LEADERSHIP
Daisy Chauhan
We could improve our productivity in India
by 30 to 40 per cent without extra finance
or new technology if we could improve the
leadership of our executives.
- Dr. Freddie Mehta
12 per cent of effective
management strategy is
knowledge and 88 per cent
is dealing appropriately
with the people.
-Stanford Research Institute
Manager and Leader
Administers
Maintains
Focuses on systems &
structure
Relies on control
Short-range view
Eye on the bottom line
Imitates
Accepts status quo
Surrenders to external
forces
Does things rightly
Innovates
Develops
Focuses on people
Inspires trust
Long-range view
Eye on the horizon
Originates
Challenges the status
quo
Conquers over volatile,
turbulent and ambiguous
surroundings
Does the right things
Leadership vs Management
Aims at change and
movement
Develops a vision for
the future and creates
direction
Is more concerned
with establishing
direction, aligning
people and
motivating and
inspiring people
Aims at producing
consistent results
Creates the
strategies for
ensuring realisation
of vision and mission
Is concerned with
planning, budgeting,
organising, staffing,
controlling and
problem-solving
What Differentiates a
Leader
A Leader sees:
More
Farther and
Before
Others.
It is not the position that makes a leader
It is the leader that makes a position.
In the case of a manager things happen
when he is there;
In the case of a Leader, things happen
even when he is not there.
Theories of Leadership
Trait Theories
Behavioral Theories
Contingency Theories
Trait Theories
Trait theories differentiate leaders from non-
leaders by focusing on personal qualities and
characteristics
Some common traits of leaders:
Ambition and energy
Desire to lead
Honesty and integrity
Self Confidence
Intelligence
High self-monitoring
Job relevant knowledge
Putting Vision into Action
Vision: Where We Will Be - Future state
Mission: Why We Exist - Purpose
Goals: What Will Get Us There - Operationalsing
Vision
Objectives: Major Steps We Will Take Strategies: How We Will Go about Doing This Defining the Process
Tactics: Who Will Do What by When - Accountability
Roles: Tasks - Ownership
Trait Theories
Extroversion is the most important trait of
effective leaders
Extroversion more strongly related to leader
emergence than to leader effectiveness
Behavioural Theories
Ohio State Studies:
Two dimensions relating to behaviour:
Initiating structure : Extent to which a leader
is likely to define and structure his/her role
and those of employees for the attainment of
goals
Consideration: The extent to which a leader is
likely to have job relationships characterised
by mutual trust, respect for employees ideas
and regard for their feelings
Has concern for employees comfort,
wellbeing, status and satisfaction
Behavioural Theories
Michigan Studies:
People Oriented Leader: emphasise
interpersonal relations, take personal
interest in the needs of the employees
Production Oriented Leader: emphasise the
technical and task aspects of the job.
Their concern is accomplishing tasks and
employees are only a means to that end.
Behavioural Theories
The Managerial Grid (Blake and Mouton):
Nine possible positions (styles) along each
axis on people orientation and production
orientation.
Managers are found to perform best under
9,9 style (High on people and production
orientation)
Contingency Theories
Contingency theories of leadership emerged because
the earlier theories failed to provide consistent
results. The focus therefore shifted to situational
influences.
Fiedler Contingency Model:
Proposes that effective group performance depends
on the proper match between the leaders style and
the degree to which the situation gives control to
the leader.
Contingency Theories
Least Preferred Coworker (LPC)
A high LPC score on 16 dimensions (pleasant-unpleasant) is
indicative of relationship orientation and a low LPC score
is indicative of task orientation basic leadership style
Leadership effectiveness depends on a match between the
style and three situational factors:
(1) Leader-member relations: The degree to which members
have confidence, trust and respect in their leaders
(2) Task Structure: The degree to which job assignments are
procedurised (structured/unstructured)
(3) Position Power: The degree of influence a leader has
over matters relating to hiring, firing, discipline,
promotions and salary increases.
