Leadership

1. Leadership

2. Leadership… Who is a leader? What quality a leader should have? Whom to call a leader? Everybody seems to have a say when it comes to Leadership!! Historical figures (Alexander, Napolean, Hitler??) From business world (JRD Tata, Dhirubhai Ambani, Bill Gates etc..)

3. Leadership and the nature of an extraordinary lifeMichael C. Jensen, Harvard Business School • Be committed to a never-ending search for truth. • Take personal responsibility for the problems in your life. • Be committed to delaying gratification. • Be a person of honesty and integrity. • Be someone who is enrollable in life. • Be committed to living a life in which you do not make others wrong, you do not invalidate others, and you do not dominate others. • Be committed to courage. • Be a person who produces results in the world with absolutely no force. • Be a person who is peaceful in the chaos of life. • Be committed to the proposition that “Happiness is not the absence of problems, and it is not the accumulation of wealth or prestige”. • Be committed to managing success, while being aware of its dangers.

4. Leadership… Leadership can be considered as the process of influencing others to get the job done effectively over a sustained period of time. Three Types of Influence Patterns Compliance Identification Internalization

5. Leadership… Influence is the process of affecting potential behavior of others. Whereas, Power is the capacity to exert influence. Sources of Power (French & Raven, 1959) Position Power: Legitimate Power, Reward Power, Coercive Power. Personal Power: Referent Power and Expert Power (information power)

6. Trait Theory Leadership Traits: represent the personal characteristics that differentiate leaders from followers. Historic findings reveal that leaders and followers vary by- intelligence- dominance- self-confidence- level of energy and activity- task-relevant knowledge Contemporary findings show that- people tend to perceive that someone is a leader when he or she exhibits traits associated with intelligence, masculinity, and dominance- people want their leaders to be credible- credible leaders are honest, forward-looking, inspiring, and competent The trait theory provides descriptive insights but has little analytical or predictive power.

7. Trait Theory(continued) Gender and leadership- men and women differ in the type of leadership roles they assume in work groups: men display more task leadership and women exhibit more social leadership- leadership styles vary by gender: women are more democratic and men are more autocratic and directive- female and male leaders are equally effective- men are perceived as more effective than women when the job is defined in masculine terms, and women are more effective than men in roles defined in less masculine terms- male leaders are perceived as more effective than females when there are a greater percentage of male leaders and male direct reports; the same positive bias is not true for women leaders

8. Behavioral Styles Theory • IOWA Leadership Research : Students were divided into three groups and put under three types of leadership styles: Authoritarian, Democratic and Laissez faire. Maximum number of aggressive behaviors were observed under laissez faire. • Ohio State Studies identified two critical dimensions of leader behavior.1. Consideration: creating mutual respect and trust with followers2. Initiating Structure: organizing and defining what group members should be doing. These two dimensions are not two extremes of the same continuum. • University of Michigan Studies identified two leadership styles that were similar to the Ohio State studies- one style was employee centered and the other was job centered.

9. OHIO STUDY (Contd…) Table : The four styles of leader behavior as per Ohio study

10. Group Exchange Theory • This theory posits that there must be positive exchange between the leader and followers in order for the group goals to be accomplished. • Followers impact on leaders-Some important research studies indicate that followers/subordinates may actually affect leaders as much as leaders affect them. • Vertical Dyad Linkage model (VDL)- It states that leaders treat individual subordinates differently. They develop dyadic (two persons) relationships which affect the behavior of both leader and subordinates.

11. Contingency theories of Leadership Research shows that there is not one best style of leadership. The effectiveness of a particular leadership style depends on the situation at hand. Tannenbaum and Schmidt’s Leadership pattern The use of authority by the manager (boss-centered leadership style) or the area of freedom given to subordinates (subordinate-centered leadership) is a function of (1) forces in the manager (value system, confidence in subordinates, leadership predisposition and feelings of security and insecurity), (2) forces in the subordinates (their needs for dependence or independence, readiness to assume responsibility; tolerance for ambiguity abilities; knowledge and experience) and (3) forces in the situation (type of organization, group effectiveness, time pressure and the nature of the problem itself).

12. A successful leader is one who can accurately assess the forces and then is able to be flexible enough to adopt the most functional leadership style Subordinate-centered leadership Boss Centered leadership Use of authority by manager Area of freedom for subordinates Manager makes decision and announces Manager “sells” decision Manager presents problems and gets suggestions Manager lets group make decision

13. Fiedler’s Contingency Model This model contained the relationship between leadership style and the favourableness of the situation. Situational favourableness was described by Fiedler in terms of three empirically derived dimension: Three situational variables in Fiedler’s model Leader-Member Relationship (which is the most critical variable in determining the situation’s favourableness). Leader’s Position Power (which is the second most important input into favourableness of the situation). The Degree of Task Structure (obtained through formal authority, which is the third most critical dimension of situation)

