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    Leadership

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    What is Leadership Leadership is a process by which an executive can direct, guide

    and influence the behavior and work of others towardsaccomplishment of specific goals in a given situation. Leadershipis the ability of a manager to induce the subordinates to work

    with confidence and zeal. According to Keith Davis, Leadership is the ability to persuade

    others to seek defined objectives enthusiastically. It is thehuman factor which binds a group together and motivates ittowards goals.

    Features of Leadership It is a inter- personal process in which a manager is into

    influencing and guiding workers towards attainment of goals. It denotes a few qualities to be present in a person which

    includes intelligence, maturity and personality. A leader is involved in shaping and moulding the behavior of the

    group towards accomplishment of organizational goals. Leadership is situation bound. There is no best style of

    leadership. It all depends upon tackling with the situations.

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    Importance Leadership is an important function of management which

    helps to maximize efficiency and to achieve organizational

    goals. The following points justify the importance ofleadership in a concern.

    Initiates action- Leader is a person who starts the work bycommunicating the policies and plans to the subordinatesfrom where the work actually starts.

    Motivation- A leader proves to be playing an incentive rolein the concerns working. He motivates the employees witheconomic and non-economic rewards and thereby gets the

    work from the subordinates.

    Providing guidance- A leader has to not only supervise butalso play a guiding role for the subordinates. Guidance heremeans instructing the subordinates the way they have toperform their work effectively and efficiently.Contd..,

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    Creating confidence- Confidence is an important factor which can beachieved through expressing the work efforts to the subordinates,explaining them clearly their role and giving them guidelines to achievethe goals effectively. It is also important to hear the employees withregards to their complaints and problems.

    Building morale- Morale denotes willing co-operation of theemployees towards their work and getting them into confidence andwinning their trust. A leader can be a morale booster by achieving fullco-operation so that they perform with best of their abilities as theywork to achieve goals.

    Builds work environment- Management is getting things done frompeople. An efficient work environment helps in sound and stablegrowth. Therefore, human relations should be kept into mind by aleader. He should have personal contacts with employees and shouldlisten to their problems and solve them. He should treat employees onhumanitarian terms.

    Co-ordination- Co-ordination can be achieved through reconcilingpersonal interests with organizational goals. This synchronization canbe achieved through proper and effective co-ordination which should beprimary motive of a leader.

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    Role of a Leader Required at all levels

    Representative of the organization

    Integrates and reconciles the personal goals withorganizational goals

    He solicits support

    As a friend, philosopher and guide

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    Qualities of a leader Physical appearance

    Intelligence

    Communicative skills Objective

    Knowledge of work

    Sense of responsibility

    Self-confidence and will-power

    Humanist

    Empathy

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    Leader Vs ManagerBasis Manager Leader

    OriginA person becomes a managerby virtue of his position.

    A person becomes a leader onbasis of his personal qualities.

    Formal Rights

    Manager has got formal rights

    in an organization because of

    his status.

    Rights are not available to a

    leader.

    FollowersThe subordinates are the

    followers of managers.

    The group of employeeswhom the leaders leads are

    his followers.

    FunctionsA manager performs all five

    functions of management.

    Leader influences people to

    work willingly for group

    objectives.

    NecessityA manager is very essential to

    a concern.

    A leader is required to create

    cordial relation between

    person working in and for

    organization.

    StabilityIt is more stable. Leadership is temporary.

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    Basis Manager Leader

    Mutual Relationship All managers are leaders. All leaders are not managers.

    AccountabilityManager is accountable for selfand subordinates behaviour and

    performance.

    Leaders have no well defined

    accountability.

    ConcernA managers concern is

    organizational goals.

    A leaders concern is group

    goals and members

    satisfaction.

    FollowersPeople follow manager by virtue

    of job description.

    People follow them on voluntary

    basis.

    Role continuation

    A manager can continue in

    office till he performs his duties

    satisfactorily in congruence with

    organizational goals.

    A leader can maintain his

    position only through day to day

    wishes of followers.

    Sanctions

    Manager has command over

    allocation and distribution of

    sanctions.

    A leader has command over

    different sanctions and related

    task records. These sanctions

    are essentially of informal

    nature.

