Organizational Leadership Theories (ORGL3311) Lecture Notes PDF

Organizational Leadership (ORGL3311) Dr. Ravi Shankar Visiting Prof https://www.linkedin.com/in/ravi-shankar-70584b1/ Second Session Dec 16th , 2023 • Leadership Theories Faculty Profile : Dr. Ravi Shankar INTRODUCTION • Background: PhD - Econometrics, Entrepreneur, Start-up Mentor, Social Im...

Organizational Leadership (ORGL3311) Dr. Ravi Shankar Visiting Prof https://www.linkedin.com/in/ravi-shankar-70584b1/ Second Session Dec 16th , 2023 • Leadership Theories Faculty Profile : Dr. Ravi Shankar INTRODUCTION • Background: PhD - Econometrics, Entrepreneur, Start-up Mentor, Social Impact Investor, Data Science Thought Leader, Senior Venture Partner & Visiting Prof (AI-ML) • Current Focus: AI adoption in Business, Deep Learning, XAI, ML Operations, Design Thinking, OB, Leadership & Strategy • Sectoral Exposure: multiple sectors straddling BFSI / Pharma / Manufacturing / Retail / Tech • Overall Experience : 30 Yrs. • • Visiting Prof in leading universities worldwide Digital Transformation consultant to Fortune 500 firms globally Organizational Leadership: Learning Journey Eight sessions of one hour each Introduction to Organizational Leadership 9th Dec 2023 9:30 pm IST Leadership Theories Leading High Resolving Leadership Performance Leading with Conflict and Effective and Diversity Teams Communicati Negotiation on 23rd Dec, 2023 Dec, 2023 9:30 pm IST 9:30 pm IST 16th 29th Dec, 2023 9:30 pm IST 6th Jan, 2024 9:30 pm IST 13th Jan, 2024 9:30 pm IST Strategic & Operational Leadership Leading a Diverse Workforce 20th Jan, 2024 9:30 pm IST 27th Jan, 2024 9:30 pm IST WHO ARE LEADERS? WHAT IS LEADERSHIP? • Leader is someone who can influence others and who has managerial authority. • Leadership is a process of influencing a group to achieve goals. All managers are leaders? • Yes, because leading is one of the four management functions. Ideally, all managers should be leaders. “Great Man” Theories Trait Theories Contingency Theories Situational Theories Behavioral Theories Participative Theories Management Theories Relationship Theories OVERVIEW OF THEORIES EARLY LEADERSHIP THEORIES TRAIT THEORY BEHAVIOURAL THEORY CONTIGENCY THEORIES FIEDLER MODEL HERSEY AND BLANCHARD'S SITUATIONAL THEORY LEADER PARTICIPATION MODEL CONTEMPORARY VIEWS ON LEADERSHIP PATH GOAL MODEL TRANSFORMA TIONALTRANSACTION AL LEADERSHIP CHARISMATIC –VISIONARY LEADERSHIP TEAM LEADERSHIP MODELS AND THEORIES OF LEADERSHIP Trait Theory (30’s) Behavioural Theory (40’s and 50’s) Contingency Theory (60s and 70s) Transformatio nal Theory (80s up) Others: emergent, distributed, shared, level 5 leadership, etc. EARLY LEADERSHIP THEORIES TRAIT THEORY • “Leaders are born, not made.” • The trait approach to leadership was one of the earliest theories of leadership. • This approach focuses on the personal attributes (or traits) of leaders, such as physical and personality characteristics, competencies, and values. • Leadership traits are considered to be enduring characteristics that people are born with and that remain relatively stable over time. • Trait theory – assumes the leader is different from the average person in terms of personality traits such as intelligence, perseverance, and ambition. ASSUMPTIONS • People are born with inherited traits. • Some traits are particularly suited to leadership. • People who make good leaders have the right (or sufficient) combination of traits. TRAIT THEORY OF LEADERSHIP LIMITATIONS: • No universal traits found leadership in all situations. that predict • Unclear evidence of the cause and effect of relationship of leadership and traits. • Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders. LEADERSHIP TRAITS: • DRIVE • Desire to lead • Honesty and integrity • Self-confidence • Intelligence • Job relevant knowledge • Extraversion BEHAVIOURAL THEORIES • Leaders can be made, rather than are born. • Successful behaviour. leadership is based on definable, learnable Description • Behavioural theories do not seek inborn traits – they look at what leaders actually do. • Success can be defined in terms of describable actions. Implication: • Leadership capability can be learned. BEHAVIOURAL THEORIES According to UNIVERSITY OF LOWA STUDIES • The study was conducted by Kurt Lewin and his associates • The three leadership styles which are:1. AUTOCRATIC 2. DEMOCRATIC 3. LAISSEZ-FAIRE AUTOCRATIC LEADERSHIP STYLE • An autocratic manager dictates orders to their staff and makes decisions without any consultation. • The leader likes to control the situation they are in. • Quick and centralized decision making. • This type of management style can decrease motivation and increase staff turnover. • Structured set of rewards and punishments. AUTOCRATIC LEADER • Rely on threats and punishment to influence staff • Do not trust staff • Do not allow for employee input SHOULD BE USED • New, untrained staff do not know which tasks to perform or which procedures to follow effective supervision provided only through detailed orders and instructions • Staff do not respond to any other leadership style. • Limited time in which to make a decision. • A manager’s power challenged by staff. • Work needs to be coordinated with another department or organization. SHOULD NOT BE USED WHEN: • Staff become tense, fearful, or resentful. • Staff expect their opinions heard. • Staff depend on their manager to make all their decisions. • Low staff morale, high