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									Chapter 10 LEADING
THE NATURE OF LEADERSHIP Leadership foundations
 Leadership is the process of inspiring others to work hard to accomplish important tasks.  Planning sets the direction and objectives; organising brings the resources together to turn plans into action; leading builds the commitments and enthusiasm needed for people to apply their talents fully to help accomplish plans; and controlling makes sure things turn out right.  Leadership challenges in the modern workplace include the following: 1. shorter time frames for accomplishing things 2. expectations for success on the first attempt 3. complex, ambiguous and multidimensional problems to be solved 4. Necessity for taking a long-term view even while meeting short-term performance demands.

Leadership and vision
 Vision refers to a future that one hopes to create or achieve in order to improve upon the present state of affairs.  Visionary leadership describes a leader who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully. 1. Challenge the process. Be a pioneer; encourage innovation and support people who have ideas. 2. Show enthusiasm. Inspire others through personal example to share in a common vision. 3. Help others to act. Be a team player and support the efforts and talents of others. 4. Set the example. Provide a consistent model of how others can and should act. 5. Celebrate achievements. Bring emotion into the workplace and rally ‘hearts’ as well as ‘minds’.

Power and influence
 Power is the ability to get someone else to do something you want done or to make things happen the way you want.  The need for power is crucial for executive success. It reflects the desire to influence and control others for the good of the group or organisation as a whole rather than the desire to control for personal satisfaction.  Position power  Position power is based on a manager’s official status in the organisation’s hierarchy of authority.

Lecture Notes by Mr. Mujeeb Khan 0333-9471388


 Management in Organization

 Sources of position power o o o Reward power. the capability to offer something of value, a positive outcome, as a means of influencing the behaviour of other people. Coercive power. the capability to punish or withhold positive outcomes as a means of influencing the behaviour of other people. Legitimate power. the right by virtue of one’s organisational position or status to exercise control over persons in subordinate positions.

 Personal power  Personal power reflects the unique personal qualities that a person brings to the leadership situation.  Sources of personal power o o Expert power. the capacity to influence the behaviour of other people because of one’s knowledge, understanding, and skills. Referent power. the capacity to influence the behaviour of other people because they admire you and want to identify positively with you.

 Turning power into influence o o Successful leadership depends of acquiring and appropriately utilising all sources of power. Different outcomes occur depending on the source of power the leader uses.  Use of reward power or legitimate power usually produces temporary compliance.  Use of coercive power produces, at best, temporary compliance, often accompanied by resistance.  Use of expert power or referent power tends to generate commitment. With respect to personal power it is important to remember that:  There is no substitute for expertise.  Likable personal qualities are very important.  Effort and hard work breed respect.  Personal behaviour must support expressed values. Good managers build or enhance their position power by acting in the following ways.  Centrality. Establishing a broad network of interpersonal contacts and getting involved in the important information flows within them.  Criticality. Taking good care of others who are dependent on them.  Visibility. Becoming known as an influential person in the organisation.



Ethics and the limits to power
 Chester Barnard’s acceptance theory of authority identifies four conditions that determine whether a leader’s directives will be followed and true influence achieved. These conditions are: 1. The other person must truly understand the directive. 2. The other person must feel capable of carrying out the directive. 3. The other person must believe that the directive is in the organisation’s best interests. 4. The other person must believe that the directive is consistent with personal values.

Lecture Notes by Mr. Mujeeb Khan 0333-9471388

10.|Leadership  3

 Using the acceptance theory of authority as a starting point for resolving ethical dilemmas, a follower should always ask: ‘Where do I draw the line?’

Leadership and empowerment
 Empowerment is the process through which managers enable and help others to gain power and achieve influence within the organisation.  Effective leaders empower others by providing them with the information, responsibility, authority, and trust to make decisions and act independently within their area of expertise.  Tips on how leaders can empower others. These tips are the following: 1. Get others involved in selecting their work assignments and the methods for accomplishing tasks. 2. Create an environment of cooperation, information sharing, discussion and shared ownership of goals. 3. Encourage others to take initiative, make decisions and use their knowledge. 4. When problems arise, find out what others think and let them help design the solutions. 5. Stay out of the way; give others the freedom to put their ideas and solutions into practice. 6. Maintain high morale and confidence by recognising successes and encouraging high performance.

