Leadership in Practice (PDF)

CHAPTER 4 LEADERSHIP IN PRACTICE 1 At the end of the chapter, student should be able to: Describe the differences between managing versus leading. Indicate the leadership function Identify and explain the Leadership skills, characteristics and attributes. Describe change leaders...

CHAPTER 4 LEADERSHIP IN PRACTICE 1 At the end of the chapter, student should be able to: Describe the differences between managing versus leading. Indicate the leadership function Identify and explain the Leadership skills, characteristics and attributes. Describe change leadership roles. Explain how leaders realize organization strategy. 2 4.1 INTRODUCTION Changes in new millennium have triggered a radical shift in the role of the ‘captain of the organization’ from authoritarian to participative management style. Apart of the traditional dimensions of leader’s role, the interpersonal dimension becomes essential which emphasize on cooperation, collaboration and communication. Leadership is a key to managing organizations in periods of change and crisis. According to Graetz et.al (2006), key to leading change is by learning how to balance between ‘continuity and change’; ‘short- and long-term actions’; ‘accountability and freedom’ as well as ‘planning and flexibility’ 3 4.1.1 Definition Hersey and Blanchard (1988) stated that leadership occurs when one attempts to influence the behavior of an individual or group. Leadership is about authenticity and character. They key attributes to strong leadership and effective management are financial literacy, the ability to invest in people, trust; integrity; common sense and empathy. Kotter (1996) notes ‘management is about coping with complexity. Leadership is about coping with change’. Meanwhile, bennis and Nanus (1985) stated that ‘managers are people who do things right and leaders are people who do the right thing’. 4 4.1.2 Competency of Leader Hersey and Blanchard (1988) states three (3) general skills or competencies of leader as the following: Diagnosing: a cognitive skills which require leader to be able to understand the current and future situation. These two situations known as “performance gap” that the effective leader will attempt to change. Adapting: a behavioral skill that requires leader to adapt with one’s behavior and others resources that help to close the “performance gap”. Communicating: a process skill that requires leader to be able to communicate in ways those others can understand and accept what he wants to achieve for the organization.. 5 Competency of Leader….. On the other hand, Warren Bennis (1984) identifies four (4) areas of competency shared by 90 leaders. Management of attention: the ability to create and communicate clear objectives and direction to others. Management of meaning: the ability to create and communicate clearly, achieving understanding and awareness. Management of trust: the ability to be consistent in often complex and dilemma circumstances so that people can depend on them. Management of self: the ability to know oneself and to work with strengths and weaknesses. 6 Competency of Leader Steward and Chadwick (1987) stated that capable leader share the following characteristics’ such as: Decentralization. Combined with decentralization, evolution of roles for head office as consultant, power breaker and financier rather than direct controller. Positive attempts to encourage the entrepreneurial spirit and risk taking. Breaking down of inter functional barriers. More emphasis on leadership and people focus An evolving client or customer focus. Established informal links at all levels. A move from controlling to enabling approaches. Systems control the minimum necessary, rather than controlling each and every activity. 7 4.2 LEADERSHIP VISION AND STRATEGY Steward and Chadwick (1987) and Itami (1987) agree that corporate leaders enable people to contribute, solve problems, and learn from and by experience and to accumulate invisible assets. Invisible assets are: the technology; knowledge; value; consumer loyalty; brand image; control of distribution; corporate culture and management skill. To do so, leader must make explicit strategy (vision) to people and using the process of strategy formulation to mobilize the organization. 8 Leadership Vision and Strategy Benefits of clear vision by leader towards his organizational members are as follow: Allows for coordination of activity. Provides direction to people. Can boost morale and sustain self esteem, Provide a shield against anxiety in a period of change. Foster better planning (proactive rather than reactive plan) Allows people to plan, create and learn from the experience. 9 Allows for the development of invisible assets. Leadership Vision and Strategy How leaders can make the vision achievable by the organization members? Corporate leaders must make strategy explicit and achievable by the organization members through the following: Ensure its diffusions throughout the organization. Communicate repeatedly with words and actions. Select people with strong reputations to lead new projects. Design reward systems to recognize excellent performance. Visits to departments to display the importance of the strategy with powerful symbolism (such as slogan). 