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    Fundamentals Of Leadership

    2

    Introduction

    Research focuses on two key leadershipissues:

    1. Why some organizational members

    become leaders while others do not2. Why some leaders are successful while

    others are not

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    Managers Versus Leaders Managers

    Persons whose influence on others is limited tothe appointed managerial authority of theirpositions to reward and punish.

    Persons with managerial and personal powerwho can influence others to perform actionsbeyond those that could be dictated by thosepersons formal (position) authority alone.

    Not all leaders are managers, nor are all managers leaders.

    4

    What is Leadership?

    Leadership the process of influencing others tofacilitate the attainment of organizationallyrelevant goals

    One does not have to be in a formal leadershipposition in order to exert leadership behavior

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    Trait Theories Of Leadership

    Assumes that a finite number of individualtraits of effective leaders can be found

    intelligence

    personality

    physical characteristics

    Relies on research that relates various traitsto certain success criteria

    Research findings are contradictory

    6

    Traits Associated With Leadership

    Effectiveness:

    Ability to enlist cooperation

    Cooperativeness

    Popularity and prestige

    Sociability (interpersonal skills)

    Social participation

    Tact, diplomacy

    Adaptability

    Alertness

    Creativity

    Personal integrity

    Self-confidence

    Emotional balance and control

    Independence (nonconformity)

    Judgment

    Decisiveness

    Knowledge

    Fluency of speech

    AbilitiesPersonalityIntelligence

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    Six Traits That Differentiate

    Leaders from Nonleaders1. Drive

    2. Desire to lead

    3. Honesty and integrity

    4. Self-confidence

    5. Intelligence

    6. Job-relevant knowledge

    8

    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 andeffective leaders from ineffective leaders

    have failed.

    Attempts to identify traits consistently

    associated with leadership have been more

    successful.

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    Shortcomings of the Trait Theory of

    Leadership The list of potentially important traits is endless

    Trait test scores are not consistently predictive of

    leader effectiveness

    Patterns of effective behavior depend largely on the

    situation (environment)

    The trait approach fails to provide insight into what

    the effective leader does on the job

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    The Nature of Leadership

    Leadership is the process of influencing

    people to direct their efforts toward particular

    goals.

    Management

    of Change

    PROCESS

    of Leading

    People

    in Organizational

    CONTEXT

    Task

    CONTENT

    External

    Environment

    Goals

    Leadership

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    The Nature of Leadership

    Leadership characteristics: are those possessed by

    effective leaders and includedrive, originality,

    persistence, and tolerance of stress.

    Personal characteristics: are personal attributes often

    possessed by effective leaders and include superior

    mental ability, emotional maturity, andproblems-

    solving (conceptualize & analytical)skills.

    12

    Some Personal Characteristics(Related to managerial effectiveness)

    Superior Intelligence: With IQ range from 115-130.

    Emotional Maturity (EQ):

    Self-confidence and capable of directing subordinates ina calm, conscientious manner.

    Have a sense of purpose and meaning in life. Able to cope with the demands and stress of both their

    business and personal lives.

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    Some Personal Characteristics(Related to managerial effectiveness) (cont)

    Motivation Drive:

    Motivated by the opportunity to achieve the chance for

    power or control over a situation and by the need to

    self-actualize.

    Problem-solving skills:

    See a problem as both a challenge (Risk) and an

    opportunity to prove their managerial abilities (with

    drive and confidence.)

    14

    Some Personal Characteristics(Related to managerial effectiveness) (cont.)

    Managerial skills:

    1) Technical skills: help an individual determinehow

    things work.

    2) Human Skills: help an individual interact with

    other people.

    3) Conceptual skills: help a manger understand how

    all parts of the organization or department fit

    together.

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    LMHLowerManager

    MMMMiddleManager

    HMLSeniorManager

    ConceptualSkills

    Human SkillsTechnical

    skills

    SkillsNeededat Different Hierarchical

    Levels:

    16

    Summary of Leadership & Characteristics

    Goalorientation

    Energy

    Ability to helppeople grow

    A desire to win

    Willingness toaccept challenge

    Administrativeability

    Interpersonalskills

    Tactand diplomacy Ability to enlistcooperation

    Social participation

    Cooperativeness

    Attractiveness

    Need to excelorachieve

    Initiative

    Task orientation

    Drive forresponsibility

    Responsibility inpursuit of objectives

    GallupOrganizations

    Leadership Talents

    SocialCharacteristics

    (Stogdills)

    Task-RelatedCharacteristics

    (Stogdills)

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    Nature of Organizational Personnel

    The opinions leaders have about their peopleexplain why leaders act as they do.

    Douglas McGregor has provided management with

    a set of assumptions: Theory X and Theory Y.

    18

    Theory X and Theory Y

    Theory X: holds that people are basically

    lazy & it is necessary to use coercion andthreats of punishment to get them to work.

