MANAGEMENT PRINCIPLES AND STATISTICS (252 BE)

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1 MANAGEMENT PRINCIPLES AND STATISTICS (252 BE) Effectiveness of Leadership Sr Tan Liat Choon Mobile:

2 The Six Leadership Styles 1. Coercive (persuade) 2. Authoritative 3. Affiliative 4. Democratic 5. Pacesetting 6. Coaching 2

3 1. The COERCIVE Style The Coercive Style is intent on obtaining immediate compliance from employees A leader using this style likes to tightly control situations & emphasizes the negative over the positive when providing feedback 3

4 The Motto of the COERCIVE Style Do what I tell you! You MUST do this NOW! 4

5 When Using the COERCIVE Style, a Leader... Provides clear directives for employees without soliciting their input or listening to their reactions Maintains tight control of employees through frequent visits, reports, & other forms of monitoring Relies on negative corrective feedback to emphasize what is being done wrong & what must be corrected 5

6 Uses occasional attention-getting strategies (like fist-pounding on tables or name calling) to embarrass an employee into compliance Clearly indicates the negative consequences of an employee s failure to comply 6

7 2. The AUTHORITATIVE Style The Authoritative Style is intent on mobilizing people toward a vision A leader using this style typically applies a long-term thinking strategy & clearly stated direction to the organization This style relies on the skillful use of influence to gain employee buy-in to decisions 7

8 The Motto of the AUTHORITATIVE Style This is where we re going & why Come with me 8

9 When Using the AUTHORITATIVE Style, a Leader... Takes time to develop & articulate a clear vision & direction for the organization Obtains employee perspective on the vision & how to achieve it, without leaving doubt as to who is in charge Sees influencing employees as a key activity 9

10 Sets standards & monitors performance in relation to the larger vision Uses a balance of positive & negative feedback to enhance motivation 10

11 3. The AFFILIATIVE Style The Affiliative Style is intent on promoting harmony, cooperation, & good feelings among employees A leader using this style is concerned with smoothing tensions between employees or promoting social activities within various departments A leader using this style will put people first & tasks second 11

12 The Motto of the AFFILIATIVE Style People come first Everyone must get along 12

13 When Using the AFFILIATIVE Style, a Leader... Focuses on promoting friendly interactions among employees Puts task direction, goals, & standards second to meeting employee s emotional needs Takes steps to meet the needs of the whole person by working to provide such things as employee job security & work/life balance issues 13

14 Identifies opportunities for positive feedback & avoids performancerelated confrontations Sometimes rewards personal characteristics as much as job performance 14

15 4. The DEMOCRATIC Style The Democratic Style is intent on building group consensus & commitment through groupmanagement in making decisions A leader using this style likes to tightly control situations & emphasizes the negative over the positive when providing feedback 15

16 The Motto of the DEMOCRATIC Style What do you think Let s see what the group wants to do 16

17 When Using the DEMOCRATIC Style, a Leader... Gives employees full participation in setting the direction of the work & establishing the plans to achieve it Emphasizes the importance of consensus in group decision making about group processes Holds many meetings to ensure all views are aired as decision-making processes 17

18 Listens to employees for ideas Rewards group performance rather than focusing on the stars & the averages with specific feedback 18

19 5. The PACESETTING Style The Pacesetting Style is intent on setting high performance standards A leader using this style likes to get quick results from a highly motivated & competent team 19

20 The Motto of the PACESETTING Style Do as I do This is how it must be done! Watch ME! 20

21 When Using the PACESETTING Style, a Leader... Leads by example & anticipates that others understand the rationale for what is being modeled Works mostly independently rather than with team leaders Delegates demanding tasks to only outstanding performers who need little instruction 21

22 Exerts tight control over poor performers by explicit task instruction or removing work when performance is not adequate Promote the individual effort rather than teamwork 22

23 6. The COACHING Style The Coaching Style is intent on developing people for future performance A leader using this style likes to manage the growth of all employees by focusing on their strengths & weaknesses & developing action plans to support career goals 23

24 The Motto of the COACHING Style Try this How can I support you! 24

25 When Using the COACHING Style, a Leader... Helps employees identify their performance strengths & weaknesses Works with employees to establish long-range goals 25

26 Uses listening & open-ended questions to encourage employees to solve their own work problem May trade off immediate performance standards for long-term development, i.e. treating mistakes as learning opportunities 26

27 The Impact of the Leadership Styles A Harvard study done by McClelland found that: All 6 leadership styles have a measurable effect on each aspect of climate There was a direct correlation of the impact of climate on financial results such as return on sales, revenue growth, efficiency, & profitability Leaders who used styles that positively affected the climate had decidedly better results than those who did not 27

28 The Strengths & Weaknesses of the 6 Leadership Styles 28

29 The Coercive Style Strengths Effective when used in crisis situations, such as natural disasters, hostile takeovers, & significant profit losses & the company needs an immediate turnaround Effective when organizations must follow certain protocols, like safety standards, strict contractual arrangements, or legal obligations Effective when used to deal with problem employees & termination Weaknesses Creates passive resistance, rebellion, resignations, & damage to the achievement of strategic objectives Devalues employees who would be otherwise high performers Negates any creative potential from employees & reduces loyalty 29

30 The Authoritative Style Strengths Most desirable for impacting the six climate dimensions in positive ways Maximizes commitment to the organization s goals & strategies Weaknesses A leader who is too authoritative can become overbearing Can undermine the egalitarian spirit of an effective team 30

31 The Affiliative Style Strengths Can help promote team harmony, increase morale Improves communication Repairs broken trust Weaknesses Can appear rudderless & lacking in direction Can lead to lower standards Can create a sense of favoritism Builds frustration among employees who are more task-oriented 31

32 The Democratic Style Strengths Gets all employees involved in decision-making Improves employee buy-in for decisions Weaknesses Can result in very slow decisionmaking Does not work well in a crisis 32

33 The Pacesetting Style Strengths Motivates employees who are completely self-motivated Demonstrates a willingness to pitch in & work with the team to achieve results Weaknesses Employees become overwhelmed by the demands for excellence Provides no feedback Doesn t take employee buy-in into consideration & can reduce it Creates high instances of burn-out 33

34 The Coaching Style Strengths Improves performance & confidence among employees Develops long-term strengths Increases loyalty Weaknesses Doesn t always focus on immediate work-related tasks & results Doesn t deal with employee resistance well Requires a certain level of expertise to move the employee along Can result in diminished standards & procrastination 34 in solving problems

35 The Bottom Line Leaders need to make use of many styles in order to be effective The more styles a leader uses, the better Mastering the authoritative, democratic, affiliative, and coaching styles creates the best climate and business performance Leaders need to consider building teams who employ the styles they lack 35

36 THANKS YOU 36