turnover and absenteeism and work stoppage. DEMOCRATIC LEADERSHIP STYLE A COACH WHO HAS THE FINAL SAY, BUT GATHERS INFORMATION FROM STAFF BEFORE MAKING A DECISION. • Also known as participative style. • Encourages staff to be a part of the decision making. • Keeps staff informed about everything that affects their work and shares decision making and problem solving responsibilities. MOST EFFECTIVE When: • Wants to keep staff informed about matters that affect them. • Wants staff to share in decision-making and problem-solving duties. • Wants to provide opportunities for staff to develop a high sense of personal growth and job satisfaction. • A large or complex problem that requires lots of input to solve. • Changes must be made or problems solved that affect staff. • Want to encourage team building and participation. INEFFECTIVE • Not enough time to get everyone’s input • Easier and more cost-effective for the manager to make the decision • Can’t afford mistakes • Manager feels threatened by this type of leadership • Staff safety is a critical concern LAISSEZ-FAIRE LEADERSHIP STYLE • Also known as the “hands-off¨ style. • The manager provides little or no direction and gives staff as much freedom as possible. • All authority or power given to the staff and they determine goals, make decisions, and resolve problems on their own. EFFECTIVE • Staff highly skilled, experienced, and educated. • Staff have pride in their work and the drive to do it successfully on their own. • Outside experts, such as staff specialists or consultants used. • Staff trustworthy and experienced. INEFFECTIVE • Staff feel insecure at the unavailability of a manager. • The manager cannot provide regular feedback to staff on how well they are doing. • Managers unable to thank staff for their good work. • The manager doesn’t understand his or her responsibilities and hoping the staff cover for him or her. THE OHIO STATE STUDIES INITIATING STRUCTURE: • It refers to the extent to which a leader defines and structures his/her role and the roles of group members in the search of goal attainment. • It includes behaviour that involves attempt to organise work, work relationships and goal. CONSIDERATION: • It refers to the extent to which a leader had job relationships characterized by mutual trust and respect for group members, ideas and feelings. • A leader who was high in consideration helped group members with personal problems, was friendly and approachable, and treated all group members as equal. A leader who was high in both initiating structure and considerations achieved high group task performance and high satisfaction more frequently than who rated low on either dimension or both. UNIVERSITY OF MICHIGAN STUDIES EMPLOYEE ORIENTED • Leaders who were employee oriented were described as emphasizing interpersonal relationships. • They took a personal interest in the needs of their followers and accepted the individual differences among group members. PRODUCTION ORIENTED • They tended to emphasize the technical or task aspects of the job were concerned mainly with accomplishing their group’s task and regarded group members as a means to the end. Conclusion of MSU researchers strongly favoured leaders who were employee oriented as they were associated with high group productivity and high job satisfaction. MANAGERIAL GRID • COUNTRY CLUB MANAGEMENT- (1,9)Thoughtful attention to needs of people for satisfying relationship leads to comfortable, friendly organization, atmosphere and work tempo. • TEAM MANAGEMENT –(9,9)Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect. • MIDDLE OF MANAGEMWENT –(5,5) Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level. • IMPOVERISHED MANAGEMENT-(1,1) Exertion of minimum effort to get required work done is appropriate to sustain organization membership. • TASK MANAGEMENT –(9,1) Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. CONTINGENCY THEORIES OF LEADERSHIP • Leadership as being more flexible . • Different leadership styles being used depending upon the circumstances. at different times • Suggested leadership is not a fixed series of characteristics that can be transposed into different contexts. May depend on: • Type of staff • History of business • Culture of the business • Quality of relationship • Nature of the change needed • Accepted norms within the institution. FIEDLER’S CONTINGENCY MODEL • The model was based on the premise that a certain a certain leadership style would be most effective in different types of leadership. • To measure a leader’s style Fiedler developed LPC (least preferred co worker) questionnaire. • LPC measured whether leader was task oriented or relationship oriented. Based on this Fiedler gave three contingency dimensions: 1. Leader-member relations • The degree of confidence, trust, and respect subordinates have in their leader. 2. Task structure • The degree to which the job assignments are procedurized. 