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LEADERSHIP
LEADERSHIP

By
NAYANA. N. P
M.TECH (HRD)
1ST YEAR
What is Leadership…??
2

“Leadership is the ability to persuade others to seek

defined objectives enthusiastically. It is the human
factor which binds a group together and motivates

towards goals.”
3

 Leadership is a process by which an executive can direct, guide and

influence the behavior and work of others towards accomplishment
of specific goals in a given situation. It is the ability of a manager to
induce the subordinates to work with confidence and zeal.
 Leadership is the potential to influence behavior of others. It is also

defined as the capacity to influence a group towards the realization
of a goal. Leaders are required to develop future visions, and to
motivate the organizational members to want to achieve the visions.
Importance of leadership
4

 Initiates action

starts the work by communicating the policies and plans to the subordinates

 Motivation

motivates the employees with economic and non-economic rewards

 Providing guidance

play a guiding role for the subordinates.

 Creating confidence

expressing the work efforts to the subordinates,



giving them guidelines to achieve the goals effectively



hear the employees with regards to their complaints and problems.
5

 Building morale

a morale booster by achieving full co-operation so that they perform with best of
their abilities as they work to achieve goals.

 Builds work environment


human relations should be kept into mind by a leader..
He should treat employees on humanitarian terms.

 Co-ordination

achieved through reconciling personal interests with organizational goals.
Requisites to be present in a good
leader
6

PHYSICAL APPERENCE

KNOWLEDGE OF WORK

VISION AND FORESIGHT

SENSE OF RESPONSIBILITY

INTELLIGENCE

COMMUNICATIVE SKILLS

OBJECTIVE
(unbiased, fair judgment)

SELF CONFIDENCE

HUMANIST

EMPATHY
(stepping into others shoes)
Leadership styles
7

 Autocratic
 Beurocratic
 Democratic
 Coercive
 Transactional
 Transformational
 Laissez- faire
Autocratic
8

 retains power (classical approach)

 is decision-making authority
 does not consult employees for input
 Subordinates expected to obey orders without explanations
 Motivation provided through structured rewards and punishments

 Eg: Adolf Hitler(Austrian-born German politician and the leader of the Nazi

Party)
Bureaucratic
9

 Manager manages “by the book¨
 Everything must be done according to procedure or policy
 Police officer more than leader

 Performing routine tasks
 Need for standards/procedures
 Eg : Max Weber (founding architect of sociology, German

sociologist ,philosopher)
Democratic
10

 Often referred to as participative style

 Keeps employees informed
 Shares decision making and problem solving responsibilities
 Gathers information from staff members before making decisions
 Help employees evaluate their own performance
 Encourages employees to grow on the job and be promoted
 E.g. :Winston Churchill ( British politician who was Prime Minister of the

United Kingdom from 1940 to 1945and 1951 to 1955)
Coercive
11

 Power from a person‟s authority to punish

 Most obvious types of power a leader has.
 Good leaders use coercive power only as a last option
 Used when


In times of crisis



When left with no other choice

e.g. Saddam Husain (fifth president of Iraq)
Transactional
12

 Motivate followers by appealing to their own self-interest
 Focuses on the accomplishment of tasks & good worker

relationships in exchange for desirable rewards.
 Encourage leader to adapt their style and behavior to meet

expectations of followers
 This style is used when:


When there are approaching deadlines that must be met



Relationship is short term

e.g. : Steve Jobs(American entrepreneur, inventor ,chairman, and CEO
of Apple Inc.)
Transformational
13

 Charismatic and visionary
 Inspire followers to transcend their self-interest for the organization
 Inspire followers to think about problems in new or different ways
 Used when:


leaders want members to be an active part of the organization and have ownership to it



When people need to be motivated



E.g.: Abraham Lincoln (

the 16th President of the United States Lincoln led the United States

through its greatest constitutional, military, and moral crisis ,preserving the
Union, abolishing slavery, strengthening the national government and modernizing the
economy.)
Laissez-Faire
14

 Also known as the “hands-off¨ style
 Little or no direction

 Gives followers as much freedom as possible
 Followers must determine goals, make decisions, and resolve problems on

their own.
 Used when:


Employees are highly skilled, experienced, and educated



Employees have pride in their work and the drive to do it successfully on their own



Employees are trustworthy and experienced



E.g. Thomas Jefferson ( American Founding Father, the principal author of
the Declaration of Independence and the third President of the United States (1801–
1809))
Team leadership
15

 A team is a work group that must rely on collaboration if

each member is to experience the optimum success and
achievement.
 A team is a small number of people with complementary

skills

who

are

committed

to

a

common

purpose, performance goals, and approach for which they
are mutually accountable.
 Any team member can perform the critical leadership

functions to assess the current effectiveness of the team
What a Team Leader Must Be & Do
16

Give feedback & resolve conflict
Help to keep team focused on the mission despite
personality conflict, work style difference and
blockages by interpersonal conflict
Build trust and inspire teamwork
Coach team members and group members toward
higher levels of performance

Facilitate and support the team decisions
17

GREAT MAN THEORIES

TRAIT THEORIES

CONTIGENCY THEORIES

SITUATIONAL THEORIES

Theories of leadership

BEHAVIOURAL THEORIES

MANAGEMENT THEORIES

PARTICIPATIVE THEORIES

RELATIONSHIP THEORIES
Trait Approaches To Leadership
18

 Trait approach to leadership - Leader traits are

referred to his or her earned personal characteristics


Physical background



social background



intellectual,



personality



work orientation



interpersonal skills
Trait Theory
19

 Focuses exclusively on the leader not the situation or the follower‟s therefore

more straight forward.
 Concerned with what traits are important and who possesses these traits
 Theory argues that it is the leader and his personality and other characters are

central to leadership
 Concerned with uncovering the particular characteristics that differentiated

leaders from non leaders to find what captured the admiration of other people.
 Leaders are born with special characteristics rather than made

 org can develop methods to identify leaders and find ways to develop and

enhance traits in others
 Also considered to be a source of personal awareness – assess own traits
Kirkpatrick and Locke (1991)
six traits that differ between leaders and non-leaders.
20

Drive

1.
•

This trait includes a group of five
motives, achievement, ambition, energy, tenacity and initiative, that reflect a
high effort level.

Leadership Motivation

2.
•

Leaders must have a strong desire to influence and lead others. They must be
willing to assume responsibility.

Honesty/Integrity

3.
•

Without these virtues, leadership is undermined. Honesty and integrity form
the foundation of a trusting relationship between leaders and followers.
21

Self-confidence

1.
•

A person without confidence will not be able to make the difficult
decisions required

Cognitive Ability

2.
•

Leaders must possess a level of intelligence high enough to process large
amounts of information and formulate strategies and solve problems.

Knowledge of Business

3.
•

In-depth knowledge of the business allows leaders to make well-informed
decisions and understand their consequences.
The strengths of the traits approach
22

 It assumes that it is the leader and his/her personality

that are central to the leadership process.


It supports the general image in the society that leaders are a
special kind of people (gifted people)who can do extraordinary
things.



Trait approach has a long research tradition and a significant body
of research data that support this approach.



The trait approach has given us some benchmarks for what we
need to look for if we want to be leaders.
Criticisms of trait approach
23

 Why do people with leadership traits become leaders in some situations

but not others?
 Why is it that some people embodying leadership qualities never become

leaders?
 The weaknesses of the traits approach as follows:


1) The approach has not fixed a definitive list of leadership traits and the list that has
emerged seems endless.



2) The approach has failed to take situations into account.



3) There has much subjective interpretation of the meaning of the data and data is not
always based on reliable research.



4) The trait approach is weak in describing how leaders' traits affect the outcomes of
groups and teams in organizations.
Contingency Theory of Leadership Effectiveness
24

 Developed by Fred E. Fiedler in 1960‟s

 This theory explains that group performance is a

result of interaction of two factors.


leadership style



situational favorableness.
Situational favorableness
25

Leader member
relations
Task structure
Leader‟s
position &
power

• A leader who is more trusted, who has more confidence and has
more influence with the group is in a more favorable situation
than a leader who is not trusted.

• This refers to the type of task you're doing: clear and structured,

or vague and unstructured.

