Transcript BUSINESS MANAGEMENT BUT211C The Nature of Leadership …

BUSINESS MANAGEMENT
BUT111C
The Nature of Leadership
Week 21
Leadership
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Among all the ideas and writings about leadership, three aspects stand out –
people, influence and goals.
Leadership occurs among people, involves the use of influence, and is used
to attain organisational goals (Daft and Marcic, 2012).
Leadership is the process of influencing employees to work toward the
achievement of organisational goals (Lussier 2009).
Leadership is based on interpersonal relationships, not administrative
activities and directives (Hellriegel et al 2008).
Leaders have a substantive effect on an organisation’s overall performance.
Leadership should be considered at an organisational level- rather than
individual CEO - level.
Leadership approaches need to evolve as the needs of organisations
change.
A significant influence on leadership styles in recent years is the growing
turbulence and uncertainty of the macro-environment (Daft and Marcic,
2012).
Leaders vs managers?
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People tend to use the terms manager and leader interchangeably. However,
managers are not necessarily strong leaders.
Some managers are not leaders because they do not have the ability to influence
others.
Management is broader in scope than leadership – leadership is only one of the four
functions of management.
There are also good leaders who are not good managers, such as people holding
informal authority. Many employees experience working in situations where one of
their peers had more influence in the department than the manager.
A primary distinction between management and leadership is that management
promotes stability and order within an existing organisational structure while
leadership promotes vision and change.
Leadership means questioning the status quo so that outdated, unproductive, or
socially irresponsible norms can be replaced to meet new organisational challenges.
Leadership cannot replace management – it should be in addition to management.
Good management is needed to help the organisation meet current commitments,
while good leadership is needed to move the organisation into the future (Daft and
Marcic, 2012).
Leadership trait theory (Ghiselli Study)
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Supervisory ability
• Able to get the job done through others
Need for occupational achievement
• Seeking responsibility
• Having the motivation to work hard to achieve
Intelligence
• Able to use good judgment & clear reasoning
Decisiveness
• Able to solve problems and make competent
decisions
Self-assurance / confidence
• Viewing themselves as capable of solving problems
Initiative
• Self-starter: able to get the job done with a
minimum of supervision
Traits:
Distinguishing natural
personal characteristics
Strengths:
Natural talents and
abilities that have been
supported and
reinforced with learned
knowledge and skills.
Effective leadership
Not about having the
“right” traits – but rather
about finding the
strengths that one can
best exemplify and apply
as a leader.
(Daft and Marcic, 2012).
Leadership development
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On-the-job learning
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Taking on jobs or projects that include leadership responsibilities
2. Formal assessment & training
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Leadership development programmes
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Ongoing assessment to improve effectiveness as a leader
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360 degree feedback
3. Coaching & mentoring
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Senior colleagues provide advice and act as role models
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Can guide on the styles of leadership favoured in the
organisation
4. Gaining off-the-job leadership experience
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Taking on leadership roles in community and social organisations
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Volunteering to make leadership contributions in religious and
charity organisations
Theory X and Theory Y
Assumptions and beliefs about individuals and how to motivate them often
influence a leader’s behaviour.
Theory X
Managers
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Assume that employees
basically dislike having
to work and will perform
well only if closely
managed.
• Employees need direction
wherever possible.
• Managers must coerce
employees to get them to
do effective work.
Theory Y
Managers
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Assume that people basically
like to work and do not need
close supervision.
Employees that are
committed to the
organisation’s goals will
exercise self-management.
Employees will accept and
even seek responsibility at
work, wanting to make a
positive contribution.
Two approaches to leadership
TRANSACTIONAL
LEADERSHIP
• Leadership style based on
leading by exchange.
• Transactional leaders often
excel at the management
functions by stressing the
impersonal aspects of
performance, such as plans,
schedules and budgets.
• Transactional leadership is
important to all organisations,
but leading change requires a
different approach (Daft and
Marcic, 2012).
• Promotes compliance !
TRANSFORMATIONAL
LEADERSHIP
• Leadership style based on
leading by motivating.
• Significantly transform
organisations as they bring
about changes in mission,
strategy, structure & culture.
• They also bring about
innovations in processes,
products and services.
• Inspire followers to believe not
just in the leader personally but
in their own potential to imagine
and create a better future for
the organisation.
