Leadership Styles PDF

BMSH2001 LEADING I. Leaders versus Managers Leaders influence. Managers direct. While it may not be that black and white, leaders generally do focus on what matters and why as managers focus on how. Both use different forms of influence...

BMSH2001 LEADING I. Leaders versus Managers Leaders influence. Managers direct. While it may not be that black and white, leaders generally do focus on what matters and why as managers focus on how. Both use different forms of influence and direction at different times, but leaders have a bias to influencing by inspiring and enabling through advice and counsel while managers have a bias to command and control. Personality styles: Leaders are perceived as brilliant, but sometimes lonely; they achieve control of themselves before they try to control others; they can visualize a purpose and generate value in work; they are imaginative, passionate, non-conforming risk-takers. Managers emphasize rationality and control; are problem-solvers (focusing on goals, resources, organization structures, or people); often ask the question, "What problems have to be solved, and what are the best ways to achieve results so that people will continue to contribute to this organization?"; are persistent, tough-minded, hard-working, intelligent, analytical, tolerant, and have goodwill toward others. Attitudes toward goals: Leaders tend to be active since they envision and promote their ideas instead of reacting to current situations; shape ideas instead of responding to them; have a personal orientation toward goals; provide a vision that alters the way people think about what is desirable, possible, and necessary. Managers adopt impersonal, almost passive attitudes toward goals; decide upon goals based on necessity instead of desire and are therefore deeply tied to their organization's culture; tend to be reactive since they focus on current information. Conceptions of work: Leaders develop new approaches to long-standing problems and open issues to new options. First, they use their vision to excite people; then, redirect people on shared ideals and raise their expectations; and work from high-risk positions because of a strong dislike of mundane work. Managers view work as an enabling process; establish strategies and make decisions by combining people and ideas; continually coordinate and balance opposing views; are good at reaching compromises and mediating conflicts between opposing values and perspectives; act to limit choice; tolerate practical, mundane work because of strong survival instinct, which makes them risk-averse. Relations with others: Leaders maintain inner perceptiveness that they can use in their relationships with others; relate to people in an intuitive, empathetic way; focus on what events and decisions mean to participants; attract strong feelings of identity and difference or love and hate; create systems where human relations may be turbulent, intense, and at times even disorganized. Managers prefer working with others; a report that solitary activity makes them anxious; are collaborative; maintain a low level of emotional involvement in relationships; attempt to reconcile differences, seek compromises, and establish a balance of power; relate to people according to the role they play in a sequence of events or a decision-making process; focus on how things get done; 05 Handout 2 *Property of STI  [email protected] Page 1 of 10  BMSH2001 maintain controlled, rational, and equitable structures; may be viewed by others as inscrutable, detached, and manipulative. Self-Identity: Leaders reportedly have not had an easy time of their lives; their lives are marked by a continual struggle to find some sense of order; do not take things for granted and are not satisfied with the status quo; a report that their "sense of self" is derived from a feeling of profound separateness; may work in organizations, but they never belong to them; report that their sense of self is independent of work roles, memberships, or other social indicators of social identity; seek opportunities for change (i.e. technological, political, or ideological); support change; find their purpose to profoundly alter human, economic, and political relationships; display a life development process, which focuses on personal mastery and impels them to struggle for psychological and social change. Managers see themselves as conservators and regulators of an existing order of affairs with which they identify and from which they gain rewards; report that their role harmonizes with their ideals of responsibility and duty; perpetuate and strengthen existing institutions; display a life development process that focuses on socialization, which prepares them to guide institutions and to maintain the existing balance of social relations. II. Nature of Directing It is a process in which the managers instruct, guide, communicate, inspire, motivate, and oversee the performance of the workers to achieve predetermined goals. It is said to be the heart of the management process. Planning, organizing, and staffing have no importance if the directing function does not take place. It is a continuous process initiated at the top level and flows to the bottom through the organizational hierarchy. Its nature can be briefly explained as follows: Pervasive Function – Directing often transpires from the top level of management to lower-level subordinates of the