ch - 4 leadership acca

7/22/2019 CH - 4 Leadership ACCA

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LEADERSHIP

CHAPTER 4


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ROLES IN LEADERSHIP

o Who is a Leader?o Quality of a Leader?o Job of a Manager?o What is management?o Who is a Supervisor?


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LeaderSomeone who can exercise influence over other people

Leadership An interpersonal influence directed toward the achievementof a goal or goals.

Manager Aim of the manager is to get things done by delegatingpowers to other people rather than doing everything himself.

ManagementEffective use of capital, plant, materials & labor to achieve defined objectives with maximum efficiency.


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ManagementManagement can be thought as a

o Function (e.g., General Managers)o Process (e.g., Manufacturing)o Discipline (e.g., Army)o Profession (e.g., Recruitment Agencies)

SupervisorPerson giving authority for planning and controlling the work

of their group, but they can only further delegate the workassigned to them.


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Manager versus Leader

Manager Leader

The manager administers The leader innovates

Manager relies on control Leader inspires trust

Manager looks for the bottomline Leader has his eye on the horizon


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Managerial Role of a Supervisoro Interface between management &

workforceo Solves problems first hand where it

occurs.o

Relies on knowledge of employmentlegislations to deal with labor.o Facilitates pleasant industrial

relationships & negotiations withindepartments.


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THEORIES OF MANAGEMENTThe Classical SchoolTaylor & Fayol

Individuals must subordinate to organisaton interests andin reward organization should pay for that.They believed in one best way to

o Organize the firmo Do the individual job

They emphasized on the person doing the task not the task itselfMain Features of their approach

o Controlling central authority

o Fair pay & good working conditionso Clear lines of command


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Fayols categorization of management taskso Forecasting & Planningo Organizationo Commando Coordinationo Control


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Forecasting & PlanningSet objectives & evaluate choice of action.

OrganizationDivide work into tasks, appoint subordinates for each task &ensure they have necessary skills to carry out that task.

CommandGive instructions to subordinates for carrying out tasks &delegate necessary authority.

CoordinationEnsure all staff are working towards common goals

ControlSet targets, measure & evaluate outcomes, & take remedialactions.


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Fayol applied 14 rules of management which are1. Division of work2. Authority3. Discipline4. Unity of command5. Unity of direction6. Subordination to the general interest

7. Remuneration8. Centralization9. Scalar chain10. Order

11. Equity12. Tenure of personnel13. Initiative14. Espirit de corps


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Key features of Taylors scientific managementapproach

I. Workers should set high targets but should be wellrewarded for achieving them.

II. Working methods should be analyzed scientificallyincluding the timing of work.III. Management should plan & control all the workers

efforts leaving little discretion for individual controlover working methods.


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Criticisms to this approachI. There is not a single best way for doing a particular job.II. Employees can often have a considerable insight into a

job and can make important suggestions for improvement

III. Many workers can be motivated by other methods thantight control & financial reward.


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THE HUMAN RELATIONS SCHOOLG. Elton Mayo (1880 1949)

He conducted a series of experiments at the Hawthorne plant

of General Electric in Chicago during the year 1927 1932.He changed physical working conditions to see their effectson the productivity of the workers.

Conclusion of the studiesGroup relations & management workers communicationwere far more important in determining employee behaviorthan practices imposed by management.Wage levels were not the dominant factor for mostwork ers.


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Results of the Hawthorne studya) Employee behavior depends primarily on the social &

organizational circumstances.

b) Leadership style, group cohesion, & job satisfaction aremajor determinants of the outputs of the working group.

c) Employees work better if they are given a wide range oftasks to complete.

d) Standards set internally by a working group influenceemployee attitude & perspective more than set bymanagement.


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Conclusive view of the human relations approachIt recognizes the role of management in determining

workplace behavior & it has demonstrated that factors other

than pay can motivate workersCriticism

Overestimates the commitment, motivation & desire toparticipate in decision making of many employees.


