MGT 101 Module Leadership 2020 PDF

PRINCIPLES OF MANAGEMENT (MGT 101) Module 4 Leadership Approaches and Theories 1  Understanding Individual Behaviour Attitudes are value statements, either favorable or unfavorable, concerning objects, people, or events. Attitudes are made up of thre...

PRINCIPLES OF MANAGEMENT (MGT 101) Module 4 Leadership Approaches and Theories 1  Understanding Individual Behaviour Attitudes are value statements, either favorable or unfavorable, concerning objects, people, or events. Attitudes are made up of three components: cognition, affect, and behavior. Perception: A process by which individuals organize and interpret their sensory impressions in order to give meaning to their environment. People act on their perceptions, not on reality. because these perceptions can be distorted, people often misinterpret events and activities. Personality: It is the combination of the psychological traits that characterize that person. An individual’s personality is the combination of the psychological traits that we use to classify that person: for example, as being a quiet, loud, aggressive, ambitious, or persistent, shyness, aggressiveness, submissiveness, laziness, ambitiousness, loyalty, and timidity, are exhibited consistently in a large number of situations, we call them personality traits. Behavior: A response of an individual or group to an action, environment, person, or stimulus Learning: Any relatively permanent change in behavior that occurs as a result of experience. Stress As a cause that is mental, physical, or social, force or pressure that puts real or perceived demands on the body, emotions, mind, or spirit. Stress management consists of making changes to your life if you are in a constant stressful situation, preventing stress by practicing self-care and relaxation and managing your response to stressful situations when they do occur. Leadership Theories and Issues: Leadership is an influence process; therefore, leaders are people who, by their actions, encourage a group of people to move toward a common or shared goal. A leader is an individual; leadership is the function that the individual performs. Individuals within an organization who have authority are often referred to as leaders, regardless of how they act in their jobs but, just because someone is supposed to be a formal leader in an organization, he or she may or may not exercise leadership. In fact, informal or emergent leaders can exhibit leadership even though they do not hold formal leadership positions. 2 Leaders establish direction by developing a vision; then they communicate this vision to people and inspire them to overcome obstacles. Managers Versus Leaders “Not all leaders are managers, nor are all managers leaders.” Managers - Persons whose influence on others is limited to the appointed managerial authority of their positions to reward and punish. Leaders - Persons with managerial and personal power who can influence others to perform actions beyond those that could be dictated by those persons’ formal (position) authority alone. 1. Trait theories of leadership Theories that attempt to isolate characteristics that differentiate leaders from nonleaders. They attempt to identify traits that always differentiate leaders from followers and effective leaders from ineffective leaders have failed. A breakthrough occurred when researchers began to organize the traits into categories and this became known as the Big Five Personality Framework where five groups of traits were found to be consistently present among leaders. The five basic traits are (Big Five Model): 1. Extraversion. Comfort level with relationships. Extraverts tend to be gregarious, assertive, and sociable. (Introverts tend to be reserved, timid, and quiet). 2. Agreeableness. Individual’s propensity to defer to others. High agreeableness people— cooperative, warm, and trusting. (Low agreeableness people—cold, disagreeable, and antagonistic). 3. Conscientiousness. A measure of reliability. A high conscientious person is responsible, organized, dependable, and persistent. (Those who score low on this dimension are easily distracted, disorganized, and unreliable). 4. Emotional stability. A person’s ability to withstand stress. People with positive emotional stability tend to be calm, self-confident, and secure. (Those with high negative scores tend to be nervous, anxious, depressed, and insecure). 5. Openness to experience. The range of interests and fascination with novelty. Extremely open people are creative, curious, and artistically sensitive. (Those at the other end of the openness category are conventional and find comfort in the familiar). 3 2. Leadership Behavior Theories and Styles Theories that attempt to isolate behaviors that differentiate effective leaders from ineffective leaders. Behavioral studies focus on identifying critical behavioral determinants of leadership that, in turn, could be used to train people to become leaders. 1. The University of Iowa study identified three leadership styles: Autocratic style of leadership - A leader who centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation. Democratic style of leadership - A leader who involves employees in decision making, delegates authority, encourages participation in deciding work methods and goals, and uses feedback to coach employees. Laissez-faire style of leadership - A leader who gives employees complete freedom to make decisions and to decide on work methods 2. The Ohio State Study identified two factors, Consideration - which involves being considerate of followers’ ideas and feelings; Initiating structure - which involves structuring work and work relationships to meet job goals. The study concluded that a high–high leader (high in consideration and high in initiating structure) achieved high subordinate performance and satisfaction, but not in all situations. 