• This is the amount of power you have to direct the group, and
provide reward or punishment.
• The more power you have, the more favorable your situation.
26

•Step 1 :Identify leadership style using the model.
• Fiedler believed that leadership style is fixed,
and it can be measured using a scale he developed
called Least-Preferred Co-Worker (LPC)
Scale
•Step 2 : Think about the person who you've least
enjoyed working with.

•Step 3 : Add up your scores and rate your leader.
•If your total score is high, you're likely to be
a relationship-orientated leader.
• If your total score is low, you're more likely
to be task-orientated leader.
Least-Preferred Co-Worker (LPC) Scale
27

low LPC-leaders

high-LPC leaders

 LPC‟s are low

 LPC‟s are high.



task-oriented leaders

 low LPCs are very effective at

completing tasks.
 They're quick to organize a group

to get tasks and projects done.
 Relationship-building is a low

priority.



relationship-oriented leaders

 High LPCs focus more on

personal connections, and they're
good at avoiding and managing
conflict.
 They're better able to make

complex decisions.
Criticisms of the Model
28

 One of the biggest is lack of flexibility.


Fiedler believed that because our natural leadership style is fixed, the
most effective way to handle situations is to change the leader.

 Least-Preferred Co-Worker Scale – if you fall near the middle of the

scoring range, then it could be unclear which style of leader you are.
 Even under the best circumstances, the LPC scale only has about a 50

percent reliable variance
Tanhenbaum &schmidt leadership continnum
29

 originally written in 1958 and was later updated in the

year 1973.
 Work suggests a continuum of possible leadership

behavior available to a manager.
 The continuum presents a range of action related to the

degree of authority used by the manager and to the area
of freedom available to non-managers in arriving at
decisions.
30

 A broad range of leadership styles have been

depicted on the continuum between two extremes
1.

of autocratic(control is maintained by a manager )

2.

free rein(release of control)

 can be related to McGregor‟s supposition of Theory X

and Theory Y.
 Boss-centered leadership is towards theory X and

subordinate-centered leadership is towards theory Y.
31
A manager is characterized according to degree of control that is maintained by
him. According to this approach, four main styles of leadership have been
identified:
32

TELLS

SELLS

Managerial
styles

CONSULTS

JOINS
1. The Manager decides and announces the
decision.
33

 The manager reviews options in light of

aims, issues, priorities, timescale, etc., then decides
the action and informs the team of the decision.
 The team plays no active part in making the decision.
 purely task-based decision, which is generally a

characteristic of X-Theory management style.
2. The manager decides and then 'sells' the
decision to the group.
34

 The manager makes the decision, and then explains

reasons for the decision to the team, particularly the
positive benefits that the team will enjoy from the

decision.
 In so doing the manager is seen by the team to


recognize the team's importance



have some concern for the team.
3. The manager presents the decision with
background ideas and invites questions.
35

 The manager presents the decision along with some of the background which

led to the decision.
 The team is invited to ask questions and discuss with the manager the

rationale behind the decision, which enables the team to understand and
accept or agree with the decision
 More participative and involving approach
 enables the team to appreciate the issues and reasons for the decision, and the

implications of all the options.
 This will have a more motivational approach than 1 or 2 because of the higher

level of team involvement and discussion.
4. The manager suggests a provisional decision and
invites discussion about it.
36

 The manager discusses and reviews the provisional decision with the

team
 on the basis of this manager will take on board the views and then

finally decide.
 Enables the team to have some real influence over the shape of the

manager's final decision.
 Acknowledges that the team has something to contribute to the

decision-making process, which is more involving and therefore
motivating than the previous level.
5. The manager presents the situation or
problem, gets suggestions, then decides.
37

 The manager presents the situation, and maybe some options, to

the team.
 Team is encouraged and expected to offer ideas and additional

options, and discuss implications of each possible course of action.
 The manager then decides which option to take
 The team has more detailed knowledge or experience of the issues

than the manager.
 high-involvement and high-influence for the team -provides more

motivation and freedom than any previous level.
6. The manager explains the situation, defines the
parameters and asks the team to decide.
38

 The manager has effectively delegated responsibility for the decision

to the team
 The manager may or may not choose to be a part of the team which

decides.
 Gives a huge responsibility to the team
 Manager can control the risk and outcomes to an extent, according to

the constraints that he stipulates.
 This level is more motivational than any previous but requires a

mature team for any serious situation or problem.
7. The manager allows the team to identify the problem, develop
the options, and decide on the action, within the manager's
received limits.
39

 an extreme level of freedom, whereby the team is effectively doing what the

manager did in level 1.
 The team is given responsibility for


identifying and analyzing the situation or problem



the process for resolving it



developing and assessing options;



evaluating implications,



and then deciding on and implementing a course of action.

