Chapter#8 ‘Leadership involves interpersonal skills and an ability to motivate others’ Or ‘Leadership is an interpersonal influence directed towards the achievement of a goal or goals.’ Interpersonal- Between People Influence- the Power to affect others Goal – something that we need / want to achieve. Effective leadership within an organisation involves: Guiding and directing others to achieve the goals of the organisation Making the best use of the knowledge, skills and talent of others in the organisation Developing the knowledge, skills and talent of others in the organisation. Effective Leadership and Leadership Style Since leadership is an aspect of management, it is necessary to establish whether there are any particular skills that a manager should have to be an effective leader. What makes a person a good leader? Are people born to be leaders? Can leadership skills be taught and learned? Types of Theories of Leadership Personal characteristics (‘Traits’ or ‘Qualities’). There is a view that a leader must possess certain personal qualities of leadership. The best leaders are ‘charismatic’. These characteristics are natural, and some individuals are born with them. They cannot be taught. after all, charisma is defined as a "divine gift of grace Autumn-11 Q.5 (a) What are the key characteristics of Charismatic Leaders? (03 marks) Leadership according to Circumstances and Situation Leadership styles range from domineering (autocratic or authoritarian) to democratic or even ‘laissez-faire’. The most suitable leadership style depends on circumstances. Some writers have argued that there is a ‘best’ leadership style. appropriate leadership style depends on circumstances (‘contingency theory’ of leadership). The Trait Theories Leadership A trait theory of leadership is that there is a set of personal qualities and characteristics that make a good leader. Individuals either have these qualities or they do not. Some people are therefore ‘born leaders’. Physical vitality and energy Intelligence and good judgment Eagerness to accept responsibility Enthusiasm and self-confidence Competence in the tasks Understanding their followers and their needs Skill in dealing with people (interpersonal skills or ‘soft skills’) Having a powerful need for achievement A capacity to motivate others Blake and Mouton Robert Blake & Mouton carried out research into managerial behavior and observed two basic dimensions of leadership: Concern for Production and High 9 (1,9) (9,9) Concern for People. 8 *1.1 Management Impoverished:- This manager only makes minimum effort in either area and will make the smallest possible effort required to get the job done. *1.9 ‘Country Club’ Management:- This manager is thoughtful and attentive to the needs of the people, which leads to a comfortable friendly organization atmosphere but very little work is actually. 7 6 5 4 3 2 1 Low 0 (1,1) 0 Low (9,1) 1 2 3 4 5 6 7 8 9 High *9.1 Task Management:This manager only concerned with production and arranges work in such a way that people interference is minimized. *9.9 Team Management:- This manager integrates the two areas to foster working together and high production to produce true team leadership. Benefits or Practical Applications:- Q.9 (a) Blake and Mouton’s theory of Leadership/Managerial Grid classifies the different leadership styles in the following combinations: (i) 1,1 (ii) 1,9 (iii) 9,1 (iv) 5,5 (v) 9,9 Identify and describe briefly the different leadership styles depicted by each of the above combinations. [A16_05] Ashridge: The research unit at Ashridge Management College distinguished four different management styles. Tells (autocratic) – the manager makes all decisions and issues instruction which must be obeyed without question. Strengths: 1. Quick decisions can be made when required 2. The most effective type of leadership for highly- programmed work. Weaknesses: 1. Communication are one-way, neglecting feedback potential for upward communication or team member input 2. Does not encourage initiative or commitment from subordinate, merely compliance. Sells (persuasive) - the manager makes all decisions but believe that team members must be motivated to accept them in order to carry them out properly. Strengths: 1. Team members understand the reason for decisions 2. Team members may be more committed 3. Team members may be able to function slightly better in the absence of instruction. Weaknesses: 1. Communications are still largely one-way. 2. Team mem bers are not necessarily motivated to accept the decision. Consults (Participative) – the managers confers with the team and takes their views into account, although still retains the final say. (According to research it is the most faviourate and liked method of workers of their leader) Strengths: 1. Involves team members in decisions, encouraging motivation through greater interest and involvement 2. Encourages upward communication Weaknesses: 1. May take longer to reach decisions 2. Team members input may not enhance the quality of the decisions. 3. Consultation can be a façade for a basic ‘sells’ style. Joint (democratic) – the leaders and the team members make the decision together on the basis of consensus. Strengths: 1. Can provide high motivation and commitment from team members. 2. Empowers a Team member to take the initiative Weaknesses: 1. May undermine the authority of the manager. 2. May further lengthen the decision – making process. 