COGNITIVE RESOURCE THEORY
Stress unfavourably affects a situation
Intelligence and experience can lessen the
influence of stress on the leader
HERSEY AND BLANHARDS SITUAITONAL
THEORY
Situational leadership is a contingency theory
where the focus is on the readiness of the
followers
The extent to which people have the ability and
willingness to accomplish a task
Unable and unwilling - Clear and specific directions
Unable but willing
- close supervision with feedback
Able and unwilling
- Supportive and participative
Able and willing - Leaders role minimal
Situational Leadership An Overview
R4
Able and
willing
Follower
Readiness
R3
R2
Able but
unwilling
Unable but
willing
Follower Directed
S4
Delegating
Observing
Fulfilling
R1
Unable and
unwilling
Leader
Directed
Leader
Behavior S2
S3
Understandin
g
Encouraging
Collaborating
Training
Explaining
Monitoring
S1
Telling
Guiding
Directing
How to do
Turn over
responsibilit
y for
decisions
and
executing
it
Find out why
the reluctance.
Share ideas
and help in
decision
making
Explain your
decisions and
provide
opportunity
for
clarification
Provide specific
instructions and
closely
supervise
performance
R
E
L
A
T
I
O
N
S
H
I
P
B
E
HAV
IUOR
Situational Leadership-Leader
Behaviour
High Relationship/
Low Task
S3: Participating/
Encouraging
High on Relationship/
High on Task
S2:Selling/
Explaining
Low Relationship/
Low Task
Low Relationship/
High Task
S4: Delegating/
Monitoring
S1: Telling/
Directing
Task Behaviour
MATCHING LEADERS AND SITUATIONS
When faced with situations I, II, III, VII and VIII
Task Oriented leaders perform better.
In situations IV, V, and VI Relationship
Oriented leaders perform better.
PATH-G0AL THEORY
The leaders role is to assist followers in
attaining their goals and to provide the
necessary direction and/or support to ensure
that their goals are compatible with the overall
objectives of the group or organisation
PATH-GOAL THEORY:
ENVIRONMENTAL
CONTINGENCY FACTORS
Task structure
Formal Authority system
Work Group
LEADER BEHAVIOUR
Directive
Participative
Achievement Oriented
Supportive
SUBORDINATE
CONTINGENCY FACTORS
Locus of Control
Experience
Perceived Ability
OUTCOME
Performance
Satisfaction
Path-Goal Theory
Directive leadership leads to greater satisfaction when tasks
are ambiguous
Directive leadership may be ineffective when employees are
high on ability and experience
Supportive leadership results in higher performance &
satisfaction when employees are performing structured tasks
Employees with internal locus of control will be more
satisfied with participative type of leadership
Achievement-oriented leadership will increase employees
expectancies that effort will lead to high performance when
tasks are ambiguously structured.
Theories of Leadership
Leader Member Exchange (LMX) Theory:
The Leader-Member Exchange (LMX) theory
argues that, because of time pressures, leaders
establish a special relationship with a small
group of their followers. These individuals make
up the in-group they are trusted, get a
disproportionate amount of the leaders
attention, and are more likely to receive special
privileges.
Other followers fall into the Out-Group
Transactional & Transformational
Leader
Transactional Leader:
Contingent Reward: Recognises accomplishments,
rewards good performance.
Management by Exception:
Watches and searches for deviations from rules and
standards, takes corrective action.
