LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing...

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LEADERSHIP THEORIES LEADERSHIP THEORIES

Transcript of LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing...

Page 1: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

LEADERSHIP THEORIESLEADERSHIP THEORIESLEADERSHIP THEORIESLEADERSHIP THEORIES

Page 2: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

A Leadership Story:A Leadership Story:

““Management is doing things right, Management is doing things right,

leadership is doing the right things”leadership is doing the right things”

(Warren Bennis and Peter Drucker)

Page 3: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

What Is Leadership?What Is Leadership?

Leadership

The ability to influence a group toward the achievement of goals.

Management

Use of authority inherent in designated formal rank to obtain compliance from organizational members.

Page 4: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

DefinitionsDefinitionsDefinitionsDefinitions

Leadership has been described as the “process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task”.

Leadership is the art of getting someone else to do something you want done because he wants to do it."– Dwight D. Eisenhower

while leaders set the direction, they must also use management skills to guide their team to the right destination in a smooth and efficient way.

Page 5: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

What is leadership, and what is the difference between leadership and management?

What is leadership, and what is the difference between leadership and management?

In a nutshell, the difference between leadership and management is:– Leadership is setting a new direction or

vision for a group that they follow. • ex: a leader is the spearhead for that new direction

– Management controls or directs people/resources in a group according to principles or values that have already been established.

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Leadership without management

...sets a direction or vision that others follow, without considering too much how the new direction is going to be achieved. Other people then have to work hard in the trail that is left behind, picking up the pieces and making it work. – Ex: in Lord of the Rings,

at the council of Elrond, Frodo Baggins rescues the council from conflict by taking responsibility for the quest of destroying the ring - but most of the management of the group comes from others.

Management without leadership

...controls resources to maintain the status quo or ensure things happen according to already-established plans. – Ex: a referee manages a

sports game, but does not usually provide "leadership" because there is no new change, no new direction - the referee is controlling resources to ensure that the laws of the game are followed and status quo is maintained.

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LEADERSHIP THEORIES

Trait Theories

Behavioral Theories

•Ohio State Studies•Uni. Of Michigan State

Contingency Theories

•Fiedler Model•Hersey and Blanchard’s

Situational TheoryPath Goal Theory

New Theories

•Leader Exchange Theory•Vroom and Yetton’s

Leader Participation Model

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Trait TheoriesTrait TheoriesTrait TheoriesTrait Theories

Leadership Traits:Leadership Traits:

• Ambition and energy

• The desire to lead

• Honest and integrity

• Self-confidence

• Intelligence

• High self-monitoring

• Job-relevant knowledge

Leadership Traits:Leadership Traits:

• Ambition and energy

• The desire to lead

• Honest and integrity

• Self-confidence

• Intelligence

• High self-monitoring

• Job-relevant knowledge

Traits Theories of Traits Theories of LeadershipLeadership

Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from non-leaders.

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Trait TheoriesTrait Theories

Limitations:

• No universal traits found that predict leadership in all situations.

• Traits predict behavior better in “weak” than “strong” situations.

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

• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

Limitations:

• No universal traits found that predict leadership in all situations.

• Traits predict behavior better in “weak” than “strong” situations.

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

• Better predictor of the appearance of leadership than distinguishing effective and ineffective leaders.

Page 10: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Behavioral TheoriesBehavioral TheoriesBehavioral TheoriesBehavioral Theories

• Trait theory:Trait theory:Leaders are born, not made.Leaders are born, not made.

• Behavioral theory:Behavioral theory:Leadership traits can be taught.Leadership traits can be taught.

• Trait theory:Trait theory:Leaders are born, not made.Leaders are born, not made.

• Behavioral theory:Behavioral theory:Leadership traits can be taught.Leadership traits can be taught.

Behavioral Theories of Leadership

Theories proposing that specific behaviors differentiate leaders from non-leaders.

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Ohio State StudiesOhio State Studies

A famous series of studies on leadership were done in Ohio State University, starting in the 1950s. They found two critical characteristics either of which could be high or low and were independent of one another.

The research was base on questionnaires to leaders and subordinates. These are known as the Leader Behavior Description Questionnaire (LDBQ), which was designed to discover how leaders carry out their activities, and the Supervisor Behavior Description Questionnaire (SDBQ). By 1962, the LDBQ was on version XII.