3. The University of Michigan study identified two styles, Employee oriented, - which emphasizes interpersonal relationships and taking care of employees’ needs Production oriented - which emphasizes technical or task aspects of a job. The study concluded that employee-oriented leaders were associated with high group productivity and higher job satisfaction. 4 3. The Contingency Theories The Contingency Theories take the context in which the leader is operating into consideration and tries to isolate the conditions that allow for effective leadership. Leadership researchers were discovering that predicting leadership success involved something more complex than isolating a few leader traits or preferable behaviours. They began looking at situational influences. Specifically, which leadership styles might be suitable in different situations and what were these different situations? Now let’s examine three contingency theories: Fiedler, Hersey-Blanchard situational leadership and Path-goal—which each look at defining leadership style and the situation and attempt to answer the contingency: If this is the context (or situation), then this is the best leadership style to use. 1. The Fiedler Model The first comprehensive contingency model for leadership was developed by Fred Fiedler and was based on the premise that a certain leadership style would be most effective across all different types of situations. Fiedler proposed that a key factor in leadership success was an individual’s basic leadership style, which could be categorized as either task oriented or relationship oriented. To measure a leader’s style, Fiedler developed the least-preferred co-worker (LPC) questionnaire. This questionnaire contained 18 pairs of contrasting adjectives—such as pleasant–unpleasant and boring–interesting. Respondents were asked to think of all the co- workers they had ever had and to describe that one person with whom they least enjoyed working by rating him or her on a scale of 1 to 8 for each of the sets of adjectives. If the leader described the least preferred co-worker in relatively positive terms, then the leader was primarily interested in good personal relations with co-workers and the style would be described as relationship oriented. In contrast, if the leader saw the least preferred co-worker in relatively unfavourable terms, then that leader was primarily interested in productivity and his or her style would be labelled as task oriented. 5  Fiedler did acknowledge that a small number of people might fall between these two extremes, but he also assumed a person’s leadership style was fixed regardless of the situation. E.g. Richard Branson, founder and CEO of Virgin Group, is a relationship- oriented leader. Branson is fun loving, takes a personal interest in the needs of employees, emphasizes interpersonal relations, and accepts individual differences among workers 2. The Situational Leadership Theory (SLT) A contingency theory that focuses on followers’ readiness. It was developed by Paul Hersey and Ken Blanchard Let’s stop here to clarify two points: (1) why a leadership theory focuses on the followers, and (2) what is meant by the term readiness. - The emphasis on the followers reflects the reality that it is the followers who accept or reject the leader, regardless of what the leader does, so the group’s effectiveness depends on the actions of the followers. - Readiness, as defined by Hersey and Blanchard, refers to the extent to which people have the ability and willingness to accomplish a specific task. In SLT Leadership theory, the leadership style which is best suited with each type of follower. _ People/followers who are both unable and unwilling to take responsibility for doing something aren’t competent or confident. Leadership style for these followers is “Telling” in which the leader defines roles and tells people what, how, when, and where to do various tasks. People/followers who are unable but willing to do the necessary job tasks are motivated but lack the appropriate skills. The appropriate leadership style for these followers is Selling in which the leader provides both directive and supportive behaviour. People/followers who are able but unwilling to do what the leader wants are competent, but don’t want to do something. The best leadership style for these followers is Participating in which the leader and followers share in decision making and the main role of the leader is facilitating and communicating. People/followers are both able and willing to do what is asked of them. Best type of leadership style is Delegating in which the leader provides little direction or support. 