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    Leadership Theories

    Theories

    TraditionalTheories

    TraitTheory

    Group andExchange

    Theory

    BehavioralTheories

    Ohio State

    Studies

    University ofMichigan studies

    Scandinavianstudies

    ContinuousTheory

    Likerts foursystems

    Managerial grid

    Leadershipparticipation

    model

    Contingency /Situational Theories

    Tannenbaumand SchimidtsLeadership

    pattern

    Fiedlerscontingency

    theory

    Path Goaltheory

    Hersey andBlanchards Lifecycle approach

    ModernTheories

    CharismaticLeadership

    Theory

    Transformat

    ionalLeadershipTheory

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    Trait theory

    Earliest approach

    Identify great person from masses Certain traits = success/effectiveness As basic as height, complex as intelligence

    Theories that consider personality, social, physical, orintellectual traits to differentiate leaders from nonleaders

    Leadership Traits: Extraversion,Conscientiousness,Openness

    Limitations:

    No universal traits found that predict leadership in all situations.

    Unclear evidence of the cause and effect of relationship ofleadership and traits.

    Better predictor of the appearance of leadership thandistinguishing effective and ineffective leaders

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    Leader-Member Exchange (LMX) Theory

    Leaders select certain followers to be in (favorites)

    Based on competence and/or compatibility &similarity to leader

    Exchanges with these In followers will be higherquality than with those who are Out

    RESULT: In subordinates will have higher performanceratings, less turnover, and greater job satisfaction

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    Behavioral theories

    Theories proposing that specific behaviorsdifferentiate leaders from nonleaders

    Behavioral theory:

    Leadership behaviors can be taught.

    Vs.

    Trait theory:

    Leaders are born, not made.

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    Ohio State Studies/U. of Michigan

    Initiating Structure/Production Orientation

    Consideration/Employee Orientation

    Assumption: Leaders can be trained Goal: Develop leaders

    Problem: Effective behaviors do not generalize acrosssituations

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    2007 Prentice Hall Inc. Allrights reserved.

    Ohio State Studies

    Initiating Structure

    The extent to which a leader is likely to define andstructure his or her role and those of sub-ordinates in thesearch for goal attainment.

    Consideration

    The extent to which a leader is likely to have jobrelationships characterized by mutual trust, respectfor subordinates ideas, and regard for their feelings.

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    2007 Prentice Hall Inc. Allrights reserved.

    University of Michigan Studies

    Employee-Oriented Leader

    Emphasizing interpersonal relations; taking apersonal interest in the needs of employees andaccepting individual differences among members.

    Production-Oriented Leader

    One who emphasizes technicalor task aspects of the job.

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    Scandinavian studies

    Leaders should exhibit development oriented behavior

    in a developing world Leaders should be innovative, creative ,seek new and

    challenging ideas,experiment,generate and implementchange

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    Continuous theory of leadership

    Lewin,Lippit and White have identified 3 basic stylesof leadership

    Autocrat

    Democrat

    Laissez faire

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    Likerts four systems

    System 1:Exploitative authoritative

    System 2:Benevolent authoritative- paternalistic

    System 3:Consultative System 4: Participative

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    The Managerial Grid(Blake and Mouton)

    2007 Prentice Hall Inc. All rights reserved.

    E X H I B I T

    121

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    1.1-Impoverished-laissez faire of management

    9.1-Task - authoritarian 1.9-Country club- friendly transactios

    9.9-Team-effective type of leadership

    5.5-Middle road-moderate

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    Leadership-participation model

    It provides set of rules to determine the form and

    amount of participative decision making in differentsituations

    5 behaviors may be feasible in a given situation

    Autocratic I-leader makes decision by himself

    Autocratic II-leader obtains necessary informationfrom subordinates

    Consultative I-leader shares problems with

    subordinates one by oneseeking their ideas and hemakes final decision

    Consultative II-leader shares problems withsubordinates as a group seeking their ideas and he

    makes final decision

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    CONTINGENCY THEORIES

    All Consider the Situation

    Fiedlers Contingency Model

    Cognitive Resource Theory

    Hersey and Blanchards Situational Leadership Model

    Path Goal Theory

    Assumptions underlying the different models:Fiedler: Leaders style is fixed

    Others: Leaders style can and should be changed

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    Fiedlers Contingency Model

    Leader: Style is Fixed (Task oriented vs. Relationshiporiented)

    Considers Situational Favorableness for Leader

    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

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    Fiedlers Model: The Leader

    Assumption: Leaders Style is Fixed & Can beMeasured by the Least Preferred Co-Worker (LPC)Questionnaire

    Least Preferred Co-Worker (LPC) Questionnaire

    The way in which a leader will evaluate a co-workerthat is not liked will indicate whether the leader is

    task- or relationship-oriented.

