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Page 1: Session 3 Leadership

Topic - 6

LEADERSHIP

Page 2: Session 3 Leadership

Session - 17

Page 3: Session 3 Leadership

What Leaders Really do?

Page 4: Session 3 Leadership

What Leaders Really do?

• They don’t make plans; they don’t solve problems; they don’t even organize people.

• They ‘prepare organizations for change and help them cope as they struggle through it’.

• Leadership is different from management – but not for the reasons most people think.

• Leadership isn’t mystical and mysterious.

Page 5: Session 3 Leadership

• Leadership has nothing to do with having ‘charisma’, or other exotic personality traits.

• It is NOT the province of a chosen few; nor is it necessarily better than management or a replacement for it.

• Leadership and management are two distinctive and complementary systems of action.

Page 6: Session 3 Leadership

Difference between Leadership and Management

• Management is about coping with complexity.

• Leadership, by contrast, is about coping with changes.

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LEADERSHIP(Trait and Personal -Behavioural Approaches)

Definition: • The activity of influencing people to strive willingly

for group activities.• Also defined as ‘interpersonal influence exercised in

a situation and directed, through the communication process, towards the attainment of a specialized goal or goals’.

• Leadership is also influencing people to follow in the achievement of a common goal.

• The process is a function of the leader, the follower and other situational variables:

Page 8: Session 3 Leadership

L = f (l, f, s)

Leadership Process

Page 9: Session 3 Leadership

Leaders as Vision Creators

Organizational Leadership is placed into a broad context, by introducing two

powerful models:

1. The SOAR Peak Performance model and

2. The Vision to Results (VTR) model. Each

model offers a different perspective.

Page 10: Session 3 Leadership

The SOAR Peak Performance Model

‘Leadership is making what you believe in . . . .

. . . . . . happen’

The SOAR Peak Performance Model suggests that an interaction between the Situation and the Organization leads to Activities that ultimately lead to Results.

S ---------- O ------------ A --------- R

Situation Organization Activities Results

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• If an org has to SOAR to peak performance, the leader, as an integral part of the solution must influence the orgs activities to achieve results.

• So ‘L’ is added to the model to represent the Leader.

• The Leader’s influence potential is represented in this model by an equal sign to illustrate the increasingly indirect powers of leaders.

• The leader however, is but one of the myriad (numerous) forces influencing the organization.

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• From an external perspective, the organization is also affected by political, economic, social, technological and environmental forces in the remote environment.

• A leader’s ‘magnetic’ personality is not enough; something more is needed to pull the org towards results and this is the role of Vision as depicted by the letter ‘V’ in the figure shown on the next slide.

• A leader’s influencing push is not enough to achieve results; the pull of a powerful, impelling vision is required.

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L== S------O------A----- R ==V

Leader Situation Organization Activities Results Vision

Page 14: Session 3 Leadership

Vision to Results Model

It is important to look at achieving results from a strategic perspective. The key pattern words for success are:

• Vision.

• Change.

• Implementation.

• Results.

Page 15: Session 3 Leadership

These four words are integral to the ‘Vision to Results’ model developed above. Each of these characteristics is combined in a process -oriented model composed of these key components.

• Vision.• Business idea - Organizational environment.• Strategy - Culture.• Goal - Teams.• Task - People.• Results.

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Page 17: Session 3 Leadership

Topic - 6

LEADERSHIP

(Cont’d)

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Session - 18

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Trait Approach to Leadership• Pre 1945, leadership traits suggested certain

characteristics, such as physical energy or friendliness as essential for effective leadership.

• These inherent personal qualities like intelligence were felt to be transferable from one situation to another, but since all individuals did not possess these qualities, only those who had them were considered potential leaders.

• Research on Traits is continuing. Warren Bennis who completed a 5-year study of ninety outstanding leaders and their followers, identified four common traits, or common areas of competence, shared by all ninety leaders.

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1. Management of Attention

The ability to communicate a sense of outcome, goal, or direction that attracts followers.

2. Management of Meaning

The ability to create and communicate meaning with clarity and understanding.

3. Management of Trust

The ability to be reliable and consistent.

4. Management of Self

The ability to know one’s self and to use one’s skills within the limits of one’s strengths and weaknesses.

