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11/21/2014 DBA 303 1
Effective leadership
I am more afraid of an army of 100 sheep led by a lion than an army of 100 lion led by a sheep
11/21/2014 DBA 303 2
Quick Reflections
What are some typical leadership
behaviors that come to mind?
11/21/2014 DBA 303 3
What is leadership
Definition
Enabling groups of people to face challenges and
achieve results in complex situations
Involves creating a positive work culture
characterized by strong relationships with your
colleagues, and staff, trust, dedication, hardwork,
and teamwork
11/21/2014 DBA 303 4
When you boil it all down, contemporary leadership
seem to be a matter of aligning people towards
common goals and empowering them to take the
actions needed to reach them ( Fortunes article)
Being able to create the kind of meaning for people,
the values that make sense to them, where there is
enough trust in the system … (W. Bennis)
11/21/2014 DBA 303 5
Leadership (cont..)
Leadership is about responsibility -leadership
is not a rank, privileges, titles, or money. It is
about responsibility
Leaders do not start with “ what do I want”
but rather start with “what needs to be done”
Then they ask “what can and should I do to
make a difference”
11/21/2014 DBA 303 6
Leadership (cont..)
Leadership is done with others - Mobilizing
people through out the organization to do
adaptive work
Leadership happens at all levels – What ever
level you are, whatever your job, you can
bring new insight, new leadership, to your
team or to your group
11/21/2014 DBA 303 7
Leadership is the art of inspiring subordinates or followers to perform their duties willingly, competently, and enthusiastically.
Leadership is a social influence process in which the leader seeks voluntary participation of the followers in order to achieve organizational objectives.
Leadership is both process and property. As a process, leadership involves the use of noncoercive influence to direct and coordinate the activities of the members of an organized group towards the achievement of group objectives.
11/21/2014 DBA 303 8
As a property, leadership is a set of qualities or
characteristics attributed to those who are perceived
to successfully employ such influence. Such
qualities include:
Ability to inspire the other.
Ability to understand human behavior.
Ability of verbal assertiveness.
Willingness to take risk.
Meaning
The art of influencing others to direct their
will, abilities and effort towards the
achievement of the group goals
Therefore in organisations, leadership is
influencing individuals and groups effort
towards the optimum achievement of
organizations objectives
11/21/2014 DBA 303 9
Leadership focuses on “people” aspect of
management and is based on the assumptions
that organizational effectiveness significantly
depends on their :
Motivation
Effort
Abilities
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In spite of seeming discontent at least with the
traditional approaches to leadership theory
and practice, throughout history, the
differences between success and failure,
whether in a war, a business, a protest
movement, a sports etc have been attributed to
leadership
11/21/2014 DBA 303 12
A recent study by Gallup survey indicates that
most employees believe that it is the leader,
not the company, that guides the culture and
creates situations where workers can be happy
and successful
The manager in his leadership role therefore
stimulates and inspires employees to contribute
willingly to the optimal achievement of
organizational goals
Leadership is therefore an important
ingredient of managing. Managers cannot
effectively manager unless he can lead his
subordinates effectively
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Leadership traits and
characteristics
Are leaders born or made?
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Belief by many modern scholars
Believes that leadership capacities and competencies can be acquired but the desire to learn must be there.
Leadership is a goal to be pursued, not a gift to be bestowed only upon a lucky few.
The best leaders make a personal choice to continually assess and constantly develop their leadership capabilities
11/21/2014 DBA 303 16
Leaders vs. managers
Who are the Leaders and Who
are the Managers?
Leaders Vs Managers
What is Different between Them?
Researchers seem to agree that the best way to explain the traits and characteristics of leaders is to compare their roles, actions, habits and responsibilities with those of what is regarded as ‘traditional’ managers.
The following is a composite of these traits and characteristics differentiating between leaders from managers.
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Leaders…… Managers…..