 The manager may or may not be part of the team, and if so then he/she has no

more authority than anyone else in the team.
 This level is potentially the most motivational of all, but also potentially the most

disastrous.
Transactional leadership
40

 first described by Max Weber in 1947 and then by

Bernard Bass in 1981.
 most often used by the managers.
 It focuses on the basic management process of

controlling, organizing, and short-term planning.
 The famous examples of leaders who have used

transactional technique include McCarthy
41

 The power of transactional leaders comes from their formal

authority and responsibility in the organization.
 main goal of the follower is to obey the instructions of the

leader.
 can also be mentioned as a „telling style‟.

 The leader believes in motivating through a system of rewards

and punishment.


If a subordinate does what is desired, a reward will follow



if he does not go as per the wishes of the leader, a punishment will follow.

 Here, the exchange between leader and follower takes place to

achieve routine performance goals.
exchanges involve four dimensions


42

Contingent Rewards:


Transactional

leaders

link

the

goal

to

rewards.

They

set

„specific, measurable, attainable, realistic, and timely‟ goals for their
subordinates.


Active Management by Exception:


actively monitor the work of their subordinates, watch for deviations
from rules and standards and taking corrective action to prevent mistakes.



Passive Management by Exception:


intervene only when standards are not met or when the performance is
not as per the expectations. may even use punishment



Laissez-faire:


The leader provides an environment where the subordinates get many
43

 Assumptions of Transactional Theory


Employees are motivated by reward and punishment.



The subordinates have to obey the orders of the superior.



The subordinates are not self-motivated.



They have to be closely monitored and controlled to get the
work done from them.
Implications of Transactional Theory
44


overemphasize detailed and short-term goals, and standard rules and
procedures.



do not make an effort to enhance followers‟ creativity and generation of
new ideas.



may work well where the organizational problems are simple and clearly
defined.



found to be quite effective in guiding efficiency decisions which are
aimed at cutting costs and improving productivity.



tend to be highly directive and action oriented and their relationship
with the followers tends to be rigid and not based on emotional bonds.
45

 Conclusion


The transactional style of leadership is viewed as
insufficient, but not bad, in developing the maximum
leadership potential.



care should be taken by leaders not to practice it
exclusively, otherwise it will lead to the creation of an
environment permeated by position, power, perks, and

politics.
Transformational theory
46

 business leaders must be able to inspire organizational

members to go beyond their task requirements –thus
came transformational theory.
 may be found at all levels of the organization: teams,

departments, divisions, and organization as a whole.
 Such leaders are visionary, inspiring, daring, risk-takers,

and thoughtful thinkers.
 They have a charismatic appeal.
For bringing major changes, transformational leaders must
exhibit the following four factors:
47
 Inspirational Motivation:

48



promotion of consistent vision, mission, and a set of values to the members.



Their vision is so compelling that they know what they want from every
interaction.



work enthusiastically and optimistically to foster the spirit of teamwork and
commitment.

 Intellectual Stimulation:


leaders encourage their followers to be innovative and creative.



encourage new ideas from their followers and never criticize them publicly for the
mistakes committed by them.



no hesitation in discarding an old practice set by them if it is found ineffective.
 Idealized Influence:


49

believe that a leader can influence followers only when he practices what he

preaches.


typically place their followers needs over their own, sacrifice their personal
gains for them, and demonstrate high standards of ethical conduct.



power by such leaders is aimed at influencing them to strive for the common
goals of the organization.

 Individualized Consideration:


Leaders act as mentors to their followers and reward them for creativity and
innovation.



The followers are treated differently according to their talents and knowledge.
Criticisms of Transformational Leadership
Theory
50


Transformational leadership makes use of impression
management and therefore lends itself to amoral self
promotion by leaders



The theory is very difficult to be trained or taught because it is

a combination of many leadership theories.