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Bennis updated these traits with sevencharacteristics of effective performance:

1. Business Literacy Does the manager know the business – the real feel of it?

2. People Skills Does the manager have the capacity to motivate, to bring out the best in people?

3. Conceptual Skills Does the manager have the capacity to think systematically, creatively and inventively?

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4. Track Record Has the manager done it before and done it well?

5. Taste Does the manager have the ability to pick the right people – not clones, but people that can make up deficiencies?

6. Judgement Does the manager have the ability to make quick decisions with imperfect data?

7. Character The core competency of leadership is character, but character and judgment are the qualities we know least about when trying to teach them to others.

Page 23: Session 3 Leadership

Negative Leadership Traits

When people are hindered from reaching the top, it is simply due to certain negative traits. Three such negative traits, in order of importance are: – The perception of being uninformed.– Of being non-participants.– Of being extremely rigid.

Both, winners and losers had strengths and weaknesses, but those who fell short, seemed to have one or more of what are termed as ‘fatal flaws’ viz:

Page 24: Session 3 Leadership

– Insensitive to orders: abrasive, intimidating, bullying style.

– Cold, aloof or arrogant.– Untrustworthy.– Overly ambitious: always thinking of the next

job, playing politics.– Having specific performance problems with the

business.– Unable to delegate or build a team – over

managing.– Unable to staff effectively.– Unable to think strategically.– Unable to adapt to boss with different style.– Over dependent on advocate or mentor.

Page 25: Session 3 Leadership

Leadership Traits that do matter

• Drive: Achievement, ambition, energy, tenacity, initiative.

• Leadership motivation (personalized Vs socialized).

Page 26: Session 3 Leadership

Personal-Behavioural Theories(Attitudinal Approaches)

• The main period of the attitudinal approaches to leadership occurred between 1945 with the Ohio State and Michigan studies and the mid 90s, with the development of the Managerial Grid.

• The dimensions of the Managerial Grid – concern for production and concern for people – are attitudinal.

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Ohio State Leadership Studies Initiating Structure and Consideration

• This study attempted to identify various dimensions of leader behaviour.

• Defining leadership as ‘the behaviour of an individual when directing the activities of a group towards goal attainment’, they eventually narrowed the description of leader behaviour to two dimensions: initiating structure and consideration.

• Initiating structure meant ‘a type of leader behaviour that describes the extent to which a leader is task oriented and directs subordinates’ work activities towards goal achievement’.

• Consideration, on the other hand refers to ‘a type of leader behaviour that describes the extent to which a leader is sensitive to subordinates, respects their ideas and feelings and establishes mutual trust’.

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• The State developed the Leader Behaviour Description Questionnaire, (LBDQ), an instrument designed to describe how leaders carry out their activities.

• This questionnaire measures the perceptions of subordinates, peers or superiors.

• The initiating structure and consideration scores derived from the responses to the questionnaire provide a way to measure leadership style.

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Examples of LBDQ Items

CONSIDERATION

1. The leader finds time to

listen to group members.

2. The leader is friendly and approachable.

3. The leader is willing to

make changes.

INITIATING STRUCTURE

1. The leader assigns group members to particular tasks.

2. The leader asks the group members to follow standard rules and regulations.

3. The leader lets group

members know what is

expected of them.

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• The Ohio State University found that initiating structure and consideration were separate and distinct dimensions.

• A high score on one dimension did not necessitate a low score on the other.

• The behaviour of a leader was any mix of both dimensions.

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High Consideration

and

Low Structure

High Structure

and

High Consideration

Low Structure

and

Low Consideration

High Structure

and

Low Consideration

Low - - - - - - - - - - - - - - - - - INITIATING STRUCTURE - - - - - - - - - - - - - -HIGH

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The Ohio State personal-behaviour theory has been criticized because of simplicity, lack of generalizability and reliance on questionnaire responses to predict leadership effectiveness.

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Page 34: Session 3 Leadership

Topic - 6

LEADERSHIP

(Cont’d)

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Session - 19

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The University of Michigan Studies: ‘Job’ Centered and ‘Employee Centered’

• The leadership studies in this case identified two concepts, which the researchers called employee orientation and production orientation.

• The employee-oriented leaders emphasized the relationship aspects of their job.

• Production-oriented leaders emphasized production and the technical aspects of the job, while employees were seen as tools to accomplish the goals of the organization.

• The study concluded that employee-orientation leader behaviour was found to be more effective.

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The Managerial / Leadership Grid• It was Blake and Mouton’s assumption that

people and production concerns are complementary rather than mutually exclusive.