6 3. The Path-Goal Theory In this theory it is the job of the leader to provide the followers with the information, support, and other necessary resources to equip them to achieve their goals. The term path-goal derives from the belief that effective leaders clarify the path to help their followers get from where they are to the achievement of their work goals and to make the journey along the path easier by reducing roadblocks and pitfalls. Four leadership behaviours: A directive leader lets subordinates know what’s expected of them, schedules work to be done, and gives specific guidance on how to accomplish tasks. A supportive leader shows concern for the needs of followers and is friendly. A participative leader consults with group members and uses their suggestions before making a decision. An achievement-oriented leader sets challenging goals and expects followers to perform at their highest level. Leadership styles Charisa comes from the Greek word meaning gift. When talking about a charismatic leader one will refer to someone with certain gifts or abilities. A charismatic leader will often gain followers through personality rather than through power or authority. These are often traits that a leader is born with, thus continuing the debate whether leaders are born or developed. The leader must have vision, expressed as an idealized goal. The leader must be willing to take on high personal risk and engage in self-sacrifice to achieve the vision. In doing so the leader needs to remain sensitive to the feelings and needs of their followers. Many early leadership theories viewed leaders as transactional figures who lead primarily by using social exchanges (or transactions) and guide or motivate followers to work toward established goals by exchanging rewards for their productivity. But another type of leader—a transformational leader—stimulates and inspires (transforms) followers to achieve extraordinary outcomes. Transformational leadership produces levels of employee effort and performance that go beyond what would occur with a transactional approach and instils in followers the ability to question established views, including those held by the leader. 7 Current leadership issues Contemporary issues of leaders are that of : Power, Trust and Empowering employees. Power Power is the capacity of a leader to influence work actions or decisions. And because leadership is all about influence, we need to look at how leaders acquire power. Trust Trust is defined as the belief in the integrity, character, and ability of a leader. Followers who trust a leader are willing to be vulnerable to the leader’s actions because they are confident that their rights and interests will not be abused. In today’s uncertain environment, an important consideration for leaders is building trust and credibility, both of which can be extremely fragile Empowering Employees Empowerment involves increasing the decision-making discretion of workers. empowerment involves increasing the decision-making discretion of workers.. They are developing budgets, scheduling workloads, controlling inventories, solving quality problems, and engaging in similar activities that until very recently were viewed exclusively as part of the manager’s job. The reason for empowerment is that organizational downsizings left many managers with larger spans of control. In order to cope with the increased work demands, managers had to empower their people. 8  MOTIVATING YOUR EMPLOYEES Motivation theories/perspectives: All managers need to be able to motivate their employees, which requires understanding what motivation is. Motivation refers to the process by which a person’s efforts are energized, directed, and sustained toward attaining a goal. Individuals differ in motivational drive and their overall motivation varies from situation to situation. Early Motivation Theories: 1. Hierarchy of Needs theory Abraham Maslow’s - Hierarchy of Needs theory, is one of the most widely known theories of motivation. Maslow was a psychologist who proposed that within every person is a hierarchy of five needs: 1. Physiological needs such as food, drink, shelter, sex, and other physical requirements 2. Safety needs such as security and protection from physical and emotional harm as well as assurance that physical needs will continue to be met 3. Social needs including affection, belongingness, acceptance, and friendship 4. Esteem needs, which include internal esteem factors such as self-respect, autonomy, and achievement, and external esteem factors such as status, recognition, and attention; and 5. Self-actualization needs that include growth and achieving one’s potential. 9 2. ERG motivation theory Alderfer Clayton P. Alderfer's ERG theory condenses Maslow's five human needs into three categories: Existence, Relatedness and Growth. 1. Existence Needs Include all material and physiological desires (e.g., food, water, air, clothing, safety, physical love and affection). Maslow's first two levels. 2. Relatedness Needs Encompass social and external esteem; relationships with significant others like family, friends, co-workers and employers. This also means to be recognized and feel secure as part of a group or family. Maslow's third and fourth levels. 3. Growth Needs Internal esteem and self actualization; these impel a person to make creative or productive effects on himself and the environment (e.g., to progress toward one's ideal self). Maslow's fourth and fifth levels. This includes desires to be creative and productive, and to complete meaningful tasks 3. Two-Factor Theory Frederick Herzberg’s two-factor theory proposes that intrinsic factors are related to job satisfaction while extrinsic factors are associated with job dissatisfaction. Herzberg wanted to know when people felt exceptionally good (satisfied) or bad (dissatisfied) about their jobs. He concluded from people’s responses that certain characteristics were consistently related to job satisfaction and other characteristics were related to job dissatisfaction. When people felt good about their work, they tended to cite intrinsic factors arising from the job itself, such as achievement, recognition, and responsibility. When they were dissatisfied, they tended to cite extrinsic factors arising from the job context, such as company policy, administration, supervision, interpersonal relationships, and working conditions. 