PRINCIPLES OF MANAGEMENT - LEADING -

by Dr. Gopal Iyengar Director - KIAMS

Ability to inspire confidence and support amongst people required to achieve Orgn. Goals on a path of Mission and Vision
Person Action

Situation /Context

O Path A

Productivity Quality Satisfaction

L
S

LEADERSHIP
The art or process of influencing people so that they will strive willingly and enthusiastically towards the achievement of group goals INGREDIENTS OF LEADERSHIP: Ability to use power effectively and responsibly Ability to comprehend different motivation forces at different times in different situations Ability to inspire Ability to evoke response and arouse motivations

Leaders Versus Managers

A Leader is . . . Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Independent One who shares knowledge

A Manager is . . . Rational Consulting Persistent Problem-solving Tough-minded Analytical Structured Deliberative Authoritative Stabilizing One who centralizes knowledge

Characteristics of Effective Leaders

1. Driven, high achievers, passionate 2. Possess a strong desire to control others 3. Self-confident 4. Trustworthy and honest 5. Smart, knowledgeable, technically competent

6. Sensitive to peoples needs and feelings

7. Sense of humor 8. Emotionally intelligent

Behaviors of Effective Leaders

Adapt to the situation Provide stable performance Demand high standards of performance

Provide emotional support

Give frequent feedback

Have a strong customer orientation Recover quickly from setbacks

Play the role of servant leader

Early Leadership Theories

Trait Theories (1920s-30s)

Research focused on identifying personal characteristics that differentiated leaders from nonleaders was unsuccessful. Later research on the leadership process identified seven traits associated with successful leadership:
Drive,

the desire to lead, honesty and integrity, self-confidence, intelligence, job-relevant knowledge, and extraversion.

SELF: PERSON - TRAITS

Universal Theory of Leadership
Certain traits are universally important and apply to all situations.

PERSONALITY TRAITS
Observable both inside and outside work context

SELF: Transformational and Charismatic Leaders

Possess a vision Masterful communicators

Inspire trust

Help group members feel capable Provide inspiration

Energy and action orientation

Intellectually stimulating

Early Leadership Theories

Behavioral Theories University of Iowa Studies (Kurt Lewin)

Identified

three leadership styles:

Autocratic style: centralized authority, low participation Democratic style: involvement, high participation, feedback Laissez faire style: hands-off management
Research

findings: mixed results

No specific style was consistently better for producing better performance Employees were more satisfied under a democratic leader than an autocratic leader.

STYLE: AUTOCRATIC - FREE REIN CONTINUUM

AMOUNT OF AUTHORITY HELD BY THE LEADER

Autocratic Style

Participative Style

Free-Rein Style

Consultative

Consensus

Democratic

AMOUNT OF AUTHORITY HELD BY GROUP MEMBERS

STYLE: LIKERTS 4 SYSTEMS

SYSTEM 1 : EXPLOITATIVE-AUTHORITATIVE Autocratic, little trust, motivate through fear, occasional rewards, downward communication SYSTEM 2: BENEVOLENT-AUTHORITATIVE Patronising confidence and trust, rewards + fear, some upward communication, some delegation SYSTEM 3: CONSULTATIVE Substantial trust, participation, rewards, up and down communication, delegation.

SYSTEM 4: PARTICIPATIVE Complete Trust, total involvement, decision making at all levels, open communication

Early Leadership Theories

Behavioral Theories (contd)

Ohio State Studies

Identified

two dimensions of leader behavior

Initiating structure: the role of the leader in defining his or her role and the roles of group members Consideration: the leaders mutual trust and respect for group members ideas and feelings.
Research

findings: mixed results

High-high leaders generally, but not always, achieved high group task performance and satisfaction.
Evidence indicated that situational factors appeared to strongly influence leadership effectiveness.

STYLE Boss-Centered V/s Employee-Centered (Tannenbaum and Schmidt)

Boss-Centered Leadership Subordinate-Centered Leadership

Use of Authority by the Manager Area of Freedom for Subordinates

Manager makes decision and announces it.

Manager sells decision.

Manager presents ideas and invites questions

Manager presents tentative decision subject to change.