organization. For instance, in a centralized organization (where decision- making transpires from top to bottom management) managers provide orders to the supervisors, while the supervisors guide and direct their subordinates. Executive Function – Directing function is carried out by all managers and executives at all levels throughout the organization. A subordinate always gets instructions from his/her superior only. Human Factor – Directing function is related to human beings unlike other four (4) factors of production, i.e. money, machines, material, and methods. Since the human factor is complex and behavior is unpredictable, direction function becomes important. Continuous Activity – Directing is a continuous activity as it continues throughout the life of an organization. A manager has to give direction to his/her subordinates, but the process will not end with giving directions as s/he has to guide and motivate them continuously so that the desired goals can be achieved. Creative Activity – Directing function helps in converting plans into performance. A manager needs to have creative and innovative thinking so that s/he can guide and motivate his/her subordinates with new ideas and techniques and make their performance better. Delegate Function – Directing function involves assigning authority to other members of the organization to accomplish a definite set of objectives. Flow from Top to Bottom Level – Directing function includes providing instructions that flow from top to bottom. It starts with top-level management and ends with subordinates at the lower level. 05 Handout 2 *Property of STI  [email protected] Page 2 of 10  BMSH2001 Facilitates Coordination – Directing brings harmony among employees and balance between all the activities of an organization. Managers have to provide directions to their respective departments and subordinates accordingly and work towards the achievement of organizational objectives. Dual Objective – Directing function works in dual form. On one hand, it aims at getting things done by the subordinates. On the other hand, it provides an opportunity for the managers to prove their leadership qualities. Psychological Factor – Directing function includes dealing with people’s feelings, emotions, etc. While giving direction to the subordinates, the manager has to take care that these feelings and emotions should not get hurt. III. Theories of Motivation in Management Motivation is the answer to the question “Why we do what we do?” Motivation theories can be classified broadly into two (2) different perspectives: Content and Process. Content theories deal with “what” motivates people and are concerned with individual needs and goals. This includes the following theories: Abraham Maslow’s Hierarchy of Needs According to this theory, an individual strives to seek a higher need when lower needs are fulfilled. Once a lower-level need is satisfied, it no longer serves as a source of motivation. Needs are motivators only when they are unsatisfied. In the first level, physiological needs exist, which include the most basic needs for humans to survive such as air, water, and food. In the second level, safety and security needs exist, which include personal security, health, well-being, and safety against accidents remain. In the third level, social or belonging needs exist, where people need to feel a sense of belonging and acceptance. It is about relationships, families, and friendship. In the fourth level, ego or self-esteem needs remain. This is where people look to be respected and aims for self-respect. Achievement needs and respect for others are at these levels. In the top-level, self-actualization needs exist. This level of need pertains to realizing the person’s full potential. Alderfer’s ERG Theory In 1969, Clayton P. Alderfer simplified Maslow’s theory by categorizing the hierarchy of needs into three (3) categories: Physiological and Safety needs are merged in Existence Needs. These include basic needs such as food, air, water, and good working conditions. Belonging needs is named as Relatedness Needs. These refer to social and interpersonal needs. Self-esteem and Self-actualization needs are merged in Growth Needs. These involve the desire to make personal contributions to the organization’s achievement of goals. Herzberg’s Two (2) Factor Theory Frederick Herzberg introduced his Two (2) Factor Theory in 1959. He suggested that there are two (2) kinds of factors that affect motivation, and they do it in different ways: Hygiene factors – A series of hygiene factors create dissatisfaction if individuals perceive them as inadequate or inequitable, yet individuals will not be significantly motivated if these factors 05 Handout 2 *Property of STI  [email protected] Page 3 of 10  BMSH2001 are viewed as adequate or good. Hygiene factors are extrinsic and include factors such as salary or remuneration, job security, and working conditions. Motivators – They are intrinsic factors such as a sense of achievement, recognition, responsibility, and personal growth. The hygiene factors determine dissatisfaction, and motivators determine satisfaction. Herzberg's theory conforms to satisfaction theories, which assert that “a satisfied employee tends to work in the same organization but this satisfaction does not always result in better performance”. In other words, satisfaction does not correlate with productivity. McClelland’s Achievement Need