4. Three-Needs Theory David McClelland proposed the three-needs theory, which says three acquired (not innate) needs are major motives in work. These three needs include: The need for achievement (nAch), which is the drive to succeed and excel in relation to a set of standards 10  The need for power (nPow), which is the need to make others behave in a way that they would not behave otherwise, and The need for affiliation (nAff), which is the desire for friendly and close interpersonal relationships.. Contemporary Motivation Theories 1. Equity theory The term equity is the concept of fairness and comparable treatment when compared with others who behave in similar ways. There’s considerable evidence that employees compare themselves to others and that inequities influence how much effort they exert. Equity theory, proposes that employees compare what they get from a job (outcomes) to what they put into it (inputs) and then compare their inputs-outcomes ratio with the inputs-outcomes ratios of relevant others. 2. Expectancy theory The most comprehensive explanation of how employees are motivated is Victor Vroom’s expectancy theory, which states that an individual tends to act in a certain way based on the expectation that the act will be followed by a given outcome and on the attractiveness of that outcome to the individual. Whether you are motivated to work hard, at any given time, depends on your goals and your perception of whether a certain level of performance is necessary to attain those goals. The key to expectancy theory is understanding an individual’s goals and the links between effort and performance, between performance and rewards, and between rewards and individual goal satisfaction. 3. Goal-setting theory Substantial research support has been established for goal-setting theory, which says that specific goals increase performance and that difficult goals result in higher performance than easy goals. That means that: (1) Working toward a goal is a major source of job motivation and (2) specific and challenging goals are superior motivating forces. The specificity of the goal itself acts as an internal stimulus. For instance, when a sales rep commits to making eight sales calls daily, he has a specific goal to try to attain. Interestingly, setting one’s own goals sometimes elicited superior performance; in other cases, individuals performed better when their manager assigned goals. 11  However, when employees might resist accepting difficult challenges, participation in goal setting is probably more effective than assigning goals. Lastly, people do better if they get feedback on how well they’re progressing toward their goals because it helps identify discrepancies between what they’ve done and what they want to do. 4. Reinforcement Perspectives: Reinforcement theory is seen in the model where the organization’s rewards reinforce the individual’s performance. Rewards also play a key part in equity theory. Individuals compare the rewards (outcomes) they have received from the inputs or efforts they have made with the inputs- outcomes ratio of relevant others. If inequities exist, the effort expended may be influenced. Financial Motivational Techniques: Wage rate - Rate of pay based on per unit of production or per period of worktime on the job. Piece rate- Payment by results. Wage determination system in which the employee is paid for each unit of production at a fixed rate. Overtime rate - The augmented pay per hour that an hourly worker is legally entitled to earn when they put in more than forty hours of work per week Salary- Wages received on a regular basis, usually weekly, bi-weekly , or monthly. 12  Commission- Mutually agreed upon, fee accruing to an agent, broker, or salesperson for facilitating, initiating, and/or executing a commercial transaction. Performance related pay - A financial reward system for employees where some or all of their monetary compensation is related to how their performance is assessed relative to stated criteria. Bonus- A bonus is a financial compensation that is above and beyond the normal payment expectations of its recipient Fringe benefits - Compensation in addition to direct wages or salaries, such as company car, house allowance, medical insurance, paid holidays, pension schemes, subsidized meals. Rewards- Incentive plans: Scheme to support and reinforce desirable behavior, such as wage rate that increases with the productivity of the worker. Non-Financial Motivational Techniques: Job simplification - Job design technique in which jobs are broken into relatively simple tasks. Job rotation- A job design technique in which employees are moved between two or more jobs in a planned manner and the aim is to expose the employees to wider variety of skills and experiences. Job enlargement- A job design technique in which the number of tasks associated with a job is increased and appropriate training provided to add greater variety to activities. Job enrichment - involves enhancing employees’ roles through providing a wider range of tasks for them to complete during the working day. Job characteristics model- A framework for analyzing and designing jobs that identifies five primary core job dimensions, their interrelationships, and their impact on outcomes. Quality circles - Quality Circles can be described as a small group of employees of the same work area, doing similar work that meets voluntarily and regularly to identify, analyse and resolve work related problems. 