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Fundamentals Of Leadership
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Introduction
Research focuses on two key leadershipissues:
1. Why some organizational members
become leaders while others do not2. Why some leaders are successful while
others are not
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Managers Versus Leaders Managers
Persons whose influence on others is limited tothe appointed managerial authority of theirpositions to reward and punish.
Persons with managerial and personal powerwho can influence others to perform actionsbeyond those that could be dictated by thosepersons formal (position) authority alone.
Not all leaders are managers, nor are all managers leaders.
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What is Leadership?
Leadership the process of influencing others tofacilitate the attainment of organizationallyrelevant goals
One does not have to be in a formal leadershipposition in order to exert leadership behavior
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Trait Theories Of Leadership
Assumes that a finite number of individualtraits of effective leaders can be found
intelligence
personality
physical characteristics
Relies on research that relates various traitsto certain success criteria
Research findings are contradictory
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Traits Associated With Leadership
Effectiveness:
Ability to enlist cooperation
Cooperativeness
Popularity and prestige
Sociability (interpersonal skills)
Social participation
Tact, diplomacy
Adaptability
Alertness
Creativity
Personal integrity
Self-confidence
Emotional balance and control
Independence (nonconformity)
Judgment
Decisiveness
Knowledge
Fluency of speech
AbilitiesPersonalityIntelligence
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Six Traits That Differentiate
Leaders from Nonleaders1. Drive
2. Desire to lead
3. Honesty and integrity
4. Self-confidence
5. Intelligence
6. Job-relevant knowledge
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Trait Theories Of Leadership
Theories that attempt to isolate characteristics that
differentiate leaders from nonleaders
Attempts to identify traits that always
differentiate leaders from followers andeffective leaders from ineffective leaders
have failed.
Attempts to identify traits consistently
associated with leadership have been more
successful.
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Shortcomings of the Trait Theory of
Leadership The list of potentially important traits is endless
Trait test scores are not consistently predictive of
leader effectiveness
Patterns of effective behavior depend largely on the
situation (environment)
The trait approach fails to provide insight into what
the effective leader does on the job
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The Nature of Leadership
Leadership is the process of influencing
people to direct their efforts toward particular
goals.
Management
of Change
PROCESS
of Leading
People
in Organizational
CONTEXT
Task
CONTENT
External
Environment
Goals
Leadership
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The Nature of Leadership
Leadership characteristics: are those possessed by
effective leaders and includedrive, originality,
persistence, and tolerance of stress.
Personal characteristics: are personal attributes often
possessed by effective leaders and include superior
mental ability, emotional maturity, andproblems-
solving (conceptualize & analytical)skills.
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Some Personal Characteristics(Related to managerial effectiveness)
Superior Intelligence: With IQ range from 115-130.
Emotional Maturity (EQ):
Self-confidence and capable of directing subordinates ina calm, conscientious manner.
Have a sense of purpose and meaning in life. Able to cope with the demands and stress of both their
business and personal lives.
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Some Personal Characteristics(Related to managerial effectiveness) (cont)
Motivation Drive:
Motivated by the opportunity to achieve the chance for
power or control over a situation and by the need to
self-actualize.
Problem-solving skills:
See a problem as both a challenge (Risk) and an
opportunity to prove their managerial abilities (with
drive and confidence.)
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Some Personal Characteristics(Related to managerial effectiveness) (cont.)
Managerial skills:
1) Technical skills: help an individual determinehow
things work.
2) Human Skills: help an individual interact with
other people.
3) Conceptual skills: help a manger understand how
all parts of the organization or department fit
together.
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LMHLowerManager
MMMMiddleManager
HMLSeniorManager
ConceptualSkills
Human SkillsTechnical
skills
SkillsNeededat Different Hierarchical
Levels:
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Summary of Leadership & Characteristics
Goalorientation
Energy
Ability to helppeople grow
A desire to win
Willingness toaccept challenge
Administrativeability
Interpersonalskills
Tactand diplomacy Ability to enlistcooperation
Social participation
Cooperativeness
Attractiveness
Need to excelorachieve
Initiative
Task orientation
Drive forresponsibility
Responsibility inpursuit of objectives
GallupOrganizations
Leadership Talents
SocialCharacteristics
(Stogdills)
Task-RelatedCharacteristics
(Stogdills)
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Nature of Organizational Personnel
The opinions leaders have about their peopleexplain why leaders act as they do.
Douglas McGregor has provided management with
a set of assumptions: Theory X and Theory Y.
