Republic of the Philippines WESTERN PHILIPPINES UNIVERSITY PUERTO PRINCESA CAMPUS GRADUATE SCHOOL Sta.

Monica Heights, Puerto Princesa City SUBJECT TOPIC DATE PROFESSOR PRESENTOR : : : : : PA 514: Organizational Analysis LEADERSHIP July 9, 2011 Mr. Armando F. Arce Bethel Salimbagat & Stenely Olbes- Manuel

A. INTRODUCTION Writers on leadership have succeeded in achieving very little uniformity in reaching an agreed definition of leadership. Different theories on leadership have been proposed by various intellectual minds. This unit shall elaborate on these theories and the presenters hope that at the end of the presentation, a better and clearer understanding of leadership shall have been gained. Leadership is closely linked with management, since effective and successful managers possess leadership potentials in them. In this unit, we shall learn that although leaders are born, leadership techniques can be learned. Management styles as a means of managing situations can be developed. However, these skills will only be fully achieved through a continuing process of understanding the latest developments in management. We must also appreciate that management techniques and initiatives will only work in an environment where the culture is supportive, leadership is committed and change management is well developed. B. OBJECTIVES At the end of the presentation, the students are expected to learn and understand: 1. Leadership & Leadership Behavior 2. Leadership Theories Traits Approach to Leadership (Ghiselli) Bases of Influence (Power) Behavioral Theories Contingency Theories THE CONTINGENCY THEORY (Fiedler) PARTICIPATIVE LEADERSHIP THEORY (Vroom & Yetton )

PATH-GOAL THEORY ( House & Mitchell) VERTICAL DYAD (LEADER-MEMBER EXCHANGE) THEORY (Graen) LIFE-CYCLE (MATURITY) THEORY (Hersey & Blanchard ) SUBSTITUTES FOR LEADERSHIP (Kerr & Jerimer ) Role Theory (Henry Mintzberg) 3. Contemporary Issues in Leadership C. METHODOLOGY 1. Interactive Method and Experience-Based Method 2. Visual presentation and printed materials D. CONTENT LEADERSHIP & LEADERSHIP BEHAVIOR Leadership is the art of motivating a group of people to act towards achieving a common goal. Put even more simply, the leader is the inspiration and director of the action. He or she is the person in the group that possesses the combination of personality and skills that makes others want to follow his or her direction. LEADERSHIP THEORIES Is a leader born or made? While there are people who seem to be naturally endowed with more leadership abilities than others, people can learn to become leaders by concentrating on improving particular leadership skills. Leadership is a winning combination of personal traits and the ability to think and act as a leader, a person who directs the activities of others for the good of all. Anyone can be a leader, even if the only person theyre leading is themselves. TRAIT APPROACHES TO LEADERSHIP Edwin Ghiselli identified six (6) traits required in a leader; useful in predicting leadership effectiveness: 1. Supervisory ability 2. Intelligence 3. Decisiveness 4. Self- assurance

5. Achievement orientedness 6. Self actualization Leaders are born, not made Physical characteristics - Appearance, height, age Personality -Extroversion, persistence, self-assurance, decisiveness Intelligence - Knowledge, ability, judgment Social characteristics -Tact, diplomacy, sociability, fluency

The big five personality traits 1. extroversion (ambition, energy) 2. conscientiousness 3. openness to experience 4. emotional stability (self-confidence) 5. agreeableness

CHARISMATIC LEADERSHIP

Vision & articulation Proposes a better future an optimistic goal Delivered clearly in a convincing fashion Personal risk Willing to take risks & incur costs to achieve the vision Self-sacrifice will be necessary Environmental sensitivity

Knows whether the environment will be supportive Knows what resources are needed to bring about change Sensitivity to followers Perceptive of others abilities, needs & feelings Taps into follower emotions Unconventional behavior May do things that are novel, or contrary to the norms Is the vision value-based? Will the followers become enthusiastic? Do the people believe the vision is attainable? Are charismatic leaders born or can they be taught? Correlated with high satisfaction among followers Effective when there is an ideological part to the task, or facing stress & uncertainty

Charismatic leaders dont tolerate criticism, surround themselves with yes people 29 firms study --- found an absence of ego-driven charismatic leaders

TRANSFORMATIONAL LEADERSHIP

Inspirational, idea-oriented, visionary Dramatic, arouses intense feelings Communicates high expectations & a need for change Unpredictable Relies on referent or charismatic power Raises level of awareness and commitment Gets followers to transcend their self-interests Requires trust and belief in the vision presented

TRANSACTIONAL LEADERSHIP Exchanges rewards for services Management by exception (watches for deviations) Keeps the system operating smoothly Uses reward and coercive power bases Recognizes what workers want & tries to deliver it Rewards according to worker effort Responsive to worker self-interests

Is transformational leadership built on top of transactional leadership, or is it just a special case of charismatic leadership? Summary of trait approaches to leadership

Assumption leaders are born, not made! Implication we must be very careful in how we select our leaders Limitations it overlooks the needs of followers it ignores situational factors cause and effect are not clearly defined do self-confident leaders cause firms to be successful, or does a successful firm allow a leader to feel self-confident?

