Topics to be covered

vDeveloping an understanding of
LEADERSHIP Leadership
vDistinction between Manager and
By Leader
Pushpendra Priyadarshi vPersonal effectiveness

vSome researchers define leadership as

Who is a leader?
an integral part of the group process.
• Dictionaries usually define leading as vOthers define it primarily as an
guiding and directing on a course and as influence process
serving as a channel.
• Leader is someone who has commanding vFew see leadership as initiation of a
authority or influence. structure and the instrument of goal
• The researchers have also developed achievement.
many working definitions of leadership. vSome of the recent views even
• Although there is a lot common among consider leaders to be the servants of
them there are certain differences.
followers.

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 Common Elements:- Coming out with a definition
a) First, leadership is a group phenomenon;
there are no leaders without followers. • “Any person who influences individuals
As such leadership always involves
and groups within an organisation, helps
interpersonal influence or persuasion.
them in the establishment of goals, and
b) Leaders use influence to guide groups of
people through a certain course of action guides them toward achievement of those
or toward the achievement of certain goals and thereby allowing them to be
goals. effective.”
c) Presence of leadership assumes some
form of hierarchy within a group.

• Most of the org of the world are over-

Leadership and Management managed and underled. Successful org seek
• Leadership is different from management, but out people with the potential and expose
not for the reason most people think. them with career opportunities.
Leadership isn’t mystical and mysterious. • While improving their ability to lead, the
• It has less to do with having “charisma” or company should remember that strong
other exotic personality traits. leadership with weak management is no
• It is not the province of the ‘chosen few’. better rather worse. Hence the real challenge
• Nor the leadership is necessarily better than is to combine both and use each to balance
or a replacement for it. the other.
Rather leadership and management are two • Not everyone can be good at both so smart
distinctive and complementary system of
action. companies tries to have both in the team.

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 Management Leadership
Difference b/w Management and Leadership
Companies manage By contrast leading an
• Management is about coping with complexity by Planning organisation to constructive
complexity while leadership is about and Budgeting. change begins by setting a
coping with change. direction
• These two different functions – shape the Management develops Equivalent leadership
characteristic activities of management the capacity to achieve its activity, however, is
and leadership. plan by Organising and aligning people.
Staffing.
• Each system of action involves deciding
what needs to be done, creating networks Finally management For leadership achieving
of people and relationship that can ensures plan a requires motivating
accomplish an agenda, and then trying to accomplishment by and inspiring.
ensure that people do the job. controlling and problem
solving.

Setting a Direction: Lou Gerstner at • He instantly brought together people running the card org
and asked about all the principles by which they conducted
American Express business.
• He challenged two widely held beliefs - that the division
• When LG became president of the TRS at Amex in 1979 it should have only one product- green card and that the
was facing one of the biggest challenges of its history.
Many banks were coming up with credit card and product was limited in potential for growth
traveler’s check services. • LG moved to develop entrepreneurial culture, to hire and
• That’s not how LG was looking at the business. He started train people who thrive in it and to clearly communicate to
having deeper understanding of the business and in this them the overall direction. Started rewarding intelligent risk
process began to craft a vision of that looked quite unlike taking and started TRS graduate management programme.
130 yrs old Amex. Also started great performers programme to reward truly
• LG thought TRS had the potential to become a dynamic exceptional customer service.
enterprise. The key was to focus on Global marketplace, • The result- new markets, products and services. By 1988
specifically on affluent customer Amex had been serving. Amex cards were issued in 29 currencies as compared to
• By further segmenting the market, aggressively 11 earlier.
developing a broad range of new products and services
and investing to + productivity at lower cost TRS could • They also focused on two market segments which were
provide the best possible service to customer who had traditionally left out students and women.
money to avail such services.

