HBO (Chapter 5: Leadership and Its Changing Development in Organizations)

Introduction Management
Leadership  Involves planning, organizing, staffing, directing, and
controlling
 Ability of one to unite people to attain organization
 Need to cope with changes brought by advances in
objectives collectively
science and technology
 Keith Davis: ability to persuade others to seek defined
 Several types of resistance to change have to be
objectives enthusiastically. Leadership brings about the
expected
realization of potentials that exist in organization and
 Certain techniques have to be employed to build
its constituents
support for change
 Plays an important role in management
 Successful leadership depends on the actuations
rather than on the character traits of a person Manager
 Variables that determine the nature of appropriate  Has formal authority by virtue of his or her position or
leadership behaviour: office
o Leader  May or may not be an effective leader
o Followers
o Situations
A manager is not necessarily a good leader just as a good
 Should be distinguished from management as
leader may or may not be a good manager
leadership primarily deals with influence
Excellent manager is expected to have reasonably high
leadership ability
Leader
 Number of roles to play
Task and Psychological Support
 Has to exercise different styles of leadership that are
 Leaders provide both task and psychological support
compatible to those he works with
for their followers
 Must possess the ability to work effectively with others
 Task: Help in assembling resources and other elements
and to bring teamwork
needed to get jobs and projects done
 Wields certain organizational powers and employs
 Psychological: Stimulate their followers to accomplish
strategies to gain support and allegiance among his
their respective jobs effectively and efficiently
followers
 Exercise supervisory functions and to develop a
participative form of management Role Modeling
 May or may not be a manager  Supervisors – supervise as they themselves are subject
 Key personnel or human resources in an organization to supervision
 Appropriate for a leader:  Leaders – serves as role models for their subordinates
o Stay at the background  Type of Style:
o Don’t pressure the group 1. Autocratic Leadership
o Keep quiet so others may express themselves 2. Participative Leadership
o Keep calm at times of crisis 3. Free-reign Leadership
o Delay decision-making to carefully consider issues
and problems
Autocratic Leadership
 Centralization of power and decision-making in the
Good leadership -> Good and better employees, products, leader
and services -> Benefits members of the society  Leader has full authority and responsibility for what
transpires in his jurisdiction
Participative Management (under leadership)  Basically negative in nature
 Positive features: rewards to subordinates
 Achieved through a number of participative programs
 Benevolent autocrat – autocratic leader
 Advantages of autocratic leadership:  Leadership trait research examined the ff:/ Subjects of
1. Strong motivations and reward for the leader empirical research:
2. Results in quick decisions o Physical traits - height
3. Less competent employees can be employed to o Mental traits – intelligence
carry out orders o Social traits - personality
 Disadvantages of autocratic leadership:  Significant associations between individual traits and
1. Frustration, dissatisfaction, fear and conflict measures of leadership effectiveness
develop easily  Initial conclusion: there were no universal traits that
2. Employees feel that they produce on account of consistently separated effective leaders from others
pressures rather than being spurred by  Ralph Stogdill (1948): review of leadership literature,
motivations existing research had not demonstrated the utility of
3. Creativity of employee is stifled the trait approach
 Problems of early trait research:
Participative Leadership o Measurement theory at the time was not highly
 Decentralization of authority sophisticated
o Little was known about psychometric properties
 Decisions are from followers and participation by them
 Leader and the constituents of the group act as social of the measures
unit o Relied on samples of low-level managers
 Encourages freedom of expression o Largely theoretical offering no explanations
 Current trend: wider use of participative management o Did not consider the impact of situational
 Supportive and collegial model of organizational variables that might moderate relationship
behaviour between leadership traits and measures of leader
 Democratic: Consultative and Participative effectiveness

Free-reign Leadership The Ohio State Studies

 Generally avoids power and responsibility  Beginning of the 1950s – disenchantment with the trait
 The group establish their own goals and solve their approach
problems  Focus of leadership: leader traits -> leader behaviours
 Members take care of their own training and  Premise: leadership behaviours > leadership traits
motivation  2 most famous behavioural leadership: (1940s to
 Units tend to proceed at cross-purposes that bring 1950s)
chaos 1. Ohio State University
 Work in reverse with autocratic form of leadership 2. University of Michigan

