managing business relationships leadership
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Managing Business Relationships Leadership. Dr. Vesselin Blagoev. Managerial Roles & Activities. Informational - monitoring (scanning for) information, disseminating and acting as spokesperson. - PowerPoint PPT PresentationTRANSCRIPT
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Managing Business Relationships
Leadership
Dr. Vesselin Blagoev
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Managerial Roles & Activities
Informational- monitoring (scanning for) information, disseminating and acting as spokesperson.
Decisional…. allocating resources (ie budgets and schedules), handling disturbances (pressures and crises) and negotiating.
Interpersonal…leader, liaison and figurehead
In the last category we have the relationship dimension.
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Management
and
Leadership
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Leadership
“ A vital and, some argue, increasingly dominant, aspect of organisation is the role of management and leadership. Research and academic and practitioner interest in management and leadership has (sic) blossomed during the latter part of the twentieth century. As interest in and concern about organisational change has grown, the role of leadership has been emphasised”. Brooks 2003 p.146.
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T.J.Watson 2002 p.3 ( reproducing a conversation between Watson and a ‘real life’ manager):
“So the problem is..”? “It’s the people management thing. It’s
handling the people who work for me. They are a constant headache. I’ve tried to read the books and I’ve been on people management courses. I didn’t miss one of the OB classes on my MBA course. But I still despair at the difficulty I have with managing people in my function”…….
“Why is this do you think”? “Perhaps it’s because they are marketing
people. We often say that managing marketing people is like herding cats. Can you imagine trying to herd cats? It’s a powerful image isn’t it”?
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Does leadership matter? Impact of ex- New York mayor Giuliani after the
events of September 11th 2001.
“In the weeks that followed, Giuliani provided the leadership that the public so craved. Day after day, his mastery of the details of rescue and recovery plus his calm explanations of awful news helped to reassure a traumatised city that the crisis was under control. He found just the right balance between being a hardnosed administrator and a caring and emotional leader”. MBR (2004) p.72.
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Leadership
The ability to influence a group toward the achievement of goals
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“Leaders…aim to influence and guide others into pursuing particular objectives or visions of the future and to stimulate them into wanting to follow” Brooks 2003 p.150.
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Management and Leadership
Management is about the efficiency
Leadership is about inspiration
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Theories about Leadership
Trait theoriesBehavioral theoriesContingency theories
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Leadership
Trait theories
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LeadershipTrait theories
Theories that consider personal qualities and characteristics that differentiate leaders from non-leaders
The leaders are born Often described as charismatic,
enthusiastic and courageous
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LeadershipTrait theories
Research in the 60s - over 80 traits
5 are considered The Big Five
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Trait theoriesThe Big Five
Extroverted – enjoy being with people, full of energy, positive emotions, able to assert themselves
Agreeable – cooperation and social harmony, value the others
Conscientiousness – disciplined, keep commitments they make
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Trait theoriesThe Big Five
Emotional Intelligence (or inversely Emotional Stability) – tendency to manage/experience negative feelings: anxiety, anger, depression, emotionally reactive
Openness to Experience – intellectually curious, creative and flexible
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LeadershipTrait theories
Six traits on which leaders tend to differ from non-leaders:
Ambition and energy Desire to lead Honesty and integrity Self-confidence Emotional Intelligence Job-relevant knowledge
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Trait approach….personal qualities or characteristics ….self-evidently a factor to some extent but : “the search for what leaders had in common only managed to establish the range of variation possible in leaders, from the short balding French Emperor to the handsome gay Macedonian one”. P. Thompson & D. McHugh 2002 p.267.
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Leadership
Behavioral theories
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LeadershipBehavioral theories
Specific behaviors differentiate leaders from non-leaders.
