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Leadership: What it is and why is it important? What comes to your mind when you think of leadership? Leadership in itself is a complex process by which a person influences others to accomplish a task, mission or objective and directs the organization so that it is mo...

Leadership: What it is and why is it important? What comes to your mind when you think of leadership? Leadership in itself is a complex process by which a person influences others to accomplish a task, mission or objective and directs the organization so that it is more organized and coherent. A leader is not always in charge or in a supervisory or management position. What managers need to realize that titles are only given; however leadership is earned. In order to be a leader, you must uphold a certain level of quality, standard and ethical mannerism. Running a successful company really. depends on your business management skills and leadership style. A clever CEO recognizes this concept and truly invests in their employees Key concept Leadership  Leadership is a key part of being a successful manager  Charismatic leaders set a clear direction & vision  The best managers are good leaders  Managers focusing too much on control of staff and resources – Provides no sense of purpose or focus – Fail to inspire workers to take a fresh direction What makes a good leader? What Is Leadership? Leadership — ability to influence individuals and groups to cooperatively achieve organizational goals Human Relations skills – how well people get along with each other when working together – Groups of people that respect one another and work well together do better work than groups characterized by negative feelings, hostility, etc. 6 Leadership  Leadership takes you into new territory where change, risk, vision, creativity and challenge become deep-rooted in your everyday working style.  A true leader goes beyond the call of duty. Leadership Leadership - Is the process of inspiring others to work hard to accomplish important tasks I – Innovation/Imagination M – Merchant of Wow A – Authenticity G – Guts E – Ethics and Excellence Leadership Vision – a clear sense of the future Visionary Leadership – brings both a clear sense of the future and an understanding of how to get there 1. Challenge the Process 2. Show Enthusiasm 3. Help others to act 4. Set the example 5. Celebrate achievements Leading viewed in relationship to the other management functions. The Importance of Leadership  Leadership is an essential force for the enterprise as a whole, for a particular department or for any given program. I know everyone has heard of stories about a manager who was brought in to save a dying company.  Such success stories persuade me to realize that a single individual can have a tremendous impact on the enterprise as a whole; it is enough to spell the difference between success and failure. The Importance of Leadership Definition: Leadership is the ability to influence individuals and groups to cooperatively achieve organizational goals. The Importance of Leadership Human relationships refer to how well people get along with each other when working together. – People who respect each other and work well together will likely do better work then groups who do not. – Managers can contribute to effective or ineffective human relationships. The Importance of Leadership Goals Recognize the importance of leadership and human relations. Identify important leadership characteristics and types of power. Describe four types of power available to leaders. 14 Key concept Leadership Characteristics  Desire to succeed and have a natural self confidence  Creativity - think outside the box  Multi-talented understands all aspects of the business.  Gets to the heart of the issue rather than wasting time on unnecessary details. Leadership Characteristics. One of the most important responsibilities of a manager is creating an atmosphere that encourages employees to do their best work. – Employees have their own goals and needs. – Employees work most productive then their work meets their needs as well as the company. Leadership Characteristics. Managers must work to satisfy important needs of each employee while also meeting the goals of the business. Leaders help employees get work done correctly and willingly. Leadership characteristics are personal qualities rather than specific ways the managers behave. Nature of Leadership Official Leader given formal authority over others Informal Leader natural way of influencing people Leadership positions in Business Top executives – CEO, CFO, COO… Directors – elected by shareholders Managers – responsible for people, resources or decision-making Supervisors – appointed by management to watch over the work of others Worker representatives (Union Rep) – elected by the workers, to discuss areas of common concern with managers Stop and think!!! By now you should be able to…… 1. Identify and explain the key functions of management. 2. Identify and explain Mintzberg’s roles of management 3. Explain the importance of leadership. 