MBA- Leadership Handout -2020-PDF PDF

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UNIVERSITY OF JAFFNA, SRI LANKA MBA PROGRAMME PGDM 1132 : ORGANIZATIONAL DYNAMICS Lecturer: Mrs.T.Raveendran

Issued on 26.01.2020

Leadership What is Leadership? Leadership is much more than management. It is the ability to lead a group of followers effectively, make the organization successful, and maintain valid principles and standards. Leaders must know how to treat the followers to ensure their success. They should have values that are consistent with high moral and ethical standards, and they should know how to motivate others effectively. Great leaders have the ability to motivate their followers and elicit change. Change is a vital element of a great leader. They have to know how to create successful change and motivate others to change. Leaders help themselves and others to do the right things. They set direction, build an inspiring vision, and create something new. While leaders set the direction, they must also use management skills to guide their team.

Leadership is defined as the ability to influence people toward the attainment of goals. Leadership is the ability of an individual to influence, motivate, and enable others to contribute toward the effectiveness and success of the organization

Leadership Versus Management Many times, people confuse "management" with leadership, because managers and leaders have much in common. They both have power; they both use their power to run a business or operation effectively; and they both have other people that rely on them for information, ideas, and the direction of their daily activities. "Leaders are people who do the right thing; managers are people who do things right." Important differences between management and leadership are as follows.

Managers • • • • • • •

Focus on things Do things right Plan Organize Direct Control Follows the rules

Leaders • • • • • • •

Focus on people Do the right things Inspire Influence Motivate Build Shape entities

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Autocratic vs. Democratic Leaders Autocratic:

Democratic:

•

Keeps authority centralized

•

Delegates authority

•

Boss-centered

•

Subordinate- centered

•

Subordinates perform best when leader

•

Subordinates perform well even when

is present •

Hostility may arise.

the leader is absent •

Positive feelings.

1. Trait theories of leadership Trait theories sought to identify personal characteristics of effective leaders. Thus, these theories consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders. Trait theory assumes that leaders are born, not made. According to this theory, the popular common leadership Traits are: •

Ambition and energy

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The desire to lead

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Honest and integrity

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Self-confidence

•

Intelligence

•

High self-monitoring

•

Job-relevant knowledge

Limitations of traits theory: •

No universal traits found that predict leadership in all situations.

•

Unclear evidence of the cause and effect of relationship of leadership and traits.

2. Behavioral theories of leadership Behavioural theories sought to identify specific behaviours of effective leaders. The most popular behavioural theories are; Michigan studies Ohio studies Managerial Grid 2

University of Michigan Studies In the late 1940s, researchers at the University of Michigan introduced a research program on leadership behaviors. The researchers were concerned with identifying the leadership behaviour that leads to effective performance. In this research, two forms of leader behaviour were identified. They are: •

Employee-centered leadership (people-oriented)

•

Production-centered leadership (task-oriented)

Employee-Oriented Leader emphasizes interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members. Production-Oriented Leader emphasizes technical or task aspects of the job.

Ohio State Studies An important research program was started at Ohio State university at about the same time as the Michigan studies. In this research, two dimension of leader behaviour were identified. They are, • Consideration • Initiating structure Initiating Structure is the extent to which a leader is likely to define and structure his or her role and those of subordinates in the search for goal attainment. Consideration is the extent to which a leader is likely to have job relationships characterized by mutual trust, respect for subordinate’s ideas, and regard for their feelings.

High

Low con-n

High con-n

High Ini.Str

High Ini. str

Low con-n

High con-n

Low Ini. str

Low Ini. str

Initiating structure

Low

High Consideration

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The Managerial Grid The Leadership Grid was developed by Robert Blake and Jane Mouton. Two dimensions of leader behaviour were shown in this Grid . They are: • •

Concern for people Concern for production

Blake & Mouton’s Leadership Grid High

Concern for People

Country Club Management

Team Management

Middle-of-the-Road Management

Impoverished Management

AuthorityCompliance Management

Low Low

Concern for Production

High

In the above grid styles, Team management (9,9) is often considered as the most effective style for all managers.

3. Hersey-Blanchard’s Situational Leadership Theory The Hersey-Blanchard Situational Leadership Theory was created by Dr Paul Hersey, a professor and author of "The Situational Leader," and Ken Blanchard, author of the best selling "The One-Minute Manager," among others. The theory states that instead of using just one style, successful leaders should change their leadership styles based on the maturity of the people they're leading and the details of the task. Using this theory, leaders should be able to place more or less emphasis on the task, and more or less emphasis on the relationships with the people they're leading, depending on what's needed to get the job done successfully. According to Hersey and Blanchard, knowing when to use each style is largely dependent on the maturity of the person or group you're leading. They break maturity down into four different levels: 4

3

2

4

1

M4

M3

M2

M1

•

M1 – People at this level of maturity are at the bottom level of the scale. They lack the knowledge, skills, or confidence to work on their own, and they often need to be pushed to take the task on.

•

M2 – at this level, followers might be willing to work on the task, but they still don't have the skills to do it successfully.

•

M3 – Here, followers are ready and willing to help with the task. They have more skills than the M2 group, but they're still not confident in their abilities.

•

M4 – These followers are able to work on their own. They have high confidence and strong skills, and they're committed to the task.

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Other Leadership Approaches These are outside the bounds of most of the highly developed leadership theories. A leader may well fit into more than one of the categories. Transactional Leader • •

This is the traditional view of leadership that the new approaches are contrasted with. A leader who clarifies subordinates’ role and task requirements, provides rewards, and displays consideration for subordinates.

Charismatic Leader • A leader whose personality motivates subordinates to go beyond their expected performance. Visionary Leader • A leader who is able to imagine how the future could be and inspire followers to work toward creating that future. Transformational Leader • A leader distinguished by a special ability to bring about innovation and change. Servant Leader • A leader who works to fulfill subordinates’ needs and goals as a means to achieve the organization’s larger mission.

How to measure Leadership Effectiveness? Leadership Effectiveness is evaluated in terms of consequences of the leaders’ actions for followers and other organizational stakeholders. Outcomes / consequences include • Performance and growth of the group / organization • Preparedness of the group to deal with challenges or crises • Follower satisfaction with the leader • Follower commitment to the group objectives • Follower absenteeism, time keeping, request for transfers • Psychological well being and development of followers • Leader’s status in the group • Leader’s advancement to higher positions in the organization

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