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 Trait Theories

Leadership Traits:
Traits :
Leadership Theories • Ambition and energy
• The desire to lead
• Honesty and
integrity
• Self
Self--confidence
• Intelligence
• Job-
Job-relevant
knowledge

Great Person Theory - leaders possess special traits which set them apart • The behavioural theory asks “what leaders
from others, and these traits are responsible for their positions of
power and authority
do?”
- leadership is based on characteristics that remain stable over time • This approach is appealing as it offers an
Characteristics of Great Leaders optimistic view of the leadership process.
Leadership motivation - desire to influence others, especially toward
attaining shared goals • we might not be born with the “right stuff”
Personalized power motivation - wish to dominate others, but we can strive to do the ‘right things’.
reflected in an excessive concern with status
Socialized power motivation - desire to cooperate with • Hence the general question underlying the
others, to work with them rather than dominate or
control them behavioural approach is, “what do leaders
Special abilities do that make them effective?”
Cognitive ability - intelligence
Flexibility - ability to recognize which actions are required
and then to act accordingly

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 Leadership Behavior
Behavioral Theories Participative and Autocratic Leadership Behaviors
Autocratic-delegation continuum model - describes how leaders
allocate influence to subordinates

More
Autocratic Participative Delegation
Decision (Leader permits
(Leader is not Consultation Joint Decision others to
influenced by make
• Trait theory: others decisions
Less
Leaders are born, not made. Participative

• Behavioral theory:
Leadership traits can be taught.

Leadership Behavior (cont.)

Two-Dimensional Model of Subordinate Participation
Participative and Autocratic Leadership Behaviors (cont.)
Two-dimensional model of subordinate participation - describes the nature Are subordinates permitted to
of how leaders influence followers participate in making decisions?
Autocratic-democratic dimension - characterizes the extent to which Are subordinates
leaders permit subordinates to take part in decisions told exactly how Yes No
Permissive -directive dimension - characterizes the extent to which to do their jobs? (DEMOCRATIC ) (AUTOCRATIC)
leaders direct the activities of subordinates and tell them how Yes (directive) Directive democrat Directive autocrat
to perform their jobs (makes decisions (makes decisions
participatively; closely unilaterally; closely
- combining the two dimensions yields four possible patterns of supervises subordinates) supervises subordinates)
leader behavior
- no single pattern is best in all circumstances No (permissive) Permissive democrat Permissive autocrat
(makes decisions (makes decisions
participatively; gives unilaterally; gives
subordinates latitude in subordinates latitude in
carrying out their work) carrying out their work)

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 Leadership Behavior Leadership Behavior (cont.)
Person-Oriented and Production-Oriented Leaders Grid Training - a multi-step process to develop concern for people and for
Initiating structure - activities by a leader to enhance productivity or production
task performance Grid seminar - used to determine an individual’s leadership style
Consideration - actions by a leader that demonstrate concern with the Organization-wide training to:
welfare of subordinates and establish positive relations with - help people interact more effectively
them - identify extent to which organization is meeting its
High
strategic goals
Plans made to meet strategic goals

Consideration
Low concern for production High concern for production
and and
High concern for people High concern for people
Plans are implemented
Progress toward meeting goals is assessed continuously

Low High
Initiating Structure

Low concern for production High concern for production

and and
Low concern for people Low concern for people

Low

The Managerial Grid Leaders and Followers

Leader-Member Exchange Model (LMX) - leaders form different relations
1,9 pattern 9,9 pattern with various subordinates and the nature of such dyadic exchanges
“Country club” Team management - can affect subordinates’ performance and satisfaction
environment the ideal style
In-group - favored group of subordinates
(high)
- receive inflated performance ratings, have positive job
9 attitudes, and less likely to resign from their jobs
Concern for People

8 Out-group - subordinates disfavored by leaders

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6 5,5 pattern
Middle-of-the-road
5 management
4 Leader
3
2 Raised Lowered
9,1 pattern Morale, Commitment, In-Group Out-Group Morale, Commitment,
1,1 pattern 1 Task management and Job Performance and Job Performance
impoverished
management (low) 1 2 3 4 5 6 7 8 9
(high)
Concern for Production