Do the right thing Do things right
Are interested in effectiveness Are interested in
efficiency
Innovate Administer
Develop Maintain
Focus on people Focus on systems and
structure
Rely on trust Rely on control11/21/2014 18
Leaders Vs Managers cont…d
Challenge the status quo Accept the status quo
Focus on the future Focus on the present
Have their eyes on the horizon Have their eyes on the
bottom line
Develop visions and strategies Develop detailed steps
and timetables
Seek change Seek predictability and
order
Take risks Avoid risks
11/21/2014 19
Leaders Vs Managers cont…d
Inspire people to change Motivate people to
comply with standards
Use person-to-person influence Use position-to-position
influence
Inspire others to follow Require others to
comply
Operate outside of organizational
rules, regulations, policies and
procedures
Operate within
organizational rules,
regulations, policies and
procedures
Take initiative to lead Are given a position 11/21/2014 20
Leaders Vs Managers cont…d
Align people with a direction Organize and staff
Emphasize philosophy; core
values, and
shared goals
Emphasize tactics,
structure and systems
Have a long-term view Have a short-term view
Ask what and why Ask how and when
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Leaders Vs Managers cont…d
Approaches to Leadership Great man theory
Traits approach
Behavioral approach
Situational
John Adair, 2002, Effective strategic leadership11/21/2014 22
Leaders are born and great leaders will arise
when there is a great need
In time of need a Great Man would arise –
almost magically
Based on early research of leadership which
was based on people who are already leaders
Leaders associated with great man theory –
Eisenhower, Churchill, Jesus, Moses,
Mohammed 11/21/2014 DSM 504 23
The Great Man theory
The Traits approach
11/21/2014 24
Before 1950s researchers sought to understand leadership by comparing traits of leaders with followers and effective leaders with ineffective leaders
This search for features/traits of a leader was prompted by a belief that leaders somewhat possess distinguishing traits that set them apart form other people
The traits approach …..
11/21/2014 25
This approach analyses leadership by
identifying a number of characteristics that
would distinguish an effective leader from an
ineffective leader.
It comprise of specific qualities that a leader
should posses in executing his/her roles e.g.
ability to make decisions, loyalty, sense of duty,
etc.
This approach analysis leadership by
identifying a finite number of characteristics
that would distinguish a n effective leader
form an ineffective leader.
measures of a leaders effectiveness under
traits approach are influenced by traits such
as physical, social psychological or
personality characteristics,
DBA 303 26
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Some traits
Intelligence
Dominance
Self confidence
Task relevant knowledge
Level of energy and activity
Charismatic
Enthusiastic
Courageous
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Some common attributes of a
leader…
Traits
Adaptive to situations
Alert to social environments
Ambitious and achievement oriented
Assertive
Cooperative
Decisive
Dependable
Dominant desire to influence
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persistent
Self confidence
Tolerant to stress
Willing to assume responsibility
Calmness in crisis
Energy
Determination
Resolute courage
Sense of justice
Initiative
Humor
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Physical factors:
Activity level
Appearance
Height
Weight
Physical fitness
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Skill
Conceptual skills
Analytical skills
Creative
Diplomatic and friendly
Effective speaking
Knowledgeable about group task
Organised administrative ability
Persuasive
The characteristics
Ability to inspire others - some leaders are
charismatic, have the qualities of being extra
special, attractive, and interesting
Ability to understand human behaviour -
successful leaders realize that they get their
job done through people and therefore try to
develop social understand and appropriate
skills
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Similarity to the group – those who emerge
as successful leaders are generally not too
different form the group - e.g. a senior
executive would probably not be accepted as
a production foreman because of the wide
differences in his education, viewpoints and
interests
11/21/2014 DBA 303 33
Verbal assertiveness – by nature leaders seem
not to be shy. They are able to present their
views in a confident manner and hold the
passion when attacked. A leader has the
ability to speak up when others feel they
should not because of fear of being ridiculed
Willingness to communicate honestly - to
tell the truth otherwise a credibility gap will
develop, discuss issues and problems that are
not particularly pleasant but are important 11/21/2014 34
Dedication to organizational goals - how
committed is the leader to the organizational
objectives being sought
Dedication is demonstrated by hard work, self
sacrifice, believing in the goals
Ability to set examples to be followed –
displays a behaviour of do as a do
11/21/2014 DBA 303 35
Willingness to take risks – risk is the
possibility of loss, injury, disadvantage or
defeat. Generally maintaining the status quo is
not indicated of leadership. People want to
follow somebody who will take them to the
“promised land” even if some risk is involved
But leaders may not take too great risk
because doing so may make their follower too
fearful, and panic or even dissertation may
result - taking risks in the right proportion
makes the organisation exciting
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Willingness to assume full responsibility –
taking full responsibility when one could shift
it to somebody else is leadership
Willingness to be supportive of other
personnel – people respect managers who
pass credit to them when an effort is
successful . Being supportive also means
representing them to upper level
management to get the financial and physical
resources needed to do the job ( pay, benefits,
working conditions etc)
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Skill in the art of compromise - settle
difference by arbitration or mediation - helps
people reach intermediate solutions
Ability to tolerate criticism – since leaders
have radical and unusual ideas, they are
subjected to a lot of criticism from followers
and colleagues. Therefore must be prepared to
accept criticism from those affected by the
plans they make -11/21/2014 DBA 303 38
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Criticism of traits approach As more studies were done under this approach, the
number of traits of suspected importance began to grow and the results became increasingly mixed, with no clear pattern of traits that was strongly and consistently related to leadership
Several studies on traits approach seem to disagree on the required traits of a leader.