Leadership styles with employees Ohio State University

 2 different styles of leadership in terms of  Utilized the Leader Behavior Description Questionnaire
consideration and structure: (LBDQ)
1. Employee orientation  Answers to questionnaire were factor-analyzed to
2. Task orientation determine if common leader behaviours emerged
 Employee-oriented leaders – concerned with the across samples
human needs of his employees resulting to satisfaction  Conclusion: there were two distinct aspects of
 Structured or task-oriented leaders – get results by leadership that describes how leaders carry out their
keeping their personnel busy with great productivity role
 2 factors:
1. Initiating structure – also called as task-oriented
Trait Approach
behaviour, involves planning, organizing, and
 Scientific study of leadership began with a focus on the coordinating the works of subordinates
traits of effective leaders 2. Consideration – showing concern for
 “Great Man” Theory – effective leaders are born, not subordinates
made
University of Michigan Fiedler’s Contingency Theory
 Conclusion: employee orientation and general instead  1967, first to specify how situational factors interact
of close supervision yielded better results with leader traits and behaviour to influence leadership
 Rensis Likert: developed four “systems” of effectiveness
management; he advocated System 4  “favourability” of the situation determines the task- and
 System 4 – participative-group system; the most person-oriented leader
participatory set of leader behaviours
 Favorability is determined by:
1. Respect and trust that followers have for the
Managerial (Leadership) Grid
leader
 Concept based largely on behavioural approach to 2. Extent to which subordinates’ responsibilities can
leadership effectiveness be structured and performance measured
 Developed by Robert Blake and Jane Mouton 3. Control the leader has over subordinates’ rewards
 Combines “concern for production” with “concern for
people”  Task-oriented leaders – more effective in highly
 Major consulting tool and was the basis for a favourable or unfavourable situations
considerable amount of leadership on the corporate  Person-oriented leaders – more effective in
world moderately favourable or unfavourable situations
 Presents 5 alternative behavioural styles of leadership
 Fiedler claims that a leader’s effectiveness is
determined by the interaction of employees’
orientation with 3 variables:
1. Followers
People

