Description of Module Subject Name Human Resource Management Paper Name Organizational Behaviour Module Title Leadership-theoretical framework Module

Transcription

1 Items Description of Module Subject Name Human Resource Management Paper Name Organizational Behaviour Module Title Leadership-theoretical framework Module Id 24 Pre- Requisites Basic knowledge of leadership Objectives To understand various styles and theories of leadership Keywords Leadership, styles, managerial grid, likerts s, situational, continuum

2 Quadrant-I Module: 24 - Leadership- theoretical framework Module-24: Leadership-II 1. Learning objectives 2. Introduction 3. Leadership Styles 3.1 Autocratic Leadership 3.2 Democratic Leadership 3.3 Free Rein or Laissez Faire 4. Managerial Grid 5. Situational Leadership Theory 5.1 Fiedler s Contingency Model 6. Likert s System 4 Management 7. Leadership Continuum 8. Summary 1. Learning objectives The basic objectives of this module are: To develop conceptual understanding of leadership styles To understand various theories of leadership 2. Introduction Meaning, nature, and importance of leadership has been discussed in the previous module (mdule-23). This module deals with various style like autocratic, democratic, laissez faire and theories of leadership like managerial grid, contingency model and leadership continuum. 3. Leadership styles Every leader has its own style of leadership. It is the behaviour and actions demonstrated by the leader while leading. It may depend on the nature and capabilities of the leader or demands of the situation, etc. Broadly, leadership styles can be divided in three categories. 3.1 Autocratic leadership It is also known as authoritarian style of leadership. It features centralized power and authority. Followers don t have any role in decision making. Leader himself takes the decision and insists the follower to follow his instructions. Views and concerns of the follower are not given much attention. Details of the plan may not be known to the followers. Tight control and strict supervision is required in this style of leadership, because the followers loyalty and commitment may be less. Leaders with this style are very confident about the appropriateness of the course of actions chosen, thus, want minimum influence of others on their decisions. Source: (

3 Merits and suitability of autocratic leadership There is no delay in decision making because the leader doesn t have to consult to anybody. The leader alone takes all the decisions and formulates plans and policies. Time is not wasted in consultation and discussion. Thus, when time is less and speed is required, this style of leadership is more advantageous. Apart from this, autocratic style is preferred when the followers are not so competent. Sometimes, followers don t have the capabilities required to be able to involve in decision making. If followers are uneducated or unskilled, they may prefer to be lead by a competent leader. Demerits of autocratic leadership It is regarded as negative type of leadership. Managers (Leaders) following this style insist more on the compliance and less on knowing the reason of noncompliance. The subordinates (followers) are not given much freedom to think and suggest. This may lead to wastage of talent of competent followers and frustration among the followers too. Moreover, with the growing level of education and awareness, people are rejecting this style of management. In industries too, employees like to make active participation in the management. It is difficult to make people follow rigid direction and control. Apart from this, it is difficult to prepare leaders for the future because subordinates are not provided with the environment conducive for developing management or leadership skills. Their views or suggestions are not given due weightage. Another disadvantage of this style is that incase required results are not achieved, subordinates will blame the leader only and deny any responsibility for themselves. They will associate poor performance with the poor planning and decision making of the leader. 3.2 Democratic leadership Democratic leadership is totally opposite to autocratic style of leadership. The leader adopts participative approach of decision making. All the followers are given full liberty to be involved in deciding policies, plans and course of actions. Goals are set in consultation with the followers. This approach increases the morale and commitment of the members of the group because they feel themselves important. This is considered to be a positive approach of leadership, since more emphasis is on rewards for the good performance rather than punishment for poor performance. Participative leader believes in power sharing. Decentralized power and delegation of authority are main features of democratic leadership. The leader believes in individuals and authority and responsibility is distributed according to the capabilities and competencies. Source: (

