2014

ManagementStefan Markowski

ManagementStefan Markowski

How? When?How? When?

WhatWhat??

0

20

40

60

80

100

1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

East

West

North

Seeking competitive advantage

Why?Why?

Where?Where?

WhoWho??

Leadership

Detailed course schedule

Day no 

Topic Textbook ch.

1 (24 Nov; 2 hrs)

1. The nature and role of organisational management. Roles and tasks of organisational managers

Chs. 1-2

2 (25 Nov; 2 hrs)

2. Organisation and its environment Chs. 3-5

3 (26 Nov; 2 hrs)

3. The process of organisational decision making

Chs. 7, 9-10

4 (27 Nov; 2 hrs)

4. Organisational planning Chs. 7-8

5 (28 Nov; 2 hrs)

5. Organising Chs. 14-16

6 (1 Dec; 2 hrs)

6. Leadership Chs. 17-20

7 (2 Dec; 2 hrs)

7. Monitoring and control Chs. 11-13

8 (3 Dec; 1 hr) 8. Revision  

9 (8 Dec; 2 hrs)

Examination  

The following table provides a list of lecture topics for each day of the course

Topic 6: Leadership

Topic Contents

6.1 Introduction

6.2 Traits theory of leadership

6.3 S6.3 Situational theory of leadership

6.4 Functional theory of leadership6.4 Functional theory of leadership

6.5 Leadership styles

6.6 Leadership power and influence

6.7 Further reading

6.1 Introduction• LeadershipLeadership is often defined as a person’s ability to influence others to behave in a way intended by him/her (a leader) to achieve aims and objectives set by the leader for its followers or for the cumminity/organisation he/she is leading (after Combe, 2014: 150)

• The ability to influence is critical: effective leadership implies a followingfollowing

• To be able to influence people and make them follow, a leader must have a mix of persuasive, motivational and inspirational traits of personality

• Leadership has long been studied and described (re: from Alexander the Great, Julius Cesar, Attila the Hun to Lady Thatcher – sometime described by satirists as Attila the Hen – and Nelson Mandela)

6.1 Introduction• There is a great diversity of traits of character that

make leaders, think of Genghis Khan vs Henry Ford vs Martin Luther vs Napoleon

• Not all leadership is good for those led (re: Hitler’s leadership of Germany or Stalin’s of the Soviet Union)

• Leadership is also different from management – it emphasizes the ability to project sense of vision and ability to project sense of vision and missionmission (catholic Popes) or to command to command (Napoleon) rather than ability to administer

• But, leadership qualities in managers could make it easier (e.g., charisma) or more difficult to manage (e.g., big ego no ability to listen)

6.2 Traits theory of leadership

• This approach emphasizes a particular aspect of personality that influences a person’s behaviour in particular way (a trait), e.g., intelligence, willpower, charisma, courage

• Often these are believed to be innate qualitiesinnate qualities, that one is born with, or qualities learned early in lifequalities learned early in life (the Jesuits’ “give me a child below the age of seven and I shall give you the man”) or acquired through acquired through superior, elite education superior, elite education (the “sport fields of Eton” college, the French ecoles, or universities such as the US Ivy League or Oxbridge)

6.2 Traits theory of leadership

• Academics have been probing traits of character such as intelligence, initiative, self-assurance, judgment, sensitivity to identify combinations of characteristics that are best predictors of people’s leadership roles (e.g., Myers-Briggs Type IndicatorMyers-Briggs Type Indicator: MBTI)

• Some business organisations have used MBTI to identify candidates for fast tracking into promotion (e.g., young leaders, high fliers, tall poppies rather than hard working plodders)

• For example, introverted, highly intelligent thinkers make good visionaries but extroverts are more likely to succeed as leaders

6.2 Traits theory of leadership

• Five Factors Model Five Factors Model has also been used to classify peoples’ personalities

Source: Combe (2014), Table 5.1: 154

Personality type Qualities

Extraversion Gregarious, assertive, sociable

Agreeableness Good-natured, cooperative, trusting

Conscientiousness Responsible, dependable, persistent, organised

Emotional stability Positive: Calm, secure, self-confidentNegative: Nervous, depressed, insecure

Openness to new experience

Imaginative, sensitive, curious

6.3 Situational theory of leadership

• This approach (e.g., Hersey and Blanchard) argues that circumstancescircumstances and situationssituations make leaders as the innate or acquired traits of character are only significant if the circumstances are right