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Ohio State StudiesOhio State Studies

Initiating Structure

The extent to which a leader is likely to define and structure his or her role and those of sub-ordinates in the search for goal attainment.

Consideration

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.

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Ohio State StudiesOhio State Studies

The first element was tagged Initiating Structure and deals with Task Behavior,  focusing on production issues.  – Example:  measuring production output. 

The second element, Consideration for Workers, focused on the human side of the business and was also called Relationship Behavior.  – Example:  orientation of new employees

  In this way the Ohio State Studies brought together the seemingly

juxtaposed Scientific Management and Human Relations Movement.

An important finding of the Ohio State studies was that these two dimensions are independent.  – This means that consideration for workers and

initiating structure exist simultaneously and in different amounts.    A matrix was created that showed the various combinations and quantities of the elements.

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Ohio State StudiesOhio State Studies

Consideration is more strongly related to the individual.– The followers of leaders who were high in

consideration were more satisfied with their jobs and more motivated and also had more respects for their leaders.

Initiating structure was more strongly related to higher level of group and organization productivity and more positive performance evaluations.

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University of Michigan StudiesUniversity of Michigan Studies

Employee-Oriented Leader

Emphasizing interpersonal relations; taking a personal interest in the needs of employees and accepting individual differences among members.Production-Oriented Leader

One who emphasizes technical or task aspects of the job.

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University of Michigan StudiesUniversity of Michigan Studies

A series of studies on leadership were done in Michigan University, starting in the 1950s. Under the general direction of Rensis Likert, the focus of the Michigan studies was to determine the principles and methods of leadership that led to productivity and job satisfaction. Two types of leadership behaviors were identified: – employee orientation (stress the

human-relations aspect, employees are viewed as human beings with personal needs)

– production orientation (stress on the technical and production aspects of the job, employees viewed as the means of getting the work done).

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University of Michigan StudiesUniversity of Michigan Studies

Leaders with an employee orientation showed genuine concern for interpersonal relations. Those with a production orientation focused on the task or technical aspects of the job.

The conclusion of the Michigan studies was that an employee orientation and general instead of close supervision yielded better results. Likert eventually developed four "systems" of management based on these studies; he advocated System 4 (the participative-group system, which was the most participatory set of leader behaviors) as resulting in the most positive outcomes.

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The Managerial

Grid(Blake and Mouton)

The Managerial

Grid(Blake and Mouton)

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Scandinavian StudiesScandinavian Studies

Development-Oriented Leader

One who values experimentation, seeking new ideas, and generating and implementing change.

Researchers in Finland and Sweden question whether there are only two dimensions (production-orientation and employee-orientation) that capture the essence of leadership behavior. Their premise is that in a changing world, effective leaders would exhibit development-oriented behavior.

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Contingency TheoriesContingency Theories

The leader's ability to lead is contingent upon various situational factors, including the leader's preferred style, the capabilities and behaviors of followers and also various other situational factors.

Contingency theories contend that there is no one best way of leading and that a leadership style that is effective in some situations may not be successful in others.

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Contingency TheoriesContingency Theories

An effect of this is that leaders who are very effective at one place and time may become unsuccessful either when transplanted to another situation or when the factors around them change.

This helps to explain how some leaders who seem for a while to have the 'Midas touch' suddenly appear to go off the boil and make very unsuccessful decisions.

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Contingency TheoriesContingency Theories

Contingency theory is similar to situational theory in that there is an assumption of no simple one right way. The main difference is that situational theory tends to focus more on the behaviors that the leader should adopt, given situational factors (often about follower behavior), whereas contingency theory takes a broader view that includes contingent factors about leader capability and other variables within the situation.

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Fiedler’s Contingency ModelFiedler’s Contingency Model

Proposed by the Austrian psychologist Fred Edward Fiedler.

The contingency model emphasizes the importance of both the leader's personality and the situation in which that leader operates. – A leader is the individual who is given the task

of directing and coordinating task-relevant activities, or the one who carries the responsibility for performing these functions when there is no appointed leader.

Fiedler relates the effectiveness of the leader to aspects of the group situation. Fred Fiedler's Contingency Model also predicts that the effectiveness of the leader will depend on both the characteristics of the leader and the favorableness of the situation.