Followers might be manipulated by leaders and there are
chances that they lose more than they gain.
51
52

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Presentation1 new

  • 2. What is Leadership…?? 2 “Leadership is the ability to persuade others to seek defined objectives enthusiastically. It is the human factor which binds a group together and motivates towards goals.”
  • 3. 3  Leadership is a process by which an executive can direct, guide and influence the behavior and work of others towards accomplishment of specific goals in a given situation. It is the ability of a manager to induce the subordinates to work with confidence and zeal.  Leadership is the potential to influence behavior of others. It is also defined as the capacity to influence a group towards the realization of a goal. Leaders are required to develop future visions, and to motivate the organizational members to want to achieve the visions.
  • 4. Importance of leadership 4  Initiates action starts the work by communicating the policies and plans to the subordinates  Motivation motivates the employees with economic and non-economic rewards  Providing guidance play a guiding role for the subordinates.  Creating confidence expressing the work efforts to the subordinates,  giving them guidelines to achieve the goals effectively  hear the employees with regards to their complaints and problems.
  • 5. 5  Building morale a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals.  Builds work environment  human relations should be kept into mind by a leader.. He should treat employees on humanitarian terms.  Co-ordination achieved through reconciling personal interests with organizational goals.
  • 6. Requisites to be present in a good leader 6 PHYSICAL APPERENCE KNOWLEDGE OF WORK VISION AND FORESIGHT SENSE OF RESPONSIBILITY INTELLIGENCE COMMUNICATIVE SKILLS OBJECTIVE (unbiased, fair judgment) SELF CONFIDENCE HUMANIST EMPATHY (stepping into others shoes)
  • 7. Leadership styles 7  Autocratic  Beurocratic  Democratic  Coercive  Transactional  Transformational  Laissez- faire
  • 8. Autocratic 8  retains power (classical approach)  is decision-making authority  does not consult employees for input  Subordinates expected to obey orders without explanations  Motivation provided through structured rewards and punishments  Eg: Adolf Hitler(Austrian-born German politician and the leader of the Nazi Party)
  • 9. Bureaucratic 9  Manager manages “by the book¨  Everything must be done according to procedure or policy  Police officer more than leader  Performing routine tasks  Need for standards/procedures  Eg : Max Weber (founding architect of sociology, German sociologist ,philosopher)
  • 10. Democratic 10  Often referred to as participative style  Keeps employees informed  Shares decision making and problem solving responsibilities  Gathers information from staff members before making decisions  Help employees evaluate their own performance  Encourages employees to grow on the job and be promoted  E.g. :Winston Churchill ( British politician who was Prime Minister of the United Kingdom from 1940 to 1945and 1951 to 1955)
  • 11. Coercive 11  Power from a person‟s authority to punish  Most obvious types of power a leader has.  Good leaders use coercive power only as a last option  Used when  In times of crisis  When left with no other choice e.g. Saddam Husain (fifth president of Iraq)
  • 12. Transactional 12  Motivate followers by appealing to their own self-interest  Focuses on the accomplishment of tasks & good worker relationships in exchange for desirable rewards.  Encourage leader to adapt their style and behavior to meet expectations of followers  This style is used when:  When there are approaching deadlines that must be met  Relationship is short term e.g. : Steve Jobs(American entrepreneur, inventor ,chairman, and CEO of Apple Inc.)
  • 13. Transformational 13  Charismatic and visionary  Inspire followers to transcend their self-interest for the organization  Inspire followers to think about problems in new or different ways  Used when:  leaders want members to be an active part of the organization and have ownership to it  When people need to be motivated  E.g.: Abraham Lincoln ( the 16th President of the United States Lincoln led the United States through its greatest constitutional, military, and moral crisis ,preserving the Union, abolishing slavery, strengthening the national government and modernizing the economy.)
  • 14. Laissez-Faire 14  Also known as the “hands-off¨ style  Little or no direction  Gives followers as much freedom as possible  Followers must determine goals, make decisions, and resolve problems on their own.  Used when:  Employees are highly skilled, experienced, and educated  Employees have pride in their work and the drive to do it successfully on their own  Employees are trustworthy and experienced  E.g. Thomas Jefferson ( American Founding Father, the principal author of the Declaration of Independence and the third President of the United States (1801– 1809))