10 Charismatic personality of the leader Leadership Vision and Strategy How leaders can mobilize the strategy (vision)? According to Itami (1987), leaders can mobilize the organization towards strategy through three (3) levels such as: 11 Leadership Vision and Strategy By providing a unifying focus. To provide unifying focus, the strategy should be simple, clear, based on identifiable core concept, prioritized, resources clearly allocated, continuous adaptation and improvement and match with the corporate culture. Also, seeks for organizational consensus for wide acceptance. By creating momentum. To create momentum, leaders should sell the core concept (communicate clearly), ensure and rewards early success, involve people with clears tasks and pay attention to timing. Also, the consensus agreed upon 12 by organization members’ needs careful but continual pressure and questioning to gear up the momentum. Leadership Vision and Strategy By sustaining creative tension. To sustain creative tension, leaders should accumulate resources and people to create invisible assets, put continuing pressure on the organization to avoid complacency, constantly seeking new methods and procedures, continuous improvements of new products/services. Also, place people in conditions where the resources are inadequate can encourage a creative effort to resolve the problems. 13 4.3 LEADERS AND SITUATIONS Effective leader uses skills, knowledge and charisma to encourage the development of the invisible assets to gain competitive advantage. This will lead to: involving people in change, enabling them to act, allow them to learn and develop, sustaining them with confidence and clear vision. 14  Cooper and Hingley (1985) Leaders and Situations disclose the following patterns that identify individuals as corporate leaders: Early childhood experience: early feelings of insecurity and loss led to a subsequent drive and need to control their own future. Later childhood experience: developed self reliance. Motivation and drive: strong self motivation and drive. Value system: had a well-developed value system with clear vision and purpose. Early responsibility: development of executive careers had been facilitated by early high level responsibility. Charismatic leadership: leadership style and charisma were unimportant. Communicator: the ability to communicate was a powerful element that all change-makers possessed, particularly the ability to be open and honest about 15 feelings and attitudes. Leaders and Situations Key features that distinguish leader from other members of top management team according to Norburn (1988) survey of 108 chief executive and 30 executive directors are as follows: The lengths of tenure in the organization. The stage at which they began grooming for senior management responsibility. The variety of managerial functions they experienced. The rapidity of promotion to a general management position. Their exposure to overseas cultures and 16 business Leaders and Situations In a nutshell: Both authors point to early responsibility as a key feature to be a successful leader. The successful leader also has the ability to communicate and having clear vision resulting from wide experience and varied knowledge of tasks. The study about leadership has shifted from studying the traits of successful leaders to looking at leadership style to focusing on the idea of contingency approach to determine successful leader. Contingency approach argues that the effectiveness of leadership style or behavior will be contingent on situation 17 Leaders and Situations There are various model of contingency approach such as Fiedler Model of Contingency Approach of Leadership by Fiedler (1967), Contingency model of leaders decision making by Vroom and Yetton (1973) as well as Situational leadership by Hersey and Blanchard (1988). Vroom and Yetton (1973) focus on contingency model based on leader decision making in which leaders might improve both the quality and the acceptability of decisions. 18 The contingency approach to leadership by Carnall, 2007 19 4.3.1 Fiedler (1967) contingency approach Fiedler (1967) contingency approach looks at three (3) elements as situational variables such as: Leader-member relations (quality of personal and effective relations between leader and group members). Task structure (structured versus unstructured task given). Position power. 