Leadership traits and behaviours
Search for leadership traits
 The great person theory of leadership sought to identify successful leaders and the characteristics that made them great.  Research findings o o o Researchers have been unable to isolate a definitive profile of effective leadership traits. Research indicates that physical traits such as height, weight and physique have no relationship to leadership success. Nevertheless, some personal traits, such as drive, self-confidence, creativity, cognitive ability, business knowledge, motivation, flexibility, and honesty and integrity are considered to be important for leadership success.

Focus on leadership behaviours
 Leadership behaviour theories focus on how leaders behave when working with followers.  Leadership style is the recurring pattern of behaviours exhibited by a leader.  Research on leadership behaviour has revealed two basic underlying dimensions: o Concern for the task to be accomplished o Concern for the people doing the work  A leader high in concern for task engages in the following behaviours: o plans and defines work to be done o assigns task responsibilities o sets clear work standards

Lecture Notes by Mr. Mujeeb Khan 0333-9471388


 Management in Organization

o o

urges task completion monitors performance results.

 A leader high in concern for people engages in the following behaviours: o acts warm and supportive toward followers o develops social rapport with followers o respects the feelings of followers o is sensitive to followers’ needs o shows trust in followers.  Blake and Mouton Leadership Grid identifies alternative leadership styles that reflect different combinations of concern for task and concern for people. The Grid also identifies a preferred leadership style. 1. 2. 3. 4. 5. Team management is the preferred leadership style; it reflects a high concern for both people and the task. Authority-obedience management reflects a high concern for the task and a low concern for people. Country club management reflects a high concern for people and a low concern for the task. Impoverished management reflects a low concern for both the task and people. Middle-of-the-road management is non-committal with respect to both task and people concerns.

Contingency approaches to leadership
Basic nature of contingency theories of leadership  Modern leadership theories reflect a contingency perspective that attempts to match situational demands with appropriate leader behaviours.

Fiedler’s contingency model
 This model is based on the premise that good leadership depends on a match between leadership style and situational demands.  The least-preferred co-worker scale (LPC scale) is designed to measure a person’s leadership style as reflected in the tendency to behave as either a task-motivated or a relationship-motivated leader. Fiedler believes that leadership style is part of one’s personality; therefore, it is relatively enduring and difficult to change.  Fiedler argues that the leadership style must be fit to the situation. The amount of situational control is crucial in determining the correct style-situation fit.  The following three contingency variables are used to diagnose situational control: 1. 2. 3. Quality of leader-member relations (good or poor). The degree to which the group supports the leader. Degree of task structure (high or low). The extent to which task goals, procedures, and guidelines are clearly spelled out. Amount of position power (strong or weak). The degree to which the position gives the leader power to reward and punish subordinates.

Lecture Notes by Mr. Mujeeb Khan 0333-9471388

10.|Leadership  5

 There are eight leadership situations that result from the possible combinations of the contingency variables Fiedler’s research results regarding the situations in which task-oriented and relationship-oriented leaders are most effective.  Fiedler’s results can be stated as two propositions: Proposition 1: A task-oriented leader will be most successful in either very favourable (high control) or very unfavourable (low control) situations. Proposition 2: A relationship-oriented leader will be most successful in situations of moderate control.