  • 15. Team leadership 15  A team is a work group that must rely on collaboration if each member is to experience the optimum success and achievement.  A team is a small number of people with complementary skills who are committed to a common purpose, performance goals, and approach for which they are mutually accountable.  Any team member can perform the critical leadership functions to assess the current effectiveness of the team
  • 16. What a Team Leader Must Be & Do 16 Give feedback & resolve conflict Help to keep team focused on the mission despite personality conflict, work style difference and blockages by interpersonal conflict Build trust and inspire teamwork Coach team members and group members toward higher levels of performance Facilitate and support the team decisions
  • 17. 17 GREAT MAN THEORIES TRAIT THEORIES CONTIGENCY THEORIES SITUATIONAL THEORIES Theories of leadership BEHAVIOURAL THEORIES MANAGEMENT THEORIES PARTICIPATIVE THEORIES RELATIONSHIP THEORIES
  • 18. Trait Approaches To Leadership 18  Trait approach to leadership - Leader traits are referred to his or her earned personal characteristics  Physical background  social background  intellectual,  personality  work orientation  interpersonal skills
  • 19. Trait Theory 19  Focuses exclusively on the leader not the situation or the follower‟s therefore more straight forward.  Concerned with what traits are important and who possesses these traits  Theory argues that it is the leader and his personality and other characters are central to leadership  Concerned with uncovering the particular characteristics that differentiated leaders from non leaders to find what captured the admiration of other people.  Leaders are born with special characteristics rather than made  org can develop methods to identify leaders and find ways to develop and enhance traits in others  Also considered to be a source of personal awareness – assess own traits
  • 20. Kirkpatrick and Locke (1991) six traits that differ between leaders and non-leaders. 20 Drive 1. • This trait includes a group of five motives, achievement, ambition, energy, tenacity and initiative, that reflect a high effort level. Leadership Motivation 2. • Leaders must have a strong desire to influence and lead others. They must be willing to assume responsibility. Honesty/Integrity 3. • Without these virtues, leadership is undermined. Honesty and integrity form the foundation of a trusting relationship between leaders and followers.
  • 21. 21 Self-confidence 1. • A person without confidence will not be able to make the difficult decisions required Cognitive Ability 2. • Leaders must possess a level of intelligence high enough to process large amounts of information and formulate strategies and solve problems. Knowledge of Business 3. • In-depth knowledge of the business allows leaders to make well-informed decisions and understand their consequences.
  • 22. The strengths of the traits approach 22  It assumes that it is the leader and his/her personality that are central to the leadership process.  It supports the general image in the society that leaders are a special kind of people (gifted people)who can do extraordinary things.  Trait approach has a long research tradition and a significant body of research data that support this approach.  The trait approach has given us some benchmarks for what we need to look for if we want to be leaders.
  • 23. Criticisms of trait approach 23  Why do people with leadership traits become leaders in some situations but not others?  Why is it that some people embodying leadership qualities never become leaders?  The weaknesses of the traits approach as follows:  1) The approach has not fixed a definitive list of leadership traits and the list that has emerged seems endless.  2) The approach has failed to take situations into account.  3) There has much subjective interpretation of the meaning of the data and data is not always based on reliable research.  4) The trait approach is weak in describing how leaders' traits affect the outcomes of groups and teams in organizations.
  • 24. Contingency Theory of Leadership Effectiveness 24  Developed by Fred E. Fiedler in 1960‟s  This theory explains that group performance is a result of interaction of two factors.  leadership style  situational favorableness.
  • 25. Situational favorableness 25 Leader member relations Task structure Leader‟s position & power • A leader who is more trusted, who has more confidence and has more influence with the group is in a more favorable situation than a leader who is not trusted. • This refers to the type of task you're doing: clear and structured, or vague and unstructured. • This is the amount of power you have to direct the group, and provide reward or punishment. • The more power you have, the more favorable your situation.
  • 26. 26 •Step 1 :Identify leadership style using the model. • Fiedler believed that leadership style is fixed, and it can be measured using a scale he developed called Least-Preferred Co-Worker (LPC) Scale •Step 2 : Think about the person who you've least enjoyed working with. •Step 3 : Add up your scores and rate your leader. •If your total score is high, you're likely to be a relationship-orientated leader. • If your total score is low, you're more likely to be task-orientated leader.
