Leadership in Organizations PDF

***UNIT 11 -- Leadership in Organizations*** *Ref:* Daft &Marcic (2011). *Management: The new workplace.* 7^th^ed. International Ed. South-Western Cengage Learning.Chp. 15. **[DEFINITION OF LEADERSHIP]** Leadership is defined as the ability to influence people toward the attainment of organizati...

***UNIT 11 -- Leadership in Organizations*** *Ref:* Daft &Marcic (2011). *Management: The new workplace.* 7^th^ed. International Ed. South-Western Cengage Learning.Chp. 15. **[DEFINITION OF LEADERSHIP]** Leadership is defined as the ability to influence people toward the attainment of organizational goals. Three aspects stand out: - *People- leadership occurs among people, that is, leadership is reciprocal. Leaders are involved with other people* - *Influence - leadership involves influence which means that the relationship among people is not passive* - *Goals* -- Influence is designed to achieve the goal **[THE IMPORTANCE OF LEADERSHIP TO ORGANIZATIONS]** - The attitudes and behaviours of leaders play an important role in shaping employee attitudes, such as their job satisfaction and organizational commitment. - Different leaders behave in different ways, depending on their individual differences as well as their followers' needs and the organizational situation. **[MANAGEMENT VS LEADERSHIP]** Management and leadership reflect two different sets of qualities and skills that frequently overlap within a single individual. - A person might have more of one set of qualities than the other, but ideally a manager develops a balance of both manager and leader qualities. A primary distinction between management and leadership is that: ***Leadership CANNOT replace management; it should be in addition to management.*** ***A manager takes care of where you are (helps to meet current commitments); a leader takes you to a new place (moves the organization in the future)*** PERSONAL CHARACTERISTICS ASSOCIATED WITH EFFECTIVE LEADERSHIP +-----------------------+-----------------------+-----------------------+ | **Physical | **Personality:** | **Work-related | | Characteristics**: | | Characteristics:** | | | - Self-confidence | | | - Energy | | - Achievement | | | - Honesty and | drive, desire to | | - Physical Stamina | integrity | excel | | | | | | | - Enthusiasm | - Conscientiousness | | | | in | | | - Desire to lead | | | | | pursuit of goals | | | - Independence | | | | | - Persistence | | | | against | | | | | | | | obstacles, tenacity | +-----------------------+-----------------------+-----------------------+ | **Intelligence and | **Social | **Social | | Ability:** | Characteristics:** | Background:** | | | | | | - Intelligence, | - Sociability, | - Education | | Cognitive | interpersonal | | | | skills | - Mobility | | ability | | | | | | | | - Knowledge | | | | | - Cooperativeness | | | - Judgment, | | | | decisiveness | - Ability to enlist | | | | cooperation | | | | | | | | - Tact, diplomacy | | +-----------------------+-----------------------+-----------------------+ **[BEHAVIOURAL THEORIES OF LEADERSHIP]** Behavioural theories propose that specific behaviours differentiate leaders from non-leaders i.e. leadership is a skill set and can be taught to anyone, so we must identify the proper behaviors to teach potential leaders. Two basic leader behaviours identified as important for leadership are task-oriented behavior (concern for tasks) and relationship-oriented behavior (concern for people). Behavioural Theories include: 1\. [The Ohio State Studies] - Researchers at The Ohio State University surveyed leaders to study hundreds of dimensions of leader behaviour. They identified two major behaviours, called *consideration* and *initiating structure.* - **Consideration** falls in the category of *people-oriented*behavior. **Consideration** is defined as *the extent to which the leader is mindful of subordinates, respects their ideas and feelings, and establishes mutual trust.* - **Initiating Structure** is the degree of task behavior. **Initiating Structure** is defined as *the extent to which the leader is task-oriented and directs subordinate work activities toward goal attainment. Leaders with this style typically give instructions, spend time planning, emphasize deadlines, and provide explicit schedules of work activities.* - Consideration and initiating structure are independent of each other, which means that a leader with a high degree of consideration may be either high or low on initiating structure. - A leader may have any of four styles: 1. *High initiating structure : low consideration* 2. *High initiating structure : high consideration* 3. *Low initiating structure : low consideration* 4. *Low initiating structure : high consideration* ***The Ohio State research found that the high consideration:high initiating structure style** **achieved better performance and greater satisfaction than the other leader styles. However, later studies show there may be mixture of high:low, depending on the situation*** 2. [University of Michigan Studies] -- The **University of Michigan Studies discovered t**wo dimensions for leadership: - Employee-oriented (employee-centered) -- emphasize interpersonal relations, take a personal interest in employees and accept individual differences among members - Production -- oriented (job-centered) -- emphasize the technical or task aspect of the job and efficiency measures. These leaders were less concerned with goal achievement and human needs in favour of meeting schedules, keeping costs low, and achieving production efficiency. 