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leadership.pdf

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This document discusses various leadership models and concepts: 1. It defines leadership as the process of influencing others to achieve goals, and explains that effective leadership allows firms to meet new challenges. 2. Several leadership models are described, including trait, behavioral, contingency, and transformational models. Contingency models like Fiedler's examine how leadership style interacts with situational factors. 3. The sources of a leader's power, such as reward, coercive, expert, and referent power, are identified. Empowering subordinates by giving them responsibility is also discussed. 4. Cultural differences in leadership styles across regions like Europe, Japan, and the US are noted. Transformational leadership that

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Leadership
Outcomes Understand the concept of leadership and leader Understand the impact of culture on leadership Identify the sources of Power for a leader Evaluate various Leadership Models
Leadership Leadership is the process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. Effective leadership increases the firm’s ability to meet new challenges.
Leader & Style ◦ The person exerting the influence.  Personal Leadership Style: the ways leaders choose to influence others. Some leaders delegate and support subordinates, others are very authoritarian. Managers at all levels have their own leadership style.
Leadership Across Cultures Leadership styles may vary over different cultures. ◦ European managers tend to be more people-oriented than American or Japanese managers. ◦ Japanese culture is very collective oriented, while American focuses more on profitability. ◦ Time horizons also are affected by cultures. ◦ U.S. firms often focus on short-run efforts. ◦ Japanese firms take a longer-term outlook.
Sources of Power Reward Power Legitimate Power Coercive Power Expert Power Referent Power Enable managers to be leaders & influence subordinatesto achievegoals
Sources of Power Used to affect other’s behavior and get them to act in given ways. ◦ Legitimate Power: manager’s authority resulting by their management position in the firm. ◦ Can be power to hire/fire workers, assign work. ◦ Reward Power: based on the manager’s ability to give or withhold rewards. ◦ Pay raises, bonuses, verbal praise. ◦ Effective managers use reward power to signal employees they are doing a good job.
Sources of Power • Ranges from verbal reprimand to pay cuts to firing. • Can have serious negative side effects. Coercive Power:based in abilityto punish others. • First & middle managers have most expert power. • Often found in technical ability. Expert Power: based on special skills of leader. • Usually held by likable managers who are concerned about their workers. ReferentPower: results from personal characteristicsof the leader which earn worker’s respect, loyaltyand admiration.
Empowerment  Process of giving workers at all levels authority to make decisions and the responsibility for their outcomes. Empowerment helps managers. Get workers involved in the decisions. ◦ Increase worker commitment and motivation. ◦ To focus on other issues.  Effective managers usually empower substantial authority to workers.
Leadership Models Trait Model Behavioral Model Contingency Models ◦ Fiedlers Model ◦ Situational Leadership ◦ Path- Goal Model ◦ Decision Making Model Leader- SubstituteModel Transactional Leadership Transformational Leadership
Leadership Models – Trait Model:sought to identify personal characteristics responsible for effective leadership. §Research shows that traits do appear to be connected to effective leadership. –Many “traits” are the resultof skills and knowledge. –Not all effectiveleaders possess all these traits. –
Traits Accountability Adaptability Confidence Creativity Empathy Focus Positivity Risk Taking Stability Team Building
Leadership Models –Behavioral Model: Identifies types of behavior. §Consideration: leaders show care toward workers. –Employee-centered. §Initiating Structure: managers take steps to make sure work is done. –Done by assigning work, setting goals, etc. –Job-oriented.
Consideration InitiatingStructure Consideration & Initiating Structure Is friendly, approachable Do littlethings to make it fun to be a member of group Give advancenotice of changes Willingto make changes Treats group members as equals Tries out ideas in the group Lets group members know what is expected Assigns workers to tasks Schedules work to be done Maintainsstandards of performance Based on rating manager from 1 (never does) to 5 (always does)
Contingency Model Firstly, the contingency theory of leadership focuses on leadership styles. To apply this theory or any of its models, leaders must be aware of their own leadership style as well as their strengths and weaknesses. This requires honesty, self-reflection, and vulnerability for a person to identify how they’re showing up as a leader.