  • 27. Least-Preferred Co-Worker (LPC) Scale 27 low LPC-leaders high-LPC leaders  LPC‟s are low  LPC‟s are high.  task-oriented leaders  low LPCs are very effective at completing tasks.  They're quick to organize a group to get tasks and projects done.  Relationship-building is a low priority.  relationship-oriented leaders  High LPCs focus more on personal connections, and they're good at avoiding and managing conflict.  They're better able to make complex decisions.
  • 28. Criticisms of the Model 28  One of the biggest is lack of flexibility.  Fiedler believed that because our natural leadership style is fixed, the most effective way to handle situations is to change the leader.  Least-Preferred Co-Worker Scale – if you fall near the middle of the scoring range, then it could be unclear which style of leader you are.  Even under the best circumstances, the LPC scale only has about a 50 percent reliable variance
  • 29. Tanhenbaum &schmidt leadership continnum 29  originally written in 1958 and was later updated in the year 1973.  Work suggests a continuum of possible leadership behavior available to a manager.  The continuum presents a range of action related to the degree of authority used by the manager and to the area of freedom available to non-managers in arriving at decisions.
  • 30. 30  A broad range of leadership styles have been depicted on the continuum between two extremes 1. of autocratic(control is maintained by a manager ) 2. free rein(release of control)  can be related to McGregor‟s supposition of Theory X and Theory Y.  Boss-centered leadership is towards theory X and subordinate-centered leadership is towards theory Y.
  • 31. 31
  • 32. A manager is characterized according to degree of control that is maintained by him. According to this approach, four main styles of leadership have been identified: 32 TELLS SELLS Managerial styles CONSULTS JOINS
  • 33. 1. The Manager decides and announces the decision. 33  The manager reviews options in light of aims, issues, priorities, timescale, etc., then decides the action and informs the team of the decision.  The team plays no active part in making the decision.  purely task-based decision, which is generally a characteristic of X-Theory management style.
  • 34. 2. The manager decides and then 'sells' the decision to the group. 34  The manager makes the decision, and then explains reasons for the decision to the team, particularly the positive benefits that the team will enjoy from the decision.  In so doing the manager is seen by the team to  recognize the team's importance  have some concern for the team.
  • 35. 3. The manager presents the decision with background ideas and invites questions. 35  The manager presents the decision along with some of the background which led to the decision.  The team is invited to ask questions and discuss with the manager the rationale behind the decision, which enables the team to understand and accept or agree with the decision  More participative and involving approach  enables the team to appreciate the issues and reasons for the decision, and the implications of all the options.  This will have a more motivational approach than 1 or 2 because of the higher level of team involvement and discussion.
  • 36. 4. The manager suggests a provisional decision and invites discussion about it. 36  The manager discusses and reviews the provisional decision with the team  on the basis of this manager will take on board the views and then finally decide.  Enables the team to have some real influence over the shape of the manager's final decision.  Acknowledges that the team has something to contribute to the decision-making process, which is more involving and therefore motivating than the previous level.
  • 37. 5. The manager presents the situation or problem, gets suggestions, then decides. 37  The manager presents the situation, and maybe some options, to the team.  Team is encouraged and expected to offer ideas and additional options, and discuss implications of each possible course of action.  The manager then decides which option to take  The team has more detailed knowledge or experience of the issues than the manager.  high-involvement and high-influence for the team -provides more motivation and freedom than any previous level.
  • 38. 6. The manager explains the situation, defines the parameters and asks the team to decide. 38  The manager has effectively delegated responsibility for the decision to the team  The manager may or may not choose to be a part of the team which decides.  Gives a huge responsibility to the team  Manager can control the risk and outcomes to an extent, according to the constraints that he stipulates.  This level is more motivational than any previous but requires a mature team for any serious situation or problem.