Some say that as far as physical traits are concerned, leaders tend to be bigger and brighter than those being led
Criticism of traits approach cont…
Personality of a manager alone does not indicate
leadership ability
Some effective leaders are brush, loud, aggressive etc
Others are quiet, soft spoken, mild tempered
Nor is popularity synonymous with leadership ability–
the most popular person may not be the best leader–
leaders must be more than just nice
generally, leaders are observed to be outgoing and
socially assertive, yet some outstanding leaders like
Mahatma Gandhi and Abraham Lincoln were relatively
shy and withdrawn11/21/2014 DBA 303 40
Criticism of traits approach cont…
Education, family status and background of a
person are poor guidelines in predicting a persona
chance of being an effective leader. Leaders may
or may not have university education, come form
a high- profile or low level income families
Therefore while it is difficult to pin down the
precise quality that make a superior leader,
leaders do seem to personal and behavioral
characteristics 11/21/2014 DBA 303 41
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Criticism of traits approach cont… Political analysis indicates that candidates should not come
out as too intelligent to be electable
The most intelligent member of a criminal gang is not the leader
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THE BEHAVIORAL APPROACH
Is based on how a leader use of authority in social
situation
As interest in the early traits approach to leadership
began to decline, researchers focuses their attention
on leaders actions rather than on their attributes
They tried to identify specific styles of leaders
conduct and attempted to discover where leaders
behaviour was associated with employee attitudes
and performance
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Leadership styles identified University of IOWA Leadership Studies
Authoritarian
Democratic
Laissez –faire
Likerts systems approach
The managerial Grid – Robert Blake and Jane Mouton
Directive vs. Participative Leadership – Tannenbaum and W. Schmidt
Charismatic leadership
Transactional leadership vs. transformational leadership
Autocratic/authoritative leader
Gives definite instructions
Demands compliance
Emphasis task performance
Exercise close supervision
Permits very little or no subordinate influence
on decisions
Do not welcome suggestion form
subordinates
E11/21/2014 DBA 303 45
Uses coercion, threat and authority to enforce
discipline and ensure performance
Is leader centred, production centred, directive
leadership styles
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Democratic/participative
Involves subordinates as individuals and as
groups in decision making, relating to their
goals and plans
Permits them to take initiative and judgment
Emphasis groups efforts
Exercise broad supervision
Motivates employees to higher level of
performance11/21/2014 DBA 303 47
Uses influence rather than authority
Builds a two way communication
These leaders are called employee centred,
consultative, permissive, equalitarian
Laizzes faire
Takes no interest in production or in people “ lets
things drift” 11/21/2014 DBA 303 48
Comments from research done on
each of the styles
Authoritarian:
impaired groups morale and initiative
Generates hostility and fosters aggressive
behaviour
Leads to high rage of grievance and absenteeism
Dissatisfaction with work
Autocratic led groups tend to stop working and
engage in horseplay whenever the leader left the
room11/21/2014 DBA 303 49
Although there is a tendency for authoritarian
groups to produce more output, the quality of
output tend to be higher in the democratically led
groups
11/21/2014 DBA 303 50
Democratic
Promotes high morale and positive attitude
towards the leader and work
Lowers rate of grievances, turnover and
absenteeism
Greater acceptance of decisions and greeter
commitment to implement themselves
High level of performance and productivity
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Results
Democratically led groups were more satisfied and
displayed less aggression towards one another than in the
autocratically led groups
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Is autocratic leadership all bad…. Autocratic leadership may not always be
inappropriate.