2. Task to be undertaken
3. Organization
 Such variables may be referred to as:
1. Leader-member relations – manner in which the
leader is accepted by the group
2. Task structure – degree to which one specific
Production
way is required to do a piece of work
Impoverished Management – neither concern 3. Leader position power – organizational power of
“Country-club” Manager the leader
“Task” Manager
“Middle-of-the-road” Manager – balance Leaders as Followers
“Team Management” – high concern for both; best
leadership approach  Leaders are also followers because they similarly
report to someone else on top of them
 To be a good leader, one must be a good follower
 Ability to follow is one of the requirements to qualify
Fiedler’s Theory: The Contingency Model of
for good leadership
Leadership
Leadership use of skills
 Contingency or situational theories of leadership –
 3 different types of skills are employed by leaders:
propose that the organizational or work group context
1. Technical skills – individual’s knowledge and
affects the extent to which given leader traits and
ability pertaining to certain processes or
behaviours will be effective
techniques; things
 1960s to 1970s
2. Human skills – ability to work effectively with
 4 of the well-known contingency theories:
others and to bring teamwork; major behavioural
1. Fiedler’s contingency theory
role played by leaders; people
2. Path-goal theory
3. Conceptual skills – ability to think in terms of
3. Vroom-Yetton-Jago decision-making model of
models, frameworks and broad relationships for
leadership
long-range planning; ideas
4. Situational leadership theory
Goal Setting
 Concerned with the identification of targets, as well as The Blanchard (Situational) Model
long and short-term objectives, towards which
 Situational leadership theory introduced in 1969 and
performance is directed
revised in 1977 by Hersey and Blanchard
 At least 3 steps are required in goal setting:
 The key contingency factor affecting leaders’ choice of
1. Definiton of goals
leadership style is the task-related maturity of the
2. Setting specific goals
subordinates
3. Obtaining feedback about goal accomplishments
 One of the better-known contingency theories of
Goal Definition leadership despite it being criticized on theoretical and
 Proper goal definition demands that the leader explains methodological grounds
the underlying intentions and their justification  Subordinate maturity – ability of subordinates to
Specific Goals accept responsibility for their own
 Classifications of leader behaviours (2 broad
 Goals must be specific so that employees will have a
classes)
basis for assessing what they have achieved and feel a
o Task-oriented behaviours
sense of accomplishment
o Relationship-oriented behaviours
Feedback about accomplishments
 Well-defined goals serve as yardsticks in measuring the
extent of nearness to established goals The Path-Goal Model of Leadership
 Job feedback – generate better performance among  Goal-setting has led to a path-goal view of leadership,
the team members or group an outcome from the expectancy model of motivation
 Expectancy model states that valence (desire to achieve
The Vroom Model a goal) X expectancy (strength of the belief that specific
act will lead to desired goal) = motivation
 Vroom-Yetton-Jago decision-making was introduced by  Path-goal theory was first presented in 1971
Victor Vroom and Phillip Yetton (1973) and revised by Administrative Science Quarterly article by Robert
Vroom and Jago (1988) House
 Focuses primarily on the degree of subordinate  The subordinate’s characteristics and the
participation that is appropriate in different situations characteristics of the work environment determine
 Emphasizes the decision-making style of leader which leader behaviours will be more effective
 5 types of leader decision-making styles:
o AI – strongly autocratic  Important environmental characteristics:
o AII o Nature of task
o CI o Formal authority system
o CII o Nature of work group
o G – strongly democratic
 The appropriate style is determined by answers to up  4 different leader behaviours:
to eight diagnostic questions such as: o Directive leadership
o Importance of decision quality o Supportive leadership
o Structure of the problem o Participative leadership
o Whether subordinates have enough info to make a o Achievement-oriented leadership
quality decision
o Importance of subordinate commitment to the  Leaders can establish the path-goal relationship
decision through the following ways:
 Criticized for its: 1. Gibing better reward for goal attainment
o Complexity 2. Providing feedback about goal accomplishments
o Assumption that decision makers’ goals are 3. Improving or greasing the path toward the goal
consistent with organizational goals 4. Providing the needed resources and training and
o Ignoring the skills needed to arrive at group removing barriers along the way
decisions to difficult problems  Related to goal-setting and the path-goal idea is what is
referred to as management by objectives
 3. Resolution of conflicts from the implementation