Contingency Models Fred E. Fiedler in the 1960 gave a model Situational Leadership was given by Paul Hersey and Kenneth Blanchard in 1982 Path- Goal Model was developed by Martin Evans and Robert House in 1971 Decision Making Model was developed by Victor Vroom and Philip Yetton in 1973
Contingency Models Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation. ◦ Leader style: the enduring, characteristic approach to leadership a manager uses. ◦ Relationship-oriented: concerned with developing good relations with workers. ◦ Task-oriented: concerned that workers perform so the job gets done.
Fiedler’s Model ◦ Situation characteristic: how favorable a given situation is for leading to occur. ◦ Leader-member relations determines how much workers like and trust their leader. ◦ Task structure: extent to which workers tasks are clear- cut. ◦ Clear issues make a situation favorable for leadership. ◦ Position Power: amount of legitimate, reward, & coercive power a leader has due to their position. ◦ When positional power is strong, leadership opportunity becomes more favorable.
Fiedler’s Contingency Model GOOD POOR HIGH LO W HIGH LOW S W S W S W S W Leader- Member Relations Task Structure Position Power Kinds of Leadership Situations Very Favorable Very Unfavorable I II III IV V VI VII VIII 1 Relationship-orientedmanagers most effectivein IV, V, VI, VII. Task-orientedmanagers most effectivein I, II, III or VIII.
Applying Fiedler’s Model Leader style is a characteristic managers cannot change. • 1) They are placed in leadership situations that suit their style. • 2) The situation can be changed to fit the manager. Thus, managers will be most effective when:
Situational Leadership Also known as Hersey Blanchard Model The Delegating Style of leadership is best suited for leaders who delegate goals, projects, and tasks to high-maturity employees. This leadership style also requires a healthy amount of trust between leaders and their teams. The Participating Style of leadership involves a give-and-take between leaders and their teams. Leaders share ideas to motivatetheir moderate-maturity team members and help them build the confidence to move into a high- maturity mindset.
Situational Leadership The Selling Style of leadership refers to when leaders must "sell" their instructions to moderate-maturity employees. This type of leader often surfaces when employees lack motivation or aren't self-starters. The Telling Style of leadership works best for teams of low-maturity employees who lack experience or foresight to determine their projects and tasks. Leaders in this style must delegate and supervise their team members, at least until they move up in maturity level.
House’s Path-Goal Model ◦ Model suggests that effective leaders motivate workers to achieve by: 1) Clearly identifying the outcomes workers are trying to achieve. 2) Reward workers for high- performance and attainment. 3) Clarifying the paths to the attainment of the goals. ◦ Path-Goal is a contingencymodel since it proposes the steps managers should take to motivate their workers.
Steps to Path-Goal 1) Determine the outcomes yoursubordinates are trying to obtain. ◦ Can rangefrompay to job security or interesting work. ◦ Onceoutcomes determined, manager needs to be surethey havethe reward power to providethese. 2) Reward subordinates for high-performance and goal attainmentwith the desired outcomes. 3) Clarify the paths to goal attainmentfor workers, remove obstacles to performance, and express confidence in worker’s ability.
Motivating with Path-goal ◦ Path-goal identifies four behaviorsleaders can use: 1) Directivebehaviors:set goals, assign tasks, show how to do things. 2) Supportivebehavior:look out for the worker’s best interest. 3) Participativebehavior:givesubordinates a say in matters that affect them. 4) Achievement-oriented behavior:Setting very challenging goals, believing in worker’s abilities. ◦ Which behaviorshould be used depends on the worker and the tasks.
Decision Making Model This model presents five leadership styles: The Autocratic (A1) leader makes decisions independently and doesn't consult others before doing so. The Autocratic (A2) leader makes decisions independently but passively consults with team members to gather information before doing so. The Consultative (C1) leader makes decisions independently but consults with team members individually to understand everyone’s opinions before doing so.
Decision Making Model The Consultative (C2) leader makes decisions independently but consults with team members often, perhaps through a group discussion to gather suggestions, before doing so. The Collaborative (G2) leader makes decisions through a democratic leadership process, often organizing a group discussion to discuss suggestions before voting for the final decision.