4. List and explain key leadership positions in business. Leadership & Sources of Power Leadership Power - is the ability to get someone else to do something you want or to make things happen the way you want Influencing People Power is the ability to control behavior. Effective leadership lie in the way an individual uses it power The power is the ability to get someone else to do something you want done or to make things happen the way you want Anyone holding a supervisory position in theory has this power, how well it is used and the context it is use in may vary. 4 Different Power Styles- some of us may use a mixture of these styles whoever there is one that we tend to lend more to.  Role power (legitimate power) is the ability to influence though authority, the right by virtue of position  Personality power is the ability to influence by special expertise or by respect.  Coercion power is ability to influence by punishment  Reward power is the ability to influence by reward. Power of influence of a manager vs. a leader Management Power Power – the ability to control behavior POSITION POWER REWARD POWER comes from manager’s based on the ability position in the to control organization rewards and punishments IDENTITY POWER EXPERT POWER given to people because given to people because of others identify with and their superior knowledge want to be accepted by them about the work 27 Types of power Position Power – Comes from the position the manager holds in the organization. – If a manager is an employee’s boss the manager has the power to give directions and expect the employee to follow them. Types of power Reward Power – Based on the ability to control rewards and punishments. – Some examples of rewards: Pay raises Bonuses Choice work assignment. Types of power Expert Power – Power given to people because of their superior knowledge about the work. – Employees must turn to these people for direction. Types of power Identity Power – Power given to people because other identify with and want to be accepted by them. – Employees will work harder for people they like and respect. Power that comes from within the company – Position Power. – Reward Power. … Are NOT related to leadership characteristics. Power that comes from within the company Power given to employees because he or she displays leadership characteristics. – Expert Power – Identity Power …Are not granted to employees by their position in the company, rather they come from the employees themselves. Power that comes from within the company Sometimes people other than managers have power in an organization. Sources of position power and personal power used by managers. Another word for Coercion – Punishments Managerial Power Equation Managerial Position Personal Power = Power + Power Rewards Expertise Punishments Reference Legitimacy Sources of Power Reward Power - is the ability to influence through rewards Coercive Power - is the ability to influence through punishment Legitimate Power - is the ability to influence other people by virtue of formal authoritiy Sources of Power ▪Expert Power - is the ability to influence people because of one’s knowledge, understanding and skills ▪Referent Power - is the ability to influence the behaviour of other people because they admire you and want to identify positively with you Turning power into influence … – Successful leadership relies on acquiring and using all sources of power. – reward power or legitimate power = temporary compliance. – coercive power = at best, temporary compliance, often accompanied by resentment. – expert power or referent power has the most enduring results and generates commitment. Keys to building managerial power: – There is no substitute for expertise. – Likable personal qualities are very important. – Effort and hard work breed respect. – Personal behavior must support expressed values. Power and influence are affected by workplace structures and networks: – Centrality. – Criticality. – Visibility. Acceptance theory of authority. – For a leader to achieve true influence, the other person must: Truly understand the directive. Feel capable of carrying out the directive. Believe the directive is in the organization’s best interests. Believe the directive is consistent with personal values. “one genius leads the company” Leadership and empowerment. – Empowerment. The process through which managers enable and help others to gain power and achieve influence. – Effective leaders empower others by providing them with: Information. Responsibility. Authority. Trust. How leaders can empower others: – Involve others is selecting their work assignments and task methods. – Create an environment of cooperation, information sharing, discussion, and shared ownership of goals. – Encourage others to take initiative, make decisions, and use their knowledge. – Find out what others think and let them help design solutions. – Give others the freedom to put their ideas and solutions into practice. – Recognize successes and encourage high Using Power Effectively  Managers can influence their employees because of position or because of the rewards/punishments they control – Not related to leadership characteristics – Employees do not grant those types of power to managers – Employees do the work – but not willingly  Expert and identity power – Related to leadership characteristics – Can there be powerful people within a business that are not managers? …explain! 