MANAGEMENT
(MBA 612)
Berhanu Endeshaw
berhanu22012@gmail.com
October 2015
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Questions
What is leadership?
What is followership?
Is leadership the same as management?
What are the characteristics of successful
leaders?
Do leaders show distinctive patterns of
behavior?
What leadership styles are there?
How does leaders’ behavior vary with the
situation?
What sources of power and influence are
used by leaders?
What are the effects of different types of
leadership?
Can we do without leadership?
How can leadership skills be developed?
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A Leadership Story
A group of workers and their leaders are set a task
of clearing a road through a dense jungle on a remote island
to get to the coast where an estuary(section of a river
meeting the sea) provides a perfect site for a port. The
leaders organise the labour into efficient units and monitor
the distribution and use of capital assets – progress is
excellent. The leaders continue to monitor and evaluate
progress, making adjustments along the way to ensure the
progress is maintained and efficiency increased wherever
possible. Then, one day amidst all the hustle and bustle and
activity, one person climbs up a nearby tree. The person
surveys the scene from the top of the tree. And shouts down
to the assembled group below…“Wrong Way!”
(Story adapted from Stephen Covey (2004) “The Seven
Habits of Highly Effective People” Simon & Schuster).
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Leadership Myths?
Leadership is power (with people rather than over
people)
Leaders are born (but leaders are also “made”)
All groups have leaders (large groups tend to
require a leader)
People resist their leaders (most groups accept
the need for a leader)
Leaders make or break their groups
The “romance of leadership” exaggerates the
impact of a leader
Leaders do make a difference (e.g., sports
teams)
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.Chapter One:Introduction to Leadership
Chapter Objectives
Students will be able to distinguish the difference between
leadership and management.
Students will be able to identify how leadership is effective.
Students will understand importance of leadership for profit and
non-profit organizations.
Definition of Management
It is the process of assuring that the program and objectives of
the organizations are implemented as planned. Making sure the
work is done by others is the accomplishment of a MANAGER.
Definition of Leadership (LP)
• LP would mean different things to different people. There is no
universally accepted or a standard definition for leadership.
Some say: it is a process, and some say it’s ability and others
say the ability to obtain followers through INFLUENCE.
• Because of such factors as growing global influences and
generational differences, leadership will continue to have
different meanings for different people.
• Leadership is a dynamic relationship based on mutual influence
and common purpose between leaders and collaborators in
which both are moved to higher levels of motivation and moral
development as they affect real, intended change (Freiberg &
Freiberg, 1996).
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Leadership is the process of getting the cooperation of
others in accomplishing a desired goal.
“The process of influencing the activities of an organized
group in its efforts toward goal setting and goal
achievement” (Stogdill, 1950:3).
Leadership as” the art or process of influencing people
so that they will strive willingly and enthusiastically
towards the achievement of the organizational goals
(Koontz, et al; 1984:507). It includes making peoples
perform near to their full capacity.
Three key components to this definition:
- Leadership involves an influence in interpersonal process
between one person and a group
- Can’t have ‘leaders’ without ‘followers’
- Criterion for effective leadership = goal achievement
Based on these components, the following definition of
leadership can be made: Leadership is a process
whereby an individual influences a group of individuals to
achieve a common goal.
Leadership: guidance of others in their pursuits, often
by organizing, directing, coordinating, supporting, and
motivating their efforts.
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• Inspiring others to do better work is the
accomplishment of a LEADER.
“Management is doing things right, leadership is
doing the right things” (Warren Bennis and
Peter Drucker)
Leadership & Management are distinct, yet
complementary systems of action.
Proverb: He who thinks he leads and has no one
following him is only taking a walk.
What is a Follower?
A follower is an individual who follows the ideas,
goals, or tasks of a leader.
Followers are developed by working together to
identify goals and strategies for achieving the
organization goals.
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The Significance of Leadership
• Research and opinion: Two perspectives
A. Leadership does make a difference
• Leadership had a direct impact on organizational climate,
and that climate in turn accounted for nearly one third of
the financial results of organizations (Goleman, 2000)
• Leadership behavior accounts for almost 50 per cent of
the difference between change success and failure
(Malcolm Higgs, 2006)
• Leadership accounted for more variations in performance
than any other variable (Northouse, 2006)
• Leadership is one of the many important factors.
