LEADERSHIP CHAPTER 6 @ZURAIDAH MOHAMED ISA/UiTM KEDAH/2008 Managers Versus Leaders “Not all leaders are managers, nor are all managers leaders.” • Managers – Persons whose influence on others is limited to the appointed managerial authority of their positions to reward and punish. • Leaders – Persons with managerial and personal power who can influence others to perform actions beyond those that could be dictated by those persons’ formal (position) authority alone. DEFINITION LEADERSHIP • The process of influencing a group toward the achievement of goals ( Robbins) LEADER • Someone who can influence others and who has managerial authority 1 LEADERSHIP Leadership is an influence process; therefore, leaders are people who, by their actions, encourage a group of people to move toward a common or shared goal. IMPORTANCE o Make contributions to organization o Enhance cooperation o Encourage teamwork o Motivate workers Leadership Theories • Trait Theory of Leadership • Behavioural Theories of Leadership – Ohio State Studies – Michigan Studies – The Managerial Grid • Contingency Theories of Leadership – Path-Theory Theory – Life Cycle Theory@ Situational Leadership Theory 2 Trait Theory of Leadership Trait Theories Of Leadership • Trait theories of leadership – Theories that attempt to isolate characteristics that differentiate leaders from nonleaders • Attempts to identify traits that always differentiate leaders from followers and effective leaders from ineffective leaders have failed. • Attempts to identify traits consistently associated with leadership have been more successful. Six Traits That Differentiate Leaders from Nonleaders 1. 2. 3. 4. 5. 6. Drive Desire to lead Honesty and integrity Self-confidence Intelligence Job-relevant knowledge Source: Repr inted from “Leadership: Do Traits Really Matter?” by S. A. Kirkpatric k and E. A. Loc ke by per mission of Academy of Management Executive. May 1991, pp. 48–60. © 1991 by Academy of Management Ex ecutive. Exhibit 11.1 3 Behavioural Theories of Leadership - Ohio State Studies - Michigan Studies - The Managerial Grid Behavioral Theories Behavioral Theories of Leadership Theories proposing that specific behaviors differentiate leaders from nonleaders. • Trait theory: Leaders are born, not made. • Behavioral theory: Leadership traits can be taught. Behavioral Theories Of Leadership • Behavioral theories of leadership – Theories that attempt to isolate behaviors that differentiate effective leaders from ineffective leaders – Behavioral studies focus on identifying critical behavioral determinants of leadership that, in turn, could be used to train people to become leaders. 4 Leadership Behaviors or Styles (cont’d) • Laissez-faire style of leadership – A leader who gives employees complete freedom to make decisions and to decide on work methods • Conclusions about leadership styles – The laissez-faire leadership style is ineffective. – Quantity of work is equal under authoritarian and democratic leadership styles – Quality of work and satisfaction is higher under democratic leadership. Leadership Behaviors or Styles • Autocratic style of leadership – A leader who centralizes authority, dictates work methods, makes unilateral decisions, and limits employee participation. • Democratic style of leadership – A leader who involves employees in decision making, delegates authority, encourages participation in deciding work methods and goals, and uses feedback to coach employees. • A democratic-consultative leader seeks input and hears the concerns and issues of employees but makes the final decision him or herself. • A democratic-participative leader often allows employees to have a say in what’s decided. Continuum of Leader Behavior Source: Adapted and repr inted by per mission of the Har vard Business Review. An exhibit from “How to Choose a Leadership Pattern” by R. Tannenbaum and W. Schmidt, May–June 1973. Copyright © 1973 by the Pr esident and Fellow s of Harvard College; all rights reserved. Exhibit 11.2 5 The Ohio State Studies • Studies that sought to identify independent dimensions of leader behavior – Initiating structure • The extent to which a leader defines and structures his or her role and the roles of employees to attain goals – Consideration • The extent to which a leader has job relationships characterized by mutual trust, respect for employees’ ideas, and regard for their feelings The University Of Michigan Studies • Studies that sought to identify the behavioral characteristics of leaders related to performance effectiveness – Employee oriented • A leader who emphasizes interpersonal relations, takes a personal interest in the needs of employees, and accepts individual differences. – Production oriented • A leader who emphasizes technical or task aspects of a job, is concerned mainly with accomplishing tasks, and regards group members as a means to accomplishing goals. The Manage rial Grid A two-dimensional view of leadership style that is based on concern for people versus concern for production Source: