Managerial Leadership PDF

Managerial Leadership Study Material for HR-08 ALL INDIA MANAGEMENT ASSOCIATION CENTRE FOR MANAGEMENT EDUCATION SIM DEVELOPMENT TEAM Chairman Prof. D.N. Rao Members Prof. Neeraj Rajbanshi Prof. Anuja Pandey Prof. Susmita Paul Prof. Amit Bhatnagar Prof. Gurbandini Kaur Prof. Richa Mishra Ms....

Managerial Leadership Study Material for HR-08 ALL INDIA MANAGEMENT ASSOCIATION CENTRE FOR MANAGEMENT EDUCATION SIM DEVELOPMENT TEAM Chairman Prof. D.N. Rao Members Prof. Neeraj Rajbanshi Prof. Anuja Pandey Prof. Susmita Paul Prof. Amit Bhatnagar Prof. Gurbandini Kaur Prof. Richa Mishra Ms. Kowsalya G Author Sheetal Sharma Produced by Excel Books Private Limited for AIMA-CME Management House, 14 Institutional Area, Lodhi Road, New Delhi-110003  CONTENTS Unit I: Introduction to Leadership Lesson 1 Concept of Leadership 7 Lesson 2 Nature of Leadership 17 Lesson 3 Leadership Traits 26 Unit II: Focus on Leader Lesson 4 Behavioural Dimension of Leadership 35 Lesson 5 Contingency and Situational Dimension of Leadership 42 Lesson 6 Charismatic and Transformational Leadership 51 Lesson 7 Ethical Dimensions of Leadership 62 Unit III: Focus on the Followers Lesson 8 Power and Politics in Leadership 71 Lesson 9 Leadership and Influence 83 Lesson 10 Motivation and Mentoring 95 Lesson 11 Leadership for Team Building 107 Unit IV: Focus on Skills Lesson 12 Creativity and Innovation 123 Lesson 13 Communication and Conflict Resolution 136 Lesson 14 Strategic Leadership and Knowledge Management Skills 149 Lesson 15 Leadership for Cross Cultural Management 161 Lesson 16 Leadership Development and Succession Issues 174 Case Studies 187  MANAGERIAL LEADERSHIP SYLLABUS Introduction to Leadership: Concept and Nature of Leadership; Leadership Traits Focus on Leader: Behavioural Dimensions of Leadership; Contingency and Situational Dimensions of Leadership; Charismatic and Transformational Leadership; Ethical Dimensions of Leadership Focus on the Followers: Power and Politics in Leadership; Leadership and Influence; Motivation and Mentoring; Leadership for Team Building Focus on Skills: Creativity and Innovation; Communication and Conflict Resolution; Strategic Leadership and Knowledge Management Skills; Leadership for Cross-cultural Management; Leadership Development and Succession Issues  5 Concept of Leadership Unit I Introduction to Leadership 6 Managerial Leadership  7 LESSON Concept of Leadership 1 CONCEPT OF LEADERSHIP CONTENTS 1.0 Aims and Objectives 1.1 Introduction 1.2 Leadership Defined 1.3 Suggested Qualities of Leadership 1.4 How Thinking about Leadership has Developed 1.4.1 Great Man Theories 1.4.2 Trait Theories 1.4.3 Behaviorist Theories 1.4.4 Situational Leadership 1.4.5 Contingency Theory 1.4.6 Transactional Theory 1.4.7 Transformational Theory 1.5 Principles of Leadership 1.6 Factors of Leadership 1.6.1 Follower 1.6.2 Leader 1.6.3 Communication 1.6.4 Situation 1.7 Leadership and Work Environment 1.7.1 Goals, Values and Concepts 1.7.2 Roles ad Relationships 1.7.3 Culture and Climate 1.8 Let us Sum up 1.9 Lesson End Activity 1.10 Keywords 1.11 Questions for Discussion 1.12 Suggested Readings 1.0 AIMS AND OBJECTIVES After studying this lesson, you should be able to understand: z The concepts of leadership and its principles z Factors and development of leadership 8 Managerial Leadership 1.1 INTRODUCTION Leadership can be defined as a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics, character, knowledge, and skills. Good leaders are made not born. Good leaders develop through a never ending process of self-study, education, training, and experience. Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. Good leaders develop through a never ending process of self-study, education, training, and experience. This guide will help you through that process. To inspire your workers into higher levels of teamwork, there are certain things you must be, know, and, do. These do not come naturally, but are acquired through continual work and study. 1.2 LEADERSHIP DEFINED "Leadership is a relationship between those who aspire to lead and those who choose to follow". (Kouzes & Posner, 2002). "Leadership is the behavior of an individual... directing the activities of a group toward a shared goal". (Hemphill & Coons, 1957) "Leadership is the influential increment over and above mechanical compliance with the routine directives of the organization". (D. Katz & Kahn, 1978) "Leadership is the process of influencing the activities of an organized group toward goal achievement". (Rauch & Behling, 1984) "Leadership is about articulating visions, embodying values, and creating the environment within which things can be accomplished". (Richards & Engle, 1986) "Leadership is the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organization..." (House et al., 1999) "Leadership is the ability of developing and communicating a vision to a group of people that will make that vision true". (Valenzuela, 2007) 1.3 SUGGESTED QUALITIES OF LEADERSHIP Studies of leadership have suggested qualities that people often associate with leadership. They include: z Technical/specific skill at some task at hand. z Charismatic inspiration - attractiveness to others and the ability to leverage this esteem to motivate others. z Preoccupation with a role - a dedication that consumes much of leaders' life - 9 Concept of Leadership service to a cause. z A clear sense of purpose (or mission) - clear goals - focus – commitment. z Results-orientation - directing every action towards a mission - prioritizing activities to spend time where results most accrue. z Cooperation - work well with others. z Optimism - very few pessimists become leaders. z Rejection of determinism - belief in one's ability to "make a difference". z Ability to encourage and nurture those that report to them - delegate in such a way as people will grow. z Role models - leaders may adopt a persona that encapsulates their mission and lead by example. z Self-Knowledge (in non-bureaucratic structures). z Self awareness - the ability to "lead" (as it were) one's own self prior to leading other selves similarly. z Awareness of environment - the ability to understand the environment they lead in and how they affect and are affected by it. z Empathy - Understanding what others say, rather than listening to how they say things - this could partly sum this quality up as "walking in someone else's shoes" (to use a common cliché). z Integrity - the integration of outward actions and inner values. z Sense of Humour - people work better when they're happy. In 2008 Burman and Evans published a 'charter' for leaders: 1. Leading by example in accordance with the company’s core values. 2. Building the trust and confidence of the people with which they work. 3. Continually seeking improvement in their methods and effectiveness. 4. Keeping people informed. 5. Being accountable for their actions and holding others accountable for theirs. 6. Involving people, seeking their views, listening actively to what they have to say and representing these views honestly. 7. Being clear on what is expected, and providing feedback on progress. 8. Showing tolerance of people’s differences and dealing with their issues fairly. 9. Acknowledging and recognizing people for their contributions and performance. 10. Weighing alternatives, considering both short and long-term effects and then being resolute in the decisions they make. 1.4 HOW THINKING ABOUT LEADERSHIP HAS DEVELOPED A review of the leadership literature reveals an evolving series of ‘schools of thought’ from “Great Man” and “Trait” theories to “Transformational” leadership. Whilst early theories tend to focus upon the characteristics and behaviors of successful leaders, later theories begin to consider the role of followers and the contextual nature of leadership. 1.4.1 Great Man Theories Based on the belief that leaders are exceptional people, born with innate qualities, destined to lead. The use of the term ‘man’ was intentional since until the latter part of 10 the twentieth century leadership was thought of as a concept which is primarily male, Managerial Leadership military and Western. This led to the next school of Trait Theories. 1.4.2 Trait Theories The lists of traits or qualities associated with leadership exist in abundance and continue to be produced. They draw on virtually all the adjectives in the dictionary which describe some positive or virtuous human attribute, from ambition to zest for life. 1.4.3 Behaviorist Theories These concentrate on what leaders actually do rather than on their qualities. Different patterns of behavior are observed and categorized as ‘styles of leadership’. This area has probably attracted most attention from practicing managers. 1.4.4 Situational Leadership This approach sees leadership as specific to the situation in which it is being exercised. For example, whilst some situations may require an autocratic style, others may need a more participative approach. It also proposes that there may be differences in required leadership styles at different levels in the same organization. 1.4.5 Contingency Theory This is a refinement of the situational viewpoint and focuses on identifying the situational variables which best predict the most appropriate or effective leadership style to fit the particular circumstances. 