CHAPTER – 7(SEVEN)CHAPTER – 7(SEVEN)

The Leading The Leading ProcessProcess

LeadershipLeadership

LeadershipLeadership is defined as the is defined as the process of influencing people so that process of influencing people so that they will strive willingly and they will strive willingly and enthusiastically towards the enthusiastically towards the achievement of group goals.achievement of group goals.

Leaders Leaders are the people who can are the people who can influence the behaviors of others influence the behaviors of others without having to rely on force. without having to rely on force. Leaders are people whom others Leaders are people whom others accept as leaders. accept as leaders.

DEFFERENCE BETWEEN DEFFERENCE BETWEEN LEADERSHIP & MANAGEMENT:LEADERSHIP & MANAGEMENT:

MANAGEMENT:MANAGEMENT: Management is about coping Management is about coping with complexity, Good management bring with complexity, Good management bring about order and consistency by drawing up about order and consistency by drawing up a formal plans, designing rigid a formal plans, designing rigid organizational structures and monitoring organizational structures and monitoring result against plans.result against plans.

LEADERSHIP:LEADERSHIP: Leadership in contrast is about Leadership in contrast is about coping with change, leaders establish coping with change, leaders establish direction by developing a vision of the direction by developing a vision of the future, then they tune people by future, then they tune people by communicating his vision, and inspiring communicating his vision, and inspiring them to overcome hurdles.them to overcome hurdles.

PERSONALITY TRAIT OF A PERSONALITY TRAIT OF A LEADER:LEADER:

Murry Ross’sMurry Ross’s view of a good leader- view of a good leader-1.Self confident, well integrated and 1.Self confident, well integrated and

emotionally stable.emotionally stable.2.2. Willing to take leadership Willing to take leadership

responsibilities.responsibilities.3. Identifies with goals and values of 3. Identifies with goals and values of

the team the lead.the team the lead.4. Warm. sensitive and sympathetic 4. Warm. sensitive and sympathetic

towards teamtowards team

members and able to provide practical members and able to provide practical and helpful suggestions.and helpful suggestions.

5. Intelligent in relation to other group 5. Intelligent in relation to other group members.members.

6. Capable of performing leadership 6. Capable of performing leadership functions continuously.functions continuously.

These are the personal trait of These are the personal trait of leadership.leadership.

Leadership Styles -Based Leadership Styles -Based on Use of Authorityon Use of Authority

Usually leaders have three authority Usually leaders have three authority styles as bellow:styles as bellow:

1.Autocratic1.Autocratic

2. Democratic or participatory2. Democratic or participatory

3. Free – rein 3. Free – rein

1.Autocratic Style:1.Autocratic Style: Autocratic leader Autocratic leader commands and expects compliance and commands and expects compliance and leads by the ability to withhold or give leads by the ability to withhold or give rewards and punishment.rewards and punishment.

2.Democratic style:2.Democratic style: This type of This type of leaders consult with subordinates on leaders consult with subordinates on proposed actions and decisions and proposed actions and decisions and encourages participation from them.encourages participation from them.

3.Free – rein:3.Free – rein: In this approach, leader In this approach, leader uses his or her power very little. Such uses his or her power very little. Such leaders give subordinates a high degree leaders give subordinates a high degree of independence in their operations. of independence in their operations.

Trait TheoriesTrait Theories

Trait theories of leadership make Trait theories of leadership make difference from leaders to difference from leaders to nonleaders by focusing on personal nonleaders by focusing on personal qualities and characteristics. Traits qualities and characteristics. Traits refers individual’s personal criteria – refers individual’s personal criteria – intelligence, sociability, self – intelligence, sociability, self – confidence, straightforwardness, confidence, straightforwardness, responsibility, articulation, energy, responsibility, articulation, energy, ethics and so on. ethics and so on.

Recognized Seven Traits of Recognized Seven Traits of LeadershipLeadership– Ambition and EnergyAmbition and Energy– The desire to leadThe desire to lead– Honesty and integrityHonesty and integrity– Self – confidenceSelf – confidence– IntelligenceIntelligence– High self – monitoringHigh self – monitoring– Job – relevant Job – relevant knowledgeknowledge

Behavioral TheoriesBehavioral Theories

Behavioral theories evolved to Behavioral theories evolved to trace out critical behavioral trace out critical behavioral determinants of leadership. In determinants of leadership. In behavioral theories, people can be behavioral theories, people can be trained up to be the leader. trained up to be the leader.

Basic Difference between Basic Difference between Trait theories and Trait theories and

Behavioral theoriesBehavioral theories The difference between trait and The difference between trait and

behavioral theories in terms of application.behavioral theories in terms of application.Trait theories assume that leaders are Trait theories assume that leaders are born rather than made.born rather than made.On the other hand, If there were specific On the other hand, If there were specific behaviors that identified leaders, then we behaviors that identified leaders, then we could teach leadership – we could design could teach leadership – we could design programs that implanted these behavioral programs that implanted these behavioral patterns in individuals who desired to be patterns in individuals who desired to be effective leaders.effective leaders.

