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LEADERSHIPManaging People And Organisations
INTRODUCTION TO LEADERSHIP
Leadership is the ability to get work done with & through others, while at the
same time winning their confidence, loyalty & willing cooperation.
TWO TYPES OF LEADERSHIP
Formal Leadership
 The formal leader is the supervisor or manager appointed by the
organization to be in change of the work group.
 Their aim is to achieve the organizations objectives.
Informal Leadership
 Is chosen by the group itself.
 They usually have good social & communication skills.
 They focus on the group’s need for affiliation, leadership & recognition.
APPROACHES TOUNDERSTANDING
LEADERSHIPTrait, Behavioural and Contingency
TRAIT THEORY
Assumptions
 People are born with inherited traits
 Some traits are particularly suited to leadership
These traits may provide people with the potential for leadership, it is the
capacity to create a vision and implement it that turns the potential into reality
 People who make good leaders have the right (or sufficient) combination of trait.
6 characteristics that differentiate leader from non-leaders.
DesireDrive
Intelligence
Honesty &
integrity
Self-
Confidence
Job-relevant
knowledge
BEHAVIOURS THEORY
 Behavioral theories of leadership do not seek inborn traits or capacities. Rather, they
look at what leaders actually do.
 If success can be defined in terms of describable action, then it should be relatively
easy for other people to act in the same way.
 This is easier to teach and learn then to adopt the more ephemeral' traits’ or
‘capabilities’
Ohio State & Michigan Studies
The Michigan and Ohio State theories each attempt to isolate broad dimensions of
leadership behavior
 They have provided parishioners with information on what behaviors leaders
should possess
 This has resulted in the establishment of training programs for leaders of various
levels
MANAGERIAL GRID
CONTINGENCY THEORIES OF
LEADERSHIP
Theories that seek to define leadership style and answer:
‘if’ this situation, ‘then’ this is the best style to use.
 Fiedler model
 Hersey-Blanchard situational theory
 Leader-participation model
 Path-goal theory
FIEDLER’S CONTINGENCY MODEL
Assumptions
 A certain leadership style should be most effective in different types of situation.
 Leaders do not readily change leadership styles
 Matching the leader to the situation or changing the situation to make it favourable
to the leader is required
HERSEY’S ANDBLANCHARD’S SITUATIONAL
THEORY
 Argues that successful leadership is achieved by selecting the right leadership style which is
contingent on the level of the followers’ readiness.
 Acceptance: leadership effectiveness depends on whether followers accept or reject a leader.
 Readiness: the extent to which followers have the ability and willingness to accomplish a specific
task.
 Leaders must relinquish control over and contract with followers as they become more competent.
LEADER-PARTICIPATION MODEL
Posits that leader behavior must be adjusted to reflect the task structure whether it is routine,
non-routine, or in between-based on a sequential set of rules (contingencies) for determining
the form and amount of follower participation in decision making in a given situation.
Vromm and Yettom
PATH-GOAL THEORY
Path-goal theory that says it is a leader’s job to assist followers and to provide direction and
support that are needed to attain goals.
LEADERSHIPIN
BUSINESS
The Salvation Army, ANZ & Woolworths
THE SALVATION ARMY
The administration of The Salvation Army is top-down and autocratic, in true military style,
with all positions except that of General being held by appointment.
There are three distinct levels of leadership
held within the Salvation Army:
Corps level
International level
Territorial level
Divisional level
THE SALVATION ARMY
 Despite the top-down – autocratic organisation style of the Salvation Army, the nature of
Leadership held within the organisation corresponds with the Path-Goal theory of leadership.
 In regards to the leadership style of the Salvation Army, a values-based approach becomes
the most relevant
The Salvation Army’s main value is to assist all people in need without regard to
nationality, race, belief, sexuality, ability, or judgement of behaviour. Their
philosophy is that they can best express thier love for God by compassionately
reaching out to help people - following the Golden Rule –
"Do unto others as you would have others do unto you".
THE SALVATION ARMY
1. The most important attribute is vision. A leader must understand the big
picture and clearly enunciate the way it can be realised in terms that staff,
clients and the world at large can identify with.
2. A leader must be prepared to allow mistakes to be made in the pursuit of the
shared vision. Encourage expansionist activity rather than 'safe' repetition of
the 'known way'.
3. Leadership also requires the development of staff to their full potential and
recognition of those who have reached a level of expertise they are prepared to
work at for the foreseeable future.