1.4.6 Transactional Theory This approach emphasizes the importance of the relationship between leader and followers, focusing on the mutual benefits derived from a form of 'contract' through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers. 1.4.7 Transformational Theory The central concept here is change and the role of leadership in envisioning and implementing the transformation of organizational performance from ‘Great Man’ to ‘Transformational’ Leadership. Each of these theories takes a rather individualistic perspective of the leader, although a school of thought gaining increasing recognition is that of “dispersed” leadership. This approach, with its foundations in sociology, psychology and politics rather than management science, views leadership as a process that is diffuse throughout an organisation rather than lying solely with the formally designated ‘leader’. The emphasis thus shifts from developing ‘leaders’ to developing ‘leaderful’ organisations with a collective responsibility for leadership. In the current unit we will focus primarily on the more traditional, individualistic views of the leader as we feel these have greatest relevance to the development of management and leadership standards. We will finish, however, with an introduction to “dispersed leadership” – a concept which will be explored further. 1.5 PRINCIPLES OF LEADERSHIP The eleven principles of leadership are as follows: 1. Know yourself and seek self-improvement: In order to know yourself, you have to understand your be, know, and do, attributes. Seeking self-improvement means  continually strengthening your attributes. This can be accomplished through self- 11 Concept of Leadership study, formal classes, reflection, and interacting with others. 2. Be technically proficient: As a leader, you must know your job and have a solid familiarity with your employees' tasks. 3. Seek responsibility and take responsibility for your actions: Search for ways to guide your organization to new heights. And when things go wrong, they always do sooner or later – do not blame others. Analyze the situation, take corrective action, and move on to the next challenge. 4. Make sound and timely decisions: Use good problem solving, decision making, and planning tools. 5. Set the example: Be a good role model for your employees. They must not only hear what they are expected to do, but also see. We must become the change we want to see - Mahatma Gandhi. 6. Know your people and look out for their well-being: Know human nature and the importance of sincerely caring for your workers. 7. Keep your workers informed: Know how to communicate with not only them, but also seniors and other key people. 8. Develop a sense of responsibility in your workers: Help to develop good character traits that will help them carry out their professional responsibilities. 9. Ensure that tasks are understood, supervised, and accomplished: Communication is the key to this responsibility. 10. Train as a team: Although many so called leaders call their organization, department, section, etc. a team; they are not really teams...they are just a group of people doing their jobs. 11. Use the full capabilities of your organization: By developing a team spirit, you will be able to employ your organization, department, section, etc. to its fullest capabilities. 1.6 FACTORS OF LEADERSHIP There are four major factors in leadership: Figure 1.1: Factors in Leadership 1.6.1 Follower Different people require different styles of leadership. For example, a new hire requires more supervision than an experienced employee. A person who lacks 12 motivation requires a different approach than one with a high degree of motivation. Managerial Leadership The fundamental starting point is having a good understanding of human nature, such as needs, emotions, and motivation. 1.6.2 Leader One must have an honest understanding of who one’s own competencies. It should be understood that it is the followers, not the leader who determines if a leader is successful. If followers do not trust or lack confidence in their leader, then they will be uninspired. To be successful the followers need to be convinced that leader is worthy of being followed. 1.6.3 Communication Leader lead through two-way communication. Much of it is nonverbal. For instance, when they "set the example," that communicates to the followers. What and how it is communicated either builds or harms the relationship between leader and his followers. 1.6.4 Situation All are different. What is done in one situation will not always work in another. Leader must use his judgment to decide the best course of action and the leadership style needed for each situation. For example, leader may need to confront an employee for inappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak, then the results may prove ineffective. Various forces will affect these factors. Examples of forces are the relationship with seniors, the skills of the people, the informal leaders within your organization, and how the company is organized. 1.7 LEADERSHIP AND WORK ENVIRONMENT Every organization has a particular work environment, which dictates to a considerable degree how its leaders respond to problems and opportunities. This is brought about by its heritage of past leaders and its present leaders. 1.7.1 Goals, Values and Concepts Leaders exert influence on the environment via three types of actions: 1. The goals and performance standards they establish. 2. The values they establish for the organization. 3. The business and people concepts they establish. Successful organizations have leaders who set high standards and goals across the entire spectrum, such as strategies, market leadership, plans, meetings and presentations, productivity, quality, and reliability. Values reflect the concern the organization has for its employees, customers, investors, vendors, and surrounding community. These values define the manner in how business will be conducted. Concepts define what products or services the organization will offer and the methods and processes for conducting business. These goals, values, and concepts make up the organization’s “personality” or how the organization is observed by both outsiders and insiders. This personality defines the roles, relationships, rewards, and rites that take place.  13 1.7.2 Roles ad Relationships Concept of Leadership Roles are the positions that are defined by a set of expectations about behavior of any job incumbent. Each role has a set of tasks and responsibilities that may or may not be spelled out. Roles have a powerful effect on behavior for several reasons, to include money being paid for the performance of the role, there is prestige attached to a role, and a sense of accomplishment or challenge. Relationships are determined by a role’s tasks. While some tasks are performed alone, most are carried out in relationship with others. The tasks will determine who the role- holder is required to interact with, how often, and towards what end. Also, normally the greater the interaction, the greater the liking. This in turn leads to more frequent interaction. In human behavior, it’s hard to like someone whom we have no contact with, and we tend to seek out those we like. People tend to do what they are rewarded for, and friendship is a powerful reward. Many tasks and behaviors that are associated with a role are brought about by these relationships. That is, new task and behaviors are expected of the present role-holder because a strong relationship was developed in the past, either by that role-holder or a prior role-holder. 1.7.3 Culture and Climate There are two distinct forces that dictate how to act within an organization: culture and climate. Each organization has its own distinctive culture. It is a combination of the founders, past leadership, current leadership, crises, events, history, and size. These results in rites: the routines, rituals, and the "way we do things." These rites impact individual behavior on what it takes to be in good standing (the norm) and direct the appropriate behavior for each circumstance. The climate is the feel of the organization, the individual and shared perceptions and attitudes of the organization's members. While the culture is the deeply rooted nature of the organization that is a result of long-held formal and informal systems, rules, traditions, and customs; climate is a short-term phenomenon created by the current leadership. Climate represents the beliefs about the "feel of the organization" by its members. This individual perception of the "feel of the organization" comes from what the people believe about the activities that occur in the organization. These activities influence both individual and team motivation and satisfaction, such as: z How well does the leader clarify the priorities and goals of the organization? What is expected of us? z What is the system of recognition, rewards, and punishments in the organization? z How competent are the leaders? z Are leaders free to make decisions? z What will happen if I make a mistake? Organizational climate is directly related to the leadership and management style of the leader, based on the values, attributes, skills, and actions, as well as the priorities of the leader. Compare this to “ethical climate” – the “feel of the organization” about the activities that have ethical content or those aspects of the work environment that constitute ethical behavior. The ethical climate is the feel about whether we do things right; or the feel of whether we behave the way we ought to behave. The behavior (character) of the leader is the most important factor that impacts the climate. On the other hand, culture is a long-term, complex phenomenon. Culture represents the shared expectations and self-image of the organization. The mature values that create “tradition” or the “way we do things here.” Things are done differently in every 14 organization. The collective vision and common folklore that define the institution are Managerial Leadership a reflection of culture. Individual leaders cannot easily create or change culture because culture is a part of the organization. Culture influences the characteristics of the climate by its effect on the actions and thought processes of the leader. But, everything you do as a leader will affect the climate of the organization. Check Your Progress State whether the following statements are true or false: 1. Organizational climate is directly related to the leadership and management style of the leader, based on the values, attributes, skills, and actions, as well as the priorities of the leader. 