Theory In his 1961 book entitled, “The Achieving Society”, David McClelland identified three (3) basic needs that people develop and acquire from their life experiences. Need for achievement – The person who has a high need for achievement seeks achievement and tries to attain challenging goals. There is a strong need for feedback as to achievement and progress, and a need for a sense of accomplishment. The person who has a high achievement need likes to take personal responsibility. Need for affiliation – The person who has a high need for affiliation needs harmonious relationships with people and needs to be accepted by other people. (People-oriented rather than task-oriented). Need for power – The person who requires power wants to direct and command other people. Most managers have a high need for power. Although these categories of needs are not exclusive, generally, individuals develop a dominant bias or emphasis on one of the three (3) needs. Entrepreneurs usually have a high degree of achievement needs. Incentive Theory Incentive theory suggests that employees will increase his/her effort to obtain the desired reward. This is based on the general principle of reinforcement. The desired outcome is usually “money”. This theory is coherent with the early economic theories where man is supposed to be rational and forecasts are based on the principle of “economic man”. Process theories deal with the “process” of motivation and are concerned with “how” motivation occurs. This includes the following theories: Expectancy Theory This theory argues that humans act according to their conscious expectations that a particular behavior will lead to specific desirable goals. Victor H. Vroom, developed the Expectancy Theory in 1964, producing a systematic explanatory theory of workplace motivation. It asserts that the motivation to behave in a particular way is determined by an individual’s expectation that behavior will lead to a particular outcome, multiplied by the preference or valence that a person has for that outcome. The three (3) components of the Expectancy Theory are: Expectancy (E P) – The belief of the person that his/her effort (E) will result in the attainment of desired performance (P) goals. 05 Handout 2 *Property of STI  [email protected] Page 4 of 10  BMSH2001 Instrumentality (P  R) – The belief of the person that s/he will receive a reward (R) if the performance (P) expectation is met. Valence – The value of the reward according to the person. For example, “Is the reward attractive to the person?” Goal Theory Edwin Locke proposed Goal Theory in 1968, which proposes that motivation and performance will be high if individuals set specific goals, which are challenging, but accepted; and where feedback is given on performance. This theory works on the following concepts (Medina, 2011): Specific goals would result in better performance than general goals. Thus, goal specificity plays an important role in motivation. Goal specificity refers to quantifiable goals such as increasing sales by 10% next month or achieving a 90% grade for a certification exam. The difficulty of goals has a direct relationship to the performance of the individual. This means that as the goal becomes more challenging, the employee would be more eager to perform better to attain the goal. Goal setting requires certain conditions to work: (1) the individual has the abilities and resources for the achievement of the goal, and (2) the individual is committed to achieving the goal. Performance feedback and participation should be linked to goal setting. These would allow the individuals to know the direction and areas for improvement in their performances towards achieving the goals. Adams’ Equity Theory Developed by John Stacey Adams in 1963, Equity Theory suggests that if the individual perceives that the rewards received are equitable—i.e. fair or just in comparison with those received by others in similar positions in or outside the organization then, the individual feels satisfied. The equity theory is composed of three (3) key elements: Outputs – These refer to the rewards, benefits, accomplishments, and recognition that an employee may receive from performing a task or role. Inputs – These include effort, time, experience, skills, traits that an employee invests in performing a task or role on which he/she would expect to have outputs in return. Comparison – This is the evaluation of an employee about other workers’ inputs invested and outputs received from doing the same task or role. IV. Leadership Styles Leadership style is the manner and approach of providing direction, implementing plans, and motivating people. As seen by the employees, it includes the total pattern of explicit and implicit actions performed by their leader. The first major study of leadership styles was performed in 1939 by Kurt Lewin who led a group of researchers to identify different styles of leadership. This early study has remained quite influential as it established the three (3) major leadership styles. Authoritarian or autocratic – The leader tells his or her employees what to do and how to do it, without getting their advice. Participative or democratic – The leader includes one or more employees in the decision-making process, but the leader normally maintains the final decision-making authority. Delegative or laissez-fair – The leader allows the employees to make the decisions, however, the leader