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Leadership Basics

AIIM

The Meaning of Leadership


Leadership is an influence relationship among leaders and followers who strive for real change and outcomes that reflect their shared purposes.

In Search of Leadership
Studies say integrity is the most important leadership characteristic Also called authentic leadership
Individual acts with sincerity Has a higher moral capacity to judge dilemmas

Yet, most people think business leaders lack integrity:


73% say CEOs of large firms cant be trusted (US) Nearly 40% do not trust their immediate boss (UK) Approx 50% say business wrong doing has undermined their trust in employers (Australia)

Emerging View of Leadership


Effective leaders subordinate their own egos and nurture leadership in others.

Sir Richard Branson is often cited as a role model for the new leadership. I've got people all over the world and it's up to me to let them test and prove themselves, says Branson.

Reuters New Media Inc./Corbis

Comparisons Between Management & Leadership


CATEGORY
Thinking Process Direction Setting Employee Relations Mode of Operating Decision Methods

MANAGEMENT
Initiates Focuses on things Operational plans Improve the present Tight control Subordinates Efficiency Asks how and when Process and system Servers top managers

LEADERSHIP
Originates Focuses on people Vision Create the future Empower Associates Effectiveness Asks what and why Ideas and people Serves customers

Source: Adapted from Bolton, B. More than ever, IS needs leaders. Computerworld: Leadership Series, May 19, 1997,1-11; Robinson, G. Leadership versus management. British Journal of Administrative Management, January/February 1999, 20-21; Parachin, V.M. Ten essential leadership skills. Supervision, February 1999, 13-15; Bennis, W.,. and Goldsmith, J. Learning to Lead: A Workbook on Becoming a Leader. Reading, Mass.: Perseus, 1997.

Perspectives of Leadership
Competency Perspective
Implicit Leadership Perspective Behavior Perspective

Leadership Perspectives

Transformational Perspective

Contingency Perspective

Seven Leadership Competencies


Emotional Intelligence Perceiving, assimilating, understanding, and regulating emotions Truthfulness Translates words into deeds Inner motivation to pursue goals Need for achievement, quest to learn High need for socialized power to accomplish teams or firms goals

Integrity

Drive

Leadership Motivation

Seven Leadership Competencies


(cont)
High self-efficacy regarding ability to lead others Above average cognitive ability Can analyze problems/opportunities Familiar with business environment Aids intuitive decision making

Self-Confidence

Intelligence

Knowledge of the Business

Transformational v. Transactional Leaders


Transformational leaders
Leading -- changing the organization to fit environment Change agents

Transactional leaders

Managing -- linking job performance to rewards


Ensure employees have necessary resources Apply contingency leadership

Ubuntu Leadership
Ubuntu is that profound African sense that each of us is human through the humanity of other human beings, explains former South African president Nelson Mandela (shown here). The ubuntu value system provides a framework for leading others in Africa.

Leadership Traits (Ralph)


Desire to Lead
Honesty and Integrity Knowledge of the Business Emotional Stability Cognitive Ability

Drive Leadership SelfConfidence

David Gergen discusses the role that leadership


traits played in the success of U.S. presidents

Trust is even more relevant for leaders now, and personal integrity is the bedrock Leader and followers unite around a shared vision Humility that conveys absolute assurance but acknowledges a leaders equality can be inspiring

Attribution Leadership Model


Information Cues
* Distinctiveness * Consistency * Consensus

Perceived Source of Responsibility

Indicators of Poor Quality


* Rejects * Excess scrap * Returned products * Customer complaints

Causal Attribution of Poor Quality Internal causes:


* Low effort * Low commitment * Lack of ability ------------------------------

Leader Behavior in Response to Attributions


* Reprimand * Transfer * Demotion -----------------------------* Redesign job * Training * Change * Rewards

External causes:
* Improper equipment * Inadequate resources * Poor workflow

Blake/Moulton Leadership Grid


9 1,9 Country Club Management 8 Concern for People 7 6 5 4 3 2 1 Impoverished 1,1 Management 1 2 3 4 5 6 AuthorityCompliance 7 8 9,1 9
Middle of the

Team 9,9 Management

5,5
Road

Concern for Production

Leadership Styles in the Vroom-Jago Time-Driven Model


Decide Style Leader makes decisions and announces or sells it. Consult Individually Style
Leader presents the problem individually, without group input, and makes decision.