44 Checkpoint! Can you… Recognize the importance of leadership and human relations? Identify important leadership characteristics and types of power? Describe four types of power available to leaders? 45 Management vs. Leadership Not all leaders are managers. Not all managers are effective leaders. Effective managers are also effective leaders. Effective management and leadership leads to a motivated and more productive workforce. Changing Role of Managers / Leaders Years ago, managers just told employees what to do and expected them to do it Nowadays, other elements are important – Employees must understand why the work is important and must want to do the work – Leader — manager who earns the respect and cooperation of employees to effectively accomplish the work of the organization 47 Developing as a Leader A manager can contribute to effective or ineffective human relations Not every manager is an effective leader – BUT – these skills can be learned – Lots of money is spent on leadership training for managers 48 Good vs. Bad Leaders Good managers / leaders create a work environment in which employees enjoy their work and want to do a good job Poor managers / leaders may be able to get employees to perform the necessary tasks, but the work may be done poorly and inefficiently 49 Basic Leadership Traits Personal Qualities, rather than specific ways that managers behave  Intelligence  Honesty  Judgment  Courage  Objectivity  Confidence  Initiative  Stability  Dependability  Understanding  Cooperation 50 Developing Leadership Skills Goals Discuss why businesses value leadership skills of managers and employees. Identify and define five important human relations skills. 51 Leadership in Business Since the shift to teamwork in business – Employers want to hire people with leadership skills – Training and personal development for many employees, not just managers 52 Human Relations Skills  Managers are in contact with other managers, employees, customers, etc. and need the following skills: – Self-understanding – an awareness of your attitudes and opinions, your leadership style, your decision-making style, and your relationships with other people – Understanding others – cannot treat all people the same – Communication – listening, speaking, writing Know WHAT needs to be communicated and HOW – Team building – getting people to believe in the goals of the company and work well together to accomplish them – Developing job satisfaction – influenced by personal characteristics, individual needs, and the work itself 53 Checkpoint! Can you… Discuss why businesses value leadership skills of managers and employees? Identify and define five important human relations skills? 54 Leadership Unit Career & Family Leadership Leadership = Relationships Past= leadership revolved around 1 person and their actions. Today= leadership is an interaction with others and the actions of all. The leadership process requires both leaders and followers. Leadership ranges from small decisions to decisions that impact millions. Where are the Leaders? 90% of total leadership today is in informal voluntary settings. Less than 10% is in organized groups and institutions. Leadership is continuous. Leadership can be accidental or unintentional. Some leadership comes with a formal position such as President. Where are the Leaders? Some people lead by example, by being a role model. Some may serve as role models even though they do not choose to. Is a sports star or rock star a leader? Your thoughts… Leadership is Situation Specific Situations create the need or opportunity for different kinds of leadership. – War and other crises create situations where people come forward as leaders. Individuals who are good leaders in some situations, may not be good leaders in other situations. The style of leadership that works well in one situation, may not work well in another. True or False? 1. A good leader must be a good coach as well. 2. Leadership starts at the top and trickles down. 3. Leadership is mostly about influencing others. 4. There should only be one leader in a team. 5. A leader must have authority to command respect. 6. All good leaders must have a clear vision for the future. 7. To be a leader you must first be a manager. 8. Good communication skills are essential for leadership. 9. A leader must be able to motivate people. 10.The best leaders are strategic thinkers. Leadership Defined Characterizing Effective Leaders Understanding your employees is the best ways to help yourself as well as others reach personal and professional goals. In carrying out this purpose of leadership, managers are able to change vision into a significant action Here are some leadership characteristics that stands out when most people think of a leader. Patient, Communicator, Visionary, Organized, Competent, Firm, Fair, Delegator, Coach, Realistic, Genuine, Productive, Dependable, Positive attitude, Tactful, Flexible, Inspirational, Integrity, Respected, Innovative, Humor, Risk-taker, Resourceful, Open, Team builder The Difference between a Manager and a Leader  The differences between a leader and a manager are subtle and difficult to define. As we know, management is concerned with achieving organizational objectives. Management means planning, organizing, communicating, controlling and assessing. Here is a chart breakdown on managers versus leaders. What type of manager are you? Leader Seek