaction

• Leader gives more favors

• Members are facilitated future

promotional opportunity

• Treated in accordance with a

more formal understanding ofleader-group member relations.

• Less likely to experience good

teamwork.

• Group members are treated like

hired hands.

• Group members receive little

warmth or encouragement.


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8.

Compare and contrast charismatic and transformational leadership

Charismatic Leadership Theory

• Charismatic Leadership Theory states that followers make attributions ofheroic or extraordinary leadership abilities when they observe certain

behaviours.

• A number of studies have attempted to identify the characteristics of

charismatic leaders:

i. They are Visionary

ii. They have Masterful communication skills

iii. They are Energetic and action Oriented.

iv. They Romanticize risk (Are willing to take personal risks to achieve the

vision)

v. They have Self-promoting personality

vi. They have Minimum Internal Conflict

vii. They are sensitive to follower needs

viii. They exhibit unconventional behaviors that are out of the ordinary.

How do charismatic leaders influence followers?

Articulate aVision

Create aVision

Statement

Create a newset of Values

Demonstratethe Vision


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The above shows a four-step process can help the charismatic leader utilize their

characteristics to influence their followers:

i. Articulate a Vision

ii.

Create a Vision Statementiii. Create a new set of Values

iv. Demonstrate the Vision

i.

Articulate a Vision

• First the leader articulates a long-term strategy for achieving a goal.

• This strategy should fit the vision and uniqueness of the organization.

ii.

Create a Vision Statement

• Second the leader needs to formalize that vision by creating a vision

statement.

• Charismatic leaders will often use this statement to reinforce the goal and

purpose of the organization.

• This vision is communicated in a way that expresses the leader’s

excitement and commitment to the goal.

iii.

Create a new set of Values

• Third the leader will use his words and actions to communicate a new set of

values for the followers to imitate.

• Then the charismatic leader will try to find behaviors that demonstrate

their commitment to the vision.

• They will choose behaviors that will help followers “catch” the emotions

the leader is conveying and help achieve buy-in of the followers.

iv.

Demonstrate the Vision

• Finally, the charismatic leader engages in emotion-inducing and often

unconventional behavior to demonstrate courage and conviction about the

vision to help the followers “catch” the vision.


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Transformational Leadership

• Transformational Leaders inspire followers to transcend (exceed or excel)

their self-interests for the good of the organization.

•

Idealized Influence: Provides vision and sense of mission, instills pride,

gains respect and trust.

• Inspirational Motivation: Communicates high expectations, uses symbols

to focus efforts, and expresses important purposes in simple ways.

• Intellectual Stimulation: Promotes intelligence, rationality, and careful

problem solving.

• Individualized Consideration: Gives personal attention, treats each

employee individually, coaches, and advises.

•Contingent Reward

•Management by Exception (active)

•Management by Exception(passive)

•Laissez-Faire

Transactional

•Idealized Influence

•Inspirational Motivation

•Intellectual Stimulation

•Individualized Consideration

Transformational


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How Transformational Leaders Takes Place

• Raising employee awareness.

• Helping people look beyond self-interest.

•

Helping people search for self-fulfillment.• Help people understand need for change.

• Investing Manager with a sense of urgency.

• Adopting long range and broad perspective.

• Committing to greatness.

9. Authentic Leaders and Ethical Behavior

• Authentic Leaders know:

• Who they are,

• What they believe in and value, and

• Act on those values and beliefs openly and candidly.

Followers see them as ethical

• Ethical leaders use ethical means:

• To get followers to achieve their goals, and

• The goals themselves are ethical.

Ethical Leadership

Actions:

• Work to positively change the attitudes and behaviors of employees.

• Engage in socially constructive behaviors.

•

Do not abuse power or use improper means to attain goals.


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10.Trust: The Foundation of Leadership

Trust

• A positive expectation that another will not—through words, actions, ordecisions—act opportunistically.

• Trust is a history-dependent process (familiarity) based on relevant but

limited samples of experience (risk).

Consequences of Trust

• Trust Encourages taking risk : whenever employees decide to deviate from

the usual way of doing things, or to take their supervisors word on a new

direction, they are taking a risk. In both cases, a trusting relationship can

facilitate that leap.

• Trust facilitates information sharing : When employees are sure that their

ideas / views will be will given importance / consideration, employee are

more willing to speak out and share information.

• Trusting Groups are more effective : When a leader sets a trusting tone in

a group, members are more willing to help each other and exert extra

effort for one another, which further increases trust.

• Trust enhances productivity : Employees who trust their supervisors tend

to receive higher performance ratings.

Dimensions of Trust

• Integrity: Honesty and truthfulness.

• Competence: An individual’s technical and interpersonal knowledge and

skills.

• Consistency: An individual’s reliability, predictability, and good judgment in

handling situations.

• Openness: Reliance on the person to give you the full truth.

• Loyalty: The willingness to protect and save face for another person.


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Three Types of Trust

Deterrence-based Trust

• Trust based on fear of reprisal if the trust is violated.

Knowledge-based Trust

• Trust based on behavioral predictability that comes from a history of

interaction.

Identification-based Trust

• Trust based on a mutual understanding of each other’s intentions and

appreciation of the other’s wants and desires.

Basic Principles of Trust

• Mistrust drives out trust.

• Trust begets trust.

• Growth often masks mistrust.

11.Contemporary Leadership Roles:

Mentoring

• A senior employee who sponsors and supports a less-experienced

employee (a protégé).

Mentoring Activities:

• Present ideas clearly

• Listen well• Empathize

• Share experiences

• Act as role model

• Share contacts

• Provide political guidance

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Chap 12 Leadership

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