4 Merits and suitability of democratic leadership High morale and commitment of followers is the main advantage of this style of leadership. Employees gain more job satisfaction while working under a manager who adopts this particular style of leadership because they are able to use their talent and skill in a system of decentralized power and authority. Future leaders can be better prepared under this system because by participating, they get opportunities of development. This was not possible in autocratic style of leadership. The quality of the decision is better in this style because it is taken after detailed discussion with the followers. Participation also increases enthusiasm and commitment and it reduces resistance among the followers. But this style is suitable only when the follower have the required competence to participate in important decision making. They should have enough understanding of the situation. Moreover, their willingness to participate is also required. We cannot make anyone participate if he is not willing to do so. Demerits of democratic leadership Delay in decision making is one of the main disadvantages of this style of leadership. Where quick decision making is required, this style is not suitable. Participation is a time consuming affair. Moreover, participation requires followers to be reasonably competent. If they don t have the capability to understand and analyse the situation well, they are not able to participate. Then the whole idea of democratic leadership fails. One of the disadvantages is that if a leader consults too much with the followers, it may be perceived as his incompetency to make a decision. 3.3 Free Rein or Laissez Faire A leader following this style does not lead. But he leaves most of the work on the group itself. The group itself decides its goals and makes plans for their achievements. Leader himself acts only as a facilitator or a contact person. He facilitates the group from outside by bringing the information required for decision making and the resources required for accomplishment of the targets and goals. The free rein leader avoids authority and power. So there is a complete delegation of authority in free rein leadership. Source: ( Merits and suitability of Free Rein or Laissez Faire Subordinates get full opportunities for development. It is the best method in which future managers and leaders can be prepared. Job satisfaction among the followers is at best in free rein. Potentials of the subordinates can be fully utilized. This style is suitable when subordinates are educated and skilled and they have the required competence. Demerits of laissez faire

5 Leader s contribution is ignored in this style. Subordinates do not get the benefit of leader s guidance and support. Entire responsibility is with the followers or subordinates only. In case of any conflict, the subordinates may choose different directions. Source: ( 4. Managerial grid This model was developed by Robert Blake and Jane Mouton. Leadership styles are depicted on a two dimensional graph. On the two axis, two dimensions of leadership styles are shown which are: (i) concern for production and, (ii) concern for people. This model assumes that managers have two major areas of concern. One is work and another is people. The managers who are concerned about work, emphasises more on performance, results, and achievement. They want the subordinates to perform at any cost. They are not concerned with the needs and satisfaction of the people. On the other hand, the managers who are concerned for people, are less concerned about performance. They give more importance to the individuals. They spend time to know employees strengths and weaknesses. No leadership is best suitable for every situation. The managers may have to choose between the task and the people, depending on the situation. This model explains five combinations of the two concerns. Concern for production is shown on horizontal (x) axis and concern for people is shown on vertical (y) axis on a 9 point scale. These combinations are given different names and have been explained as below. Managerial Grid Source: ( Improvished management (1-1): In this style managers are indifferent about both, the task and the people. They are least concerned (1 on a 9 point scale) with both. This is the most ineffective style because neither the results are achieved nor the employees are happy. Most of the employees are unproductive, disorganised and unsatisfied. Here, the managerial responsibilities are avoided. The subordinates are left at their own to find out the ways to do the job. The manager has minimum contact with the subordinates.

