Management Concepts and Organizational Behaviour PDF

MANAGEMENT CONCEPTS AND ORGANISATIONAL BEHAVIOUR UNIT-5 Leadership: Leadership is the one of the most important functions of management. Leading involves directing, influencing & motivating employees to perform. According to Peter Drucker, “Leadership is shifting...

MANAGEMENT CONCEPTS AND ORGANISATIONAL BEHAVIOUR UNIT-5 Leadership: Leadership is the one of the most important functions of management. Leading involves directing, influencing & motivating employees to perform. According to Peter Drucker, “Leadership is shifting of own vision to higher sights, the raising of man’s performance to higher standards, the building of man’s personality beyond its normal limitations.” Leadership is the ability to guide, influence, and inspire a group of people to work together towards a common goal. Importance of Leadership 1. Initiates action 2. Motivation 3. Providing guidance 4. Creating confidence 5. Co-ordination 6. Effective planning 7. Inspiration & motivation Role of Leader: A Leader’s role is always to ensure his/her team achieves the task in hand, but an effective leader will also ensure they meet more subtle requirement. Strong focus Integrity Good engagement with others Looking at the bigger picture Resourcefulness Organisational Clout Effective communication  Leadership Styles Leadership style is a leader’s approach to providing direction, implementing plans, and motivating people. In 1939, psychologist Kurt Lewin and a team of researchers determined that there were three basic leadership styles: Authoritarian (Autocratic), Participative (Democratic) and Delegative (Laissez-Faire). They put these three leadership styles into action with a group of school children charged with the completion of a craft project to determine responses to the leadership styles. Authoritarian (Autocratic) Leadership A leader who adopts the authoritarian style dictates policy and procedure, and directs the work done by the group without looking for any meaningful input from them. The group led by an authoritarian would be expected to complete their tasks under close supervision. Researchers found there was less creativity under an authoritarian leadership style, but the children were still productive. While authoritarian leadership sounds stifling, it has its place: it’s best applied to situations where there is little time for group decision making, or when the leader has expertise that the rest of the group does not. When authoritarian leadership strays into areas where it’s not needed, it can create dysfunctional environments where followers are the “good guys” and domineering leaders the “bad guys.” Participative (Democratic) Leadership Group members feel engaged in the decision-making process when they have a participative leader. Those leaders practicing the participative leadership style offer guidance to the group, as for their input in decision making but retain final say. Participative leaders make their group feel like they’re part of a team, which creates commitment within the group. Lewin’s researchers found that the participative style of leadership yielded the most desirable results with the school children and their craft project. They weren’t quite as productive as the children in the authoritarian group, but their work was a higher quality. There are drawbacks to the participative style. If roles within the group are unclear, participative leadership can lead to communication failures. If the group is not skilled in the area in which they’re making decisions, poor decisions could be the result. Delegative (Laissez-Faire) Leadership Leaders practicing the delegative leadership style are very hands-off. They offer little or no guidance to their group and leave decision making up to the group. A delegative leader will provide the necessary tools and resources to complete a project and will take responsibility for the group’s decisions and actions, but power is basically handed over to the group. Lewin and his team found that the group of children trying to complete the craft project under the delegative leader were the least productive. They also made more demands of their leader, were unable to work independently and showed little cooperation. The delegative style is particularly appropriate for a group of highly skilled workers, and creative teams often value this kind of freedom. On the other hand, this style does not work well for a group that lacks the needed skills, motivation or adherence to deadlines, and that can lead to poor performance. Bureaucratic Leadership Under bureaucratic leadership, a leader believes in structured procedures and ensure that his or her employees follow procedures exactly. This type of leadership leaves no space to explore new ways to solve issues and in fact work by book. This type of leadership is normally followed in hospitals, universities, banks (where a large amount of money is involved), and government organizations to reduce corruption and increase security. Self-motivated individuals who are highly energetic often feel frustrated because of the organization’s inability to adapt to changing environments. Directive Leadership Directive Leadership provides guidance about what should be done and how to do it, scheduling work, and maintaining standards of performance. Thus, it may be inferred that