Page 24: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Contingency TheoriesContingency Theories

Fiedler’s Contingency Model

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

Least Preferred Co-Worker (LPC) Questionnaire

An instrument that purports to measure whether a person is task- or relationship-oriented.

Page 25: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

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

Leader-Member Relations

The degree of confidence, trust, and respect subordinates have in their leader.

Position Power

Influence derived from one’s formal structural position in the organization; includes power to hire, fire, discipline, promote, and give salary increases.

Task Structure

The degree to which the job assignments are procedurized.

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Findings from Fiedler ModelFindings from Fiedler Model

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Cognitive Resource TheoryCognitive Resource Theory

Research Support:

• Less intelligent individuals perform better in leadership roles under high stress than do more intelligent individuals.

• Less experienced people perform better in leadership roles under low stress than do more experienced people.

Research Support:

• Less intelligent individuals perform better in leadership roles under high stress than do more intelligent individuals.

• Less experienced people perform better in leadership roles under low stress than do more experienced people.

Cognitive Resource Theory

A theory of leadership that states that stress can unfavorably affect a situation and that intelligence and experience can lessen the influence of stress on the leader.

Page 28: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

In contrast to Fiedler’s contingency leadership model and its underlying assumption that leadership style is hard to change, the Hersey-Blanchard situational leadership model suggests that successful leaders do adjust their styles.

Page 29: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

For Hersey and Blanchard the key issue in making these adjustments is follower maturity, as indicated by their readiness to perform in a given situation.

“Readiness,” in this sense, is largely based on two major factors – follower ability and follower confidence.

Hersey and Blanchard believe that leaders should be flexible and adjust their styles as followers and situations change over time.

Page 30: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

Situational Leadership Theory (SLT)

A contingency theory that focuses on followers’ readiness.

Leader: decreasing need for support and supervisionLeader: decreasing need for support and supervision

Follower readiness: ability and willingness

Follower readiness: ability and willingness

Unable andUnwilling

Unable butWilling

Able andWilling

Directive High Task and Relationship Orientations

Supportive Participative

Able andUnwilling

Monitoring

Page 31: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leadership Styles and Follower Readiness(Hersey and Blanchard)

Leadership Styles and Follower Readiness(Hersey and Blanchard)

WillingUnwilling

Able

Unable DirectiveDirective

High TaskHigh Taskand and

Relationship Relationship OrientationsOrientations

Supportive Supportive Participative Participative MonitoringMonitoring

Follower Readiness

LeadershipLeadershipStylesStyles

Page 32: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leadership Styles and Follower Readiness(Hersey and Blanchard)

Leadership Styles and Follower Readiness(Hersey and Blanchard)

Participating Style— Emphasizing shared ideas and

participative decisions on task directions; this is a low-task, high-relationship style.

Selling Style— Explaining task directions in a

supportive and persuasive way; this is a high-task, high-relationship style.

Delegating Style— Allowing the group to take

responsibility for task decisions; this is a low-task, low-relationship style.

Telling Style— Giving specific task directions

and closely supervising work; this is a high-task, low-relationship style.

Page 33: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

The participating styleparticipating style is recommended for low-to-moderate readiness situations. Here, followers are capable but also unwilling or insecure about the tasks. As you might expect, this participation style with its emphasis on relationships is supposed to help followers share ideas and thus draw forth understanding and task confidence.

Page 34: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

The selling styleselling style is recommended for moderate to high-readiness situations. Here, followers lack capability but are willing or confident about the task. In this case, the selling style and its emphasis on task guidance is designed to facilitate performance through persuasive explanation.

Page 35: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

When follower maturity is high, the situational leadership model calls for a delegating styledelegating style which might be described as offering minimal leadership intervention. The style is one of turning over decisions to followers who have high task readiness based on abilities, willingness and confidence about task accomplishment.

Page 36: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

When follower maturity is low, by contrast, the model calls for the telling styletelling style with its emphasis on task directed behaviors. The telling style works best in this situation of low readiness, by giving instructions and bringing structure to a situation where followers lack capability and are unwilling or insecure about their tasks.