responsibility Take risk Set reasonable goals Develops people Concerned with people Works hard to help people produce Gives credit Challenge problem employees Strive for an exciting working environment Manager Accept responsibility Minimize risk Set unreasonable goals Uses people Concerned with things Works hard to produce Takes credit Appease problem employees Strive for a comfortable working environment What do you stand for and what is important to you Every organization is guided by certain beliefs or values. These values communicate to all members “what we stand for” and “what is important to us”. One sign of a healthy organizational culture is resemblance between the organization’s statement values and the daily behavior of its managers. Leadership values Innovation- You must be a contributor to development of knowledge, through creative ideas. Our attitudes towards problems should be focused on “there must be a better way to do this” and have confidence that we have the competence and creativity to figure it out and prove it. Establish an environment that fosters innovation Leadership values  Integrity- You should expect ethical behavior from you and staff members. Decisions and actions must consistently be beyond question from an ethical position. Leadership values  Quality- You should be responsible for continually improving of skills so your work will always meet or exceed standards. All services and products of the highest quality should be equal or above the paying party expectations. Recruit high-quality staff members. Leadership values  Profitability- Your objective should be to provide services (clients or employees) and product which will produce profits. You should generate retained earnings needed to achieve success for your establishment. Leadership values  Growth- You should continuously train and encourage empowerment and ownership. Actively promote and support staff development activities. Developing Leadership Skills People are not “born” leaders. People develop their leadership traits. Developing Leadership Skills Many companies require employees to attend leadership training programs. – Training Programs emphasize team building and leadership development. Human Relationships Managers need human relationship skills. – Must be able to work well with others. – Must be able to help employees work well together. Human Relationships Important Human Relationship Skills – Self Understanding Involves an awareness of – Your attitudes and opinions. – Your decision-making style. – Your relationship with other people. Human Relationships Understanding of others’ – Managers need to know the best way to work with each employee. – Managers need to be able to satisfy individual workers needs and at the same time accomplish the goals of the company. Human Relationships Communication – Managers spend much of their time communicating. Human Relationships – When Communication breakdowns occur, Human relations problems will likely develop. Managers must listen as well as provide information. Managers must communicate to employees in languages they can understand, and through their communication channels. Human Relationships Team Building – People need to feel they are part of a team. – Team building means getting people to believe in the goals of the company and work well together to accomplish them. Human Relationships Developing Job Satisfaction – Most people who work at a job for a reasonable length of time are not totally satisfied or dissatisfied with their job. Human Relationships (Job Satisfaction) There are many factors effecting job satisfaction. – Examples of factors affecting job satisfaction. Person characteristics of employees and managers. Needs of the individuals. The people with whom the employees work. The work itself. Human Relationships (Job Satisfaction) – People should be carefully matched with the job they perform, because personal characteristics can affect job performance. – Human resources departments often test new employees in order to match people with appropriate jobs. Management Viewpoints About Employees Each manager has attitudes about people and work that affect the way they do their jobs, and treat the people they supervise. Good managers adjust their style of management to the characteristics of the people they supervise and to the situation. Management Viewpoints About Employees Different viewpoints about employees are: Employees need to be closely managed. – Manager believes that people are basically lazy. – Believes employees need to be watched, and work only because they get paid. – These managers expect that the will have to find ways to force employees to work. Employees Need to Be Closely Managed Management Viewpoints About Employees Employees perform well with limited management. – Manager believes employees generally enjoy their work. – Believe that employees who enjoy their work obtain a satisfaction from doing a job well. – Believe that employees like responsibility and will take initiative to solve problems, help other, and complete their work. – Managers with this set of beliefs ask people for their ideas on how to complete the work. Employees Work Better When Not Closely Managed Management Viewpoints About Employees A flexible viewpoint. – Managers must adjust their as circumstances change. – Studies