directive leadership is effective as the subordinators have an external locus of Control, lacks experience, has a high need for clarity, or a low need for achievement. Also, when the task is unstructured, or there is a conflict between workgroups, a more directive style would be useful. Supportive Leadership Supportive Leadership show concern for the needs of the employees, the leader is friendly and approachable. Supportive Leadership would be more suitable for highly structured tasks, under bureaucratic and formal authority relationship. In supportive Leadership, leaders support their subordinates officially, and sometimes personally also. A leader always tries to fulfil their requirements, it boosts employees’ morale also. Achievement Oriented Leadership Achievement-oriented Leadership encourages employees to perform at their highest level by setting challenging goals, emphasizing excellence, and demonstrating confidence in employees’ abilities. Achievement Oriented Leadership is largely suitable for unstructured tasks, where the subordinate need for achievement is high. Transactional Leadership Transactional leadership is a set of activities that involve an exchange between followers and leader and deal with daily tasks (Bass, 1990). Transactional leadership deals with those day- to-day tasks that get the job done. The majority of models we talked about in the last section—Fiedler’s Contingency Theory, Path-Goal among them—are based on the concept of this exchange between leaders and followers. The leader provides followers with direction, resources and rewards in exchange for productivity and task accomplishment. Charismatic Leadership Charismatic leaders don’t doubt their own decisions, they move forward unwaveringly and believe that the decisions they make are the correct ones. They move through a crowd of their followers shaking hands and lending an encouraging word. They are undeniably clear on their expectations and where they see the company going. They have mastered the art of developing images for themselves that others want to emulate. Charismatic leaders have four common personality traits: High degree of confidence and lack of internal conflict High energy and enthusiasm Good communication skills Good image and role model The relationship between charismatic leader and followers is an emotional one (this can sometimes go awry—just think about the relationship between the leaders and followers in a cult). In order for a charismatic leader to be effective, the situation has to be right. There are four situations required for a charismatic leader to have success: Organization is in a time of crisis or stress. Organization is in need of change. There is opportunity for the organization to have new goals or direction. Availability of dramatic symbols (like the CEO taking a pay cut or donating his salary to charity) In spite of a limited amount of scientific study where charismatic leaders are concerned, researchers agree there are applications and lessons to be learned out of this type of leadership. Leaders should have belief in their own actions. They should seek to develop bonds with their followers. And they must be able to communicate their messages clearly. Strategic Leadership Strategic leaders sit at the intersection between a company's main operations and its growth opportunities. He or she accepts the burden of executive interests while ensuring that current working conditions remain stable for everyone else. This is a desirable leadership style in many companies because strategic thinking supports multiple types of employees at once. However, leaders who operate this way can set a dangerous precedent with respect to how many people they can support at once, and what the best direction for the company really is if everyone is getting their way at all times. Transactional Leadership Transactional leaders are fairly common today. These managers reward their employees for precisely the work they do. A marketing team that receives a scheduled bonus for helping generate a certain number of leads by the end of the quarter is a common example of transactional leadership. When starting a job with a transactional boss, you might receive an incentive plan that motivates you to quickly master your regular job duties. For example, if you work in marketing, you might receive a bonus for sending 10 marketing emails. On the other hand, a transformational leader might only offer you a bonus if your work results in a large amount of newsletter subscriptions. Transactional leadership helps establish roles and responsibilities for each employee, but it can also encourage bare-minimum work if employees know how much their effort is worth all the time. This leadership style can use incentive programs to motivate employees, but they should be consistent with the company's goals and used in addition to gestures of appreciation. Transformational Leadership Transformational leadership takes a chapter out of the book of charismatic leadership. (Bass, 1990) Followers admire and are inspired to act. But the transformational leadership concept takes that one step further and expects intellectual stimulation from a leader, as well as individual consideration, in which a leader singles out followers and provides them with additional motivation. Transformational leaders motivate and teach with