Transformational leadership
• Leadership style that brings about continuous learning, innovation &
change through leading by motivating.
• Transformational leaders provide extraordinary motivation by appealing
to follower’s ideals and moral values and inspiring them to think about
problems in new ways (Hellriegel et al 2008).
• Many charismatic leaders are also transformational leaders but
charismatic leaders are not transformational leaders unless they inspire
continuous innovative change.
• Transformational leadership has been shown to contribute to leader
effectiveness, leader and follower satisfaction, improved follower efforts
and better overall organisational performance.
• Transformational leaders are typically positively engaged with the world
around them and accomplish change by building networks of positive
personal relationships (Daft and Marcic, 2012).
Behaviours of transformational leaders
VISION
• Transformational leaders have
an ability to create a vision that
binds people around a strong
sense of common purpose.
• Transformational leadership
motivates through identification
with the leader’s vision – pulling
rather than pushing others on
(Warren Bennis)
• Transformational leaders
convey not just the value of
their vision but an unshakeable
belief that the organisation –
their followers – are able to
realise it.
• Followers of transformational
leaders tend to demonstrate
unquestioning loyalty and
obedience.
FRAMING
• Framing is a process whereby
leaders define the group’s
purpose in significant or
meaningful terms.
• Employees work with a sense
that they are making a
difference in the community,
society or even the world.
• The group’s purpose is defined
in terms of the core values of
the organisation.
• Transformational leaders are
often able to frame their vision
in a way that gives employees a
new purpose for working.
IMPRESSION MANAGEMENT
• Impression management is the
attempt to control the
impressions that subordinates
(and stakeholders outside the
organisation) form about the
leader.
• Transformational leaders are
able to align their vision with
their person through effective
impression management.
• This is achieved through a
strong communication
competency and ensuring that
their behaviour lives their
values and supports the
declared vision.
Contemporary leadership concepts
1. Level 5 Leadership: Leadership that is characterised by an almost complete lack of ego
(humility), coupled with a fierce resolve / will to do what is best for the organisation
(Collins, 2002).
2. Servant leadership: A servant leader transcends self-interest to serve others and the
organisation. Servant leaders operate on two levels: for the fulfillment of their
subordinates’ goals and needs and for the realisation of the larger purpose or mission of
their organisation.
3. Authentic leadership: Leadership by individuals who know and understand
themselves, who espouse and act consistently with higher order ethical values, and who
empower and inspire others with their openness and authenticity. Inspire trust and
commitment. In followers
4. Interactive leadership: Leaders that favour a consensual and collaborative process,
exerting influence that derives from relationships rather than position and formal
authority.
Research on women in leadership
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Research indicates that women’s style of leadership is (1) typically different
from most men’s leadership styles and (2) is particularly well suited to today’s
organisations (Daft and Marcic, 2012).
Using data from actual performance evaluations, one study found that when
rated by peers, subordinates and bosses, female managers scored significantly
higher than men did abilities such as motivating others, fostering
communication, the production of high-quality work and listening to others
(Sharpe, 2000).
A recent study of leaders and their followers in businesses, universities, and
government agencies found that women were rated higher on social and
emotional skills, which are crucial skills for both emotional intelligence and
interactive leadership (Groves, 2005).
A 2009 review of thousands of 360-degree performance evaluations revealed
that women outshone men in almost every leadership dimension measured –
with the one exception that women leaders were often rated as “less
visionary” (Ibarra and Otilia, 2009).
Types of leadership power
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Power is “the potential ability to influence the behaviour of others” (Daft
and Marcic, 2012). The power available does not need to be used – often
the perception of power is enough to influence others.
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Leaders use power to get things done in organisations. Leadership and
power therefore go hand-in-hand. To influence others, leaders need to
exercise some form of power.
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Employees are not influenced without a reason – the reason often is the
power that a leader exerts over them. Without some form of power,
managers are not able to achieve organisational objectives.
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Generally, power in organisations is allocated to those who get results and
have good interpersonal skills.
Types of leadership power
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French & Raven 1959 developed a framework for understanding the
forms of power used by leaders in influencing followers.
Identified five types of leadership power:
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Legitimate power
Coercive power
Referent power
Reward power
Expert power
Effective leaders may find it necessary to use more than one type of
power at different times and for different occasions.
