LEADERSHIP & MANAGEMENT

HIGHER LEVEL CONTENT (HL)

TRAIT THEORY

• “She’s a born leader” encapsulates the ideas behind trait theory.

• Trait theory argues that some individuals are born with the characteristics that make then natural leaders.

TRAIT THEORY

Trait theory suggests that leaders are different from other groups of individuals in that they consistently demonstrate the following characteristics: IntelligenceSelf-ConfidenceDetermination Integrity Sociability.

TRAIT THEORY

• In the past height and fluency in speech were often found to be common traits, as were flat feet.

• Critics of trait theory believe that it fails to take into account the life experiences that can affect leadership.

FRED E. FIEDLER & CONTINGENCY THEORY

• Fielder (1967) proposed the contingency theory of leadership and argued that effective leadership depends upon the situation that the leader find themselves in.

• Fielder studied leaders in a variety of settings and made observations about which styles of leadership worked and which did not, for a given situation.

FRED E FIEDLDER & CONTINGENCY THEORY

• According to contingency theory, leadership is predominately either relationship driven or task driven.

• A task oriented leader will focus on getting the job done, while a relationship oriented leader will focus on interpersonal relationships.

• Fielder measured the leadership style that was adopted using his “least preferred co-worker scale” (LPC) scale.

FRED E FIEDLDER & CONTINGENCY THEORY

The Least Preferred Co-Worker Scale (LPC Scale)

Unfriendly 1 2 3 4 5 6 7 8 Friendly Uncooperative 1 2 3 4 5 6 7 8 CooperativeHostile 1 2 3 5 6 7 8 SupportiveGuarded 1 2 3 4 5 6 7 8 Open

If a leader’s score is relatively high the person is likely to be relationship oriented. A low score suggests a task-oriented leader.

FRED E FIEDLDER & CONTINGENCY THEORY

A Crisis Situation: A Task Oriented Leader

Examples• In a crisis situation the task-oriented leader gets

things done and is therefore more likely to be effective.

• Relations in the team are subordinate to the task since time cannot be wasted dealing with relationships if there is a very real danger.

• Some workers may prefer to be given direct instructions and a task oriented leader provides clarity and structure for them.

FRED E FIEDLDER & CONTINGENCY THEORY

A Crisis Situation: A Task Oriented Leader

• It may be the case that the culture of an organization demands a highly structured and disciplined working environment.

• Subordinates may also be happy to work for a task oriented leader if that person is able to secure extra resources for team members and gain them a pay increase and promotion or simply job security.

• The task oriented leader may therefore prove more popular than the relationship oriented leader.

FRED E FIEDLDER & CONTINGENCY THEORY

Position Power is Weak: A Relationship Oriented Leader

• The relationship-oriented leader may be effective when “position power” is weak.

• There is no obvious hierarchy giving some people power – (eg: when all the team members are similarly qualified)

• Relations in the team are strong.• It may also work if the way things get done does not really

matter.• Team members can achieve good results but in different

ways.• If the leader tried to impose their style and structure they

would be unlikely to be effective.

RENSIS LIKERT’S FOUR MANAGEMENT STYLES

• Likert argued that to be effective an organization should link together highly effective work groups in the organization.

• Likert identified four management styles: The Exploitive-Authoritative System The Benevolent-Authoritative System The Consultative System The Participative-Group System

RENSIS LIKERT’S FOUR MANAGEMENT STYLESThe Exploitive-Authoritative System

• Managers impose directives with little communication and teamwork.

• Threats are often used as motivation.• Managers make all key decisions.

RENSIS LIKERT’S FOUR MANAGEMENT STYLESThe Benevolent Authoritative System• As they believe they know best, managers

make decisions with the best intentions for subordinates.

• Motivation is mainly by rewards, but there may be punishment too.

• Communication and teamwork is likely to be minimal.

RENSIS LIKERT’S FOUR MANAGEMENT STYLESThe Consultative System

• Managers have substantial trust in their subordinates and therefore involve them in decision making.

• There is a reasonable amount of teamwork and communication.

RENSIS LIKERT’S FOUR MANAGEMENT STYLESThe Participative-Group System

• Managers have total confidence in employees and motivation is driven by rewards and shared goals of the team or organization.

• All employees feel responsibility and empathy for the organizations goals and there is substantial communication and teamwork.

• The environment of trust, respect and teamwork cultivates commitment and loyalty to the organization.

ROBERT BLAKE AND JANE MOUTON

The Managerial Grid • Blake and Mouton proposed the idea of the

managerial grid, which describes five management styles emerging from the relative concerns for people or production.

