OB+Leadership 3

8/8/2019 OB+Leadership 3

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Leadership


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Meaning of Leadership

Process of influencing people, understanding their needs andaspirations, setting goals for them and facilitating them forgoals achievement.

Leaders create followers by their far sightedness, knowledgeand sensitivity.

eg- Jack Welch of GE. As a property leadership is the set of characteristics attributed

to individuals who are perceived to be leaders. Three major constituents of leadership are People, Influence

and goals. Thus ability to influence people to achieve certaingoals. People component makes leadership a very important

concept in OB. Leadership is an intangible and a charismatic component

which some have and some dont. A good leader is one who can make himself redundant.


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Leadership and Management

Manager

Creating an agenda-Planning and Budgeting.Establishing schedules ofactivities and timetables.

Involving people-Recruitment, selection andstaffing the organizationstructure.

Executing plans- Settingstandards, control andfeedback and monitoring

Outcome- Goalachievement, goodperformance, satisfiedstakeholders.

Leader Establishing direction-

Developing a vision of thefuture and strategiesneeded to achieve thevision.

Aligning people-Communicating theorganizations goals toemployees and identifythem with individual goals.

Motivating and inspiring-Energizing people toovercoming all barriers.

Producing change- Dramaticchanges which change theface of the organization.


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Leadership and Power

Legitimate power- Power granted through the organizational hierarchy. Formal innature. All managers have a legitimate power over their subordinates. But merelylegitimate power does not make a manager a leader.Other word for legitimate poweris authority.

Reward power- Refers to the power to give or withhold rewards. Rewards like

salary hikes, promotions, recognition, praise.Greater the rewards a manager holdsand greater the importance of those for the employees more will be the managersreward power.

Coercive power- The power to force compliance by means of psychological,emotional and physical threat. Coercion is limited to disciplinary actions, fines, layoffs, penalties, written reprimands, firing etc. More the coercive power less theleader respect.

Referent power- Referent power is abstract in nature.It is based on identification,imitation, loyalty and charisma.More the referent power more the status of a leader.

Expert power- Derived from information and expertise. The more important theinformation and lesser the access that people have to it the more the expert power.


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Approaches to leadership

Traits approach (1900-1950s)

1. Based on the assumption that leaders are born not made.

2. Focus was to identify the traits that distinguished leaders from followers.

3. Identification of the characteristics, traits and attributes possessed by leaders.

4. Traits are distinguishing personal characteristics of a person.

5. Motive was that if these set of traits were identified leaders could be identified.

6. But the approach was not successful.

7. Ultimately categorization was done on the basis of physical, personality, ability, task related,social and social backgrounds traits.

8. Further studies were expanded beyond the confinement of traits.


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Approaches to leadership contd..

Behavioral approach

1. Failure of traits studies led to the study of the behavioral approach

2. Objective was to find out that what are the behavioral patterns ofleaders.

3. How is the behavior of leaders different from that of non leaders.4. Since behavior can be incorporated through training but traits

cannot.

5. How does the behavior of leaders result in the accomplishment ofthe organizational goals.

6. Two major factors of behavioral variables were identified. Theywere TASK ORIENTED BEHAVIORand EMPLOYEE ORIENTED

BEHAVIOR.7. Three universities were studying these two variables.

8. University of Michigan, Ohio State University and University ofTexas.


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Approaches to leadership contd..

Situational or Contingency approach

1. This model assumes that appropriate leader behavior varies from

situation to situation.

2. Objective here was to identify the key situational factors whichdetermine appropriate leadership.

3. Avoid situations where you are likely to fail.

4. Match your leadership style with the appropriate situation.

5. Leaders must develop flexibility to change their style according to thesituation.

6. Fred Fiedlers contingency theory, Hersey and Blanchards theory,Leader member exchange theory and Path goal theory.


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University of Michigan Researchers were led by Rensis Likert.

Basically tried to contrast the behaviors of leaders with non leaders by interviewingmanagers on one hand and workers on the other.

