Leadership and StaffingBusiness Policy

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Please note that these slides are not intended as a substitute

to reading the recommended text for this course.

Difference - leadership /management

Theory behind leadership

Importance of leadership

Characteristics / Barriers to effective leadership

Staffing the company correctly

Human Resource Palnning

Chapters 11 & 14: Johnson, Scholes & Whittington

Objectives

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The Theories of Leadership

“A leader takes people where they want to go. A great leader takes people where they don’t necessarily want to go, but ought to be.”

- Rosalynn Carter

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What Is Leadership?

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Leadership

The ability to influence a

group toward the

achievement of goals

Management

Use of authority inherent in

designated formal rank to

obtain compliance from

organizational members

Why is understanding the history of leadership important?

1. Understanding leadership of an era to understand how and why events and societal development happened.

2. We can look at the past based on culture and the structure of a society.

– Seek to learn from the lessons of the past.

– Apply what is most applicable.

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When Did Leadership Begin?

Leadership has been studied since the earliest civilizations.

– Humans have ALWAYS organized themselves with some type of structure.

• Mayans & Aztecs

• Great Wall of China

• Moses and Hebrews

• Ancient Pygmy societies.

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How Did Leadership Begin?

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Having an effective leader was critical for survival for early civilizations.

– Tribes and nomadic groups.

Qualifications based on skilled, strength, size, agility, knowledge.

– Usually male.

– Existed since the beginning of mankind.

What are the three historical types of leadership?

Leader-centric.– more of a fixture-

kings and queens.– they were born.– blood lines do not

always make good leaders.

– men were primary in control of government, business, and family units.

– Citizens simply followed directions caused segregation of social classes.

What are the three historical types of leadership?

Follower-centric.– Because of technology,

more workers needed.– Followers wanted to regain

control.– By late 1800s, ideas to

increase worker productivity and boost revenue.

– Unwilling to give up total control and give power to their followers.

– Leaders discovered that increasing the responsibility of workers did in fact increase productivity.

– 1920s-when supervisors gave personal attention to workers, satisfaction increased.

Leadership vs. Management—A Difference?

Many distinctions between managers and leaders.

“Management” = efficiency, process, regulations

“Leadership” = risk, creativity, vision

Leadership: “Doing the right things” vs. Management: “Doing things right.”

Leaders can be managers, and managers can become good leaders.

Shepherds and sheepherders.

Managers vs. Leaders

Managers

– Focus on things

– Do things right

– Plan

– Organize

– Direct

– Control

– Follows the rules

Leaders

– Focus on people

– Do the right things

– Inspire

– Influence

– Motivate

– Build

– Shape entities

Planning

Manager

– Planning

– Budgeting

– Sets targets

– Establishes detailed steps

– Allocates resources

Leader

– Devises strategy

– Sets direction

– Creates vision

Organizing

Manager

– Creates structure

– Job descriptions

– Staffing

– Hierarchy

– Delegates

– Training

Leader

– Gets people on board for strategy

– Communication

– Networks

Directing Work

Manager

– Solves problems

– Negotiates

– Brings to consensus

Leader

– Empowers people

– Cheerleader

Controlling

Manager

– Implements control systems

– Performance measures

– Identifies variances

– Fixes variances

Leader

– Motivate

– Inspire

– Gives sense of accomplishment

Leadership vs Management

Management seeks stability & predictability

– (order)

Leadership seeks improvement through change

– (disorder) Kotter (1990)

Leadership & Power

Power is influence derived from being seen as likable & knowledgeable

– Referent

– Expert

Power derivedfrom office or rank in an organization

– Legitimate

– Reward

– Coercive

Five Bases of Power

REFERENT POWER – Based on followers’ identification and liking for the leader.

– ex. A schoolteacher who is adored by her students has referent power.

EXPERT POWER – Based on followers’ perceptions of the leader’s competence.

– ex. A tour guide who is knowledgeable about a foreign country has expert power.

LEGITIMATE POWER –Associated with having status or formal job authority.