If there are such behaviors we can teach leaders
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LeadershipBehavioral theories
Ohio State Studies University of Michigan
Studies The Managerial Grid Scandinavian Studies
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LeadershipBehavioral theories
Ohio State Studies (late 40s) Initiating structure – define and
structure his/her role, behavior that attempts to organize the work, goals, work relationships to achieve these goals
Consideration – the extent to which the person is willing to base the relationships on mutual trust, respect for employees’ ideas, regard for their feelings
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LeadershipBehavioral theories
University of Michigan Studies Employee-oriented leader –
Emphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members
Production-oriented – Emphasizing technical or task aspects of the job
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LeadershipBehavioral theories
Blake & Mouton (1964) Managerial Grid – A 9x9 matrix
outlining 81 different leadership styles. Concern for people (1.1-1.9; laissez-faire/easy going) and Concern for production (9.1-9.9; 9.1 is authoritarian type)
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LeadershipBehavioral theories
Scandinavian Studies (40-60s) Development-oriented leader – One who values experimentation, seeks new ideas, and generates and implements change
In the changing world effective leaders would use/show development-oriented behavior
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Leadership
Contingency theories
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Leadership Contingency theories
Fiedler Contingency Model: Favorability of leadership situation
Hersey & Blanchard’s Situational Theory (Maturity of followers)
Vroom & Yetton: Leader-Participation (Quality and acceptance of leader’s decisions)
House and Dressler: Path-goal theory Leader-Member Exchange Theory
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Leadership Contingency theories
Fiedler contingency model : Effective groups depend on a proper match between a leader’s style of interacting with subordinates and the degree to which the situation gives control and influence to the leader.
Identifying leadership style : LPC questionnaire -> Least Preferred Coworker, 16 contrasting adjectives: pleasant-unpleasant, efficient-inefficient. If you describe your LPC with favorable terms - you are “relationship-oriented”. Otherwise – “task-oriented”
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LPC – Least preferred co-worker questionnaire/scale : Rating given by leaders about the person with whom they could work least well
Up to 20 questions: pleasant/unpleasant, friendly/unfriendly; helpful/frustrating, distant/close, co-operative/non-…, open/guarded, boring/interestingThe LPC score is the sum of all marks
Pleasant Unpleasant
8 7 6 5 4 3 2 1
Leadership Contingency theories
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Leadership Contingency theories
Interpretation: the leader with a high LPC score derives most satisfaction from interpersonal relationships and if needed he/she is motivated to act in a supportive, considerate manner
The leader with low LPC score derives most satisfaction from a performance of a task and achieving objectives
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Favorability of the leadership situation (Fiedler) – 3 major variables which determine the favorability of the situation and which affect the leader’s role and influence
Leadership Contingency theories
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Leadership Contingency theories
Defining the situation : Leader-member relations: The
degree of confidence, trust and respect members have in their leader and their willingness to follow him
Task structure: degree to which the task is clearly defined, assignments are procedurised
Position power: degree of influence for hiring, firing, promotions, salary increase
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Leadership Contingency theories
Fiedler constructs 8 combinations of group-task situations from these 3 variables:
When the situation is : Very favourable (good L-member relations,
structured task, strong position power) or Very unfavourable (poor L-member
relations, unstructured task, weak position power)
Then a task-oriented leader (low LPC score) with a directive, controlling style will be more effective
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Leadership Contingency theories
When the situation is : moderately favourable and the
variables are mixed Then a leader with an interpersonal
relationship orientation (high LPC score) with a participative approach will be more effective
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Leadership Contingency theories Cognitive Resource
Fiedler & Garcia: Cognitive resource theory : states that stress unfavorably affects a situation and that intelligence (low pressure) and experience (high pressure) can lessen the influence of stress on the leader
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Leadership Contingency theories
Situational Theory (SLT)Hersey & Blanchard Readiness–Ability and
Willingness of people to perform a specific task:
R1: Low follower Readiness – both unable and unwilling
R2: Low to moderate follower R – unable but willing, lack ability but motivated
R3: Moderate to high follower Readiness – able but unwilling, able but insecure
R4: Able and willing – ability + commitment
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S3 Share ideas & facilitate in making decisions
S2 Explain your decisions and provide opportunity for clarification
S4 Turn over responsibi-lity for decisions and imple-mentation
S1 Provide specific instructions and control
High task Lo rel
Hi task Hi rel
Hi task Lo rel
Lo task Lo rel
Del
egat
in
g
Part
icip
ati
ng
Sellin
g
Telling
High relat
Low relat
Low task High task
Task behavior
Rela
tion
sh
ip (
su
pp
ort
ive)
beh
avio
r
Leader behavior
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Leadership Contingency theories
Situational Theory (SLT)
Task and Relationship behaviour 4 leadership styles:
S1: Telling – high amount of guidance but limited supportive behavior – best for R1
S2: Selling – high amount of guidance and supportive behavior – best for R2
S3: Participating – low amount of guidance but extensive supportive behavior – best for R3
S4: Delegating – little amount of guidance and supportive behavior – best for R4
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S3 Share ideas & facilitate in making decisions
S2 Explain your decisions and provide opportunity for clarification
S4 Turn over responsibi-lity for decisions and imple-mentation
S1 Provide specific instructions and control
High task Lo rel
Hi task Hi rel
Hi task Lo rel
Lo task Lo rel
Del
egat
in
g
Part
icip
ati
ng
Sellin
g
Telling
High relat
Low relat
Low task High task
Task behavior
Rela
tion
sh
ip (
su
pp
ort
ive)
beh
avio
r
Leader behavior
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Leadership Contingency theories LMX Theory
Leader-Member Exchange Theory: Leaders create in-groups and out-groups. Subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction
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Leadership Contingency theories
Path-Goal Theory Path-goal theory (House,
Dessler): it is the leaders job to assist followers in attaining their goals and to provide the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization
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Leadership Contingency theories
Path-Goal TheoryHouse 4 types of leadership behaviour: Directive Supportive Participative – consulting with subordinates,
evaluation of their opinion before decisions Achievement-oriented – setting
challenging goals for the subordinates, asking for improvements in their performance, etc
The leader can practice different behaviors depending on the task and situation
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Leadership Contingency theories
Path-Goal Theory
Leader-ship beha-viourDirective
Supportive
Participa-tive
Achieve-ment-oriented
Personal characteristics of subordinates (how they react to Mgr’s behavior)
Nature of the task (routine and structured or non-r and unstructured)
Subordinates’ perceptions and motivation
Goal clarity: improved job performance and satisfaction
Path-goal theory
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Leadership Contingency theories
Leader-Participation Model Vroom & Yetton Leader-participation
Model: 2 aspects of the leaders decision: Decision quality, or rationality, is the
effect that the decision has on group performance
Decision acceptance refers to the motivation and commitment of group members in implementing the decision
The 3rd consideration is the amount of time required to make the decision
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Leadership Contingency theories
Leader-Participation Model Vroom & Yetton: 5 main mgmt decision
styles: Autocratic
A.1: Leader solves/makes decisions alone A.2: Leader gets information from subordinates but
makes the decisions alone Consultative
C.1: problem is shared individually with relevant subordinates. Then L makes the decision
C.2: problem is shared with subordinates as a group, then L makes the decision
Group – the problem is shared with sub as a group. L acts as Chair, not as advocate. All make the decision
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Leadership Contingency theories
Leader-Participation Model Vroom & Jago contingency model: 12
contingency variables leading to 5 styles: Quality requirements Commitment requirements Leader information Problem structure and time constraints Commitment probability Goal congruence and geographical
dispersion Subordinate conflict and information Motivation time and development
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Leadership Contingency theories
Task and Relationship behaviour: Task behavior – the extent to which the
leader provides directions for the actions of the subordinates, sets goals for them, defines their roles and how to perform
Relationship behavior is the extent to which L engages in two-way communication with subordinates, listens to them and provides support and encouragement
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Leaders as
Shapers of Meaning
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Leaders as Shapers of Meaning
The leaders frame the future in a way which is understandable and acceptable by the others
Framing is a way to use the language to manage meaning
Framing has a double meaning: framing = targeting (what to see) framing = positioning (how to see
it)
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Leaders as Shapers of Meaning
Charismatic leadership : Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviors
The charismatic leaders have 5 important characteristics: vision and articulation, personal risk, environmental sensitivity, sensitivity to follower needs, unconventional behavior
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Leaders as Shapers of Meaning
Visions and articulation: The leader has a vision – expressed as an idealized goal – that proposes a future better than the status quo. It is able to clarify the importance of the vision in terms that are understandable to others
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Leaders as Shapers of Meaning
Personal risk: The leader is willing to take on high personal risk, incur high costs, and engage in self-sacrifice to achieve the vision
Environmental sensitivity: Able to make realistic assessments of the environmental constraints and resources needed to bring about change
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Sensitivity to follower needs:
The leaders are perceptive of others’ abilities and responsive to their needs and feelings
Unconventional behavior: Engages in behaviors that are perceived as novel and counter to norms
Leaders as Shapers of Meaning
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Leaders as Shapers of Meaning
When Charisma is a Liability : Charisma appears to be most appropriate when the follower’s task has an ideological component or when the environment involves a high degree of stress and uncertainty. The charismatic leaders are mostly in politics, religion, wartime, or crisis in the business.