Hersey–Blanchard situational leadership model
 This contingency theory suggests that successful leaders adjust their styles depending on the readiness of followers to perform in a given situation.  Readiness refers to how able, willing and confident followers are in performing required tasks.  There are four possible leadership styles that results from different combinations of task-oriented and relationship-oriented behaviours and their relationships to follower readiness. o o o o Delegating. Allowing the group to make and take responsibility for task decisions; a low-task, low-relationship style. This style works best in high-readiness situations. Participating. Emphasising shared ideas and participative decisions on task directions; a lowtask, high-relationship style. This style works best in low- to moderate-readiness situations. Selling. Explaining task directions in a supportive and persuasive way; a high-task, highrelationship style. This style works best in moderate- to high-readiness situations. Telling. Giving specific task directions and closely supervising work; a high-task, lowrelationship style. This style works best in low-readiness situations.

 Hershey and Blanchard believe the leader’s style can and should be changed as followers mature over time.  If the correct leadership styles are used in lower readiness situations, followers will ‘mature’ and grow in ability, willingness and confidence.

House’s path–goal leadership theory
 According to path–goal theory, effective leadership clarifies the paths through which followers can achieve both task-related and personal goals, helps people progress along these paths, removes barriers to goal accomplishment, and provides appropriate rewards for task accomplishment.  Four leadership styles are used in dealing with path–goal relationships. 1. Directive leadership: Letting subordinates know what’s expected; giving directions on what to do and how; scheduling work to be done; maintaining definite standards of performance; and clarifying the leader’s role in the group. 2. Supportive leadership: Doing things to make the work pleasant; treating group members as equals; being friendly and approachable; and showing concern for the well-being of subordinates. 3. Achievement-oriented leadership: Setting challenging goals; expecting the highest levels of performance; emphasising continuous improvement in performance; and displaying confidence in meeting high standards.

Lecture Notes by Mr. Mujeeb Khan 0333-9471388


 Management in Organization

4. Participative leadership: Involving subordinates in decision making; consulting with subordinates; asking for suggestions from subordinates; using subordinates’ suggestions when making decisions.  Predictions and managerial implications o The path–goal model advises managers to always use leadership styles that complement situational needs. An effective leader contributes things that are not already present (i.e. he/she avoids being redundant).  The key contingency variables include subordinate characteristics (ability, experience and locus of control) and work environment (task structure, authority system and work group). o o o o When job assignments are ambiguous, directive leadership is needed to clarify task objectives and expected rewards. When worker self-confidence is low, supportive leadership is needed to increase confidence by emphasising individual abilities and offering needed task assistance. When performance incentives are poor, participative leadership is needed to clarify individual needs and identify appropriate rewards. When task challenge is insufficient, achievement-oriented leadership is needed to set goals and raise performance aspirations.

 Substitutes for leadership o Path–goal theory has contributed to the recognition of substitutes for leadership — aspects of the work setting and the people involved that can reduce the need for a leader’s personal involvement. Possible substitutes for leadership include subordinate characteristics (ability, experience, and independence); task characteristics (routineness and availability of feedback); and organisational characteristics (clarity of plans and formalisation of rules and procedures).


Vroom–Jago leader-participation model
 This model, which is sometimes referred to as normative decision theory, helps a leader choose the method of decision making that best fits the nature of the problem situation.  Alternative decision-making methods 1. 2. 3. Authority decision. The leader makes the decision alone and then communicates it to the work group. Consultative decision. The leader makes the decision after asking group members for information, advice or opinions. Group decision — all members participate in making a decision and work together to achieve a consensus regarding the preferred course of action.

 Each of the three decision methods is appropriate in different problem situations. The problem situations are characterised in terms of decision quality and decision acceptance. o Decision quality is based on the location of information needed for problem solving. o Decision acceptance is based on the importance of subordinate acceptance to eventual solution implementation.  Leaders should use group-oriented and participative decision methods when: o they lack sufficient information to solve a problem by themselves

Lecture Notes by Mr. Mujeeb Khan 0333-9471388

10.|Leadership  7

o o o

the problem is unclear and help is needed to clarify the situation acceptance of the decision by others is necessary for its implementation adequate time is available to allow for true participation.

 Leaders should use more authority-oriented decision methods when: o they have greater expertise to solve a problem o they are confident and capable of acting alone o others are likely to accept the decision they make o little or no time is available for discussion.

