LEADERSHIP

Chap#13 (Fred Luthans)

Leadership is influencing other people to follow. Therefore, anyone who can influence people to follow
them has leadership qualities.

Leadership happens at all levels within organizations and society, not just among those who work in
defined "leadership positions."

Effective leadership enables followers to succeed. It sets direction, builds a vision, and adapts as
circumstances require. Leadership is about mapping out where you need to go to "win" as a team or
an organization. It's dynamic, exciting and inspiring.

Leader Characteristics
➢ Innovates
➢ An original
➢ Develops
➢ Focuses on people
➢ Inspires trust
➢ Long-range perspective
➢ Asks what and why
➢ Own person
➢ Does the right thing

Trait Theory

It suggests that certain inborn qualities and characteristics make someone a leader. These qualities
might be personality factors, physical factors, intelligence factors, and so on. The assumption here is
that finding people with the right traits will increase organizational performance. Trait theory focuses
exclusively on the leader and neglects the follower.
Applying the Trait Theory

One of the applications of the trait approach is that by participating in various tests, candidates can
benchmark and assess how strong or weak they are in terms of leadership skills. In doing so, this can
provide direction for future action plans.

Some organizations use personality tests to find the ‘right’ people with the ‘right’ traits, using tools
such as the Myers Briggs test and Leadership Trait Questionnaire (LTQ).

Contingency Theory of Leadership

Situational contingency theory, also known as situational leadership, states that every situation that
requires leadership is different and requires a specific type of leader. The favorability of a situation
depends on how much influence and power you have as a leader.

Fiedler’s Contingency Model of Leadership Effectiveness

To test the hypotheses, Fiedler developed what he called a contingency model of leadership
effectiveness. This model contained the relationship between leadership style and the favorableness
of the situation. Situational favorableness was described by Fiedler in terms of three empirically
derived dimensions:

1. The leader-member relationship, which is the most critical variable in determining the situation’s
favorableness.
2. Task structure, which is the second most important input into the favorableness of the situation.
3. The leader’s position power obtained through formal authority, which is the third most critical
dimension of the situation56
 Path-Goal Leadership Theory

The path-goal theory states that a leader’s behavior is random based on the satisfaction, motivation,
and performance of their employees. The manager’s job is to guide workers to choose the best paths
to reach both their goals as well as the corporation’s goals. The theory argues that leaders will have
to engage in different types of leadership behavior depending on the nature and the demands of the
situation at hand. Path–goal theory assumes that leaders are flexible and that they can change their
style, as situations require.

“According to Robert J. House (1971), the Path-Goal Theory encapsulates

the necessity for distinct roles which a leader must fulfill.”

Charismatic Leadership Theories

Charismatic leadership theory identifies the extraordinary characteristics that inspire devotion and
motivation in followers and highlights the relationship between charismatic leaders and their followers.
Studies describe charismatic leaders as highly confident individuals who hold strong beliefs.

Charismatic leadership is a relatively new and distinct paradigm. Since the 1970s, researchers have
conducted studies on charismatic leadership in areas such as management, academia, the military,
and government. Although researchers have used different approaches to study charismatic
leadership, their findings have been fairly consistent.
 Ethical Charismatic Leader Unethical Charismatic Leader
1. Uses power to serve others 1. Uses power only for personal gain or
impact
2. Aligns vision with followers’ needs and
aspirations 2. Promotes own personal vision

3. Considers and learns from criticism 3. Censures critical or opposing views

4. Stimulates followers to think independently 4. Demands own decisions be accepted

and to question the leader’s view without question

5. Open, two-way communication 5. One-way communicationInsensitive to

followers’ needs
6. Coaches, develops, and supports followers.
6. Relies on convenient, external moral
7. Relies on internal moral standards to satisfy standards to satisfy self-interests
organizational and societal interests
 LEADERSHIP
Chap#14 (Fred Luthans)

Leadership Styles in Perspective

Leadership styles are classifications of how a person behaves while leading a group.

Researchers House and Podsakoff findings:

1. Vision
2. Passion and self-sacrifice
3. Confidence, determination, and persistence
4. Image building
5. Role modeling
6. External representation
7. Expectations of and confidence in followers
8. Selective motive arousal
9. Frame alignment
10. Inspirational communication
 LOREAL
History :
In the early 20th century, Eugène Paul Louis Schueller, a young French chemist, developed a hair
dye formula called Oréale. Schueller formulated and manufactured his own products, which he then
decided to sell to Parisian(paris) hairdressers. On 31 July 1919, Schueller registered his company
(Safe Hair Dye Company of France). The guiding principles of the company, which eventually
became L'Oréal.