Some situations may call for urgent action and in these cases autocratic style of leadership many be the best
Most people are familiar with the autocratic leadership and therefore have less difficult in adopting that style
In some situations, subordinates may actually prefer an autocratic style
Likert’s System 1 – 4 approach
Rensis Likert (New York , 1967) regards
leadership as central and most important
component of management
In his view, organizational effectiveness
significantly depends on the manner in which
managers provide leadership to their
subordinates.
11/21/2014 DBA 303 54
He proposes the most effective way to lead
people is to:
Involve them in decision making as a group
Build an effective communication system
Create a supportive environment that provides
employees opportunities to seek fulfillment
of their personal goals and group needs and
realize their sense of personal growth 11/21/2014 DBA 303 55
Likerts four systems – Leadership
styles
System 1 – Exploitative -authoritative
System 2 – Benevolent -authoritative
System 3 – consultative
System 4 – participative group leader
11/21/2014 DBA 303 56
System 1 – Exploitative-
Authoritative
Highly production – oriented leaders
Display no confidence in their subordinates
Subordinates do not participate in decision
making
They seldom seek or use subordinates ideas
Uses fear, threats, punishment and occasional
reward to enforce compliance
Engage in mainly downward communication11/21/2014 DBA 303 57
System 2 – Benevolent-
Authoritative
Shows conscious courtesy towards his
subordinates
Show confidence and trust in the subordinates
Sometimes seeks and uses their ideas
reward and sometimes actual and potential
punishment to get out performance
Allows some delegation in decision making
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Exercise close supervision
Permits some upward communication
Creates an environment in which subordinates
do not feel quite free with their superior to
talk about their problems
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System 3: Consultative
Displays substantial confidence in their
subordinates
Consults them before making decisions, but
makes decisions themselves
Usually seeks and uses their ideas
Motivates them by giving reward and
occasional punishment
11/21/2014 DBA 303 60
Engages in both downwards and upward
communication
Makes important decisions themselves and
delegates routine ones to the subordinates
11/21/2014 61
System 4: participative group
leader
Advocates work-groups and the leader being
the linking pin between groups
Advocates supportive relationship – i.e.
creates an environment of mutual support,
trust and confidence
Advocates high performance group goals – set
high performance goals for them
Has full confidence in the group 11/21/2014 DBA 303 62
Seeks and uses subordinates ideas
Gives reward on the basis of group
performance
Engages in effective up/down/sideways
communication
11/21/2014 63
Strongly proposed by Likert – this system:
achieves a high level of performance
builds a healthy supportive and environment
Enhances morale and satifaion of employees
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The managerial Grid – Robert
Blake and Jane Mouton
This approach focuses on various blends of
leadership styles and explains its leadership
styles by use of a grid
In the Managerial Grid, the various
combinations of a concern for people and a
concern for production defines five major
leadership styles
The Managerial Grid1,9
Country club management
Thoughtful attention needs of people
for satisfying relationships leads to
A comfortable, friendly organization
atmosphere and work tempo
9,9
Team management
Work accomplishment is from
committed people, interdependence
through a “common stake” in organization
purpose leads to relationship
of trust and respect
1,1
Impoverished Management
Exertion of minimum effort to get
required work done is appropriate
to sustain organization membership
5,5
Organization Man Management
Adequate organization performance
possible through balancing the necessity to
get out work with maintaining
morale of the people at a satisfactory level9,1
Authority-Obedience
Efficiency in operations results
from arranging conditions of
work in such a way that human
elements interfere to a minimal degree
1
2
3 4 5 6 987
1
2
3
4
5
6
7
8
9
Concern for productionLow High
Low
High
Conce
rn f
or
peo
ple
© 2007 Prentice Hall Inc.
All rights reserved.
The Managerial
Grid(Blake and Mouton)
E X H I B I T
12–1
11/21/2014 DBA 303 68
1,1 impoverished manager
Puts minimum effort to get the required work done
Shows very little concern for people or production.