Issues in leadership development
Basic leadership trends  Current leadership trends reflect the fundamental fact that this is an era of superleaders. Leaders who, through vision and strength of personality, have a truly inspirational impact on other persons.  Charismatic leaders develop special leader-follower relationships and inspire others in extraordinary ways.

Transformational leadership
 Transformational leadership describes someone who is truly inspirational as a leader and who arouses others to seek extraordinary performance accomplishments.  Transactional leadership describes someone who is methodical as a leader and keeps others focused on progressing toward goal accomplishment. o Transactional leadership is a building block that helps support transformational leadership. By itself, transactional leadership is insufficient to meet contemporary leadership challenges.

 Characteristics of transformational leaders o o o o o o Vision. Having ideas and a clear sense of direction; communicating them to others; developing excitement about accomplishing shared ‘dreams’. Charisma. Arousing others’ enthusiasm, faith, loyalty, pride, and trust in themselves through the power of personal reference and appeals to emotion. Symbolism. Identifying ‘heroes,’ offering special rewards, and holding spontaneous and planned ceremonies to celebrate excellence and high achievement. Empowerment. Helping others develop, removing performance obstacles, sharing responsibilities, and delegating truly challenging work. Intellectual stimulation. Gaining the involvement of others by creating awareness of problems and stirring their imagination to create high-quality solutions. Integrity. Being honest and credible, acting consistently out of personal conviction, and by following through on meeting commitments.

Emotional intelligence
 Emotional intelligence is the ability of people to manage themselves and their relationships effectively.  A leader’s emotional intelligence significantly influences his or her effectiveness, especially in senior management positions.

Lecture Notes by Mr. Mujeeb Khan 0333-9471388


 Management in Organization

 Emotional intelligence skills can be learned at any age.  There are five components of emotional intelligence in which people should strive to develop competency. These components are: 1. 2. 3. 4. 5. Self-awareness. The ability to understand one’s own moods and emotions, and understand their impact their impact on one’s work and on others. Self-regulation. The ability to think before acting, and to control otherwise disruptive impulses. Motivation. The ability to work hard with persistence, and for reasons other than money or status. Empathy. The ability to understand the emotions of others, and to use this understanding to better relate to them. Social skill. The ability to establish rapport with others, and to build good relationships and networks.

Gender and leadership
 Research evidence clearly indicates that both women and men can be effective leaders; however, men and women tend to have somewhat different leadership styles.  Women tend to use interactive leadership that focuses on building consensus and good interpersonal relations through communication and involvement. This style shares qualities with transformational leadership.  Men tend to take a more transactional approach to leadership, relying more on directive and assertive behaviours, and using authority in a traditional ‘command and control’ sense.  Given the current emphasis on shared power, communication, cooperation, and participation in new-form organisations, interactive leadership appears to be an excellent fit with the demands of a diverse workforce and the new workplace.  Regardless of whether the relevant behaviours are displayed by men or women, it seems clear that future leadership success will rest more on one’s capacity to lead through positive relationships and empowerment.

Drucker’s ‘old-fashioned’ leadership
 Peter Drucker views leadership as much more than charisma — it is ‘good old-fashioned’ hard work.  Drucker’s three essentials of leadership (or what is necessary to do is ‘good old-fashioned’ hard work) are: 1. 2. 3. defining and establishing a sense of mission accepting leadership as a ‘responsibility’ rather than a rank earning and keeping the trust of others.

Ethical aspects of leadership
 Integrity involves the leader’s honesty, credibility and consistency in putting values into action.  Integrity is an essential element of transformational leadership and good old-fashioned leadership.  In writing about the moral aspects of leadership, John Gardner argues that leaders have a moral obligation to supply the necessary spark to awaken the potential of each individual.

Lecture Notes by Mr. Mujeeb Khan 0333-9471388

10.|Leadership  9

 With moral leadership, good managers instil a sense of ownership in followers by being truly willing to let others do their best.

Lecture Notes by Mr. Mujeeb Khan 0333-9471388

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