a shared vision of the future. They communicate well. They inspire their group because they expect the best from everyone and hold themselves accountable as well. Transformational leaders usually exhibit the following traits: Integrity Self-awareness Authenticity Empathy Measuring a leader’s ability to inspire and enable is a challenge, so researchers rely on anecdotes to supply data. This makes scientific study difficult. And even though this theory emphasizes leadership behaviour, it’s difficult to determine how a leader can learn to be charismatic and transformational. Coach-Style Leadership Similarly, to a sports team's coach, this leader focuses on identifying and nurturing the individual strengths of each member on his or her team. They also focus on strategies that will enable their team work better together. This style offers strong similarities to strategic and democratic leadership, but puts more emphasis on the growth and success of individual employees. Rather than forcing all employees to focus on similar skills and goals, this leader might build a team where each employee has an expertise or skill set in something different. In the long run, this leader focuses on creating strong teams that can communicate well and embrace each other's unique skill sets in order to get work done. A manager with this leadership style might help employees improve on their strengths by giving them new tasks to try, offering them guidance, or meeting to discuss constructive feedback. They might also encourage one or more team members to expand on their strengths by learning new skills from other teammates.  Theories of Leadership Great Man theory- Thomas Carlyle Assumption: 1. The leaders are born and not made and possess certain traits which were inherited 2. Great leaders can arise when there is a great need. Proposed in the 19th century Earlier leadership was considered as a quality associated mostly with the males Some people are born with the necessary attributes that set them apart from others. These traits are responsible for their assuming positions of power and authority Those in power deserve to be there because of their special endowment The theory contends that these traits remain stable over time and across different groups All great leaders share these characteristics regardless of when and where they lived Criticism: traits cited as being important to be an effective Doesn’t talk about the effectiveness of leader Trait Theory – Ralph M. Stogdill Ralph. M. Stogdill analysed data and findings from over a hundred leadership-related studies. He found there wasn't much agreement on the key traits.  He argued that if all the findings were combined, the list became too long to be useful as a guide for selecting future leaders. He proposed the following traits in an effective leader: Physical Traits: energy, appearance, height, intelligence, ability Personality traits: adaptability, aggressiveness, enthusiasm and self-confidence. Social Skills: cooperativeness, interpersonal skills and administrative ability Big Five Personality Model 1. Conscientiousness – impulsive, disorganized vs. disciplined, careful 2. Agreeableness– suspicious, uncooperative vs. trusting, helpful- 3. Neuroticism – calm, confident vs. anxious, pessimistic- 4. Openness to Experience – prefers routine, practical vs. imaginative, spontaneous 5. Extraversion – reserved, thoughtful vs. sociable, fun-loving Trait Theories: Criticism 1. Too simplistic in approach. 2. Doesn’t hold good for all circumstances and situations. 3. Ignores other factors that influence the development of leaders. 4. There is no congruence among different thinkers of trait theories. 5. No definitive universal test to measure the traits and their degree. 6. Ignores the fact that traits may change over time.  Behavioural Theories The failures of early trait studies led researchers in the late 1940s through the 1960s to wonder whether there was something unique in the way effective leaders behave. Trait research provides a basis for selecting the right people for leadership. In contrast, behavioural theories of leadership implied we could train people to be leaders. Ohio State Studies in the late 1940s Aimed at identifying specific behaviours effective leaders executed (compared to ineffective leaders). A survey was conducted with the Leadership Behaviour Description Questionnaire (LBDQ), on leaders to identify what types of behaviours were most effective in leading. Nine specifics behaviours were identified and measured. Following two dimensions substantially accounted for most of the leadership behaviour described by employees: 1. Initiating Structure 2. Consideration Initiating Structure The extent to which a leader is likely to define and structure his or her role and those of employees in the search for goal attainment. Establishing formal lines of communication, and determine how tasks will be performed. Specifying the task to be performed by each member of his group, sets down deadlines, gives directions and puts pressure on them for its fulfilment. Consideration Extent to which a person’s job relationships are characterized by mutual trust, respect for employees’ ideas, and regard for their feelings. A leader high in consideration helps employees with personal problems, is friendly and approachable, treats all employees as equals, and