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Chapter 7

Chapter 7. LEADERSHIP. INTRODUCTION. Leadership entails developing a vision for the unit or organization or group led, managing their resources under their direction, providing effective leadership that enhances productivity and maintaining important relationships internally and externally.

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Chapter 7

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  1. Chapter 7 LEADERSHIP

  2. INTRODUCTION • Leadership entails developing a vision for the unit or organization or group led, managing their resources under their direction, providing effective leadership that enhances productivity and maintaining important relationships internally and externally.

  3. DEFINITION OF LEADERS AND LEADERSHIP • A leader is a person that holds a dominant or superior position within its field, and is able to exercise a high degree of control or influence over others.  • Leadership can be defined as a process by which one individual influences others toward the attainment of group or organizational goals.

  4. EARLY THEORIES – TRAITS THEORY • Trait theories assume that people inherit certain qualities and traits that make them better suited to leadership. Among the core traits identified are: • Achievement drive • Leadership motivation • Honesty and integrity • Self-confidence • Cognitive ability • Knowledge of business • Emotional maturity • Others

  5. EARLY THEORIES – BEHAVIOURAL THEORIES OHIO STATE STUDIES • Ohio State University identified two distinct leader’s behaviour which are Consideration (people-oriented behavioural leaders) and Initiating Structure (task-oriented leaders). MICHIGAN STATE STUDIES • The studies resulted in two general leadership behavioursor orientations: an employee orientation and a production orientation.

  6. EARLY THEORIES – BEHAVIOURAL THEORIES (cont.) MANAGERIAL GRID • The Managerial Grid is based on two behavioural dimensions: • Concern for People – This is the degree to which a leader considers the needs of team members, their interests, and areas of personal development when deciding how best to accomplish a task. • Concern for Production – This is the degree to which a leader emphasizes concrete objectives, organizational efficiency and high productivity when deciding how best to accomplish a task.

  7. CONTINGENCY APPROACH FIEDLER CONTINGENCY MODEL • According to Fiedler, if an organization attempts to achieve group effectiveness through leadership, then there is a need to assess the leader according to an underlying trait, assess the situation faced by the leader, and construct a proper match between the two.

  8. CONTINGENCY APPROACH (cont.) HERSEY AND BLANCHARD’S SITUATIONAL THEORY • According to this model, the leader has to match the leadership style according to the readiness of subordinates which moves in stages and has a cycle. • Therefore, this theory is also known as the life-cycle theory of leadership.

  9. CONTINGENCY APPROACH (cont.) HOUSE’S PATH-GOALTHEORY • According to House’s path-goal theory, a leader’s effectiveness depends on several employees and environmental contingent factors and certain leadership styles which are: • Directive • Supportive • Participative • Achievement-oriented

  10. CONTEMPORARY APPROACH LEADER-MEMBER EXCHANGE THEORY • The theory states that all relationships between leaders and subordinates go through three stages. These are: • Role-taking • Role-making • In-Group • Out-Group • Routinization

  11. CONTEMPORARY APPROACH (cont.) THEORY Z • Theory Z management tends to promote stable employment, high productivity and high employee morale and satisfaction. CHARISMATIC LEADERSHIP THEORY • Charismatic leaders have a clear vision of where they want to go and how to get there and they are fantastic at articulating that vision to others. • They are sensitive to their surroundings and to the needs of their followers and potential followers.

  12. TRANSFORMATIONAL VS TRANSACTIONAL LEADERSHIP THEORY Transformational Leadership • Transformational leadership may be found at all levels of the organization: teams, departments, divisions, and the organization as a whole. • Such leaders are visionary, inspiring, daring, risk-takers and thoughtful thinkers.

  13. TRANSFORMATIONAL VS TRANSACTIONAL LEADERSHIP THEORY (cont.) • Transactional leadership involves motivating and directing followers primarily through appealing to their own self-interest. • The power of transactional leaders comes from their formal authority and responsibility in the organization.

  14. TRUST AND ETHICS IN LEADERSHIP • Trust is a belief or hope that another will neither through words, actions or decisions act opportunistically. • Ethics create a sense of right and wrong in the organizations and often when the law fails, it is the ethics that may stop organizations from harming the society or environment.

  15. CREATING EFFECTIVE LEADERS • Earn respect by giving respect. • Ensure everyone knows exactly what their roles are. • Human beings crave appreciation. • Set followers’ expectations high. • Develop successes from failures. • Challenge followers daily to achieve more. • Lead followers by example. • Great leaders are masters of communication. • Create a fun and enjoyable but extremely serious workplace. • Great leaders have the reputation of high integrity.

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