3. May reduce the quality of the decisions because of the politics of decision making. Likert’s Leadership Styles Exploitive Authoritative Benevolent Authoritative Consultative Participative The leader has a low concern for people. He uses threats and other fearbased. Communicatio n is downward Leader just show concern for people. Benevolent Dictator He listen but what he like to hear. Decisions are taken by the leader. There is not much teamwork among the subordinates The leader listen to subordinates. He trust in his subordinates, Yet not allow them to make decision Two-way vertical communication Little horizontal communications –less teamwork. The leader engages subordinates in the decisionmaking process. He has complete confidence. People are psychologically close-team. Economic reward against achievement of goals Tannenbaum and Schmidt Leadership Continuum Tannenbaum and Schmidt (1958) develop a leadership continuum. They suggested that leaders might start with one style (an authoritarian or autocratic style), and then change their style (towards more delegation of authority to subordinates) as the group members gain experience and become more mature. A task of the leader is to develop the individual members of the team and the team as a unit. He should therefore delegate authority and ask the team to make decisions according to the level of their abilities and maturity. Over time, however, a leader’s style should move from the left of the continuum towards the right hand side Tells Tells and Sells Tells and talks Consults Involves Delegates Abdicates Q.2 Identify and describe any six leadership styles enunciated by Tannenbaum and Schmidt. Identify the style of leadership that is best suited for an organization which requires quick decision making and consists of highly competent staff at all levels. Give reasons for your choice. (08) [A14] Lippitt and White’s Leadership Styles In 1938/1939 Lippitt and White carried out an investigation into leadership styles, using groups of schoolchildren working on arts and crafts projects, such as making masks. Three different types of leaders were assigned to the groups. Authoritarian or autocratic leadership style. The leader continually gave orders and instructions without offering any consultation. Democratic style. The leader offered guidance and encouragement to the children, and participated actively with the group. Laissez-faire style. The leader gave the children the knowledge they needed to do the work, but did not become involved and did not participate in the activities of the group. Aspect Democratic Autocratic Laissez-faire Moral High Good relationship Support each other and can work independently Aggressive with each other conflicts Blame Culture Member are demanding and have least interest in group Member cannot work independently, Not corporate with one another Quality Very High Very low Very low Quantity Very Low Very High Very low Weakest performance Fiedler’s Contingency Model Fred Fiedler’s contingency theory of leadership was developed from research he conducted in the 1960s into two leadership styles, and which style was the more effective. He began by identifying two leadership styles: Task-orientated leadership, Psychologically Distant Leader and Relationship-orientated leadership. Psychologically Close Leader These styles could be related to Blake’s grid and ‘concern for the task’ and ‘concern for people’. Fiedler’s Contingency Model The work situation depends on three factors: The relationship between the leader and the subordinates: If the leader is liked and respected, he is more likely to have the support of his subordinates The structure of the task. If the task is clearly defined, with clear goals, methods of working and standards of performance, it is more likely that the leader will be able to exert influence. The position power of the leader. If the organisation gives power to the leader, for the purpose of getting the job done, this is likely to increase the influence of the leader. For Fiedler’s Contingency Model Fiedler’s contingency theory • Fiedler studied the relationship between style of leadership and effectiveness of the work group. Two styles of leader were identified. • Psychologically distant managers (PDMs) Task-orientated leadership, – Maintain distance from their subordinate by formalizing roles and relationships within the tram (who have to accept your instruction). – Are withdrawn and reserved in their interpersonal relationships. – Prefer formal communication and consultation methods rather than seek informal opinion. – Judge subordinate on the basis of performance and are primarily taskoriented. – Fiedler found that leaders of the most effective work groups actually tend to be PDMs. • Psychologically close managers (PCMs); Relationship-orientated leadership. – Do not seek to formalize roles and relationships – Prefer informal contacts t regular forma staff meetings – They are more concerned to maintain good human relationships at work to ensure that tasks are carried out efficiently. Fiedler’s Contingency Model Fiedler’s Contingency Model (Continued) Charles Handy Charles Handy described his contingency approach to leadership styles as a best fit approach. There are four factors that influence the effectiveness of a leader: the leader himself – his personality and character, and leadership style the subordinates – the personalities of the individuals in the group, ,their preferences for a particular leadership style the task – Objectives of the group’s tasks, and methods of working the environment –organisation structure, the culture and norms of the organisation, the technology of the organisation’s operations and the variety of tasks performed by subordinates in the group. Charles Handy Tight Flexible The Leader Prefers an autocratic style Low opinion of subordinates Dislikes uncertainty Prefers a democratic style High regard for subordinates Accepts a reasonable amount of uncertainty Subordinate Low opinion of their own High opinion of their own abilities Like challenging work Prefer democratic leaders . abilities Like certainty. Like to be told what to do Prefer autocratic leaders See their work as unimportant Task Job requires no initiative, is routine and repetitive, or has a certain outcome, short time scale for completion Important tasks with a longer time scale; problem solving or decision-making involved, complex work Hersey and Blanchard: Situational Leadership Theory Paul Hersey and Kenneth Blanchard (1968) developed another contingency theory of leadership, which they called situational leadership theory. A leader should adjust his or her leadership style to meet the requirements of the work situation. Leaders must be