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CHAPTER 6: LEADERSHIP DMG 1213 / DMG1113 / DPM1213 / DPM1113 Principles of Management Laura Law Perak College of Technology Laura Law Perak College of Technology

2015 POM Chapter 6 Leading

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Laura Law Perak College of Technology

CHAPTER 6: LEADERSHIP

DMG 1213 / DMG1113 / DPM1213 / DPM1113Principles of Management

Laura LawPerak College of Technology

Laura Law Perak College of Technology

LEADERSHIPThe ability to influence individuals or groups

toward the achievement of goals.

It is not a position, title or privilege. It is a responsibility

As a process of directing and influencing the task related activities of group members.

Laura Law Perak College of Technology

Importance of leadership

Make contributions to organization

Enhance and elicit (obtain) cooperation

Encourage teamwork

Motivate employees to generate good work

Laura Law Perak College of Technology

Type of Leadership

CHAPTER 6: LeadershipDMG 1213 / DMG1113 / DPM1213 / DPM1113

Principles of ManagementLaura Law

Perak College of Technology

Laura Law Perak College of Technology

1.Directive

2.Supportive

3.Participative

4.Achievement Oriented

Laura Law Perak College of Technology

DirectiveManagers will always make sure that subordinates know what whey are expected to accomplish

Achieved through

1. Giving orders/directions

2. Specific guidance

3. Asking Subordinates to follow rules and procedures

4. Scheduling and coordinating their subordinates duties

Laura Law Perak College of Technology

Supportive

Managers to concern for their

subordinates’ needs and welfare to create friendly working climate

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Participative

Consult with their subordinates and

taking their opinions and suggestions into

consideration

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Achievement OrientedSet challenging goals for subordinates

1.Seek Performance improvements

2.Emphasize excellence in their work

3.Show confidence

Laura Law Perak College of Technology

Theories of Leadership

CHAPTER 6: LeadershipDMG 1213 / DMG1113 / DPM1213 / DPM1113

Principles of ManagementLaura Law

Perak College of Technology

Laura Law Perak College of Technology

Theories of leadership

They are four (4)theory of leadership. 1- The Great Man Theory2- The Trait Theory3- Behavioral Theory4- The Contingency @ Situational

Theory

Laura Law Perak College of Technology

The Great Man Theory

Theories of Leadership - 1CHAPTER 6: Leadership

DMG 1213 / DMG1113 / DPM1213 / DPM1113Principles of Management

Laura LawPerak College of Technology

Laura Law Perak College of Technology

The Great Man Theory

Leaders are born in families of leaders.

Looking at the person, you can tell whether he/she will

be a leader in future.

Laura Law Perak College of Technology

The Trait Theory

Theories of Leadership - 2CHAPTER 6: Leadership

DMG 1213 / DMG1113 / DPM1213 / DPM1113Principles of Management

Laura LawPerak College of Technology

Laura Law Perak College of Technology

OUTLINE OF THE TRAIT THEORY

1.Traits of leaders and non leadersi. Physical Appearanceii. Charismaiii. Mental Abilityiv. Behavior/Attitudev. Personality Factors

2.Traits of Effective Leaders and non effective leaders

Laura Law Perak College of Technology

The Trait Theory1.Evaluation and selection of

leaders are based on their physical, mental and psychological characteristics

2.Leaders have certain inborn personality traits

3.Born with a certain physical characteristics, aspects of personality, and aptitudes

Laura Law Perak College of Technology

Traits of leaders and non leaders

Research was conducted to search for traits commonly found in leaders that could not be found in those who are not leaders