2. This Transformational theory emphasizes the importance of the relationship between leader and followers, focusing on the mutual benefits derived from a form of 'contract' through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers. 1.8 LET US SUM UP This lesson has covered the various aspects related to the understanding of the concept of leadership. Great leadership encompasses confidence, assertiveness and mutual respect. Great leaders take calculated risks and are innovative and confident in their decisions to do so. They realize that being timid will not get them where they want to go. This confidence and assertiveness will usually trickle down to the team members. Great leaders come in many forms. In one sense solid leadership is a subjective thing, in another there are certain characteristics that are, by consensus, typical of quality leadership. 1.9 LESSON END ACTIVITY Explain the relationship between the work environment and effective leadership. 1.10 KEYWORDS Attributes: Characteristics or qualities or properties. Attributes of the leader fall into three categories: mental, physical, and emotional. Communicating: Comprises the ability to express oneself effectively in individual and group situations, either orally or in writing. It involves a sender transmitting an idea to a receiver. Developing: The art of developing the competence and confidence of subordinate leaders through role modeling and training and development activities related to their current or future duties. 1.11 QUESTIONS FOR DISCUSSION 1. “Leadership is the driving force which gets things done.” Explain. 2. Discuss how the concept of leadership has developed? 3. Explain briefly the basic principles of leadership. Check Your Progress: Model Answer 1. True 2. False  15 1.12 SUGGESTED READINGS Concept of Leadership Bass, Bernard (1989), Stogdill’s Handbook of Leadership, New York: Free Press. Bass, Bernard (1990), From Transactional to Transformational Leadership. Organizational Dynamics, Vol. 18, Issue 3, Winter, 1990, 19-31. Blake, Robert R. and Mouton, Janse S. (1985), The Managerial Grid III: The Key to Leadership Excellence, Houston: Gulf Publishing Co. Bolman, L. and Deal, T. (1991), Reframing Organizations, San Francisco: Jossey-Bass. Kouzes, James M. & Posner, Barry Z., (1987), The Leadership Challenge, San Francisco: Jossey-Bass. 16 Managerial Leadership Case Study Case: Global Leadership through Quality Excellence: A Success Story of DML U niChem, one of the UK's leading distributors and wholesalers of pharmaceutical, medical and healthcare products. The company was keen to discover and nurture future leaders within UniChem, rather than relying entirely on external recruitment to fulfil key leadership roles. Although UniChem is a very people-centred organisation, there was limited formal succession planning or leadership development in place. UniChem's aim was to identify high potential managers within the organisation, and then provide challenging learning opportunities for them. This learning needed to equip these individuals with the capability to deliver the core requirements of the organisation and, in the words of UniChem, ‘bridge strategies to outcomes’. Question “Leaders need to develop talent by supporting individuals to meet their true potential. It is also essential to implement effective succession planning and to develop a pipeline of leadership talent to meet the future needs of the organisation”. Discuss in the light of the information given in the case.  17 LESSON Nature of Leadership 2 NATURE OF LEADERSHIP CONTENTS 2.0 Aims and Objectives 2.1 Introduction 2.2 Leadership Skills 2.2.1 Networking 2.2.2 Teamwork 2.2.3 Mentoring 2.2.4 Group Work 2.2.5 Decision-making 2.2.6 Delegation 2.2.7 Collaboration 2.2.8 Network Building 2.2.9 Motivating Others 2.3 Leadership by a Group 2.4 Leadership's Relation with Management 2.5 Leadership in Organizations 2.6 Categories and Types of Leadership Style 2.7 Let us Sum up 2.8 Lesson End Activity 2.9 Keywords 2.10 Questions for Discussion 2.11 Suggested Readings 2.0 AIMS AND OBJECTIVES After studying this lesson, you should be able to understand: z The nature of leadership in various situations z Skills of the leaders z The differences between leadership and the management z The various forms and styles of leadership in organization 2.1 INTRODUCTION For years, when people talked about leadership style, they talked in terms of two extremes – an autocratic (directive) and a democratic (supportive) style. Autocratic 18 leaders used position power and their authority to get results while democratic leaders Managerial Leadership used personal resources (power) and involved others in participative problem-solving and decision-making. But then onwards the mode of business, culture exchange, communication, and development changed the corporate world. The modern business is delivering time and mission critical solution in faster pace. People from different background, culture & nature are engaged together in a single platform of solution. The rate of risks, criticalities is higher, which require a change in the style of handling the situation and satisfy the need from parent organization to client organization. Also, experience and further research, however, showed that leadership style tend to vary considerably from situation to situation. Questions about leadership have long been a subject of speculation as to why some people emerge as a leader and the determinants of the way a leader acts ,the skills he possess and his style of leadership etc. This lesson help to understand the basic components of the leadership order to understand its importance and nature. 2.2 LEADERSHIP SKILLS The process of successfully influencing the activities of a group towards the achievement of a common goal. A leader has the ability to influence others through qualities such as personal charisma, expertise, command of language, and the creation of mutual respect. As well as requiring strong Communication Skills and Personal Skills, leadership uses the Background skills of mentoring, decision-making, delegation and motivating others. 2.2.1 Networking The ability to actively seek, identify and create effective contacts with others, and to maintain those contacts for mutual benefit. In addition to strong Communication Skills and Personal Skills, Networking uses the Background skills of network building and motivating others. 2.2.2 Teamwork It involves working with others in a group towards a common goal. This requires cooperating with others, being responsive to others' ideas, taking a collaborative approach to learning, and taking a responsibility for developing and achieving group goals. Teamwork uses the Background skills of collaboration, mentoring, decision- making and delegation. 2.2.3 Mentoring It is: z Being a trusted advisor and helper with experience in a particular field. Actively supporting and guiding someone to develop knowledge and experience, or to achieve career or personal goals (for example, a third-year student mentoring a first year student, helping to adjust to the university experience). z A mentoring relationship may be formal or informal, but must involve trust, mutual respect, and commitment as both parties work together to achieve a goal (for example, mentoring a younger member of a team to achieve better performance in the lead-up to a sporting event). 2.2.4 Group Work It is: z any activity in which students work together; z any activity which has been specifically designed so that students work in pairs or 19 Nature of Leadership groups, and may be assessed as a group (referred to as formal group work); or z when students come together naturally to help each other with their work (referred to as informal group work); z peer group activity in lab classes, tutorials etc. 2.2.5 Decision-making It is: z Identifying appropriate evidence and weighing up that evidence to make a choice (for example, gathering and assessing information to find the best way to perform an experiment). z Taking responsibility for a decision and its outcomes (for example, choosing a topic for a group presentation from a number of suggestions). 