Leadership-401 CASE for Paula Hog

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DYNAMICS OF MANAGERIAL LEADERSHIP

LEARNING OBJECTIVES

After going through this chapter, you will able to understand the following issues:  What is leadership? Describe the leadership styles and theories in leadership.  What are leadership skills?  Explain the leadership models.  Describe the four framework approach.  Understand the transactional leadership in an organization.

 “The very essence of leadership is you have to have a vision. It’s got to be a vision you articulate forcefully on every occasion. You can’t blow an uncertain trumpet.”

—Rev. Theodore Hesburgh, President Emeritus, Notre Dame University

 “Leadership and learning are indispensable to each other.” —John, F. Kennedy, November 22, 1963

 “The speed of the leader determines the rate of the pack.” It is the capacity to develop and improve their skills that distinguishes leaders from their followers.”

—Warren Bennis and Bert Nanus  “Leadership: the art of getting someone else to do something you want done because he

wants to do it.” —Dwight, D. Eisenhower  “Leaders have followers.” —Bill Gore, Founder, W. L. Gore and Associates

 “You can manage what you cannot understand, but you cannot lead it.” —Myron Tribus

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198 Organizational Behavior

 “The only definition of a leader is someone who has followers.” —Peter Drucker  “Leadership is influence - nothing more, nothing less.” —John, C. Maxwell  “Leadership is a function of knowing yourself, having a vision that is well communicated,

building trust among colleagues, and taking effective action to realize your own leadership potential.” —Bennis

 “Leadership is the process of persuasion and example by which an individual (or leadership team) induces a group to take action that is in accord with the leader’s purpose, or the shared purposes of all.” —John, W. Gardner

INTRODUCTION

In this chapter we shall discuss about Definitions and meaning of leadership, Importance of leadership, Concepts of leadership, Important keys to effective leadership, Personal characteristics of effective leaders, Leadership and management, Differences between leadership & management, Principles of leadership, Types of leaders/leadership style, Autocratic leadership, Democratic/participative leadership, Laissez-faire leadership or free- rein leadership, Paternalistic leadership, Leadership skills, Technical skills, Human resource management skills, Conceptual skills, Personal skill, Theories of leadership, Trait theory of leadership, Behavioral theories of leadership, Adair’s theory, The Michigan and Ohio studies relating of leadership theories, Blake and Mouton managerial grid theory of leadership, Situational theories of leadership, Great man theory of leadership, Factors of leadership, Be know do, Effective leader traits, Roles and relationships of leadership, Culture and climate, Leadership models, Four framework approach, Power and leadership, Transactional leadership and impact our daily lives and futures. In good times and bad, there is always a need for strong leadership in an organization. The success of a businesses or an industry depends by the leaders of an organization. History and current experiences have provided valuable guidance on how one can develop the abilities demonstrated by respected leaders in an organization.

DEFINITIONS AND MEANING OF LEADERSHIP

Leadership according to Alford and Beatty “It is the ability to secure desirable actions from a group of followers voluntarily, without the use of coercion.”

Leadership according to Chester, I. Barnard “It (leadership) refers to the quality of the behaviour of the individual whereby they guide people on their activities in organized efforts.”

Leadership according to Terry “A leader shows the way by his own example. He is not a pusher, he pulls rater than pushes.”

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Dynamics of Managerial Leadership 199

Leadership according to Koontz and O’Donnel Managerial leadership is “the ability to exert inter-personal influence by means of communication, towards the achievement of a goal. Since managers get things done through people, their success depends, to a considerable extent upon their ability to provide leadership.”

Leadership according to R.T. Livingston Leadership is the “the ability to awaken in others the desire to follow a common objective.”

Leadership according to the Encyclopedia of the Social Sciences Leadership is the “relation between an individual and a group around some common interest and behaving in a manner directed or determined by him.”

Leadership according to Peter Drucker Leadership is not making friends and influencing people i.e., salesman. Leadership is the lifting of man’s vision to higher sights, the raising of man’s performance to higher standards, the building of man’s performance to higher standards, the building of man’s personality beyond its normal limitations.”

Leadership according to Louis, A. Allen “A leader is one who guides and directs other people. He gives the efforts to his followers a direction and purpose by influencing their behavior.”

Leadership according to Theo Haimann Leadership is “the process by which an executive imaginatively directs, guides and influences the work of others in choosing and attaining specified goals by mediating between the individuals and the organization in such a manner that both will obtain maximum satisfaction.”

Leadership according to James Gibbon Leadership is a “process of influencing on a group in a particular situation at a given point of time and in a specific set of circumstances that stimulates people to strive willingly to attain organizational objectives, giving them the experience of helping attain the common objectives and satisfaction with the type of leadership provided.”

Leadership according to Katz and Kalm “In the descriptions of organizations, no word is used with such varied meanings. The word leadership is sometimes used to indicate that it is an attribute of personality; sometimes, it is used as if it were a characteristic of certain positions, and sometimes as an attribute of behaviour.”

Above definition reveals the following points: • Leadership is an influence relationship among leaders and followers who strives for

real change and outcomes that reflect their shared purposes. • Leadership is defined as “the use of non-coercive power to shape goals, motivate

behaviour towards their attainment.”

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• Leadership is something more than just an aspect of personality, tradition, opportunism or appointment but connected specifically with the way one actually behaves towards oneself and others.

• Leadership defined as guidance of others in their pursuits, often by organizing, directing, co-ordinating, supporting, and motivating their efforts. It looks for Reciprocal, Transactional, Transformational, Cooperative and Adaptive.

• Leaders are defined as “those who influence the behavior of others without force, those who are accepted as leaders.”

IMPORTANCE OF LEADERSHIP

• Leadership is a process by which a person influences others to accomplish an objective and directs the organization in a way that makes it more cohesive and coherent. Leaders carryout this process by applying their leadership attributes, like as beliefs, values, ethics, character, knowledge and skills.

• Contemporary definitions most often reject the idea that leadership revolves around the leader’s ability, behaviors, styles or charisma. Leadership is a dynamic, relational process involving interactions among leaders, members and sometimes outside constituencies.