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 Leaders and Followers (cont.) Contingency Theories of Leader Effectiveness
Attribution Approach - focuses on leaders’ attributions of follower’s
performance -- i.e., on their perceptions of its underlying causes Contingency Theories of Leadership- recognize that certain leadership styles
are more effective in some situations than others
LPC Contingency Theory - assumes that leader’s contribution to successful
group performance is determined by her/his own traits and by the
Improve follower’s skills characteristics of the situation
LPC - esteem (liking) for the least preferred coworker
- is a stable (i.e., does not change) personality trait
Low LPC leaders - primarily concerned with attaining
internal causes (e.g., skills deficit) Attribution of successful task performance
performance High LPC leaders - primarily concerned with establishing
External causes (e.g., poor facilities) by leader
good relations with subordinates
- situational characteristics that determine leader’s control
Leader-member relations
Task structure
Upgrade work facilities
Position power
Leader match - must match leaders to situations in which they can be
effective

Fiedler’s Model: Defining the Situation LPC Contingency Theory

Low LPC leaders Low LPC leaders Low LPC leaders
are highly effective are highly effective are highly effective
under low under low under low
situational control. situational control. situational control.
High

(as measured by group performance)

Leader Effectiveness
Low LPC
(concern for
production)

High LCP
(concern for
people)

Low Moderate High

Situational Control

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 Findings from Predictions of Leader Effectiveness
Fiedler Model from Fiedler’s Contingency Theory of
Leadership

Contingency Theories of Leader Effectiveness (cont.)

Situational Leadership Theory - the most effective leadership style depends
on the extent to which followers require guidance, direction, and
Path-Goal Theory
emotional support (i.e., the readiness of the followers to do the job)
- four leadership styles
- e.g., telling the most appropriate style when followers lack
readiness (have little job knowledge or willingness to
work without taking direction)
(amount of support required)

High
Participating Selling
Relationship behavior

Delegating Telling
Telling
Low
Low High
Task behaviors
(direct behavior)

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 Contingency Theories of Leader Effectiveness (cont.) Contingency Theories of Leader Effectiveness (cont.)
Path -Goal Theory - subordinates are motivated by a leader only to the extent Normative Decision Theory - focuses primarily on strategies for choosing the
they perceive this individual as helping them to attain valued goals most effective approach to decision making
- effective leadership determined by complex interaction of leader - best approach depends on
behaviors, subordinate characteristics, and aspects of the Quality of the decision - extent to which it will affect
work environment important group processes
Characteristics
Acceptance of the decision - degree of commitment among
of subordinates subordinates needed for its implementation
- answering a set of diagnostic questions about the decision-making
• Ability
• Personality situations eventuates in recommending one or more decision-
making strategies
Leader’s behavior AI - leader makes decision unilaterally using available
• Instrumental Progress • High performance information
• Supportive toward • High satisfaction AII - leader obtains necessary information and then makes the
• Participative goal
• Achievement oriented decision unilaterally
CI - leader shares the problem with subordinates individually
Aspects of the and then makes the decision unilaterally
work environment CII - leader shares the problem with the group but then makes
• Task structure the decision unilaterally
• formal authority GII - decision made after reaching consensus with subordinates

Change-Oriented Leadership: Future Visions

A B C D E F G
Yes AI, AII, CI Charismatic Leadership- exert especially powerful effects on followers by
CII, GII
No virtue of their commanding confidence and clearly articulated visions
GII
AI, AII, CI, CII, GII
Qualities of Charismatic leaders
AI, AII, CI, CII Self-confidence - sure of their ability and judgment
GII
CII
A vision - proposes a state of affairs that improves the status quo
CI, CII Extraordinary behavior - are unconventional
Is high-quality
decision AII, CI, CII - quirky ways elicit admiration when successful
required? Is the AII, CI, CII, GII Recognized as agents of change - threaten status quo
problem
structured? Environmental sensitivity - highly realistic about constraints imposed
Do I have on them and the resources required to change things
enough CII
information
to make
Is it crucial for
implementation CI, GII Reactions to Charismatic Leaders
such a
decision?
that subordinates
CII
Abnormally high performance levels
accept the decision? Do subordinates
CII disagree about Devoted, loyal, and reverent followers
appropriate Enthusiasm for leader’s ideas
If I make this decision alone, is it likely method for
to be accepted by my subordinates? Dothat subordinates share the goals attaining goals, Effects of Charismatic Leaders - are not necessarily virtuous people
will be reached through so that conflict
solution of this problem? will result from - maybe a liability under everyday conditions
the decision? - engender polarized reactions, i.e., highly positive or highly negative