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Transactional and Transformational Leadership
Transactional leaders: who guide or motivate their followers in the direction of established goals by clarifying role and task requirements
Transformational leaders: who inspire followers to transcend their own self-interests and who are capable of having a profound and extraordinary effect on followers
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Transformational leadership is built up on the top of transactional leadership. The transactional leader may want followers to adopt the charismatic’s world view and go no further, while the transformational leader will want them to question the established view + even his own ideas
Leaders as Shapers of Meaning – Transformational
Leadership
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Leaders as Shapers of Meaning – Transformational
Leadership
Characteristics of the Transactional leader : Contingent Reward: Promotes exchange of
rewards for efforts, promises rewards for good performance, recognizes accomplishments
Management by Exceptions (active): Looks for deviations from rules, takes corrective actions
Management by Exceptions (passive): Intervenes only if standards are not met
Laissez-Faire: Avoids making decisions
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Characteristics of the Transformational leader :
Charisma: 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 situation : Promotes intelligence, rationality, and careful problem solving
Individualized Consideration : Gives personal attention, treats each employee individually, couches, advises
Leaders as Shapers of Meaning –
Transformational Leadership
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Leaders as Shapers of Meaning – Visionary
Leadership
Visionary Leadership : the ability to create and articulate a realistic, credible, attractive vision of the future for an organization or organizational unit that grows out of and improves upon the present
Quality of a Vision: inspirational possibilities that are value centered, realizable, with superior imagery and articulation. Visions have to create inspirational and unique possibilities
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Leaders as Shapers of Meaning – Visionary
Leadership
Qualities of the Visionary Leader : Ability to explain the vision to others:
The vision has to be clear in terms of required actions
Ability to express the vision through the leader’s behavior
Ability to extend the vision to different leadership contexts : The vision has to be clear in every office of the company – marketing or other, Sofia and Portsmouth
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Emotional Intelligence and Leadership Effectiveness Emotional Intelligence (EI) is a
better predictor who’ll become a leader than IQ expertise or any other single factor
EI has 5 components : Self-awareness Self-management Self-motivation Empathy Social skills
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Emotional Intelligence and Leadership
Effectiveness Self-awareness : Exhibited by self-
confidence, realistic self-assessment, and self-deprecating sense of humor
Self-management : Exhibited by trustworthiness and integrity, comfort with ambiguity, and openness to change
Self-motivation : Strong drive to achieve, optimism, and high organizational commitment
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Emotional Intelligence and Leadership
Effectiveness
Empathy : Exhibited by expertise in building and retaining talent, cross-cultural sensitivity, and service to clients and customers
Social skills : Exhibited by ability to lead change, persuasiveness, and expertise in building and leading teams
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Contemporary Leadership Roles
The leaders are: Liaisons with external
constituencies, i.e. upper management, other leaders, suppliers, customers
Troubleshooters. Set meetings to solve the problems
Conflict managers – they help to process the conflicts
Coaches for the team members
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Contemporary Leadership Roles
Mentoring
Mentor is a senior employee who sponsors and supports a less experienced employee
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Attribution Theory of Leadership
Leadership is merely an attribution that people make about other individuals Example: George H. Bush lost the second term elections after saying “Read my lips. No new taxes.”
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Moral Leadership
The means used by the leaders – paying to the participants in riots – good or bad ?
Using leader’s charisma to benefit from follower’s full support – religious fights
Leadership is not value free