ANZ
 Both the leadership as traits and Leadership as behavior theory can be applied to the
management team of ANZ with certain aspects taking greater priority.
 Although the leadership as traits theory has holes such as theories which account
attributes such as height, sex and ethnicity to the integrity of the leader which is not always
agreed upon, it is hard to argue against the fact that all 9 leaders of ANZ are middle aged
white men from the CEO to the Chief Risk Officer.
 It seems that those who don’t follow the trend in the leadership as traits theory tend to
have to work harder to achieve the same goals.
ANZ
 ANZ like all other large businesses have decided upon Board Composition, Selection and
Appointment Charter that potential candidates must satisfy. Selection criteria include
integrity, fitness and propriety, skills, experience, communication capabilities and community
standing, all of which come under the traits or behavioral aspects.
 Shane Freeman the Group General Manager of People Capital and Breakout, follows the
Path-Goal theory of leadership and could be accurately described as an Achievement oriented
leader. Shane as taken his approach of leadership away from the Directive, Supportive and
Participative approach which does not fit ANZ structure in a practical sense due to the obvious
changes in staff behavior such as reduced motivation and as a result productivity.
WOOLWORTHS
 Human Resource framing establishes the fact that sense is made through the emphasis of
an organisation as a family and the belief that the effect of an organisation’s actions on an
individual is integral and must always be considered.
 As stated by Maslow this results in leadership where intrinsic (natural/fundamental)
motivation dominates and the leaders goals are to empower, mentor and inspire individuals.
This further contributes to family aspect and people believe it is in there best interest to make
the organisation successful thus resulting in the individual’s goals being parallel to that of the
company.
WOOLWORTHS
Woolworths Limited seeks to place emphasis on an organisations most valuabe rescource,
being people through constant Mentoring. Woolworths sees this Mentor/Mentee
relationship as integral as constant guidance, performance review and training is engaged
in.
Model popular in US 40s-50s by Abraham Maslow through Motivation & Personality 1954
WOOLWORTHS
 Symbolic framing reinforces the idea that sense is made through believing what is most
important is not an action but the meaning that is derived from it.
 Woolworths provides many examples of symbolic framing as strong leaders that lead by
example can be seen throughout the organisation There actions are also prominent throughout
the company as Woolworths has various policies set to allow for senior management to interact
with every level of staff.
 Company CEO Michael Luscombe is publicised to interact with all staff on a regular basis so
that staff can follow is example and derive meaning from his actions.

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LEADERSHIP Theories & Business Examples

  • 2. INTRODUCTION TO LEADERSHIP Leadership is the ability to get work done with & through others, while at the same time winning their confidence, loyalty & willing cooperation.
  • 3. TWO TYPES OF LEADERSHIP Formal Leadership  The formal leader is the supervisor or manager appointed by the organization to be in change of the work group.  Their aim is to achieve the organizations objectives. Informal Leadership  Is chosen by the group itself.  They usually have good social & communication skills.  They focus on the group’s need for affiliation, leadership & recognition.
  • 5. TRAIT THEORY Assumptions  People are born with inherited traits  Some traits are particularly suited to leadership These traits may provide people with the potential for leadership, it is the capacity to create a vision and implement it that turns the potential into reality  People who make good leaders have the right (or sufficient) combination of trait. 6 characteristics that differentiate leader from non-leaders. DesireDrive Intelligence Honesty & integrity Self- Confidence Job-relevant knowledge
  • 6. BEHAVIOURS THEORY  Behavioral theories of leadership do not seek inborn traits or capacities. Rather, they look at what leaders actually do.  If success can be defined in terms of describable action, then it should be relatively easy for other people to act in the same way.  This is easier to teach and learn then to adopt the more ephemeral' traits’ or ‘capabilities’ Ohio State & Michigan Studies The Michigan and Ohio State theories each attempt to isolate broad dimensions of leadership behavior  They have provided parishioners with information on what behaviors leaders should possess  This has resulted in the establishment of training programs for leaders of various levels
  • 8. CONTINGENCY THEORIES OF LEADERSHIP Theories that seek to define leadership style and answer: ‘if’ this situation, ‘then’ this is the best style to use.  Fiedler model  Hersey-Blanchard situational theory  Leader-participation model  Path-goal theory
  • 9. FIEDLER’S CONTINGENCY MODEL Assumptions  A certain leadership style should be most effective in different types of situation.  Leaders do not readily change leadership styles  Matching the leader to the situation or changing the situation to make it favourable to the leader is required
  • 10. HERSEY’S ANDBLANCHARD’S SITUATIONAL THEORY  Argues that successful leadership is achieved by selecting the right leadership style which is contingent on the level of the followers’ readiness.  Acceptance: leadership effectiveness depends on whether followers accept or reject a leader.  Readiness: the extent to which followers have the ability and willingness to accomplish a specific task.  Leaders must relinquish control over and contract with followers as they become more competent.