2.2.6 Delegation It is: z Taking responsibility for determining when to ask someone else to make a decision or carry out a task (for example, figuring out what is a fair distribution of the workload in a group project, and sharing responsibility with others). z Distributing responsibility and authority in a group by giving someone else the discretion to make decisions that you have the authority to make (for example, as the chosen leader of a lab experiment team, you could assign tasks and decisions to different group members). 2.2.7 Collaboration It is: Working cooperatively and productively with other team members to contribute to the outcomes of the team's work (for example, dividing the workload and sharing the results of your own work with others in the group, or assisting members of the group who are having difficulty completing their tasks). 2.2.8 Network Building It is: z Creating contacts with other people and maintaining those contacts (for example, meeting someone at a seminar with similar interests, and swapping email addresses with them). z Acquiring and maintaining information about people who might be useful contacts for specific purposes (for example, seeking out people established in an industry you hope to work with one day). z Using a contact in an ethical manner to help each of you meet specific goals, (for example, collaborating on projects of importance to both of you). 2.2.9 Motivating Others It is: z Generating enthusiasm and energy by being positive, focussing on finding solutions and maintaining a positive attitude even when things are not going well (for example, when something goes wrong, asking "What can we try now?" instead of saying, "That should have worked better."). 20 z Encouraging others to come up with solutions, listening carefully to their ideas Managerial Leadership and offering constructive feedback (for example, gathering suggestions for a group project, and giving each person's ideas fair discussion). 2.3 LEADERSHIP BY A GROUP In contrast to individual leadership, some organizations have adopted group leadership. In this situation, more than one person provides direction to the group as a whole. Some organizations have taken this approach in hopes of increasing creativity, reducing costs, or downsizing. Others may see the traditional leadership of a boss as costing too much in team performance. In some situations, the maintenance of the boss becomes too expensive - either by draining the resources of the group as a whole, or by impeding the creativity within the team, even unintentionally. A common example of group leadership involves cross-functional teams. A team of people with diverse skills and from all parts of an organization assembles to lead a project. A team structure can involve sharing power equally on all issues, but more commonly uses rotating leadership. The team member(s) best able to handle any given phase of the project become(s) the temporary leader(s). According to Ogbonnia (2007), "effective leadership is the ability to successfully integrate and maximize available resources within the internal and external environment for the attainment of organizational or societal goals". Ogbonnia defines an effective leader "as an individual with the capacity to consistently succeed in a given condition and be recognized as meeting the expectations of an organization or society." 2.4 LEADERSHIP’S RELATION WITH MANAGEMENT Some commentators link leadership closely with the idea of management. Some regard the two as synonymous, and others consider management a subset of leadership. If one accepts this premise, one can view leadership as: z centralized or decentralized z broad or focused z decision-oriented or morale-centred z intrinsic or derived from some authority Any of the bipolar labels traditionally ascribed to management style could also apply to leadership style. Hersey and Blanchard use this approach: they claim that management merely consists of leadership applied to business situations; or in other words: management forms a sub-set of the broader process of leadership. They put it this way: "Leadership occurs any time one attempts to influence the behavior of an individual or group, regardless of the reason. Management is a kind of leadership in which the achievement of organizational goals is paramount." However, a clear distinction between management and leadership may nevertheless prove useful. This would allow for a reciprocal relationship between leadership and management, implying that an effective manager should possess leadership skills, and an effective leader should demonstrate management skills. One clear distinction could provide the following definition: z Management involves power by position. z Leadership involves power by influence. Abraham Zaleznik (1977), for example, delineated differences between leadership and management. He saw leaders as inspiring visionaries, concerned about substance; while managers he views as planners who have concerns with process. Warren Bennis (1989) further explicated a dichotomy between managers and leaders. He drew twelve 21 Nature of Leadership distinctions between the two groups: z Managers administer, leaders innovate z Managers ask how and when, leaders ask what and why z Managers focus on systems, leaders focus on people z Managers do things right, leaders do the right things z Managers maintain, leaders develop z Managers rely on control, leaders inspire trust z Managers have a short-term perspective, leaders have a long-term perspective z Managers accept the status-quo, leaders challenge the status-quo z Managers have an eye on the bottom line, leaders have an eye on the horizon z Managers imitate, leaders originate z Managers emulate the classic good soldier, leaders are their own person z Managers copy, leaders show originality. Paul Birch (1999) also sees a distinction between leadership and management. He observed that, as a broad generalization, managers concerned themselves with tasks while leaders concerned themselves with people. Birch does not suggest that leaders do not focus on "the task." Indeed, the things that characterise a great leader include the fact that they achieve. Effective leaders create and sustain competitive advantage through the attainment of cost leadership, revenue leadership, time leadership, and market value leadership. Managers typically follow and realize a leader's vision. The difference lies in the leader realising that the achievement of the task comes about through the goodwill and support of others (influence), while the manager may not. This goodwill and support originates in the leader seeing people as people, not as another resource for deployment in support of "the task". The manager often has the role of organizing resources to get something done. People form one of these resources, and many of the worst managers treat people as just another interchangeable item. A leader has the role of causing others to follow a path he/she has laid out or a vision he/she has articulated in order to achieve a task. Often, people see the task as subordinate to the vision. For instance, an organization might have the overall task of generating profit, but a good leader may see profit as a by-product that flows from whatever aspect of their vision differentiates their company from the competition. Leadership does not only manifest itself as purely a business phenomenon. Many people can think of an inspiring leader they have encountered who has nothing whatever to do with business: a politician, an officer in the armed forces, a Scout or Guide leader, a teacher, etc. Similarly, management does not occur only as a purely business phenomenon. Again, we can think of examples of people that we have met who fill the management niche in non-business organisations. Non-business organizations should find it easier to articulate a non-money-driven inspiring vision that will support true leadership. However, often this does not occur. Differences in the mix of leadership and management can define various management styles. Some management styles tend to de-emphasize leadership. Included in this group one could include participatory management, democratic management, and collaborative management styles. Other management styles, such as authoritarian management, micro-management, and top-down management, depend more on a leader to provide direction. Note, however, that just because an organisation has no single leader giving it direction, does not mean it necessarily has weak leadership. In 22 many cases group leadership (multiple leaders) can prove effective. Having a single Managerial Leadership leader (as in dictatorship) allows for quick and decisive decision-making when needed as well as when not needed. Group decision-making sometimes earns the derisive label "committee-itis" because of the longer times required to make decisions, but group leadership can bring more expertise, experience, and perspectives through a democratic process. Patricia Pitcher (1994) has challenged the bifurcation into leaders and managers. She used a factor analysis (in marketing)factor analysis technique on data collected over 8 years, and concluded that three types of leaders exist, each with very different psychological profiles: ‘Artists' imaginative, inspiring, visionary, entrepreneurial, intuitive, daring, and emotional Craftsmen: well-balanced, steady, reasonable, sensible, predictable, and trustworthy Technocrats: cerebral, detail-oriented, fastidious, uncompromising, and hard-headed She speculates that no one profile offers a preferred leadership style. She claims that if we want to build, we should find an "artist leader" if we want to solidify our position, we should find a "craftsman leader" and if we have an ugly job that needs to get done like downsizing, we should find a "technocratic leader”. Pitcher also observed that a balanced leader exhibiting all three sets of traits occurs extremely rarely: she found none in her study. Bruce Lynn postulates a differentiation between 'Leadership' and ‘Management’ based on perspectives to risk. Specifically, "A Leader optimises upside opportunity; a Manager minimises downside risk." He argues that successful executives need to apply both disciplines in a balance appropriate to the enterprise and its context. Leadership without Management yields steps forward, but as many if not more steps backwards. Management without Leadership avoids any step backwards, but doesn’t move forward. 