14. Fiedler’s Contingency Model High Task motivated Leadership Performance Relationship motivated Low I II III IV V VI VII VIII Situational High Control Moderate Control Low Control ControlLeader-member relations Good Good Good Good Poor Poor Poor PoorTask Structure Structured Unstructured Structured UnstructuredPosition power Strong Weak Strong Weak Strong Weak Strong Weak

15. Fiedler’s Contingency Model • Research support for the model Fiedler, and in particular his students have provided almost all support for the model. He cites nearly 30 studies in a wide variety of organizations and concluded that “ the theory is highly predictive and that the relations obtained in the validation studies are almost similar to those obtained in the original studies”. • Critical analysis of the model Some researchers have been critical of the procedures and statistical analyses of the studies used to support the validity of the model.

16. Contd… • Contribution # It was the first visible leadership theory to present the contingency approach. # It emphasized the importance of both the situation and the leader’s characteristics in determining leader effectiveness. • Fiedler’s Cognitive resource theory (CRT) He identified the situation under which a leader’s cognitive resources, such as intelligence, experience and technical expertise, relate to group and organizational performance. Based on Fiedler and his colleagues’ research, CRT predicts: # More intelligent leaders develop better plans, decisions and action strategies than less intelligent leaders. # Intelligence contributes more strongly to group performance if the leader is directive and the group members are motivated and supportive of the leader.

17. House’s Path-Goal Theory Employee Characteristics- Locus of control- Task ability- Need for achievement- Experience- Need for clarity Leadership Styles- Directive- Supportive- Participative- Achievement oriented Employee Attitudesand Behavior- Job satisfaction - Acceptance of leader- Motivation - Performance Environmental Factors- Employee’s task- Authority system- Work group

18. Path Goal Theory • Directive Leadership: This style is similar to that of the Lippitt and White authoritarian leader. Subordinates know exactly what is expected of them, and the leader gives specific directions. There is no participation by subordinates. • Supportive Leadership: The leader is friendly and approachable and shows a genuine concern for subordinates. • Participative Leadership: The leader asks for and uses suggestions from subordinates but still makes the decisions. • Achievement—Oriented Leadership: The leader sets challenging goals for subordinates and shows confidence that they will attain these goals and perform well.

19. Path Goal Theory Two of the situational factors that have been identified are the personal characteristics of subordinates and the environmental pressures and demands facing subordinates. With respect to the first situational factors, the theory asserts: “Leader behavior will be acceptable to subordinates to the extent that the subordinates see such behavior as either an immediate source of satisfaction or as instrumental to future satisfaction.”

20. Path Goal Theory And, with respect to the second situational factors, the theory states: “Leader behavior will be motivational (e.g., will increase subordinate effort) to the extent that (1) it makes satisfaction of subordinate needs contingent on effective performance, and (2) it complements theenvironment of subordinates by providing the coaching, guidance, support and rewards which are necessary for effective performance and which may otherwise be lacking in subordinates or in their environment.”

21. Using one of the four styles contingent upon the situational factors, the leader attempts to influence subordinates’ perception and motivate them, which in turn leads to their role clarity, goal expectancies, satisfaction and performance. This is specifically accomplished by the leader as follows: Recognizing and/or arousing subordinates’ need for outcomes over which leader has some control. Increasing personal pay-offs to subordinates for work-goal attainment. Making the path to those pay-offs easier to travel by coaching and directions. Helping subordinates clarify expectancies. Reducing frustrating barriers. Increasing the opportunities for personal satisfaction contingent on effective performance.

22. Path Goal Theory Research findings: • Studies of seven organizations have found that leader directiveness is (a) positively related to satisfaction and expectations of subordinates engaged in ambiguous tasks and (b) negatively related to satisfaction and expectancies of subordinates engaged in clear tasks. • Studies involving ten different samples of employees found that supportive leadership will have its most positive effect on satisfaction for subordinates who work on stressful, frustrating, or dissatisfying tasks.

23. Path Goal Theory 3. In a major study in an industrial manufacturing organization, it was found that in nonrepetitive, ego-involving tasks, employees were more satisfied under participative leader than under non-participative leader. 4. In three separate organizations it was found that for subordinates performing ambiguous, nonrepetitive tasks, the higher the achievement orientation of the leader, the more subordinates were confident that their efforts would pay off in effective performance.

24. Hershey and Blanchard’s Life–Cycle or Situational Approach • Two major styles of leadership 1)Task style and 2) Relationship style The level of maturity is defined by three criteria • Degree of achievement motivation, • Willingness to take responsibility and • Amount of education and/or experience.