  • 11. LEADER-PARTICIPATION MODEL Posits that leader behavior must be adjusted to reflect the task structure whether it is routine, non-routine, or in between-based on a sequential set of rules (contingencies) for determining the form and amount of follower participation in decision making in a given situation. Vromm and Yettom
  • 12. PATH-GOAL THEORY Path-goal theory that says it is a leader’s job to assist followers and to provide direction and support that are needed to attain goals.
  • 14. THE SALVATION ARMY The administration of The Salvation Army is top-down and autocratic, in true military style, with all positions except that of General being held by appointment. There are three distinct levels of leadership held within the Salvation Army: Corps level International level Territorial level Divisional level
  • 15. THE SALVATION ARMY  Despite the top-down – autocratic organisation style of the Salvation Army, the nature of Leadership held within the organisation corresponds with the Path-Goal theory of leadership.  In regards to the leadership style of the Salvation Army, a values-based approach becomes the most relevant The Salvation Army’s main value is to assist all people in need without regard to nationality, race, belief, sexuality, ability, or judgement of behaviour. Their philosophy is that they can best express thier love for God by compassionately reaching out to help people - following the Golden Rule – "Do unto others as you would have others do unto you".
  • 16. THE SALVATION ARMY 1. The most important attribute is vision. A leader must understand the big picture and clearly enunciate the way it can be realised in terms that staff, clients and the world at large can identify with. 2. A leader must be prepared to allow mistakes to be made in the pursuit of the shared vision. Encourage expansionist activity rather than 'safe' repetition of the 'known way'. 3. Leadership also requires the development of staff to their full potential and recognition of those who have reached a level of expertise they are prepared to work at for the foreseeable future.
  • 17. ANZ  Both the leadership as traits and Leadership as behavior theory can be applied to the management team of ANZ with certain aspects taking greater priority.  Although the leadership as traits theory has holes such as theories which account attributes such as height, sex and ethnicity to the integrity of the leader which is not always agreed upon, it is hard to argue against the fact that all 9 leaders of ANZ are middle aged white men from the CEO to the Chief Risk Officer.  It seems that those who don’t follow the trend in the leadership as traits theory tend to have to work harder to achieve the same goals.
  • 18. ANZ  ANZ like all other large businesses have decided upon Board Composition, Selection and Appointment Charter that potential candidates must satisfy. Selection criteria include integrity, fitness and propriety, skills, experience, communication capabilities and community standing, all of which come under the traits or behavioral aspects.  Shane Freeman the Group General Manager of People Capital and Breakout, follows the Path-Goal theory of leadership and could be accurately described as an Achievement oriented leader. Shane as taken his approach of leadership away from the Directive, Supportive and Participative approach which does not fit ANZ structure in a practical sense due to the obvious changes in staff behavior such as reduced motivation and as a result productivity.
  • 19. WOOLWORTHS  Human Resource framing establishes the fact that sense is made through the emphasis of an organisation as a family and the belief that the effect of an organisation’s actions on an individual is integral and must always be considered.  As stated by Maslow this results in leadership where intrinsic (natural/fundamental) motivation dominates and the leaders goals are to empower, mentor and inspire individuals. This further contributes to family aspect and people believe it is in there best interest to make the organisation successful thus resulting in the individual’s goals being parallel to that of the company.
  • 20. WOOLWORTHS Woolworths Limited seeks to place emphasis on an organisations most valuabe rescource, being people through constant Mentoring. Woolworths sees this Mentor/Mentee relationship as integral as constant guidance, performance review and training is engaged in. Model popular in US 40s-50s by Abraham Maslow through Motivation & Personality 1954
  • 21. WOOLWORTHS  Symbolic framing reinforces the idea that sense is made through believing what is most important is not an action but the meaning that is derived from it.  Woolworths provides many examples of symbolic framing as strong leaders that lead by example can be seen throughout the organisation There actions are also prominent throughout the company as Woolworths has various policies set to allow for senior management to interact with every level of staff.  Company CEO Michael Luscombe is publicised to interact with all staff on a regular basis so that staff can follow is example and derive meaning from his actions.