Leadership MBA.

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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.
Characteristics of Leadership

• Leadership is a process of Influence

• Leadership is Multi-faceted

• Leadership is Goal oriented

• Leadership is related to a situation


Role and importance of Leadership
• Providing inspiration to employees
• Securing cooperation
• Creating confidence
• Providing conducive environment
• Building higher morale
• Facilitation of change
Functions of Leadership

• Setting Goals

• Motivation

• Organising

• Representation

• Coordination

• Control
Leaders Vs Managers
• Managers create goals.
• Leaders create a vision.
• Managers maintain the status quo.
• Leaders are change agents.
• Managers copy.
• Leaders are unique.
• Managers control risk .
• Leaders take risks.
• Managers build systems and
• Leaders build relationships.
processes.
• Leaders coach.
• Managers direct.
• Leaders create fans.
• Managers have employees.
• Leaders grow personally.
• Managers rely on existing, proven
skills.
LEADERSHIP
THEORIES

Behavioral Contingency
Theories Theories New Theories
Trait
•Fiedler Model •Leader Exchange Theory
Theories •Ohio State Studies •Vroom and Yetton’s
•Hersey and Blanchard’s
•Uni. Of Michigan State Leader Participation Model
Situational Theory
Path Goal Theory
Trait Theories of Leadership
• Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from
nonleaders

• Leadership Traits

• Extroversion

• Conscientiousness

• Openness

• Emotional Intelligence (Qualified)

• Traits can predict leadership, but they are better at predicting leader emergence than effectiveness
Behavioral Theories of Leadership
• Theories proposing that specific behaviors differentiate leaders from
nonleaders
• Differences between theories of leadership:
• Trait theory: leadership is inherent, so we must identify the leader based on his
or her traits
• Behavioral theory: leadership is a skill set and can be taught to anyone, so we
must identify the proper behaviors to teach potential leaders
Important Behavioral Studies

• Initiating structure
Ohio • Consideration

• Employee-oriented
Michigan • Production-
oriented
The Managerial
Grid
(Blake and Mouton)
Contingency Theories
• Trait and behavior theories help us understand
leadership, an important component is missing: the
environment in which the leader exists.

• Contingency Theory adds this additional aspect to


understand leadership effectiveness.
Three key theories:

• Fiedler’s Model
• Hersey and Blanchard’s Situational Leadership Theory
• Path-Goal Theory
Fiedler Model
• Effective group performance depends on the proper match
between leadership style and the degree to which the situation
gives the leader control.
• Assumes that leadership style (based on orientation revealed
in LPC questionnaire) is fixed.
• Situational Factors:
• Leader-Member Relations: degree of confidence and trust in
the leader
• Task Structure: degree of structure in the jobs
• Position Power: leader’s ability to hire, fire, and reward
Graphic Representation of Fiedler’s Model

Used to
dehtermine
which type
of leader to
use in a
given
situation
Assessment of Fiedler’s Model
• Positives:
• Considerable evidence supports the model, especially if
the original eight situations are grouped into three.

Problems:
– The logic behind the LPC scale is not well
understood

– LPC scores are not stable

– Contingency variables are complex and hard to


determine
Situational Leadership Theory
• Focuses on follower “readiness”
• Followers can accept or reject the leader

• Effectiveness depends on the followers’ response to the


leader’s actions

• “Readiness” is the extent to which people have the ability


and willingness to accomplish a specific task
Situational Leadership Theory
Ability to follow Willingness to Follow Leadership Behavior

Unable Unwilling Give clear and specific directions

Unable Willing Display high task orientation

Able Unwilling Use a supportive and participatory


style

Able Willing Doesn’t need to do much


Robert House Path-Goal Theory
• Builds from the Ohio State studies and the expectancy theory of
motivation.

• Leaders provide followers with information, support, and resources to help


them achieve their goals
• Leaders help clarify the “path” to the worker’s goals
• Leaders can display multiple leadership types
Four types of leaders
• Directive: focuses on the work to be done

• Supportive: focuses on the well-being of the worker

• Participative: consults with employees in decision making

• Achievement-Oriented: sets challenging goals


Leader-Member Exchange (LMX) Theory
In Groups Out Groups
• Members are similar to • Managed by formal rules
leader
• In the leader’s inner circle and policies
of communication • Receive less of the
• Receives more time and
attention from leader leader’s attention / fewer
• Gives greater exchanges
responsibility and rewards
• More likely to retaliate
against the organization
Leaders Types

• Contingent Reward
• Management by Exception (active)
• Management by Exception (passive)
Transactional • Laissez-Faire

• Idealized Influence
• Inspirational Motivation
Transformational • Intellectual Stimulation
• Individualized Consideration
Leadership Model
Transaction Transformational
Approaches Approaches
• Laissez-Faire • Individualized
• Management by Consideration
Exception • Intellectual
• Contingent Reward Stimulation
• Inspirational
Motivation
• Idealized Influence
Global Implications
Country-specific insights
• Brazilian teams prefer leaders who are high in
consideration, participative, and have high LPC scores

• French workers want a leader who is high on initiating


structure and task-oriented
Global Implications (CONTD)
• Egyptian employees value team-oriented, participative leadership, while
keeping a high-power distance

• Chinese workers may favor a moderately participative style

• Leaders should take culture into account

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