The Managerial GridThe Managerial Grid Blake and Mouton developed a two – Blake and Mouton developed a two –

dimensional view of leadership style. dimensional view of leadership style. They proposed a managerial grid They proposed a managerial grid based on the styles of “concern of based on the styles of “concern of people” and “concern of production”. people” and “concern of production”.

The managerial grid is portrayed as The managerial grid is portrayed as below: below:

They consider 2 basic dimensions.They consider 2 basic dimensions.1. concern for people( Vertical axis).1. concern for people( Vertical axis).2. Concern for Production (Horizontal 2. Concern for Production (Horizontal

axis).axis).Concern for production can be combined Concern for production can be combined

with concern for people in various with concern for people in various degrees. Here five styles are considered.degrees. Here five styles are considered.

9.1-Authority obedience:9.1-Authority obedience: Maximum Maximum concern for production and minimum for concern for production and minimum for people.people.

Here, the manager is a hard task master. Here, the manager is a hard task master. Everyone is expected to work hard. Work or Everyone is expected to work hard. Work or get lost is the rule. People welfare are not at get lost is the rule. People welfare are not at all important here.all important here.

1.9-Country club management:1.9-Country club management: Maximum Maximum concern for people and minimum for concern for people and minimum for production.production.

Here the guiding principle is to look after Here the guiding principle is to look after people as in a happy family. The organization people as in a happy family. The organization runs like a social club. Some work naturally runs like a social club. Some work naturally gets done.gets done.

1.1- Impoverished management 1.1- Impoverished management style:style: Low concern for production as Low concern for production as well as for people.well as for people.

Poorest style of management. Its Poorest style of management. Its main characteristics are apathy and main characteristics are apathy and lack of vitality.lack of vitality.

Symptoms of a dying organization.Symptoms of a dying organization.

5.5-Middle of the roader:5.5-Middle of the roader: Equal concern for Equal concern for people and production.people and production.

This style of management aims at balancing This style of management aims at balancing the two requirements, concern for people and the two requirements, concern for people and concern for production.concern for production.

9.9- Team management:9.9- Team management: High concern for High concern for people and high concern for production.people and high concern for production.

This is considered to be the best style of This is considered to be the best style of management, Here work and people are management, Here work and people are mutually supportive. mutually supportive.

LIKERT ’FOUR SYSTEMS OF LIKERT ’FOUR SYSTEMS OF MGTMGT

System 1:System 1: Exploitive – Authoritative:Exploitive – Authoritative: Its Its

managers are highly autocratic, have managers are highly autocratic, have little trust in subordinates, motivate little trust in subordinates, motivate people through fear and punishment people through fear and punishment and only occasional rewards, engage and only occasional rewards, engage in downward communication, and in downward communication, and limit decision making to the top. limit decision making to the top.

System 2System 2

Benevolent – Authoritative:Benevolent – Authoritative: Its Its managers have a patronizing managers have a patronizing confidence and trust insubordinates, confidence and trust insubordinates, motives with rewards and some fear motives with rewards and some fear and punishment, permit some upward and punishment, permit some upward communication, solicit some ideas communication, solicit some ideas and opinions from subordinates, and and opinions from subordinates, and allow some delegation of decision allow some delegation of decision making but with close policy control. making but with close policy control.

System 3System 3

Consultative Mgt:Consultative Mgt: Managers in this system Managers in this system have substantial but not complete have substantial but not complete confidence and trust in subordinates, usually confidence and trust in subordinates, usually try to make use of subordinates’ ideas and try to make use of subordinates’ ideas and opinions, use rewards for motivation with opinions, use rewards for motivation with occasional punishment and some occasional punishment and some participation, engage in communication flow participation, engage in communication flow both down and up. Most decisions are taken both down and up. Most decisions are taken in top level and some specific decision is in top level and some specific decision is taken by the specific dept.taken by the specific dept.

System 4System 4

Participative Group:Participative Group: Managers in Managers in this group have complete trust and this group have complete trust and confidence in subordinates in all confidence in subordinates in all matters. They always get ideas and matters. They always get ideas and opinions from subordinates and opinions from subordinates and constrictively use them. They also constrictively use them. They also give economic rewards on the basis of give economic rewards on the basis of group participation and involvement group participation and involvement in such areas as setting goals and in such areas as setting goals and appraising progress toward goals. appraising progress toward goals.

Contingency TheoriesContingency Theories

Fiedler’s Contingency ModelFiedler’s Contingency Model The most appropriate leadership style The most appropriate leadership style

depends on whether the overall situation depends on whether the overall situation is favorable, unfavorable, or in an is favorable, unfavorable, or in an intermediate stage of favorable to the intermediate stage of favorable to the leader. As the situation varies, leadership leader. As the situation varies, leadership requirements also vary.requirements also vary.

