LEADING What is leading? Leading is about setting direction and ensuring that that direction is followed. Leading can apply to leading oneself, other individuals, groups, organizations and societies. The nature of how leading is done depends on the context of the situation, one one's perspective, and on the nature and needs of those involved. (http://managementhelp.org/leadership) Leading involves influencing others toward the attainment of organizational objectives. Effective leading requires the manager to motivate subordinates, communicate effectively, and effectively use power. If managers are effective leaders, their subordinates will be enthusiastic about exerting effort toward the attainment of organizational objectives. To become effective at leading, managers must first understand their subordinates' personalities, values, attitudes, and emotions. Therefore, the behavioral sciences have made many contributions to the understanding of this function of management. Personality research and studies of job attitudes provide important information as to how managers can most effectively lead subordinates. Studies of motivation and motivation theory provide important information about the ways in which workers can be energized to put forth productive effort. Studies of communication provide direction as to how managers can effectively and persuasively communicate. (http://www.enotes.com/management) How Leaders Influence Others Leadership, the foundation of the management function of leading, is the process of influencing others toward the achievement of organizational goals. Power is the capacity to affect the behavior of others. Power and influence are critical factors we encounter everyday in life. It can take place in a family setting, a corporate setting, a political setting, or a setting amongst friends. Power is defined as the ability of one person to influence another. The ability to use influence in ones favor can leave a lasting impression, it can help in building a strong business or social network and even help in obtaining the ideal job. In order for a leader's leadership to be effective, it is essential for the leader to influence their followers to higher levels. A leader has the ability to empower others and to change their lives. People that are under the influence of an empowering leader are like paper in the hands of a talented artist, no matter what the people are made of the leader can turn them into something beautiful. The ability to empower others is one of the keys to personal and professional success. For an influential leader no matter how much work they do or how engaging their personality may be, they know that they can not advance if they cannot work with others. (Maxwell, 2002) Leaders also know that in order to be influential they have to have a certain amount of knowledge and experience, but they also are aware that it does not make a difference how much knowledge or education that they may have or posses; if they are unable to achieve respect and results from their people, then they are worthless as a leader. (Maxwell, 2002) 1 Bases of Power Social psychologists French and Raven(1960)developed a schema of five bases of power which reflect the different bases or resources that power holders rely upon in their relationships with others. Often our power is based on different combinations of these. Legitimate Power. A person who occupies a higher position has this power over persons in lower positions within the organization. (Medina, 2006) Kings, policemen and managers all have legitimate power. The legitimacy may come from a higher power, often one with coercive power. Legitimate power can often, thus, be the acceptable face of raw power. A common trap that people in such roles can fall into is to forget that people are obeying the position, not them. When they either fall from power or move onto other things, it can be a puzzling surprise that people who used to fawn at your feet no long do so. (http://changingminds.org/explanations/power/french_and_raven) In a corporate setting, employees comply with the orders of a manager who relies on legitimate power based on the position in the organizational hierarchy that the manager holds. Yet, although employees may comply based on legitimate power, they may not feel a sense of commitment or cooperation. (http://www.referenceforbusiness.com/management) Reward Power. When a person has the ability to give rewards to anybody who follows orders or request, he is said to have reward power. Rewards may be classified into two forms: material and psychic. (Medina, 2006) Sam Walton, founder of Wal-Mart Stores, Inc., is an active user of reward power. Walton relies heavily on these intangible awards. He said that "nothing else can quite substitute for a few well-chosen, well-timed, sincere words of praise. They are absolutely free-and worth a fortune". Coercive Power. When a person compels another to others through threats or punishment, he is said coercive power. Punishment may take the form of dismissal, or withholding of promotion. (Medina, comply with to possess demotion, 2006) Coercive power rests in the ability of a manager to force an employee to comply with an order through the threat of punishment. Coercive power typically leads to short-term compliance, but in the long-run produces dysfunctional behavior. In times of economic crisis or threats to the survival of the organization at large, coercion may come to the forefront. 2 Coercive power may also materialize as organizations attempt to streamline their operations for maximum efficiency. If employees must be fired, those who fail to conform to the organizational goals for survival will be the most likely candidates for termination. The threat of termination for failure to comply, in turn, is coercive power. (http://www.referenceforbusiness.com/management) The Dalai Lama Referent Power. Referent power derives from employees' respect for a manager and their desire to identify with or emulate him or her. In referent power, the manager leads by example. Referent power rests heavily on trust. It often influences employees who may not be particularly aware that they are modeling their behavior on that of the manager and using what they presume he or she would do in such a situation as a point of reference. The concept of empowerment in large part rests on referent power. Referent power may take considerable time to develop and thus may not prove particularly effective in a workforce with a rapid turnover of personnel. (http://www.referenceforbusiness.com/management) This is the power or ability of people to attract others, to build strong interpersonal relationships, to persuade and build loyalty. This is based on the charisma and interpersonal skills of the power holder. This is an example of power within, but it can be used as power over. Where the world is becoming more democratic, relying less on positional power and more on consensus, this form of power becomes all the more significant, requiring a deeper focus on US President Barack Obama individual empowerment. (http://www.barefootguide.org/Chapter_3_Handouts) Expert Power. This refers to the ability to influence someone regarding a course of action because of specific knowledge, experience, or expertise. A person may be given the power to make decisions for others