Took a one dimensional approach.

Identified two styles ie Job centered behavior and Employee centered behavior.

Classified leaders into effective and not effective.

Job centered leaders pay close attention to the subordinates work, explains thework procedures and are keenly interested in performance so it comes under noteffective leader.

Employee centered leaders develop cohesive work group ensuring that employeesare satisfied with their jobs. Primary concern is welfare of subordinates. Theseleaders tend to be effective.


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University of Michigan

Studied these two types of behavior on the same continuum and devided thecontinuum from system 1 to system 4.

System1- Exploitative-Authoritative (JOB CENTERED)(NOT PARTICIPATIVE)

System2- Benevolent-Authoritative

System3- Consultative

System4- Participative.(EMPLOYEE CENTERED)(HIGHLY PARTICIPATIVE)

Introduced the concept of participative leadership. Extension in the form of

Management by Objectives.


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Ohio State Studies

Ralph Stogdill developed the LBDQ( Leader Behavior Description Questionnaire).

They identified two basic leadership behavioral variables or styles i.e.INITIATING STRUCTURE and CONSIDERATION.

Leaders using Initiating structure fall under the category of Task orientedleaders. They set

clear goals, clear lines of authority and responsibility, time to timemonitoring and regular measurement of performance, corrective steps. explicitschedules of work activities and formal lines of communication.


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Ohio State Studies

Leaders using Consideration fall under the category of people oriented leaders.

Believe in fostering informal relations. Personal touch in their dealings. Showconcern for the subordinates needs and aspirations. Establish warm, friendlyand supportive climate conducive to performance.

Difference between Ohio and Michigan- unlike Michigan, Ohio analyzed leaderbehavior on a two dimensional basis.

A leader could exhibit varying levels of Initiating structure and Consideration atthe same time.

Initially it was presumed that a combination of (HI,HC) yields best results but

later on evidence proved that performance depends on the interaction betweenbehavior and situation.


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University of Texas

Given by Blake and Moutan through the explanation of ManagerialGrid.

Places every manager according to his behavior at some point on thegrid.

Two behavioral variables identified were Concern for Productionand Concern for People.

Concern for Production relates to Initiating structure and Job centeredand Concern for people relates to Consideration and Employeecentered respectively.


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Managerial Grid

(1,1)- IMPOVERISHED MANAGEMENT- Absence of managementphilosophy. Manager exerts little effort towards interpersonal relationsor achievement of organizational objectives. Eg- Kenneth lay ofEnron

(9,9)-TEAM MANAGEMENT- Considered the most effective stylewhere manager and organization members work together toaccomplish the goals. Eg- Herb Kelleher of Southwest Airlines.

(1,9)- COUNTRY CLUB- Where major focus is on building buildingrelationships and primary concern is people.But a low focus on tasksmay give questionable results. Eg- Richard Branson of VirginGroup.

(9,1)- AUTHORITY COMPLIANCE- Where efficiency of operations isthe dominating factor.Not much importance is attached topeople.Focus on efficiency including elimination of people wherevernecessary. Eg- Stan O Neal of Merryl Lynch, Carly Fiorina of HP.


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Approaches to leadership contd...

Situational Approach1. This theory believed that leaders are the product of a given situation.

2. Approach was to identify these situational factors which interact to determineleader behavior.

3. Appropriate leader behavior varies from situation to situation.

4. Fred Fiedlers LPC Theory.

5. Hersey and Blanchard Theory.

6. Robert Houses Path Goal Theory.

7. Leader member exchange theory.


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CONTINGENCY THEORIES

All Consider the Situation

Fiedlers Contingency Model

Cognitive Resource Theory

Hersey and Blanchards Situational LeadershipModel

Path Goal Theory

Assumptions underlying the different models:

Fiedler: Leaders style is fixedOthers: Leaders style can and should be

changed


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Fiedler Model

Leader: Style is Fixed (Task oriented vs. Relationship

oriented)

Considers Situational Favorableness for Leader

Leader-member relations

Task structure

Position power

Key Assumption

Leader must fit situation; options to

accomplish this: Select leader to fit situation

Change situation to fit leader


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Fiedlers Model: The Leader

Least Preferred Co-Worker (LPC)

Questionnaire

The way in which a leader will

evaluate a co-worker that is notliked will indicate whether theleader is task- or relationship-oriented.