Leader-Substitute Model ◦ Leadership substitute: actsin the place of a leader and makes leadership unnecessary. Possible substitutes canbe found:  Characteristics of Subordinates: their skills, experience, motivation.  Characteristics of context: the extent to which work is interesting and fun.  Worker empowerment or Self-managed work teams reduce leadership needs. ◦ Managers need to be aware that they do not always need to directly exert influence over workers.
Transactional Leadership Involves managers using the reward and coercive power to encourage high performance. Managers who push subordinates to change but do not seem to change themselves are transactional. The transactional manager does not have the “vision” of the Transformational leader.
Transformational Leadership ◦ Started with Von Pierer, CEO of Siemens, and allows dramatic improvements in management effectiveness. ◦ Transformational managers: ◦ Make subordinates aware of how important their jobs are by providing feedback to the worker. ◦ Make subordinates aware of their own need for personal growth and development. ◦ Empowerment of workers, added training help. ◦ Motivate workers to work for the good of the organization, not just themselves.
Transformational Leaders ◦ Transformational leaders are charismatic and have a vision of how good things can be. ◦ They are excited and clearly communicatethis to subordinates. ◦ Transformational leaders openly share information with workers. ◦ Everyone is aware of problems and the need for change. ◦ Empowers workers to help with solutions. ◦ Transformational leaders engage in development of workers. ◦ Manager works hard to help them build skills.
Gender and Leadership The number of women managers is rising but still relatively low in top levels. Stereotypes suggestwomen are supportive and concerned with interpersonal relations. Similarly, men are seen as task- focused. ◦ Research indicatesthat actuallythere is no gender-based difference in leadership effectiveness. ◦ However, women are seen to be more participativethan men.
Women Leaders Zia Mody – Top Corporate Lawyer (acquisitions/ mergers) Kiran Mazumdar Shaw - Founder of Biocon Suneeta Reddy – MD of Apollo Hospitals (growth of Apollo Pharmacy and acquisition of Fortis Healthcare) Alice G Vaidyan – CMD of GIC . GIC market share increased from 55% to 65%. Top 10 reinsusers of the World. Mallika Srinivasan – CEO of TAFE 3rd world largest tractor manufacturer. Diversification of products and mergers for growth.
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leadership.pdf

  • 2. Outcomes Understand the concept of leadership and leader Understand the impact of culture on leadership Identify the sources of Power for a leader Evaluate various Leadership Models
  • 3. Leadership Leadership is the process where a person exerts influence over others and inspires, motivates and directs their activities to achieve goals. Effective leadership increases the firm’s ability to meet new challenges.
  • 4. Leader & Style ◦ The person exerting the influence.  Personal Leadership Style: the ways leaders choose to influence others. Some leaders delegate and support subordinates, others are very authoritarian. Managers at all levels have their own leadership style.
  • 5. Leadership Across Cultures Leadership styles may vary over different cultures. ◦ European managers tend to be more people-oriented than American or Japanese managers. ◦ Japanese culture is very collective oriented, while American focuses more on profitability. ◦ Time horizons also are affected by cultures. ◦ U.S. firms often focus on short-run efforts. ◦ Japanese firms take a longer-term outlook.
  • 6. Sources of Power Reward Power Legitimate Power Coercive Power Expert Power Referent Power Enable managers to be leaders & influence subordinatesto achievegoals
  • 7. Sources of Power Used to affect other’s behavior and get them to act in given ways. ◦ Legitimate Power: manager’s authority resulting by their management position in the firm. ◦ Can be power to hire/fire workers, assign work. ◦ Reward Power: based on the manager’s ability to give or withhold rewards. ◦ Pay raises, bonuses, verbal praise. ◦ Effective managers use reward power to signal employees they are doing a good job.
  • 8. Sources of Power • Ranges from verbal reprimand to pay cuts to firing. • Can have serious negative side effects. Coercive Power:based in abilityto punish others. • First & middle managers have most expert power. • Often found in technical ability. Expert Power: based on special skills of leader. • Usually held by likable managers who are concerned about their workers. ReferentPower: results from personal characteristicsof the leader which earn worker’s respect, loyaltyand admiration.