is still responsible for the decisions that are made. 05 Handout 2 *Property of STI  [email protected] Page 5 of 10  BMSH2001 Although good leaders use all three (3) styles, with one (1) of them normally dominant, bad leaders tend to stick with one (1) style, normally autocratic. Authoritarian or Autocratic Leadership This style is used when leaders tell their employees what they want to be done and how they want it accomplished, without getting the advice of their followers. Some of the appropriate conditions to use this style is when you have all the information to solve the problem, you are short on time, and/or your employees are well motivated. Some people tend to think of this style as a vehicle for yelling, using demeaning language, and leading by threats. This is not the authoritarian style, rather it is an abusive, unprofessional style called “bossing people around.” It has no place in a leader's repertoire. The authoritarian style should normally only be used on rare occasions. If you have the time and want to gain more commitment and motivation from your employees, then you should use the participative style. Participative or Democratic Leadership This style involves the leader including one or more employees in the decision-making process (determining what to do and how to do it). However, the leader maintains the final decision-making authority. Using this style is not a sign of weakness, rather it is a sign of strength that your employees will respect. This is normally used when you have part of the information, and your employees have other parts. A leader is not expected to know everything—this is why you employ knowledgeable and skilled people. Using this style is of mutual benefit as it allows them to become part of the team and allows you to make better decisions. Delegative or Laissez-faire Leadership In this style, the leader allows the employees to make decisions. However, the leader is still responsible for the decisions that are made. This is used when employees can analyze the situation and determine what needs to be done and how to do it. You cannot do everything. You must set priorities and delegate certain tasks. This is not a style to use so that you can blame others when things go wrong, rather this is a style to be used when you fully trust and have confidence in the people below you. Do not be afraid to use it; however, use it wisely. A good leader uses all three (3) styles, depending on what forces are involved between the followers, the leader, and the situation. Some examples include: Using an authoritarian style on a new employee who is just learning the job. The leader is competent and a good coach. The employee is motivated to learn a new skill. The situation is a new environment for the employee. Using a participative style with a team of workers who know their jobs. The leader knows the problem but does not have all the information. The employees know their jobs and want to become part of the team. 05 Handout 2 *Property of STI  [email protected] Page 6 of 10  BMSH2001 Using a delegative style with a worker who knows more about the job than you do. You cannot do and know everything and the employee needs to take ownership of his/her job. Also, this allows you to be more productive. Using all three (3) styles: Telling your employees that a procedure is not working correctly and a new one must be established (authoritarian). Asking for their ideas and input on creating a new procedure (participative). Delegating tasks to implement the new procedure (delegative). Forces that influence the style to be used include: Amount of time available Organizational relationships (based on respect and trust or disrespect) The bearer of the information (the leader, employees, or both) How well the employees are trained and how well they know the task Internal conflicts Stress levels Type of task Laws or established procedures V. The Role of Communication Communication plays a key role in the success of any workplace program or policy and serves as the foundation for all types of psychologically healthy workplace practices. Communication about workplace practices helps achieve the desired outcomes for the employee and the organization in a variety of ways: Bottom-up communication (from employees to management) provides information about employee needs, values, perceptions, and opinions. This helps organizations select and tailor their programs and policies to meet the specific needs of their employees. Top-down communication (from management to employees) can increase the utilization of specific workplace programs by making employees aware of their availability, clearly explaining how to access and use the services, and demonstrating that management supports and values the programs. Examples of communication strategies that can help make workplace programs successful: Providing regular, ongoing opportunities for employees to provide feedback to management. Communication vehicles may include employee surveys, suggestion boxes, individual, or small group meetings with managers, and an organizational culture that supports open, two-way communication. Making the goals and actions of the organization and senior leadership clear to workers by communicating key activities, issues, and developments to employees and developing policies that facilitate transparency and openness. Assessing the needs of employees and involving them in the development and implementation of psychologically healthy workplace practices. Using multiple channels (for example print and electronic communications, orientation and training, staff meetings, and public addresses) to communicate the importance of a psychologically healthy workplace to employees. Leading by example, by encouraging key organizational leaders to regularly participate in psychologically healthy workplace activities in ways that are visible to employees. Communicating information about the outcomes and success of specific psychologically healthy workplace practices to all members of the organization. 