6 Country club management: (1-9): On a 9 point scale, manager is least concerned (1) with the work and highly concerned (9) with the people. All the needs of the employees are fully satisfied and they have full job satisfaction. The manager is intended to get the work done by making the employees happy. Working conditions are made comfortable for workers. Task is given by keeping in mind the individual s strengths and weaknesses. The manager following this style assumes that if the employees are happy and satisfied, they will be more productive and cooperative. But in this style, lack of concern for work may lead to less control and poor direction, which in turn may have adverse effect on the performance. Middle of the road management (5-5): This is a style where equal but moderate concern (5) is shown for both task and people. Here the manager tries to make a trade-off between the two concerns. He wants to maintain a satisfactory level of performance while making the people reasonably happy and satisfied. This style may not be very useful if used for a longer period because if the manager is compromising the high performance to please the people continuously, he may have to settle for moderate performance only. This style may lead to a situation where neither performance is achieved nor the people are happy. Task management (9-1): This is most of an autocratic style of leadership. Managers are highly concerned (9) with the task and performance and least concerned (1) with people s need. It is totally opposite of country club style of leadership. People are considered only as means to achieve the results. Their needs and requirements are totally ignored. They are just expected to follow the instructions of the leaders. There is hardly any involvement of the followers in the decision making. No attention is given to the development needs of the employees. In short run, this approach may give good results in the form of high productivity and performance because of the negative motivational measurements used by the managers, but it will result in a sense of dissatisfaction among the employees, which will negatively affect their performance in long term. Managers or leaders using this style of leadership may be following Theory X of leadership. This theory assumes that employees naturally dislike work, are unmotivated and lazy and are not interested in assuming responsibilities. Thus strict control, supervision and direction are required to get the work done through them. Team management (9-9): In team management, managers are highly concerned (9) for both task and people. This is the most effective style of leadership. A leader following this style is highly passionate for the performance and at the same time he tries his best to make the people working with him happy and satisfied. Positive measures of motivation are used to make the people work hard towards the achievement of goals. According to Managerial Grid, team management is the best style of leadership because it gives maximum importance to both the work and the people. Managerial grid is one of the important models which help to understand different styles of leadership on the basis of various combinations of concerns towards task and employees. But at the same time this model is also criticized because of its inability to explain reasons behind adopting a particular style by the leader. It does not explain various factors which influence the concerns of the leaders. Moreover, it is only a conceptual type of model based on behavioural analysis of managers. It is not backed by any empirical study. 5. Situational leadership theory According to situational approach to leadership, there is not any single leadership style which is effective in all situations. But the effectiveness of various styles depends on the situation. The leader has to adopt a style which is best suitable to the prevailing situation or the environment. The situation or the environment is determined by the interaction between the leader, the followers and the task; and the leadership style should be the outcome of these situational factors. A leader has to understand the situation and act accordingly.

7 5.1 Fiedler s contingency model Fred E. Fiedler developed a contingency model of leadership. According to Fiedler, effectiveness of leadership is highly influenced by the situation. He has identified three major situational variables which influence the leadership style and its effectiveness. These are (i) leader-member relationship, (ii) task structure, and (iii) leader-position power. Leader-member relationship: Mutual relation between the leader and the follower is the most important factor which affects the effectiveness of the leader. The compatibility of the leader and the members of the group is determined by the mutual trust, respect, and acceptance. If the leader is well accepted and respected by the members, the need of formal authority is reduced. There are less conflicts and more cooperation. Better relations help the leader in getting the work done and it ensures the obedience too. Task structure: Task structure has a major influence on the leadership effectiveness. The task may be structured or unstructured. A routine and well defined task is said to be a structured one. Clear cut guidelines, well defined duties and responsibilities etc. are the characteristics of the structured task. It makes the situation more convenient and favourable for the leadership and makes it effective. The unstructured task where the work is not of routine nature, and guidelines, duties, responsibilities are not clearly defined, makes the situation unfavourable. Position power: Position of the leader in the organistion and the power and authority he/she gets by virtue of the position also affects the leader s effectiveness. Strong position power makes the situation favourable and weak power position makes it unfavourable for effective leadership. As discussed, above three factors have a great bearing on the situational favourableness for the leadership. Depending on these variables, the situation may range from favourable to unfavourable. The leader s ability to influence the behaviour of the group members depends on these three factors. Fiedler has identified eight combinations of these three factors, each having a varied degree of influence on the situation. The situational theory helps in understanding why the same leadership style is very effective in a certain situation and is completely unsuccessful in other situation. Following table given by Fiedler explains all eight combinations and their effect on the favourableness of the situation. Source: ( Situational-Theories) On the basis of the situational variables, Fiedler has suggested two styles of leadership first being task oriented and the other being relations oriented. Task oriented leadership is recommended in extreme situational conditions like very favourable and very unfavourable. When the situation is highly favourable, it allows the leader to take charge

