Leadership PDF

ECONOMICS AND BUSINESS ORGANISATION Daniel EVANS Bachelor ABM1 never stop daring audencia.com CHAPTER 3: LEADERSHIP never stop daring CHAPTER OUTLINE I. The Nature of Leadership A. Definition B. Key components of the relationship C....

ECONOMICS AND BUSINESS ORGANISATION Daniel EVANS Bachelor ABM1 never stop daring audencia.com CHAPTER 3: LEADERSHIP never stop daring CHAPTER OUTLINE I. The Nature of Leadership A. Definition B. Key components of the relationship C. The emergence of leaders II. The contribution of classic leadership theories A. Trait based theories B. Behavioral based theories III. The contribution of situational approaches to leadership A. Fred Fiedler's contingent leadership model (1967) B. The situational leadership theory of Paul Hersey and Ken Blanchard (1967) IV. Contemporary approaches to leadership A. Transactional leaders or transformational leaders? B. Does national culture influence leadership? 3 LEARNING GOALS You should be able to … Describe the two types of needs adressed by leader Explain the importance of followers in leadership Give a brief description of LMX theory Explain the trait based & behavioural based approaches to leadership Describe the 4 management systems as defined by Rensis Likert Apply the behavioural continuum of Tannenbaum and Schmidt Explain the roles of initiating structure and consideration in leadership Explain Blake and Mouton’s leadership grid Explain and analyse Fiedler’s contingency theory Effectively apply Hersey and Blanchard’s situational leadership theory Explain the difference between transactional and transformational leadershio 4 I. THE NATURE OF LEADERSHIP never stop daring I. THE NATURE OF LEADERSHIP Definition Leadership is frequently defined as - a social (interpersonal) influence relationship - between two or more persons - who depend on each other to attain certain mutual goals. (work with each other) The leader's use of power promotes movement in their followers 7 I. THE NATURE OF LEADERSHIP Definition : 2 key needs that leaders address Encouraging others Maintenance needs Listening the need for individuals to fit and work together by Giving information having, for example, Expressing feelings shared norms, identity,… Defining tasks Task needs Clarifying activites the need for the group to make progress toward Facilitate attaining the goal that communications brought them together Creating procedures 9 I. THE NATURE OF LEADERSHIP B. Key components of the relationship The leader The people who take charge of or guide the activities of others. - Orchestrater - Set the tone of the group - Help achieve task and maintenance needs of the group 10 I. THE NATURE OF LEADERSHIP B. Key components of the relationship The followers Possibly the most critical component. Without followers, there is no leadership. - Define the needs to be fulfilled by the leader - Reject or accept the leader - Who they (the followers) are and how they behave or perform determines effective leadership practices - Do the have internal or external locus of control? - Do they have high/low Self-esteem and self-efficacy? - Are they high/low performers ? 12 I. THE NATURE OF LEADERSHIP B. Key components of the relationship The context (situation) The tasks and task environment that confront the group - Structured/unstructured? - Clear/ambiguous? - Known ways of solving? - Boring? Exciting? - Stressful? - Stable/unstable? - Crisis? 13 I. THE NATURE OF LEADERSHIP B. Key components of the relationship The process Distinguish between the person Leadership (leader)and the process (leading) process which is a complex, interactive, and dynamic working relationship between leader and followers. - An exchange - Leader gives what to follower? - Follower gives what to leader? - Bilateral influence (leader/follower) - Influence on context 14 I. THE NATURE OF LEADERSHIP B. Key components of the relationship The consequence A number of outcomes or Leadership consequences of the leadership process process unfold between leader, follower, and situation - Fulfilment of group maintenance needs? (relationships, shared values, satisfaction of individual needs) - Attainment of task needs? - Example : Leader-Member Exchange Consequences Theory (LMX) – establishment of mutual trust, loyalty, support, respect → high/low quality relations and exchanges emerge (in and out groups emerge) 15 I. THE NATURE OF LEADERSHIP B. Key components of the relationship According to the LMX theory (Leader-Members-eXchange) leaders have “favorites” and create ingroups. From the start of a relationship between a leader and a subordinate, the leader will implicitly categorize the subordinate as “in” or “out”. The members of the ingroup generally have similarities with the leader: age, gender, personality, skills, etc. They will perform better , be less prone to turnover and experience more job satisfaction. 16 I. THE NATURE OF LEADERSHIP C. The emergence of leaders Formal leader : individual who is recognized by those outside the group as the official leader of the group. Informal leader : not assigned by the organization. The informal leader is that individual whom members of the group acknowledge as their leader. Just like formal leaders, informal leaders can benefit or harm an organization depending on whether their influence encourages group members to behave consistently with organizational goals. 