  • 9. Empowerment  Process of giving workers at all levels authority to make decisions and the responsibility for their outcomes. Empowerment helps managers. Get workers involved in the decisions. ◦ Increase worker commitment and motivation. ◦ To focus on other issues.  Effective managers usually empower substantial authority to workers.
  • 10. Leadership Models Trait Model Behavioral Model Contingency Models ◦ Fiedlers Model ◦ Situational Leadership ◦ Path- Goal Model ◦ Decision Making Model Leader- SubstituteModel Transactional Leadership Transformational Leadership
  • 11. Leadership Models – Trait Model:sought to identify personal characteristics responsible for effective leadership. §Research shows that traits do appear to be connected to effective leadership. –Many “traits” are the resultof skills and knowledge. –Not all effectiveleaders possess all these traits. –
  • 13. Leadership Models –Behavioral Model: Identifies types of behavior. §Consideration: leaders show care toward workers. –Employee-centered. §Initiating Structure: managers take steps to make sure work is done. –Done by assigning work, setting goals, etc. –Job-oriented.
  • 14. Consideration InitiatingStructure Consideration & Initiating Structure Is friendly, approachable Do littlethings to make it fun to be a member of group Give advancenotice of changes Willingto make changes Treats group members as equals Tries out ideas in the group Lets group members know what is expected Assigns workers to tasks Schedules work to be done Maintainsstandards of performance Based on rating manager from 1 (never does) to 5 (always does)
  • 15. Contingency Model Firstly, the contingency theory of leadership focuses on leadership styles. To apply this theory or any of its models, leaders must be aware of their own leadership style as well as their strengths and weaknesses. This requires honesty, self-reflection, and vulnerability for a person to identify how they’re showing up as a leader.
  • 16. Contingency Models Fred E. Fiedler in the 1960 gave a model Situational Leadership was given by Paul Hersey and Kenneth Blanchard in 1982 Path- Goal Model was developed by Martin Evans and Robert House in 1971 Decision Making Model was developed by Victor Vroom and Philip Yetton in 1973
  • 17. Contingency Models Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation. ◦ Leader style: the enduring, characteristic approach to leadership a manager uses. ◦ Relationship-oriented: concerned with developing good relations with workers. ◦ Task-oriented: concerned that workers perform so the job gets done.
  • 18. Fiedler’s Model ◦ Situation characteristic: how favorable a given situation is for leading to occur. ◦ Leader-member relations determines how much workers like and trust their leader. ◦ Task structure: extent to which workers tasks are clear- cut. ◦ Clear issues make a situation favorable for leadership. ◦ Position Power: amount of legitimate, reward, & coercive power a leader has due to their position. ◦ When positional power is strong, leadership opportunity becomes more favorable.
  • 19. Fiedler’s Contingency Model GOOD POOR HIGH LO W HIGH LOW S W S W S W S W Leader- Member Relations Task Structure Position Power Kinds of Leadership Situations Very Favorable Very Unfavorable I II III IV V VI VII VIII 1 Relationship-orientedmanagers most effectivein IV, V, VI, VII. Task-orientedmanagers most effectivein I, II, III or VIII.
  • 20. Applying Fiedler’s Model Leader style is a characteristic managers cannot change. • 1) They are placed in leadership situations that suit their style. • 2) The situation can be changed to fit the manager. Thus, managers will be most effective when:
  • 21. Situational Leadership Also known as Hersey Blanchard Model The Delegating Style of leadership is best suited for leaders who delegate goals, projects, and tasks to high-maturity employees. This leadership style also requires a healthy amount of trust between leaders and their teams. The Participating Style of leadership involves a give-and-take between leaders and their teams. Leaders share ideas to motivatetheir moderate-maturity team members and help them build the confidence to move into a high- maturity mindset.
  • 22. Situational Leadership The Selling Style of leadership refers to when leaders must "sell" their instructions to moderate-maturity employees. This type of leader often surfaces when employees lack motivation or aren't self-starters. The Telling Style of leadership works best for teams of low-maturity employees who lack experience or foresight to determine their projects and tasks. Leaders in this style must delegate and supervise their team members, at least until they move up in maturity level.