• It is the activity of leading: “his leadership inspired the team.” • It refers to the body of people who lead a group. • The status of a leader: “they challenged his leadership of the union.” • It refers to the ability to lead: “he believed that leadership can be taught.” • In common usage, leadership generally refers to:  the position or office of an authority figure, such as a President.  a position of office associated with technical skill or experience, as in a team leader

or a chief engineer.  a group of influential people, such as a union leadership.  guidance or direction, as in the phrase “the emperor is not providing much

leadership.”  capacity or ability to lead. • It is influencing and directing the performance of group members towards the

achievement of organizational goals. • According to Michener, DeLamater and Schwartz: “It is a process that takes place

in groups in which one member influences and controls the behavior of the other members toward some common goal.”

• Leadership is evidenced by effective attempts to influence others. Theories of leadership attempt to explain why some individuals are more effectives than others at influencing. Theories have focussed on differences in behavior, style, and personal attributes.

• Leadership is a rare skill.

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Dynamics of Managerial Leadership 201

• Leaders are born not made. • Leaders are charismatic. • Leadership exists only at the top of an organization. • The leader controls, directs, prods, manipulates. • It refers to mentoring, coaching, example and other processes for guidance of self and

other in action; link-theme between physical dimension and emotional dimension. • Leaders devise or promote new directions; new ways of doing things, managers execute

existing directions. • The one essential characteristic of all leaders is striving to achieve at the highest level

and this leads others to want to follow their example. • A chief executive might have all the charisma in the world, but without a compelling

idea of how to make things better, no leadership can be shown by this person.

Concepts of Leadership • Good leaders are made not born. If individual have the desire and willpower, individual

can become an effective leader in your organization. • Good leaders develop through a never ending process of self-study, education, training

and experience. • To inspire your workers into higher levels of teamwork, there are certain things

you must be, know and do. These do not come naturally, but are acquired through continual work and study.

• Good leaders are continually working and studying to improve their leadership skills; they are not resting on their glory.

• Although leaders position as a manager, supervisor, lead, etc., in organization. It gives the authority to accomplish certain tasks and objectives in the organization, this power does not make individual as a leader... it simply makes as boss. Leadership differs in that it makes the followers want to achieve high goals, rather than simply bossing people around.

Bass’ theory of leadership states that there are three basic ways to explain how people become leaders. The first two explain the leadership development for a small number of people. These theories are:

• some personality traits may lead people naturally into leadership roles. This is the Trait Theory.

• a crisis or important event may cause a person to rise to the occasion, which brings out extraordinary leadership qualities in an ordinary person. This is the Great Events Theory.

• people can choose to become leaders. People can learn leadership skills. This is the Transformational Leadership Theory. It is the most widely accepted theory today and the premise on which this guide is based.

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The basis of good leadership is honorable character and selfless service to your organization. In your employees’ eyes, your leadership is everything you do that effects the organization’s objectives and their well-being.

Respected leaders concentrate on what they are [be] (such as beliefs and character), what they know (such as job, tasks, and human nature), and what they do (such as implementing, motivating, and provide direction).

What makes a person want to follow a leader? People want to be guided by those they respect and who have a clear sense of direction. To gain respect, they must be ethical. A sense of direction is achieved by conveying a strong vision of the future.

Important Keys to Effective Leadership Important keys to effective leadership as listed below:

• Trust and confidence in top leadership was the single most reliable predictor of employee satisfaction in an organization.

• Effective communication by leadership in three critical areas was the key to winning organizational trust and confidence.

• Helping employees understand the company’s overall business strategy. • Helping employees understand how they contribute to achieving key business

objectives. • Sharing information with employees on both how the company is doing and how an

employee’s own division is doing—relative to strategic business objectives. • Self-direction. • Actively participates in setting group direction. • Invests time and energy in the work of the group. • Thinks critically. • Advocates for new ideas.

Personal Characteristics of Effective Leaders • Emotional intelligence is a group of abilities that enable individuals to recognize and

understand their own and others’ feelings and emotions and to use these insights to guide their own thinking and actions.

• They provide direction and meaning to the people they are leading. • They are generate trust. • They are favor action and risk taking. • They are purveyors of hope.

Leadership and Management • A manager is concerned with orderly structures, day-to-day activities, getting work

done, monitoring outcomes and efficiency. • A leader is concerned with interpersonal behavior, a focus on the future, change and

development. • A person can be a leader, manager, both or neither.

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Dynamics of Managerial Leadership 203

• Cole defines leadership “at work” as “A dynamic process whereby one individual in a group is not only responsible for the groups results but actively seeks the collaboration and commitment of all the group members in achieving group goals in a particular context and in a particular national culture.”

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. • Leadership versus management

 Leadership is a functional activity incorporated with the broader scope of management activities.

 Managers lacking the ability to influence others are not true leaders.

Differences between Leadership & Management

Leadership Management

• It based on influence • It based on authority • It is an informal designation • It is a formally designated position • It is an achieved position • It is an assigned position • It is part of every nurse’s role • It is improved by use of effective leadership skills • It is independent of management • Its success dependent on leader

Principles of Leadership

Principles of Leadership according to Don Clark: “Know yourself and seek self-improvement,” in order to know yourself, you have to understand yourself, know, and do, attributes. It is seeking self-improvement means continually strengthening your attributes. This can be accomplished through self-study, formal classes, reflection, and interacting with others.

1. Be Technically Proficient

• As a leader, you must know your job and have a solid familiarity with your employees’ tasks.

2. Seek Responsibility and Take Responsibility for Your Actions • Search for ways to guide your organization to new heights. And when things go

wrong, they always do sooner or later—do not blame others. Analyze the situation, take corrective action, and move on to the next challenge.

3. Make Sound and Timely Decisions • Use good problem-solving, decision-making and planning tools.

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4. Set the Example • Be a good role model for your employees. They must not only hear what they are

expected to do, but also see. We must become the change we want to see—Mahatma Gandhi

5. Know your People and Look out for their Well-being • Know human nature and the importance of sincerely caring for your workers.

6. Keep your Workers Informed • Know-how to communicate with not only them, but also seniors and other key

people. 7. Develop a Sense of Responsibility in Your Workers

• Help to develop good character traits that will help them carry out their professional responsibilities.

8. Ensure that Tasks are Understood, Supervised, and Accomplished • Communication is the key to this responsibility.

9. Train as a Team • Although many so-called leaders call their organization, department, section, etc.,

a team; they are not really teams...they are just a group of people doing their jobs. 10. Use the Full Capabilities of Your Organization

• By developing a team spirit, you will be able to employ your organization, department, section, etc., to its fullest capabilities.