Very much like Laissez Faire leader who just lets things drift.
He is neither close to production requirements or employee needs.
Has minimal standards.
11/21/2014 DBA 303 69
1,9 Country Club Manager
This just aims at keeping the boys happy and has little concern for production
Involves thoughtful attention to the needs of the people
He thinks that if he takes care of employees production will take of itself.
Unfortunately, happy workers are not necessarily productive
Gives careful attention to people to create a meaningful relationship and friendly atmosphere.
11/21/2014 DBA 303 70
9,1 authority/obedience manager
Emphasize efficiently in operations that result from arranging work conditions in such a way that human element can only interfere to a small degree
Shows maximum concern for production and minimum concern for people
He is authoritarian
Demands compliance by using mainly threats and coercion
Exercises close supervision
Allows employees little or no chance for decision making.
He causes employees alienation from the organization by frustrating their needs.
11/21/2014 DBA 303 71
5,5 middle-of-the-road manager
Emphasizes both production as well as employee need satisfaction but not maximizing.
Obtains adequate but not optimal performance
Involve people in decision making
Uses and seek their ideas
Engage in up and down communication.
Providing an environment for employee need satisfaction
Though they do not optimize on any of these dimensions.
11/21/2014 DBA 303 72
9,9 Team manager
Places maximum emphasis on production as well as people
They are team managers.
They integrate the individual and group such with organizational goals, thus optimize on both dimensions-employees involvement and need satisfaction as well as production.
This is the most effective leadership style.
11/21/2014 DBA 303 73
The managerial grid model assumes that there
is one best or most effective style of
management – the team management style.
Managers who emphasize both concern for
people and production are presumed to be
more successful
11/21/2014 DBA 303 74
Directive vs. participative
leadership
This focus attention on incorporating power sharing
into leadership
It says power-sharing can occur to varying degree:
from -
Genuine control over decisions that are made,
to providing input to the final decision,
to consultation,
to mere tokenism and the misuse of the term participative
to manipulate other
11/21/2014 DBA 303 75
Tannenbaum and Schmidt have suggested that participation is based on the amount of authority used by the supervisor in relation to the amount of freedom permitted to subordinates
Their views are presented in a continuum ranging from boss-centred leadership to subordinate centred leadership
The use of the authority by manager diminishes in the continuum
11/21/2014 DBA 303 76
Results of the studies
Studies on the cost and benefit of participative Vs directive style of leadership have not shown convincingly that either style is more commonly superior
In some instance, the cost of employee participation may offset the benefits
In other instances, however, participation is favour over directive leadership especially where employee loyalty, job satisfaction and commitment is high
11/21/2014 DBA 303 77
From the lowest to the highest level
of the continuum
Manager makes decisions and announces it
Manager sells decision
Manager presents ideas and invites questions
Manager presents tentative decision subject to change
Manager presents problem, get suggestion, and makes decisions
Manager defines limits ask group to make decisions
Manager permits subordinates to function within limits defined by supervisor,
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Contingency Theory of leadership
post-World War II development
Mere qualities alone are no longer valid
The previous approaches concentrated on
only leaders themselves and fell short of
being an of addressing the various intervening
determinants of leadership
11/21/2014 DBA 303 83
The Theorist supporting
Contingency approach
Fred Fiedler Contingency Theory (1961)
Path-Goal Leadership Theory ( Martin Evans
and Robert House (1971)
11/21/2014 DBA 303 84
Contingency theory turns its attention to:
The group being led
The exchange relationship between the leader and
the group
The situational aspect of leadership
11/21/2014 DBA 303 85
It is believed that there are situational variables that
affect:
Leadership roles
Leadership Skills
Leadership Behaviours
Followers performance and satisfactions
These variables have been identified by Fred Fielder
in his Contingency Model of Leadership
effectiveness
11/21/2014 DBA 303 86
Fiedler’s Contingency Model of
Leadership Effectiveness
This model contains the relationship between
leadership style and the favourableness of the
situation
It says that a leaders behaviour required for
effective group performance depends on the
favourableness or unfavourableness of the
situation
11/21/2014 DBA 303 87
Situational factor in Fiedler’s
Contingency Model
Leader-member relationship ( with group
members)
1. Degree of task structure ( nature of task)
2. The leaders position power (arising from the
organisation structure)
11/21/2014 DBA 303 88
Situation is favourable to the
leader if ….