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Modern ApproachesBehavioralismThis approach is concerned with personal adjustment of the

individual within the work organization and the effects of grouprelationships and leadership styles.

Contingency ApproachContingency theorists do not ignore the lessons learnt from

earlier theorist but adopt to suit particular circumstances.System ApproachExpresses a managers role as a coordinator of the elements

of a system of which people are only one part.

Considers organization as a social system, consisting ofindividuals, who co-operate together within a formalframework, draw resources from their environment & put backinto that environment the products they produce or theservices the offer.


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INPUT PROCESS OUTPUT

ENVIRONMENT

ENVIRONMENT

ENVIRONMENT

ENVIRONMENT


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Mintzberg recognized ten skills under three maintask headings to be carried out by a manager.

Role Tasks

Interpersonal

o Figure head (Symbolic)o Leadero Liasion

Informational

o Monitoro Disseminatoro Spokesperson

Decisional

EntrepreneurDisturbance handlerResource allocatorNegotiator


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AuthorityRight to give orders

Types of Authorityo Line Authorityo Staff Authorityo Functional Authority

ResponsibilityThe Liability of a person to be held accountable.


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John French & Berman RavenThey identified five sources of influencing power

1. Reward power (power to reward)2. Coercive power (power to punish)3. Expert power (expertise or technical knowhow of a

person)4. Referent power (Based on persons desire to identify &

imitate others)5. Legitimate power (Power derived from being in a position

of authority.

John French & Berman Raven

In every position responsibility & authorit should correspond.1. Responsibility / No authority2. Authority / No responsibility


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Earlier Leadership conceptsEarlier presenters of leadership theories believed thatleaders couldnt be made but they were born. In these

their physical characteristics (like drive, energy,appearance) and their personality traits (like adaptability,enthusiasm & self confidence) & social traits (cooperation,tactfulness, & courtesy) were seen to judge them as

leaders. Action Centered Approach

This approach says that a leader has to strive for threetraits to successfully become a leader.

I. Task needsII. Group needs

III. Individual needs


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The Contingent Approacho Sees effective leadership as being dependable on a

number of uncontrollable factors.o Advocates that no one single way is there to leado Lead according to the situation

Two Types of Leadership advocated by Fiedlero Psychologically distant managerso Psychologically close managers

Psychologically distant managers

Maintain distance from subordinatesRemain withdrawn & reserved

Judge subordinates on performanceMost effective leaders follow this method


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Psychologically close managersDont have formalize relationships Prefer informal contacts

More conventional about maintaining goodrelationships

PDMs work best when either the situation is extremelyfavorable or extremely unfavorable for the managerPCMs work best when the situation is moderately favorable forthe managerFiedler argued that group performance will depend on thematching of favorability of the condition with the style ofleadership adopted.


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Key Features of Fiedlers Contingency Theory Relationship between leader & group depends on three factors

1. Relationship between group & leader2. Extent to which task is defined & structured3. Power of the leader in relation to the group.

Bennis Approacho Transactional Leaderso Transformational Leader

Bennis five avenues of changeo Dissent & conflicto

Trust & trutho Clique & Cabalso External eventso Culture & paradigm shift


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Bennis way of dealing with changeo Participation & involvemento Education & communicationo Facilitation & supporto Manipulation & cooptationo Negotiation & agreement

Heifetz ApproachHe argues that ask for change but let the people decidethemselves on the how part rather then suggestinganswers to new arised questions due to change

According to him leaders have two choiceso Technical changeo Adaptive change


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Heifetzs way of dealing with change o Recognitiono Adaptive changeo Keep focusedo Ensure people who will be effected to buy in

Blake & Mouton Approacho Management impoverished (1,1)o Country club management (1,9)o Task management (9,1)o Middle management (5,5)o Team management (9,9)

ch - 4 leadership acca

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