Leadership

in Organizations

What it is like to work for a boss

who?

Takes all the credit for work done by others.

Is selfish and rude.
Makes mistakes and blames others.
Is tyrannical and cruel.
Cares only about himself/herself.
Is threatened by competence.
Is dishonest and unfair.
Is currupt

 Have you ever been a victim of a poor leader?

How do you feel about the good leaders you
have known?

What is Leadership?
Leadership is an influence process. It requires a
relationship not just the title.
It is initiating and guiding others to achieve the
groups goals.
It means leaving a mark on others. It must inspire and
not just compel or direct followers.
It demands trust.
Leaders are not dictators, they draw power from non
coercive sources.

The Importance of Leadership

No other factors is more important for work
morale and job performance than leaders.

Effective leaders have the ability to attract

capable people, build trust, motivate them for
the best efforts and achieve the best result.

Leader vs. Manager

Manager

Leader

Administers

Innovates

A copy

An original

Maintains

Develops

Relies on control

Inspires trust

Short range view

Long term perspective

Eye on the bottom line

Eye on the horizon

Does things right

Does the right thing

Leadership Perspectives

The trait perspective

The behavior perspective
The contingency theories
The change oriented leadership: Charismatic
and Transformational leadership
The LMX theory
The Inspirational perspective : authentic
leadership, servant leadership

The Trait Approach

Great Person Theory
The view that leaders
possess special traits that
set them apart from
others and that these
traits are responsible for
their assuming positions
of power and authority.

Leadership Characteristics

Leadership Behavior
Autocratic Leadership Style: A style of
leadership in which the leader makes all
decisions unilaterally.
Participative Leadership Style: A style of
leadership in which the leader permits
subordinates to take part in decision making
and also gives them a considerable degree of
autonomy in completing routine work
activities.

Autocratic-Delegation Continuum
An approach to leadership describing the ways in which leaders allocate influence to
subordinates. This ranges from controlling everything (autocratic) to allowing
others to make decisions for themselves (delegating). Between these two extremes
are more participative forms of leadership consulting and make joint decisions.

Two-Dimensional Model of Participation

Initiating Structure & Consideration

Initiating Structure: Activities by a leader
designed to enhance productivity or task
performance. Leaders who focus primarily on
these goals are described as demonstrating a
task-oriented style.
Consideration: Actions by a leader that
demonstrate concern with the welfare of
subordinates and establish positive relations with
them. Leaders who focus primarily on this task
are often described as demonstrating a personoriented style.

Dimensions of Leader Behavior

The Managerial Grid

Leader-Member Exchange
A theory suggesting that
leaders form different
relations with various
subordinates and that
their nature can exert
strong effects on
subordinates
performance and
satisfaction.

Leader-Member Exchange (LMX) Theory

In Groups
Members are similar to
leader
In the leaders inner circle
of communication
Receives more time and
attention from leader
Gives greater
responsibility and
rewards

Out Groups
Managed by formal
rules and policies
Receive less of the
leaders attention /
fewer exchanges
More likely to
retaliate against the
organization

Charismatic Leadership
Charisma means gift in Greek

Unconventional
Behavior

Sensitivity to
Followers

Vision

Personal Risk

Charismatic Leadership
How do charismatic leaders influence followers?

Articulate a
Vision

Create a
Vision
Statement

Create a new
set of Values

Demonstrate
the Vision

Reactions to Charismatic Leaders

Above-normal levels of performance
High levels of devotion, loyalty, and reverence
toward the leader
Enthusiasm for and excitement about the leader
and his or her ideas
In general, reactions tend to be highly polarized
people either love them or hate them

Transformational & Transactional Leaders

Transformational leaders
Leading -- changing the organization to fit the environment
Develop, communicate, enact a vision

Transactional leaders
Managing -- linking job performance to rewards
Ensure employees have necessary resources
Apply contingency leadership theories

Transformation vs. Transactional Leadership

Transformational
Leadership

Transactional
Leadership

Leader gains subordinates

compliance by:

Inspiring, empowering,
and coaching followers

Exchange of rewards
and benefits

Appeals focus on:

Organizational and
common good interests

Self-interest

Type of planned change:

Major organizational
change

Routine changes

Characteristics of Transformational Leaders

Intellectual Stimulation: Transformational leaders help
their followers recognize problems and ways of solving
them.
Individualized Consideration: Transformational leaders
give their followers the support, encouragement, and
attention they need to perform their jobs well.
Inspirational Motivation: Transformational leaders clearly
communicate the importance of the companys mission
and rely on symbols (e.g., pins and slogans) to help focus
their efforts.