• In particular, the type of follower may influence the type of leader required (e.g., followers could be able and willing to be led or unable and unwilling)

• The leadership style must match the type or level of The leadership style must match the type or level of followershipfollowership: “Leaders for followers” as a variant of “horses for courses”

6.3 Situational theory of leadership

• A variant of situational approach is the contingency contingency theory of leadership theory of leadership (Fred Fiedler)

• Leadership style Leadership style is determined by the leader’s innate qualities but his/her leadership behaviour leadership behaviour may change depending on circumstances

• The effectiveness of the organisation/group depends on the degree of fit (the favourableness of the degree of fit (the favourableness of the situation) situation) between the leader’s style and the nature of circumstances that may or may not make the leader effective

• Position power (seniority) Position power (seniority) makes the situation more favourable (a general has more power)

6.3 Situational theory of leadership

• Task structure Task structure is more favourable when tasks assigned to the followers can be clearly defined

• Leader-followerLeader-follower relations are more favourable when leader is liked and respected so there is no need to project power or apply coercion

• Fiedler ranked the latter as the most important factor and the position power as the least important

• The effectiveness of transformational leadership which champions radical change depends to a large extend on the leader-follower relationship

6.4 Functional theory of6.4 Functional theory ofleadershipleadership

• This approach emphasizes the facilitation aspect of leadership

• Five functions of leadershipFive functions of leadership:– environmental monitoring

– organising subordinate activities

– teaching and coaching subordinates

– motivating

– intervening actively in the organisational business

• This interpretation of leadership is more management style

6.5 Leadership styles• Leadership styles in organisational settingsLeadership styles in organisational settings

Style Followership

Bureaucratic Weberian bureaucracy (see topics 1 and 2)

Charismatic Motivated by force or charm of personality

Autocratic Responds to projected power and authority

Democratic Needs to be consulted and to influence decisions

Laissez-faire Needs little direction or guidance

People-focused Requires attention and top-down support

Task-driven Needs to be goal-driven and motivated into specific actions/campaigns

Servant leader Requires facilitator and agent

Transactional

Transformational

Needs to be negotiated with and responds to negotiated dealsNeeds to be inspired and mobilized

6.5 Leadership styles

• Example: Impact of leadership style

Style Leader Impact on followers

Authoritarian drives decision-making top down

Productivity could be high but output quality lowHostility, aggression, discontent and fear

Democratic consults and engages the followers in decision making

Productivity lower but output quality highFriendliness and group orientation

Laissez-faire(layback)

leaves the followers to fend for themselves

Productive and output quality lowAnarchic

6.5 Leadership styles

• Likert’s system of management style (after Combe, 2014, Table 5.4: 163)

System: Exploitative and Authoritarian

Management applies fear and threats

Communications top down

Centralised decision making

Managers distant and remote

System: Benevolent-authoratative

Management applies rewards

Communications mostly top down and some bottom-up

Centralised decision making

Managers distant and treated with subservience

6.5 Leadership styles

System: Consultative

Management applies rewards and occasional punishment

Communications bottom up and down

Partially devolved decision making

Managers largely responsive to employee influence

System: Participative organisational management

Management applies rewards but is close to employees, largely egalitarian

Communications are open

Mostly devolved decision making

Managers highly responsive to employee influence

6.6 Leadership power and influence

• Sources of organisational power Sources of organisational power of leaders

Source: Combe (2014) Table 5.5: 170

Source of power Nature of power

Coercion Projection of force and fear

Reward system Ability to dispense rewards

Legitimacy Based on organisational status

Expertise Possession of knowledge/experience which others wish to emulate

Referential Possession of wealth or personal traits that others value

6.6 Leadership power and influence

• Charismatic leadership Charismatic leadership does not require power of coercion or bribing people by rewards – it is derived from personal traits of the leader

• Transactional leadership Transactional leadership largely depends on the system of rewards and the leader’s ability to negotiate deals (transactions)

• Transformational leaders Transformational leaders need legitimacy and expertise, they have to inspire people to radical change and convince them that it is feasible

• Who is who? Bill Gates, Walesa, Mandela, Obama, Putin?

6.7 Further reading

Griffin (2013): chs. 17-20

Combe (2014): ch. 5