Styles of Leadership  Problems on which supervisors spend their time

 Leaders may use negative or positive methods of (by Bredrord Boyd and Burt Soanlan) supervisors exert
approach the most pressure on the ff problems:
 Positive leadership – higher job satisfaction; 1. Meeting tight production schedule (supervisor’s job
cooperation is to get things done)
 Negative leadership – considered as “bosses” rather 2. Keeping production up to establish efficiency
than leaders standards (to keep cost in line or within reasonable
levels)
3. Winning and maintaining the cooperative attitude
Effective Supervision of employees (how to get things done at the right
 Supervisors occupy lowest management level in time, place, and way)
organizations; points of contact between the
management and the workers; keystones in the  Why supervisors fail (National Management
structure of organization Association of the United States) 6 supervisory pitfalls:
1. Poor personal relations with workers or with
other management people
 The supervisor, among other things: 2. Individual shortcomings like lack of initiative
1. Creates a climate conducive to sound human 3. Lack of understanding of the management’s point
relationship of view
2. Develops desirable attitudes 4. Unwillingness to spend the necessary time and
3. Interprets and implements company policies effort to improve
4. Trains new as well as older employees to work 5. Lack of skill in planning and organizing work
efficiently, effectively and safety 6. Inability to adjust to new and changing condition
5. Counsels and maintains discipline among
employees
6. Recommends personnel actions such as promotion Positive Personal Attributes of an Effective Leader
7. Plans and maintains time and work schedules 10 positive personal attribute of an effective leader
8. Uses his knowledge of machine and equipment (Myra Jucutan): The leader is/must:
capacities
1. Seen as partner, one who is committed to the best
9. Makes sure of securing good quality products and
interest of the individual and the group
services
2. Free from any bias and has no favouritism
10. Coordinated departmental activities to meet goals
3. Has the patience and the time to listen
4. Welcomes personnel to the organization
 The Supervisor’s Leadership Role 5. Acts as mentor and coach
1. Key person in management – key men directing 6. Must be honest and trustworthy
the accomplishment of work 7. Must be flexible and compassionate
2. Middle Road Supervisor – supervisors are caught 8. Must show that he is determined to do what is right
between 2 social forces, management and labor 9. Be always calm, patient, tolerant and understanding
3. The Marginal Supervisor – left out of or is at the 10. Always show positive attitude to change
margin of the principal activities and matters
4. As Another Worker – no authority and devoid of Development of Participation
the right to make decisions
5. The Behavioral Specialist – look after the human  Participative style of management is important for
side of operations effective leadership
NOTE: pp. 208 to 209 Nature of Participation
 Participation – psychological effect in employees who
belongs to the support of management; mental and
 Duties undertaken by supervisors and things they
emotional involvement
do in carrying out managerial responsibilities:
1. Establishment of policies  3 important ideas or features that characterize
2. Planning of ways to implement them participation are:
 o Mental and emotional involvement, Motivation to 2. Democratic Management
contribute, Acceptance of responsibility 3. Work committees
Mental and Emotional Involvement 4. Suggestion programs
 Mental and emotional involvement > muscular activity 5. Module- management committees
 Psychological > physical 6. Codetermination activities
 Person’s whole being > one’s skill
Consultative Management
 Ego involved > task-involved
 Managers consult with their employees to encourage
Motivation to Contribute
them to deliberate upon issues; display humility
 Participation – share their initiatives and creativity,
Democratic Management
individuals release their own resources, two-way social
exchange  Management refers a number of major decisions to
Acceptance of Responsibility employees’ groups for discussion; “group dynamics”;
 Participation – social process where people get self- consensus and the one-person, one-vote ideas
involved; people say “we” not “they”; refer to problems Work Committees
as “ours” not “theirs”  “production committees”, groups organized to consider
A Sharing Process job problems, other types of work committees include
 Participation – mutual sharing process among labor-management committees, work-improvement
managaers and employees task forces, quality control committees or circles and
Increase in Power and Influence safety committees
 Participation – increase the power of both managers Suggestion Programs
and employees; managerial powers depend mostly on  Formal plans designed to encourage individual
employees’ trust in management employees to suggest work improvements
Middle-Management Committees
Prerequisites for Participation (K. Davis):  Group to improve participation of managers below top
1. Adequate time to participate management levels; “multiple management”
2. Potential benefits of participation should be  Potential benefits derived from multiple management:
comparatively more than the costs it will entail 1. Develops skills for junior executives
3. Relevance to employees’ interest 2. Trains them for top management
4. Employees’ competence to deal with the subject 3. Encourages growth
5. Mutual ability to communicate 4. Develops a spirit of management cooperation
6. No feeling of threat to either party 5. Brings new, creative ideas to top management
7. Participation within the area of job freedom 6. Encourages careful study of policy issues
7. Encourages junior executives to take responsibility
Benefits of Participation (Keith Davis) 8. Broadens junior executive experience
1. Higher output 9. Improves participation
2. Better quality of work Industrial Democracy
3. More suggestions  Basic philosophy: institutionalize the participation of
4. Improved motivation workers in management to encourage cooperation
5. Feeling of acceptance  Lower levels industrial democracy is applied through
6. Greater self-esteem work councils
7. Higher job satisfaction  Top level it is called codetermination
8. Greater cooperation Attitudes of Labor Unions towards Participation
9. Reduced stress  Labor unions- nurse the apprehension that
10. Greater commitment to goals participation will draw loyalty of workers away from
11. Better acceptance of change the union and closer to management; remain aloof to
12. Reduce turnover express disagreement
13. Less absence Limitations of Participation
14. Better communication
 Difficulty in policy matters
 Some workers expect to be consulted on every issue; if
Programs for Participation (K. Davis) Participative
not consulted they develop resentments and become
Programs
uncooperative
1. Consultative Management
 Supervisors find difficulty in adjusting to participation
because traditional authority is threatened
 May lead to manipulation of employees and to impose
conformity