Page 37: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Hersey and Blanchard’s Situational Leadership Theory

Hersey and Blanchard’s Situational Leadership Theory

Managers using the situational leadership model must be able to implement the alternative leadership styles as needed. To do this, they have to understand the maturity of followers in terms of readiness for task performance and then use the style that best fits. In terms of the appropriate style-situation match ups, the situational leadership model suggests the following.

Page 38: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader–Member Exchange TheoryLeader–Member Exchange Theory

Leader-Member Exchange (LMX) Theory

Leaders create in-groups and out-groups, and subordinates with in-group status will have higher performance ratings, less turnover, and greater job satisfaction.

Page 39: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader–Member Exchange TheoryLeader–Member Exchange Theory

One of the things you may have noticed in your work and study groups is the tendencies of leaders to develop “special” relationships with some team members.

This tendency is central to leader-member exchange theory, or LMX theory as it is often called.

The theory basically recognizes that in most, or at least many, leadership situations not everyone is treated the same by the leader.

Instead, people fall into “in” groups and “out” groups in relationships with their leaders. Obviously, the group you are in can have quite a significant influence on your experience with the leader.

Page 40: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader–Member Exchange TheoryLeader–Member Exchange Theory

The notion underlying leader-member exchange theory is that as a leader and follower interact over time, their exchanges end up defining the follower’s role.

Whether due to personality similarities or differences, time pressures and interaction opportunities, or the follower’s competencies and accomplishments, this role ends up being defined into a high-exchange or low-exchange relationship with the leader.

You might think of the LMX concept in respect to a leader being more willing to find time to spend relating to and interacting with some followers than others. Those that do get the leader’s attention end up forming a special in-group relationship with him or her.

Page 41: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader–Member Exchange TheoryLeader–Member Exchange Theory

One of the implications of the leader-member exchange theory is that the nature of the exchange is determined by the leader based on some presumed characteristics of the follower. A high LMX relationship is usually based on perceived favorable personality, compatibility, and competency; a low LMX relationship is based on just the opposite set of views.

For the follower in a high LMX relationship, being part of the leader’s inner circle or in-group can have positive implications in terms of getting rewards, access to information, and other special treatments. Being in the out-group can have negative consequences on the same terms. For the leader, it is nice to be able to call on and depend upon the loyal support of those in the in-group. But the leader may also be missing out on lost opportunities of working more intensely with out-group members.

Page 42: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader-Member Exchange TheoryLeader-Member Exchange Theory

Page 43: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Path-Goal TheoryPath-Goal Theory

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

Page 44: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

The Path-Goal TheoryThe Path-Goal Theory

Page 45: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader-Participation ModelLeader-Participation Model

Leader-Participation Model (Vroom and Yetton)

A leadership theory that provides a set of rules to determine the form and amount of participative decision making in different situations.

Page 46: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader-Participation ModelLeader-Participation Model

Leadership is all about making decisions, conceiving vision, setting goals, laying paths to reach the goal, and making all efforts with followers in achieving it.

Effective Leadership requires taking situation based decisions. An individual will be accepted as Leader when his ideas, suggestions and advise are more appropriate to the situation. Decision taken under particular situation may not hold good for all situations & it may give different results in different situations.

Page 47: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader-Participation ModelLeader-Participation Model

– How will you get expected output from your decision on particular thing ?

– What factors that affect making a good decision? – In what situations I need to get consultation

from others or to make own decision? – How do I get commitment from my followers on

particular decision? Vroom-Yetton-Jago Normative Decision Model help us to

answer above questions.

Page 48: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader-Participation ModelLeader-Participation Model

This model identifies five different styles (ranging from autocratic to consultative to group-based decisions) on the situation & level of involvement. They are:

– Autocratic Type 1 (AI) – Autocratic Type 2 (AII) – Consultative Type 1 (CI) – Consultative Type 2 (CII) – Group-based Type 2(GII)

Page 49: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader-Participation ModelLeader-Participation Model

Autocratic Type 1 (AI) – Leader makes own decision using information that is readily available to you at the time. This type is completely autocratic.

Autocratic Type 2 (AII) – Leader collects required information from followers, then makes decision alone. Problem or decision may or may not be informed to followers. Here, followers involvement is just providing information.

Consultative Type 1 (CI) – Leader shares problem to relevant followers individually and seeks their ideas & suggestions and makes decision alone. Here followers’ do not meet each other & leader’s decision may or may not has followers influence. So, here followers involvement is at the level of providing alternatives individually.