2.5 LEADERSHIP IN ORGANIZATIONS a) Leadership in formal organizations: An organization that is established as an instrument or means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position. b) Leadership in informal organizations: In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the informal organization that underlies the formal structure. The informal organization expresses the personal objectives and goals of the individual membership. Their objectives and goals may or may not coincide with those of the formal organization. The informal organization represents an extension of the social structures that generally characterize human life — the spontaneous emergence of groups and organizations as ends in themselves. In prehistoric times, man was preoccupied with his personal security, maintenance, protection, and survival. Now man spends a major portion of his waking hours working for organizations. His need to identify with a community that provides security, protection, maintenance, and a feeling of belonging continues unchanged from prehistoric times. This need is met by the informal organization and its 23 Nature of Leadership emergent, or unofficial, leaders. Leaders emerge from within the structure of the informal organization. Their personal qualities, the demands of the situation, or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. Instead of the authority of position held by an appointed head or chief, the emergent leader wields influence or power. Influence is the ability of a person to gain co-operation from others by means of persuasion or control over rewards. Power is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment. 2.6 CATEGORIES AND TYPES OF LEADERSHIP STYLE Leadership has a formal aspect (as in most political or business leadership) or an informal one (as in most friendships). Speaking of "leadership" (the abstract term) rather than of "leading" (the action) usually it implies that the entities doing the leading have some "leadership skills" or competencies. z The bureaucratic leader (Weber, 1905) is very structured and follows the procedures as they have been established. This type of leadership has no space to explore new ways to solve problems and is usually slow paced to ensure adherence to the ladders stated by the company. Leaders ensure that all the steps have been followed prior to sending it to the next level of authority. Universities, hospitals, banks and government usually require this type of leader in their organizations to ensure quality, increase security and decrease corruption. Leaders that try to speed up the process will experience frustration and anxiety. z The charismatic leader (Weber, 1905) leads by infusing energy and eagerness into their team members. This type of leader has to be committed to the organization for the long run. If the success of the division or project is attributed to the leader and not the team, charismatic leaders may become a risk for the company by deciding to resign for advanced opportunities. It takes the company time and hard work to gain the employees' confidence back with other type of leadership after they have committed themselves to the magnetism of a charismatic leader. z The autocratic leader (Lewin, Lippit, & White, 1939) is given the power to make decisions alone, having total authority. This leadership style is good for employees that need close supervision to perform certain tasks. Creative employees and team players resent this type of leadership, since they are unable to enhance processes or decision making, resulting in job dissatisfaction. z The democratic leader (Lewin, Lippitt, & White, 1939) listens to the team's ideas and studies them, but will make the final decision. Team players contribute to the final decision thus increasing employee satisfaction and ownership, feeling their input was considered when the final decision was taken. When changes arises, this type of leadership helps the team assimilate the changes better and more rapidly than other styles, knowing they were consulted and contributed to the decision making process, minimizing resistance and intolerance. A shortcoming of this leadership style is that it has difficulty when decisions are needed in a short period of time or at the moment. z The laissez-faire ("let do") leader (Lewin, Lippitt, & White, 1939) gives no continuous feedback or supervision because the employees are highly experienced and need little supervision to obtain the expected outcome. On the other hand, this type of style is also associated with leaders that don’t lead at all, failing in supervising team members, resulting in lack of control and higher costs, bad service or failure to meet deadlines. 24 z The people-oriented leader (Fiedler, 1967) is the one that, in order to comply with Managerial Leadership effectiveness and efficiency, supports, trains and develops his personnel, increasing job satisfaction and genuine interest to do a good job. z The task-oriented leader (Fiedler, 1967) focuses on the job, and concentrates on the specific tasks assigned to each employee to reach goal accomplishment. This leadership style suffers the same motivation issues as autocratic leadership, showing no involvement in the teams needs. It requires close supervision and control to achieve expected results. Another name for this is deal maker (Rowley & Roevens, 1999) and is linked to a first phase in managing Change, enhance, according to the Organize with Chaos approach. z The servant leader facilitates goal accomplishment by giving its team members what they need in order to be productive. This leader is an instrument employees use to reach the goal rather than an commanding voice that moves to change. This leadership style, in a manner similar to democratic leadership, tends to achieve the results in a slower time frame than other styles, although employee engagement is higher. z The transaction leader (Burns, 1978) is given power to perform certain tasks and reward or punish for the team’s performance. It gives the opportunity to the manager to lead the group and the group agrees to follow his lead to accomplish a predetermined goal in exchange for something else. Power is given to the leader to evaluate, correct and train subordinates when productivity is not up to the desired level and reward effectiveness when expected outcome is reached. z The transformation leader (Burns, 1978) motivates its team to be effective and efficient. Communication is the base for goal achievement focusing the group in the final desired outcome or goal attainment. This leader is highly visible and uses chain of command to get the job done. Transformational leaders focus on the big picture, needing to be surrounded by people who take care of the details. The leader is always looking for ideas that move the organization to reach the company’s vision. z The environment leader is the one who nurtures group or organisational environment to affect the emotional and psychological perception of an individual’s place in that group or organisation. An understanding and application of group psychology and dynamics is essential for this style to be effective. The leader uses organisational culture to inspire individuals and develop leaders at all levels. This leadership style relies on creating an education matrix where groups interactively learn the fundamental psychology of group dynamics and culture from each other. The leader uses this psychology, and complementary language, to influence direction through the members of the inspired group to do what is required for the benefit of all. Check Your Progress Fill in the blanks: 1. The __________ is the one who nurtures group or organisational environment to affect the emotional and psychological perception of an individual’s place in that group or organisation. 2. The ___________ organization represents an extension of the social structures that generally characterize human life. 2.7 LET US SUM UP The lesson provides an overview of the leadership. It explains that leadership has been studied in different ways, depending on the researcher’s methodological preferences. However the leaders possess certain skills for being effective. The nature of leadership 25 Nature of Leadership varies on the basis of the organization and there could be various types of leadership styles to understand the nature of the leadership. 