20 Fiedler (1967) contingency approach 21 4.3.2 Hersey and Blanchard (1988)- Situational Leadership Hersey and Blanchard (1988) also offers contingency approach known as Situational Leadership which identify the ‘readiness’ of followers as a key factor in deciding on an appropriate leadership style. They believe that the leader’s task behavior (eg: providing guidance and direction) and relationship behavior (eg: team building, providing socio- emotional support) should accord with the readiness of followers. They define readiness as the willingness and ability of people to take responsibility for defining and directing their own task behavior 22 Hersey and Blanchard (1988)- Situational Leadership There are three (3) important variables in Hersey and Blanchard’s Situational Model as follows:-  Task behavior The extent to which a leader spells out to subordinates what to do, where to do it, and how to do it.  Relationship behavior The extent to which a leader listens, provides support and encouragement, and involves followers in the decision-making process.  Follower readiness 23 The subordinates’ ability and willingness to perform the tasks. Hersey and Blanchard (1988)- Situational Leadership 24 Hersey and Blanchard (1988)- Situational Leadership 25 Hersey and Blanchard (1988)- Situational Leadership Hersey and Blanchard characterized leadership style in terms of the amount of Task Behavior and Relationship Behavior that the leader provides to their followers. They categorized all leadership styles into four behavior types, which they named S1 to S4: A) S1: Telling B) S2: Selling C) S3: Participating D) S4: Delegating 26 Hersey and Blanchard (1988)- Situational Leadership A ‘telling ‘style is proposed for those of ‘low readiness’ (people who are unable and unwilling or insecure to take responsibility. Use when follower readiness is low. A ‘selling’ style is recommended for those who, though willing to take responsibility, are unable to do so. It means that providing direction combined with explanation, support and feedback to maintain motivation. Use when follower readiness is moderately 27 low. Hersey and Blanchard (1988)- Situational Leadership A ‘participating’ style, described as appropriate for those with ‘moderately high readiness’ whereby their motivation and commitment might be increased by involvement in decision making. Use when follower readiness is moderately high. A ‘delegating’ style leaves ‘high readiness’ followers to take responsibility for what needs to be done. Use when follower readiness is high. 28  Hersey and Blanchard (1988)- Situational Leadership Advantages  Easily understood model with clear recommendations  Leader must constantly monitor employees’ readiness levels  Leadership style should be changed to fit changing situations Disadvantages  Difficulty in addressing different readiness levels in a team situation  Follower readiness is the only contingency variable used  Some leaders may not be able to easily adapt their styles to fit the situation  Model is not strongly supported by scientific research 29 4.4 THE CONTEXT OF LEADERSHIP The leader context involves much more than their ‘followers’. Leaders faced with complex and changing networks of people, institutions, opportunities and problems. To cope with changing environment, leaders need to have the following five (5) sets of actions: Set values Support problem solving and risk Design systems to support action. Focus on manageable 30 Develop skills in people 4.5 MANAGERS AND LEADERSHIP-DIFFERENCES (GRAETZ, 2006) Management Leadership  Planning and budgeting.  Establishing direction.  Organizing and staffing.  Aligning people.  Controlling and problem  Motivating and inspiring. solving.  Produces change.  Produces predictability and order. 31 4.5.1 Managers and Leadership-Differences (Kotter, 1996) 32 Managers and Leadership- Differences (Kotter, 1996) 33 4.5.2 The Leadership Function ‘Broadband’ intelligence People with ‘broadband’ intelligence are able to draw on one, all or combinations of these intelligences as the situation demands. Broadband intelligence is the ability to draw on and make connections between the seven (7) distinctive forms of intelligence: Linguistic - the ability to manipulate language effectively. Logical mathematical - the ability to manipulate symbols, like the scientists. Spatial - the ability to process information continuously in 3 dimensions. Musical - the ability to manipulate sound in a complex way. Bodily kinaesthetic - the ability for physical coordination. Interpersonal - the ability for self understanding without which all the others way may be distorted in use. Intrapersonal - the ability for self understanding without which all the others may be distorted in use. 34 The Leadership Function Personal Power Boulding identifies three (3) sources of personal power that leaders need to have. Leaders need to blend these powers according to the situational contect. As leaders rather than managers, personal attributes and abilities not position or status will be foundation of their power source. Those powers are : (1) authority power, as in the power of threat or ‘power over’; (2) economic power, as in the power to exchange or ‘power to’ and (3) integrative power, as in inclusive, accepting or ‘power 35 with’ that energize others to action. The Leadership Function Strong Leadership and knowhow from the top Leadership at the top must be ‘personalised’ because it provides a sense of shared values and purpose that holds the organizational members together. At this stage, it requires strong leadership and know-how from the top. On top of that, distributed leadership which also known as decentralized leadership also important in which leader at the top empowered the lower level leader some responsibility. Leaders need to identify a group of influenced, experienced and trusted individuals in formal and informal positions of authority at different levels of the organization. 