11. Know Yourself and Seek Self-improvement • In order to know yourself, you have to understand your own attributes. Seek self-

improvement, continually strengthening your attributes. This can be accomplished through self-study, formal classes, reflection, practice, and interacting with others.

TYPES OF LEADERS/LEADERSHIP STYLE

Leadership style is characterized by specific instructions to employees regarding what, how, and when work should be done in an organization. According to Kurt Lewin and colleagues did leadership decision experiments in 1939 and identified three different styles of leadership for particular around decision-making. The Autocratic Leadership Style was first described by Lewin, Lippitt, and White in 1938 along with the democratic leadership and the laissez-faire leadership styles. The autocratic leadership style is sometimes referred to as the directive leadership style. We shall discuss about the different leadership styles in an organization.

Autocratic Leadership In the autocratic style, the leader takes decisions without consulting with others. The decision is made without any form of consultation. In Lewin’s experiments, he found that this caused the most level of discontent in an organization. An autocratic style works when

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Dynamics of Managerial Leadership 205

there is no need for input on the decision, where the decision would not change as a result of input, and where the motivation of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making.

The Characteristics of an Autocratic Style

The characteristics of an autocratic style are listed below: • Work methods that are dictated by the autocratic leader. • Limited employee participation in most aspects of work. • Unilateral decision-making by the leader. • The leader plans, organizes, controls, and coordinates without consent of the

subordinates. • Emphasis is on getting the job done without regard for input from others.

Assumptions An Autocratic Leader operates on the following assumptions:

• An average human being has inherent dislikes of work and will avoid it, if he can. • His assumptions are that if his subordinate was intelligent enough, he would not be

in that subordinate position. • He assumes that unintelligent subordinates are immature, unreliable and irresponsible

persons. Therefore, they should be constantly watched in the course of their work. • As he has no regard for his subordinates, he get the work done by his subordinates

through negative motivation. i.e., through threats of penalty and punishment.

Types of Autocratic Leadership Types of autocratic leadership as shown in Exhibit 10.1.

Exhibit 10.1: Autocratic leadership

Strict Autocratic Leaders A strict autocratic leader relies on negative influence and gives orders. These orders should accepted by the subordinates in an organization.

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A strict autocratic leader is one who has possessed the following characteristics:

• He/she has work centered. • He/she uses one way communication. • He/she used by Theory X managers. • He/she has no confidence or trust in subordinates. • He/she motivated by physical security, economic needs and desire for status. • His/she decisions made at the top. • He issues orders.

Benevolent Autocratic Leaders It is one type of autocratic leadership in an organization. Benevolent Autocratic is also called as (paternalistic). It is effected in getting high productivity in many situations and autocratic leader can develop effective human relationship. His motivational style is positive.

Characteristics of Benevolent Autocratic Leader • He work centered with protective employee centered concern in an organization. • He has condescending confidence and trust in subordinates. • He has motivated by economic needs and moderately by desire for status. • Decisions made at all levels, always checked by upper level in an organization. • He has issued orders but with comment opportunities.

Manipulative Autocratic Leaders Manipulative autocratic leaders is one who makes the subordinates feel that they are participating in decision-making process even through he has already taken decisions in an organization.

Advantages of Autocratic Leadership An organization will be got Very few advantages from autocratic or task management leadership as outlined:

• Efficiency. • Employees know the manager’s expectations.

Disadvantages of Autocratic Leadership An organization has got so many advantages from autocratic or task management leadership as outlined:

• Discourages employees from thinking about process improvements. • Employee dissatisfaction. • Decline in worker performance. • Does not prepare employees for promotion or possible advancement.

When to Use the Autocratic Style Autocratic leadership style is suitable below mention:

• During an emergency.

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Dynamics of Managerial Leadership 207

• Managing temporary employees. • Managing new employees.

DEMOCRATIC/PARTICIPATIVE LEADERSHIP

A leadership style is characterized by encouragement for employees to share in the decision- making and problem-solving processes as known as Democratic Leadership. In the democratic style, the leader involves the people in the decision-making, although the process for the final decision may vary from the leader having the final say to them facilitating consensus in the group.

Democratic decision-making is usually appreciated by the people, especially if they have been used to autocratic decisions with which they disagreed. It can be problematic when there are a wide range of opinions and there is no clear way of reaching an equitable final decision.

The Characteristics of an Autocratic Style The characteristics of an autocratic style are listed below:

• In this type of leadership, considers everyone’s viewpoint in decision-making. • Utilizes team concept in goal setting in an organization.

Advantages • A Participative Leader seeks to involve other people in the process likely including

subordinates, peers, superiors and other stakeholders. • Employees actively involved in decision-making. • Higher employee morale. • Stronger employee commitment to established goals. • Team proposes decision, leader has final decision in an organization. • Joint decision with team as equals share can be taken by leaders in an organization. • Leader will provide full delegation of decision to team in an organization.

Disadvantages • It is time consuming process to come to consensus opinion in an organization. • Not everyone likes to participate in decision-making process in an organization.

When to Use the Democratic Style • Managing employees who are committed to their jobs. • Managing employees who are interested in more responsibility. • Managing experienced and well-trained employees.

Assumptions • Involvement in decision-making process improves the understanding of the issues

which involved by those who must carry out the decisions in an organization. • People are more committed to actions where they are involved in the relevant decision-

making.

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• People are less competitive and more collaborative when they are working on joint goals.

• When people make decisions together, the social commitment to one another is greater and thus increases their commitment to the decision.

• Several people deciding together make better decisions than one person alone.

LAISSEZ-FAIRE LEADERSHIP OR FREE-REIN LEADERSHIP

A leadership style in which minimal direction and supervision is given to workers. Management shares information with subordinates and give freedom to team and its

members for accomplishment of goals and objectives in an organization. Team (or individual employee) is completely responsible for the workload in an organization.

Advantages • It is easy management style to administer. • It gives complete empowerment for employees. • The laissez-faire style is to minimize the leader’s involvement in decision-making,

and hence allowing people to make their own decisions, although they may still be responsible for the outcome.

• Laissez-faire works best when people are capable and motivated in making their own decisions, and where there is no requirement for a central coordination, for example in sharing resources across a range of different people and groups.