Assumption: Leaders Style is Fixed & Can beMeasured by the Least Preferred Co-Worker (LPC)

Questionnaire


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Fiedlers Model: Defining the Situation

Leader-Member Relations

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

Position Power

Influence derived from ones formal structuralposition in the organization; includes power tohire, fire, discipline, promote, and give salary

increases.

Task Structure

The degree to which the job assignments areprocedurized.


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Findings of the Fiedler ModelFindings of the Fiedler Model

Category

Leader-MemberRelations

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

Performance

Relationship

-Oriented

Task-Oriented

Favorable Moderate Unfavorable


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Hersey and Blanchards situational theory

Given by Paul Hersey and Kenneth Blanchard.

Introduced a new dimension of measuring leader effectiveness iefollowers readiness.

Essence was that leadership style gets influenced by the

characteristics of the group to be led. Variables identified were Task behavior and Relationship behavior.

Regardless of what leader does effectiveness depends on action of thefollowers.

Follower readiness refers to the behavior of followers, their attitudetowards work and willingness to take responsibility.

Identified highly directive to a Laissez- faire approach.

Most effective leader behavior depends on the ability and willingnesslevel of the followers to assume responsibility.

R1 fits into S1, R2 into S2, R3 into S3 and R4 into S4.


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Path goal theory

Given by Robert House.

Builds from the Expectancy theory of motivation.

Leaders to provide information, support and resources to helpfollowers achieve the goals.

Help clarify the path and to make valued and desired rewards

available at the workplace. Identified two variables- Leader Behavior and Situational factors.

Leader Behavior- Directive, Supportive, Participative andAchievement Oriented.

Situational factors involve: Characteristics of subordinates andEnvironmental characteristics.

Role of leader is to ensure that path to goals is clearly understood.

Rewards play a very important role.


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Path-Goal Model

Two classes of contingency variables:

Environmental are outside of employee control

Subordinate factors are internal to employees

2009 Prentice-Hall Inc. All rights reserved. 12-25


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Leader Member Exchange Theory

LMX Premise:

Because of time pressures, leaders form a specialrelationship with a small group of followers: the in-group

This in-group is trusted and gets more time and attentionfrom the leader (more exchanges)

All other followers are in the out-group and get less ofthe leaders attention and tend to have formalrelationships with the leader (fewer exchanges)

Leaders pick group members early in the relationship

In group members have higher level of satisfaction andperformance.

Each leader follower relationship is referred to as thevertical dyad.


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Substitutes for leadership

Leadership has been a concept of a number of researches andlot of studies.

Concept of substitutes was introduced because the abovetheories did not account for all those situations whereleadership becomes neutral.

Where the task is structured, where reward structure is predetermined and rigid, where lines of communications areabsolutely formal, where the followers are able andcompetent.


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Charismatic Leadership

Assumes charisma as an individual trait of a leader.

A form of aura and attraction which inspires support andacceptance.

All else being equal someone with more of charismaticpersonality is likely to exert more influence on followers.

Proposed by Robert House in 1977.

Charismatic leaders have lot of self confidence, firm convictionin their beliefs and ideals and the strong influence to align thefollowers goals with organizational goals.


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Transformational Leadership

Leadership that goes beyond ordinary expectations bytransmitting a sense of mission, stimulating learning experiencesand inspiring new ways of thinking.

Goes beyond the exchange inducements of desired performance.

Increasingly becoming important in todays turbulent businessenvironment.

Focused on bringing about transformational changes inorganization by building vision, securing commitment andempowering people.

Eg- Carly Fiorina of HP. Restructured the entire firm.

OB+Leadership 3

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