Page 50: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Leader-Participation ModelLeader-Participation Model

Consultative Type 2 (CII) – Leader shares problem to relevant followers as a group and seeks their ideas & suggestions and makes decision alone. Here followers’ meet each other and through discussions they understand other alternatives. But leader’s decision may or may not has followers influence. So, here followers involvement is at the level of helping as a group in decision-making.

Group-based Type 2(GII) – Leader discuss problem & situation with followers as a group and seeks their ideas & suggestions through brainstorming. Leader accepts any decision & do not try to force his idea. Decision accepted by the group is the final one.

Page 51: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Contingency Variables in the Revised Leader-Participation Model

Contingency Variables in the Revised Leader-Participation Model

1. Importance of the decision

2. Importance of obtaining follower commitment to the decision

3. Whether the leader has sufficient information to make a good decision

4. How well structured the problem is

5. Whether an autocratic decision would receive follower commitment

6. Whether followers “buy into” the organization’s goals

7. Whether there is likely to be conflict among followers over solution alternatives

8. Whether followers have the necessary information to make a good decision

9. Time constraints on the leader that may limit follower involvement

10. Whether costs to bring geographically dispersed members together is justified

11. Importance to the leader of minimizing the time it takes to make the decision

12. Importance of using participation as a tool for developing follower decision skills

Page 52: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

PART IIPART II

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LeadershipLeadership

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Types of Leadership StyleTypes of Leadership Style

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Autocratic LeadersAutocratic Leaders– Leader makes

decisions without reference to anyone else

– High degree of dependency on the leader

– Can create de-motivation and alienation of staff

– May be valuable in some types of business where decisions need to be made quickly and decisively

In fact, it might be perceived that there are not a lot of good things to say about autocratic leaders.  This style of leadership is often very stressful on fellow employees, and makes the work environment itself not a fun place to be.  But like all leadership styles, there is a time, and a situation, where the style is appropriate.

Page 56: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Autocratic LeadersAutocratic Leaders Cons of Autocratic Leaders The communication style of an autocratic leader is

usually described as one way.  They tell you exactly what they want done.  The feedback you would receive from this type of leader would generally be unplanned.  They would simply tell you when you've made a mistake.

The decision-making process is usually unilateral, and they accomplish goals by directing people.  Now that might not sound like the type of leader you'd follow, but there are actually situations when this style is very effective.

Page 57: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Autocratic LeadersAutocratic Leaders Pros of Autocratic Leaders In the workplace, some operating conditions may call

for urgent action.  In these cases, an autocratic style of leadership may be the best style to adopt.  Surprisingly, many individuals have already worked for an autocratic leader, and therefore have little trouble adapting to that style.

In fact, in times of stress or emergency some subordinates may actually prefer an autocratic style.  They prefer to be told exactly what to do.  So to summarize - the autocratic leadership style is very effective when critical business decisions or actions are needed, but very stressful on followers or coworkers when the added pressure is no longer necessary.

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Autocratic LeadersAutocratic Leaders Autocratic Leaders in the Workplace

On the down side, several studies suggest that organizations with many autocratic leaders have higher turnover and absenteeism than other organizations.  With today's emphasis on joint decision making and empowerment, employees just entering the workforce will be highly resistant to this management style.

So the autocratic leadership style should not be used when you want to get your employees engaged in the decision-making process.  Autocratic leaders are also not effective in situations where your employees might become resentful or fearful.

Finally, if your company is struggling with low morale, or is interested in building employee relationships, then an autocratic leadership style will only make the work environment worse.

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ExamplesExamples Martha Stewart

Martha Stewart built her empire with personal attention to every detail.  Whether you liked her or not, she was meticulous and demanding.  She was also very successful in her endeavors, and in using her autocratic management style.

Many industry analysts might argue that it was Martha's autocratically demanding style that allowed her to flourish in a competitive environment such as the entertainment industry.  Others might argue that even more success might have awaited Martha Stewart if she had not relied so heavily on the autocratic style.

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ExamplesExamples

Howell Raines Newspapers and old industries often flourished under

autocratic leaders that stood watch over factory workers to make sure their factories kept humming.  The point here is that it might not be easy to work under these circumstances, but the autocratic leadership style is certainly efficient.