2.8 LESSON END ACTIVITY Discuss the leadership styles with examples, which Indian managers follow. Can you suggest a best style for them? How? 2.9 KEYWORDS Team building: The term 'team building' can refer generally to the selection and motivation of result oriented teams, or more specifically to group self-assessment in the theory and practice of organizational development. Mentor: One who advises another, especially officially or professionally. 2.10 QUESTIONS FOR DISCUSSION 1. Bring out the differences between leadership and management. 2. Discuss the various skills possessed by the leaders. Check Your Progress: Model Answer 1. Environment leader 2. Informal 2.11 SUGGESTED READINGS Warneka, T. (2008), Black Belt Leader, Peaceful Leader: An Introduction to Catholic Servant Leadership. Zaccaro, S. J. (2007), Trait-based perspective, American Psychology, 62 (1), 7-16. Zaleznik, A. (1977), Managers and Leaders: Is there a difference? Harvard Business Review, May-June, 1977. Leaders of Corporate Change, (1992, December 14). Fortune Magazine. Bennis, W. & Nanus, B. (1985), Leaders: The Strategies for Taking Charge. New York: Harper and Row. Child, J. & Smith, C. (1987), The Context and Process of Organizational Transformation— Cadbury Limited in its Sector. Journal of Management Studies, 24 (6) 565-593. Cyert, R. M. & March, J. G. (1963), A Behavioral Theory of the Firm, Englewood Cliffs, N.J.: Prentice-Hall. 26 Managerial Leadership LESSON 3 LEADERSHIP TRAITS CONTENTS 3.0 Aims and Objectives 3.1 Introduction 3.2 Nature of Traits 3.3 Research on Leader’s Traits and Skills 3.3.1 Stogdill Reviews of the Early Research 3.3.2 Mc Clelland’s Research on Managerial Motivation 3.3.3 Longitudinal Research with Assessment Centers 3.3.4 CCL Research on Managers Who Derail 3.4 Managerial Traits and Effectiveness 3.5 The Trait Approach to Leadership 3.6 Let us Sum up 3.7 Lesson End Activity 3.8 Keywords 3.9 Questions for Discussion 3.10 Suggested Readings 3.0 AIMS AND OBJECTIVES After studying this lesson, you should be able to understand: z How conceptions about the importance of traits have changed over the past 70 years z Types of research methods that have been used to study leadership traits z What traits are most relevant for effective leadership z How traits are related to leadership behavior z Limitations of the trait approach 3.1 INTRODUCTION One of the earliest approaches to studying leadership was the trait approach, which assumed that some traits and skills can predict whether a person will attain positions of leadership and be effective in these positions. This lesson reviews research on the personal attributes of successful leaders. The emphasis is on traits and skills that contribute to managerial effectiveness and advancement rather than on traits that predict who will emerge as a leader in an information group.  27 Leadership Traits 3.2 NATURE OF TRAITS The term trait refers to a variety of individual attributes, including aspects of personality, temperament, needs, motives, and values. Personality traits are relatively stale dispositions to behave in a particular way. Examples include self-confidence, extroversion, emotional maturity, and energy level. A need or motive is a desire for particular types of stimuli or experiences. Psychologists usually differentiate between physiological needs (e.g., hunger, thirst) and social motives such as achievement, esteem, affiliation, power, and independence. Needs and motives are important because they influence attention to information and events and they guide, energize, and sustain behavior. Values are internalized attitudes about what is right and wrong, ethical and unethical, moral and immoral. Examples include fairness, justice, honesty, freedom equality humanitarianism, loyalty, patriotism, progress, self-fulfillment, excellence, pragmatism courtesy, politeness, and cooperation. Values are important because they influence a person's preferences, perception of problems, and choice of behavior. Considerable evidence shows that traits are jointly determined by learning and by an inherited capacity to gain satisfaction from particular types of stimuli or experiences (Bouchard et.al.,1990).Some traits (e.g., values, social needs) are probably more influenced by learning than others (temperament, physiological need. 3.3 RESEARCH ON LEADER’S TRAITS AND SKILLS The relationship of traits to managerial success has been investigated in many ways. Some studies look for traits that predict emergence as an informal leader in groups, some studies look for traits that predict advancement to higher levels of management, and other studies look for traits related to effective performance by a manager in the current job. It is import to remember that some traits may be relevant for one criterion but not the other. 3.3.1 Stogdill Reviews of the Early Research The early leadership researchers were confident that the traits essential for leadership effectiveness could be identified by empirical research comparing 'leaders with non leaders, or comparing effective leader, to in effective leaders. The kinds of traits studied most often in the early research included physical characteristics (e.g., height, appearance), aspects of personality (e.g., self-esteem, dominance, emotional stability)", and aptitudes (e.g., general intelligence, verbal fluency, creativity). Many of the studies compared leaders to non leaders or examined the attributes of emergent leaders in newly formed groups. 3.3.2 Mc Clelland’s Research on Managerial Motivation An extensive program of research on managerial motivation was conducted by McClelland and his associates (McClelland, 1965, 1985). In most of the research need strengths measured with a projective technique called the Thematic Apperception Test (TAT). McClelland and his colleagues found that people with a high need for power can be grouped into two subtypes depending on their score on another trait called activity inhibition, which is also obtained from coding TAT responses. Some one with a socialized power orientation" has strong self-control and is motivated to satisfy the need for power in socially acceptable ways, such as influencing others to accomplish a worthy cause, or helping others to develop their skills and confidence. In contrast, someone' with a "personalized power orientation" is motivated to' satisfy the need for 28 power in selfish ways by dominating others and using power to fulfill hedonistic Managerial Leadership desires. 3.3.3 Longitudinal Research with Assessment Centers Research on managerial assessment centers has yielded useful insights about traits related to managerial advancement in an organization. The term assessment center refers to a standardized set of procedures used to identify managerial potential. Although no two programs are exactly alike, they all utilize multiple methods of assessing traits and skills. Typical methods include interviews, projective tests,- situational tests (e.g., in-basket, leaderless group.discussion), written tests of personality and aptitude, a writing exercise (e.g., a short autobiographical essay) to evaluate oral communication skills, and a speaking exercise to evaluate oral communication skills. 3.3.4 CCL Research on Managers Who Derail Researchers at the Center for Creative Leadership (CCL) have attempted to identify traits and behaviors associated with eventual success or failure of top executive. The research results are summarized here by describing the specific traits and skills- that seem to be especially relevant for predicting whether a manager advanced or derailed. 1. Emotional Stability: Managers who derailed were less able to handle pressure. They were more prone to moodiness, angry outbursts, and inconsistent behavior, which undermined their interpersonal relationships with subordinates, peers, and superiors. In contrast the successful managers were calm, confident, and predictable during crises. 2. Defensiveness. 3. Integrity. 4. Interpersonal skills. 5. Technical and cognitive skills. 3.4 MANAGERIAL TRAITS AND EFFECTIVENESS Over a period of several decades researchers examined a variety of different personality traits relate to managerial effectiveness and advancement. The choice of traits and the labels tied for them have varied from study to study, but the results have been fairly, consistent across different research methods. This section summarizes and integrates the findings regarding the most relevant aspects of personality for effective leadership by managers and administrators in large organizations. z Energy Level and Stress Tolerance: The trait research finds that energy level, physical stamina, and stress tolerance are associated with managerial effectiveness (Bass, 1990; Howard & Bray, 1988). High energy and stress tolerance help managers cope with the hectic pace, long hours, and of most managerial jobs. Physical vitality and emotional resilience make it easier to cope with stressful interpersonal situations, such as a punitive boss, a troubled subordinate, an uncooperative peer, or a hostile client. z Self Confidence: The Term self confidence is defined in a general way to include several related concepts such as self-esteem and self-efficacy. Most studies on leader self-confidence or self-efficacy found that it is related positively to effectiveness and advancement. z Internal Locus of Control: Another trait that appears to be relevant to managerial effectiveness is called the locus of control orientation, which is measured with a  personality scale