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APPLY MANAGEMENT AND LEADERSHIP THEORY TO SUPPORT ORGANISATIONAL DIRECTION

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APPLY MANAGEMENT ANDLEADERSHIP THEORY TO SUPPORT ORGANISATIONAL DIRECTION

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Learning outcomesReview the impact that selected

theories of management and leadership have on organizational strategy

Create a leadership strategy that support organizational direction

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The theoriesTrait theories of leadershipContingency leadership (Fred

Fielder, 1964)Situational leadership (Paul Hersey

and Ken Blanchard, 1985)Transactional and

Transformational leadership (Bernard Bass, 1985)

Charismatic leadership (Jay Conger and Rabindra Kanungo, 1998)

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Trait theories Based on the characteristics of many

leaders - both successful and unsuccessful - and is used to predict leadership effectiveness

Attempted to identify different traitsphysiological (appearance, height, weight)demographic (age, education)Personality (self-confidence, aggressiveness), intellective (intelligence, decisiveness,

judgment)task-related (achievement drive, initiative)social characteristics (sociability)

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Among the core traits identified are:◦ Honesty and integrity◦ Achievement drive◦ Leadership motivation◦ Self-confidence◦ Cognitive ability◦ Knowledge of business◦ Emotional Maturity◦ Others such as charisma, creativity and

flexibility

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Contingency LeadershipThe model states that there is no one

best style of leadershipInstead, a leader's effectiveness is based

on the situation. This is the result of two factors – "leadership style" and "situational control”

Leadership style can be task-oriented or relationship-oriented

Situational control depends on leader-member relations, task structure and position power

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Leader-member relations

Task structure

Position power

Style

Good Structured Strong Task

Good Structured Weak Task

Good Unstructured Strong Task

Good Unstructured Weak Relationship

Poor Structured Strong Relationship

Poor Structured Weak Relationship

Poor Unstructured Strong Relationship

Poor Unstructured Weak Task

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Situational leadershipThe 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

There are four main leadership styles – telling, selling, participating and delegating

Maturity could be on a scale from M1 (lack the knowledge, skills, or confidence) to M4 (able to work on their own)

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You're about to leave for an extended holiday, and your tasks will be handled by an experienced colleague. He's very familiar with your responsibilities, and he's excited to do the job. Instead of trusting his knowledge and skills to do the work, you spend hours creating a detailed list of tasks for which he'll be responsible, and give full instructions on how to do them.

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You've just been put in charge of leading a new team. It's your first time working with these people. As far as you can tell, they have some of the necessary skills to reach the department's goals, but not all of them. The good news is that they're excited and willing to do the work. You coach them through the project's goals, pushing and teaching where necessary, but largely leaving them to make their own decisions.

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Transactional Vs Transformational

Transactional TransformationalLeadership is reactive Leadership is proactive

Works within the organizational culture

Works to change the organizational culture by implementing new ideas

Employees achieve objectives through rewards and punishments set by leader

Employees achieve objectives through higher ideals and moral values

Motivates followers by appealing to their own self-interest

Motivates followers by encouraging them to put group interests first

Management by exception: maintain the status quo and stress correct actions to improve performance

Individualized consideration: Each behavior is directed to each individual to express consideration and supportIntellectual stimulation: Promote creative and innovative ideas to solve problems

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Charismatic leadershipConcept originated from ‘Charismatic

authority’ which was one of three forms of authority laid out by Max Weber in his tripartite classification of authority (the other two being traditional authority and legal authority)

Weber defined charismatic authority as ‘resting on devotion to the exceptional sacredness, heroism or exemplary character of an individual person, and of the normative patterns or order revealed or ordained by him’

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The Charismatic Leader and the Transformational Leader can have many similarities, in that the Transformational Leader may well be charismatic

Their main difference is in their basic focus

Whereas the Transformational Leader has a basic focus of transforming the organization and, quite possibly, their followers, the Charismatic Leader may not want to change anything

Despite their charm and apparent concern, the Charismatic Leader may well be somewhat more concerned with themselves than anyone else

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Strategic direction at Steinway

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Beyond the theories ….The 5 levels of leadership – John

C. MaxwellPrimal Leadership – Daniel

GolemanBuilt to Last – Jim CollinsThe 8th Habit – Stephen R. CoveyGood to Great – Jim CollinsSpeed of Trust – Stephen M.R.

CoveyStraight From the Gut – Jack

Welch

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