All the three dimensions are high i.e.
The leader is generally accepted, respected, gets support from the followers and the group is ready to be directed ( high first dimension)
The extent to which the task is structured is clearly defined so that it can be delegated, controlled and evaluated ( high second dimension)
If a great deal of authority and power are formally attributed to the leaders position ( high third dimension)
11/21/2014 DBA 303 89
The situation is unfavourable if…
The tasks are very ambiguous
The leader position authority is weak
The group relationship with the leader is poor –
no respect, support or acceptance
Fiedler concluded through his research that
the favourableness of the situation in
combination of the leadership style
determines leadership effectiveness
11/21/2014 DBA 303 90
Based on the analysis of Fiedler findings from
all types of situations, Fielder discovered that:
Under very favourable and very
unfavorable situation … the task- directed,
hard-nosed and authoritarian, type of a
leader was most effective
11/21/2014 DBA 303 91
However, when the situation is moderately
favourable or unfavourable ( the
intermediate range of favourableness),……
the human oriented or democratic type of
leader was most effective
Findings of the Fiedler Model
• Category
• Leader-Member
Relations
• Task Structure
• Position Power
I
Good
High
Strong
II
Good
High
Weak
III
Good
Low
Strong
IV
Good
Low
Weak
V
Poor
High
Strong
VI
Poor
High
Weak
VII
Poor
Low
Strong
VIII
Poor
Low
Weak
Good
Poor
Per
form
ance
Relationship
-Oriented
Task-Oriented
Favorable Moderate Unfavorable
11/21/2014 DBA 303 93
Why is the tasks- directed leader
successful in very favourable
situations….
In very favourable situations in which the
leader has power, informal backing and
relatively well structured task, the group is
ready to be directed, and the group expect to
be told what to do
11/21/2014 DBA 303 94
Why tasks- directed leader is
successful in very unfavourable
situations….
In this situation, the effective leader will take
charge and make the direction that need to be
made to accomplish a task without asking for
input and trying to keep everyone happy,
otherwise nothing will be done
11/21/2014 DBA 303 95
When human oriented, democratic
leader is effective..
Will be effective in the intermediate range of
favourableness
E.g. In a committee where the leader may not be
wholly accepted by other members, and the task is
not completely structured, and some authority or
power is granted to the leader
The same moderate favourable situation applies
often managers and supervisors
11/21/2014 DBA 303 96
Path- Goal Leadership Theory
The path Goal Theory attempts to explain the impact
that leader behaviour has on subordinate motivation ,
satisfaction, and performance
It emphasizes that leaders can optimize
organizational effectiveness by influencing the path-
goal perception of subordinates and their need
satisfaction
© 2007 Prentice Hall Inc.
All rights reserved.
Path-Goal TheoryPremise
• Leader must help followers attaining goals and reduce roadblocks to success
•Leaders must change behaviors to fit the situation (environmental contingencies & subordinate contingencies)
Path-Goal TheoryLeader is seen as important in providing a path
for employees to attain desired goals
• Directive [leader tells subordinates how to perform tasks; provides
guidelines and structure]
• Supportive [leader shows caring and concern for subordinates’ well-
being]
• Participative [leader involves subordinates in decision-making]
• Achievement-oriented [leader sets specific and challenging goals;
promotes high work-related aspirations and goal attainment]
Leadership Behaviors (must be able to use all four types when
necessary. Use varies with such factors as employee ability,
work environment, group size)
11/21/2014 DBA 303 99
Path- Goal theory situational factors
The path-goal theory suggests that these various
styles can be and actually are used by the same
leader in different situations ( differs from Fiedler’s
model in this respect)
Two situational factors that have been identified are:
The personal characteristics of the subordinates
(subordinate contingency factors)
The environmental pressures and demands facing the
subordinates ( environmental contingency factors
11/21/2014 DBA 303 100
Four Major styles of leadership – R.
House
1. Directive leadership: subordinates know exactly what is expected of them, and the leader gives specific direction. There is not participation by subordinates
2. Supportive leadership: the leader is friendly and approachable and shows a genuine concern for subordinates
3. Participative leadership: The leader asks for and uses suggestions form subordinates but still makes the decision
11/21/2014 DBA 303 101
Styles of leadership – R. House (cont..)