    Assumptions:People, by nature, dislike & avoid work

    Have little ambition, shun responsibility, & like

    to be directed.

    Want security.

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    Theory X and Theory Y

    Theory Y: holds that, under the right conditions, peoplewill work.

    Assumptions:Natural to use mental effortat work.

    If committed to objectives, people will exercise self-

    direction and self-control.

    Commitment is linked to therewardsfor their

    achievement.

    People do seek & accept responsibility, under proper work

    environment.People have a wide range of capabilities in problem

    solving.

    Peoples intellectualpotentials are only partially utilized.

    20

    Continuum of Leadership Behavior

    Task

    -Oriented

    Authoritarian

    On this end,

    subordinates

    input is small or

    not wanted

    Paternalistic Participative

    People

    -Oriented

    Laissez-Faire

    On this end,

    subordinates

    input is large

    and is expected

    Distinguish among four styles of leadership behavior-Authoritarian, paternalistic, participative, & laissez-faire.

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    Authoritarian Leadership: tends to beheavily

    work centered, with little attention to the human

    element. View workers as factors of production.

    Paternalistic Leadership: tends to be heavily

    work centeredbut hassome consideration for thepersonnelas well.

    Work hard and Ill take care of you.

    [Asian Value?]

    Leadership Behavior

    22

    Participative Leadership: have highconcern

    for people at work.

    -Delegating authority, sharing objectives and

    getting feedback from subordinates. [Westernvalue? Management of complexity?]

    Laissez-faire Leadership: is characterized bya

    lack of concern for either the people of the work.

    Non-interference.Come close to abdicatingthe leadership position & responsibility.

    [Not for the competitive business world?]

    Leadership Behavior (cont.)

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    Leader-Subordinate Interactions

    Leader

    Subordinate Subordinate Subordinate

    Leader

    Subordinate Subordinate Subordinate

    Authoritarian Leadership

    Paternalistic Leadership

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    Leader

    Subordinate Subordinate Subordinate

    Leader

    Subordinate Subordinate Subordinate

    Laissez-Faire

    Leadership

    Participative LeadershipContinual flow of info.

    from leader to subordinate

    Continual exch. of info.

    between leader and

    subordinate and/or between

    subordinates themselves.[Some degree of self-organizing

    with guiding protocols?]

    Occasional exch. of

    info between leader

    and subordinate

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    Basic Rules used by Leaders:

    1. Be decisive

    2. Do not promise what you cannot deliver

    3. Praise people in front of others for a job well

    done andreprimand them in private whenthey have made a mistake

    4. When possible, promote from within.

    Leadership Behavior(cont.)

    26

    Leadership Dimensions

    A Leadership Grid

    (Entail a concern for people and a concern for work )

    High People

    -Low Work

    (Eager to help or

    please, Sympathetic)

    High People -

    High Work

    (To develop highteamwork, for

    challenging goals)

    Low Work-

    Low People(Laissez-faire,

    Hand-off)

    High Work

    -Low People(To exercise control and

    have strict compliance)

    Low HighConcern for Work

    Low

    High

    Co

    nce

    rn

    forP

    eople

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    Contingency Leadership StylesApplied to a Leadership Grid

    Manager of a

    Successful Sales

    Group(Knowing that the work

    are in good hands, self-

    organizing)

    President of a

    Large Corporation(Concern for long-range

    objectives & plan, & in

    need of support of key core

    teams)

    Manager of an

    R&D Lab

    (R&D workers are self-motivated & derive

    intrinsic satisfaction

    from work)

    Foreman on an

    Assembly Line

    (To ensure workers keepup with production

    target)

    Low HighConcern for Work

    Low

    High

    Co n

    ce

    rnf o

    rPeo

    ple

    28

    Contingency Leadership Models

    What specific style of leadership is best in

    which type of situation? Matching styles with environmental

    demands (e.g. level of risk & uncertainty,degree of control needed..)

    Contingency Approaches:1. Fiedlers Contingency Model

    2. The Managerial Grid

    3. Charismatic and Transformational Leadership

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    Fiedlers Contingency Model

    holds that leader effectiveness is

    determined by leadership style and

    situational variables.

    30

    Situational Variables in Fiedlers Model

    Leader-member relations: are

    determined by how well the two groupsget along.

    Task structure: is the degree to which theleaders job is laid out in advance.

    Leader position power: is the authorityvested in a leaders position.

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    The Managerial Grid-Addresses concern for productionand Concern

    for people.

    (1, 9)Country Club Manager

    (9,9)Team Builder

    (5,5)Organization Man

    (1,1)Do-Nothing Manager

    (9,1)Production Pusher

    1

    Low Concern for Production9

    High

    High

    9

    1

    Low

    Con

    cernforPeopl e

    32

    The Managerial Grid

    (1, 9) Country ClubManagerThoughtful attention to needs of

    people for satisfying

    relationships leads to a

    comfortable, friendly

    organization atmosphere & work

    tempo.