BASES OF LEADER POWER & INFLUENCE French & Raven

Legitimate power

authority to command, based on the position Reward power able to award positive, desired outcomes Coercive power able to threaten, punish or harm Expert power influence based on knowledge and information Referent power influence based on charisma, identification and trust

Most likely outcomes of leader power & influence RESISTANCE COMPLIANCE COMMITMENT Coercive power Legitimate power , Reward power Expert power , Referent power

Guidelines for using power Expert power Act confident and decisive Keep informed Dont threaten subordinates self-esteem be approachable Willing to share your knowledge with others

Referent power Treat subordinates fairly Defend subordinates interests

Be sensitive to subordinates needs & feelings

Legitimate power Be cordial, polite, and confident Make appropriate requests Follow proper channels Exercise power regularly and enforce compliance

Reward power Verify compliance and accomplishments Offer rewards for desired actions and behaviors Offer credible rewards that are desired by subordinates

Coercive power Inform subordinates of rules and penalties Understand the situation before acting & warn before punishing Administer punishment consistently & punish in private

BEHAVIORAL LEADERSHIP THEORIES Behavioral Style Theory- developed after 1950. This theory focuses on what leaders do as opposed to their underlying characteristics. A number of models and theories have been put forward to explore this. Task Oriented Leader vs People-oriented Leader Participative vs. Autocratic Leadership Employee- centered vs production-centered or output oriented style Task Oriented Leader defines and specifies the work to be done and encourages people to do their work. Action Centered Leadership A model proposed by John Adair (1973) argued that it is not who you are but what you do which establishes you as a leader. A leader needs to balance the needs of the task, the team and the individual. The effective leader carries out the functions and demonstrates the behaviors appropriate to the circles, varying the level according to the needs of the situation. The leader whilst balancing the three circles, sits in his/her helicopter above the process, ensuring the best possible overview of what is happening. People- Oriented Leader helps create an atmosphere of harmony, a condition needed to reduce tension and conflict.

In 1958 Robert Tannenbaum and Warren H. Schmidt published the now famous continuum of leadership styles, which framed leadership in terms of choices managers may make regarding subordinates participation in decision making. They distinguished between participative and autocratic leadership. Participative allows the group to share in the decision-making process, to develop group interrelationship to get things done, employees are given avenues for self- expression Autocratic Leadership vests in the leader responsibility to make decisions. Huneryager and Heckman in 1967 identified four styles of leadership : a) dictatorial b) autocratic c) democratic d) laissez faire free rein type which orients subordinates on organization goals and policy guidelines, there is minimum supervision and in some cases, the leader leaves the matter of performing to subordinates. Summary of behavioral approaches to leadership

Assumption leaders are effective because of the actions they take Implication we can learn to become leaders by studying what effective leaders do Limitations situational factors that influence success or failure are ignored leaders need to be flexibleyou cant lead the same way all the time

CONTINGENCY THEORIES recognize the importance of situational factors in explaining success or failure of leaders. Leadership is therefore situational.

FIEDLERS CONTINGENCY MODEL In this model, leadership is effective when the leaders style is appropriate to the situation, as determined by three principal factors: 1. Leader-subordinate/member relations: The nature of the interpersonal relationship between leader and follower, expressed in terms of good through poor, with qualifying modifiers attached as necessary. It is obvious that the leaders personality and the personalities of subordinates play important roles in this variable. 2. Task structure: The nature of the subordinates task, described as structured or unstructured, associated with the amount of creative freedom allowed the subordinate to accomplish the task, and how the task is defined. 3. Position power: The degree to which the position itself enables the leader to get the group members to comply with and accept his or her direction and leadership. Leader characteristics (least-preferred coworker scale) high lpc --low lpc--employee relations oriented task oriented

Situational considerations leader-member relations task structure leader position power Favorable leader situations most favorable - - - - - - - - - - - - - least favorable Leader-member relations Task structure Leader position power effective style g g g g n n n n g g n n g g n n g n g n g n g n task employee task