Howell Raines was the Executive Editor of the New York Times from 2001 until 2003.  Widely cited as a "hard-charging" Executive Editor, Raines was known for his policy of "flooding the zone"- using all of the New York Times' resources to cover what he deemed were important stories.

Howell Raines is a classic example of how an autocratic style can be used successfully in a highly-demanding industry.  Think about the daily pressures associated with publishing one of the highest quality newspapers in the world.

Page 61: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Democratic LeadershipDemocratic Leadership

Encourages decision making from different perspectives – leadership may be emphasised throughout the organisation.

– Consultative: process of consultation before decisions are taken

– Persuasive: Leader takes decision and seeks to persuade others that the decision is correct

• May help motivation and involvement• Workers feel ownership of the firm and its ideas• Improves the sharing of ideas and experiences within the business• Can delay decision making

Page 62: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Democratic LeadershipDemocratic Leadership

The democratic leadership style is a very open and collegial style of running a team. Ideas move freely amongst the group and are discussed openly. Everyone is given a seat at the table, and discussion is relatively free-flowing.

This style is needed in dynamic and rapidly changing environments where very little can be taken as a constant. In these fast moving organizations, every option for improvement has to be considered to keep the group from falling out of date.

The democratic leadership style means facilitating the conversation, encouraging people to share their ideas, and then synthesizing all the available information into the best possible decision. The democratic leader must also be able to communicate that decision back to the group to bring unity the plan is chosen.

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Democratic LeadershipDemocratic Leadership

When is it Used?

When situations change frequently, democratic leadership offers a great deal of flexibility to adapt to better ways of doing things. Unfortunately, it is also somewhat slow to make a decision in this structure, so while it may embrace newer and better methods; it might not do so very quickly.

Democratic leadership style can bring the best out of an experienced and professional team. It capitalizes on their skills and talents by letting them share their views, rather than simply expecting them to conform.

If a decision is very complex and broad, it is important to have the different areas of expertise represented and contributing input – this is where democratic leader shines.

Page 64: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Democratic LeadershipDemocratic Leadership

Good fits for Democratic Leadership:

Creative groups (advertising, design): ideas need to flow in creative environments to find create new concepts and designs.

Consulting: when paid to explore problems and find solutions, your role will be to explore the possibilities in depth, and that means there has to be a great deal of exploration and open discussion.

Much of the service industry: new ideas allow for more flexibility to changing customer demands.

Education: few places need to be open to different ideas than education, both by educators and their students.

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Democratic LeadershipDemocratic Leadership

Democratic Leadership at Work

Daniel Goleman also thought there were enough distinguishing characteristics found in democratic leadership to include it as one of his six styles.  In his model, the primary behavior of these leaders was to forge consensus through collaboration.  The key to this style is communication - seeking the opinions of others, and letting your opinion be known.

When the workplace is ready for democratic leaders, the style produces a work environment that employees can feel good about.  Workers feel that their opinion counts, and because of that feeling they are more committed to achieving the goals and objectives of the organization.

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Democratic LeadershipDemocratic Leadership

Democratic Leadership at Work

But Goleman and others also recognized that not every style is effective in every work environment - that's what situational leadership is all about; finding the right style to apply to the situation at hand.  So the logical question is:  When is the democratic leadership style effective at work? 

Page 67: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Democratic LeadershipDemocratic Leadership

Pros of the Democratic Leadership Style

Since employees or followers have an equal say in the decision-making process, they are more committed to the desired outcome.  The collaborative environment created by this style often results in more thorough solutions to problems.

This creates an ideal environment for collaborative problem-solving in addition to decision-making.  However, this democratic process has its drawbacks.

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Democratic LeadershipDemocratic Leadership

Cons of the Democratic Leadership Style

The democratic leader depends on the knowledge of his followers or employees.  If the workforce is inexperienced, this style is not very effective.  You simply need a fair amount of experience to make good decisions.

The other drawback of the democratic style is that the collaborative effort takes time.  When you ask people for their opinions, it takes time for them to explain what they think and for others to understand what they are saying.  If the business need is urgent, then the democratic leader needs to switch styles.