The theory that effective groups depend The theory that effective groups depend on a proper match between a leader’s on a proper match between a leader’s style of interacting with subordinates and style of interacting with subordinates and the degree to which the situation gives the degree to which the situation gives control and influence to the leader.control and influence to the leader.

Fiedler’s Model: Defining Fiedler’s Model: Defining the Situationthe Situation

Leader-Member RelationsLeader-Member Relations – are determined – are determined by the manager in which the leader is accepted by the manager in which the leader is accepted by the group. For example if there is group by the group. For example if there is group friction with the leader, rejection of the leader, friction with the leader, rejection of the leader, and reluctant compliance with orders then leader and reluctant compliance with orders then leader member relations are low.member relations are low.

Task StructureTask Structure – reflects the degree to which – reflects the degree to which one specific way is required to do the job.one specific way is required to do the job.

Position PowerPosition Power – describes the organizational – describes the organizational power that goes with the position the leader power that goes with the position the leader occupies. Example to hire and fire, status occupies. Example to hire and fire, status symbols and power to give pay raises and symbols and power to give pay raises and promotions.promotions.

Path-Goal TheoryPath-Goal Theory Robert House and others have further Robert House and others have further

developed a path goal view of developed a path goal view of leadership initially presented by Martin leadership initially presented by Martin G. Evens.G. Evens.

The theory states that the leader’s job is The theory states that the leader’s job is to use structure, support, and rewards to to use structure, support, and rewards to create a work environment that helps create a work environment that helps employees reach the organization’s employees reach the organization’s goals. The two major roles involved are goals. The two major roles involved are to create a goal orientation and to to create a goal orientation and to improve the path toward the goals so improve the path toward the goals so that they will be attained.that they will be attained.

In short it is the leader’s job to assist In short it is the leader’s job to assist followers in attaining their goals and to followers in attaining their goals and to provide them the necessary direction provide them the necessary direction and/or support to ensure that their and/or support to ensure that their goals are compatible with the overall goals are compatible with the overall objectives of the group or organizationobjectives of the group or organization

Employee's Development Employee's Development levellevel

Leader’s Recommended Leader’s Recommended stylestyle

1. Low ability; low willingness1. Low ability; low willingness Telling (directive; supportive)Telling (directive; supportive)

2. Low ability; high willingness2. Low ability; high willingness Selling/coaching (directive; low Selling/coaching (directive; low support)support)

3. High ability; low willingness3. High ability; low willingness Participative/ Supportive Participative/ Supportive (Supportive; low direction)(Supportive; low direction)

4. High ability; high willingness4. High ability; high willingness Delegating (low direction; low Delegating (low direction; low support)support)

The path-goal leadership The path-goal leadership processprocess

The leader identifiesemployees needs

Appropriate goals are established

Leader connectsRewards with goals

Leader provides Assistance on employee path

toward goals

Employees become satisfied and motivated and they accept leader

Effective performance

occurs

Both employees and Organization are

Better able toReact their goals

1) 1) Goal settingGoal setting – goals play a central role – goals play a central role in the path goal process. Goal setting is in the path goal process. Goal setting is the establishment of targets and the establishment of targets and objectives for successful performance both objectives for successful performance both long run and short run.long run and short run.2) Path improvement2) Path improvement – the steps – the steps surrounding goal setting represent only surrounding goal setting represent only half of the path goal leadership process.half of the path goal leadership process.3) Leadership style3) Leadership style – according to path – according to path goal theory the leader’s roles are to help goal theory the leader’s roles are to help employees understand what needs to be employees understand what needs to be done (the goal) and how to do it (the done (the goal) and how to do it (the path). The model identifies four path). The model identifies four alternatives:alternatives:

a. a. Directive leadershipDirective leadership – the leader – the leader focuses of clear task assignments standards focuses of clear task assignments standards of successful performance and work of successful performance and work schedules.schedules.

b. Supportive leadershipb. Supportive leadership – the leader – the leader demonstrates concern for employees well demonstrates concern for employees well being and needs while trying to create a being and needs while trying to create a pleasant work environment.pleasant work environment.

c. Achievement oriented leadershipc. Achievement oriented leadership – –the leader sets high expectations for the leader sets high expectations for

employees communicates confidence in their employees communicates confidence in their ability to achieve challenging goals and ability to achieve challenging goals and enthusiastically models the desired behavior.enthusiastically models the desired behavior.

d. Participative leadershipd. Participative leadership – the leader – the leader incites employees to provide input to incites employees to provide input to decisions and seriously seeks to use decisions and seriously seeks to use their suggestion final decisions are their suggestion final decisions are made.made.

4) contingency factors:4) contingency factors: two major two major factors must be analyzed the general factors must be analyzed the general work environment and the specific work environment and the specific characteristics of the employee.characteristics of the employee.