• They further believed that leaders must integrate these concerns to achieve effective performance results.

• These thoughts of Blake and Mouton resulted in the development of the grid chart. Theoretically, there are 81 possible positions on the grid, representing as many leadership styles, but the focus usually centers around five styles:

1, 1; 1, 9; 9, 1; 5, 5; and 9, 9.

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1, 9 9, 9 Country Club Management Team ManagementThoughtful attention to needs of people Work accomplishment is from committed for satisfying relationships leads to a people; interdependence through a comfortable, friendly organization “common stake” in organization purpose

atmosphere and work tempo. leads to relationships of trust & respect.

5, 5 Organization Man Management

Adequate organization performance is possible through balancing the necessity

to get out work with maintaining morale of people at a satisfactory level.

1, 1 9, 1 Impoverished Management Authority-ObedienceExertion of minimum effort to get Efficiency in operations results from required work done is appropriate arranging conditions of working into sustain organization membership. such a way that human elements

interfere to a minimum degree.

1 2 3 4 5 6 7 8 9Low High

Concern for Production/Task

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• The 9, 1 leader is primarily concerned with production task accomplishment and has little, if any concern for people. This person wants to meet schedules and get the work done at all costs.

• The 1, 9 style represents a minimal concern for production, coupled with a maximal concern for the people;

• The 1, 1 style represents both minimal concern for both, people and production.

• The 9, 9 style is viewed as the ideal approach for integrating a maximum concern for production with a maximum concern for people.

• Though this managerial grid has not been thoroughly supported by research, it is still a popular theory of leadership.

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The Four-Factor Leadership Approach

The theories and research studies presented thus far, each employ two factors: employee oriented and production oriented and initiating structure and consideration and concern for production and concern for people. Bowers and Seashore however felt that two factors alone were inadequate to define a complex aspect like leadership. They felt that the under mentioned four factors more adequately defined leadership.

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• Support – behaviour which enhances the followers’ feelings of personal support and esteem.

• Interaction Facilitation – behaviour which encourages followers in the group to develop close, mutually satisfying relationships.

• Goal Emphasis – behaviour which motivates an enthusiasm within the group for achieving high levels of performance.

• Work Facilitation – behaviour which helps goal accomplishment by such activities as scheduling, coordinating and planning and by providing resources such as tools, materials and technical knowledge.

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Page 43: Session 3 Leadership

Topic - 6

LEADERSHIP

(Cont’d)

Page 44: Session 3 Leadership

Session - 20

Page 45: Session 3 Leadership

Leadership : Contingency and Path-Goal Approaches

The Situational Theme Managers who are aware of the forces they face are able to more readily make the necessary modifications in style to cope with the inevitable changes in the work environment. Three forces of particular importance are:

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A. Forces on the Manager

The forces operating within his or her

personality will influence the manager’s

behaviour in any given situation. Such

forces include:

1. Value System

2. Confidence in Subordinates

3. Leadership Tendencies

4. Security

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1. Value System

• Does the manager believe in decision-making participation?

• What is a fair day’s work?

• Is the manager concerned about the personal growth of subordinates?

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2. Confidence in Subordinates

• Managers differ in their respect for and trust in subordinates.

• These attitudes are reflected in the way they evaluate their subordinates ability and overall competence.

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3. Leadership Tendencies

• There are some leaders who must closely direct the work of others.

• They must control the work to feel comfortable.

• Other managers seem to thrive on allowing subordinates an opportunity to become involved and committed.

• They want to share the tasks and duties with others.

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4. Security

• The ability to share decision making with subordinates is a characteristic, which has security overtones.

• Some leaders have an intense need to know how a job is proceeding.

• They have a low tolerance for ambiguity, which motivates them to closely control subordinates.

• Other leaders can tolerate the unpredictable behaviours of participating subordinates.

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B. Forces in the Subordinates

• Managers should consider the individual characteristics and behavioural patterns of subordinates.

• He should also learn about their needs for independence, responsibility, autonomy, goal orientation and career objectives.

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C. Forces in the Situation 1. The Organization Organizations have values, norms and goals, which are committed by policy statements, job descriptions and performance appraisals. These factors tend to influence the leadership style adopted.

2. Group Effectiveness A group, which is considered effective, may be given more autonomy than an ineffective group. It is therefore to know what the group is accomplishing and why they are not accomplishing effective goals.