Contingency Theories
Any of several theories that recognize that
certain styles of leadership are more effective
in some situations than others.
Theories include

LPC Contingency Theory

Situational Leadership Theory
Path-Goal Theory
Substitutes for Leadership

LPC Contingency Theory

A theory suggesting that leader effectiveness is
determined both by characteristics of leaders (their LPC
scores) and by the level of situational control they are
able to exert over subordinates.

LPC: Short for esteem for least preferred coworker, a

personality variable distinguishing individuals with
respect to their concern for people (high LPC) and their
concern for production (low LPC).

LPC Contingency Theory --Situational

determinants of effectiveness
Leaders relations with group members
Degree of structure in the task being
performed
Leaders position power

LPC Contingency Theory

Situational Leadership Theory

A theory suggesting that the most
effective style of leadership depends
on the extent to which followers
require guidance, direction, and
emotional support.

Situational Leadership Theory

Subordinates
Readiness level

Leadership Style

R1

Unable & Unwilling

Telling (High Task & Low

Relationship oriented)

R2

Unable but Willing

Selling (High Task & High

Relationship oriented)

R3

Able but Unwilling

Participating (Low Task &

High Relationship oriented)

R4

Able & Willing

Delegating (Low Task & Low

Relationship oriented)

Path-Goal Theory
Leaders job is to increase subordinate
satisfaction and effort
Increase personal payoffs to subordinates for
work-goal attainment
Make the path to these payoffs easier to travel
Clarify it
Reduce roadblocks and pitfalls
Increase opportunities for personal satisfaction en
route

Path-Goal Theory
Two basic leadership behaviors
Supportive leadership
Directive leadership

Assumes that a particular leadership approach will

work better in some task situations than others
Assumes that leaders can modify their styles to suit
the situation.

Path-Goal Theory
IF
The task is:
Frustrating, boring, stressful,
structured, and routine

AND
Subordinates are:
Highly experienced and
competent

Supportive
Leadership Style
(Person oriented)

Goal
(i.e., increased
performance)

IF
The task is:
Interesting but ambiguous,
nonstressful, unstructured,
varied

AND
Subordinates are:
inexperienced

Directive Leadership
Style
(Task oriented)

Leadership Across Different National

Cultures
Examples of
leader attributes
universally viewed
as positive
+
+ Trustworthy
+ Encouraging
+ Honest
+ Decisive
+ Communicative
+ Dependable

Examples of
leader attributes
universally viewed
as negative
- Noncooperative
- Irritable
- Dictatorial
- Ruthless
- Egocentric
- Asocial

Examples of leader
attributes viewed as
positive or negative
depending on the culture
+/+/- Ambitious
+/- Individualistic
+/- Cunning
+/- Cautious
+/- Class Conscious
+/- Evasive

Source: R. J. House, Cultural Influences on Leadership and Organizations: Project GLOBE, in W. Mobley (ed.),
Advances in Global Leadership, vol. 1 (Stamford, CT: JAI Press, 1998).

The Nurturant Task Leader

Most effective in India.
Caters to the needs and values of Indian
subordinates who cherishes:
Personalized rather than contractual relationship, are
dependent prone, accept hierarchy, and have weak
work values
NT leaders acts like a nurturing superior, is
committed to the growth and well being of
subordinates and makes his nurturance contingent
upon task performance

Substitutes for Leadership

The view that high levels of skills among subordinates or
certain features of technology and organizational
structure sometimes serve as substitutes for leaders,
rendering their guidance or influence superfluous.
Examples:
Individual characteristics such as a high level of knowledge,
commitment, or experience on the part of subordinates.
Jobs that are structured in ways that make direction and influence
from a leader redundant.
Characteristics of organizations such as work norms, group
cohesion, and technology.

Leadership & the New Workplace

Globalization, e commerce, virtual organizations,
and increasing diversity have all contributed to a shift
in how we think about and practice leadership.
Some recent conceptualizations of leadership include
Level 5 leadership, interactive leadership, and
servant leadership.