3. [The Leadership (managerial) Grid] -Blake and Mouton of the University of Texas proposed a two-dimensional leadership theory called **the leadership grid**. - It shows "concern for people" on the y-axis and "concern for production" on the x-axis - It outlines 81 different leadership styles and builds on the Ohio & Michigan Studies - Managers perform better under the 9,9 style known as Team Management Components of the Leadership Grid - *Team Management (9,9)*: is considered the most effective style and is recommended for managers because organization members work together to accomplish tasks. Work accomplishment is from committed people. There are relationships of trust and respect. - *Country Club Management (1,9):* occurs when primary emphasis is given to people rather than to work outputs. Thoughtful attention is given to the needs of people. This leads to a comfortable, friendly organization atmosphere. - *Authority-compliance management (9,1):* occurs when efficiency in operations is the dominant orientation. Efficiency occurs because work is arranged so that human elements interfere to a minimum degree. - *Middle-of-the-road Management (5,5):* reflects a moderate amount of concern for both people and production. Adequate organization performance is possible by balancing the necessity to get work out with maintaining morale of people at a satisfactory level. - *Impoverished Management (1,1):* means the absence of a management philosophy; managers exert little effort toward interpersonal relationships or work accomplishment. **[SOURCES OF POWER AND INFLUENCE]** - **Power**is the potential ability to influence others' behavior, that is, the capacity to cause a change in a person. - **Influence**is the effect a person's actions have on the attitudes, values, beliefs, or behaviour of others, that is, the degree of actual change in a person. Power results from an interaction of leader and followers. [Types of Power] There are two types: 1\. Position power- The traditional manager's power comes from the organization. The types of position power are from external sources: - **Legitimate** Power -- power coming from a formal position in an organization and the authority granted to it -- subordinates are obligated to follow his or her direction with respect to work activities. - **Reward Power** -- power that result from the authority to bestow rewards on other people. - **Coercive Power** -- power that stems from the authority to punish or recommend punishment 2\. Personal power- Personal power is the primary tool of the leader and comes from internal sources: - **Expert Power** -- power resulting from a leader's special knowledge or skill regarding the tasks performed by subordinates -- more evident at top management levels. - **Referent Power** -- power that comes from a leader's personal characteristics that command followers' identification, respect, and admiration so they wish to emulate the leader.Referent power does not depend on a formal title or position. It is most visible in a charismatic leader. 3\. Other Sources of Power -- These are not linked to a person or position but rather to the role an individual plays in the overall functioning of the organization. - **Personal Effort**-- power as a result of showing initiative, working beyond what is expected of you, accepting undesirable projects and showing interest in learning about the organization. Managers come to depend on these individuals. - **Network of Relationships**--this could be termed connection power. People who have a network of relationships in the organization, have greater power. - **Information** --People who have access to information and control over how and whom it is distributed are powerful. **TYPES OF LEADERSHIP** A. **[CHARISMATIC LEADERSHIP]** - A charismatic leader has the ability to motivate workers to transcend (go beyond) expected performance i.e. to do more that they would normally do despite obstacles. - The word is defined as a certain quality of an individual's personality, by virtue of which he or she is set apart from ordinary people and treated as endowed with supernatural, superhuman, or at least specifically exceptional powers or qualities. These qualities are not accessible to the ordinary person - Charismatic leaders have a profound emotional effect on their followers. Followers see them not only as 'bosses' but as role models and heroes who are larger than life. They inspire followers who are devoted and loyal to them and their vision. It is the followers who make the charismatic leader 1. Vision & Articulation -- they propose a better future 2. Personal risk -- willing to incur costs and engage in self-sacrifice to achieve the vision 3. Sensitive to followers needs -- perceptive and strong emotional intelligence 4. Unconventional behavior -- display novel, out of the ordinary behavior which may seem to be the opposite of the norms. B. **[TRANSFORMATIONAL LEADERSHIP]** - A transformational leader inspires followers to accept change and go beyond self-interest for the good of the organization 1. Lead change 2. Has charisma 3. Promote innovation & creativity and careful problem-solving, are able to excite, arouse and instill pride in workers (intellectual stimulation) 4. Do not rely on rules and incentives to motivate followers 5. Pay attention to the concern of followers; coaches and advises followers (individualized consideration) 6. Emotionally stable and have a strong ability to recognize and understand others' emotions 7. Communicates high expectations, uses symbols to focus efforts and expresses an important purpose in simple ways (inspiration) C. **[TRANSACTIONAL LEADERSHIP]** - A transactional leader guides and motivates followers in the direction of established goals by clarifying role and task requirements. Characteristics: 1. Uses rewards and punishment to encourage high performance (contingent reward) 2. Ensures that day to day tasks are completed and focuses on the smooth & efficient running of the organization 3. Conforms to norms and values and may avoid making decisions (laissez-faire) 4. Are excellent at the management functions 5. Hardworking, tolerant and committed to the organization 6. Are not change agents (they do not lead change) 7. Management by exception: Active - **Transformational versus Transactional Leadership** Transformational leadership is more strongly correlated with lower turnover rates, higher productivity, lower employee stress and burnout, and higher employee satisfaction. **Transformational versus Charismatic Leadership** Charismatic leadership places more emphasis on the way leaders communicate -- they are more passionate and dynamic than transformational leaders Transformational leadership focuses more on what they are communicating -- they are able to articulate a compelling vision Both transformational & charismatic leadership focus on the leader's ability to inspire followers.