    Team Builder- (9,9)Work accomplishment is from

    committed people;

    interdependence through a

    common stake in organization

    purpose leads to relationships

    of trust and respect.

    (5,5)

    Organization ManAdequate organization performance is

    possible through balancing the

    necessity to get out work while

    maintaining morale of people at

    satisfactory level.

    (1,1) Do-Nothing ManagerExertion of minimum effort to

    get required work done is

    appropriate to sustain

    organization membership.

    Production Pusher -(9,1)Efficiency in operations results

    from arranging conditions of work

    in such a way that human elements

    interfere to a minimum degree.

    1

    LowConcern for Production

    9

    High

    High

    9

    1

    Low

    Concernf

    orPe

    ople

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    Transformational vs Transactional Leadership

    Transformational leaders are visionary agents

    who motivate people todo things differently.

    Ex. Lou Gerstner, head of IBM, has used his

    transformational leadership skills to bring the

    company back to its previous prominence.

    Transactional leaders exchangerewards foreffort and performance.

    34

    Transformational vs Transactional Leadership

    (A systems engineer?)(An innovator?)

    Relies on past knowledge to deal withfuture problems.

    A lifelong learner.

    Watches for mistakes/deviations fromrules & regulations & then takes action.

    Leads by example.

    Avoids complexity and uncertainty bydelegating responsibility to subordinates.

    Able to deal with complexity,ambiguity, & uncertainty.

    Tends to support status quo.A courageous change agent.

    Carefully spells out rewards foraccomplishing objectives.

    Give employees individual attention,coaching, and advising.

    Interested in results rather than problem-solving process.

    Promotes rationality and carefulproblem-solving.

    Lets everyone know the objectives.

    (e.g. MBO)

    Communicates high expectationsand expresses purposes simply.

    Uses reward and punishment systems togenerate compliance.

    Instill pride, respect, & trust inemployees.

    Set goals and encourages employees topursue them.

    Provides a vision & a sense ofmission.

    Transactional LeaderTransformational Leader

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    The Emerging Leadership Challenges

    As the economy changes, so do the needs forleadership skills.

    Hiring qualified people and developing them throughtraining are constant challenges.

    To meet the shortage of leaders, many firms aretraining their managers to develop leaders from theirwork groups.

    The new approach to leadership is to develop

    leaders instead of followers. (e.g. Acers internal executive programme to train

    & develop many future general managers)

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    The Emerging Leadership Challenges (cont) Abilities and skills needed in the future

    leadership include being able to:

    Create a shared visionfor everyone in thefirm,

    Ensure customer satisfaction,

    Live the valuesthat are critical to thecompany,

    Build internal teamworkand externalpartnerships,

    Think globally, appreciate culturaldiversity,

    Develop and empower people,

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    The Emerging Leadership Challenges (cont)

    Abilities and skills needed in the futureleadership include being able to:

    Be able to anticipate opportunity (& risk),

    Learn how to achieve competitiveadvantage,

    Embrace change, share leadership,demonstrate personal mastery of the job,

    Show technological savvy, and Encourage constructive challenge.

    38

    Key Terms in the session

    Leadership

    Leadership characteristics

    Personal characteristics

    Trait theory

    Technical skills

    Human skills

    Conceptual skills

    Theory X

    Theory Y

    Authoritarian leadership

    Paternalistic leadership

    Participative leadership

    Laissez-faire leadership

    Leadership dimensions

    Fiedlers contingencymodel

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    Key Terms in the session (contd.) Least preferred coworker scale

    Leader-member relations

    Task structure

    Leader position power

    Managerial grid

    1,1, Managerial style

    9,1 Managerial style

    1,9 Managerial style

    5,5 Managerial style

    9,9 Managerial style

    Transformationalleader

    Transactional leader

    40

    Questions:1.Describe the Leadership and Personal Characteristics Related to

    Managerial Effectiveness--Trait Theory, Superior Intelligence,

    Emotional Maturity, Motivation Drive, Problem-Solving Skills,

    Managerial Skills, and Leadership Skills

    2. Compare and Contrast Theory X and Theory Y

    3.Distinguish Among Four Styles of LeadershipBehavior

    Authoritarian, Paternalistic, Participative, and Laissez-Faire

    4. Explain the Concept of Self-Leaders and theBasic Rules of

    Behavior

    5. Describe the Two Major Dimensions of Leadership

    -Concern for People and Concern for Work

    6. Distinguish among the Contingency Leadership Approaches-

    Fiedlers

    Contingency Model, the Managerial Grid, & Transformational

    Leadership