expresses appreciation and support. The study reports that leaders high in initiating structure as well as in consideration generally results in positive outcomes but there are exceptions which indicate that situational factors should be integrated into the theory. University of Michigan’s Studies The Michigan Leadership Studies started in the 1950s Aimed at identifying the principles and types of leadership styles that led to greater productivity and enhanced job satisfaction among workers. The studies identified two sets of leadership styles. Employee-oriented leader Emphasizes human relation Taking a personal interest in the needs of employees and accepting individual differences among them. Similar to consideration. Production oriented leader Focuses on task-oriented activities. Accomplishing the group’s tasks. Similar to initiating structure. Managerial Grid Model- Robert Blake and Jane mouton (1969 The model helps to measure a manager’s relative concern for people and task. Reflects bi-directional nature of leadership. The Managerial Grid is based on two behavioural dimensions. 1. Concern for People: this is the degree to which a leader considers team members' needs, interests and areas of personal development when deciding how best to accomplish a task. 2. Concern for Production: this is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task. Blake & Mouton gave five leadership styles based on the above two dimensions with the help of a nine-point grid as shown in the next slide. Each style has its own characteristics and limitations Behavioural Theories: Criticism 1. Behavioural theory of Leadership proposes leadership styles but a specific leadership style may not be best in all circumstances. 2. Help managers develop particular leadership behaviours but they provide little guidance as to what constitutes effective leadership in different situations. 3. Difficult to say which style of leadership was significant in enabling one group to work better than another. 4. Does not consider the time factor Contingency theory: The contingency theory of leadership, also known as Fiedler's Contingency Theory, is a theory that states that the most effective leadership style is the one that best fits the situation at hand. The theory was developed in the 1960s by Austrian psychologist Fred Fiedler. Fiedler’s Theory of Leadership, is a model that suggests that the most effective leadership style for a given situation is the one that best aligns with the situation. Situational leadership theory is a leadership style that involves adapting to the situation and the people involved. Path-goal theory is a leadership model that explains how a leader's behaviour and style can affect their employees' motivation, satisfaction, and performance. The Situational Leadership Model (SLM) The Situational Leadership Model (SLM) is a leadership style that encourages leaders to adjust their approach based on the situation, the task, and the people they're leading. The SLM is based on the idea that there's no one-size-fits-all leadership style and that successful leadership is a combination of tasks and relationships. The model suggests that leaders should consider the following factors when choosing how to lead: The followers: Consider the abilities of the individuals or team they're leading. The work environment: Consider the factors that impact the work environment. The situation: Consider the needs of the team or individual members. Team- A team is a small number of people, with complementary skills, who are committed to a common purpose, performance goals, and approach for which they are mutually accountable."  Characteristics of an Effective Team 1. Effective teams operate in an environment in which there is two-way trust in an environment of open and honest communication. 2. Feedback on "performance" should be two-way and constant. 3. It should provide information to all members of the team on how their work supports the specific and overall effort of the team and the practice. 4. Listening is a feature of that communication. How to be an effective team MEMBER Stages in Team Building  1. Forming: Team members get to know each other and aren't very productive. 2. Storming: Team members may experience conflict due to clashing personalities or opinions. This stage can be difficult and critical, and team performance may decrease. 3. Norming: Team members find their groove and become more comfortable asking for help. They agree on norms, working styles, and systems to follow. 4. Performing: Team members work together at their highest potential. 