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Leadership
Different meanings of leadership

• Getting others to follow
• The use of authority in decision-
  making
• A personal characteristic
• An ability to achieve effective
  performance in others
A general interpretation of leadership


       A relationship through
          which one person
      influences the behaviour
      or actions of other people
Source: Mullins (The Nature of Leadership)
Leadership perspectives

• Traditional view
  – Command & Control
  – Decision-making
• Modern view
  – Inspiration
  – Creating a vision
  – Building effective
    teams
Importance of leadership in modern business

 • Changing organisational structures
   – Flatter + greater delegation
   – Teamwork + focus on quality assurance
   – Coaching, support & empowerment
 • Rapid environmental change
   – Change is becoming a constant feature of
     business life
   – Soft skills of leadership & management
     increasingly important
The role of strategic leadership

• Strategic leaders are the people who
  influence or control the corporate
  strategy of a business
• Often personally identified with the
  strategy
• Occurs both in small firms (e.g. the
  founder) and large corporates
How strategic leadership is demonstrated
Where leaders take                                      Where leaders set
direct control                                          the vision and core
                                                        beliefs

                        Leadership as   Leadership
                         command         as vision


                                        Leadership as
                        Leadership as
                                         decision-
                         symbolic
Where the leader is
                                          making         Where the leader
the embodiment of                                        weighs up the
the strategy, but not                                    options and
involved day-to-day                                      decides
E.g. leadership as command & vision
  I believe we have lacked
  accountability and
  leadership to align and
  direct the company
  through these disruptive
  times. We had a series of
  misses. We haven’t been
  delivering innovation fast
  enough. We’re not
  collaborating internally.
  Nokia, our platform is
  burning.                     Stephen Elop
                                 CEO, Nokia
E.g. leadership as symbolic
Leadership or Management?

    Leaders              Managers
  Inspire people        Enact the plan
Build relationships   Use their authority
    Take risks          Manage risks
 Have followers       Have subordinates


  In reality, both are closely linked
What is a leadership style?

The way that the functions
 of leadership are carried
           out
  The way that a leader
         behaves
Everyone has their own style
Broad classifications of leadership style


   Authoritarian Paternalistic


    Democratic        Laissez-faire
Authoritarian
• Focus of power is with the
  manager
• Communication is top-down &
  one-way
• Formal systems of command
  & control
• Use of rewards & penalties
• Very little delegation
• McGregor Theory X approach
Paternalistic
• Leader decides what is best for
  employees
• Links with Mayo – addressing employee
  needs
• Akin to a parent/child relationship
• Still little delegation
• A softer form of authoritarian
  leadership
Democratic
• Focus of power is more with the group as a
  whole
• Leadership functions are shared within the
  group
• Employees have greater involvement in
  decision-making
• Emphasis on delegation and consultation
• A trade-off between speed of decision-
  making and better motivation and morale?
Laissez-faire
• Leader has little input into day-to-day
  decision-making
• Conscious decision to delegate power
• Managers / employees have freedom to
  do what they think is best
• Effective when staff are ready and
  willing to take on responsibility
• Not the same as abdication
Why move away from autocratic leadership?

•   Changes in society’s values
•   Better educated workforce
•   Focus on need for soft HR skills
•   Changing workplace organisation
•   Greater workplace legislation
•   Pressure for greater employee
    involvement
McGregor Theory X & Y
   Grouped Managers into Two Types

     Theory X                   Theory Y
     Managers                   Managers
 Average worker is lazy     Most people enjoy work
    and dislikes work          Workers will take
   Workers need to be          responsibility and
  controlled & directed      organised themselves
Centralised organisation    Decision-making can be
and exercise of authority          delegated
Tannenbaum and Schmidt (1)
• A “continuum” of leadership behaviour
• Continuum represents a range of action
  related to the:
  – Degree of authority used by the manager
  – Area of freedom available to non-managers
• Links with Theory X (boss-centred
  leadership) & Theory Y (subordinated-
  centred leadership)
Tannenbaum and Schmidt (2)
Four Main Styles of Leadership
Tells        Manager identifies problems, makes decision and
             announces to subordinates; expects implementation
Sells        Manager still makes decision, but attempts to
             overcome resistance through discussion & persuasion
Consults     Manager identifies problem and presents it to the
             group. Listens to advice and suggestions before
             making a decision
Joins        Manager defines the problem and passes on the
             solving & decision-making to the group (which
             manager is part of)
Factors affecting leadership style

