Chap7Leadership LEADERSHIP • Manager versus Leader – not the same Ideally all managers should be leaders. Not all leaders can be managers (appointed formally) • Define leaders as those able to influence and possess managerial authority, emerge from a group of people • Leadership is the process of influencing a group towards achievement of goals • What is an effective leader? • Look at leadership theories. What are traits (characteristics) that differentiate leaders from non-leaders? What are behavioral styles that leaders demonstrate? LeadershipTheoriesshari.fkm.utm 1 Chap7Leadership TRAITS THEORIES • Looked at characteristics differentiate between leaders + non-leaders SIX TRAITS OF EFFECTIVE LEADERS 1. Drive - high effort level, achievers, ambitious, persistent, show initiative 2. Desire to lead – strong desire to influence and lead others, willingness to take responsibility 3. Honesty and integrity - build trust, truthful, consistency between words and deeds 4. Self confidence – followers look for absence of nondoubt 5. Intelligence - able gather, synthesize interpret large amount of info – to create visions, solve problem, make correct decisions 6. Job relevant knowledge - company, industry, technical understand implications of decisions LeadershipTheoriesshari.fkm.utm 2 Chap7Leadership BEHAVIORAL THEORIES - Behaviors that differentiate effective leaders and ineffective ones 1. Autocratic Style - centralize authority, dictate work methods, make one-sided decisions, limit subordinate participation 2. Democratic Style - involve subordinates in decision, delegate authority, encourage participation, use feedback to coach subordinates 3. Laissez-faire Style - gives group complete freedom to make decisions and complete work in whatever way they see fit Focus on work to be done (Boss Autocratic – Centred) Focus on people within group LeadershipTheoriesshari.fkm.utm 3 Democratic Chap7Leadership 4. Managerial Grid • 2-dimensional grid to appraise leadership styles • “concern for people’ and ‘concern for production’ behavioral dimensions • scale form 1(low) - 9 (high) • can have (1,1) grid - Impoverished Mgt • (1, 9) is Country Clud Mgt until (9,9) – Team Mgt. • Blake and Mouton concluded that Managers perform best at Team Mgt. Grid (9, 9) • But, grid gives no answers to what makes an effective leader • Managerial Grid – Only a framework to conceptualize Leadership styles • Different situations require different styles. LeadershipTheoriesshari.fkm.utm 4 Chap7Leadership CONTINGENCY THEORIES • Examine four contingency theories • Focus on situational influences • Fiedler, Hersey Blanchard, leader participation and Path Goal • If this is the situation, then this is the best leadership style LeadershipTheoriesshari.fkm.utm 5 Chap7Leadership FIEDLER MODEL • FIEDLER MODEL proposed – effective group performance depend on proper match between leader’s style of interacting with his or her followers and the degree to which the situation allowed leader to control and influence • Leadership styles – task oriented or relationship oriented • To measure leader’s style – Fiedler developed least-preferred co-worker questionnaire • Discovered 3 contingency dimensions for determining leader effectiveness 1. 2. 3. leader-member relations: the degree of confidence, trust and respect employees had for their leader, either good or poor task structure: the degree to which job assignments were formalized and procedurized, rated either high or low position power: the degree of influence a leader had over power-based activities such as hiring, firing, disciple, promotion, salary increase, rated either strong or weak LeadershipTheoriesshari.fkm.utm 6 Chap7Leadership HERSEY – BLANCHARD SITUATIONAL THEORY • Situational leadership theory is a contingency theory that focuses on followers maturity • Select right leadership style depending on level of readiness/maturity • Readiness - willingness and ability to take responsibility for directing their own behavior • 4 styles 1) Telling (high task – low relationship behavior) defines roles, tells people what, how, when to do various tasks 2) Selling (high task – high relationship) both directive and supportive behavior LeadershipTheoriesshari.fkm.utm 7 Chap7Leadership 3) Participating (low task – high relationship) leader and follower share in decisionmaking, facilitate and communicate 4) Delegating (low task – low relationship little direction or support Stages of readiness Leadership Style R1 – Unable and Unwilling Telling (Immature) R2 – Unable but Willing Selling R3 – Able but Unwilling Participating R4 – Able and Willing Delegating (Mature) LeadershipTheoriesshari.fkm.utm 8 Chap7Leadership LEADER PARTICIPATION MODEL • Related to leadership behavior and participation in decision making • Model argued that leader behavior must reflect task structure- routine or non-routine • Current model reflects how and with whom decisions are made • The contingencies – decision significance, importance of commitment, leader