05 Handout 2 *Property of STI  [email protected] Page 7 of 10  BMSH2001 Effective Communication is significant for managers in the organizations so as to perform the basic functions of management. Communication helps managers to perform their jobs and responsibilities. Communication serves as a foundation for planning. Organizing also requires effective communication with others about their job task. Similarly, leaders and managers must communicate effectively with their subordinates to achieve team goals. Controlling is not possible without written and oral communication. Managers generally devote approximately six (6) hours per day communicating. They spend a great time on face-to-face or telephonic communication with their superiors, subordinates, colleagues, customers, or suppliers. Managers also use Written Communication in form of letters, reports, or memos wherever oral communication is not feasible. Thus, we can say that “effective communication is a building block of successful organizations”. In other words, communication acts as organizational blood. VI. Management of Change and Diversity in Organizations Management change and organizational diversity are two (2) related activities/functions of management because trying to bring about change in organizations is dependent on the kind and behavior of the people within them. Bringing about organizational innovations or changes, although positively valued by people in our society, to respond to future competitors, may threaten the firm's members and, thus, cause resistance. Understanding and managing diversity in the workplace may be necessary to help manage change in organizations. Types of Changes An organization and its members must undergo constant improvement along with its achievement of growth. Changes may be implemented to bring about development in an organization. Among the changes that typically occur or are implemented in an organization are the following: Changes in people. People's attitudes, values, wants and needs, expectations, perceptions, and behaviors change as time goes on, but changing them for the better is not easy to do. To address this need for change, organizational development techniques are used. Organizational development is used to describe organizational change methods related to people, their nature, and the quality of their interpersonal relationships as they work and collaborate. Team building, sensitivity training, intergroup development, process consultation, and survey feedback are popular in organizational development techniques. Managers, however, must use techniques that are fitted to the prevailing organizational culture in their respective companies. Changes in Structure. Due to changing conditions/situations and changing strategies used, organizational structures may also change according to work specialization, departmentalization and change of command, the span of control, centralization, formalization, and job redesign. Managers are advised to alter one (1) or more of these structural components, depending on the needs of their organization. Changes in Technology. Technology changes usually refer to changes in work processes and methods used, the introduction of new equipment and work tools, automation, or computerization. Competitive factors or innovations in industries require administrators of companies to consider such technological changes. 05 Handout 2 *Property of STI  [email protected] Page 8 of 10  BMSH2001 Managing Resistance to Change Change is considered by many organization members as a threat. It is common for people to fear to change the status quo, even if doing so might bring beneficial effects. The possible reasons for this fear of change are uncertainty, concern about a personal loss, pessimism, the belief that it will have negative effects on the organization, and change in their habitual practices, among others. The following are required to manage resistance to change: Education – Employees have to be educated regarding the reasons for and the relevance of change. Participation – By allowing organization members to participate in decision-making related to bringing about change in their company. Facilitation and support – By facilitating or providing new skills training and counseling for employees to minimize their fear of change Manipulation of information – By withholding damaging information about the change to make it acceptable to organization members. Selection of people – By selecting people who are open to change to help disseminate the beneficial effects of change, resistance to change is lessened. Coercion – It is the use of direct threats or force to make people accept change; however, this method is perceived as a form of bullying, so it is used only when extremely necessary. Issues in Change Management Understanding Situational