Disadvantages • Poor decision-making may result in an organization performance and goals. • Some employees do not perform well without direction and supervision of team

leaders. • It is managing inexperienced persons in an organization. • Shortage of well-trained, and highly-motivated workers in an organization.

Paternalistic Leadership Paternalistic leadership type of leader assumes that his function is fatherly. His attitude as treating the relationship between the leader and his groups that refers to leader of the family as the head of the family. The leader works to help to work to help, guide, protect and keep his followers happily working together as members of a family. He provides them with good working condition, fringe benefits and employee services. It is said that employees under such leadership well work harder out of gratitude.

LEADERSHIP SKILLS

The leader can play technical skills, human resource management skills, conceptual skills and personal skills in an organization. Leadership skills are shown Exhibit 10.2. Leadership skills take a leader-centered perspective on leadership. However, in the leadership skills focus on personality characteristics which are usually viewed as innate and relatively fixed.

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Dynamics of Managerial Leadership 209

Leadership skills are to an emphasis on skills and abilities that can be learned and developed. While personality certainly plays an integral role in leadership, the skills suggest that knowledge and abilities are needed for effective leadership.

Leadership skills are defined as the ability to use one’s knowledge and competencies to accomplish a set of goals or objectives.

Exhibit 10.2: Leadership Skills

Robert Katz suggested that effective administration (i.e., leadership) depends upon three basic personal skills:

• Technical, • Human, and • Conceptual. Katz argued that these skills are quite different from traits or qualities of leaders. Skills

imply what leaders can accomplish whereas traits imply who leaders are i.e. their innate characteristics. These leadership skills can be acquired and leaders can be trained to develop them.

Technical Skills Technical skill is having knowledge about and being proficient in a specific type of work or activity

It requires the following activities: • Competencies in a specialized area. • Analytical ability. • The ability to use appropriate tools and techniques. • Technical skills refer to the knowledge and ability necessary to perform the particular

task or type of activity required by your job.

Human Resource Management Skills It refers to the behavioral skills of being able to work effectively with and through people in an organization.

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Human resource management skills are listed below: • Human skill is having knowledge about and being able to work with people. It is

quite different from technical skill, which has to do with working with things in an organization. Human skills are known as “people skills.”

• Human skills are the abilities that help a leader to work effectively with subordinates, peers and superiors to successfully accomplish the organization’s goals.

• Human skills allow a leader to assist group members in working cooperatively as a group to achieve common goals in an organization.

• Human skills involve the empathy, objectivity, communication skills, teaching skills and social skill.

Conceptual Skills It refers to the ability to think abstractly and see relationships between seemingly disparate entities; the ability to see the big picture. It includes:

• Conceptual skills are abilities to work with ideas and concepts. Whereas technical skills deal with things and human skills deal with people, conceptual skills involve the ability to work with ideas.

• Understanding of the organization behavior. • To know the financial status of the firm. • A leader with conceptual skills is comfortable talking about the ideas that shape an

organization and the intricacies involved. • He or she is good at putting the company’s goals into words and can understand and

express the economic principles that affect the company. • Understanding the competitors in the market. • A leader with conceptual skills works easily with abstractions and hypothetical

notions.

Personal Skill The most magnificent task of the leader is to get the best from others. This is only possible when leader have possesses of certain qualities as listed in Exhibit 10.3:

Exhibit 10.3: Personal Skill

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Dynamics of Managerial Leadership 211

Personal skills are intelligence, emotional maturity, personal motivation, integrity with team and its members in an organization, flexibility of mind for cooperation and coordination among the members in an organization.

THEORIES OF LEADERSHIP

The term leadership have been viewed by different authorities and different researchers differently. Theories of leadership are based on personal opinions of experts in leadership and also consider others view in leadership as situational. The research studies conducted by behavioral scientists to find out what makes a leader can become effective have resulted in term “theories of leadership”. There are so many theories in leadership we have discuss only important theories as listed below:

1. Trait theory of leadership. 2. Behavioural theory of leadership. 3. Situational theory of leadership. 4. Greatman theory of leadership.

1. Trait Theory of Leadership The term ‘trait’ refers to a variety of individual attributes that predict whether a person will attain a position of leadership and be effective in it.

Assumption of Trait Theory of Leadership • A certain set of traits is a prerequisite for effective leadership. • Who leaders are influences employee attitudes and behaviors. • Profiling and selection of great leaders and consider as leadership. • Great leaders are born, but emphasis on the potential of personal awareness and

development. • Assumes that a finite number of individual traits of effective leaders can be found the

following characteristics which are relating to personality: — intelligence, — personality, — physical characteristics, — initiative, — imagination, — maturity, — desire to accept responsibility, — self-confidence, — flexibility, and — fairness and objectivity in terms of honesty, fairplay, justice, and integrity of

character expected of any good leader.

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Results: Key Leadership Traits Key leadership traits refer to a number studies involved to find different trait in leaders as shown Exhibit 10.4:

Exhibit 10.4: Results: Key Leadership Traits

The Role of Traits in Explaining Leadership

“A person does not become a leader by virtue of the possession of some combination of traits.... the pattern of personal characteristics of the leader must bear some relevant relationship to the characteristics, activities, and goals of the followers.” —Stogdill

“Possession of some traits […] increases the likelihood that a leader will be effective, but they don’t guarantee effectiveness. A leader with certain traits could be effective in one situation but ineffective in a different situation. Furthermore, two leaders with a different patter of traits could be successful in the same situation.” —Yukl

Trait theories attempt to isolate the personal or other characteristics which distinguish leaders from non-leaders. Traits are associated with leadership effectiveness as shown in Exhibit 10.5.

Exhibit 10.5: Associated with Leadership Effectiveness

Intelligence Personality Abilities Judgment Adaptability Ability to enlist co-operation Decisiveness Alertness Co-operativeness Knowledge Creativity Popularity and prestige Fluency of speech Personal integrity Sociability (interpersonal skills) Self-confidence Social participation Emotional balance and control Tact, diplomacy Independence (non-conformity)

Shortcomings of the Trait Theory of Leadership Important shortcomings of the trait theory of leadership as listed below:

• The list of potentially important traits is endless. • Trait test scores are not consistently predictive of leader effectiveness.