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3. The Task

The type of task determines what degree of authority

will be delegated to subordinates. Delegating tasks

which may not be successfully accomplished because

of a groups limitations, can result in frustration,

poor attitudes and perhaps turn over or

absenteeism.

4. Time

If an immediate decision must be made, the

involvement of others in the decision-making process

may be difficult, if not impossible.

Page 54: Session 3 Leadership

The Path-Goal Theory

The foundation of path-goal theory is the

expectancy motivation theory. This theory

states that an individual’s attitude, job

satisfaction, behaviour and job effort can be

predicted from:

• The degree to which the job or behaviour is seen as leading to various outcomes (expectancy).

• The preferences for these outcomes (valencies).

Page 55: Session 3 Leadership

• The implications of these assumptions for leadership is that subordinates are motivated by leader style or behaviour to the extent it influences expectancies (goal paths) and valencies (goal attractiveness).

• It is argued that an important of the leaders job is to clarify for subordinates the kind of behaviour that will most likely result in goal accomplishment.

• This activity is referred to as path clarification.

• The path-goal approach suggests more flexibility than the contingency model.

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The Main Path Goal Propositions

The above theory has led to the development of two

important propositions:

• Leader behaviour is acceptable and satisfying to the extent that the subordinates perceive such behaviour as an immediate source of satisfaction or as instrumental to future satisfaction.

• Leader behaviour will be motivational to the extent that it makes satisfaction of subordinates’ needs on effective performance and it complements the environment of subordinates by providing the guidance, clarity of direction and rewards necessary for effective performance.

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Page 58: Session 3 Leadership

Douglas Mcgregor

Theory X Y

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Douglas McGregor's XY Theory

• Douglas McGregor, an American social psychologist, proposed his famous X-Y theory in his 1960 book 'The Human Side Of Enterprise'.

• Theory X and Theory Y are still referred to commonly in the field of management and motivation, and whilst more recent studies have questioned the rigidity of the model, Mcgregor's X-Y Theory remains a valid basic principle from which to develop positive management style and techniques.

• McGregor's XY Theory remains central to organizational development, and to improving organizational culture.

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• McGregor's X-Y theory is a salutary and simple reminder of the natural rules for managing people, which under the pressure of day-to-day business are all too easily forgotten.

• McGregor maintained that there are two fundamental approaches to managing people.

• Many managers tend towards Theory X, and generally get poor results. Enlightened managers use Theory Y, which produces better performance and results, and allows people to grow and develop.

Page 61: Session 3 Leadership

Theory X ('Authoritarian Management' Style)

• The average person dislikes work and will avoid it he/she can.

• Therefore most people must be forced with the threat of punishment to work towards organisational objectives.

• The average person prefers to be directed; to avoid responsibility; is relatively unambitious, and wants security above all else.

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Theory Y ('Participative Management' Style)

• Effort in work is as natural as work and play. • People will apply self-control and self-direction in the

pursuit of organisational objectives, without external control or the threat of punishment.

• Commitment to objectives is a function of rewards associated with their achievement.

• People usually accept and often seek responsibility. • The capacity to use a high degree of imagination,

ingenuity and creativity in solving organisational problems is widely, not narrowly, distributed in the population.

• In industry the intellectual potential of the average person is only partly utilised.

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Characteristics of the Theory X ManagerTypically some, most or all of these are:

• results-driven and deadline-driven, to the exclusion of everything else.

• intolerant. • issues deadlines and ultimatums. • distant and detached. • aloof and arrogant. • elitist. • short temper. • shouts. • issues instructions, directions, edicts. • issues threats to make people follow instructions. • demands, never asks. • does not participate. • does not team-build. • unconcerned about staff welfare, or morale. • proud, sometimes to the point of self-destruction.

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• one-way communicator. • poor listener. • fundamentally insecure and possibly neurotic. • anti-social. • vengeful and recriminatory. • does not thank or praise. • withholds rewards, and suppresses pay and remunerations levels. • scrutinises expenditure to the point of false economy. • seeks culprits for failures or shortfalls. • seeks to apportion blame instead of focusing on learning from the

experience and preventing recurrence.• does not invite or welcome suggestions. • takes criticism badly and likely to retaliate if from below or peer

group. • poor at proper delegating - but believes they delegate well. • thinks giving orders is delegating. • holds on to responsibility but shifts accountability to subordinates. • relatively unconcerned with investing in anything to gain future

improvements. • unhappy.