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Theory X and Theory Y
Theory X: holds that people are basically
lazy & it is necessary to use coercion andthreats of punishment to get them to work.
Assumptions:People, by nature, dislike & avoid work
Have little ambition, shun responsibility, & like
to be directed.
Want security.
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Theory X and Theory Y
Theory Y: holds that, under the right conditions, peoplewill work.
Assumptions:Natural to use mental effortat work.
If committed to objectives, people will exercise self-
direction and self-control.
Commitment is linked to therewardsfor their
achievement.
People do seek & accept responsibility, under proper work
environment.People have a wide range of capabilities in problem
solving.
Peoples intellectualpotentials are only partially utilized.
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Continuum of Leadership Behavior
Task
-Oriented
Authoritarian
On this end,
subordinates
input is small or
not wanted
Paternalistic Participative
People
-Oriented
Laissez-Faire
On this end,
subordinates
input is large
and is expected
Distinguish among four styles of leadership behavior-Authoritarian, paternalistic, participative, & laissez-faire.
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Authoritarian Leadership: tends to beheavily
work centered, with little attention to the human
element. View workers as factors of production.
Paternalistic Leadership: tends to be heavily
work centeredbut hassome consideration for thepersonnelas well.
Work hard and Ill take care of you.
[Asian Value?]
Leadership Behavior
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Participative Leadership: have highconcern
for people at work.
-Delegating authority, sharing objectives and
getting feedback from subordinates. [Westernvalue? Management of complexity?]
Laissez-faire Leadership: is characterized bya
lack of concern for either the people of the work.
Non-interference.Come close to abdicatingthe leadership position & responsibility.
[Not for the competitive business world?]
Leadership Behavior (cont.)
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Leader-Subordinate Interactions
Leader
Subordinate Subordinate Subordinate
Leader
Subordinate Subordinate Subordinate
Authoritarian Leadership
Paternalistic Leadership
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Leader
Subordinate Subordinate Subordinate
Leader
Subordinate Subordinate Subordinate
Laissez-Faire
Leadership
Participative LeadershipContinual flow of info.
from leader to subordinate
Continual exch. of info.
between leader and
subordinate and/or between
subordinates themselves.[Some degree of self-organizing
with guiding protocols?]
Occasional exch. of
info between leader
and subordinate
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Basic Rules used by Leaders:
1. Be decisive
2. Do not promise what you cannot deliver
3. Praise people in front of others for a job well
done andreprimand them in private whenthey have made a mistake
4. When possible, promote from within.
Leadership Behavior(cont.)
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Leadership Dimensions
A Leadership Grid
(Entail a concern for people and a concern for work )
High People
-Low Work
(Eager to help or
please, Sympathetic)
High People -
High Work
(To develop highteamwork, for
challenging goals)
Low Work-
Low People(Laissez-faire,
Hand-off)
High Work
-Low People(To exercise control and
have strict compliance)
Low HighConcern for Work
Low
High
Co
nce
rn
forP
eople
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Contingency Leadership StylesApplied to a Leadership Grid
Manager of a
Successful Sales
Group(Knowing that the work
are in good hands, self-
organizing)
President of a
Large Corporation(Concern for long-range
objectives & plan, & in
need of support of key core
teams)
Manager of an
R&D Lab
(R&D workers are self-motivated & derive
intrinsic satisfaction
from work)
Foreman on an
Assembly Line
(To ensure workers keepup with production
target)
Low HighConcern for Work
Low
High
Co n
ce
rnf o
rPeo
ple
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Contingency Leadership Models
What specific style of leadership is best in
which type of situation? Matching styles with environmental
demands (e.g. level of risk & uncertainty,degree of control needed..)
Contingency Approaches:1. Fiedlers Contingency Model
2. The Managerial Grid
3. Charismatic and Transformational Leadership
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Fiedlers Contingency Model
holds that leader effectiveness is
determined by leadership style and
situational variables.
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Situational Variables in Fiedlers Model
Leader-member relations: are
determined by how well the two groupsget along.
Task structure: is the degree to which theleaders job is laid out in advance.
Leader position power: is the authorityvested in a leaders position.
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The Managerial Grid-Addresses concern for productionand Concern
for people.
(1, 9)Country Club Manager
(9,9)Team Builder
(5,5)Organization Man
(1,1)Do-Nothing Manager
(9,1)Production Pusher
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Low Concern for Production9
High
High
9
1
Low
Con
cernforPeopl e
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The Managerial Grid
(1, 9) Country ClubManagerThoughtful attention to needs of
people for satisfying
relationships leads to a
comfortable, friendly
organization atmosphere & work
tempo.
