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  1. 1. Leadership Presented by: Ashutosh Verma
  2. 2. “A leader lives in each of us”
  3. 3. Who is a Leader? A Leader is someone in authority to lead others to accomplish a goal(s). A leader needs to be able to motivate others to accomplish a goal(s) while at the same time encourage others to work toward their own professional goals.
  4. 4. Leadership Defined “Directing the activities of a group toward a shared goal" “The process of influencing the activities of an organized group toward goal achievement" “The process of making sense of what people are doing together so that people will understand and be committed" “To influence, motivate, and enable others to contribute toward the effectiveness and success of the organization"
  5. 5. Leadership Vs. Management “Management is about coping with complexity. . . . Without good management, complex enterprises tend to become chaotic in ways that threaten their very existence. Good management brings a degree of order and consistency to key dimensions like the quality and profitability of products.” “Leadership, by contrast, is about coping with change. . . . More change always demands more leadership
  6. 6. Foundations For Effective Leadership Leadership is one of the four functions of management.
  7. 7. Foundations For Effective Leadership  Power  the ability to get others to do what you want them to do  Reward Power  The capacity to offer something of value as a means of influencing other people  Coercive Power  The capacity to punish or withhold positive outcomes as a means of influencing other people.  Legitimate Power  The capacity to influence other people by virtue of formal authority or the rights of office.  Expert Power  The capacity to influence other people by virtue of specialized knowledge.  Referent Power  The capacity to influence other people because of their desire to identify personally with you
  8. 8. Foundations For Effective Leadership Managerial Power = Position Power + Personal Power  Power of the POSITION:  Based on things managers can offer to others.  Rewards: "If you do what I ask, I'll give you a reward."  Coercion: "If you don't do what I ask, I'll punish you."  Legitimacy: "Because I am the boss; you must do as I ask."  Power of the PERSON:  Based on how managers are viewed by others.  Expertise—as a source of special knowledge and  information.  Reference—as a person with whom others like  to identify.
  9. 9. Leadership Styles  Leadership Style  The recurring pattern of behaviors exhibited by a leader  Autocratic Style  Acts in unilateral command and control fashion  Paternalistic Style  Consults people over tasks  Democratic Style  Encourages participation with an emphasis on both task accomplishments and development of people  Laissez-faire Style  Is low on both tasks and people
  10. 10. Leadership Styles Autocratic  Authoritarian OR Leader makes decisions without reference to anyone else  Works well if you don‟t have much time to accomplish goals or if employees are well motivated.  Generally, this style is not a good way to get the best performance from a team.  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
  11. 11. Leadership Styles Paternalistic: Leader acts as a „father figure‟ Paternalistic leader makes decision but may consult Believes in the need to support staff
  12. 12. Leadership Styles Democratic:  Participative style  The leader involves one or more employees in the decision making process (to determine what to do and how to do it).  Leader maintains the final decision making authority.  Allows everyone to be part of a team— everyone feels that they have participated and contributed.  Encourages participation, delegates wisely, values group discussion.  Motivates by empowering members to direct themselves and guides w/a loose reign.
  13. 13. Leadership Styles Positive May help motivation and involvement Workers feel ownership of the firm and its ideas Improves the sharing of ideas and experiences within the business Negative Can delay decision making Everything is a matter of group discussion and decision—doesn’t really lead.
  14. 14. Leadership Styles Laissez-Faire:  Leader allows employees to make the decisions.  Leader is still responsible for the decisions.  Employees analyze the situation and determine what needs to be done and how to do it. Leader sets priorities and delegates.  Leader has little control. Team has little direction or motivation.
  15. 15. Theories of Leadership  Trait theories Traits are “distinctive, internal qualities or characteristics of an individual such as physical characteristics, personality, skills abilities and social factors” Based on these qualities Trait theory identify and compare the: a) Traits of leaders with those of non leaders b) Traits of effective leaders with that of ineffective leaders.
  16. 16.  Trait theories:  Is there a set of characteristics that determine a good leader?  Personality?  Dominance and personal presence?  Charisma?  Self confidence?  Achievement?  Ability to formulate a clear vision?
  17. 17. Theories of Leadership  As per the Trait theory , the general presumption is “ Leaders are Born and Not made”  It is based on “ Great Man theory” which asserts that people who possess certain physical and psychological characteristics become good leaders.  This theory however has not proved to be true.