Page 65: Session 3 Leadership

How you can manage upwards your X theory boss?

• Working for an X theory boss isn't easy - some extreme X theory managers make extremely unpleasant managers, but there are ways of managing these people upwards.

• Avoiding confrontation (unless you are genuinely being bullied, which is a different matter) and delivering results are the key tactics.

Page 66: Session 3 Leadership

• Theory X managers (or indeed Theory Y managers displaying Theory X behaviour) are primarily result oriented - so orientate your own discussions and dealings with them around results – i.e. what you can deliver and when.

• Theory X managers are facts and figures oriented - so cut out the incidentals, be able to measure and substantiate anything you say and do for them, especially reporting on results and activities.

• Theory X managers generally don't understand or have an interest in the human issues, so don't try to appeal to their sense of humanity or morality. Set your own objectives to meet their organizational aims and agree these with the managers; be seen to be self-starting, self-motivating, self-disciplined and well-organised - the more the X theory manager sees you are managing yourself and producing results, the less they'll feel the need to do it for you.

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• Always deliver your commitments and promises. If you are given an unrealistic task and/or deadline state the reasons why it's not realistic, but be very sure of your ground, don't be negative; be constructive as to how the overall aim can be achieved in a way that you know you can deliver.

• Stand up for yourself, but constructively - avoid confrontation. Never threaten or go over their heads if you are dissatisfied or you'll be in big trouble afterwards and life will be a lot more difficult.

• If an X theory boss tells you how to do things in ways that are not comfortable or right for you, don't question the process, simply confirm the end-result that is required, and check that it's okay to 'streamline the process' or 'get things done more efficiently' if the chance arises - they'll normally agree to this, which effectively gives you control over the 'how', provided you deliver the 'what' and 'when'.

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Theory Z - William Ouchi

• Theory Z is not a Mcgregor idea and as such is not Mcgregor's extension of his XY theory.

• Theory Z was developed by not by Mcgregor, but by William Ouchi, in his book 1981 'Theory Z: How American management can Meet the Japanese Challenge'.

• William Ouchi is Professor of Management at UCLA, Los Angeles, and a board member of several large US organizations.

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• Theory Z is often referred to as the 'Japanese' management style, which is essentially what it is.

• It's interesting that Ouchi chose to name his model 'Theory Z', which apart from anything else tends to give the impression that it's a Mcgregor idea.

• One wonders if the idea was not considered strong enough to stand alone with a completely new name...

• Nevertheless, Theory Z essentially advocates a combination of all that's best about Theory Y and modern Japanese management, which places a large amount of freedom and trust with workers, and assumes that workers have a strong loyalty and interest in team-working and the organisation.

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• Theory Z also places more reliance on the attitude and responsibilities of the workers, whereas Mcgregor's XY theory is mainly focused on management and motivation from the manager's and organisation's perspective.

• There is no doubt that Ouchi's Theory Z model offers excellent ideas, albeit it lacks the simple elegance of Mcgregor's model, which, thousands of organizations and managers around the world have still yet to embrace.

• For this reason, Theory Z may for some, be like trying to manage the kitchen at the Meredian before mastering the ability to cook a decent fried breakfast.

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Page 72: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Topic - 6

LEADERSHIP

(Cont’d)

Page 73: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Session - 21

Page 74: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Contemporary Issues in Leadership

Topic - 6

Page 75: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Framing: Using Words to Shape Meaning and Inspire

Others

Leaders use framing (selectively including or excluding facts) to influence how others see and interpret reality.

Leaders use framing (selectively including or excluding facts) to influence how others see and interpret reality.

Framing

A way to use language to manage meaning.

Page 76: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Inspirational Approaches to Leadership

Charismatic Leaders

1. Have a vision

2. Are willing to take personal risks to achieve the vision

3. Are sensitive to follower needs

4. Exhibit behaviours that are out of the ordinary

Charismatic Leaders

1. Have a vision

2. Are willing to take personal risks to achieve the vision

3. Are sensitive to follower needs

4. Exhibit behaviours that are out of the ordinary

Charismatic Leadership Theory

Followers make attributions of heroic or extraordinary leadership abilities when they observe certain behaviours.

Page 77: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Key Characteristics of Charismatic Leaders

E X H I B I T 13–1

E X H I B I T 13–1

1. Vision and articulation. Has a vision—expressed as an idealized goal—that proposes a future better than the status quo; and is able to clarify the importance of the vision in terms that are understandable to others.