18 I. THE NATURE OF LEADERSHIP C. The emergence of leaders Designated leaders Emergent leaders Where does, or to whom, does power flow? How have concentrations of power changed over time? How does the situation facilitate emergence? Idiosyncrasy “credit” (good standing, helped advance team) 20 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES never stop daring I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES A. Trait based theories Early research in the 1920s places great importance on the personal traits of the leader and attributes their leadership to a set of qualities which allow the leader to differentiate him/herself from followers. Who IS a leader? physiological (appearance, height, and weight) demographic (age, education, and socioeconomic background), personality (dominance, self-confidence, and aggressiveness) intellect (intelligence, decisiveness, judgment, and knowledge) task-related (achievement drive, initiative, and persistence), and social characteristics (sociability and cooperativeness) 22 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES A. Trait based theories Exercise: What do you think are the qualities of a leader? Intelligence Charisma Determination Enthusiasm Strength Audacity Integrity, honesty Assurance Empathy… 23 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES A. Trait based theories Name great leaders: Gandhi, Winston Churchill, Barack Obama, Nelson Mandela, Charles de Gaulles, Abbé Pierre, Richard Branson, Steve Jobs, Jeff Bezos, Bill Gates, Simone Veil, Angela Merkel, Michael Jordan, Zinedine Zidane… What do they have in common? Each has its own characteristics. 24 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES A. Trait based theories High level of involvement Stronger than average desire for achievement DYNAMISM Ambitious Energetic (works tirelessly) Takes initiative Strong desire to influence and lead others DESIRE TO LEAD Likes to take responsibility HONESTY AND Builds relationships of trust with followers Honest and upright (matches his actions as much as possible with INTEGRITY his words) 25 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES A. Trait based theories Absence of doubt (sure of himself) Self-confidence ASSURANCE Ability to convince followers Sociable Extroverted: Rarely remains silent or withdrawn Ability to collect, synthesize and interpret information INTELLIGENCE Ability to share your vision Ability to overcome difficulties and make the right decisions PROFESSIONAL In-depth knowledge of business, industrial and technical issues This allows them to make relevant decisions and understand their COMPETENCE implications. 26 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES A. Trait based theories This theory affirms the innate nature of the qualities associated with leadership. 2 weaknesses of this approach that make it incomplete 1. Lack of universality : No single set of traits has been universally accepted as a predictor of effective leadership. What works in one context (situation) may not work in another. 2. Neglect of Leadership Development: The theory implies that leadership ability is largely static, neglecting the potential for individuals to develop leadership skills over time through experience and training. 27 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories The researchers then tried to identify behavioral determinants that distinguish effective leaders from others. In these studies, it becomes possible to train people and make them more effective leaders. 28 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories 1) Lewin, Lippit and White (1939), University of Iowa: These authors highlight 3 types of behavior (leadership styles): Autocratic Democratic Non-interventionist 29 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories The autocratic leader: Centralizes authority Imposes its working methods Makes unilateral decisions And limits employee participation. 30 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories Clear and faster decisions Does not promote creative work and reflection Allows deadlines to be met Risk of abuse of authority Style adapted to periods of Less motivation therefore higher stress or crisis turnover 31 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories The democratic leader: Seeks to involve its employees in the decision-making process Delegate your authority Encourages consultation in the development of working methods and the definition of objectives Takes care to motivate subordinates based on their reactions. 32 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories The democratic style can be subdivided into 2 categories: The consultative democratic leader inquires about the opinions of his employees, listens to their concerns and objections, but makes the decision alone. The participative democratic leader often allows his employees to participate in the decision-making process. Here decisions are made by the group. 33 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories Too much consultation is not always More satisfied employees effective in terms of time or objectives Less absenteeism Late decision-making and risk of non- More involvement and compliance with deadlines better productivity Risk of no longer being able to lead Mutual trust 34 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories The non-interventionist (or let it happen) leader: Leaves its employees free to make the decisions they deem relevant and to carry out their work as they see fit. Don't put any pressure Delegates tasks (passive attitude) This approach is mainly useful for a group of specialized collaborators who need almost no supervision, or in companies where creative freedom is essential. 35 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories Analysis shows that the least effective style is non- interventionist. Employees often need to be supervised in order to be able to work productively and qualitatively. Autocratic and democratic styles lead to an equivalent quantity of work, but the quality of work and satisfaction are much better within democratic groups. 