1. Legitimate power
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Definition: Influence based on the leader’s formal position in the
organisation’s hierarchy. Employees feel that they ought to do what the boss
says because of the position that they hold.
Access to resources, information and key decision makers gives some
leaders legitimate power in influencing events; as well as passing on
information and rewards to subordinates.
Such leaders are often described as having “clout” or political influence
within an organisation. Legitimate power can:
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Get a good job for a talented
employee
Obtain approval for expenditures
beyond the budget
Provide easy access to top
people in the company
Ensure early awareness of
important decisions and policy
shifts
Pinky Moholi
Koos Bekker
2. Coercive power
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Definition: Influence based on fear and punishment.
Coercive power is less effective than a legitimate, reward or referent power
because punishment is less effective as a motivator.
Coercive power may be appropriate when enforcing rules.
Punishment may take the form of:
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Less desirable work assignments
Verbal reprimands or written warnings
Demotions, suspensions or terminations
Humiliation, criticism
Limiting chances of promotion
Employees may respond to coercion
by exhibiting negative behaviour
(such as falsifying performance reports)
rather than improving their performance.
“Change before you have
to…”
– Jack Welch
3. Referent power
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Definition: Influence based on followers personally identifying with the
leader. Followers tend to like, admire and want to emulate their leader.
Leaders who have admirable personal characteristics, charisma, and an
excellent reputation often possess referent power.
Referent power sometimes used by people with no positional power in
organisations – using requests rather than orders.
Referent power can be
gained in organisations
by developing
interpersonal skills and
developing the
confidence that other
employees have in you.
Nelson Mandela
Winston Churchill
4. Reward power
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Definition: Influence based on the leader’s ability to bestow rewards on
other people. Leaders using reward power let people know what is in it
for them by creating win-win situations.
Employees act on the supervisor’s request because they believe that
their behaviours will be rewarded. To increase their reward power,
managers must be in a position to evaluate employees’ performance and
determine their raises and promotions.
Rewards may take many forms, including:
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Praise, attention
Recognition
Favourable job assignments
Preferred vacation schedules
Promotions
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Salary increases
Bill Gates
5. Expert power
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Definition: Influence based on specialised knowledge & skill regarding
the tasks being performed is regarded as expert power.
When someone is a true expert, others go along with their
recommendations because of his or her superior knowledge.
The fewer people who possess certain expertise in an organisation, the
more power the individual who does have it gains.
Followers as well as leaders can
possess expert power. Being an expert
makes employees depend on you and
employees with expert power are
often promoted to management
positions.
Warren Buffet
Steve Jobs
Using power effectively
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Legitimate power is effective when a manager simply requires an
employee to perform a task that is within the employee’s
capabilities and job description.
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Coercive power may be effective to get employees to comply with
rules but, in general, when leaders threaten to punish the
response from subordinates is often angry and negative.
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Referent power usually leads to high levels of performance, hence
effective leaders are likely to rely on expert, referent and reward
power, using legitimate and coercive power only minimally.
How subordinates respond to the use of
leadership power
• Leadership matters, but without effective followers no organisation can
survive. Leaders can develop an understanding of their followers and create
the conditions that help them to be most effective (Daft and Marcic, 2012)
• The leader’s use of different types of power can lead to three distinct types
of behaviour in followers:
1. Commitment
Committed subordinates are enthusiastic about meeting their leader’s
expectations and strive to do so.
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Compliance
Subordinates who merely comply with their leader’s requests will do only what
has to be done – usually without much enthusiasm.
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Resistance
Subordinates may appear to respond to their leader’s requests while not
actively doing so or even intentionally delaying or sabotaging plans.
Tutorial group exercise
To what extent to you believe that the types of power used by an individual
leader reveal a great deal about why others follow that particular leader?
As a group will need to identify the two theoretical approaches you believe
are most useful to managers operating in SA - and which two are the least
useful
1. Legitimate power?
2. Coercive power?
3. Referent power?
4. Reward power?
5. Expert power?
Due: 3 October 2012
The types of power used by a leader reveals a great deal about
why others follow that individual leader
Why others follow this type of leader
Legitimate Power Followers
Coercise Power Followers
Referent Power Followers
Reward Power Followers
Expert Power Followers