contemporary leadership issues final

8/3/2019 Contemporary Leadership Issues Final

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Contemporary Leadership Issues


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Put trust in other people, and by trusting others, I have

found that they will trust you,

Nothing is more important to being an effective leader

than having an unshakable trusting relationship withthose whom you work with and those you lead.

Don Evans, U.S. Secretary of Commerce


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What is Trust?

A positive expectation that another will not--through words, actions, or decisions--actopportunistically

Familiarity, Risk


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Trust and Leadership

Leadership

TRUST

andINTEGRITY


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Trust Dimensions

Integrity

Competence

Consistency

Loyalty

Openness


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Dimensions of Trust Integrity

honesty andtruthfulness.

Competence

an individuals technical

and interpersonalknowledge and skills.

Consistency an individuals reliability,

predictability, and goodjudgment in handling

situations.

Loyalty

the willingness toprotect and save face

for another person. Openness

reliance on the personto give you the full truth.


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Three Types of Trust

Deterrence-based TrustTrust based on fear of reprisal if the trust is violated.

Identification-based TrustTrust based on a mutual understanding of eachothers intentions and appreciation of the otherswants and desires.

Knowledge-based Trust

Trust based on behavioralpredictability that comesfrom a history of interaction.


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How to Build Trust

Practice openness

Be fair

Speak your feelings

Tell the truth Show consistency

Fulfill your promises

Demonstrate competence


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Framing: Using Words to Shape Meaning and InspireOthers

Leaders use framing

(selectively including or

excluding facts) to

influence how otherssee and interpret

reality.

Framing

A way to use language tomanage meaning.


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Emotions were ignored in thepast in organizational behavior.The workplace was consideredonly as a rational environment

where emotions had no place. Inrecent times, researchers areinterested in finding out how

workplace emotions help toexplain the important individualand organizational outcomes.


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Emotional Intelligence

Emotional intelligence refers tothe leaders ability to recognize

ones own feelings and those of

others for self motivation and formanaging emotions inthemselves and in relationshipwith others.


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Emotional Intelligence Five Fundamental Capabilities of EI

Self-awareness

Self-management

Self Motivation

Empathy

Social Skills


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Mentoring

Mentoring Activities:

Present ideas clearly

Listen well

Empathize

Share experiences

Act as role model

Share contacts

Provide politicalguidance

Mentor

A senior employee who sponsorsand supports a less-experiencedemployee.


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Self-Leadership

Creating self leaders:

Model self-leadership.

Encourage employees tocreate self-set goals.

Encourage the use of self-rewards.

Create positive thoughtpatterns.

Create a climate of self-leadership.

Encourage self-criticism.

Self-Leadership

A set of processes throughwhich individuals control

their own behavior.


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Ethics: used to describe the kinds of

values and morals an individual societyfinds desirable or appropriate.


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Ethical Leadership

Ethical leadership describes an expectation thatleaders are good people and behave in ways that

are socially and morally acceptable.

The choices that leaders make and how they respond

in a given circumstance are informed and directed bytheir ethics (Northouse, 2004).


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Actions:

Work to positively change theattitudes and behaviors ofemployees.

Engage in socially constructivebehaviors.

Do not abuse power or useimproper means to attain goals.

Ethical Leadership


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Ethical Leadership Robert K. Greenleaf, articulated five principles of

ethical leadership. He believed that ethicalleaders:

Respect Others

Serve Others Show Justice

Manifest Honesty

Builds Community


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Ethics in Workplace

Compliance with the Law

Sense of Propriety

Claims should match reality

Openness Charitable

Reaction towards negative disclosures


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In U.S. 46% of management jobs held

by womenWomen under-represented at top

levels

Glass ceiling

Subtle bias against women because

they dont fit stereotype of topmanager


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Gender Issues in Leadership

Research suggests women more readily adopt a

participative leadership style

Women are evaluated negatively when they adopt a

stereotypically male leadership style (I.e. autocratic)and occupy traditionally male-dominated position.


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When rated by peers, employees, and bosses, womenexecutives score better than male counterparts

Explanations of difference in effectiveness include:

flexibility, teamwork, trust, and information sharing arereplacing rigid structures, competitive individualism,control, and secrecy

best managers listen, motivate, and provide support

Is different better?

I i ti l A h t


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Inspirational Approaches toLeadership

Charismatics Influence Followers By:

1. Articulating the vision

2. Setting high performance expectations

3. Conveying a new set of values

4. Making personal sacrifices

Charismatic Leadership TheoryFollowers make attributions of heroic or extraordinaryleadership abilities when they observe certain behaviors.


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Key Characteristics of CharismaticLeaders

1. Vision and articulation. Has a visionexpressed as an idealizedgoalthat proposes a future better than the status quo; and is ableto clarify the importance of the vision in terms that areunderstandable to others.

2. Personal risk. Willing to take on high personal risk, incur high

costs and engage in self-sacrifice to achieve the vision.