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Dynamics of Managerial Leadership 213

• Patterns of effective behavior depend largely on the situation. • The trait approach fails to provide into insight what the effective leader does on the

job.

2. Behavioral Theories of Leadership Behavioural studies focussed on investigating other characteristics than their innate traits or qualities of leader. The most important studies as outlined:

• Adair’s action centred leadership, • The Michigan and Ohio studies, • Blake and Moutons Managerial Grid.

Adair’s Theory Adair’s theory is based on appropriate behavior for the situation. It believes effective leadership lies in what the leader does to meet the needs of the task, (what is it, how is it too be achieved) the group (hold group together and coordinate work of people in group) and the individual (what’s my job, how well am I doing, what am I expected to do). Adair’s theory is shown in Exhibit 10.6.

Exhibit 10.6: Adair’s Theory

The Michigan and Ohio Studies Relating to Leadership Theories In the 1940’s two independent studies were carried out by the University of Michigan, and Ohio State University. The results were similar. Michigan found leadership behavior varied from job-centered to employee-centerd, Ohio called the end points initiating structure behavior and consideration behavior. Results of these studies as found below:

• Managers that were job-centerd were very directive, watch subordinates closely, and use formal communication patterns.

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• Employee-centered managers create group cohesion, job satisfaction and a friendly working atmosphere.

The Michigan Studies as outlined:

Job-centered Leader • Focuses on completing the task. • Uses close supervision and specified procedures. • Relies on coercion, reward, and legitimate power to influence behavior and performance

of subordinates.

Employee-centered Leader • Focuses on the people doing the work. • Believes in delegating decision-making. • Concerned with subordinates’ personal advancement, growth, and achievement.

How Managers can Increase Employee-centered Behaviors? Managers are responsible for development of behaviors of employees. Managers are using the following important behavior to manage employees in an organization: 1. Whenever possible, use rewards rather punishments for reinforcing and modifying

subordinate behaviors. 2. Keep lines of communication open at all times. 3. Listen. 4. Try to obtain positive outcomes for subordinates. 5. Provide opportunities when possible for employees to accomplish personal career

objectives. 6. Don’t be afraid to admit mistakes. 7. Initiating structure— (a) Organizes and defines the relationships in the group, (b) Tends to establish well-defined patterns and channels of communication, and (c) Spells out ways of getting the job done. 8. Consideration— — Behavior indicating friendship, mutual trust, respect, warmth, and rapport

between the leader and the followers.

Shortcomings of the behavior theories as outlined:

• The linkages between leadership and key organization performance indicators has not been conclusively resolved.

• The theories do not take into account the role of environmental variables in leadership effectiveness.

• The theories do not consider situational variables in leadership.

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Blake and Mouton Managerial Grid Theory of Leadership Blake and Mouton developed the Managerial Grid theory for analysis of leadership style. Blake and Mouton devised a two dimensional grid representing managerial style which is based on the Ohio and Michigan end points. This really shows a framework for management styles and not new evidence of what makes a leader?

Exhibit 10.7: Blake and Mouton Managerial Grid Theory of Leadership

3. Situational Theories of Leadership

It refers to advocate to leaders understands their own behavior, the behavior of their subordinates, and the situation before utilizing a particular leadership style. This approach requires the leader to have diagnostic skills in human behavior. Leader can be used situational approaches are listed below:

• Continuous learning. • Service oriented. • Radiate positively. • They believe in people. • They lead balanced lives. • They see life as an adventure. • They are synergistic (a catalyst). • They exercise for self-renewal (balance emotionally as well as spiritually, physically

and mentally). • Conveys principles rely on the manager improving his own personal competency and

sees the four principles working at four distinct levels. • Personal (the relationship with oneself) i.e., trustworthiness. • Interpersonal (the relationship with others) i.e., trust. • Managerial (getting the job done through others) i.e., (empowerment). • Organizational (building teams developing structures, strategies and systems) i.e.

(alignment). • Convey further argues that by applying these principles to tasks, groups and individuals

the chance of success is multiplied.

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Shortcomings of Situational Theory Leadership • This theory stresses that the leadership ability of a person in a given situation. But it

is silent on the question whether he will fit in another situation. • If the leader adopts some style under all situations, he may not be successful. This is

not always true, but leaders have been successful at all times and at all situations.

4. Greatman Theory of Leadership Greatman theory of leadership asserts that leaders are born and not made. This is especially applicable to great leaders who are natural leaders. Leadership calls for certain qualities like commanding personality, charm courage, intelligence, persuasiveness and aggressiveness. These qualities does not taught or learnt in a formal sense.

Characteristics Important characteristics are listed below:

• Leaders have certain inborn leadership qualities. • Inborn qualities are sufficient for a leader to be successful. • Ordinary people cannot become leaders. • Leadership qualities cannot be acquired.

Thus great leaders are “the gift of god” to man kind. They bestow great good on people by their decisions and activities which are also divinely destined and approved.

Shortcomings of Greatman Theory of Leadership Important limitations of greatman theory of leadership:

• The theory is now regarded as almost absolute and absurd because it has little scientific and empirical basis.

• The theory does not explain who are leaders, how they emerge, how behave and achieve effectiveness.

FACTORS OF LEADERSHIP

There are four major factors in leadership as shown in Exhibit 10.8.

Exhibit 10.8: Factors of Leadership

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Follower Different people require different styles of leadership. For example, a new hire requires more supervision than an experienced employee. A person who lacks motivation requires a different approach than one with a high degree of motivation. Leader must know their follower! The fundamental starting point is having a good understanding of human nature, such as needs, emotions, and motivation. Leader must come to know their employees’ be, know and do attributes.

Leader You must have an honest understanding of who you are, what you know, and what you can do. Also, note that it is the followers, not the leader who determines if a leader is successful. If they do not trust or lack confidence in their leadership, then they will be uninspired. To be successful you have to convince your followers, not yourself or your superiors, that you are worthy of being followed.

Communication You lead through two-way communication. Much of it is non-verbal. For instance, when you “set the example” that communicates to your people that you would not ask them to perform anything that you would not be willing to do. What and how you communicate either builds or harms the relationship between you and your employees.

Situation All are different. What you do in one situation will not always work in another. You must use your judgment to decide the best course of action and the leadership style needed for each situation. For example, you may need to confront an employee for inappropriate behavior, but if the confrontation is too late or too early, too harsh or too weak, then the results may prove ineffective.