5. Adjourning: Also known as the mourning stage, this is the final stage. Team members bring a sense of closure and bonding between members. Team Leader Roles `  Approaches to Managing Organizational Change5 Three stage model One of the cornerstone models for understanding organizational change was developed by Kurt Lewin back in the 1940s, and still holds true today. His model is known as Unfreeze – Change – Refreeze, refers to the three-stage process of change he describes. Kurt Lewin, a physicist as well as social scientist, explained organizational change using the analogy of changing the shape of a block of ice. Unfreeze ⚫ Provide rationale for change ⚫ Create minor levels of guilt/anxiety about not changing ⚫ Create sense of psychological safety concerning change Change- ⚫ Provide information that suspects proposed changes ⚫ Bring about actual shifts in behavior Refreeze ⚫ Implement new evaluation systems ⚫ Implement new hiring and promotion systems Three stage model ⚫ Unfreezing is the process which involves finding a method of making it possible for people to let go of an old pattern that was counterproductive in some way. ⚫ Unfreezing is necessary to overcome the strains of individual resistance and group conformity. ⚫ Unfreezing can be achieved by the use of these three methods. – Increase the driving forces that direct behavior away from the existing situation or status quo. – Decrease the restraining forces that negatively affect the movement from the existing equilibrium. – Find a combination of the two methods listed above. Ways to Create a Culture That Embraces and Adapts to Change As part of today’s changing technological landscape, it is vital to create a workplace culture that adapts to those changes. Doing so starts with having a comfortable workplace culture to begin with. Making your employees feel at ease in their current working conditions is the basis of creating a workplace that can adapt to changes. Change is an inevitable part of the workplace no matter what industry you’re in. To make these changes simple to implement, companies need to address employee concerns. Many employees thrive on adaption and continuous learning, while others like to stick to the old tried and true policies and routines that they’ve been using for years. Savvy managers ensure all employees are happy when keeping up with changes in the workplace. Your workplace can follow these five ways to embrace change in the workplace, while ensuring zero employees get left behind. 1. Seek Feedback and Employee Engagement Seeking employee feedback is one way to show employees they are valued and their opinions and comfort are your priority. Asking for feedback is also a way of showing transparency in the company, which is crucial to maintaining a strong workplace culture despite potential changes. Another way to encourage employee engagement is to adapt to changes that result in more job satisfaction. This may include managing a mobile workforce. Today, one of the major workplace trends is working remotely or telecommuting, which some people prefer rather than coming into the office every day. Ask each employee their preferences — maybe some will opt to work remotely, but others would rather work from the office. Don’t just approach change from a management perspective, but from the employee’s perspective. When it comes to employee concerns, smart leaders talk less and listen more. 2. Recognize All Reactions to Change Not every employee responds to change in the same way. Therefore, it is important to address all the ways employees react to change. The best approach is to address all reactions with the same amount of concern. As mentioned earlier, some employees will respond well to change, while others will require a slower transitional period. It’s never too late to embrace change, either. For example, one of the oldest insurers in Canada recently decided to take a more proactive approach to digital literacy and employee engagement. Regardless of the size or age of the company, all employees should understand the need for change to remain competitive in the ever-changing technological and business world. 3. Lead Employees by Example Introducing a new technology or strategy to a workplace might be scary to employees who have become accustomed to using the same equipment and processes since they started working. Executives and managing staff should lead by example. They must be open to change to show employees it can be a lot easier than they think. If employees see company leadership frustrated and hesitant about change, they will follow that example. While it is easy for executives to get stuck in their ways and believe the technology and processes the company was founded on will always be the best option, everyone should remain open-minded. 4. Maintain a Sense of Community As changes occur at work, managers should maintain a culture where employees know they are welcome. When changes take over the workplace, remind longer-tenured employees that they are part of the team and that they are still a necessary component in making that team work. Part of maintaining a sense of community is ensuring employees know the company values and believe in them. If there is a two-way street of trust between employees and their managers, it creates a good foundation for embracing change. You can also maintain a sense of community by rewarding employees for trying, even if they fail. Mistakes and failure are inevitable when companies implement change. The only way to make employees feel safe with trying new things is to embrace their mistakes. If employees are afraid to fail, they will be very hesitant to try new ways of doing things. 5. Train Employees Appropriately While creating a basis for change is imperative, managers should be prepared to appropriately train employees to prepare for transition. Start by addressing employees’ fears and encouraging them to participate fully in every aspect of the process. Employees must be prepared to adapt as new technologies are constantly being introduced. Training acceptance is one of the most vital lessons to give employees. END