because he is an expert on the particular subject. (http://www.answers.com/topic/expert-power#ixzz1YH70J1kP) Expert power is the power people derive from their skills, knowledge and experience and the organization’s need for those skills and expertise. Unlike the others, this type of power is usually highly specific and limited to the particular area in which the expert is trained and qualified. Being well-informed and up-to-date with useful information is part of this power. This is also an example of power within but it can be used as power over Kim Atienza (positively or negatively) especially where expert skills and knowledge are perceived to be desperately needed. (http://www.barefootguide.org/Chapter_3_Handouts) 3 The Nature of Leadership Leadership is a process whereby an individual influences a group of individuals to achieve a common goal (Northouse,2007). In its essence, leadership in an organizational role involves (1) establishing a clear vision, (2) sharing that vision with others so that they will follow willingly, (3) providing the information, knowledge, and methods to realize that vision, and (4) coordinating and balancing the conflicting interests of all members or stakeholders. A leader comes to the forefront in case of crisis, and is able to think and act in creative ways in difficult situations. Unlike management, leadership flows from the core of a personality and cannot be taught, although it may be learned and may be enhanced through coaching or mentoring. (http://www.businessdictionary.com) Traits of Effective Leaders According to General Charles C. Krulak of the US Marine Corps, the following are the traits that leaders should possess to be effective: 1. Bearing 2. Courage 3. Decisiveness 4. Dependability 5. Endurance 6. Enthusiasm 7. Initiative 8. Integrity 9. Judgment 10. Knowledge 11. Loyalty 12. Sense of Justice 13. Tact 14. Unselfishness Leadership Skills Leadership skills are generally regarded as competencies that can be learned and developed for an effective leadership. The skills approach should be considered as an extension to leadership traits, since traits focus on the personality of a leader and to large extent, form the basis of people-skills. The three tasks that leaders are expected to perform are (a) create vision, (b) develop strategy, and (c) lead people. The duties of leaders are not derived on observations of what leaders do, but rather on what goal they are expected to achieve. Hence, the next natural step is to identify the skills required to accomplish the job of a leader. Technical skill is knowledge and ability of a person in any type of process or technique. Examples are the skills learned by accountants, engineers, word processing operators and toolmakers. Conceptual skill is the ability to think in terms of models, frameworks and broad relationship such as long-range plans. A small group of executives like president, vice president, chief executive officer holds at higher organizational levels and they create the organization's goals, overall strategy and operating policies. (http://www.reportbd.com/articles/134/1) 4 Human skill is the ability to effectively work with subordinates, peers, and bosses. The human skills have large extent and high complexity, one end is orator and communication skills while the other end is dealing with multi-party negotiations. (http://www.practical-management.com) The figure above illustrates the relationship between leadership roles and skills. It also emphasizes that technical skills are more important in the lower management ladder while conceptual skills are required more at a higher level. It should be noted that human skills are given equal importance at ALL levels of management, and perhaps explains why individuals with leadership traits are able to get into management ladder even if they lack in technical or conceptual skills. Behavioral Approaches to Leadership Styles Different leaders exhibit different patterns of behavior that is unique and different from other patterns. Such patterns reflect their leadership styles. In motivating people, leaders may either use positive leadership or negative leadership. The former emphasizes rewards which may be monetary or non-monetary. The latter emphasizes punishment in the form of reprimand, suspension, or dismissal. Sometimes, leaders alternately use positive and negative leadership depending on the characteristics of the individual subordinates. Leadership styles also vary according to how power is used. consist of (1) autocratic, (2) participative, and (3) free-rein. They Autocratic leadership, also known as authoritarian leadership, is a leadership style characterized by individual control over all decisions and little input from group members. Autocratic leaders typically make choices based on their own ideas and judgments and rarely accept advice from followers. Autocratic leadership involves absolute, authoritarian control over a group. ( http://psychology.about.com/od/leadership/f/autocratic-leadership) Participative leadership, also called democratic leadership is a style of leadership that involves all members of a team in identifying essential goals and developing procedures or strategies for reach those goals. From this perspective, participative leadership can be seen as a leadership style that relies heavily on the leader 5 functioning as a facilitator rather than simply issuing orders or making assignments. This type of involved leadership style can be utilized in business settings, volunteer organizations and even in the function of the home. (http://www.wisegeek.com/what-is-participativeleadership.htm) Free rein leadership, also known as delegative leadership and Laissez-faire, is a style of leadership wherein there is an indirect supervision of subordinates. It is a form of management supervision that allows others to function on their own without extensive direct supervision. People are allowed to prove themselves based upon accomplishments rather than meeting specific supervisory criteria. Contingency Approaches to Leadership Styles The contingency approach to management is based on the idea that there is no one best way to manage and that to be effective, planning, organizing, leading, and controlling must be tailored to the particular circumstances faced by an organization. Hersey and Blanchard’s Situational Theory is an approach that focuses a great deal of attention on the characteristics of followers in determining appropriate leadership behavior. Fiedler’s Contingency Theory. The starting point for this theory is the extent to which the leader’s style is task-oriented or relationship-oriented (people-oriented). 6 Path-Goal Theory. This theory suggests a fourfold classification of leader behaviors. These classifications are the types of leader behavior the leader can adopt and include supportive, directive, achievement-oriented, and participative styles. Supportive leadership involves leader behavior that shows concern for subordinates’ well-being and personal needs. Directive leadership occurs when the leader tells subordinates exactly what they are supposed to do. Participative leadership means that the leader consults with his or her subordinates about decisions. Achievement-oriented leadership occurs when the leader sets clear and challenging goals for subordinates. (Daft, 2008) 7