Level 5 Leadership
Level 5 leadership refers to the highest level in a hierarchy of manager
capabilities. These levels are:
Level 1: A highly capable individual, who is productive contributor, offers
talent, knowledge, skills, and good work habits as an individual
employee.
Level 2: A contributing team member who contributes to team the
achievement of team goals, and works effectively with others in a
group.
Level 3: A competent manager who sets plans and organizes people for
the efficient and effective pursuit of objectives.
Level 4: A highly effective leader who builds widespread commitment to
clear and compelling vision and stimulates people to high
performance.
Level 5: The level 5 leader who builds an enduring great organization
through a combination of personal humility and professional resolve.

Level 5 Leadership (Contd)

A key characteristic of Level 5 leaders is an almost complete
lack of ego. In contrast to the view of great leaders as largerthan-life personalities with strong egos and big ambitions,
Level 5 leaders often seem shy and unpretentious. Although
they accept full responsibility for mistakes, poor results, or
failures, they give credit for success to other people. Apart
from their personal humility, Level 5 leaders have a fierce
determination to do whatever it takes to produce great and
lasting results for their organizations.

Trust as the Foundation of Leadership

It is impossible to lead people who do not trust you
Inspiring trust is the job # 1 for a leader.
The job of leader is to promote trust based on transparency,
clear expectations and strong accountability and not blind
trust.
Trust is confidence based on leaders character and
competence.
Only character and no competence or only competence and
no character do not work.
When followers trust a leader they are ready to take risk,
confident that their rights and interest will not be abused

Authentic Leaders
Authentic leaders know who they are,
what they believe in and value, and act
upon those values and beliefs.

Ethics and Leadership

Leadership is not free from values.
When we assess leadership, we must
assess not just the goals themselves but
also the means by which those goals are
achieved.

What People Expect from a Leader?

Three Important Expectations:

1.
2.
3.

Integrity/Honesty
Job Knowledge
People-building skills

Moral and Ethical Issues in Leadership

Hardly anyone will disagree that Hitler was an
effective leader. But was he also a good leader?
Increased corporate scandals, corruption, and fraud
cases even in Institutions like Tabung Haji demands
urgent attention to moral and ethical dimensions of
leadership.
Moral leadership involves ethical conduct on the part
of the leaders, as well as the capacity to inspire such
conduct in followers and create ethical cultures.

Moral and Ethical Issues in Leadership

Moral or ethical leadership is not about developing and
printing codes of ethics for show off and satisfy the
government and other stakeholders.
Commitment to moral leadership requires the integration of
ethical concerns in all activities.
Leaders set moral example from their own behavior.
Leaders walk the talk.
If leaders withhold information, play favorite with promotion,
stifle dissent, or pursue their own self interest then no
mission and vision statement will have any value.

Low vs. High Trust

It is like paying additional taxes vs. earning dividends.
When trust is low the speed of work goes down,
when it is high the work gets done faster.
According to an estimate for US companies the cost
of complying with federal rules and regulations due
to lack of trust is $ 1.1 trillion (11% of the GDP).
High trust companies outperform low trust
companies by 300 percent (Covey, 2009).

Perceived Moral Failings of CEOs & Top

Managers in US

Hypocrisy
Favoritism
Dishonesty
Promise breaking
Disrespectful

62%
60%
53%
52%
37%

Whom do you trust most?

BIEM (Ethics Institute of Malaysia), Star News, April 19, 2006

Occupation

Malaysia

U.K

Doctors

Teachers

Professors

Priests

Scientists

Judges

TV New readers

Journalists

13

Trade union officials

11

Police

10

Civil Servants

11

10

Ordinary men/women in the streets

12

Government Minsiters

13

14

Business Leaders

14

12

Politicians

15

15

How do you build trust?

Practice openness: Keep people informed

Be fair: Be objective and fair, equity perception in reward allocation,
objective performance appraisal
Speak your feelings: Dont behave like robots
Tell the truth
Be honest
Show consistency: Let your ethical values and beliefs guide your behavior
Fulfill promises
Maintain confidences: Dont leak someones confidential matters to
others
Demonstrate competence: Develop admiration and respect from others
through your knowledge and competence

Servant Leadership
In the new place, the best leaders give
importance not only to the work but to the
development of workers as well.
Servant leadership is a leadership upside
down because leaders transcend self interest
to serve others and the organization.

Servant Leadership (Contd)

They give things awaypower, ideas,
information, recognition, credit for
accomplishments.
Such leaders truly value people, encourage
participation, share power, enhance others
self worth, and unleash peoples creativity, full
commitment, and natural impulse to learn.