MANAGEMENT FUNDAMENTALS. Lesson 4

Transcription

1 MANAGEMENT FUNDAMENTALS Lesson 4

2 Leadership

3 The Nature of Leadership Leading is a process of directing and influencing the task oriented activities of group members or the entire organisation Leadership is the ability to influence people towards the attainment of goals Many styles of leadership can be effective

4 Major Functions of Leadership Directing Function Communication Function Motivational Function Culture Building Function Changing Function

5 From Management to Leadership Good management is essential to organisations However, good managers must be leaders Management promotes stability, order, and problem solving Leadership motivates toward vision and change Leadership cannot replace management, there should be a balance of both

6 Managers vs. Leaders Manager Leader Focus on things Focus on people Do things right Do the right things Plan Inspire Organise Influence Direct Motivate Control Build Follows the rules Shape entities

7 Major approaches to Leadership Trait approach Behavioral approach Contingency approach Contemporary approach

8 Traits Theories of Leadership Early research on leadership focused on traits Assume leaders are born with having outstanding leadership qualities Attempt to identify common personality traits that successful leaders display. Trait theories consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders. Effective leaders possess varied traits and combine these with their strengths

9 Personal Characteristics of Leaders Physical Characteristics: Social Characteristics: Energy Sociability, interpersonal skills Physical stamina Cooperativeness Intelligence & Ability: Ability to enlist cooperation Intelligence, cognitive ability Knowledge Judgment, decisiveness Personality: Self-confidence Honesty & integrity Enthusiasm Desire to lead Independence Tact, diplomacy Work Related Characteristics: Achievement drive, desire to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity Social Background: Education Mobility

10 Criticisms of Trait approach Some good leaders do not exhibit number of traits mention above Some traits are unclear & difficult to describe Role of leaders will be influenced by their behaviour

11 Behavioural approach Focus on the behaviour of leaders Assume leaders are not born, leaders can be made Those theories isolate behaviours that differentiate effective leaders from ineffective leaders. Defined two leadership behaviours: Task-oriented behaviour People-oriented behaviour

12 Ohio State Studies Identified two major behaviours: Consideration - people oriented Mindful of subordinates Respects ideas and feelings Establishes mutual trust Initiating structure - task behaviour Task oriented Directs work activities toward goals

13 Michigan Studies Compared the behaviour of effective and ineffective supervisors Employee-centered leaders (most effective) Establish high performance goals Display supportive behaviour Job-centered leaders (not effective) Focus on meeting schedules, cost-management, and efficiency Less concerned with goal achievement/human needs

14 The Leadership (Managerial) Grid High Concern for people Low ,9 Country club management Thoughtful attention to needs of people for satisfying relationships leads to A comfortable, friendly organisation atmosphere and work tempo 1,1 Impoverished Management Exertion of minimum effort to get required work done is appropriate to sustain organisation membership 9,9 Team management Work accomplishment is from committed people, interdependence through a common stake in organisation purpose leads to relationship of trust and respect 5,5 Organisation Man Management Adequate organisation performance possible through balancing the necessity to get out work with maintaining morale of the people at a satisfactory level 9,1 Authority-Obedience Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimal degree 1 Low Concern for production High

15 Contingency Approaches A model of leadership that describes the relationship between leadership styles and specific organisational situations. Key Assumption - Leaders must fit to situations; options to accomplish this: Select leader to fit situation Change situation to fit leader Main theories are, Hersey and Blanchard s Situational Theory Fiedler s Contingency Theory Path-Goal Theory Substitute for Leadership

16 Hersey and Blanchard s Situational Leadership Theory Situational Leadership Theory (SLT) A contingency theory that focuses on followers readiness. Unable and Unwilling Unable but Willing Able and Unwilling Able and Willing Follower readiness: ability and willingness Leader: decreasing need for support and supervision Directive High Task and Relationship Orientations Supportive Participative Monitoring

17 Hersey and Blanchard s Situational Model

18 Fiedler s Contingency Theory Leader s style, is task oriented or relationship oriented Goal is to match the leader s style with organisational situation Analyze the leader s style to the favourability of the situation Leadership situations can be analyzed in terms of three elements. Leader-member relations refers to group atmosphere and members attitude toward and acceptance of the leader. Task structure refers to the extent to which tasks performed by the group are defined, involve specific procedures, and have clear, explicit goals. Position power is the extent to which the leader has formal authority over subordinates

19 How Leader s Style Fits the Situation

20 Path-Goal Theory The theory that it is the leader s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organisation.

21 The Path-Goal Theory

22 Substitute for Leadership Situational variables can be so powerful that they actually substitute for or neutralize the need for leadership. Substitute a situational variable that makes a leadership style unnecessary or redundant. Neutralizer a situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors.

23 Contemporary Approaches Leadership evolves as the needs of the organisation change Leadership has evolved with technology, economic, labour, social, and cultural changes Responding to the turbulence and uncertainty of the environment new theories of leadership are developed Four approaches for today s turbulent times: Level 5 Leadership Servant Leadership Authentic Leadership Interactive Leadership (gender differences)

24 Level-Five Leadership

25 Servant Leadership Work exists for the development of the worker Servant leaders transcend self-interest to serve others Servant leaders give away power, ideas, information, recognition, credit, and money

26 Authentic Leadership Leaders who know and understand themselves Inspire trust and commitment Staying true to one s values and beliefs Respect diverse viewpoints Espouse and act with higher order ethical values Encourage collaboration Help others learn, grow, and develop as leaders

27 Components of Authentic Leadership

28 Interactive Leadership Derived from studies of female leaders (gender differences) Consistent with Level 5 leadership Consensual and collaborative Influence derived from relationships

29 Gender Differences in Leadership Behaviors

30 Charismatic and Visionary Leadership Charismatic leaders are skilled in the art of visionary leadership Inspire and motivate people to do more A superior vision Ability to understand and empathize Empowering and trusting subordinates Visionary leaders speak to the hearts of employees to be a part of something big

31 Transformational versus Transactional Leadership Transactional Clarify tasks Initiate structure Provide awards Improve productivity Hard working Tolerant and fair-minded Focus on management Transformational Innovative Recognize follower needs Inspire followers Create a better future Promote significant change

32 Leadership Styles Autocratic: Leader makes decisions without reference to anyone else Can create de-motivation and alienation of staff May be valuable in some types of business where decisions need to be made quickly and decisively Democratic: Encourages decision making Leadership may be emphasised throughout the organisation May help motivation and involvement Workers feel ownership of the firm and its ideas Can delay decision making

33 Leadership Styles cont. Laissez-Faire: Let it be the leadership responsibilities are shared by all Can be very useful in businesses where creative ideas are important Can be highly motivational, as people have control over their working life Can make coordination and decision making time-consuming and lacking in overall direction Relies on good team work Relies on good interpersonal relations

34 Power in Organisations Ability to influence others and to resist being influenced. Control of valuable resources. Capacity to affect another persons rewards and costs. Ability to control what happens to another individual. Two bases of power Position Personal

35 Bases of Power (Position) Reward power Ability to deliver positive consequences or to remove negative consequences. May backfire if perceived as a bribe. Coercive power Ability to deliver negative consequences or to remove positive consequences. People follow commands but tend to avoid the person in the future. Legitimate power Based upon one s position in the group. Power comes with the title

36 Bases of Power (Personal) Referent power Group members look up to and want to be like the leader. Thus, they do as asked. Expert power Power resulting of leaders special knowledge or skill regarding the task performed by followers.

37 Questions?

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