  • 23. House’s Path-Goal Model ◦ Model suggests that effective leaders motivate workers to achieve by: 1) Clearly identifying the outcomes workers are trying to achieve. 2) Reward workers for high- performance and attainment. 3) Clarifying the paths to the attainment of the goals. ◦ Path-Goal is a contingencymodel since it proposes the steps managers should take to motivate their workers.
  • 24. Steps to Path-Goal 1) Determine the outcomes yoursubordinates are trying to obtain. ◦ Can rangefrompay to job security or interesting work. ◦ Onceoutcomes determined, manager needs to be surethey havethe reward power to providethese. 2) Reward subordinates for high-performance and goal attainmentwith the desired outcomes. 3) Clarify the paths to goal attainmentfor workers, remove obstacles to performance, and express confidence in worker’s ability.
  • 25. Motivating with Path-goal ◦ Path-goal identifies four behaviorsleaders can use: 1) Directivebehaviors:set goals, assign tasks, show how to do things. 2) Supportivebehavior:look out for the worker’s best interest. 3) Participativebehavior:givesubordinates a say in matters that affect them. 4) Achievement-oriented behavior:Setting very challenging goals, believing in worker’s abilities. ◦ Which behaviorshould be used depends on the worker and the tasks.
  • 26. Decision Making Model This model presents five leadership styles: The Autocratic (A1) leader makes decisions independently and doesn't consult others before doing so. The Autocratic (A2) leader makes decisions independently but passively consults with team members to gather information before doing so. The Consultative (C1) leader makes decisions independently but consults with team members individually to understand everyone’s opinions before doing so.
  • 27. Decision Making Model The Consultative (C2) leader makes decisions independently but consults with team members often, perhaps through a group discussion to gather suggestions, before doing so. The Collaborative (G2) leader makes decisions through a democratic leadership process, often organizing a group discussion to discuss suggestions before voting for the final decision.
  • 28. Leader-Substitute Model ◦ Leadership substitute: actsin the place of a leader and makes leadership unnecessary. Possible substitutes canbe found:  Characteristics of Subordinates: their skills, experience, motivation.  Characteristics of context: the extent to which work is interesting and fun.  Worker empowerment or Self-managed work teams reduce leadership needs. ◦ Managers need to be aware that they do not always need to directly exert influence over workers.
  • 29. Transactional Leadership Involves managers using the reward and coercive power to encourage high performance. Managers who push subordinates to change but do not seem to change themselves are transactional. The transactional manager does not have the “vision” of the Transformational leader.
  • 30. Transformational Leadership ◦ Started with Von Pierer, CEO of Siemens, and allows dramatic improvements in management effectiveness. ◦ Transformational managers: ◦ Make subordinates aware of how important their jobs are by providing feedback to the worker. ◦ Make subordinates aware of their own need for personal growth and development. ◦ Empowerment of workers, added training help. ◦ Motivate workers to work for the good of the organization, not just themselves.
  • 31. Transformational Leaders ◦ Transformational leaders are charismatic and have a vision of how good things can be. ◦ They are excited and clearly communicatethis to subordinates. ◦ Transformational leaders openly share information with workers. ◦ Everyone is aware of problems and the need for change. ◦ Empowers workers to help with solutions. ◦ Transformational leaders engage in development of workers. ◦ Manager works hard to help them build skills.
  • 32. Gender and Leadership The number of women managers is rising but still relatively low in top levels. Stereotypes suggestwomen are supportive and concerned with interpersonal relations. Similarly, men are seen as task- focused. ◦ Research indicatesthat actuallythere is no gender-based difference in leadership effectiveness. ◦ However, women are seen to be more participativethan men.
  • 33. Women Leaders Zia Mody – Top Corporate Lawyer (acquisitions/ mergers) Kiran Mazumdar Shaw - Founder of Biocon Suneeta Reddy – MD of Apollo Hospitals (growth of Apollo Pharmacy and acquisition of Fortis Healthcare) Alice G Vaidyan – CMD of GIC . GIC market share increased from 55% to 65%. Top 10 reinsusers of the World. Mallika Srinivasan – CEO of TAFE 3rd world largest tractor manufacturer. Diversification of products and mergers for growth.