  • 39. 7. The manager allows the team to identify the problem, develop the options, and decide on the action, within the manager's received limits. 39  an extreme level of freedom, whereby the team is effectively doing what the manager did in level 1.  The team is given responsibility for  identifying and analyzing the situation or problem  the process for resolving it  developing and assessing options;  evaluating implications,  and then deciding on and implementing a course of action.  The manager may or may not be part of the team, and if so then he/she has no more authority than anyone else in the team.  This level is potentially the most motivational of all, but also potentially the most disastrous.
  • 40. Transactional leadership 40  first described by Max Weber in 1947 and then by Bernard Bass in 1981.  most often used by the managers.  It focuses on the basic management process of controlling, organizing, and short-term planning.  The famous examples of leaders who have used transactional technique include McCarthy
  • 41. 41  The power of transactional leaders comes from their formal authority and responsibility in the organization.  main goal of the follower is to obey the instructions of the leader.  can also be mentioned as a „telling style‟.  The leader believes in motivating through a system of rewards and punishment.  If a subordinate does what is desired, a reward will follow  if he does not go as per the wishes of the leader, a punishment will follow.  Here, the exchange between leader and follower takes place to achieve routine performance goals.
  • 42. exchanges involve four dimensions  42 Contingent Rewards:  Transactional leaders link the goal to rewards. They set „specific, measurable, attainable, realistic, and timely‟ goals for their subordinates.  Active Management by Exception:  actively monitor the work of their subordinates, watch for deviations from rules and standards and taking corrective action to prevent mistakes.  Passive Management by Exception:  intervene only when standards are not met or when the performance is not as per the expectations. may even use punishment  Laissez-faire:  The leader provides an environment where the subordinates get many
  • 43. 43  Assumptions of Transactional Theory  Employees are motivated by reward and punishment.  The subordinates have to obey the orders of the superior.  The subordinates are not self-motivated.  They have to be closely monitored and controlled to get the work done from them.
  • 44. Implications of Transactional Theory 44  overemphasize detailed and short-term goals, and standard rules and procedures.  do not make an effort to enhance followers‟ creativity and generation of new ideas.  may work well where the organizational problems are simple and clearly defined.  found to be quite effective in guiding efficiency decisions which are aimed at cutting costs and improving productivity.  tend to be highly directive and action oriented and their relationship with the followers tends to be rigid and not based on emotional bonds.
  • 45. 45  Conclusion  The transactional style of leadership is viewed as insufficient, but not bad, in developing the maximum leadership potential.  care should be taken by leaders not to practice it exclusively, otherwise it will lead to the creation of an environment permeated by position, power, perks, and politics.
  • 46. Transformational theory 46  business leaders must be able to inspire organizational members to go beyond their task requirements –thus came transformational theory.  may be found at all levels of the organization: teams, departments, divisions, and organization as a whole.  Such leaders are visionary, inspiring, daring, risk-takers, and thoughtful thinkers.  They have a charismatic appeal.
  • 47. For bringing major changes, transformational leaders must exhibit the following four factors: 47
  • 48.  Inspirational Motivation: 48  promotion of consistent vision, mission, and a set of values to the members.  Their vision is so compelling that they know what they want from every interaction.  work enthusiastically and optimistically to foster the spirit of teamwork and commitment.  Intellectual Stimulation:  leaders encourage their followers to be innovative and creative.  encourage new ideas from their followers and never criticize them publicly for the mistakes committed by them.  no hesitation in discarding an old practice set by them if it is found ineffective.
  • 49.  Idealized Influence:  49 believe that a leader can influence followers only when he practices what he preaches.  typically place their followers needs over their own, sacrifice their personal gains for them, and demonstrate high standards of ethical conduct.  power by such leaders is aimed at influencing them to strive for the common goals of the organization.  Individualized Consideration:  Leaders act as mentors to their followers and reward them for creativity and innovation.  The followers are treated differently according to their talents and knowledge.
  • 50. Criticisms of Transformational Leadership Theory 50  Transformational leadership makes use of impression management and therefore lends itself to amoral self promotion by leaders  The theory is very difficult to be trained or taught because it is a combination of many leadership theories.  Followers might be manipulated by leaders and there are chances that they lose more than they gain.
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  • 52. 52