able to use any leadership style, and should switch from one style to another as circumstances require Blanchard identified subordinates’ maturity in terms of: Able to Work: competence in their job and their ability to undertake successfully the tasks they are given – job maturity and confidence in their ability to deal with the challenges of the task Follower Readiness: Willingness To Work: commitment to the organization's goals and commitment to undertake the task – psychological maturity. Contingency Leadership The action-centered approach: Adair suggests that any leader has to strive to achieve three major goals while at the same time maintaining a position as an effective leader. Adair’s action – centered leadership model look at leadership in relation to the needs of the task, individuals and group. Adair’s 50:50 rule Adair suggested a 50:50 rule that applies to his thinking about leadership. Leadership is influential, but effective leadership on its own is not sufficient. Individual: 50% of motivation comes from within the individual. The other 50% of motivation comes from influences outside the individual, including the influence of the leader. Team: 50% of building a successful team comes from the team members and 50% comes from the leader of the team. Setting objectives Planning tasks Allocating of responsibilities Setting performance standards Communication Team building Motivating Discipline TASK NEEDS GROUP NEEDS INDIVIDUAL NEEDS Coaching Counseling Developing Motivating Transformational leadership (Bennis): Some of the values used to distinguish between managers and leaders have also been identified as; Transactional leaders – see the relationship with their followers in terms of trade: they give followers the rewards they want in exchange for service, loyalty and compliance. Transformational leaders – see their role as inspiring and motivating others to work at level beyond mere competence. Bennis is an influent American author on leadership and change. He focuses on the need to inspire change rather than imposing it. He identifies five ‘avenues of change’: Dissent and Conflict – top management imposes changes by means of their position of power, the result being rancor amongst those affected. Trust and truth – management must gain trust, express their vision clearly, and persuade other to follow. Cliques and cabals – cliques have power, money and resources; cabals have ambition, drive and energy. Unless the cliques can co-opt the cabals, revolution in inevitable. External events – forces of society can imposes change; e.g. by new government regulation or through overseas competition. Culture or paradigm shift – changing the corporate culture is the most important avenues of change. Managing change (Kotter) Kotter set out the following changes approaches to deal with resistance: Participation and E.g. this approach aims to involvement involve employees, usually by allowing some input in to decision making. Education and E.g. this approach aims to keep communication employees informed, usually through presentations about the reasons for the required change. Facilitation and support E.g. training, counselling Manipulation and E.g. the information that is co-optation disseminated is selective and distorted to only emphasize the benefits of the change. Negotiation and E.g. this approach enables agreement several parties with opposing Employees are more likely to support changes made and give positive commitment as they ‘own’ the change. This approach relies on the hopeful belief that communication about the benefits of change to employees will result in their acceptance of the need to exercise the changes necessary. Employees may need help to overcome their fears and anxieties about change. Involves covert attempts to sidestep potential resistance. This bargaining leads to situation of compromise and agreement. Leadership to Mobilize (Heifetz) Heifetz argues that the role of the leader is to help people face reality and to mobilize them to make change. Heifetz suggests that the old approach to leadership was that leaders had the answers, the vision and then needed to persuade people to sign up for the change. Heifetz believes that that the leaders provide direction but do not have to offer definite answers and should mobilize people to tackle the tough challenges for themselves. Qualities of leadership are dispersed in the people not only management selected people are good manager Leaders have two choices when resolving a situation Technical change – the application of current knowledge, skills and or tools to resolve a situation Adaptive change – is required when the problem cannot be solved with existing skills and knowledge and requires people to make a shift in their values, expectations, attitudes or habits of behavior. Q.3 Consider the following situations: (i) Salman delegates some day-to-day decisions to subordinates. He also facilitates and participates in discussions about some of the decisions with subordinates who are competent in their work, but lack psychological confidence. He boosts their confidence and motivation from time to time. (ii) Ahmed defines the roles and tasks of subordinates and supervises them closely. Decisions are announced by him. Most of the communication is downwards. (iii) Hamid is involved in discussions about problem-solving and decision-making but control mostly vests with the subordinates. The subordinates can perform their work with little support. They refer to him only when they consider it necessary. (iv) Bashir defines the roles and tasks of subordinates. At times he seeks ideas and suggestions from subordinates. However, he makes most of the decisions but supports and praises the subordinates to boost their self-esteem. In the context of Hersey and Blanchard’s style of situational leadership, identify the leadership style in each of the above situations and state when these styles would be most effective. (06) [A16] (i)Leadership style: Participating (ii) Leadership style: Telling. (iii) Leadership style:Delegating (iv) Leadership style: Selling