Manager presents problem, gets suggestio ns, makes decision.

Manager defines limits; asks group to make decision.

Manager permits subordinates to function within limits defined by superior.

Early Leadership Theories

Behavioral Theories (contd)

University of Michigan Studies

Identified

two dimensions of leader behavior

Employee oriented: emphasizing personal relationships Production oriented: emphasizing task accomplishment
Research

findings:

Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction.

High 9

Country Club Management

1, 9

STYLE: THE LEADERSHIP 7 GRID

6

Thougtful attention to need of people for satisfying relationships leads to a comfortable friendly organization atmosphere and work tempo.

Team Management
Work accomplishment is from committed people; interdependence through a common stake in organization purpose leads to relationships of trust and respect.

9, 9

Concern for People

Middle of the Road Management

5
Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at satisfactory level.

5, 5

4 3

2 1

Low

Exertion of minimum effort to get required work done is appropriate to sustain organization membership.

Impoverished Management

1, 1

Authority-Compliance
Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree.

9, 1

1 Low

Concern for Production

9 High

Contingency Theories

Path-Goal Model
States that the leaders job is to assist his or her followers in attaining their goals and to provide direction or support to ensure their goals are compatible with organizational goals. Leaders assume different leadership styles at different times depending on the situation:

Directive leader Supportive leader Participative leader Achievement oriented leader

Path-Goal Theory

Exhibit 17.8

CONTEXT: PATH - GOAL APPROACH

Characteristics of subordinates

Functions of the leader

Leader behavior

Motivated subordinates

Effective organization

Work environment

Contingency Theories of Leadership

The Fiedler Model

Proposes that effective group performance depends upon the proper match between the leaders style of interacting with followers and the degree to which the situation allows the leader to control and influence.
Assumptions:

A certain leadership style should be most effective in different types of situations.

Leaders do not readily change leadership styles.

Matching the leader to the situation or changing the situation to make it favorable to the leader is required.

Contingency Theories

The Fiedler Model (contd)

Least-preferred co-worker (LPC) questionnaire

Determines leadership style by measuring responses to 18 pairs of contrasting adjectives.

High score: a relationship-oriented leadership style Low score: a task-oriented leadership style

Situational factors in matching leader to the situation:

Leader-member relations

Task structure
Position power

CONTEXT FIEDLERS CONTINGENCY THEORY

Best leadership style depends on the Situation
Task oriented Socioindependent Relationship oriented (Where leader can exercise more control) Favourable for high control Favourable for moderate control

Favourable for low control

(Defined using three dimensions) Leader-member relations Task structure Position power Good - Poor High - Low Strong - Weak

(Defined using Least Preferred Coworker (LPC) rating)

Scales :

LEADER-MATCH CONCEPT FOR FIEDLERS THEORY

SITUATIONAL CHARACTERISTICS

Situation

i
Good

ii
Good

iii
Good

iv
Good

v
Poor

vi
Poor

vii
Poor

viii
Poor

LeaderMember Relations
Task Structure Position Power

High

High

Low

Low

High

High

Low

Low

Strong Weak

Strong

Weak

Strong

Weak

Strong Weak

Preferred Leadership Styles

Task-Motivated (Low-LPC) Socio-independent (Medium-LPC) High

Relationship-Motivated (High-LPC)

TaskMotivated

Moderate

Low

Findings of the Fiedler Model

Exhibit 17.4

Contingency Theories

Hersey and Blanchards Situational Leadership Theory (SLT)

DIAGRAM on Slide 29 is slightly misleading in the way in which the Readiness continuum is located. To take the correct diagram from duBrien

Contingency Theories

Hersey and Blanchards Situational Leadership Theory (SLT)

Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers readiness.

Acceptance: leadership effectiveness depends on whether followers accept or reject a leader. Readiness: the extent to which followers have the ability and willingness to accomplish a specific task.

Leaders must relinquish control over and contact with followers as they become more competent.