1. Physical characteristicsHeight, Appearance, facial expression, gesture

2. PersonalityEmotional stability, Dominance, Corporation

3. AptitudesCreativity, Verbal fluency, talkative/quiet

4. CharismaVision, Self-confidence, Assertiveness

5. Mental AbilitySharpness, Intelligence

Laura Law Perak College of Technology

Traits of Effective Leaders and non effective leaders

Comparing traits of effective and in effective leaders

IntelligenceSelf-assuranceManagerial supervisor ability

Gender

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The Behavioral

TheoryTheories of Leadership - 3

CHAPTER 6: LeadershipDMG 1213 / DMG1113 / DPM1213 / DPM1113

Principles of ManagementLaura Law

Perak College of Technology

Laura Law Perak College of Technology

OUTLINE OF THE BEHAVIROL THEORY

1. Leadership Functions

2. Leadership Stylesi. Task-oriented/ Production Centered

ii. Employee-oriented/People Centered

3. Managerial Grid (Leadership Grid)

Laura Law Perak College of Technology

Behavioral TheoryThis theory developed due to failure of the trait theory

Isolate (asingkan) the behaviors characteristics that different effective leaders and ineffective leaders.

Tried to find out what effective leaders did rather than who there are.

Stated people can learn the characteristics of a leader

People can be trained to become leaders

2 aspects of leadership behavior were look intoi. Leadership functions

ii. Leadership style

Laura Law Perak College of Technology

Leadership functionLeader is considered to be effective if he/she practices in these function

1. Practices task related/ problem solving function

providing solutions, offering information and opinion, counseling and giving advice.

2. Group maintenance/ social functionpracticing empathy and sensitive to subordinates feelings

Laura Law Perak College of Technology

Leadership StyleTask oriented

Setting performance goals, planning and scheduling work, coordinating activities, giving directions, setting standards, providing resources, and supervising performance

Relations oriented

Behavior that shows empathy for concerns and feelings, supportive of needs, showing trust and similar attributes

Laura Law Perak College of Technology

Managerial Grid2 dimensional matrix

Grid reflects the need for both task and employee-oriented style

5 leadership style depicted in the diagram

1,1

1,9

5,5

9,1

9,9

Concern for Production

Conce

rn fo

r People

Laura Law Perak College of Technology

Style (1,1)Impoverished Management/ Laissez-

Faire

Leader who give employee complete freedom to make decisions and to decide on work methods.

Low-concern for people and low concern for task or production

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Style (1,9) Country Club Management

Leader really care about producing a friendly working environment but does not pat attention to task or production.

High-concern for people and low concern for task or production

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Style (5,5) Middle of the Road

Management

Leaders show moderate amount of concern for people and task or production

Both satisfaction concern

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Style (9,1) Autocratic Management/

Dictator

Leader wants work schedule to be followed at all cost

Low-concern for people and high-concern for task or production

Laura Law Perak College of Technology

(Style 9,9) Democratic/Team/Participative

Management

Work accomplished from committed people, interdependence, through common interests as well as a relationship of trust and respect.

High-concern for people and high-concern for task or production

Laura Law Perak College of Technology

The Contingency

TheoryTheories of Leadership - 4

CHAPTER 6: LeadershipDMG 1213 / DMG1113 / DPM1213 / DPM1113

Principles of ManagementLaura Law

Perak College of Technology

Laura Law Perak College of Technology

Contingency approachFocuses on situational factors that influence managerial styles.

Tries to identify factors that contribute to effectiveness of leadership styles in each situation

The theory determined:-

There is no one leadership style appropriate in all situations

Appropriate leader behavior varies from one situation to another. The styles of the leader will depend on situational factors such as:-i. Leader-member relations

ii. Task Structure

iii. Position Power

iv. Employees’ Characteristics, experience and expectation

v. Organizational Culture and Policies

Laura Law Perak College of Technology

Leadership Models

1.Path-Goal Theory

2.Life-Cycle or Situational Approach

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The Path-Goal ModelAccording to the theory,

1. Leader’s job to assist followers in attaining their goals and provide the necessary direction and support.

2. Effective leaders clarify the path to help their works goals and make the journey along the path easier by reducing roadblocks and pitfalls.