Founded by : Eugène Schueller in 1909

CEO : Nicolas Hieronimus
Headquartered in : Clichy, France
Net worth : 4.597 € billions
Employees : 85,412
Award : Award-Winning Beauty Products

About L'Oréal :
L'Oréal SA engages in the manufacture and sale of beauty and hair products. It operates through the
following segments:

❖ Professional Products,
❖ Consumer Products,
❖ L'Oréal Luxe,
❖ and Active Cosmetics.

The Professional Products are sold in hair salons.

The Consumer Products segment offers beauty and care products for men and women which are
sold in mass market retail channels.
The L'Oréal Luxe segment markets high-end skin care and beauty products in selective retail outlets
such as department stores, perfumeries, and travel retail.
The Active Cosmetics segment offers dermocosmetic skincare products which are sold in pharmacies
and specialist sections of drugstores.
 3M

About :
3M, U.S.-based multinational company, also known as (1902–2002) Minnesota Mining and
Manufacturing Company, diversified American corporation manufacturing a wide range of products,
including abrasives, adhesive tape and related products, and consumer-electronics components.

Its first product was sandpaper. 3M, as it became familiarly known, grew steadily, adding waterproof
sandpaper, adhesive cellophane tape, masking tape, and desktop photocopiers, among other goods.

Founded by : Danley Budd, William McGonagle, John Dwan, Hermon Cable, Henry Bryan.
CEO : Mike Roman is chairman of the board and chief executive officer.
Headquartered in : St. Paul, Minnesota, U.S.
Net worth : $86.72B (August 2022)
Employees : 95,000
Awards : In 2018, won for Best Company Perks & Benefits.. In 2019, won for Best Company
Happiness.
 MANAGING CHANGE AND DISRUPTIVE INNOVATIONS
Chap#07 (Stephen Robbins)

The Case for Change

● Organizational change: any alteration of people, structure, or technology in an organization
● Change agent: someone who acts as a catalyst and assumes the responsibility for managing the
change process

External and Internal Forces for Change

Calm waters metaphor White-Water Rapids Metaphor

3 step change process: The lack of environmental stability and
1. Unfreezing the status quo. predictability requires that managers and
2. Changing to a new state. organizations continually adapt and manage
3. Refreezing to make the change permanent. change actively to survive.

Four Types of Change

1. Strategy : Modifying the approach to ensuring the organization’s success.

2. Structure : Change in structural variables such as reporting relationships, employee
empowerment, or job redesign.
3. Technology : modifications in the way work is performed or equipment that are used.
4. People : Changes in attitudes, expectations and behavior of individuals or groups.

Reactive Versus Proactive Change Processes

❖ Reactive: reacting to a situation that has occurred
❖ Proactive: acting in advance of a situation

Why Do People Resist Change?

The main reasons include uncertainty, habit, fear of personal loss, and the belief that the change is
not in the organization’s best interest.
Techniques for Reducing Resistance to Change
1. Education and communication
2. Participation
3. Facilitation and support
4. Negotiation
5. Manipulation and co-optation

Leading Change
Managers can make change happen successfully by:
❖ making organization change capable
❖ understanding their own role in process
❖ giving employees a role in the change

What Causes Stress?

❖ Task demands
❖ Role demands
➔ Role conflicts
➔ Role overload
➔ Role ambiguity
❖ Interpersonal demands
❖ Organization structure
❖ Organizational leadership

Symptoms of Stress
Stress symptoms can be grouped under three categories: physical, psychological, and behavioral. All
of these can significantly affect an employee’s work.

How Can Stress Be Reduced?

❖ Realistic job preview during selection process
❖ Performance planning program, e.g. MBO
❖ Job redesign
❖ Addressing personal stress
➔ Counseling.
➔ Time management programs
➔ Wellness programs

Creativity Versus Innovation

❖ Creativity : the ability to combine ideas in a unique way.
❖ Innovation : taking creative ideas and turning them into useful products.
Disruptive Innovation
Innovations in products, services, or processes that radically change an industry’s rules

Compact disc -> Apple iTunes

Sony Walkman -> Apple iPod
Typewriter -> Apple Macintosh
Telephones -> Apple Iphone

Apple Inc.
About :
Apple Inc, an American manufacturer of personal computers, smartphones, tablet computers,
computer peripherals, and computer software. It was the first successful personal computer company
and the popularizer of the graphical user interface.

Founded by : Steve Jobs, Steve Wozniak

CEO : Tim Cook. Because of ill health, Jobs resigned as CEO in August 2011.
Headquartered in : Cupertino, California.
Net worth : $2.660 Trillion (2022).
Employees : 154,000 (2021)
Awards : In 2021, Apple won for Best CEO 2021, Best Company Perks & Benefits, Best CEOs for
Women 2021, Best Product & Design Team 2021, Best Engineering Team 2021. In 2022, Apple won
for Best Places to Work in the Bay Area

Apple had its own plan to regain leadership :

In 1979 Jobs led a team of engineers to see the innovations created at the Palo Alto Research Center
(PARC). There they were shown the first functional graphical user interface (GUI), featuring
on-screen windows, a pointing device known as a mouse, and the use of icons, or pictures, to replace
the awkward protocols required by all other computers. Apple immediately incorporated these ideas
into two new computers: Lisa, released in 1983, and the lower-cost Macintosh, released in 1984.