Consult Team Style


Leader presents problem to team members, seeks their input, and makes decision.

Facilitate Style
Leader presents problem to team, acts as discussion facilitator, and seeks concurrence.

Delegate Style
Leader permits the team to make decision.

Differences in the Contingency Models


MODEL: Fiedlers Contingency Model
LEADER BEHAVIORS
Task-oriented: Low LPC

Relationship-oriented: High LPC

CONTINGENCY VARIABLES
Group atmosphere Task structure Leader position power

LEADER EFFECTIVENESS CRITERIA


Performance

Differences in the Contingency Models


MODEL: Hersey and Blanchards Situational Model
LEADER BEHAVIORS
Task and relationship

CONTINGENCY VARIABLES
Readiness level of team members

LEADER EFFECTIVENESS CRITERIA


Performance Job satisfaction

Differences in the Contingency Models


MODEL: Vroom-Jago Leadership Model
LEADER BEHAVIORS
Continuum of decide to delegate

CONTINGENCY VARIABLES
Seven situational variables

LEADER EFFECTIVENESS CRITERIA


Decision quality Commitment to implementation Cost Employee development

Ohio State Uni. (Ralph Stogdill)


Consideration Initiating Structure
When is consideration effective? When is initiating structure effective?

Do Leaders Matter?
Leadership Irrelevance
Leadership may be irrelevant for many organizational outcomes.

Leadership Substitutes
Leader success depends on the characteristics of the

followers, team, situation, and organization. Each


can act as a substitute for leader behavior.

When Is Consideration Effective?


Routine tasks prevent job satisfaction.

Employees desire participative leadership.


Team members need to learn something new. Involvement in decision making affects employees job performance. Minimal status differences.

When Is Initiating Structure Effective?

Output pressures imposed by someone other than leader.


Task satisfies employees.

Employees rely on leader for direction and information.


Employees are predisposed toward directive leadership. Leader has more than 12 employees.

Likerts Four System


Exploitative authoritative Benevolent-authoritative Consultative Participative

Putting Leaders in the Fiedlers Contingency Theory

Right

Situation:

Situational Favorableness

Group Performance

=
Leadership Style

Putting Leaders in the Right Fiedlers Contingency Theory


Least Preferred Coworker

Situation:

Situational Favorableness Matching Leadership Styles to Situations

Fiedlers Basic Contingency Model


Situations: 1 2 Good High 3 Good Low 4 Good Low 5 Poor High 6 Poor High 7 Poor Low 8 Poor Low When Group Atmosphere Is: Good Task Structure Is: Leader Power Position Is: High

Strong Weak

Strong Weak

Strong Weak

Strong Weak

Effective Group Performance Achieved by:


Favorable for Leader:

Task-Oriented Leader Most Favorable

Relationship-Oriented Leader

TaskOriented Leader Least Favorable

Implications of Fiedlers Contingency Model


Task-oriented leaders have the strongest positive effect in situations

1, 2, 3, and 8.
Relationship-motivated leaders have the strongest positive effect in situations 4 through 7.

Relationship-oriented and task-oriented leaders perform well in


some situations but not in others. Leader effectiveness depends on the situation. Leaders can do something about their situations.

Limitations of Fiedlers Contingency Model


LPC scale is a questionable measure of leader behavior. Models core assumptions are questionable.

Task structure is not really a contingency variable.


Ethics and values are not linked to either LPC scores or

situational factors.

Vroom-Jago Time-Driven Leadership Model


Consult Individually Facilitate Facilitate Consult Individually Consult Group Consult Group

Team Competence Team Expertise TeamSupport Likelihood of Commitment Leader Expertise Importance of Commitment Decision Significance

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L L

H H Problem Statement

Source: Vroom, V. New developments in leadership and decision making. OB News, Briarcliff Manor, N.Y.: Organizational Behavior Division of the Academy of Management, headquartered at Pace University, spring 1999, 5. Copyright Victor Vroom, 1998.Used with permission.

Decide

Decide

Decide

Decide

Note: Dashed line ( -- ) mens not a factor.