8 and make full utilization of the situation to get the things done. Whereas when the situation is highly unfvourble, again the leader has to go for task oriented leadership. Relations oriented is recommended in a situation which is moderately favourable. Here the leader tries to make good relations with the members and aspires to convert the situation from moderately favourable to highly favourable. 6. Likert s system 4 management Rensis Likert and his associates of university of Michigan, USA studied the pattern and styles of managers in large number of organizations and developed certain concepts and approaches which are important to understand leadership behaviour. Likert identified four models which were termed as systems of management. These four systems are based on the variables like leadership, motivation, communication, interaction and influence, decision making process, goal setting and control process. Likert s four systems of management have been discussed as follows. System 1 (Exploitive Autocratic): This is an extreme autocratic leadership style. Only highly formal communication between the leader and the followers takes place. The leader himself takes all the decision and pass down the clear instruction to the followers which they have to accept without any further discussion. Involvement of the member in the decision making is absolutely absent. System 2 (Benevolent Autocratic): Carrot and Stick approach is the main feature of this style of leadership. The followers who follow the instructions and are obedient are given rewards but at the same time the members who are not cooperative and efficient get punishment. A certain amount of freedom is allowed to the followers. This is also a autocratic style of leadership but not as extreme as system1. Source: ( System 3 (Consultative): In this style work related decisions are taken in consultation with the subordinates. Subordinates are free to share their feeling and issues with the superiors. There is a two way communication between the leader and the followers. More emphasis is on the rewards and the positive motivational measures rather than on punishments and negative measures. System 4 (Democratic): Democratic style is considered as the ideal style of leadership. Here the subordinates actively participate in goal setting and decision making. Relations between the leader and the subordinates are very cordial in this style. The followers enjoy a free working environment where they can utilise their skills to the fullest. They are encouraged and motivated to assume responsibilities. 7. Leadership continuum Tannenbaum and Schmidt developed this concept of leadership continuum to describe the range of possible leadership styles. Extremes of this range are set by one style which is boss centered and another

9 which is subordinates centered. As one moves from boss centered to subordinate centered style, the degree of freedom available to the subordinates goes on increasing and degree of control by the leader goes on decreasing. Leadership Continuum Source: ( In Managerial Continuum, as one move from left to right, following seven styles are identified: i. Manager makes the decision and announces it. Subordinates don t have any say in the decision making process. They are just communicated the decision and given instructions which they have to follow. The leader exercise full control over the group. It is the extreme autocratic style of leadership ii. Manager sells the decision. In this style the decision is taken by the manager and then the subordinates are convinced to accept it. The manager justifies the decision to the subordinates and persuades them to accept it. iii. Manager presents the idea and invites questions. Here after taking the decision the views of the subordinates are invited. Still these views are not binding on the manager to change the decision. iv. Manager presents tentative decision subject to change. It gives a reasonable amount of importance to the subordinates. Their views and suggestions are considered while finalising the decision. v. Manager presents problem, invites suggestions and takes decision: decision is taken with full consultation and participation of the subordinate. It is a democratic style of leadership where the views and suggestion are considered before taking the decision. vi. Manager defines the limits and asks the group to make decision. The manager himself doesn t take the decision. But the limits within which the decision can be taken are predetermined. Here a reasonable degree of freedom is available to the subordinates. vii. Subordinate are allowed to function within the limits defined by the manager. This style ensures participation of the subordinates to the fullest. The manager defines overall limits and the subordinates are free to make decisions and function within these limits. 8. Summary There are, broadly, three styles of leadership, namely, Autocratic, Democratic, and Free-rein. Autocratic Leadership features centralized power and authority, whereas, in democratic leadership, he leader adopts participative approach of decision making. In free-rein leadership, the group itself decides its goals and makes plans for their achievements. Leader himself acts only as a facilitator or a contact person. Managerial Grid assumes that managers have two major areas of concern. One is work and another is people. Various combinations of these concerns depicts various styles of management

10 i.e. improvised, country club, middle of the road, task management and, team management. Fred E. Fiedler s contingency model identifies three major situational variables which influence the leadership style and its effectiveness. These are (i) leader-member relationship, (ii) task structure, and (iii) leaderposition power. Concept of leadership continuum describes the range of possible leadership styles. Extremes of this range are set by one style which is boss centered and another which is subordinates centered.