Charismatic Leader:
Motivates and directs followers by developing in them
a strong emotional commitment to a vision and set of
shared values
Influences followers by appealing to their emotions at
a deep level President Roosevelt Adolf Hitler
Transformational Leader:
Anticipates future trends,
Inspires followers to understand and embrace a new
vision of possibilities
Develops others to be leaders
SITUATIONAL LEADERSHIP
CRITERIA/CONSIDERATIONS:
Follower Readiness:
[Link] of Competence
[Link] (Motivation)
[Link]
Leader Preparedness:
[Link] of Competence
[Link] by Followers
[Link] Addition (Best use of Time & Energy)
ABILITY, MOTIVATION AND
PERFORMANCE
A
B
I
L
I
T
Y
Able but not Willing
Counterproductive
To be motivated/
counseled
Able & Willing
Proactive
High/Star Performers
Groomed for higher
Responsibilities
Unable & Unwilling
Passive/Inactive
Willing but Unable
Reactive
Obsolete/not to
be retained
To be Trained
WILLINGNESS/MOTIVATION
Situational Leadership
Follower Readiness: Competence &
Motivation
R4
R3
R2
R
Able and
Able but
Unable but
Unable
1 and
willing
unwilling
Follower Directed
S4
Delegating
Observing
Fulfilling
Empower
willing
Leader
SBehavior S2
Understandi
Training
3
ng
Encouraging
Collaboratin
g
unwilling
Leader Directed
Explaining
Monitoring
S1
Telling
Guiding
Directing
How to do it
Turn over
responsibilit
y for
decisions
and
executing
to followers
Find out why
the reluctance.
Share ideas
and help in
decision
making
Explain your
decisions and
provide
opportunity
for
clarification
Provide specific
instructions and
closely
supervise
performance
FACTORS AFFECTING LEADERSHIP STYLE AND
DM
Organizational Factors:
Stage
Size
Systems & Procedures
Environmental Factors:
Context
External Competition
LEADERSHIP
STYLE
&
DECISION
MAKING
Leader Preparedness:
Competencies
Acceptance
Follower Readiness:
Competencies
Motivation
Trustworthiness
Dimensions
Autocratic
Consultative
Participative
1. Context
Changing
Rapidly
Slow changes
Relatively
Static
2. External Competition
High
Medium
Low
3. Stage
Initial (set up)
Consolidation
Mature
4. Size
Small
Medium
Large
5. Systems and Procedures
Unstructured
Structured/
Discretionary
Structured
6. Competencies of Leader
High
Medium
Low
7. Leader Acceptability
High
Medium
Low
8. Competencies (Others)
Low/Average
Medium/high
High
9. Motivation (Others)
Low/Average
Medium
High
[Link] (Others)
Low/Average
Medium
High
Matching Readiness with
Leadership Styles
Readiness
Style
Low
Best Style
Telling
Least Effective
Empowering
Low to Moderate
Selling/
Influencing
Involving
Moderate to High
High Delegating/
Participating/
Involving
Telling
Empowering
Delegating/
Influencing
LEADERSHIP AND DECISION MAKING
Criteria for Decision Making:
1. Rationality
2. Acceptance
Neither being too rational nor too emotional.
A balance between rationality and acceptance or
using emotions/feelings for making intelligent
decisions.
Criteria for Decision
Making
QUALITY
ACCEPTANCE
1. Information:
1. Conflict Rule
2. Fairness Rule
3. Acceptance Priority
Relevant
Sufficient
Complete
2. Complexity
3. Goal Congruity
TIME AVAILABILITY
Leadership and Decision Making
Decision Styles:
AI : Autocratic. No information sharing, No search for information,
managing with available info. You take your own decision.
AII: Autocratic but may seek some information, speak to a few
people. True facts not shared.
CI: Consultative approach. Problem sharing with relevant
individuals (subordinates) on a one to one basis. Then you take a
decision which may or may not reflect your subordinates views.
CII: Consultative approach. Problem sharing with your
subordinates in a group collectively obtaining their ideas and
suggestions. Then you take the decision which may or may not
reflect their views.
GII: Consensus Group Decision-making. You share your problems
with you subordinates in a group. Together you generate and
evaluate alternatives and attempt to reach a consensus. You do not
try to influence the group to adopt your solution and you are
willing to accept and implement any solution that has the support of
the entire group.