4. Achievement- oriented leadership: The
leader sets challenging goals for subordinates
and show confidence that they will attain
these goals and perform well
Path Goal TheoryEnvironmental Contingency Factors
• Task Structure
• Formal authority system
• Work Group
Subordinate contingency factors
•Locus of control
•Experience
•Perceived ability
Outcomes
•Performance
•Satisfaction
Leader Behavior
•Directive
•Supportive
•Participative
•Achievement -oriented
11/21/2014 DBA 303 103
Using one of the four styles contingent on the
situational factors outlines, the leader attempts
to influence subordinates’ perceptions and
motivate them, which in turn lead to their role
clarity, goal expectancies, satisfaction , and
performance.
11/21/2014 DBA 303 104
How can leaders accomplish
effectiveness under this theory?
1. Recognizing and/or arousing the subordinates
needs for outcome/reward over which the
leader has some control
2. Increase his personal payoff for goal
attainment
3. Making the path for those pay-offs easier to
travel by coaching and directing
4. Helping subordinate clarify his expectations
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How can leaders accomplish
effectiveness under this theory?
5. Reduce frustrating barriers
6. Increase opportunities for personal satisfaction
contingent on effective performance
In other words, by doing the above, the leader attempts to
make the path to subordinates goal as smooth as possible
But to accomplish the path-goal facilitation, the leader
must use the appropriate style contingent on the situation
variables present
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Modern theoretical processes of
leadership
The contingency and path goal theories have a relative degree of acceptance. But despite this scholars feel that much more research on leadership needs to be conducted and a number of other theories have recently emerged.
These include:
The charismatic
Transformational leadership
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Charismatic leadership theories
Charismatic leaders are persons “ who by the
force of their personal abilities are capable of
having profound and extraordinary effect on
followers”
Studies of identifiable charismatic individuals
indicate that charismatic types are often
rejecting of formal authority and are willing
to take personal risk because of their strong
convictions
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Bernard Bass and Bruce in their study of
charismatic leaders found that they are rated
more highly on their effectiveness as leaders
and have subordinates who are more highly
satisfied with their leadership
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Charismatic leadership (cont…)
The modern development of charismatic
leadership is attributed to the work of Robert
House
He suggests that charismatic leaders are
characterized by self confidence and
confidence in subordinates, high expectations
for subordinates, ideological vision and the
use of personal example
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Charismatic leadership (cont…)
Followers of charismatic leaders identify with
the leader and the mission of the leader,
exhibit extreme loyalty to and confidence in
the leader, emulate the leaders values and
behaviour and derive self esteem form their
relationship with the leader
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Charismatic leadership (cont…)
Another author Bass Bernard has extended
the profile of charismatic leaders to include
superior debating and persuasive skills as well
as technical expertise and fostering of
attitudinal, behavioral, and emotional changes
in their followers
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Charismatic leadership (cont…)
Because of the effects the charismatic leaders
have on followers, the theory predicts that
charismatic leaders will produce in followers
performance beyond expectations as well as
strong commitment to the leader and his/her
mission
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Charismatic leadership (cont…)
Research indicates that the impact of such a
charismatic leader will be enhanced when the
followers exhibit higher levels of self
awareness and self-monitoring, especially
when observing the charismatic leaders’
behaviours and activities and when operating
in a social network
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Types of charismatic leadership styles
Envisioning
To create a picture for the future – or a desire end future state - with which people can identify and can generate excitement For example articulating a compelling vision and/or
setting high expectations
Energizing
Directing the generation of energy, the motivation to act, among members of the organisation For example demonstrating person excitement and
confidence and seeking, finding and using success
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Enabling
Psychologically helping people act or
performing in the face of challenging goals
For example expressing personal support and
empathizing
Charismatic Leadership – Key characteristics
Self Confidence- They have complete confidence in
their judgment and ability.
A vision- This is an idealized goal that proposes a
future better than the status quo. The greater the
disparity between idealized goal and the status quo,
the more likely that followers will attribute
extraordinary vision to the leader.