In 2007 Apple introduced the touch-screen iPhone, a cellular telephone with capabilities for playing
MP3s and videos and for accessing the Internet.
 GENERAL QUESTIONS
1) OB and its Significance.
Organizational behavior is the study of how people interact in groups. The key goal here is to
improve workforce efficiency and effectiveness.

The study of organizational behavior emphasizes on:

● Improving job satisfaction
● Enhancing performance
● Promoting innovation
● Fostering good leadership qualities

Significance of OB:
Here Are A Few Reasons Why Organizational Behavior Is Important.
1. Effective Decision-Making.
2. Understanding People.
3. Navigating Workplace Conflicts.
4. Improved Performance.
5. Healthy Work Environment.

2) Culture, Teams, and Groups.

A group is a collection of individuals who coordinate their efforts, while a team is a group of people
who share a common goal. While similar, the two are different when it comes to decision-making
and teamwork.

In a work group, group members are independent from one another and have individual
accountability. On the other hand, in a team, team members share a mutual accountability and
work closely together to solve problems. These dynamics inform the way tasks are handled and
overall collaboration.
3) Conflict and negotiation. (Ivanswish and John)

Conflict and negotiation in the workplace takes place when individuals have different ideas, beliefs
or theories regarding business operations. Business owners may also find conflict when
bargaining with individuals or other businesses.

Negotiation is the process of discussing each individual about a topic and attempting to reach a
solution that benefits both parties. Conflict and negotiation are usually more prevalent in larger
business organizations since more individuals are involved in the company's operations.

Options for Solving Conflict:

Successful conflict and negotiation in organizational behavior relies on using different techniques
to resolve difficult situations. Business owners might follow a few steps when processing
discussion options and solutions: identifying the problem, analyzing the issue, creating different
strategies or approaches, and acting on outcomes or ideas. These steps provide a logical process
to follow when solving conflict and negotiation issues.

4) Negotiation and how to get better in it.

Negotiation is the process of discussing each individual about a topic and attempting to reach a
solution that benefits both parties.

Negotiation is a five-step process:

1. Preparation and planning.
2. Definition and ground rules.
3. Clarification and justification.
4. Bargaining and problem solving.
5. Closure and implementation.

Skills to help you become a better negotiator:

➢ Be Prepared : Preparation is the first step to negotiating successfully. Understand the situation
completely.

➢ Your Goals : Know exactly what you’re asking for before you enter the negotiation.

➢ Consider Alternatives : What’s your back-up plan? Ask yourself “what’s the best alternative?”

➢ Don’t Sell Yourself Short : Always set reasonable goals, but don’t be afraid to strive for the
best.

➢ Take Your Time : Take your time to ensure everything goes smoothly. Don’t rush through a
negotiation.

➢ Communication is Key : Proper communication lets you express yourself clearly so the other
party understands what you’re asking.
5) Cause of Conflicts in org.

1. Misunderstanding : When employees do not understand their tasks, roles, and

responsibilities.

2. Personal Differences : reasons such as family background, values, attitudes,

traditions, culture, education, and socialization process.

3. Information Deficiency : Lack of close communication and transformation of

information create misunderstanding

4. Goal Differences : If individuals initiate different goals it may cause conflict

5. Lack of Role Clarification : Absence of role exposition among people generates

conflict.

6. Lack of Trust : Lack of trust is also one of the causes of conflict in the organization.

7. Organizational Changes : Organizational Changes can change the formal relationship

and job responsibility of group members. This also may cause conflict.

8. Poor Communication : poor communication in the organization creates the problem of

exact transformation of information, which causes conflict.

6) Conflict resolution grid and its pros and cons.

7) Types of conflicts.

Conflict can be defined as a process that begins when one party senses that another party has or
is about to negatively affect something the first party cares about.

Organizational Conflict can be classified in 4 ways:

1. Intra-individual/Intrapersonal Conflict.
● Conflict can be intra-personal, where an individual’s objective and vision differ from
his/her company’s overall vision.

● Intra-individual conflict arises from frustration, numerous roles that demand equal
attention

2. Interpersonal conflict.
The conflict at the interpersonal level involves two or more individuals and is the most
common and most recognized type of conflict.
3. Intra-group Conflict.
When an individual is pitted against a group and is either unwilling or unable to conform
to group dynamics, he or she invariably leaves the team due to intra-group conflict.

4. Inter-group conflict.
When the conflict is inter-group, two teams are involved in a deadlock, endangering the
successful completion of a project due to differences in group dynamics.