36 The Leadership Function Succession planning. One of the leader functions is to identify people with talent and potential within a company and creating opportunities for them to lead and develop. For an effective succession planning, leader should start the process early; ensuring the succession planning is built into the company’s strategic planning process; promoting and grooming potential from within the company and implementing management training programs to help identify, support and encourage talented employees throughout the organization not just at senior level. 37 4.5.3 Leadership Role Leadership roles Here are some of the leadership roles that considered important such as: Energizing and instilling a readiness for change. Before change can take place, leaders must gain employees support and commitment to change. Explaining the change will make the less likely to resist or block the new ways of working. To make it tangible and real, leaders must link the change process to key business processes and performance measures. Creating a vision and setting the direction. Role of change leadership is to inspire ‘shared vision’ to ensure committed and involved workforce. A vision is necessary to give meaning and structure to the change 38 efforts. A vision must provide clear set of direction, challenging, realistic and acceptable by majority. Leadership Role…cont Leadership commitment and involvement. Involvement of top or upper level management is fundamental to change efforts. Communication by top management is a powerful lever in gaining employees commitment towards change. Reinforcing the message and institutionalizing the new behaviors. Leaders can play this role by establishing the new organizational systems and structures that represent the new work arrangements and reporting requirements. For example, changing company logo, tagline, corporate color and dress code. 39 Dimensions of Change Leadership- Graetz, 2006 Charismatic role Instrumental role Leaders who through their personal More focus on organizational design, attributes and strong interpersonal skills control and reward through explaining are able to inspire and enthuse and demonstrating the new behaviors; (motivate) others to commit to their implementing new systems and vision for the future. structures. Focus on envisioning; energizing and enabling empowering. 40 4.6 LEADERSHIP AND ‘HUMAN SCALE’. The effective leaders bring human scale to risk, change, success, challenge and crisis. They translate the pressures that can confuse or paralyze others into acceptable level. They are not afraid to fail. Their approach to leadership is both skilled and thoughtful (Mant, 1983). Leader can energize people and sustain people to act, to try things out and to get on with the job in hand. Leaders require the ability and credibility to encourage others into action. The leader who can bring human scale to organizational problems can do two (2) things such as (1) cope with the pressure on themselves such as the fear of failure, the stress and pressure of the 41 circumstances to be handled and (2) find ways of helping others to cope with the pressures on them. 4.6.1 The Roles of Effective Change Leaders Graetz et al. (2004) underlined some of the roles of effective leadership as the following: Challenge the status quo and create a readiness for change. Inspire a shared vision and personally communicate the future direction. Enable others to act. Create additional sponsors at different levels of the organisation. Employ symbolic and substantive actions. Modelling the way (lead by examples). Communicate the message repeatedly. 42  SUMMARY Leaders need to give people a vision of the future. The leaders need to cope with change, so do followers. Leaders can energize and sustain people to act, to try things out, to get on with the job in hand. They can energize people to try. The practical side of leadership is not depends on the grand theories but, rather, on the ability to encourage others to take actions. It also depends on the credibility. The leader’s vision needs to be credible. People need to perceive the credible actions that they can take and that they feel they can control. Thus, human scale or interpersonal skills is important to leaders in managing change. 43