101.

MANAGEMENT & ORGANISATIONAL THEORY

Leadership
Reference Notes for Executive MBA - Academy of Management

Defining Leadership
The use of influence to achieve goals

Reference Notes for Executive MBA - Academy of Management

The trait perspective of leadership The Great Man approach

Traits = distinguishing personal characteristics that are generally not mutable (changeable)
Weak but consistent support for a variety of leadership traits
Self-confidence Honesty/Integrity Energy Need for achievement Intelligence Dominance Emotional stability Motivation to lead

Reference Notes for Executive MBA - Academy of Management

Ohio State studies of leadership

Two key dimensions were related to leadership
Consideration the extent to which the leader is approachable and shows personal concern for subordinates
and

Initiating structure the extent to which the leader is task oriented and directs the group toward goal attainment
Reference Notes for Executive MBA - Academy of Management

Fiedlers Contingency Theory

Leader motivation
o o o

Relationship oriented - high LPC score Task oriented - low LPC score

Situational conditions
Leader-member relations favourable when there is support, trust, and cooperation o Task structure favourable when there is high task structure: clear goals, procedures, and objective measures of performance o Position power favourable when supported by the organization hierarchy

Reference Notes for Executive MBA - Academy of Management

Fiedlers Contingency Theory

Favourablenes s Leadermember relations Task structure Position power

Effective leader orientation

Reference Notes for Executive MBA - Academy of Management

Path-Goal Theory
Leader behaviour types 1.Directive behaviour schedules work, sets performance standards, gives direction 2.Supportive behaviour friendly, approachable, expresses concern 3.Participative behaviour uses consultative processes, shares work problems, considers suggestions 4.Achievement oriented demanding and supportive, seeks continual improvement

Reference Notes for Executive MBA - Academy of Management

Path-Goal Theory
Subordinate characteristics
o o

Locus of control Self-confidence - subordinate perception of their abilities skills and experience

Situational characteristics
Task structure clear and routine versus challenging and ambiguous o Team dynamics - work group norms and influence
o

Reference Notes for Executive MBA - Academy of Management

Participative Leadership Model

Purpose:
To motivate increases enrichment and autonomy
To increase acceptance of the decision in issues of fairness or change To create quality adds more information into the problem solving

Reference Notes for Executive MBA - Academy of Management

Participative Model
Downsides
Time and energy involves a slower process and less experienced participants
Lack or receptivity or knowledge not everyone is interested or skilled enough Organizational climate or leader attributes the organization or leader may not be predisposed to use participatory methods
Reference Notes for Executive MBA - Academy of Management

Participative Leadership Theory

Four key considerations:

1. Quality requirement can the decision turn out badly; are all options equal in quality (is one option really just as good as any other) 2. Commitment/Acceptance decision - will employees be committed enough to the decision to implement it properly 3. How cohesive is the group does everyone cooperate or is there conflict among group members or between group and leader 4. Time availability how efficiently must the decision be made
Reference Notes for Executive MBA - Academy of Management

leader participation contingency variables

QR Quality Requirementis the technical quality of this decision important LI Leader information does the leader have sufficient information to create a high quality decision ST Problem Structure is the problem well structure CR (AR) Commitment/Acceptance Requirement- is subordinate commitment to the decision important CP (AP) Commitment/Acceptance Probability if you made the decision yourself, is it reasonably certain that subordinates would be committed to the decision GC Goal Congruence Do subordinates share the organizational goals to be attained by solving this problem CO Subordinate Conflict Is conflict among subordinates likely in the preferred solution SI Subordinate Information Do subordinates have sufficient information to make a high quality decision

Reference Notes for Executive MBA - Academy of Management

leader participation contingency variables

Added considerations:
TC Time Constraint Is there a time constraint that limits your ability to involve subordinates MD Motivation Development Is it important to maximize the opportunities for subordinate development

Reference Notes for Executive MBA - Academy of Management

Participative Leadership
Issues:
Not all subordinates are equally skilled or interested Not all managers are equally skilled or interested Not all organizational cultures support flexible decision styles

Reference Notes for Executive MBA - Academy of Management

Leader-Member Exchange (LMX)

Examines the dyadic relationship between leaders and followers. In-group members versus out-group members based upon compatibility In-group members do extra things for the leader, perform beyond the requirements of the job and the leader in turn gives rewards beyond those allotted to outgroup members
Reference Notes for Executive MBA - Academy of Management

Transactional Leaders
Power is derived through our acceptance of organizational structures and hierarchy Through the ability to reward and punish

The leader clears and defines the pathway so that followers know what is expected Takes into consideration followers needs

Reference Notes for Executive MBA - Academy of Management

Transformational leaders
Influence comes from follower acceptance of values and vision which guide all decisions and behaviours Transformational Leaders:
o o o

Intellectually stimulate followers Give individualized consideration Are charismatic

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Neutralizers of leadership
People oriented Task oriented leadership leadership -Knowledgeable, experienced subordinates x -Subordinates with high need for independence x x -Professional subordinates x x -Subordinates indifferent to organizational rewards x x -Subordinates doing routine or standardized work x -Task has built in feedback x -Task is intrinsically satisfying x -Organization is highly formalized (written rules) x -Work group is cohesive x x -Rewards cannot be affected by the supervisor x x -Large distance between supervisor and subordinate x x

Reference Notes for Executive MBA - Academy of Management

What are the neutralizers/substitutes

Julian is an extremely experienced sales person of sophisticated electronic equipment. He has a M.Sc. in electrical engineering and is on the road 11 months of the year. He really enjoys his job and likes the commissions he receives.

Reference Notes for Executive MBA - Academy of Management