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Democratic LeadershipDemocratic Leadership

Cons of the Democratic Leadership Style

To summarize, the pros and cons of this style are pretty much in alignment - strength also becomes weakness.  You get more input, but it takes time.  People can share their knowledge, but they have to understand the process first.  The democratic leadership style is most effective when you have a workplace that has experienced.

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Democratic LeadershipDemocratic Leadership

Examples of Democratic Leaders

We're going to finish up by giving you an example of a democratic leader at work.  If your thinking President John F. Kennedy is a famous democratic leader, you'd be partially correct.  You're right in saying President Kennedy was a Democrat and certainly he will be remembered as a great leader.  But President Kennedy was actually a very good example of a charismatic leader - not a democratic one.

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Democratic LeadershipDemocratic Leadership

Examples of Democratic Leaders

Interestingly, one of the best examples of a democratic leader is also a political figure - Dwight D. Eisenhower (a Republican no less!).  As a military leader, Eisenhower was faced with the difficult task of getting the Alliance forces to agree on a common strategy.  Eisenhower labored hard to make sure everyone worked together to come to a common understanding.  This was one of his greatest achievements.  It was here that the democratic leadership style, and collaborative efforts, of Eisenhower shone through.  The subsequent victory of the Alliance forces back up the correctness of the approach in that particular situation.

Page 72: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Laissez-Faire LeadershipLaissez-Faire Leadership ‘Let it be’ – the leadership responsibilities are shared by all:

– Can be very useful in businesses where creative ideas are important

– Can be highly motivational, as people have control over their working life

– Can make coordination and decision making time-consuming and lacking in overall direction

– Relies on good team work– Relies on good interpersonal relations

Laissez-faire leadership is characterized by:– Very little guidance from leaders – Complete freedom for followers to make decisions – Leaders provide the tools and resources needed – Group members are expected to solve problems on their own

Page 73: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Laissez-Faire LeadershipLaissez-Faire Leadership

Benefits of Laissez-Faire Leadership

Laissez-faire leadership can be effective in situations where group members are highly skilled, motivated and capable of working on their own. While the conventional term for this style is 'laissez-faire' and implies a completely hands-off approach, many leaders still remain open and available to group members for consultation and feedback.

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Laissez-Faire LeadershipLaissez-Faire Leadership

Downsides of Laissez-Faire Leadership

Laissez-faire leadership is not ideal in situations where group members lack the knowledge or experience they need to complete tasks and make decisions. Some people are not good at setting their own deadlines, managing their own projects and solving problems on their own. In such situations, projects can go off-track and deadlines can be missed when team members do not get enough guidance or feedback from leaders.

Page 75: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Paternalistic LeadershipPaternalistic Leadership

Leader acts as a ‘father figure’– Paternalistic leader makes decision but may consult– Believes in the need to support staff

– Leadership in Asian countries such as e.g. China is oftentimes described as paternalistic leadership. Paternalistic Leadership is a native Chinese leadership style, which is deeply rooted in China's patriarchal tradition and in Confucianism. • According to theory, paternalistic leadership is composed of three

main elements: autocratic leadership, benevolent leadership and moral leadership.

Page 76: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Paternalistic LeadershipPaternalistic Leadership

Paternalistic managers give more attention to the social needs and views of their workers. Managers are interested in how happy workers feel and in many ways they act as a father figure (pater means father in Latin).

They consult employees over issues and listen to their feedback or opinions. The manager will however make the actual decisions (in the best interests of the workers) as they believe the staff still need direction and in this way it is still somewhat of an autocratic approach. The style is closely linked with Mayo’s Human Relation view of motivation and also the social needs of Maslow.

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Change LeadershipChange Leadership

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Change LeadershipChange Leadership

The most challenging aspect of business is leading and managing change

The business environment is subject to fast-paced economic and social change

Modern business must adapt and be flexible to survive

Problems in leading change stem mainly from human resource management

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Effective Leadership and Organizational Change

Effective Leadership and Organizational Change

Effective leadership in the change management process is particularly important, because of all the factors involved in organizational change.

According to McShane and VonGlinow (2004), a leader must be able to “influence, motivate and enable others to contribute toward the effectiveness and success of the organization.” Stabilizing the organization after the change process begins is critical to continued success.

Page 80: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Effective Leadership and Organizational Change

Effective Leadership and Organizational Change

McShane and VonGlinow (2004) outline seven competencies to effective leadership.