found that neither of the above management views is correct for all employees and all jobs. Characteristics of Effective Leaders  Knowledge of Self  Effective Communication  Knowledge of  Establishers of Others Trust  Vision  Relationship Builders  Influence  Quality Decision Makers Knowledge of Self  Effective leaders have a firm idea of what they believe, realizing that they live by their beliefs. Also, they develop an understanding of how their beliefs influence their behavior and the behavior of others. Knowledge of Others Effective leaders develop an understanding of stakeholders and through that understanding they build strong interpersonal relationships throughout the organization. Vision Effective leaders are individuals with a vision, and they are able to effectively communicate that vision to others, both inside and outside of the organization. Vision Using their vision as the focal point, they unite a faculty into a cohesive group with the main idea being the attainment of established goals. Influence Effective leaders develop a deep familiarity with the organization and are able to influence others to work in innovative ways. Influence The influence of effective leadership goes beyond routine compliance; it is directive and orderly. Influence Leaders with influence have the ability to communicate their beliefs and ideas so that others are influenced directly or indirectly. Effective Communication Effective communication is a critical element of leadership. Effective Communication Using effective communication strategies, the leader empowers followers, enabling them to feel comfortable in discussing problem issues and taking initiative to provide suggestions. Effective Communication Using effective communication strategies, effective leaders acquire feedback from followers, an important aspect of effective decision making. Trust Effective leaders develop trust, which comes from the fact that they say what they truly believe and behave in a consistent manner. Trust Through consistent behavior, effective leaders create an environment of mutual trust, respect, and open lines of communication. Task and Relationship Effective leaders choose a leadership style that reflects a concern for people while focusing on task completion. Quality Decision Making Effective leaders develop an understanding of the culture of the organization and respect that culture as organizational decisions are made. Effective Leaders Effective leaders strive to create an environment that accepts and promotes individual differences. As a result, they empower the entire organization. Effective Leaders Stand on principles and base their actions on those principles. Leader vs. Boss Hear people saying that a leader can always be a boss but not every boss can be a leader? Although leaders and bosses have nearly identical definitions, in effect, they are different in today’s competitive world. Just the term “leader” evokes more positivity than that of “boss.” While a boss is mostly concerned with outcomes, a leader is concerned with the overall process and the people who work for the outcome. A study conducted in Jakarta, Indonesia even showed that many people prefer a good leader than a good boss but on a different study, when people dream of getting more advances in the future, what they visualize is having a 1. Leaders lead rather than rule. We all know that we prefer someone who does an example first rather than someone who just demands and boss around. Of course, we can expect some complaints when our leader invokes rules and don’t follow it. We like it more if our leader experiences what we do since we are more likely to follow when he can relate to us. 2. Leaders listen and speak rather than command. Bosses tend to give orders; they need their employees to listen and to obey. However, leaders always listen to the opinions of their colleagues and regard them as important. Leaders are always ready for advising, discussion and any feedback an employee has to offer. This reciprocity makes any individual employee feel stronger and gives him or her confidence to follow the leader. 3. Leaders motivate While working on projects, people have their ups and downs. Through this roller coaster, bosses are more likely to intimidate into action while leaders will motivate to action. Those who demand and demand are the ones who are annoying and irritating. One of the best things about leaders is that they offer empathy and prepare a group for the tasks at hand. This is very important, seeing as whenever colleagues are not prepared for certain duties, leaders are there to support, teach and back them up. Leaders know that each employee is on the team for a reason and they have faith in every concerted effort. 4. Leaders learn and teach A true leader is someone who stays humble and admits that they have more to learn. Reviewing mistakes and correcting them so as not to repeat them is a true leader’s strength. This explains the tendency of leaders to always pay attention to their colleagues, knowing there is always more to learn from them. Moreover, leaders are not only takers, but givers, as well. A good leader is not greedy for sharing knowledge and experience with someone else; instead, the leader teaches and nurtures new professionals.

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