Facilitate

Facilitate

Delegate

Delegate

Situational Variables in the Vroom-Jago Time-Driven Model


Decision Significance Importance of Commitment

Leader Expertise
Likelihood of Commitment Team Support Team Expertise Team Competence

Implications of the Vroom-Jago Leadership Model Model is consistent with knowledge about group and team behaviors. With correct diagnosis, leaders can more easily

match their style to the demands of the


situation.

Limitations of the Vroom-Jago Leadership Model


Most subordinates desire to participate in job-related decisions regardless of the models recommendation. Certain leader competencies are critical for the

effectiveness of different leadership styles.


Decisions are assumed to be single process rather than multiple cycle or part of a larger solution.

Robert Houses Path-Goal Theory


Subordinate Contingencies
Perceived Ability Locus of Control Experience

Leadership Styles
Directive Supportive Participative Achievement-Oriented

Outcomes
Subordinate satisfaction Subordinate performance

Environmental Contingencies
Task Structure Formal Authority System Primary Work Group

Path-Goal Leadership Styles


Directive
Task-oriented behaviors
People-oriented behaviors Encouraging employee involvement Using goal setting and positive self-fulfilling prophecy

Supportive

Participative

Achievement-oriented

Path-Goal Contingencies
Employee Contingencies Skill/Experience Locus of Control
Directive Supportive Participative Achievement low external low external high internal high internal

Environmental Contingencies
Task Structure Team Dynamics

Directive Supportive Participative Achievement


nonroutine ve norms routine low cohesion nonroutine +ve norms ? ?

Directive

Leadership Styles

clarifying expectations and guidelines

Supportive
being friendly and approachable

Participative
allowing input on decisions

Achievement-Oriented
setting challenging goals

Hersey And Blanchards Situational Leadership Model


TASK ORIENTED

RELATIONSHIP ORIENTED

Very high

High

Low

Very low

Maturity Level of Followers

Leadership Styles
Telling (R1) Selling (R2) Participating (R3) Delegating (R4) high task behavior low relationship behavior high task behavior high relationship behavior low task behavior high relationship behavior low task behavior low relationship behavior

Implications of Hersey and Blanchards Situational Model

Easily understood model with clear


recommendations.

Leader must constantly monitor employees


readiness levels.

Leadership style should change to fit changing


situations.

Limitations of Hersey and Blanchards Situational Model


Difficulty in addressing different readiness levels in a team situation. Follower readiness is the only contingency variable used. Some leaders may not be able to easily adapt their styles to fit the situation.

Model is not strongly supported by empirical data.

The Tannenbaum and Schmidt Continuum Of Leadership Behavior


Boss-centered leadership Employee-centered leadership

Use of authority by the manager

Area of freedom for subordinates

Manager makes decisions and announces it

Manager sells decision

Manager presents ideas and invites questions

Manager presents tentative decision subject to change

Manager presents problem, gets suggestions, makes decision

Manager defines limits; asks group to make decision

Manager permits subordinates to function within defined limits

Decision Styles
AI AII CI

CII

GII

Solve the problem yourself

Obtain information. Select a solution yourself.

Share problem Share problem, with group, get ideas from get ideas. individuals. Make decision, Select a which may or solution may not reflect yourself. input.

Share problem with group. Together tries to reach a solution. Leader acts as facilitator.

Aristotles Leadership
ETHOS (Appeal to their character) PATHOS (Appeal to their emotions) LOGOS (Appeal to their reason)

Components of the Transformational Leadership Model


Transformational Leadership Model * Idealized influence * Inspirational motivation * Intellectual stimulation * Individualized consideration

Transactional Leadership Model

Charismatic Leadership Model

Attribution Leadership Model

Definitions of Key Components of the Transformational Leadership Model


Inspirational Motivation
Pattern of behaviors and communication that guide followers by providing them with a sense of meaning and challenge in their work.

Intellectual Stimulation
Encouragement given to followers to be innovative and creative.

Idealized Influence
Behaviors of transformational leaders that followers strive to emulate or mirror.

Individualized Consideration
Special attention paid by a transformational leader to each followers needs for achievement and growth.

Common Characteristics of Transformational Leaders


Visionary
Charismatic And Ethical

Trustworthy

Transformational Leaders
Thoughtful Considerate

Confident