Contingency Theories

Hersey and Blanchards Situational Leadership Theory (SLT) Creates four specific leadership styles incorporating Fiedlers two leadership dimensions:
Telling: Selling:

high task-low relationship leadership high task-high relationship leadership low task-high relationship

Participating:

leadership
Delegating:

low task-low relationship leadership

Contingency Theories

Hersey and Blanchards Situational Leadership Theory (SLT) Posits four stages follower readiness:
R1: R2: R3: R4:

followers are unable and unwilling followers are unable but willing followers are able but unwilling

followers are able and willing

H-B MODEL OF SITUATIONAL LEADERSHIP A Normal Curve

(High)

LEADER BEHAVIOR
Share ideas and facilitate in decision making High Rel. Low Task Low Rel. Low Task High Task High Rel.

(Supportive Behavior) RELATIONSHIPS BEHAVIOR

Explain decisions and provide opportunity for clarification High Task Low Rel.

4 Turn over

responsibility for decisions and implementation

Provide specific instructions and closely supervise performance

(High) Low

(Low) High

R4
Follower Directed Able and Willing or Confident

R3

TASK BEHAVIOR (Guidance) FOLLOWER READINESS Moderate

R2
Unable but Willing or Confident

R1
Unable and Unwilling or Insecure Leader Directed

Able but Unwilling or Insecure

Normative Leadership Model Decision Styles Vroom-Yetton-Jago

Symbol Definition

AI

You solve the problem or make the decision yourself using the information available to you at the present time.
You obtain any necessary information from subordinates, then decide on a solution to the problem yourself. You may or may not tell subordinates the purpose of your questions or give information about the problem or decision on which you are working. The input provided by them is clearly in response to your request for specific information. They do not play a role in the definition of the problem or in generating or evaluating alternative solutions. You share the problem with the relevant subordinates individually, getting their ideas and suggestions without bringing them together as a group. Then you make the decision. This decision may or may not reflect your subordinates influence.

AII

CI

Normative Leadership Model Decision Styles: Vroom-Yetton-Jago

Symbol Definition

CII

You share the problem with your subordinates in a group meeting. In this meeting, you obtain their ideas and suggestions. Then you make the decision, which may or may not reflect your subordinates influence. You share the problem with your subordinates as a group. Together you generate and evaluate alternatives and attempt to reach agreement (consensus) on a solution. Your role is much like that of chairperson, coordinating the discussion, keeping it focused on the problem, and making sure that the critical issues are discussed. You can provide the group with information or ideas that you have, but you do not try to press them to adopt your solution, and you are willing to accept and implement any solution that has the support of the entire group.

GII

Source: Reprinted from Victor H. Vroom and Philip W. Yetton, Leadership and Decision Making, University of Pittsburgh Press, 1973.

Normative Leadership Model Decision Styles: Vroom-Yetton-Jago

To help managers determine which method to use in a given situation, the revised normative leadership model includes 12 questions about attributes of the decision problem: 1. 2. 3. 4. 5. 6. How important is the technical quality of this decision? [QR] How important is subordinate commitment to the decision? [CR] Do you have sufficient information to make a high-quality decision? [LI] Is the problem well structured? [ST] If you were to make the decision by yourself, is it reasonably certain that your subordinates would be committed to the decision? [CP] Do subordinates share the organizational goals to be attained in solving this problem? [GC]

Normative Leadership Model Decision Styles: Vroom-Yetton-Jago

7. 8. 9. 10. 11. 12.

Is conflict among subordinates over preferred solutions likely? [CO] Do subordinates have sufficient information to make a high-quality decision? [SI] Does a critically severe time constraint limit your ability to involve subordinates? [TC] Are the costs involved in bringing together geographically dispersed subordinates prohibitive? [GD] How important is it to you to minimize the time it takes to make the decision? [MT] How important is it to you to maximize the opportunities for subordinate development? [MD]

LEADER-MEMBER EXCHANGE THEORY

Personal compatibility subordinate competence and/or extraverted personality Leader

Trust High interactions

Formal relations

Subordinate A

Subordinate B

Subordinate C

Subordinate D

Subordinate E

Subordinate F

In-group

Out-group

Leader-member Exchange (LMX) theory A theory that supports leaders creation of in-groups and out-groups; subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.