FAG1007 Fundamental Of Management PDF

FAG1007 FUNDAMENTAL OF MANAGEMENT Attendance  Topic 9 LEADERSHIP Learning Outcomes After studying this chapter, you should be able to: ❑ Define the concepts of leading and leadership and explain their significance to an organization. ❑ Identify the differences between manageme...

FAG1007 FUNDAMENTAL OF MANAGEMENT Attendance  Topic 9 LEADERSHIP Learning Outcomes After studying this chapter, you should be able to: ❑ Define the concepts of leading and leadership and explain their significance to an organization. ❑ Identify the differences between management and leadership, and the traits of managers and leaders. ❑ Identify the characteristics of effective leaders. ❑ Explain the various perspectives of leaders. ❑ Explain transformational leadership. Introduction ❖Definition Individuals who influence subordinates or behaviours of others – Usually examined in the context of a group workgroups such as a manager and his/her subordinates, for example in a HR department or Quality department – Stress on a group goal stress on a group goal that has to be accomplished Differences Between Management and Leadership ❖ Managing and leading are two different ways of organizing people. ❖ The manager uses a formal, rational method, while the leader uses passion and stirs emotions. ❖ Manage – to direct or control a business or department, and its people, equipment and the money involved – A manager can be defined as the person who is responsible for planning, directing and monitoring the work of a group of individuals in a business or department, while taking corrective action whenever necessary.  'Lead', on the other hand, means to take someone somewhere by going in front of the person to show him or her the way, while the person follows. ❖ Leading – the action where a person takes charge of a situation or activity and leads the people involved towards a goal  MANAGEMENT LEADERSHIP Planning and budgeting Establishing direction Establishes detailed steps and schedules for Develops a vision for the future and draws achieving needed results, before allocating the up a plan and required strategies to create necessary resources to make it happen. the changes needed in achieving that vision. Organizing and staffing Aligning people Establishes structures for accomplishing the Communicates direction in words and deed requirements of plans; staffing those structures to all whose cooperation is needed, to with the right individuals, delegating authority influence the creation of teams and and responsibilities to carry out those plans, coalitions that understand and accept the providing policies and procedures to help guide vision and strategies as valid. people, and creating methods or systems to monitor implementation.  MANAGEMENT LEADERSHIP Controlling and problem-solving Motivating and inspiring Monitors results, identifies deviations from plans, Energizes people to overcome major political, then organizes plans to solve problems bureaucratic and resource-related barriers to result in change that satisfies basic, but often unfulfilled, human needs Produces a degree of predictability and order Produces change Has the potential to consistently produce expected Has the potential to produce extremely short-term results useful changes Traits of Managers and Leaders Many people use management and leadership skill, or a combination of both, in their daily businesses. Learning the differences between these skills and how to apply them appropriately is an art. There are 10 traits for managers and leaders should possess to motivate their employees Traits of Managers and Leaders MANAGERS LEADERS ❖ Does not insure imagination, ❖ Uses personal power to influence creativity or ethical behavior. the thoughts and actions of others. ❖ Rationally analyses a situation, while developing a systematic selection of ❖ Intuitive, mystical understanding of goals and purposes (i.e. what is to be what needs to be done. done). ❖ Directs energy towards goals, ❖ Directs energy towards providing resources and organization guidance to people in achieving structures, and determining the practical solutions. problems to be solved.  MANAGERS LEADERS ❖ Influences people through altering ❖ Influences people through the use of moods, and evoking images and logic, facts and reason. expectation. ❖ Views work as a means of ❖ Views work as an enabling process, developing fresh approaches to old involving a combination of ideas, problems or finding new options for skills, timing and people. old issues. ❖ Takes in emotional signals from others, making them mean ❖ Has a low level of emotional something in the relationship with involvement in their work. an individual; often passionate about their work.  MANAGERS LEADERS Relates to people by the role they play in a sequence or in a Relates to people in intuitive and decision-making process. empathic ways. ❖ Focuses on ‘how’ things need to be ❖ Focuses on ‘what” needs to be done, done. leaving decisions to people involved. ❖ Focuses attention to decisions to be ❖ Focuses attention to procedures. made. ❖ Communicates through the use of ❖ Communicates with subordinates ‘messages’’ heightening the indirectly using signals emotional responses Class Activity Malaysian Leaders In a group of 4 to 5, identify any ONE of leader in Malaysia. Provide a brief overview of the leader background and major achievements/ contribution.  Characteristics of Effective Leader ❖ A good leader: – has an exemplary character – is enthusiastic about his/her work or cause, and also about his/her role as leader – is confident – is able to function in an orderly and purposeful manner in situations of uncertainty – is tolerent of ambiguity and remains composed, calm and steadfast to the main purpose – while keeping the main goal in focus, is able to think analytically – is committed to excellence  The Theories Of Leadership ❖ Interesting development in leadership emerged during the early part of the 20th century. ❖ Early theories focused on the qualities which distinguished leaders from followers. ❖ The Trait Theory of Leadership – To differentiate managers from leaders. – This theory assumes that people inherit certain qualities and traits which makes them better suited to leadership. – In other words, individuals that become leaders are naturally born with characteristics of leaders such as desire to control, to accept responsibility, to influence, and many others.  Stogdill’s list of traits and skills critical to leaders Traits Skills Adaptable to situations Clever (Intelligent) Alert to social environment Creative Ambitious and achievement oriented Diplomatic Dependable Speak fluently Dominant Knowledgeable Energetic Organized Persistent Persuasive Self-confident Socially skilled Tolerant to stress  This theory was further expanded by McCall and Lombardo (1983) They identified 4 primary traits of successful leaders now focusing on the emotional side of leaders. Emotional stability and composure Admitting error Good interpersonal skill Intellectual breadth ❖ Behavioral Theory of Leadership – Emerged in 1950s. – Assume that great leader are made and not born. – This means that a person’s behavior can be improved, or individuals can be molded into becoming good leaders. – The focus of this theory centers on actions of leaders and not their physical and phycological traits. – A person can learn to become leaders via learning and observation. – E.g.: a person without business knowledge can still learn, observe and thrive as a business leader. ❖ The Ohio State Study (1940s) Ohio State University conducted a research by developing a questionnaire – Leaders Behaviour Description Questionnaire (LBDQ) The objective – identify common leadership behaviour Result – they manage to identify 2 types of leadership behaviours Consideration (motivate employees using human relations approach) Initiating Structure (focus on completion of task and meeting deadlines) ❖ Contingency Perspective The contingency theory asserts that there is no one leadership style that best suits all situations. Instead, leadership success depends on a number of variables, not just the styles of a leader but also incorporates the qualities and attributes of the leader’s followers and the situations a leader is leading in. A leader’s style of leadership is contingent or dependent on both internal and external situations an organization operates in. We will focus on four contingency theories: 1.Fred Fiedler's Leader-Follower Situational Contingency Model 2.Paul Hersey and Kenneth Blanchard's Situational Leadership Theory or the Life-Cycle Leadership Theory 3.Robert House's Path-Goal Leadership Model 4.Vroom-Yetton Participative Leadership Theory. THANK YOU