expertise, likelihood of commitment, group support, group expertise, and team competence – high or low Decide Consult individually Consult Group Facilitate Delegate Leader makes the decision alone and either announces or sells to group Leader presents the problem to group members individually, gets their suggestions and then makes the decision Leader presents the problem to group members in a meeting, gets their suggestions and then makes the decision Leader presents the problem to group in a meeting and, acting as facilitator defines the problems and the boundaries within which a decision must be made. Leader permits the group to make the decision within prescribed limits. Leadership Styles In Vroom Leader Participation Model (Source: V.Vroom, “Leadership and the Decision Making Process”, Organizational Dynamics, Vol 28, No. 4, (2000) p. 84) LeadershipTheoriesshari.fkm.utm 9 Chap7Leadership PATH-GOAL THEORY • Theory states that it is the leaders job to assist his or her followers in attaining their goals and to provide necessary direction and support to ensure that their goals are compatible with overall objectives of group/organization (developed by Robert House) • ‘path-goal’ - effective leaders clarify the path to help followers get from where they are to achieve work goals make journey easier, remove roadblocks or pitfalls • Behavior of leader is motivational to the extent that it: 1) makes the satisfaction of subordinate needs contingent on effective performance LeadershipTheoriesshari.fkm.utm 10 Chap7Leadership 2) provides coaching, guidance, support and rewards needed for effective performance To test these statements, House, R. identified 4 Leadership Behaviors 1. Directive leader - lets subordinates know what’s expected, schedules work to be done, give specific guidance how to accomplish tasks 2. Supportive leader - friendly, shows concern for needs of subordinates 3. Participative leader - consults, uses suggestions before making a decision 4. Achievement - oriented leader - sets challenging goals expects subordinates to perform at highest level House believes that leaders style is flexible; the same leader can display any or all these leadership styles depending on situation LeadershipTheoriesshari.fkm.utm 11 Chap7Leadership CUTTING EDGE APPROACHES TO LEADERSHIP TRANSFORMATIONAL-TRANSACTIONAL • transactional – leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements • transformational – leaders who provide individualized consideration, intellectual stimulation and possess charisma • Jack Welch – General Electric, Richard Branson – Virgin Group LeadershipTheoriesshari.fkm.utm 12 Chap7Leadership CHARISMATIC-VISIONARY LEADERSHIP • Enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways • 5 characteristics 1. have a vision 2. able to articulate vision 3. willing to take risks to achieve vision 4. sensitive to both environment constraints and follower needs 5. exhibit behaviors out of the ordinary • visionary – ability to create and articulate a realistic, credible, and attractive vision of the future that improves upon the present situation LeadershipTheoriesshari.fkm.utm 13 Chap7Leadership CURRENT ISSUES IN LEADERSHIP • Effective leadership being refined as we do continue to study it in organizations • Leaders and power - where do leaders get power – capacity to influence work actions or decisions • 5 sources of power – legitimate, coercive, reward, expert, and referent • Creating a culture of trust • Credibility – honesty (number one characteristic of admired leader) • Follower judge leaders credibility in terms of honesty, competence and ability to inspire • Trust - the belief in integrity, character and ability of a leader LeadershipTheoriesshari.fkm.utm 14 Chap7Leadership How should leaders seek to build trust? • Practice openness • Be fair • Speak your feelings • Tell the truth • Show consistency • Fulfill your promise • Maintain confidentiality • Demonstrate competence LeadershipTheoriesshari.fkm.utm 15 Chap7Leadership Leadership from Islamic Perspective – some points to ponder ‘Everyone of you is a leader, and you will be accountable of who you have led’ Sayings of the Prophet Muhammad pbuh. ‘Tiap kamu adalah pemimpin, dan kamu akan dipertanggungjawabkan dengan apa yang kamu pimpin’ Hadith Nabi saw. Characteristics of a Leader (Prophet) - Truthful (Benar) - Siddiq - Honest (Amanah) - Amanah - Advise and Inform (Menyampai) - Tabligh - Wise (Bijaksana) - Fatonah • To enjoin good and prevent evil doings (menyuruh yang baik dan menghalang yang tidak baik atau mungkar) • Discussions and teamwork (Musyawarah dan Kerjasama) LeadershipTheoriesshari.fkm.utm 16 Chap7Leadership • Fairness and Just (Keadilan dan Kesaksamaan) • According to Islam-human beings are the same in the eyes of ALLah except for the degree/level of ‘faith and belief’ in ALLah (Manusia itu semuanya sama. Yang membezakan hanya tahap iman dan taqwa.) LeadershipTheoriesshari.fkm.utm 17
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