Ability to articulate the vision- They are able to
clarify and state the vision in terms that are
understandable to others. This articulation
demonstrates an understanding of the followers’ needs
and, hence acts as a motivating force.
Strong convictions about vision- Charismatic
leaders are perceived as being strongly committed,
and willing to take on high personal risk, incur high
costs, and engage in self-sacrifice to achieve their
vision.
Behavior that is out of the ordinary- Those with
charisma engage in behavior that is perceived as
being novel, unconventional, and counter to norms.
When successful , these behaviors evoke surprise
and admiration in followers.11/21/2014 DBA 303 117
Perceived as being a change agent-
Charismatic leaders are perceived as agents
of radical change rather than as caretakers of
the status quo.
Environmental sensitivity- These leaders
are able to make realistic assessments of the
environmental constraints and resources
needed to bring about change.
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Dark side of charismatic leadership
Charismatic leadership has been seen to have its bright and dark side
Franklin Roosevelt, John F. Kennedy, Mahatma Gandhi, Nelson Mandela have shown the bright side
Adolph Hitler, and the like have shown the dark side – where these leaders have encouraged followers to be devoted to them rather than commitment ideological principles
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The dark side of charismatic leadership
Charismatic leaders tend to be portrayed as
wonderful heroes,
But there can also be unethical characteristics
associated with charismatic leaders as noted
by Jane Howell an Bruce Avolio (1992)
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Ethical and unethical characteristics of
charismatic leaders
Ethical charismatic leader
Aligns vision with followers needs and aspirations
Considers and learns from criticism
Stimulates followers to think independently and to question the leaders view
Unethical charismatic leader
Uses power only for personal gain or impact
Promotes own personal vision
Censures critical or opposing views
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Ethical and unethical characteristics
(cont..)
Open two-way communication
Coaches, develops, and supports follower; shares recognition with others
Relies on internal moral standards to satisfy organizational and societal interests
One way communication
Insensitive to followers needs
Relies on convenient, external moral standards to satisfy self interests
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Transformational leadership theory Transformational leadership is based more on
leaders shifting the values, beliefs and needs of their followers unlike the transactional leadership which involves exchange relationship between leaders and followers
Transactional leadership refers to the everyday exchanges that takes place between leaders and subordinates as they routinely perform their duties
Transformational leadership , is a more broader concept than charismatic and implies reshaping entire strategies of an organisation
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Transformational leaderships elevates the
goals of subordinates and enhances their self
confidence to strive for higher goals
According to Bernard Bass, in their approach,
transformational leaders differ from
transactional leaders in the following ways:
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Transformational vs. transactional
leadership
Transactional leaders:
Contingent rewards:
Contracts the exchange
of reward for effort;
promises reward for
good performance;
recognizes
accomplishment
Transformational
leaders
Charisma: provides
vision and sense of
mission, instill pride,
gains respect and trust
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Transformational vs. transactional
leadership (cont..)
Management by
exception (active):
watches and searches
for deviations form
rule and standards;
taken corrective action
Inspirational:
communicates high
expectations ; uses
symbols to focus effort,
expresses important
purposes in a simple
way
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Transformational vs. transactional
leadership (cont..)
Management by exception
(passive): Intervenes only
if standards are not met
Laissez-faire: abdicates
responsibility and avoids
making decisions
Intellectual stimulation:
promotes intelligence;
rationality, and careful
problem solving
Individual consideration;
Gives personal attention,
treats each employee
individually ; coaches and
advises
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Transformational vs. transactional
leadership (cont..)
Bass concludes that in many instances (such
as relying on passive management by
exception), transactional leadership is a
prescription for mediocrity and the
transformational leadership leads to superior
performance in organisations facing demand
for renewal and changes
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Characteristics of transformational
leaders
They identify themselves as change agents
Courageous
Believe in people
Are value driven
They are lifelong learners
Have the ability to deal with complexity, ambiguity and uncertainty
Are visionary
Charisma : Provides vision and sense of mission,
instills pride, gains respect trust.
Inspiration: Communicates high expectations, uses
symbols to focus efforts, expresses important
purposes in simple ways.
Intellectual Stimulations: Promotes intelligence,
rationality, and careful problem solving.
Individualized consideration: Gives personal
attention, treats each employee individually,
coaches, advises.
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