– ex. A judge who administers sentences in the courtroom exhibits legitimate power

REWARD POWER – Derived from having the capacity to provide rewards to others.

– ex. A supervisor who gives rewards to employees who work hard is using reward power.

COERCIVE POWER – Derived from having the capacity to penalize or punish others.

– ex. A coach who sits players on the bench for being late to practice is using coercive power.

What is the evolutionary process of leadership theories?

Great man theories were the first attempt in studying leadership.

– Based on the idea that leaders are ‘born’ with innate qualities, destined to lead

– Term 'man' was intentional -concept was primarily male, military and Western

Additional approaches have been developed— traittheories, behavioral theories, and modern-day contingencytheories.

Emphasis today is that leadership styles should match the situation at hand, which is a contingency approach.

The Development of Leadership Theory

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Period Approach Core Theme

Up to late 1940s Trait approach Leadership ability is innate

Late 1940s to late 1960s Style approach Leadership effectiveness is to

do with how the leader

behaves

Late 1960s to early 1980s Contingency approach It all depends; effective

leadership is affected by the

situation

Since early 1980s Now Leadership approach Leaders transform the way

people feel about themselves

Trait Theories - ‘Leaders are born, not made’

Early trait theories identified:

– Physical characteristics (height, appearance)

– Personality characteristics (extrovert)

– Skills and abilities (intelligence)

– Social factors (interpersonal skills)

Traits are distinctive

characteristics that distinguish

leaders from non-leaders.

No universal traits found that predict leadership - in all situations

Unclear evidence of the cause and effect of relationship of leadership and traits

Traits are hard to measure. For example, how do we measure honesty or integrity?

Trait Theories - Limitations

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The Style Approach

Concern for task – the extent to which the leader emphasises the task objectives

Or

Concern for people – the extent to which the leader emphasises the needs, interests etc of the group

Directive leadership – the extent to which the leader makes all the decisions regarding group activity

Or

Participative leadership – the extent to which the leader shares decision-making concerning group activity

Enforcer

Penalties / Punishment

Dictatorial Style

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When to use Autocratic Leadership Style?

When quick decisions are needed

No need for others input

Team agreement is not necessary

However:– Employees cannot question

decisions

– Little opportunity to give suggestions

Democratic Style

Seeks input from key people on important decisions

Listens carefully to concerns

Collective decision strengthened by buy-in, commitment across organization

Uninvolved - “leave them alone”

Sees main role as passer of information

Lets others make decisions

Basically abdicates responsibility for team or unit

Theory “L”: Laissez-faire leader

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Leadership Styles

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Autocratic

DemocraticLaissez-

faire

‘Perfect’ Leadership

28‘Perfect’ Leadership

Theory “X”: Autocratic leader

Lacks flexibility

Controlling and demanding

“carrot and stick” approach

Focused solely on productivity

Theory “Y”: Benevolent leader

Very people oriented; encouraging

Organizes around people

Can be paternalistic

“Country club” atmosphere: non-competitive

Likert – Supervisory Styles

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Managerial Grid

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What are the major components of the Contingency Theories?

Contingency theory identifies:

– Key situational factors,

– Specifies how they interact, and

– Determines best leadership approach.

– This is called situational leadership.

Contingency Theories continued

Leadership is composed of both a directive and supportive dimension.

Coaching and delegating were added to provide four styles.

Contingency Theories

All Consider the Situation

– Fiedler Contingency Model

– Path Goal Theory

Assumptions underlying the different models:

– Fiedler: Leader’s style is fixed.

– Other’s: Leader’s style can and should be changed.

Situational Theories

Fiedler’s Contingency Model

– Leader style is either task-oriented or relationship-oriented

– Style depends on three situational factors

• leader-member relations

• task structure

• position power

– Key Assumption

• Leader must fit situation; options to accomplish this:

• Select leader to fit situation

• Change situation to fit leader

Contingency Theories continued

Path-Goal Theory developed by Evans & House.– Adapting leadership to

the situation.– Leader can impact

performance of others by offering paths to desired goals.