Various forces will affect these factors. Examples of forces are your relationship with your seniors, the skill of your people, the informal leaders within your organization, and how your company is organized.

Attributes If you are a leader who can be trusted, then those around you will grow to respect you. To be such a leader, there is a Leadership Framework to guide you:

BE, KNOW, DO

BE a professional. Examples: be loyal to the organization, perform selfless service, take personal responsibility.

Be a professional who possess good character traits. Examples: honesty, competence, candor, commitment, integrity, courage, straightforwardness and imagination.

Know the four factors of leadership—follower, leader, communication and situation.

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Know yourself. Examples: strengths and weakness of your character, knowledge and skills.

Know human nature. Examples: human needs, emotions, and how people respond to stress.

Know your job. Examples: be proficient and be able to train others in their tasks. Know your organization. Examples: where to go for help, its climate and culture, who

the unofficial leaders are. Do provide direction. Examples: goal setting, problem-solving, decision-making, and

planning. Do implement. Examples: communicating, coordinating, supervising and evaluating. Do motivate. Examples: develop moral and esprit in the organization, train, coach and

counsel.

Effective Leader Traits • Vision — Set the course and have the conviction to follow-through. • Goals — Establish achievable goals. • Passion — Positive outlook and are passionate about their goals. • Integrity — Know your strength and weaknesses. • Honesty — Earn the trust of the followers. • Curiosity — Leaders are learners. • Risk — Take calculated risks and learn from mistakes. • Dedication — Commitment to the cause. • Charisma — Maturity, respect, compassion, and a sense of humor. • Listening — Effective leaders actively listen.

The effective leader is:

• Sets the direction, gives guidance, and motivates people. • Carry out the will of the group. • He is the champion for the cause of the group. • Guides the group during times of storm. • Knows what they want, why, and how to communicate it. • Recognizes and praises good work. • Think great thoughts. • Turn disasters into opportunities. Obstacles are opportunities. • Determine your “real” goals then strive to achieve them. • When you want to tell someone something important, do it personally? • Make coffee.

Roles and Relationships of Leadership Roles are the positions that are defined by a set of expectations about behavior of any job incumbent. Each role has a set of tasks and responsibilities that may or may not be pelled out. Roles have a powerful effect on behavior for several reasons, to include money being

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paid for the performance of the role, there is prestige attached to a role, and a sense of accomplishment or challenge.

Relationships are determined by a role’s tasks. While some tasks are performed alone, most are carried out in relationship with others. The tasks will determine who the role- holder is required to interact with, how often, and towards what end. Leader is normally involved the greater the interaction, the greater the liking follower. This in turn leads to more frequent interaction. In human behavior, it’s hard to like someone whom we have no contact with, and we tend to seek out those we like. People tend to do what they are rewarded for, and friendship is a powerful reward. Many tasks and behaviors that are associated with a role are brought about by these relationships. That is, new task and behaviors are expected of the present role holder because a strong relationship was developed in the past, either by that role holder or a prior role holder.

Culture and Climate There are two distinct forces that dictate how to act within an organization: culture and climate.

Each organization has its own distinctive culture. It is a combination of the founders, past leadership, current leadership, crises, events, history, and size. These results in rites: the routines, rituals, and the “way we do things.” These rites impact individual behavior on what it takes to be in good standing (the norm) and direct the appropriate behavior for each circumstance.

The climate is the feel of the organization, the individual and shared perceptions and attitudes of the organization’s members. While the culture is the deeply rooted nature of the organization that is a result of long-held formal and informal systems, rules, traditions, and customs; climate is a short-term phenomenon created by the current leadership. Climate represents the beliefs about the “feel of the organization” by its members. This individual perception of the “feel of the organization” comes from what the people believe about the activities that occur in the organization. These activities influence both individual and team motivation and satisfaction, such as:

• How well does the leader clarify the priorities and goals of the organization? What is expected of us?

• What is the system of recognition, rewards, and punishments in the organization? • How competent are the leaders? • Are leaders free to make decision? • What will happen if I make a mistake?

Organizational climate is directly related to the leadership and management style of the leader, based on the values, attributes, skills, and actions, as well as the priorities of the leader. Compare this to “ethical climate”—the “feel of the organization” about the activities that have ethical content or those aspects of the work environment that constitute ethical behavior. The ethical climate is the feel about whether we do things right; or the feel of whether we behave the way we ought to behave. The behavior (character) of the leader is the most important factor that impacts the climate.

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On the other hand, culture is a long-term and complex phenomenon. Culture represents the shared expectations and self-image of the organization. The mature values that create “tradition” or “the way we do things here.” Things are done differently in every organization. The collective vision and common folklore that define the institution are a reflection of culture. Individual leaders cannot easily create or change culture because culture is a part of the organization. Culture influences the characteristics of the climate by its effect on the actions and thought processes of the leader. But, everything you do as a leader will effect the climate of the organization.

LEADERSHIP MODELS

Leadership models help us to understand what makes leaders act the way they do. The ideal is not to lock yourself in to a type of behavior discussed in the model, but to realize that every situation calls for a different approach or behavior to be taken.

Four Framework Approach In the Four Framework Approach, Bolman and Deal suggest that leaders display leadership behaviors in one of four types of frameworks: Structural, Human Resource, Political or Symbolic. The style can either be effective or ineffective, depending upon the chosen behavior in certain situations.

Structural Framework In an effective leadership situation, the leader is a social architect whose leadership style is analysis and design. While in an ineffective leadership situation, the leader is a petty tyrant whose leadership style is details. Structural leaders focus on structure, strategy, environment, implementation, experimentation, and adaptation.

Human Resource Framework In an effective leadership situation, the leader is a catalyst and servant whose leadership style is support, advocate and empowerment. While in an ineffective leadership situation, the leader is a push over, whose leadership style is abdication and fraud. Human resource leaders believe in people and communicate that belief; they are visible and accessible; they empower, increase participation, support, share information, and move decision-making down into the organization.

Political Framework In an effective leadership situation, the leader is an advocate, whose leadership style is coalition and building. While in an ineffective leadership situation, the leader is a hustler, whose leadership style is manipulation. Political leaders clarify what they want and what they can get; they assess the distribution of power and interests; they build linkages to other stakeholders, use persuasion first, then use negotiation and coercion only if necessary.