Leaders with this set of competencies and skills should be effective in their leadership ability regardless of the leadership style that they favor.

Those competencies include:• Emotional intelligence• Integrity• Drive• Leadership motivation• Self-confidence• Intelligence• Knowledge of the business

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Selecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership Style Selecting the right leadership style to influence the effectiveness of

change is important if large organizational change is to be successful.

The right leadership style might change as the situation changes within an organization.

Different leadership styles to consider include:– Visionary/inspirational leaders– Commanding leaders– Situational leaders– People-oriented leaders– Task-oriented leaders– Strategic leaders– Logical leaders– Supportive leaders

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Selecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership Style

A commanding leadership A commanding leadership stylestyle

It gives clear direction and is useful in cases of emergency.

The commanding style focuses on performance and has a short-term goal orientation.

Commanders are highly productive and results oriented.

They can be very effective when goal achievement is the primary focus.

They learn better by their own successes and failures than by input from others.

Logical Leadership styleLogical Leadership style

The logical style pertains to leaders who insist on covering all alternatives.

They have long-term goals, use analysis and questioning, and learn by reasoning things through.

They are particularly effective when the goal is strategy development.

Page 83: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Selecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership Style A visionary/ inspirational leadership style

It should be used when a leader is trying to move people towards a shared dream. They inspire others with insights and shared authority.

The inspirational style is characteristic of those who are able to develop meaningful visions of the future by focusing on radically new ideas; they learn by experimentation.

They show a high level of concern for assuring cohesiveness of members of the organization and encouraging others to follow the vision.

They are inquisitive, curious, and satisfied by finding radically new solutions.

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Selecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership Style

A coaching leadership styleA coaching leadership style It might be used to effectively connect what a person

wants with organizational goals.

The situational leadership styleThe situational leadership style This type leaders change their style of leadership

based on how ready their followers seems to be. Factors that affect situational decisions include

motivation and capability of followers.

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Selecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership Style

People-oriented leaders

When drastic organizational changes are involved, having leaders who are people-oriented as opposed to task-oriented will be better able to anticipate the needs of the employees as they motivate and enable them to change.

With people-oriented leadership, leaders are totally focused on organizing, supporting, and developing the people in their teams. It's a participative style, and it tends to encourage good teamwork and creative collaboration.

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Selecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership Style

Supportive leaders Those leaders who are more concerned with consensus

score high in the supportive dimension. They emphasize openness and operate more as facilitators than directors.

They learn by observing outcomes and how others react to their decisions.

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Selecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership Style

Strategic leadersStrategic leaders Recognize that most work now involves integration rather

than fractionation of diverse interests and skills. Multiple styles of leadership are needed to effectively

implement most forms of organizational change. Strategic leaders accept that they cannot have all the answers and they take steps to obtain information that effectively guides their choices.

These leaders rely heavily on communication and persuasion with employees to advance their enlightened strategies.

When compared to popular models of leaders of the past, strategic leaders are far more inclined to be information seekers than information distributors.

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Selecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership StyleSelecting the Right Leadership Style

Task-oriented leadersTask-oriented leaders Highly task-oriented leaders focus only on getting the

job done, and they can be quite autocratic. They actively define the work and the roles required, put structures in place, plan, organize, and monitor. However, because task-oriented leaders don't tend to think much about the well-being of their teams, this approach can suffer many of the flaws of autocratic leadership, with difficulties in motivating and retaining staff.

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Theories of LeadershipTheories of Leadership

Page 90: LEADERSHIP THEORIES. A Leadership Story: “Management is doing things right, leadership is doing the right things” (Warren Bennis and Peter Drucker)

Theories of LeadershipTheories of Leadership

May depend on:– Type of staff– History of the business– Culture of the business– Quality of the relationships– Nature of the changes needed– Accepted norms within the institution

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Factors Affecting StyleFactors Affecting Style

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Factors Affecting StyleFactors Affecting Style

Leadership style may be dependent on various factors:– Risk - decision making and change initiatives

based on degree of risk involved– Type of business – creative business or supply

driven?– How important change is – change for change’s

sake?– Organisational culture – may be long embedded

and difficult to change– Nature of the task – needing cooperation?

Direction? Structure?