  18. 18. Behavioural Theories of Leadership  Failure of the Trait theories to differentiate successful leaders from unsuccessful ones led to the emergence of behavioral theories.  These theories emphasize on what the leaders do, rather than what the leaders are.  While dealing with subordinates the leaders adopt the styles based on leader behavior:  Task-Oriented : Getting work done through employees without focusing on their development  Employee Oriented: Getting work done through friendly behavior and participative decision making.
  19. 19. Behavioural Theories of Leadership a. Assumption1 of this theory is “leader are not completely in born, but also can be acquired from learning and experience” b. Assumption2 of this theory is “Specific behavior differentiates leaders from non leader” c. This theory conduct two researches: 1. Ohio Studies at Ohio state University, USA 2. Michigan Studies at University of Michigan during 1945-47
  20. 20. Ohio state studies of Leadership  Ohio state university conducted a research to identify leader behavior.  Two dimensions of leader behavior were identified: a) Consideration : “Behavior indicating friendship, mutual trust, respect and warmth in the relationship between leader and his staff” it can be termed as “ Employee oriented behavior” a) initiating structure : It Is where the leader is focused on establishing well defined patterns of organization and channels of communication” it can be termed as “ Production oriented Behaviour”
  22. 22. OHIO STUDIES:LEADERSHIP (cntnd)  The results revealed that the leaders depicted neither of the two behaviors on single continuum.  None of the four leadership styles were considered to be Best.  It was generally felt that in military organizations, leaders ranking high in initiating structure were more successful.  in business, leaders with more consideration were successful.  the style that the leaders adopt is normally what the subordinates want them to adopt.
  23. 23. Michigan studies  In these studies two types of leaders were identified: a) Employee- Centered Behavior: these managers accomplish the group goals through employees participation. a) Job –Centered Behavior: These managers accomplish goals through identification of task, division into units and control of employee activities. Results:  Effective leaders invite workers participation in decision making process.  The group which produced more had leaders with employee centered approach than production centered approach.
  24. 24. The managerial grid theory  Developed by Robert Blake and Jane Mouton in 1960‟s.  According to them , the leadership style i.e. employee oriented or production oriented depends on where the Leader positions himself on the managerial grid.  In this grid: horizontal axis represents leaders concern for production, and vertical represents concern for people.
  25. 25. The managerial grid theory :- HIGH 9 1.9 9.9 (country club) (TEAM) 8 7 6 5.5 5 (MIDDLE OF THE ROAD) CONCERN FOR THE 4 PEOPLE 3 2 1.1 9.1 1 (IMPROVERISHED) (TASK) 1 2 3 4 5 6 7 8 9 CONCERN FOR LOW PRODUCTION HIGH
  26. 26. Based on the managerial Grid five leadership styles can be adopted with varying degrees of concern for people and task:  1.1 ( impoverished Management) : Here the leader has low concern for people and production. It represents the laissez Faire management style.  1.9 ( Country Club Management) : It represents Low concern for production and high concern for People. Here the leader shows concern, love affection and motivates the employees to accomplish group goals.  9.1 ( Task Management) : Here the leader has High concern for production and less for people. Represents the Autocratic style of management.  5.5 ( Middle of Road) : This styles of leadership satisfies both organizational and human needs through moderate concern for people and production.  9.9 (Team) : This is the most effective style of leadership where the leaders show maximum concern for people and the task.
  27. 27. Rensis Likert system of management  Likert studied the leadership styles by studying leader behaviour in business and non –business organizations. Four styles of leadership emerged: System 1 Exploitative – Authoritative “ This style of leadership aims at production maximization and ignores the human aspect of organizational behavior” System 2 Benevolent – Authoritative “This system of leadership is an improvement over system 1. Although it aims at production maximization but with a friendly approach towards subordinates”
  28. 28. Rensis Likert system of management System 3 Consultative – Authoritative “ It is an improvement over the previous system. Although the important decisions are taken at the top level but operating decisions are taken by lower level managers”  System 4 Participative – Democratic “ This system represents optimum situation for the management or leadership style. Leaders extensively interact with the subordinates and involve them fully in the goal setting process.