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Dynamics of Managerial Leadership 221

Symbolic Framework In an effective leadership situation, the leader is a prophet, whose leadership style is inspiration. While in an ineffective leadership situation, the leader is a fanatic or fool, whose leadership style is smoke and mirrors. Symbolic leaders view organizations as a stage or theatre to play certain roles and give impressions; these leaders use symbols to capture attention; they try to frame experience by providing plausible interpretations of experiences; they discover and communicate a vision.

This model suggests that leaders can be put into one of these four categories and there are more times when one approach is appropriate and times when it would not be. Anyone of these approaches alone would be inadequate, thus, we should strive to be conscious of all four approaches, and not just rely on one or two. For example, during a major organization change, a structural leadership style may be more effective than a visionary leadership style; while during a period when strong growth is needed, the visionary approach may be better. We also need to understand ourselves as each of us tends to have a preferred approach. We need to be conscious of this at all time and be aware of the limitations of our favoring just one approach.

POWER AND LEADERSHIP

• Power is the ability to effect to the behavior of others. In organizations there are usually five kinds of power:

— Legitimate power, i.e., power due to a person’s position in the organization structure (usually given by someone else),

— Reward power, the ability to bestow or restrict awards, — Coercive power, the power to enforce compliance, — Referent, the power due to force of personality, and — Expert power due to ones possession of information or expertise.

TRANSACTIONAL LEADERSHIP

It refers to the following issues in leadership:

• The leader helps the follower identify what must be done to accomplish the desired results.

• The leader takes into consideration the person’s self-concept and esteem needs. • The transactional approach uses the path-goal concepts as its framework. • The leader relies on contingent reward and on management by exception. • When contingent reinforcement is used, followers exhibit an increase in performance

and satisfaction. • Using management by exception, the leader won’t be involved unless objectives are

not being accomplished. • Transactional leadership is not often found in organizational settings.

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Exhibit 10.9: Transactional Leadership

L: Recognizes what F must do to attain designated outcomes

L: Clarifies F's Role

F: Feels confidence in meeting role requirements (subjective probability of success) F: Develops motivation

to attain desired outcomes (expected effort)

L: Recognizes what F needs

L: Clarifies how F's need fulfillment will be exchanged for enacting role to attain designated outcomes

F: Recognizes value of designated outcomes (need-fulfilling value for F)

L = Leader F = Follower

• Ability to inspire and motivate followers to achieve results greater than originally planned.

• The leader’s vision provides the follower with motivation for hard work that is self- rewarding.

• To achieve their vision, transformational leaders make major changes in the firm’s or unit’s:

— Mission, — Way of doing business, and — Human resource management.

Key Factors that Describe Transformational Leaders Major key factors are listed below:

Charisma. The leader is able to instill a sense of value, respect, pride and to articulate a vision.

Individual attention. The leader pays attention to followers’ needs and assigns meaningful projects so that followers grow personally.

Intellectual stimulation. The leader helps followers rethink rational ways to examine a situation. He encourages followers to be creative.

Contingent reward. The leader informs followers about what must be done to receive the rewards they prefer.

Management by exception. The leader permits followers to work on the task and does not intervene unless goals are not being accomplished in a reasonable time and at a reasonable cost.

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Dynamics of Managerial Leadership 223

Case 10.1: Dhirubhai H. Ambani

Founder Chairman, Reliance Industries Limited, India December 28, 1932 - July 6, 2002

Major Group Companies: Reliance Industries Limited, India’s largest private sector company Description of Group’s Business: The Reliance Group founded by Dhirubhai H. Ambani (1932- 2002) is India’s largest business house with total revenues of over Rs 99,000 crore (US$ 22.6 billion), cash profit of Rs 12,500 crore (US$ 2.8 billion), net profit of Rs 6,200 crore (US$ 1.4 billion) and exports of Rs 15,900 crore (US$ 3.6 billion).

The Group’s activities span Exploration and Production (E&P) of oil and gas, refining and marketing, petrochemicals (polyester, polymers, and intermediates), textiles, financial services and insurance, power, telecom and infocom initiatives. The Group exports its products to more than 100 countries the world over. Reliance emerged as India’s Most Admired Business House, for the third successive year in a TNS mode survey for 2003.

Reliance Group revenue is equivalent to about 3.5% of India’s GDP. The Group contributes nearly 10% of the country’s indirect tax revenues and over 6% of India’s exports. Reliance is trusted by an investor family of over 3.1 million—India’s largest.

Birthplace: Chorwad, village in Saurashtra (Gujarat), India Father’s Name: Hirachand Govardhan Das Ambani Mother’s Name: Jamunaben Hirachand Ambani Career: At the age of 17 went to Aden (now part of Yemen) and worked for A. Besse & Co. Ltd.,

the sole selling distributor of Shell products. In the year 1958, returned to Mumbai and started his first company, Reliance Commercial

Corporation, a commodity trading and export house. In the year 1966, as a first step in Reliance’s highly successful strategy of backward integration,

he started the textile mill in Naroda, Ahmedabad. In the year 1975, a technical team from the World Bank certified that the Reliance textile plant

was “excellent by developed country standards.” In the year 1977, the company went public. Credited with a number of financial innovations in the Indian capital markets. Today, the

Reliance Group has one of the largest family of shareholders in the world. With an investment of over Rs 36,000 crore (US$ 9 billion) in petroleum refining, petrochemicals, power generation, telecommunication services and a port terminal in a three-year time frame, has steered the Reliance Group to its current status as India’s leading textiles-petroleum-petrochemicals-power-telecom player.

Achievements: Voted India’s ‘Top Businessman’ in the ‘Best of India’ poll conducted by Zee News, August 2003.

Petrotech Society conferred posthumously the ‘Lifetime Achievement Award’ for his outstanding contribution to Downstream Petroleum Industry in India, January 2003.

Rated as one of ‘India’s Most Admired CEOs’ for the fourth consecutive year in the Business Barons—Taylor Nelson Sofres—Mode Survey, July 2002.