36 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories 2) Rensis Likert and his associates studied the patterns and styles of managers for three decades at the University of Michigan, USA, and identified a four-fold model of management systems. He defined the relationship, roles and involvement of leaders and followers 37 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories Autocratic leadership with centralized decision-making. Exploitive Minimal delegation of authority. Authoritative Limited trust in subordinates. Motivation often through fear and punishment. Leadership remains autocratic but with a somewhat greater concern for employees' well-being. Benevolent Some delegation of authority, but major decisions are still Authoritative centralized. Limited upward communication and feedback. Motivation is through rewards, with some level of fear present. 38 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories Leaders consult with subordinates before making decisions. Greater delegation of authority, though ultimate control remains with the top management. Consultative Two-way communication is encouraged. Motivation through rewards and a higher degree of involvement and commitment from employees. Decision-making is distributed throughout the organization. High levels of trust and confidence in employees' capabilities. Extensive two-way communication, with active participation Participative - Group from all levels. Motivation through a strong sense of ownership, responsibility, and intrinsic rewards. 39 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories System 4, the participative-group style, is often considered the most effective in fostering a positive organizational culture, enhancing employee satisfaction, and improving overall performance. However, the effectiveness of each system can vary depending on the organizational context, the nature of the workforce, and the specific challenges faced by the organization. 40 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories 3) The behavioral continuum of Robert Tannenbaum and Warren Schmidt (1973) They propose a range of 7 behaviors which goes from a model centered on the leader (autocratic) to a model more centered on the employee. To guide your choice of behavior you must take into account: Your own strengths (feel comfortable with the planned leadership style) Those of your employees (their desire to take responsibility) and the current situation. 41 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories As teacher (legitimate authority) I can assign them. No explanation Why does this As a teacher I can assign teams and matter? explain why I have made the teams. (recall role of leader and goal) I propose team assignments and get your feedback, listen to questions then finalize. « Sir, Can I change I can define criteria and let students group. These people assign teams collectively (ex. mix aren’t working » women/men, 4 people, etc.) - so make the teams Let you make the teams. yourselves 42 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories How much are subordinates involved in decision making? - To be told what to do and follow highly structured directions? Make their own decisions? - How do you see decisions being made in an organisation? Tannenbaum and Schmidt Continuum « hands-on » « hands-off» 43 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories According to them, it is in the manager's interest to move, in the long term, towards a style that is increasingly centered on the employee because this makes it possible to improve: Staff motivation The quality of decisions The teamwork The moral And the progression 44 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories 4) Work that seeks to identify behavioral characteristics linked to effectiveness As early as the 1940s, Ohio State University highlighted two fundamental characteristics in leaders that emerged from their study of WWII pilots. Review the abridged LBDQ assessment proposed by OSU. 45 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories Answer the 16 questions about someone you know or have worked with (who was the « leader ») What are the scores? Try to define « C » and « IS ». What are these behaviours? 46 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories B-29 Commanders in WWII (used in the OSU studies) Top Leaders Scores : IS : 24 C : 25 47 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories INITIATING STRUCTURE: The leader entrusts specific tasks to employees, expects a certain level of performance and attaches great importance to meeting deadlines. CONSIDERATION : The leader maintains working relationships characterized by trust and respect. He is friendly and approachable, attentive to the well-being and satisfaction of employees 48 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories What leaders DO The Ohio State University Studies Consideration It’s both ! Initiating Structure C X When here ? C IS When here ? It’s not « one OR the other » IS 49 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories The leader who presents the 2 dimensions obtains greater performance and higher satisfaction from his employees than a leader who has only one of these dimensions. Using both Initiating Structure and Consideration (to varying degrees) the leader can improve performance 50 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories In 1961, the managerial grid of Robert Blacke and Jan Mouton (1961) took up this two-dimensional representation of leadership styles with: The manager's interest in profitability (turnover, results, production costs, achievement of objectives, etc.) The manager's interest in people (working conditions, well- being, team cohesion, needs, etc.) 51 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories The grid defines 9 possible values on each axis, for a total of 81 different leadership styles. Blake and Mouton have extracted 5 main management styles 52 I. THE CONTRIBUTION OF CLASSIC LEADERSHIP THEORIES B. Behavioural based theories Blake and Mouton’s Leadership Grid Concern for production – productivity, efficiency, objectives Concern for people – needs, interests, development of the team Styles Produce or perish Impoverished Middle-of-the-road Country club Team management They conclude (9,9) style as « best »