• Leadership is key in providing vision and direction.
• Leadership can account for up to 44 percent of a firm's
profitability.
• Leadership is critical in orchestrating (direct) change.
• Leadership's impact is moderated by situational factors.
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Cont’d
B. Formal Leadership does not make a difference
– Argues LP has smaller impact on organizational
outcomes than do forces in the situation
– Raise three major arguments:
Substitutes for leadership: closely knit (join) teams of
highly trained individuals, intrinsic satisfaction,
computer technology, & professional norms
Leader irrelevance- LP is irrelevant for most
organizational outcomes. It is the situation that must be
carefully analyzed. Factors outside the leader’s control
have a larger impact on business outcomes than do LP
actions
Complexity theory- argues leaders and managers can
do a little to alter the course of the complex
organizational systems. Factors outside the leader’s
control determine the company’s fate (destiny).
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Cont’d
Leadership Is Insignificant
• Outside environmental factors affect organizations
more than leadership.
• Internal structure and strategy determine the course
an organization takes.
• Leadership accounts for only 7 to 15 percent of
financial performance.
• Leaders have little discretion to really make an impact.
• Leadership is a romantic myth rather a real
organizational factor.
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Leadership vs. Management
• Management and Leadership are not the same thing (Van Fleet
1991:157)
• In deed, managers and leaders share a number of traits.
• Leadership and management are two distinctive and complementary
systems of action…… Both are necessary for success in an increasingly
complex and volatile business environment.”
• Strong leadership with weak management is no better, and is sometimes
actually worse, than the reverse.
• Management is about coping with complexity….. Without good
management, complex enterprises tend to become chaotic
(disordered)… Good management brings a degree of order and
consistency….
• Leadership, by contrast, is about coping with change…. More change
always demands more leadership.
• “Companies manage complexity by planning and budgeting, by
organizing and staffing, and by controlling and problem solving. By
contrast, leading an organization to constructive change involves setting
a direction (developing a vision of the future and strategies to achieve
the vision), aligning people, and motivating and inspiring them to keep
moving in the right direction."
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Managers vs. Leaders
Understanding the distinctions between
management and leadership is a key step in
orchestrating change. Scholars defined managers
and leaders in the following ways.
Leader
- Provide vision and motivates people;
- Goal-oriented
Manager
- Make sure things happen through other
people;
-Task-oriented
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Managers vs. leaders
• Managers know how to plan, Leaders create and communicate
budget, organize, staff, control, and visions and strategies
problem solving
Managers deal mostly with the Leaders deal mostly with change
status quo Leadership deals with the top
Management is a bottom line focus: line: What are the things I want
How can I best accomplish certain to accomplish?
things? Leadership is doing the right
Management is doing things right things
Change is a threat to be Change is a competitive
controlled advantage to be embraced
Change is “managed” through Change is “led” through the
methods and tools heart and mind
Selected change managers are A team of change leaders is
most qualified to handle change required to lead change
Issues and problems can be Issues and problems can be
cleaned up “after the fact” mitigated proactively
Focus on managing work Focusing on leading people
Strategies Movement
Visioning Inspiring
Challenge Energy
Risk Passion
Strategizing Performing
Action Change
Risking Delegating
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Adaptation: Leading Change, John Kotter, Harvard Business School Press, 1996.
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The Difference: per Craig Hickman
Leaders
Managers
(Experimental, visionary, flexible,
(Analytical, structured, controlled,
deliberate, orderly) unfettered/creative)
Uses the power of intuition (ability to
Uses the power and logic of understand immediately without the need to
the rational mind conscious reasoning) and logic of the heart
Controls Inspires
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The Difference: per Manfred Kets de Vries
Managers Leaders
Focuses on the present Looks toward the future
Prefers stability Appreciates change
Orients toward the short Orients toward the long
term term
Focuses on procedure Engages in a vision
Asks “what” and “how” Asks “why” and “what”
Prefers to control Knows how to delegate
Is happy in complexity Prefers to simplify
Uses the rational mind Trusts intuition
Works within the context Takes social and
of the organization and environmental contexts
the business into consideration
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.The Difference: John Kotter on Managers
Roles & Responsibilities Objectives
Order
Budgeting Reassuring
Consistency
Zero Deviations
Organizing Monitoring
Stable Performance
Adaptation: Leading Change, John Kotter, Harvard Business School Press, 1996.