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Conferred the ‘Lifetime Achievement Award’ by India HRD Congress, February 2002. Conferred ‘The Economic Times Award for Corporate Excellence for Lifetime Achievement’,

August 2001. Felicitated by the Municipal Corporation of Greater Mumbai with a citation at a civic reception,

December 2000. Conferred the ‘Man of the Century’ award by Chemtech Foundation and Chemical Engineering

World in recognition of his outstanding contribution to the growth and development of the chemical industry in India, November 2000.

Conferred the ‘Indian Entrepreneur of the 20th Century’ award by FICCI (Federation of Indian Chambers of Commerce and Industries), for his meticulous scripting of one of the most remarkable stories of business endeavour of the 20th century, March 2000.

Thrice (in the years 1996, 1998 and 2000) nominated as one of the ‘Power 50—the most powerful people in Asia’ by Asiaweek magazine.

Voted as the most admired Indian of the millennium in the field of Business & Economics in ‘Legends—A Celebration of Excellence’ poll audited by Ernst & Young for Zee Network, January 2000.

Voted as ‘Creator of Wealth’ of the century in The Times of India poll, January 2000. Chosen as one of the three ‘makers of equity’ by India Today in their special millennium issue

entitled ‘100 people who shaped India in the 20th Century’, January 2000. Chosen by the Indian Merchants’ Chamber as “An Outstanding Visionary of the 20th Century”

in recognition of his unique achievements and contribution in the development of industry and capital markets in India, December 1999.

Voted as ‘Indian Businessman of the Century’ in Business Barons Global Multimedia Poll, December 1999.

Amongst ‘The Power 50 - India’s 50 most powerful decision-makers in Politics, Business & Finance’, Business Barons, August 1999.

Declared ‘Most Admired Indian Business Leader’ by The Times of India, Indiatimes.com poll, July 1999.

The only Indian industrialist in ‘Business Hall of Fame’ in Asiaweek, October 1998. Awarded the Dean’s Medal by The Wharton School, University of Pennsylvania, for setting an

outstanding example of leadership, June 1998. Chosen as ‘Star of Asia’ by Business Week, USA, June 1998. Leading business magazine Business Barons placed him in its list of ‘India’s 25 Most Influential

Business and Financial Leaders’, June 1998. Awarded the Companion Membership of the Textile Institute, UK, an award which is limited to

50 living members who have “substantially advanced the general interests of the industries based on fibres”, 1994.

Chosen ‘Businessman of the Year 1993’, Business India, January 1994. Family: Wife: Kokilaben. Four children: two sons, Mukesh, who is Chairman & Managing Director and Anil, Vice-

Chairman & Managing Director of Reliance Industries and two daughters, Dipti Salgaocar who lives in Goa and Nina Kothari, who resides in Chennai.

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Dynamics of Managerial Leadership 225

Reliance gets an award for Corporate Social Responsibility—naïve population, low cost for technical services, and use of English as the primary business and medical language is ideal for completing trials rapidly and cost efficiently.

“RCRS expects to leverage the India advantage with its value proposition to deliver world- class clinical research services to global pharmaceutical, biotechnology, medical device and nutraceutical organisations”, said Mr. K.V. Subramaniam, Sr. Executive Vice-President, Reliance Industries Limited.

Source: Reliance Industries Limited

Questions for Discussion 1. Define leadership. 2. Explain the importance of leadership. 3. Explain the concepts of leadership. 4. Describe the important keys to effective leadership. 5. What are the personal characteristics of effective leaders? 6. What is leadership and management? 7. What are the differences between leadership and management? 8. Explain the principles of leadership. 9. Describe the types of leaders/leadership style. 10. What is autocratic leadership? 11. What is democratic/participative leadership? 12. What is Laissez-faire leadership or free-rein leadership? 13. What is paternalistic leadership? 14. Explain the leadership skills. 15. Comment on theories of leadership. 16. Discuss the Trait theory of leadership. 17. Explain the behavioural theories of leadership. 18. Explain the Adair’s theory. 19. Comment on the Michigan and Ohio studies relating of leadership theories. 20. Comment on Blake and Mouton Managerial Grid theory of leadership. 21. Describe the situational theories of leadership. 22. What is Greatman theory of leadership? 23. What are the factors of leadership? 24. Comment on—be know do. 25. Comment on effective leader traits. 26. Discuss the roles and relationships of leadership. 27. What is culture and climate? 28. Explain the leadership models.

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29. Comment on four framework approach. 30. What is power and leadership? 31. Discuss the transactional leadership.

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Research. New York: Free Press. 2. Bass, Bernard (1990). From Transactional to Transformational Leadership: Learning

to Share the Vision. Organizational Dynamics, Vol. 18, Issue 3, Winter, 19-31. 3. Blake, Robert R. and Mouton, Janse S. (1985), The Managerial Grid III: The Key to

Leadership Excellence, Houston: Gulf Publishing Co. 4. Bolman, L. and Deal, T. (1991), Reframing Organizations. San Francisco: Jossey-Bass. 5. Kouzes, James M. & Posner, Barry Z. (1987), The Leadership Challenge, San Francisco:

Jossey-Bass. 6. U.S. Army Handbook (1973), Military Leadership. 7. [Tags: Leadership Human Relations Culture Climate]. 8. Bennis, W, and Nanus, B. (1985), Leaders - The Strategies for Taking Charge, Harper-

Row, NY. Bennis has several other books on leadership. 9. Covey, S. R. (1989), The Seven Habits of Highly Effective People”, Fireside, Simon and

Schuster, New York. 10. Hayword, F. (1997), Churchill on Leadership, Prima Publishing, Rocklin, CA. 11. Kotter, J. (1997), Leading Change, Harvard Business School Press, Cambridge, MA.

Also see Harvard Business Review, March-April 1995. 12. Kouzes, J. M. and Posner, B. Z. (1995), The Leadership Challenge, San Francisco, Jossey-

Bass. 13. Phillips, D. T. (1992), Lincoln on Leadership, Warner Books, New York. 14. http://www.nwlink.com/~donclark/leader/leadcon.html. 15. Blake, R. R. & Mouton, J. S. (1964), The Managerial Grid, Houston, TX: Gulf. 16. Blanchard, K., Zigarmi, P., & Zigarmi, D. (1985), Leadership and the One Minute

Manager: Increasing Effectiveness through Situational Leadership, New York: William Morrow.

17. Katz, R. L. (1955, January–February), Skills of an Effective Administrator– Harvard Business Review, 33 (1), 33-43.

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