ROBERT BLAKE & JANE MOUTON-MANAGERIAL GRID

ROBERT BLAKE AND JANE MOUTONThe Managerial Grid

Impoverished Style (1,1)• Managers have low concern for people and

production and just want to avoid mistakes.• These managers do enough to keep their jobs.• They contribute little to their teams.• They are likely to get enjoyment in life from

activities outside of work and from the idea that they will stay in the same position for quite some time.

ROBERT BLAKE AND JANE MOUTON

The Managerial Grid The Country Club Style (1, 9) • This management style combines a high concern

for people with a low concern for production. • Attention is paid to building relationships with

employees in the hope that this will get them to contribute to the team.

• The working environment is thus friendly but may not be very productive if subordinates try to take advantage of the managers good nature.

ROBERT BLAKE AND JANE MOUTON

The Managerial Grid The Produce or Perish Style (9,1)• Managers place production as the main

priority with little concern for people. • The needs of subordinates are peripheral to

the needs of the organization.• The employers provide money and expect

performance in return-sanctions are likely to result if the employee does not perform.

ROBERT BLAKE AND JANE MOUTON

The Managerial Grid The Middle-of-the-Road Style (5,5)• Managers hope to achieve creditable results by

balancing some concern for both production and people.

The Team Style• Managers give high priority to both people and

production.• Managers keep the team focused on the task but also

nurture good relations.

ROBERT TANNEBAUM & WALTER SCHMIDT: A LEADERSHIP CONTINUUM

Use of Authority >>>>>>>>>>> Freedom for Subordinates

Tells > Sells > Consults > Participates

ROBERT TANNEBAUM & WALTER SCHMIDT: A LEADERSHIP CONTINUUM

• In a similar way, Robert Tannenbaum and Walter Schmidt (1973) argued that leadership behaviour can be expressed along a continuum ranging from boss-centered behaviour to subordinate centered behaviour.

• The leader must consider the forces in the manager, the subordinate and the urgency of the task when choosing the most appropriate style.

• Eg: A Manager who trusts the organizations highly skilled employees, is more likely to be relationship centered than a manager where the opposite situation exists.

HENRI FAYOL• Fayol’s Administration Industrielle et Generale (1916) is

largely based on his experience as a manager at a large French coal mine.

• Fayol outlined five functions of management. Planning: setting a strategy for achieving objectives. Organizing: preparing resources to achieve given objectives Commanding: instructing individuals to perform certain

duties. Coordinating: bringing together the various resources to

achieve objectives. Controlling: having power over a given situation to achieve

objectives.

HENRI FAYOL• Fayol argued that these five

functions were universal and could therefore be applied to any organization.

CHARLES HANDY & ORGANIZATIONAL PROBLEMS

• Handy (1976) likens managers to General Practicioners (GPs) in that they are the first people to address a problem.

• They must first decide whether it is a problem, and if so, what sort of problem.

• Managers need to take the following steps in search for solutions:

CHARLES HANDY & ORGANIZATIONAL PROBLEMS Steps in Searching for Solutions

• 1. Identify the symptoms• 2. Diagnose the disease (the cause or the

causes of the problem)• 3. Decide how it might be dealt with –

decide on strategies for health.• 4. Start the treatment (start to resolve the

problem)

CHARLES HANDY & ORGANIZATIONAL PROBLEMS

• Like GPs, managers need expert assistance or a second opinion at any of the above stages, but each of these stages lies with the local GP or manager.

• Continuing the GP/manager analogy, problems come up when:

The symptoms rather than the disease itself are treated.

The prescription is the same whatever the disease.

CHARLES HANDY & ORGANIZATIONAL PROBLEMS

The skill of the GP and manager is to: Correctly assess and interpret information and

symptoms Make the correct diagnosis (using specialist

inputs where necessary) Take the right directions. Take the right course of actions to remedy the

problems.

PETER DRUCKER

• Drucker argued that the customer comes first, so a business should try to create a customer.

• He believed that internal structure controls, organization and procedures keep an organization on track but customers ultimately hold top rank because if they are not satisfied the business will not last very long.

8 Business Areas for Objectives & Performance Indicators: PETER

DRUCKERArea/Performance Indicator Example

Market Standing Market ShareInnovation New products releasedProductivity Output per workerPhysical and Financial Resources Capital Employed & Adoption of

new technology Profitability Net profit margin Manager’s performance & development Proportion of revenues spent on

management training Worker’s performance and attitude Staff turnover or attendancePublic Responsibility Code of ethical conduct.

7 Tasks for Managers PETER DRUCKER

TASK EXAMPLE

Manage by Objectives Increase sales by 5% per annum

Take and Encourage Risk Taking New product developments

Make Strategic Decisions Globalization

Build Teams Reward the team rather than the individual

Communicate & Motivate Regular communication on key issues

See the business as a whole Understand the impact of decisions on the whole business

Relate the business to the totalEnvironment

Understanding the impact of internal and external changes.