  29. 29. Contingency Models Fiedler’s Model: effective leadership is contingent on both the characteristics of the leader and the situation.  Leader style: the enduring, characteristic approach to leadership a manager uses.  Relationship-oriented: concerned with developing good relations with workers.  Task-oriented: concerned that workers perform so the job gets done.
  30. 30. Fiedler’s Model  Situation characteristic: how favorable a given situation is for leading to occur.  Leader-member relations: determines how much workers like and trust their leader.  Task structure: extent to which workers tasks are clear-cut.  Clear issues make a situation favorable for leadership.  Position Power: amount of legitimate, reward, & coercive power a leader has due to their position.  When positional power is strong, leadership opportunity becomes more favorable.
  31. 31. Fiedler’s Contingency Model Leader- Member Relations GOOD POOR Task HIGH LO W HIGH LOW Structure Position S W S W S W S W Power Kinds of I II III IV V VI VII VIII Leadership Very Very Situations Favorable Unfavorable Relationship-oriented managers most effective in IV, V, VI, VII. Task-oriented managers most effective in I, II, III or VIII.
  32. 32. PATH GOAL THEORY a. The path goal theory developed by Robert House. a. The path goal theory founded on the belief that it is the Leader’s job to assist followers in attaining their goals and to provide necessary direction or support to ensure that their goals are compatible with the overall objective of the group or organization.
  33. 33. Path-Goal Theory
  34. 34. Leadership Behaviors a. Directive leadership :- leader gives instructions, expectations, time lines, rewards norms, clarify the rules and regulation as applicable and monitor their performance b. Supportive Leadership :- leader is friendly and approachable, attends to the well being of subordinates, and treats everyone as equals. c. Participative Leadership :- leader invites subordinates to give ideas, share opinions and integrates their suggestions into the decision making process. d.Achievement-Oriented Leadership :- leader challenges subordinates to perform at the highest level possible. Leader has high standards of excellence and seeks continuous improvement.
  35. 35. How Does Path-Goal Theory Work? a. The leader‟s job is to help subordinates reach their goals by directing, guiding, and coaching them along the way b. Leaders must evaluate task and subordinate characteristics and adapt leadership style to these c. The theory suggests which style is most appropriate for specific characteristics
  36. 36. Hersey and Blanchard’s situational Theory  This theory relates leadership style to situation and maturity of employees.  It assumes that as the maturity level increases, leadership style also varies.  The theory divides the maturity level into following: M1: Low level of maturity M2: & M3 : Moderate level of maturity M4: High level of maturity Relationship between the leadership behavior and maturity level of employees gives rise to four styles of leadership:  L1 style (Telling)  L2 style (Selling)  L3 style (Participating)  L4 style (Delegating)
  38. 38. L1 style (Telling) : •This style deals with people with low level of maturity. •They do not take responsibility for a particular task • Leaders are task oriented and less relationship oriented in their behavior. •L2 style ( Selling) • Here although the maturity level of people gets increased from M1 to M2. • They are not skilled to do the tasks. • The leader focuses on high task orientation as well as high relationship oriented behavior. •L3 style (participating ) • Here the employees have the skill, knowledge and competence to handle the jobs on their own. • The leader has high relationship and low task behavior. •L4 style ( Delegating) • High level of maturity is shown by the employees (M4) • The employees are ready, able and willing to take responsibilities with respect to their jobs. • The leadership style is delegating where the job is delegated to the workers to be done on their own.
  39. 39. Transformational Leadership  Started with von Pierer, CEO of Siemens, and allows dramatic improvements in management effectiveness.  Transformational managers:  Make subordinates aware of how important their jobs are by providing feedback to the worker.  Make subordinates aware of their own need for personal growth and development. Empowerment of workers, added training help.  Motivate workers to work for the good of the organization, not just themselves.
  40. 40. Transformational Leaders  Transformational leaders are charismatic and have a vision of how good things can be.  They are excited and clearly communicate this to subordinates.  Transformational leaders openly share information with workers.  Everyone is aware of problems and the need for change.  Empowers workers to help with solutions.  Transformational leaders engage in development of workers.  Manager works hard to help them build skills.
  41. 41. Transactional Leadership  Involves managers using the reward and coercive power to encourage high performance.  Managers who push subordinates to change but do not seem to change themselves are transactional.  The transactional manager does not have the “vision” of the Transformational leader.