developed by Rotter (1966). People with a strong internal locus 29 Leadership Traits of control orientation (called internals) believe that events in their lives are determined more by their own actions, than by chance or uncontrollable forces. z Emotional Stability and Maturity: The term emotional maturity may be defined broadly to encompass several interrelated motives, traits, and value. Emotionally mature people have a more accurate awareness of their strengths and weaknesses, and they are oriented toward self-improvement instead of denying weaknesses and fantasizing success. Most of the empirical research on traits shows that key components of emotional maturity are associated with managerial effectiveness and advancement. z Personal Integrity: Integrity means that a person's behavior is consistent with espoused values, and the person is honest, ethical, and trustworthy. Integrity is a primary determinant of interpersonal trust. Several types of behaviors are related to integrity. One important indicator of integrity is the extent to which one is honest and truthful rather than deceptive. Another indicator of integrity is keeping promises. People are reluctant to negotiate agreements with a leader who cannot be trusted to keep promises. A third indicator of integrity is the extent to which a leader fulfills the responsibility of service and loyalty to followers. z Power Motivation: Someone with a high need for power-enjoys influencing people and events and is more likely to seek positions of authority. A strong need for power is relevant to managerial role requirements involving the use of power and influence. Managers in large organizations must exercise power to influence subordinates, peers, and superiors. People who are low in need for power usually lack the desire and assertiveness necessary to organize and direct group activities, to negotiate favorable agreements, to lobby for necessary resources, to advocate and promote desirable changes, and to impose necessary discipline. z Achievement Orientation: Achievement orientation includes a set of related attitudes, values and needs: need for achievement, desire to excel, drive to succeed, willingness to assume responsibility, and concern for task objectives. The relationship of achievement motivation to managerial effectiveness is complex. Some studies find a positive relationship between achievement motivation and effectiveness. In other words, managers with a moderately high amount of achievement motivation are more effective that managers with low achievement motivation, or managers with very high achievement motivation. z Need for Affiliation: As noted earlier in this lesson, people with a strong need for affiliation receive great satisfaction from being liked and accepted by others, and they enjoy working with people who are friendly and cooperative. Most studies find a negative correlation between need for affiliation and managerial effectiveness. The ineffectiveness of managers with a high need for affiliation can be understood by examining the typical pattern of behavior for such managers. It is clearly undesirable for it manager to have a strong need for affiliation, but a very Iow need for affiliation may also have undesirable consequences. Thus it is likely that the optimal level of affiliation motivation is moderately low rather than either high or extremely low. z The Big Five Personality Traits: Describing leaders in terms of their individual profiles would be easier if there was an integrative conceptual framework with a small number of metaconstructs that encompass all of the relevant traits. One such effort that appears promising is referred to as the five factor model of personality or the big five model (e.g., Digman, 1990; Hough, 1992). The five broadly defined personality traits in the taxonomy have somewhat different levels from 30 one version to another. The traits include surgency (or extraversion), Managerial Leadership dependability (or conscientiousness), adjustment (or neuroticism), intellections (or openness to experience), and agreeableness. 3.5 THE TRAIT APPROACH TO LEADERSHIP The Trait Approach arose from the “Great Man” theory as a way of identifying the key characteristics of successful leaders. It was believed that through this approach critical leadership traits could be isolated and that people with such traits could then be recruited, selected, and installed into leadership positions. This approach was common in the military and is still used as a set of criteria to select candidates for commissions. The problem with the trait approach lies in the fact that almost as many traits as studies undertaken were identified. After several years of such research, it became apparent that no consistent traits could be identified. Although some traits were found in a considerable number of studies, the results were generally inconclusive. Some leaders might have possessed certain traits but the absence of them did not necessarily mean that the person was not a leader. Although there was little consistency in the results of the various trait studies, however, some traits did appear more frequently than others, including: technical skill, friendliness, task motivation, application to task, group task supportiveness, social skill, emotional control, administrative skill, general charisma, and intelligence. Of these, the most widely explored has tended to be “charisma”. The table below lists the main leadership traits and skills identified by Stogdill in 1974. Traits Skills Adaptable to situations Clever (Intelligent) Alert to social environment Conceptually skilled Ambitious and achievement-oriented Creative Assertive Diplomatic and tactful Cooperative Fluent in speaking Decisive Knowledgeable about group task Dependable Organised (administrative ability) Dominant (desire to influence others) Persuasive Energetic (high activity level) Socially skilled Persistent Self-confident Tolerant of stress Willing to assume responsibility Leadership Skills and Traits (Stogdill, 1974) The various studies show wide variations in leadership traits. The various traits can be classified into innate and acquirable traits, on the basis of their source. A) Innate traits are those which are possessed by various individuals since birth or God gifted. These qualities cannot be acquired by the individuals. On the basis of such qualities it is said that ‘Leaders are born and not made.’ These traits are: 1. Physical features. 2. Intelligence. B) Acquirable qualities of leadership are those which can be acquired and increased through various processes. Such behavioral patterns are developed among the child as various traits over period of time. Many of these traits can be increased through training programmes. These traits are: 1. Emotional stability.  2. Human relations. 31 Leadership Traits 3. Empathy. 4. Objectivity. 5. Motivating skills. 6. Technical skills. 7. Communication skills. 8. Social skills. Check Your Progress State whether the following statements are true or false: 1. Achievement orientation includes a set of related attitudes, values and needs: need for achievement, desire to excel, drive to succeed, willingness to assume responsibility, and concern for task objectives. 2. An extensive program of research on managerial motivation was conducted by Stogdill. 3.6 LET US SUM UP The early trait studies attempted to identify physical characteristics, personality traits, and the abilities of the people who are believed to be natural leaders. The early researchers did not pay much attention to the questions of how traits interact as an integrator of personality and behaviour, or how the situation determines the relevance of different traits and skills for leadership effectiveness. Some traits found to be especially relevant for effectiveness include energy level and stress tolerance, self confidence, emotional maturity, and integrity. The trait approach has important implications for improving managerial effectiveness. 3.7 LESSON END ACTIVITY A strong achievement orientation may result in behavior that undermines managerial effectiveness. Discuss the statement with the help of suitable examples. 3.8 KEYWORDS Charisma: A personal attractiveness that enables you to influence others. Trait: A distinguishing feature of your personal nature. Persistent: Continually recurring to the mind. Diplomatic: Able to take a broad view of negotiations between states. 3.9 QUESTIONS FOR DISCUSSION 1. Are some traits and values more likely to be associated with unethical leadership behavior? 2. Discuss the various leadership traits and distinguish between the innate and acquired traits. 