13  Participative management. - Type of management in which employees at all levels are encouraged to contribute ideas towards identifying and setting organizational-goals, problem solving, and other decisions that may directly affect them. Praise - the act of expressing approval or admiration or commendation for a person’s achievements or qualities. Awards: -Something that is conferred or bestowed especially on the basis of merit or need e.g employee of the month. MANAGING WORK TEAMS What are the Different Types of Work Team? Four most common forms of teams in an organization— problem-solving, self-managed, cross- functional, and virtual team. Problem-solving teams: members from the same department or functional area that share ideas or offer suggestions on how work processes and methods can be improved. A self-managed work team is a formal group of employees that operates without a manager and is responsible for a complete work process or segment that delivers a product or service to an external or internal customer. 14  A cross-functional team consists of employees from about the same hierarchical level but from different work areas in the organization Virtual teams are teams that use technology to link physically dispersed members in order to achieve a common goal. What Makes a Team Effective? An effective team has a common plan and purpose. This common purpose provides direction, momentum, and commitment for team members Teams also need specific goals that facilitate clear communication and help teams maintain their focus on getting results. Team efficacy describes when teams believe in themselves and believe they can succeed. Effective teams have confidence in themselves and in their members. Effective teams need some conflict that is managed. What is a Group? A group is two or more individuals as two or more interacting and interdependent individuals who come together to achieve specific goals. There are two types of groups namely formal groups and informal groups. 1. Formal Groups are work groups that are defined by the organization’s structure and have designated work assignments and specific tasks directed at accomplishing organizational goals. 2. Informal Groups are social groups that occur naturally in the workplace and tend to form round friendships and common interests. 15 Factors that determine group performance Composition of the Group:- It refers to the extent of homogeneity in members of the group. If members of the group are similar in one or more ways such as their age, teaching experience, qualifications, expertise, cultural background and several other such variables which are important for work performance, then the group is said to be homogeneous. Size of the Group:- It refers to the number of members in the group. The size of the group influences group performance. If, on account of its size, the group has more resources at its disposal, it may be able to perform many independent tasks. It may be able to generate more ideas and solutions. Norms: - According to Davis (1964), a norm refers to a standard against which the appropriateness of behaviour is judged. Thus, a norm determines expected behaviour in a particular circumstance. Cohesiveness: -It refers to a group’s commitment towards staying together resulting from the forces operating on members to do so. The forces responsible for cohesiveness are attraction to the group, motivation to stay in the group and resistance to leave the group. 16 Stages of Team Development Most teams find themselves in a continual state of change. There’s a general pattern to most teams’ evolution. Forming is characterized by a great deal of uncertainty about the group’s purpose, structure, and leadership. This stage is complete when members think of themselves as part of a group. The storming stage is one of intragroup conflict. There is resistance to the control that the group imposes on individuality and conflict over who will control the team. When complete, there will be relatively clear leadership within the team. Norming stage is one in which close relationships develop and members begin to demonstrate cohesiveness. There is now a stronger sense of team identity and camaraderie. It is complete when the team structure solidifies and members have assimilated a common set of expectations of appropriate work behavior. The fourth stage is performing. The structure is fully functional and accepted by team members. For permanent teams, performing is the last stage of their development. For temporary teams, there is an adjourning stage where the team prepares for its disbandment. Management practices or ways use to influence teams/groups The three most popular ways include: proper selection, employee training, rewarding the appropriate team behaviors 17 References: http://www.businessdictionary.com https://www.bbc.co.uk/bitesize/guides/zjncbdm/revision/3 https://www.yourcoach.be/en/employee-motivation-theories/erg-motivation-theory-alderfer.php https://earlychildstudyblog.wordpress.com/2018/02/18/the-five-stages-of-team-development/ https://www.investopedia.com/terms/b/bonus.asp https://dictionary.cambridge.org/dictionary/english/award https://study.com/academy/lesson/what-is-stress-management-definition-benefits.html 18