3. Assume leader’s style is flexible and can be changed to adapt the situation.

4. Four leadership behavior; Directive, supportive, participative and achievement-

oriented

Laura Law Perak College of Technology

Leadership Behavior1. Directive

Let employees know what is expected of them, schedules work to be done and gives specific as to how to accomplish tasks. Appropriate goals are established。

2. SupportiveFriendly and show concern for needs of employees. Leader provides assistance on employees’ path toward goals

3. ParticipativeConsults with employees and uses their suggestions before making a decision. Employees become satisfied and motivated and accept the leader

4. Achievement-orientedSet challenging goals and expects employees to perform at their highest levels. Effective performance occurs

Laura Law Perak College of Technology

Leaders’ Behavior

• Directive•Supportive•Participative•Achievement-oriented

Environmental

Contingencies

Employee Contingenci

es Leader effectiveness

•Employee Motivation•Employee Satisfaction•Leader Acceptance

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Life- Cycle TheoryLeader should change his style leadership

according to the level of maturity of his employee and demand of situation

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MaturityDefined as

- a desire for achievement

- the willingness and ability to accept responsibility

- the education/ experience and skills relevant to particular tasks.

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IMMATUREMATURITY

Laura Law Perak College of Technology

The diagram shows;

1. The amount of task behavior that the leader shows.

providing direction, guidelines, controlling, monitoring

2. The amount of relationship behavior the leader provides.

providing consideration and level of emotional support

3. The level of task maturity the followers show towards achieving specific goals that the leader wants accomplished.

tasks or functions

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PHASES IN DISGRAMPhase 1 – TELLING

• High task, low relationship

• One-way communication

• T: Defines the goal and roles of employees and tell them what, how, when and where to do the task

• R: For employee lack of task relevant maturity

• New Employee

Phase 2 – SELLING

High task, high relationship

T: Employee learning to do the job

R: Employees lack experience and skills to assume responsibility

Manager providing high level of emotional support and encouragement to develop trust and confidence in employee

Laura Law Perak College of Technology

PHASES IN DISGRAMPhase 3 – PARTICIPATING

High relationship, low task

Employee show maturity in performing tasks are more experienced and skilled as well as more achievement-oriented

Motivated to assume more responsibility

Reduce R but continues to give emotional support and consideration to increase employees’ level of responsibilities

Phase 4 DELEGATING

Low relationship, low task

Highest level of employees maturity, possess a high level of task maturity

Skilled experienced and motivated to assume more responsibility

They are self-directed and are able to exercise self-control

Laura Law Perak College of Technology

OTHER TERMS

CHAPTER 6: LeadershipDMG 1213 / DMG1113 / DPM1213 / DPM1113

Principles of ManagementLaura Law

Perak College of Technology

Laura Law Perak College of Technology

POWERDefinition:

- The ability to influence the behavior of others.

- The ability to marshal human, informational or material resources to get something done. (Lewis, 1998)

- There are five types of power; that are legitimate power, reward power, coercive power, referent power and expert power

Laura Law Perak College of Technology

LEGITIMATEInfluence based on leader’s formal position in the

organization’s hierarchy

Access to resources, information and key decision makers gives some leader legitimate power

Benefits of legitimate power;Get a good job for a talented employeeObtain approval for expenditures beyond the budgetProvide easy access to top people in the companyEnsure knowing early about important decisions ad

policy shifts

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RewardInfluence from leader’s ability

to satisfy follower’s needs

Employees act on a supervisor’s requests because they believe that their behaviors will be rewarded

Laura Law Perak College of Technology

CoerciveAbility of leader to obtain compliance through

fear or punishment

Punishment may take the form of official reprimands, less desirable work assignments, pay cuts & demotions and suspensions & termination

Usually less effective than reward power for the same reasons that punishment has a limited effect as a motivator and some employees respond to coercion

Laura Law Perak College of Technology

Referent Power

Influence based on followers are apt (quickly to learn) to like, admire and want to emulate the leader

Usually is possessed by leaders who have admirable personal characteristics, charisma and excellent reputations

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Expert powerBased on a leader’s

specialized knowledge and subordinates act on

the leader’s recommendations because

of leader’s knowledge