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M A N A G E M E N T F U N D A M E N TA L S L E A D E R S H I P G R A D U AT E D I P L O M A I N M A N A G E M E N T

Th The e co comm mmon on ta task sk of of al all l l lea eader ders s is is to o INF NFLUENCE UENCE oth ther ers s to a o achie hieve e th the set e set go goal als/ta s/targe rgets ts

Definition – ‘Leadership’ “ Ability to influence people towards the attainment of goals ” – Richard L. Daft Richard L. Daft The ability will depend on the POWER Leaders need to use ‘power’ to influence others

• ‘Power’ is the poten entia tial l ca capacity acity of a person to cause a ch chan ange ge in another person • Power can have two sources  Position and Personal

• Position power refers to the power that comes (derives) from the rank/position • Managers mostly use the position power to influence their subordinates Position Power Legitimate Power Reward Power Coercive Power Power comes from a formal Power comes from the Power comes from the authority to punish or management position in an authority to reward others recommend punishment organization for their performances E.g. An employee is transferred to E.g. Marketing Manager giving another branch due his poor E.g. Human Resource Manager deciding rewards to reps who performed well conduct whom to be called for interviews Source: French and Raven (1959)

• Power comes from the personality Personal Power Expert Power Referent Power Power stems from special knowledge or skill in the Power that results from characteristics that tasks performed by subordinates command subordinates’ identification with respect and admiration for, and desire to emulate the leader E.g. Steve Jobs was recognized for his expert E.g. Mother Theresa was respected due to great knowledge and skills in electronics values in her life

MANAGER VS. LEADER MANAGER LEADER • Speak to minds of other employees • Speak to hearts of other people • Focus on systems and structure • Focus on people • Do things right (focus on resources) • Do the right things (focus on strategies) • Plan • Inspire other people to plan • Motivate • Direct • Create a vision • Establishes agendas

THEORETICAL APPROACHES TOWARDS LEADERSHIP Trait Theories Behavioural Contingency Contemporary

LEADERSHIP TRAIT THEORIES 01 Theory was developed based on the characteristics (personality) of many leaders that would differentiate them from non-leaders. Assumption: Leaders are always born and you cannot create leaders. They are born with special personality traits (characteristics) which differentiate them from ordinary people

Refer page 499 (Exhibit 15.5) Core re traits ts for suc uccess essful ful leade dersh ship p Achie ievem emen ent t drive e : High level of ambition, energy and initiative • Lead adership hip moti otivati tion on : An intense desire to lead others to reach shared goals • Honesty nesty and integri egrity ty : Trustworthy, reliable and open • Self f confide idence nce : Belief in one’s self and ability • Cogni gniti tive e ability ty : Capable of exercising good judgement, strong analytical abilities and • conceptual skills • Job relevant ant kno nowled wledge ge : Knowledge pertaining to the industry, job and company

THEORETICAL APPROACHES TOWARDS LEADERSHIP Trait Theories Behavioural Contingency Contemporary

LEADERSHIP BEHAVIOUR THEORIES 02 • Focus on the behaviour of leaders with others • Assume leaders are not born and infact leaders can be made. Further, not t he personality but the behaviour will decide whether a person is becoming a good leader or not • Defined two leadership behaviours considering the way that they deal with others: – Task-oriented behaviour (Job-oriented or work oriented) – People-oriented behaviour (Relationship oriented)

TASK VS. PEOPLE Task Oriented People Oriented Behaviour Behaviour 1. 1.

Main studies were carried out by the following 3 universities: • Ohio State University • Michigan University • Texas University (Blake & Mouton Approach)

Ohio State University Studies Identified two major behavioural styles:  Consideration - people oriented  Mindful of subordinates  Respects ideas and feelings  Establishes mutual trust with them  Initiating structure - task oriented  Task oriented  Directs work activities toward goals (reminding work to be done)

2.2 MICHIGAN STUDIES • Compared the behaviour of effective and ineffective supervisors • Em Employee-cen centered red leader ders s (more effective) – Establish high performance goals – Display supportive behaviour • Job-cent centered ered leader ders s (less effective) – Focus on meeting schedules, cost-management, and efficiency – Less concerned with goal achievement/human needs

2.3 THE LEADERSHIP (MANAGERIAL) GRID Refer page 501

CONTINGENCY APPROACHES 03 A model of leadership that describes the relationship between leadership styles and specific organisational • situations. • Key Assum umpt ption on - Lead ader ers s must st fit t to situat tuations; ons; opti tions ons to accom compl plish sh this: s: – Select elect lead ader er to fit t situ tuat ation on – Change nge situat tuation on to fit t lead ader er • Main theories are, – Hersey and Blanchard’s Situational Theory – Fiedler’s Contingency Theory – Path-Goal Theory – Substitute for Leadership

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 Goal

M A N A G E M E N T F U N D A M E N TA L S L E A D E R S H I P P A R T 2 G R A D U AT E D I P L O M A I N M A N A G E M E N T

Contingency Theories HERSEY AND BLANCHARD’S SITUATIONAL LEADERSHIP THEORY A contingency theory that focuses on followers’ rea eadi dines ess Readiness Ability Willingness

HERSEY AND BLANCHARD’S SITUATIONAL MODEL Coaching style Supporting style Directing style Entrusting style

Contingency Theories FIEDLER’S CONTINGENCY THEORY • A leader can follow either task oriented or relationship oriented style • Before deciding on the style he or she should understand the organizational situation (contingency). Situation will be favourable if all 3 following factors are positive/favourable – Leader-member relations – Task structure 3 Situational factors – Position power

HOW LEADER’S STYLE FITS THE SITUATION Task Style Task Style Relationship Style

SUBSTITUTE FOR LEADERSHIP • Situational variables can be so powerful that they actually substitute for or neutralize the need for leadership A leader is not A leader can not Situational factors needed! perform at all ! Substitutes Neutralizers • Substitute – a situational variable that makes a leadership style unnecessary or redundant e.g. group cohesiveness, professionalism, etc. • Neutralizer – a situational variable that counteracts a leadership style and prevents the leader from displaying certain behaviors e.g. leader has no position power at all

4. 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 Leadersh ship – Serva vant nt Leadersh ship – Authe hent ntic c Leadersh ship – Interactive Leadership (gender differences)

LEVEL FIVE LEADERSHIP BY JIM COLLINS Lack of ego + Desire to do the best always

SERVANT LEADERSHIP • Work exists for the development of the worker • Servant leaders transcend self-interest to serve others • Servant ant leader ers give away power, , ideas, as, inform rmati ation, on, recogn gnit ition, n, credit, it, and money

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

OTHER LEADERSHIP STYLES

TRANSACTIONAL LEADERSHIP • Tra ransacti nsactiona onal – Clarify tasks – Provide awards – Improve productivity Transactional style – Encourage hard working – Tolerant and fair-minded – Focus on management Manage with rewards and punishments More product oriented Useful style during crisis and essential changes

TRANSFORMATIONAL LEADERSHIP • Tra ransf nsformatio ormational nal – Innovative – Recognize follower needs Transformational – Inspire followers style – Create a better future – Promote significant change Achieve higher Self-confidence Team work order needs

CHARISMATIC 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 Charisma  Power to ignite – Empowering and trusting subordinates others mind