2. Personal risk. Willing to take on high personal risk, incur high costs and engage in self-sacrifice to achieve the vision.

3. Environmental sensitivity. Able to make realistic assessments of the environmental constraints and resources needed to bring about change.

4. Sensitivity to follower needs. Perceptive of others’ abilities and responsive to their needs and feelings.

5. Unconventional behavior. Engages in behaviours that are perceived as novel and counter to norms.

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© 2007 Prentice Hall Inc. All rights reserved.

Beyond Charismatic Leadership

• Level 5 Leaders– Possess a fifth dimension—a paradoxical

blend of personal humility and professional will—in addition to the four basic leadership qualities of individual capability, team skills, managerial competence, and the ability to stimulate others to high performance.

– Channel their ego needs away from themselves and into the goal of building a great company.

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© 2007 Prentice Hall Inc. All rights reserved.

Transactional and Transformational Leadership

• 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

Page 80: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Characteristics of Transactional Leaders

E X H I B I T 13–2

E X H I B I T 13–2

Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.

Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action.

Management by Exception (passive): Intervenes only if standards are not met.

Laissez-Faire: Abdicates responsibilities, avoids making decisions.

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© 2007 Prentice Hall Inc. All rights reserved.

Full Range of Leadership Model

Page 82: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Characteristics of Transformational Leaders

E X H I B I T 13–2 (cont’d)

E X H I B I T 13–2 (cont’d)

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.

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© 2007 Prentice Hall Inc. All rights reserved.

Authentic Leaders and Ethical Behaviour

• Authentic Leaders know who they are, what they believe in and value, and act on those values openly and candidly. – Followers see them as ethical.

• Ethical leaders use ethical means to get followers to achieve their goals, and the goals themselves are ethical.

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© 2007 Prentice Hall Inc. All rights reserved.

Actions:

• Work to positively change the attitudes and behaviours of employees.

• Engage in socially constructive behaviours.

• Do not abuse power or use improper means to attain goals.

Actions:

• Work to positively change the attitudes and behaviours of employees.

• Engage in socially constructive behaviours.

• Do not abuse power or use improper means to attain goals.

Ethical Leadership

Page 85: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Trust: The Foundation of Leadership

Trust

A positive expectation that another will not—through words, actions, or decisions—act opportunistically.

Trust is a history-dependent process (familiarity) based on relevant but limited samples of experience (risk).

E X H I B I T 13–4

E X H I B I T 13–4

Page 86: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Dimensions of Trust

• Integrity

– honesty and truthfulness.

• Competence

– an individual’s technical and interpersonal knowledge and skills.

• Consistency

– an individual’s reliability, predictability, and good judgment in handling situations.

• Loyalty

– the willingness to protect and save face for another person.

• Openness

– reliance on the person to give you the full truth.

Page 87: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Three Types of TrustDeterrence-based Trust

Trust based on fear of reprisal if the trust is violated.

Identification-based Trust

Trust based on a mutual understanding of each other’s intentions and appreciation of the other’s wants and desires.

Knowledge-based Trust

Trust based on behavioral predictability that comes from a history of interaction.

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© 2007 Prentice Hall Inc. All rights reserved.

Basic Principles of Trust

• Mistrust drives out trust.

• Trust begets trust.

• Growth often masks mistrust.

• Decline or downsizing tests the highest levels of trust.

• Trust increases cohesion.

• Mistrusting groups self-destruct.

• Mistrust generally reduces productivity.

Page 89: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Employees’ Trust in Their CEOs

Employees who believe in senior management:

E X H I B I T 12–2

E X H I B I T 12–2

Page 90: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Contemporary Leadership Roles:

Providing Team LeadershipTeam Leadership Roles:

• Act as liaisons with external constituencies.

• Serve as troubleshooters.

• Managing conflict.

• Coaching to improve team member performance.

Team Leadership Roles:

• Act as liaisons with external constituencies.

• Serve as troubleshooters.

• Managing conflict.

• Coaching to improve team member performance.