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    Fiedlers Model: Defining the Situation

    Leader-Member Relations

    The degree of confidence, trust, and respectsubordinates have in their leader.

    Task Structure

    The degree to which the job assignments areprocedurized

    Position Power Influence derived from ones formal structural position

    in the organization; includes power to hire, fire,discipline, promote, and give salary increases.

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    Fiedlers Model

    E X H I B I T 122

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    Contingency Approach: Hersey & Blanchard Situational Model

    Considers Leader Behaviors (Task & Relationship) Assumes Leaders CAN change their behaviors

    Considers Followers as the Situation Follower Task maturity (ability & experience)

    Follower Psychological maturity (willingness to takeresponsibility)

    Assumptions Leaders can and should change their style to fit their

    followers degree of readiness (willingness and ability)

    Therefore, it is possible to TRAIN leaders to better fittheir style to their followers.

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    Hersey and Blanchards Situational Leadership

    Theory

    Situational Leadership Theory (SLT)

    A contingency theory that focuses on followersreadiness; the moreready the followers (the morewilling and able) the less the need for leader

    support and supervision.

    LOW Amount of Follower Readiness HIGH

    Amount of LeaderSupport &

    Supervision RequiredHIGH LOW

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    Leadership Styles and Follower Readiness

    (Hersey and Blanchard)

    WillingUnwilling

    Able

    Unable Directive

    High Taskand

    RelationshipOrientations

    Supportive

    Participative

    Monitoring

    FollowerReadiness

    LeadershipStyles

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    Path-Goal Theory

    Premise Leader must help followersattaining goals and reduceroadblocks to success

    Leaders must change behaviors tofit the situation (environmentalcontingencies & subordinatecontingencies)

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    The Path-Goal Theory

    E X H I B I T 124

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    Situational Leadership Theory

    Hersey and Blanchard say the level of maturity of aworker plays a role in leadership behavior

    Maturity consists of:

    Job maturity talks-related abilities, skills andknowledge

    Psychological maturity feelings of confidence,willingness and motivation

    Follower readiness

    Leader behavior

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    Situational Leadership Theory

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    Leadership styles

    Based on amount of authority retained by the leader

    Based on relative emphasis placed on the task to beperformed versus placed on people

    Based on assumptions made by leader on people

    Likerts four styles

    Entrepreneual leadership styles

    Based on amount of authority retained by the leader

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    Based on amount of authority retained by the leader

    Autocratic Leader makes decisions without reference to anyone else High degree of dependency on the leader Can create de-motivation and alienation

    of staff May be valuable in some types of business where decisions need to

    be made quickly and decisively

    Participative:

    Encourages decision makingfrom different perspectives leadership may be emphasisedthroughoutthe organisation Consultative: process of consultation before decisions are taken Persuasive: Leader takes decision and seeks to persuade others that

    the decisionis correct

    Free rein

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    Free rein

    Laissez-Faire: Let it be the leadership responsibilities

    are shared by all

    Can be very useful in businesses

    where creative ideas are important Can be highly motivational,

    as people have control over their working life

    Can make coordination and decision making

    time-consuming and lacking in overall direction Relies on good team work

    Relies on good interpersonal relations

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    Emphasis placed on the task to be performed

    versus placed on people

    High relation shipand low

    taskSupporting style

    High task and high

    relationshipParticipative style

    Low task and lowrelationship

    Free Rein style

    High task and lowrelationship

    Autocratic

    PeopleEmphasis

    Task emphasis

    LowHigh

    High

    l k d G id h

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    Blake and Moutons Grid theory