Team Builder- (9,9)Work accomplishment is from
committed people;
interdependence through a
common stake in organization
purpose leads to relationships
of trust and respect.
(5,5)
Organization ManAdequate organization performance is
possible through balancing the
necessity to get out work while
maintaining morale of people at
satisfactory level.
(1,1) Do-Nothing ManagerExertion of minimum effort to
get required work done is
appropriate to sustain
organization membership.
Production Pusher -(9,1)Efficiency in operations results
from arranging conditions of work
in such a way that human elements
interfere to a minimum degree.
1
LowConcern for Production
9
High
High
9
1
Low
Concernf
orPe
ople
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Transformational vs Transactional Leadership
Transformational leaders are visionary agents
who motivate people todo things differently.
Ex. Lou Gerstner, head of IBM, has used his
transformational leadership skills to bring the
company back to its previous prominence.
Transactional leaders exchangerewards foreffort and performance.
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Transformational vs Transactional Leadership
(A systems engineer?)(An innovator?)
Relies on past knowledge to deal withfuture problems.
A lifelong learner.
Watches for mistakes/deviations fromrules & regulations & then takes action.
Leads by example.
Avoids complexity and uncertainty bydelegating responsibility to subordinates.
Able to deal with complexity,ambiguity, & uncertainty.
Tends to support status quo.A courageous change agent.
Carefully spells out rewards foraccomplishing objectives.
Give employees individual attention,coaching, and advising.
Interested in results rather than problem-solving process.
Promotes rationality and carefulproblem-solving.
Lets everyone know the objectives.
(e.g. MBO)
Communicates high expectationsand expresses purposes simply.
Uses reward and punishment systems togenerate compliance.
Instill pride, respect, & trust inemployees.
Set goals and encourages employees topursue them.
Provides a vision & a sense ofmission.
Transactional LeaderTransformational Leader
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The Emerging Leadership Challenges
As the economy changes, so do the needs forleadership skills.
Hiring qualified people and developing them throughtraining are constant challenges.
To meet the shortage of leaders, many firms aretraining their managers to develop leaders from theirwork groups.
The new approach to leadership is to develop
leaders instead of followers. (e.g. Acers internal executive programme to train
& develop many future general managers)
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The Emerging Leadership Challenges (cont) Abilities and skills needed in the future
leadership include being able to:
Create a shared visionfor everyone in thefirm,
Ensure customer satisfaction,
Live the valuesthat are critical to thecompany,
Build internal teamworkand externalpartnerships,
Think globally, appreciate culturaldiversity,
Develop and empower people,
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The Emerging Leadership Challenges (cont)
Abilities and skills needed in the futureleadership include being able to:
Be able to anticipate opportunity (& risk),
Learn how to achieve competitiveadvantage,
Embrace change, share leadership,demonstrate personal mastery of the job,
Show technological savvy, and Encourage constructive challenge.
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Key Terms in the session
Leadership
Leadership characteristics
Personal characteristics
Trait theory
Technical skills
Human skills
Conceptual skills
Theory X
Theory Y
Authoritarian leadership
Paternalistic leadership
Participative leadership
Laissez-faire leadership
Leadership dimensions
Fiedlers contingencymodel
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Key Terms in the session (contd.) Least preferred coworker scale
Leader-member relations
Task structure
Leader position power
Managerial grid
1,1, Managerial style
9,1 Managerial style
1,9 Managerial style
5,5 Managerial style
9,9 Managerial style
Transformationalleader
Transactional leader
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Questions:1.Describe the Leadership and Personal Characteristics Related to
Managerial Effectiveness--Trait Theory, Superior Intelligence,
Emotional Maturity, Motivation Drive, Problem-Solving Skills,
Managerial Skills, and Leadership Skills
2. Compare and Contrast Theory X and Theory Y
3.Distinguish Among Four Styles of LeadershipBehavior
Authoritarian, Paternalistic, Participative, and Laissez-Faire
4. Explain the Concept of Self-Leaders and theBasic Rules of
Behavior
5. Describe the Two Major Dimensions of Leadership
-Concern for People and Concern for Work
6. Distinguish among the Contingency Leadership Approaches-
Fiedlers
Contingency Model, the Managerial Grid, & Transformational
Leadership