Page 91: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Contemporary Leadership Roles: Providing Team Leadership (Cont’d)

Contemporary Leadership Roles: Providing Team Leadership (Cont’d)

E X H I B I T 13-6

E X H I B I T 13-6

Page 92: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Contemporary Leadership Roles: Mentoring

Mentoring Activities:

• Present ideas clearly

• Listen well

• Empathize

• Share experiences

• Act as role model

• Share contacts

• Provide political guidance

Mentoring Activities:

• Present ideas clearly

• Listen well

• Empathize

• Share experiences

• Act as role model

• Share contacts

• Provide political guidance

Mentor

A senior employee who sponsors and supports a less-experienced employee (a protégé).

Page 93: Session 3 Leadership

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Contemporary Leadership Roles:

Self-LeadershipCreating self leaders:

• Model self-leadership.

• Encourage employees to create self-set goals.

• Encourage the use of self-rewards.

• Create positive thought patterns.

• Create a climate of self-leadership.

• Encourage self-criticism.

Creating self leaders:

• Model self-leadership.

• Encourage employees to create self-set goals.

• Encourage the use of self-rewards.

• Create positive thought patterns.

• Create a climate of self-leadership.

• Encourage self-criticism.

Self-Leadership

A set of processes through which individuals control their own behaviour.

Page 94: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Online Leadership

• Leadership at a Distance: Building Trust

– The lack of face-to-face contact in electronic communications removes the nonverbal cues that support verbal interactions.

– There is no supporting context to assist the receiver with interpretation of an electronic communication.

– The structure and tone of electronic messages can strongly affect the response of receivers.

– An individual’s verbal and written communications may not follow the same style.

– Writing skills will likely become an extension of interpersonal skills

Page 95: Session 3 Leadership

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Challenges to the Leadership Construct

Qualities attributed to leaders:

• Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding, and industrious.

• Effective leaders are perceived as consistent and unwavering in their decisions.

• Effective leaders project the appearance of being a leader.

Qualities attributed to leaders:

• Leaders are intelligent, outgoing, have strong verbal skills, are aggressive, understanding, and industrious.

• Effective leaders are perceived as consistent and unwavering in their decisions.

• Effective leaders project the appearance of being a leader.

Attribution Theory of Leadership

The idea that leadership is merely an attribution that people make about other individuals.

Page 96: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Substitutes and Neutralizers for Leadership

E X H I B I T 13–7

E X H I B I T 13–7

Relationship- Task-Oriented Oriented

Defining Characteristics Leadership Leadership

Individual

Experience/training No effect on Substitutes forProfessionalism Substitutes for Substitutes forIndifference to rewards Neutralizes Neutralizes

Job

Highly structured task No effect on Substitutes forProvides its own feedback No effect on Substitutes forIntrinsically satisfying Substitutes for No effect on

Organization

Explicit formalized goals No effect on Substitutes forRigid rules and procedures No effect on Substitutes forCohesive work groups Substitutes for Substitutes for

Page 97: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

Finding and Creating Effective Leaders

• Selection– Review specific requirements for the job.

– Use tests that identify personal traits associated with leadership, measure self-monitoring, and assess emotional intelligence.

– Conduct personal interviews to determine candidate’s fit with the job.

• Training– Recognize that all people are not equally trainable.

– Teach skills that are necessary for employees to become effective leaders.

– Provide behavioural training to increase the development potential of nascent charismatic employees.

Page 98: Session 3 Leadership

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Which theory suggests that if you’re a

lawyer, you might not need a

relationship or a task oriented leader?

Chapter Check-Up: Contemporary Issues in Leadership

Substitutes for Leadership Theory suggests that professionalism

(which a professional lawyer would have) can actually substitute

for task and relationship-based leadership.

Page 99: Session 3 Leadership

© 2007 Prentice Hall Inc. All rights reserved.

If your leader skips down the hall, which theory suggests the type of

leader s/he is?

TransformationalTransformational

Transactional Transactional

Level 5Level 5

Full RangeFull Range

CharismaticCharismatic

Chapter Check-Up: Contemporary Issues in Leadership

Your leader is exhibiting unconventional behaviour, which is something charismatic leaders do.

Page 100: Session 3 Leadership

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Karuna spends time with each subordinate and knows their development plans for the next five years. Karuna exhibits ____________

Inspirational MotivationInspirational Motivation

Unconventional Behaviour Unconventional Behaviour

Individualized ConsiderationIndividualized Consideration

Full Range LeadershipFull Range Leadership

Charismatic Leadership Charismatic Leadership

Chapter Check-Up: Contemporary Issues in Leadership

Karuna is showing individualized consideration, part of transformational leadership.