Factors Waiting for the appropriate time and situation is suggested when bringing about change in organizations. For example, the induction of new administrators/leaders is a good time to introduce changes in the organization's strategies, policies, and core values. Employees may show less resistance to change because they may perceive their new leader as more capable of responding to their needs and the organization's needs. Another example is when a major crisis has just occurred. A big financial crisis in the organization could trigger a clamor for change. In this situation, there would be less resistance to the acceptance of new investment, marketing, and human resource policies. Making Changes in Organizational Culture Change in organizational culture cannot be done easily because it is highly valued and ingrained among the firm's members. Thus, this must be done slowly to avoid violent resistance. Set the tone through management behavior. Top managers, particularly, need to be positive role models Create new stories, symbols, and rituals to replace those currently in use. Select and promote employees who adopt new values. Redesign socialization processes to align with the new values. To encourage acceptance of new values, change the rewards system. Replace unwritten norms with clearly specified expectations. Shake up current subcultures through job transfers, job rotation, and/or termination. Work to get consensus through employee participation and creating a climate with a high level of trust. 05 Handout 2 *Property of STI  [email protected] Page 9 of 10  BMSH2001 Managing Workplace Diversity Workforce diversity in organizations is inevitable. It is a fact that organization members may differ in age, gender, physical ability, ethnicity/race, culture, values, attitudes, beliefs, and personality. Since workgroup diversity is associated with positive and negative outcomes, managers must try to reduce the potential negative effects of diversity through (1) encouraging employees to accept the widely shared views and beliefs within the organization; and (2) encouraging employees to accept differences in the workplace. These, in turn, may be accomplished by training to improve the inherent negative relationship regarding a workgroup's diversity between its deep level values and the organization's culture and dominant values. Training can also be used to help employees understand demography differences. Other ways to handle workplace diversity is by creating support groups that can help employees ease the tension of working in diverse groups and reducing unconscious stereotype related to associating low or poor performance to women, the disabled or some ethnic group members. VII. Filipino and Foreign Cultures Filipino-owned organizations exhibit a different organizational culture compared to their foreign counterparts. Filipino and foreign culture in organizations exerts a big influence on how managers do their functions and how their subordinates respond to their rules/regulations and leadership styles. Organizational culture is, therefore, a critical factor in numerous organizational endeavors. Shared Values and Beliefs/Practices of Filipinos Different people from around the world have their own set of values or beliefs that they share and consider significant as a group or a community. As Filipinos, we are no different from other groups around the world. Our unique culture as people also influences our attitudes about work, as well as our habits. Here are the three (3) primary Filipino values: Social Acceptance – This value's focus is the desire of Filipinos to be accepted and treated well by others: his/her family, relatives, friends, and the members of communities/organizations where he or she belongs following his/her status, for what s/he is, and for what s/he has accomplished. Economic Security - This value emphasizes that one must have financial stability and that he or she must be able to stand on his/her own, without incurring debt to meet basic material needs. Social Mobility – This value is concerned with his/her desire to move up the social ladder, to another higher economic level, to a higher job position, to a position of respect in his/her family or in the community where s/he lives or in the organizations where s/he belongs, and others. References: A brief introduction to motivation theory. (n.d.). https://ozgurzan.com/management/management-theories/theories-about-motivation/ American Psychological Association. (2016). The role of communication. https://www.apaexcellence.org/resources/creatingahealthyworkplace/theroleofcommunication/ Cabrera, H., Altarejos, A., & Riaz, B. (2016). Organization and management. Vibal Group, Inc. Features/Nature of Directing [Web blog]. In OM Text Classes. http://www.omtexclasses.com/2014/02/featuresnature-of-directing.html Frias, S. & Orjalo, V. (2016). Organization and management: Concepts, caselets, and exercises. Phoenix Publishing House, Inc. Importance of communication in an organization. (2016). In Management Study Guide. http://www.managementstudyguide.com/importance-of-communication.htm Leadership styles. (2015). http://www.nwlink.com/~donclark/leader/leadstl.html leading vs. managing -- They're two different animals. (n.d.). http://www.au.af.mil/au/awc/awcgate/sba/leadvmanage.htm Medina, R.G. (2011). Human behavior in organization. Rex Book Store. 05 Handout 2 *Property of STI  [email protected] Page 10 of 10