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The Difference: Accompli’s View
Leadership is not a position/title: it is a state of mind
We have all been leaders at one or more points in time,
and we constantly have leadership moments in life
The positive/negative distinction between management
and leadership is misleading and not helpful
What’s required for successful change is:
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Short- vs. Long-Term: Accompli’s View
No judgment should be applied to the
notions of “short-term” and “long-term” –
they are both necessary and need to be
integrated
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. Transitioning :The Challenge Points
.
Board of
Directors
Chairman/CEO
President Executive
Sr./Exec
VP Leader
Vice-
President
Manager
Director
Manager
Supervisor
Clerical
& Line
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Short- vs. Long-Term: The Horizon Perspective
. Board of n
Directors
Chairman/CEO n
President n
Sr./Exec VP n
Vice President n
Director n
Manager n
Supervisor n
.
Establish
organizational
mission
Leader’s Job
Formulate
Strategy for
implementing
mission
Implement
Manager’s Job organizational
strategy
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Overcoming the Challenges
-Why managers don’t make the transition to leader?
1. Overwhelmed (defeat 6. No clearly defined
completely; overpower)! organizational path
5. Cannot get in . . .
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. . .and one more reason the ultimate challenge. . .
I do not know
how to change. . .
“You must be the change you wish to see in the
world.”
Mahatma Gandhi –
Indian Leader
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.The Difference: U.S. Examples
MANAGERS LEADERS
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Summary: Leadership vs. Management
The view of the differences between managers and leaders:
• The manager administers; the leader innovates.
• The manager is a copy; the leader is an original.
• The manager maintains; the leader develops.
• The manager focuses on systems and structure; the leader
focuses on people.
• The manager relies on control; the leader inspires trust.
• The manager accepts reality; the leader investigates it.
• The manager has a short-range view; the leader has a
long-range perspective.
• The manager asks how and when; the leader asks what
and why.
• The manager has his or her eye always on the bottom line;
the leader has his or her eye on the horizon.
• The manager imitates; the leader originates.
• The manager accepts the status quo; the leader
challenges it.
• The manager does things right; the leader does the right
thing.
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CHALLENGES OF BEING A LEADER
REJECTION
One of the most common costs of leadership is the
experience of rejection. If you are willing to accept the call to
leadership, at times, you may be rejected and misunderstood
CRITICISM
No leader is exempt! The very nature of effective leadership
involves taking a position on issues, making decisions, and
determining direction. These will always result in some form
of reaction from one’s environment.
LONELINESS
Leadership, at times, is lonely because you must be out front,
ahead of the followers. Also, because the leader is the one with the
guiding vision and purpose, he/she sees the end from the
beginning and must live both the process and destination, all at the
same time.
PRESSURE AND PERPLEXITY
Leaders must face the challenge of the responsibilities and
demands that come with leadership. These involve the need to
make critical decisions, often under constraints and external
pressure.
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Cont’d
MENTAL AND PHYSICAL FATIGUE
Leadership places heavy demands on the individual who
fills the position. There is no way to become an effective
leader and not be affected by its stress, physical demands,
and mental toll (charge).
PRICE PAID BY THOSE CLOSEST TO YOU
You must be aware of the tremendous cost which will be born by those
closest to you (for example, family members). Because leadership
demands the giving of oneself to others, your life becomes the
property of those whom you SERVE.
Reflect on the statement:
“Most organizations are over managed and
under led“
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The New Reality for Leadership
Old Paradigm New Paradigm
• Stability • Change and crisis
management
• Control • Empowerment
• Competition • Collaboration
• Uniformity • Diversity
• Self-centered • Higher purpose
• Hero • Humble /modest
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END
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