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 Change-Oriented Leadership: Future Visions (cont.)
Finding and Creating Effective Leaders
Transformational Leadership- leaders use their charisma to transform and
revitalize their organizations
• Selection
Characteristics of Transformational Leaders
– Review specific requirements for the job.
Charisma - strong vision and sense of mission for the organization
Intellectual stimulation - help followers to recognize problems and – Use tests that identify personal traits associated with
solutions leadership, measure self-monitoring, and assess
Individualized consideration - give followers the support, attention, emotional intelligence.
and encouragement needed to perform well – Conduct personal interviews to determine candidate’s fit
Inspirational motivation - communicate the importance of the with the job.
organization’s mission and rely on symbols to focus their • Training
efforts
– Recognize the all people are not equally trainable.
Effects of Transformational Leadership
– Teach skills that are necessary for employees to become
- elevate followers “to do their own thing”
effective leaders.
- charismatic leaders may keep followers weak and dependent
- tend to be very effective in making their organizations successful – Provide behavioral training to increase the development
- transformational leaders recognized as good performers and highly potential of nascent charismatic employees.
promotable

Trust: The Foundation of Trust Building

Leadership
• The two most important elements of our
definition are that it implies familiarity and
risk.
– Positive expectation assumes knowledge and
familiarity about the other party.
– Opportunistically refers to the inherent risk and
vulnerability in any trusting relationship.
Trust is not taking risk per se; rather it is a
willingness to take risk.

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 Key Dimensions
– Integrity refers to honesty and truthfulness. Of all Trust and Leadership
five dimensions, this one seems to be most
critical when someone assesses another’s
trustworthiness.
– Competence encompasses an individual’s
Leadership
technical and interpersonal knowledge and skills.
– Consistency relates to an individual’s reliability,
predictability, and good judgment in handling TRUST
situations. and
– Loyalty is the willingness to protect and save face INTEGRITY
for another person.
– Openness. Can you rely on the person to give
you the full truth?

– The most fragile relationships are contained in

Three Types of Trust deterrence-based trust. One violation or inconsistency
can destroy the relationship.
– This form of trust is based on fear of reprisal if the trust is
violated.
– Deterrence-based trust will work only to the degree that
punishment is possible, consequences are clear, and the
punishment is actually imposed if the trust is violated.
• An example of deterrence-based trust is a new
manager-employee relationship. As an employee,
you typically trust a new boss even though there is
little experience to base that trust on. The bond that
creates this trust lies in the authority held by the
boss and the punishment he or she can impose if
you fail to fulfill your job related obligations.

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 – It exists when you have adequate information about – It allows one party to act as an agent for the other
someone to understand them well enough to be able to
accurately predict their behavior. and substitute for that person in interpersonal
– Knowledge of the other party and predictability of his or transactions. This mutual understanding is
her behavior replaces the contracts, penalties, and legal developed to the point that each can effectively
arrangements more typical of deterrence-based trust. act for the other.
– Predictability enhances trust—even if the other is
predictably untrustworthy—because the ways that the – Controls are minimal at this level. You do not
other will violate the trust can be predicted! need to monitor the other party because there
– The more communication and regular interaction you exists unquestioned loyalty.
have with someone else, the more this form of trust can
be developed and depended upon. – This is the type of trust that managers ideally
– Interestingly, at the knowledge-based level, trust is not seek in teams. Team members are so
necessarily broken by inconsistent behavior. If you comfortable and trusting of each other that they
believe you can adequately explain or understand can anticipate each other and freely act in each
another’s apparent violation, you can accept it, forgive the
person, and move on in the relationship. other’s absence.

How Can You Build Trust?

vPractice openness
vBe fair
vSpeak your feelings
vTell the truth
vShow consistency
vFulfill your promise
vMaintain confidence
vDemonstrate confidence

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