25. Hershey and Blanchard’s Life–Cycle or Situational Approach Four basic styles • Telling style – This is high task, low relationship style and is effective when followers are at a very low level of maturity • Selling style - This is high task, high relationship style and is effective when followers are on the low side of maturity • Participative style - This is low task, high relationship style and is effective when followers are on the high side of maturity • Delegating style - This is low task, low relationship style and is effective when followers are at a very high level of maturity

26. Likert’s Four Systems ofManagement • System 1 (Exploitative Autocratic) – Manager has no trust or confidence in subordinates and subordinates do not feel free with their superior. • System 2 (Benevolent Autocratic) - Manager has condescending trust and confidence but subordinates do not feel very free with their superior. • System 3 (Participative) - Manager has substantial but not complete trust and confidence and subordinates rather feel free with their superior. • System 4 (Democratic) - Manager has complete trust and confidence in subordinates in all matters and subordinates feel completely free with their superior.

27. Empirical support for Likert’s Four Systems of Management • Likert and his colleagues have quite consistently found that high producing units were described according to system 3 and 4 while low producing units fell under system 1 and 2. These responses were given irrespective of the manager’s field of experience.

28. Refinement of Likert’s work • An important refinement of Likert’s work is the recognition of three broad classes of variables that affect the relationship between leadership and performance in complex organization. They are as follows- • Causal variables (E.g., organizational structure and management policies and decisions and their leadership styles, skills and behavior). • Intervening variables (goals, attitudes, motivations, etc.) • End result variables (productivity, service, earnings, etc.) He pointed out that there is no direct cause-and-effect relationship between leadership styles and the end result, for e.g., earnings.

29. Charismatic Leadership • This is based on the concept of leaders as being those who ‘by the force of their personal abilities are capable of having profound and extraordinary effects on followers’. • Modern development of charismatic concept is attributed to the work of Robert House. He suggested that ‘charismatic leaders’ are characterized by ‘self confidence and confidence in subordinates, high expectations for subordinates, ideological visions and the use of personal examples’. • Followers of charismatic leaders identify with the leader, exhibit extreme loyalty and confidence in the leader, emulate the leader’s behavior and values and derives self esteem from their relationship with the leader.

30. Extension of Charismatic Leadership theory • Conger and Kanungo treat charisma as an attributional phenomenon and propose that it varies with situation. • Leader traits that foster charismatic attributions include self confidence, impression-management skills, social senstivity and empathy. • Situations that promote charismatic leadership include a crises requiring dramatic change, or followers who are very dissatisfied with the staus quo. • Charismatic leaders are most of the times portrayed as wonderful heroes but there can also be unethical characteristics associated with such leaders.

31. Ethical Uses power to serve others Aligns vision with followers’ needs and aspirations Consider and learns from criticism Open, two way communication Unethical Uses power only for personal gains Promotes own personal vision Censures critical or opposing views One way communication Ethical and Unethical characteristics of Charismatic leaders

32. Ethical Stimulates followers to think independently and to question the leader’s view Coaches, develops, and supports followers; shares recognitions with other Relies on internal moral standards to satisfy organizational and societal goals Unethical Demands own decisions to be accepted without question Insensitive to followers’ needs Relies on convenient external moral standards to satisfy self interests Ethical and Unethical characteristics of Charismatic leaders (contd…)

33. Transformational & Transactional Leadership • Burns (1978) identified two types of political leadership • Transactional leadership – This involves an exchange relationship between leaders and followers, exchanging rewards for the efforts put in by the subordinates. It involves closely monitoring the occurrence of mistakes. • Transformational leadership – This is exercised when the leader intellectually stimulates the subordinates, excites, arouses and inspires them to perform far beyond their own wildest expectations and is development oriented. • Bass concluded transactional leadership is a prescription for mediocrity and that transformational leadership leads to superior performance in organizations facing demands for renewal and change.

34. Transformational & Transactional Leadership • Most of the research on transformational leadership has relied on Bass’ questionnaire which has received some criticism, or qualitative research that simply describes leaders through interviews. • Only recently has empirical research begun to support findings of such earlier researches. • For e.g., field studies have shown that transformational leaders more frequently employ legitimating tactics and engender higher levels of identification and internalization and have better performance.

35. Future of international Leadership studies- Project GLOBE • Project GLOBE started under the general direction of Robert House. • The meta-goal of the GLOBE is to develop, over time, an empirically based theory to describe, understand, and predict the impact of cultural variables on leadership, organizational processes, and the effectiveness of the leader and the processes. Over the past decade, 170 country-based co-investigatorsgathered data from 18,000 managers from 62 countries. • The first goal of the GLOBE project was to develop societal and organizational measures of culture and leader attributes that were appropriate to use across all cultures.

36. Project GLOBE • The opening investigation suggested 9 dimensions of cultures that differentiate societies and organizations. • Some of the preliminary findings released by them suggest 21 specific leader attributes and behaviors that are universally viewed as contributing to leadership effectiveness. • There is also the impact of cultural dimensions. Cultural differences strongly influence the ways in which people think about their leaders as well as societal norms that exist concerning the status, influence, and the privileges granted to leaders.