Adapted and repr inted by per mission of the Har vard Business Review. An exhibition from “Br eakthrough in Organization Development” by R. R. Blake, J. A. Mouton, L. B. Barnes, and L. E. Greine November–December 1964, p. 136. Copyright © 1964 by the Pr esident and Fellow s of Harvard College; all rights reserved. Exhibit 11.3 6 Managerial Grid (Leadership Grid) • POINT (1,1) IMPOVERISHED MGMT – Manager has little concern for their people and production. Also known as Laissez-Faire • POINT (1,9) COUNTRY CLUB MGMT – Manager has high concern for people rather than production. Stress more to people’s need for friendly organization atmosphere and work tempo. • POINT (5,5) MIDDLE OF THE ROAD MGMT – Moderate concern for people and production. • POINT (9,1) AUTOCRATIC MGMT – Manager has high concern on production rather than people. Stress on operating. • POINT (9,9) TEAM MGMT – High concern on people and production. Manager believe that work accomplishment through commitment of people and interdependence as well as trust and respect. Contingency Theories of Leadership - Path-Theory Theory - Life Cycle Theory@ Situational Leadership Theory - Leader–Member Exchange Theory - Charismatic Leadership Contingency Theories • Path-goal theory – The theory that it is a leader’s job to assist followers in attaining their goals and to provide the necessary direction and support – A leader’s motivational behavior: • Makes employee need satisfaction contingent on effective performance. • Provides the coaching, guidance, support, and rewards that are necessary for effective performance. – Assumes that the leader’s style is flexible and can be changed to adapt to the situation at hand. 7 The Path-Goal Framework Subordinates’ personal characteristics • Perceived ability • Locus of control Leader behaviors • Directive • Supportive • Participative • Achievementoriented Environmental characteristics • Task structure • Work group Subordinates’ motivation to perform Path-Goal Leadership Behaviors • Directive leader – Lets employees know what is expected of them, schedules work to be done, and gives specific guidance as to how to accomplish tasks. • Supportive leader – Is friendly and shows concern for the needs of employees. • Participative leader – Consults with employees and uses their suggestions before making a decision. • Achievement-oriented leader – Sets challenging goals and expects employees to perform at their highest levels. Path-Goal Theory Exhibit 11.5 8 Situational Leadership • Situational leadership theory (SLT) – Leaders should adjust their leadership styles— telling, selling, participating, and delegating— in accordance with the readiness of their followers. • Acceptance: Leader effectiveness reflects the reality that it is the followers who accept or reject the leader. • Readiness: a follower’s ability and willingness to perform. • At higher levels of readiness, leaders respond by reducing control over and involvement with employees. Hersey and Blanchard’s Situational Leadership® Model Exhibit 11.7 Source: Repr inted w ith per mission from the Center for Leadership Studies. Situational Leadership® is a registered trademar k of the Center for Leadership Studies, Escondido, California. A ll r ights reserved. Life-Cycle Theory/ Situational Approach • Phase 1 (HT/LR) TELLING – One way communication – Manager define goals and roles to the employees – Employees lack of maturity (new and inexperienced) • Phase 2 (HR/HT) SELLING – Employees are learning to the job – Employees still lack of maturity 9 Continue…… • Phase 3 (HR/LT) PARTICIPATING – Employees shows their maturity – They motivated • Phase 4 (LT/LR) DELEGATING – Highest level of employees maturity – They are self-directed and able to exercise self-control Leader–Member Exchange Theory Leader-Member Exchange (LMX) Theory Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction. Leader-Member Exchange Theory 10 The Leader-Member Exchange (LMX) Approach Leader Subordinate 1 Subordinate 2 Subordinate 3 Subordinate 4 Out-Group Subordinate 5 In-Group Figure 17.7 Emerging Approaches To Leadership • Charismatic leadership theory – Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors • People working for charismatic leaders are motivated to exert extra work effort and, because they like and respect their leaders, express greater satisfaction. – Charisma leadership appears to be most appropriate when the followers’ task has a ideological component or when the environment involves a high degree of stress and uncertainty. Charismatic Leadership • A charismatic leader influences followers by: – Stating a vision that provides a sense of community by linking the present with a better future. – Communicating high expectations and expressing confidence that followers can attain them. – Conveying, through words and actions, a new set of values, and by his or her behavior setting an example for followers to imitate. – Making self-sacrifices and engaging in unconventional behavior to demonstrate courage and convictions about the vision. 11