3. Position power • Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases FIEDLER’S CONTINGENCY MODEL LPC questionnaire HERSEY AND BLANCHARD’S SITUATIONAL LEADERSHIP THEORY • This model also called as situational leadership theory(SLT). This theory focuses main attention on follower readiness and situation behavior of leader. • Readiness is defined as extent to which people have the ability and willingness to accomplish a specific task. • SLT uses the same two leadership dimensions that Fielder identified- task and relationship behaviour. • They go a step further by considering each as either high or low and then combining them into four specific leadership styles. SITUATIONAL LEADERSHIP THEORY Four specific leadership styles. • Telling – (high task and low relationship)- leader defines roles. • Selling-(high task and high relationship)- the leader provides both directive and supportive behaviour. • Participating-( low task and high relationship)- the leader and follower share in decision making. Main role of leader is facilitating and communicating. • Delegating- (low task and low relationship)- the leader provides little direction and support. Four stages of follower readiness • • • • R1- People are both unable and unwilling to take responsibility for doing something R2-People are unable but willing to the job tasks. R3- People are able but unwilling to do the what the leader wants. R4- People are both able and willing to what is asked of them. LEADERSHIP PARTICIPATION MODEL • Leadership participation model related the leadership behaviour and participation to decision making. • The model argued that leader behaviour must adjust to reflect the task structure- whether it was routine, non routine or in between. • The model provides the sequential set of rules (norms)that the leader followed in determining the form and amount of decision making, as determined by the different situations and thus called normative model. Leadership styles:• Decide • Consult individually • Facilitate • Delegate LEADERSHIP PARTICIPATION MODEL • There is also a current model which reflects the how and with whom decisions are made and uses variations of leadership styles. • It also expand upon the decision making contingencies leader look at in what leadership style would be most effective. • These contingencies are either present (H for High) or absent (L for Low). • Time driven model have short term orientation and concerned with making effective decisions with minimum cost . • Development driven model is also structured in the same way but emphasizes making effective decisions with maximum employee development outcomes and places no value on time. Decision making contingencies:Decision significance Importance of commitment Leader expertise Likelihood of commitment Group support Group expertise Team competence PATH AND GOAL THEORY • The term path goal is derived 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 make the journey along the path easier by reducing road blocks and pitfalls. • According to House, there are four different types of leadership styles depending on the situation: 1. Directive Leadership 2. Supportive Leadership 3. Participative Leadership 4. Achievement-oriented Leadership House assumed that the leaders are flexible and same leader can display any of all these leadership styles depending upon the situation. CONTEMPORARY VIEWS ON LEADERSHIP TRANSFORMATIONAL LEADERSHIP • Leaders who stimulates and inspire(transforms) followers to achieve extraordinary outcomes. TRANSACTIONAL LEADERSHIP • Leaders who guide or motivate followers to work towards established goals by exchanging rewards for their productivity. • Transformational leadership is built on the top of transactional leadership. • It produces levels of employee effort and performance that go beyond what would occur with a transactional approach alone. • Transformational leaders were evaluated as more effective, higher performers, more promotable, than their transactional counterparts, and more interpersonally sensitive. • Transformational leadership is strongly correlated with lower turnover rates and higher levels of productivity, employee satisfaction, creativity, goal attainment, and follower well being. CHARISMATIC LEADERSHIP A charismatic leader is an enthusiastic, self confident leader whose personality and actions influence people to behave in a certain ways. CHARACTERISTICS OF CHARISMATIC LEADERSHIP They have a vision Able to articulate that vision. Are willing to take risks to achieve that vision. Sensitive to both environmental constraints and follower needs. Exhibit behaviour that are out of the ordinary. VISIONARY LEADERSHIP VISIONARY LEADERSHIP The ability to create and articulate a realistic, credible and attractive vision of the future that improves upon the current situation • Visionary leaders have the ability to: • Explain the vision to others. • Express the vision not just verbally but through behavior. • Extend or apply the vision to different leadership contexts TEAM LEADERSHIP • The role of team leader is different from traditional leader. Team leaders should have skill such as: • Having patience to share information, • Being able to trust others • to give up authority • Understanding when to intervene. • Difficult balancing act of knowing when to leave their teams alone and when to get involved. • • RESPONSIBILITY • OF TEAM • LEADERS:- Coaching Facilitating Handling disciplinary problems Reviewing team and individual performance. • Training and communication Liaison with external constituencies Coach Team leader roles Conflict manager Trouble-shooter MAJOR ISSUES OF LEADERSHIP • Managing power:- Legitimate, coercive, reward, expert and referent. • Developing trust:- Integrity, competence, consistence, loyalty and openness. • Providing ethical leadership • Empowering employees • Cross cultural leadership • Gender differences in leadership • Demise of celebrity leaders • Substitutes of leadership