– Rewards contingent on increased performance.

– Leader must help followers attain goals and reduce roadblocks to success

Path Goal Situations

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Leaders who are:

– Honest

– Competent

– Forward – Looking

– Inspiring

……….. Post 2008 economic collapse

– Stability

– Hope

Followers four basis needs

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Transactional and Transformational Leadership

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• Contingent Reward

• Management by

Exception (active)

• Management by

Exception (passive)

• Laissez-Faire

• Idealized Influence

• Inspirational Motivation

• Intellectual Stimulation

• Individual Consideration

Transactional Leaders

Leaders who guide or motivate

their followers in the direction of

established goals by clarifying role

and task requirements

Transformational Leaders

Leaders who provide the four “I’s”

(individualized consideration,

inspirational motivation, idealized

influence, and intellectual

stimulation)

Transformational leadership motivates followers to:

– do more than is expected.

– see raised value in tasks.

– put group’s common cause in front of individual needs.

Transformational

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Characteristics of Transformational Leaders

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Idealized Influence: Provides vision and sense of

mission, instills pride, gains respect and trust

Inspiration: Communicates high expectations, uses

symbols to focus efforts, expresses important purposes in

simple ways

Intellectual Stimulation: Promotes intelligence,

rationality, and careful problem solving

Individualized Consideration: Gives personal attention,

treats each employee individually, coaches, advises

Kouzes and Posner: 5 Practices of Exemplary Leadership

Model the Way

Inspire a Shared Vision

Challenge the Process

Enable Others to Act

Encourage the Heart

5 Practices of Exemplary Leadership

Diminishing or threatening status.

Thoughtlessly giving rewards.

Reducing certainty.

Sitting in your ivory tower all day.

Being unfair.

5 mortal leadership sins

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Hiring new people with new skills; firing people with inappropriate skills; training existing employees to learn new skills

Staffing follows strategy:

– Training & Development

• Higher productivity

• Reduction in waste

• Overall cost savings

– Matching manager to strategy

• Executive type

• Dynamic industry expert

• Analytical portfolio manager

• Cautious profit planner

• Turnaround specialist

• Professional liquidator

Staffing for Strategy

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Eliminate unnecessary work

Contract out work for cost savings

Plan for long-run efficiencies

Communicate reasons for action

Invest in remaining employees

Develop value-added jobs

Guidelines for downsizing

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Strategy first

– Structure

• Staffing

What is the impact of strategy

– Responsibilities

– Positional changes

– Team Changes / Challenges

Staffing follows Strategy

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Advantages– Know the people,

processes, culture technology

– Know to associates– Established

relationships

Disadvantages– Relationships – past

commitment, fear of making hard decisions

– Less adaptable to major strategic change

Advantages

– Belief in the new strategy

– Not constrained my internal relationships / commitments

Disadvantages

– Cost of recruitment

– Degree of uncertainty

– Disgruntled insiders

Internal / External Executives

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Need for and availability of personnel to meet company objectives.

Manpower planning / Demand forecast

– Competencies

– Numbers

– Location

Change due to PESTEL

Human Resource Planning

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Workforce Succession Planning (WFSP)

– Need to know

• Characteristics of employees

• Distribution of employees by position

• Employee performance

• Time, resources, In Demand, Workplace Dynamics, Job Classification

Held on Human Resource Information System (HRIS)

Human Resource Planning

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1. Job description – typically see in an ad

2. Job Analysis:

1. Job Description – used to assist candidate decide if they are suitable (used in the contract, set priorities)

2. Person Specification – what the organization will use to shortlist (Attainments, physical, Intelligence)

Human Resource Planning

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Whose performance is being assessed?

How is performance measured? – skill acquisition

How is performance rewarded? – pay, promotion. Disadvantages of incentives:

• Operational efficiencies

• Quality of work

• Quality of working life

• Employee may view the goalposts are constantly moving

Performance & Rewards

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