3. Environmental sensitivity. Able to make realistic assessments ofthe environmental constraints and resources needed to bring aboutchange.

4. Sensitivity to follower needs.Perceptive of others abilities andresponsive to their needs and feelings.

5. Unconventional behavior. Engages in behaviors that areperceived as novel and counter to norms.


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Transactional Leadership

Ch t i ti f T ti l


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Characteristics of TransactionalLeaders

Contingent Reward:Contracts exchange ofrewards for effort, promises rewards for goodperformance, recognizes accomplishments.

Management by Exception (active):Watches and

searches for deviations from rules and standards,takes corrective action.

Management by Exception (passive):Intervenesonly if standards are not met.


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Transformational Leadership

Transformational leaders Leaders empower and coach followers

Followers identify with the leader

Motivate followers (to) Ignore self-interest

Work for the larger good of theorganization

Achieve significant accomplishments

Make major changes


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Our dreams have to be bigger. Our ambition higher.Our commitment deeper. And our efforts greater.This is my dream for Reliance and for India.

- Dhirubhai Ambani.


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Dhirubhai Ambani

Dhirubhai Ambani ,a perfect combination ofentrepreneurship and leadership, transformedReliance from a company with a turnover of Rs 640million in 1976, to one with a turnover of Rs 620

billion in 2002. Starting with a small textile mill inNaroda, in 1966,Dhirubhai took Reliance into variousareas like petrochemicals, polyester filament yarn,oil and gas exploration and production, refining and

marketing of petroleum, textiles, power, telecomservices, information management and financialservices


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Dhirubhai started Reliance at a time when mostcompanies in India were owned by the

government, and the private players were givenstep-motherly treatment by the government whileoffering licenses and permits. Similarly, whenmost Indian business houses depended on

governmentowned financial institutions forfunds, Dhirubhai raised capital from the public byoffering shares of his companies.


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Narayana Murthy

In February 2001, Infosys Technologies Ltd.(Infosys)[1] was voted as the Best Managed Companyin Asia in the Information Technology sector, inleading financial magazine Euromoney's Fifth AnnualSurvey of Best Managed Companies in Asia. Infosyswas started in 1981, by seven [2] professionalentrepreneurs led by Narayana Murthy, Chairman andCEO of Infosys with an equity capital of Rs.10,000. By2000, Infosys' market capitalization reached Rs.11

billion and by 2001, Infosys was one of the biggestexporters of software from India. Narayana Murthyhad built an organization that was respected acrossthe country, with very strong systems, high ethicalvalues and a nurturing working atmosphere.


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Narayana Murthy obtained his Bachelor'sdegree in Electrical Engineering fromUniversity of Mysore in 1967 and his

Master's degree in Technology from IndianInstitute of Technology, Kanpur in 1969. Hestarted his career as head of the computercentre at IIM, Ahmedabad. In 1972, he went

to Paris where he was part of the team thatdesigned a 400-terminal, real-time operatingsystem for handling air cargo for Charles DeGaulle airport. Narayana Murthy was a left-wing activist and mingled with French

communists during his stay in Paris but hisoutlook changed while traveling aroundEurope.


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He believed that the only way to pullIndia out of poverty was to create

more jobs, by setting up newcompanies. In 1975, he returned toIndia and joined Systems Research

Institute, Pune, (Maharashtra). Hethen headed Patni Computer SystemsPvt. Ltd., Mumbai, (Maharashtra)before founding Infosys in 1981, along

with six other professionals.


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Characteristics of TransformationalLeaders

Charisma: Provides vision and sense of mission, instillspride, gains respect and trust.

Inspiration: Communicates high expectations, uses

symbols to focus efforts, expresses important purposesin simple ways.

Intellectual Stimulation: Promotes intelligence,rationality, and careful problem solving.

Individualized Consideration: Gives personal attention,treats each employee individually, coaches, advises.


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Guidelines for Transformational Leadership

Develop a clear and appealing vision

Develop a strategy for attaining the vision Articulate and promote the vision

Act confident and optimistic

Express confidence in followers

Use early success in small steps to build confidence

Celebrate successes

Use dramatic, symbolic actions to emphasize key values

Lead by example

Those Who Want to Be Transformational Leaders

Should:


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TransactionalLeadership

Motivating for

performance atexpected levels.

Initiating structure toclarify roles and tasks.

Stressing the linkbetween reward andgoal achievement.

Uses agreed uponperformance to

motivate.

TransformationalLeadership

Motivating for performancebeyond expectations

Inspiring for missions beyondself-interest.

Instilling confidence toexceed expectedperformance

Performancebeyondexpectations

Transformational Leadership goes Beyond Transactional Leadership


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Transformational and Transactional

Leadership Are Not in Opposition

Transformational leadership is based ontransactional

Transformational leadership is more thancharisma

Transformational leaders instill in followers

the ability to question established views,and ultimately those of the leader


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contemporary leadership issues final

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