• Personal value           • Type of organisation
  systems                    (size, structure)
• Manager’s experience     • Effectiveness of teams
• Confidence in              and groups
  subordinates             • Skills and experience
• Feelings of security       of subordinates
• Nature of the business   • Pressure (time, costs)
  problems
Which leadership style is best?
• Many alternative forms & styles
• Right leader for the right situation
  – Autocratic makes more sense when business is
    in trouble (e.g. rapid turnaround)
  – Autocratic would be inappropriate where
    performance highly dependent on effective
    team-working & decentralised operation
  – Stage of business: start-up v established &
    complex
Five essential qualities of a leader

    1 Courage
    2 Confidence
    3 Concentration
    4 Passion
    5 Values
The six tasks of leaders
• Be clear about what change is required
• Turn ideas into action points and motivate
  others to act on them
• Win commitment based on honest,
  realistic, two-way discussion
• Create a climate of learning, so people
  know it is safe to make mistakes
• Keep going – persistence is vital
• Learn from experiences and mistakes
Leadership tasks of the MD

• Create the vision, based on an
  understanding of SWOT
• Form the team and a structure that
  will help achieve business goals
• Decide key business and personnel
  policies
• Manage rewards and discipline
Leadership and business change

 Successful management of
  change requires positive
action from top management
 and a leadership style that
   gains a commitment to
            change
“Change leaders”
 Effective change management involves…

• Effective, open communication of
  the reasons for change
• Championing innovation and
  creativity as a response to change
• Setting a good personal example
Leadership quotes (1)


   Management is
 doing things right;
 leadership is doing
   the right things

Peter Drucker
Leadership quotes (2)

"How do you know you have
  won? When the energy is
 coming the other way and
when your people are visibly
growing individually and as a
          group."

 Sir John Harvey-Jones
Leadership quotes (3)

""Management is efficiency
  in climbing the ladder of
     success; leadership
  determines whether the
ladder is leaning against the
         right wall."

Stephen R Covey
Keep up-to-date with business
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Business Leadership