3. Discuss how managerial assessment centers have yielded useful insights about traits related to managerial advancement in an organization? Check Your Progress: Model Answer 1. True 2. False 32 Managerial Leadership 3.10 SUGGESTED READINGS Heifetz, R. (1994), Leadership without Easy Answers, Cambridge, MA: Harvard University Press. House, R. J. (2004) Culture, Leadership, and Organizations: The GLOBE Study of 62 Societies, SAGE Publications, Thousand Oaks, 2004. Kouzes, J. M. and Posner, B. Z. (2002), The Leadership Challenge. San Francisco: Jossey- Bass. Laubach, R. (2005) Leadership is Influence Machiavelli, Niccolo (1530) The Prince  33 Behavioural Dimension of Leadership Unit II Focus on Leader 34 Managerial Leadership  35 LESSON Behavioural Dimension of Leadership 4 BEHAVIOURAL DIMENSION OF LEADERSHIP CONTENTS 4.0 Aims and Objectives 4.1 Introduction 4.2 Leadership Styles Based on the Behavioural Approach 4.2.1 McGregor’s Theory X and Theory Y Managers 4.2.2 Blake and Mouton’s Managerial Grid 4.2.3 Tannenbaum and Schmidt’s Leadership Continuum 4.2.4 Likert’s Management System of Leadership 4.2.5 Ohio State Leadership Quadrants 4.2.6 Tridimensional Grid 4.3 Limitations of the Behavioral Theories 4.4 Let us Sum up 4.5 Lesson End Activity 4.6 Keywords 4.7 Questions for Discussion 4.8 Suggested Readings 4.0 AIMS AND OBJECTIVES After studying this lesson, you should be able to understand: z Findings of the early research on leadership behavior z Why task, relations, and change oriented behaviors are important for leadership effectiveness z Why it is useful to classify leadership in terms of three dimensional models z Contributions and limitations of the behavior approach 4.1 INTRODUCTION Behavioral theory of leadership has some important implications for managers. They can shape their behavior which appears to be functional and discard the behavior which appears to be dysfunctional. This theory emphasizes that strong leadership is the result of the effective role behaviour. Leadership is shown by the person acts more than his traits. Leadership behavior may be viewed in two different ways: Functional and dysfunctional. Functional behavior influences followers positively and includes such functions as setting clear goals, motivating followers, raising the level of the morale, building team spirit etc. 36 Dysfunctional behavior is unfavorable to the follower and denotes ineffective Managerial Leadership leadership such a behavior may be inability to accept employees ideas, display emotional immaturity, poor human relations etc. 4.2 LEADERSHIP STYLES BASED ON THE BEHAVIOURAL APPROACH Leadership styles are the patterns of behavior which leader adopts in influencing the behavior of his followers. Some important theories and models based on the Behavioral approach are as follows: 1. McGregor’s Theory X and Theory Y Managers 2. Blake and Mouton's Managerial Grid 3. Leadership as a continuum 4. Likert’s mgmt system of leadership 5. Ohio State Leadership quadrants 6. Tri dimensional Grid 4.2.1 McGregor’s Theory X and Theory Y Managers The results of the trait studies were inconclusive. Traits, amongst other things, were hard to measure. How, for example, do we measure traits such as honesty, integrity, loyalty, or diligence? Another approach in the study of leadership had to be found. After the publication of the late Douglas McGregor's classic book The Human Side of Enterprise in 1960, attention shifted to ‘behavioral theories’. McGregor was a teacher, researcher, and consultant whose work was considered to be "on the cutting edge" of managing people. He influenced all the behavioral theories, which emphasize focusing on human relationships, along with output and performance. Although not strictly speaking a theory of leadership, the leadership strategy of effectively-used participative management proposed in Douglas McGregor's book has had a tremendous impact on managers. The most publicized concept is McGregor's thesis that leadership strategies are influenced by a leader's assumptions about human nature. As a result of his experience as a consultant, McGregor summarised two contrasting sets of assumptions made by managers industry. Theory X managers believe that: Theory Y managers believe that: The average human being has an inherent The expenditure of physical and mental dislike of work and will avoid it if possible. effort in work is an natural as play or rest, and the average human being, under proper conditions, learns not only to accept but to seek responsibility. Because of this human characteristics, most People will exercise self-direction and self- people must be coerced, controlled, control to achieve objectives to which they directed, or threatened with punishment to are committed. get them to put forth adequate effort to achieve organizational objectives. The average human being prefers to be The capacity to exercise a relatively high directed, wishes to avoid responsibility, has level of imagination, ingenuity, and relatively little ambition, and wants creativity in the solution of organizational security above all else. problems is widely, not narrowly, distributed in the population, and the intellectual potentialities of the average human being are only partially utilized under the conditions of modern industrial life. Source: Theory X and Y Managers (McGregor, 1960). It can therefore be seen that a leader holding Theory X assumptions would prefer an 37 Behavioural Dimension autocratic style, whereas one holding Theory Y assumptions would prefer a more of Leadership participative style. 4.2.2 Blake and Mouton’s Managerial Grid The Managerial Grid developed by Robert Blake and Jane Mouton focuses on task (production) and employee (people) orientations of managers, as well as combinations of concerns between the two extremes. A grid with concern for production on the horizontal axis and concern for people on the vertical axis and plots five basic leadership styles. The first number refers to a leader's production or task orientation; the second, to people or employee orientation. 1,9 9,9 Country Club Team Management Management 5,5 Organisation Man Management 1,1 9,1 Impoverished Authority Management Obedience Source: The Blake Mouton Managerial Grid (Blake & Mouton, 1964). Blake and Mouton propose that “Team Management” - a high concern for both employees and production - is the most effective type of leadership behavior. 4.2.3 Tannenbaum and Schmidt’s Leadership Continuum One criticism of early work on leadership styles is that they looked at styles too much in black and white terms. The autocratic and democratic styles or task-oriented and relationship-oriented styles which they described are extremes, whereas in practice the behavior of many, perhaps most, leaders in business will be somewhere between the two. Contingency theorists Tannenbaum and Schmidt suggested the idea that leadership behavior varies along a continuum and that as one moves away from the autocratic extreme the amount of subordinate participation and involvement in decision taking increases. They also suggested that the kind of leadership represented by the democratic extreme of the continuum will be rarely encountered in formal organizations. Four main leadership styles can be located at points along such a continuum: z Autocratic: The leader takes the decisions and announces them; expecting subordinates to carry them out without question (the Telling style). z Persuasive: At this point on the scale the leader also takes all the decisions for the group without discussion or consultation but believes that people will be better motivated if they are persuaded that the decisions are good ones. He or she does a lot of explaining and 'selling' in order to overcome any possible resistance to what he or she wants to do. The leader also puts a lot of energy into creating enthusiasm for the goals he or she has set for the group (the Selling style). 38 z Consultative: In this style the leader confers with the group members before Managerial Leadership taking decisions and, in fact, considers their advice and their feelings when framing decisions. He or she may, of course, not always accept the subordinates' advice but they are likely to feel that they can have some influence. Under this leadership style the decision and the full responsibility for it remain with the leader but the degree of involvement by subordinates in decision taking is very much greater than telling or selling styles (the Consulting style). z Democratic: Using this style the leader would characteristically lay the problem before his or her subordinates and invite discussion. The leader's role is that of conference leader, or chair, rather than that of decision taker. He or she will allow the decision to emerge out of the process of group discussion, instead of imposing it on the group as its boss (the Joining style). What distinguishes this approach from previous discussions of leadership style is that there will be some situations in which each of the above styles is likely to be more appropriate than the others. ™ Telling: In an emergency, a telling style may be most appropriate and would normally be considered justified by the group (as long as the general climate of that group is supportive and mature). ™ Selling: The selling style would tend to fit situations in which the group leader, and he or she alone, possesses all the information on which the decision must be based and which at the same ™ Consulting: The consulting style is likely to be most appropriate when there is time in which to reach a considered decision and when the information on which the decision needs to be based lies among the members of the group. ™ Joining: The joining style is appropriate under similar conditions, with the important exception that this is likely to be appropriate only in those instances where the nature of the responsibility associated with the decision is such that group members are willing to share it with their leader, or alternatively the leader is willing to accept responsibility for decisions which he or she has not made personally. Subordinate-Centred Leadership Boss-Centred Leadership Use of Authority by the Manager