  • 2. Different meanings of leadership • Getting others to follow • The use of authority in decision- making • A personal characteristic • An ability to achieve effective performance in others
  • 3. A general interpretation of leadership A relationship through which one person influences the behaviour or actions of other people Source: Mullins (The Nature of Leadership)
  • 4. Leadership perspectives • Traditional view – Command & Control – Decision-making • Modern view – Inspiration – Creating a vision – Building effective teams
  • 5. Importance of leadership in modern business • Changing organisational structures – Flatter + greater delegation – Teamwork + focus on quality assurance – Coaching, support & empowerment • Rapid environmental change – Change is becoming a constant feature of business life – Soft skills of leadership & management increasingly important
  • 6. The role of strategic leadership • Strategic leaders are the people who influence or control the corporate strategy of a business • Often personally identified with the strategy • Occurs both in small firms (e.g. the founder) and large corporates
  • 7. How strategic leadership is demonstrated Where leaders take Where leaders set direct control the vision and core beliefs Leadership as Leadership command as vision Leadership as Leadership as decision- symbolic Where the leader is making Where the leader the embodiment of weighs up the the strategy, but not options and involved day-to-day decides
  • 8. E.g. leadership as command & vision I believe we have lacked accountability and leadership to align and direct the company through these disruptive times. We had a series of misses. We haven’t been delivering innovation fast enough. We’re not collaborating internally. Nokia, our platform is burning. Stephen Elop CEO, Nokia
  • 10. Leadership or Management? Leaders Managers Inspire people Enact the plan Build relationships Use their authority Take risks Manage risks Have followers Have subordinates In reality, both are closely linked
  • 11. What is a leadership style? The way that the functions of leadership are carried out The way that a leader behaves
  • 12. Everyone has their own style
  • 13. Broad classifications of leadership style Authoritarian Paternalistic Democratic Laissez-faire
  • 14. Authoritarian • Focus of power is with the manager • Communication is top-down & one-way • Formal systems of command & control • Use of rewards & penalties • Very little delegation • McGregor Theory X approach
  • 15. Paternalistic • Leader decides what is best for employees • Links with Mayo – addressing employee needs • Akin to a parent/child relationship • Still little delegation • A softer form of authoritarian leadership
  • 16. Democratic • Focus of power is more with the group as a whole • Leadership functions are shared within the group • Employees have greater involvement in decision-making • Emphasis on delegation and consultation • A trade-off between speed of decision- making and better motivation and morale?
  • 17. Laissez-faire • Leader has little input into day-to-day decision-making • Conscious decision to delegate power • Managers / employees have freedom to do what they think is best • Effective when staff are ready and willing to take on responsibility • Not the same as abdication
  • 18. Why move away from autocratic leadership? • Changes in society’s values • Better educated workforce • Focus on need for soft HR skills • Changing workplace organisation • Greater workplace legislation • Pressure for greater employee involvement
  • 19. McGregor Theory X & Y Grouped Managers into Two Types Theory X Theory Y Managers Managers Average worker is lazy Most people enjoy work and dislikes work Workers will take Workers need to be responsibility and controlled & directed organised themselves Centralised organisation Decision-making can be and exercise of authority delegated
  • 20. Tannenbaum and Schmidt (1) • A “continuum” of leadership behaviour • Continuum represents a range of action related to the: – Degree of authority used by the manager – Area of freedom available to non-managers • Links with Theory X (boss-centred leadership) & Theory Y (subordinated- centred leadership)
  • 21. Tannenbaum and Schmidt (2) Four Main Styles of Leadership Tells Manager identifies problems, makes decision and announces to subordinates; expects implementation Sells Manager still makes decision, but attempts to overcome resistance through discussion & persuasion Consults Manager identifies problem and presents it to the group. Listens to advice and suggestions before making a decision Joins Manager defines the problem and passes on the solving & decision-making to the group (which manager is part of)
  • 22. Factors affecting leadership style • Personal value • Type of organisation systems (size, structure) • Manager’s experience • Effectiveness of teams • Confidence in and groups subordinates • Skills and experience • Feelings of security of subordinates • Nature of the business • Pressure (time, costs) problems
  • 23. Which leadership style is best? • Many alternative forms & styles • Right leader for the right situation – Autocratic makes more sense when business is in trouble (e.g. rapid turnaround) – Autocratic would be inappropriate where performance highly dependent on effective team-working & decentralised operation – Stage of business: start-up v established & complex
  • 24. Five essential qualities of a leader 1 Courage 2 Confidence 3 Concentration 4 Passion 5 Values
  • 25. The six tasks of leaders • Be clear about what change is required • Turn ideas into action points and motivate others to act on them • Win commitment based on honest, realistic, two-way discussion • Create a climate of learning, so people know it is safe to make mistakes • Keep going – persistence is vital • Learn from experiences and mistakes
  • 26. Leadership tasks of the MD • Create the vision, based on an understanding of SWOT • Form the team and a structure that will help achieve business goals • Decide key business and personnel policies • Manage rewards and discipline
  • 27. Leadership and business change Successful management of change requires positive action from top management and a leadership style that gains a commitment to change
  • 28. “Change leaders” Effective change management involves… • Effective, open communication of the reasons for change • Championing innovation and creativity as a response to change • Setting a good personal example
  • 29. Leadership quotes (1) Management is doing things right; leadership is doing the right things Peter Drucker
  • 30. Leadership quotes (2) "How do you know you have won? When the energy is coming the other way and when your people are visibly growing individually and as a group." Sir John Harvey-Jones
  • 31. Leadership quotes (3) ""Management is efficiency in climbing the ladder of success; leadership determines whether the ladder is leaning against the right wall." Stephen R Covey
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