Fiedlers contributions

1. Leader effectiveness is situational 2. Task leadership is valuable and important 3. Modify situations to fit the leaders style

MANIPULATING THE SITUATION

Modify leader-member relations spend more (or less) time with subordinates organize some off-work group activities increase (or decrease) your availability to workers raise morale by obtaining positive outcomes for subordinates transfer subordinates into (or out of) your unit request compatible people for work in your group

Modify task structure ask for tasks which are more stuctured learn all you can about the task break the job down into smaller sub-tasks leave the task in relatively vague form enrich jobs through horizontal and vertical expansion

Modify position power show subordinates who boss --- exercise your powers fully become an expert about jobs as soon as possible

all information and feedback to subordinates is channeled through you ask members to participate in decisions and planning try to be one of the gang --- downplay your power let assistants exercise more power ask management to give you more discretion and autonomy

PATH-GOAL THEORY OF LEADERSHIP House & Mitchell Goal- Path Theory Robert House proposed this situational theory of leadership because he believes that the main functions of leaders are to set goals and direct the path of subordinates to these goals. According to the goal-path theory there are four primary styles of leadership: 1. Directive Leadership: The leader explains the performance goal and provides specific rules and regulations to guide subordinates toward achieving it. 2. Supportive Leadership: The leader displays personal concern for subordinates. This includes being friendly to subordinates and sensitive to their needs. 3. Achievement-oriented Leadership: The leader emphasizes the achievement of difficult tasks and the importance of excellent performance and simultaneously displays confidence that subordinates will perform well. 4. Participative Leadership: The leader consults with subordinates about work, task goals, and paths to resolve goals. This leadership style involves sharing information as well as consulting with subordinates before making decisions. Situational factors characteristics of subordinates locus of control experience perceived ability characteristics of the environment task structure formal authority system

work group Leader styles directive supportive achievement-oriented participative

The leader compensates for things lacking in either the employee or the work setting to help the worker perform effectively

VERTICAL DYAD (EXCHANGE) MODEL - Leader-Member exchange model ( Graen ) Leaders invest their time & attention in those expected to perform best Leader creates an in-group (the favored few) & an out-group In-groups and out-groups may demonstrate the self-fulfilling prophesy

In-groups Receive special duties and have special privileges Are given more autonomy and responsibility Experience higher satisfaction Are more productive Are part of the leaders support network

Out_groups Are not trusted Are not given desirable work assignments Receive less leader time and attention live down to leader expectations Are less likely to support the leader

In-group members selected based on: Competence and ability Personal compatibility with the leader

Substitutes for leadership kerr & jerimer (78)

Substitutes are factors that can neutralize the influence of leader behavior Look for characteristics of: the subordinates the task the organization For initiating structure ability and professional training of subordinates standardized, unambiguous, routinized tasks detailed rules & procedures provided by the organization For consideration intrinsic appeal of the task itself esteem of professional colleagues supportive and cohesive work group

LIFE-CYCLE (MATURITY) THEORY - Also called situational leadership theory by Hersey & Blanchard - Leader behaviors need to vary, depending on the maturity of the workers

Directive style (telling) gives clear direction & instructions to immature employees followers are unable and unwilling (insecure) Coaching style (selling)

expands two-way communication, helps maturing employees build confidence and motivation followers are unable, but willing to try Supporting style (participating) employee feel competent, active two-way communication still needed for shared decisions followers are able but apprehensive Autonomous style (delegating) gives responsibilities for planning and decision making to highly mature employees followers are able and willing

Task behaviors start out high, and gradually decline Relationship behaviors start low, build, then decline again An intuitive theory, but empirical support has not been strong CONCLUSIONS RE: CONTINGENCY THEORIES there is no one best way to lead leaders should know their own preferred style know how to carefully diagnose your work situation understand which actions to take to improve the situation MANAGERIAL ROLES Mintzberg One of the earliest ethnographic approach to the understanding of management and to study what managers actually do was by Henry Mintzberg. Mintzberg in 1973 was concerned that management theory did not explain what managers actually did. His research concluded that managers had a range of roles : Interpersonal roles Figurehead (ceremonial)

Leader (supervisor) Liaison (linking-pin)

Informational roles Monitor Disseminator Spokesperson

Decisional roles Innovator (entrepreneur) Disturbance handler (crisis) Resource allocator Negotiator

Figurehead
The manager, acting as a symbol or representative of the organization, performs diverse ceremonial duties. By attending Chamber of Commerce meetings, heading the local United Way drive, or representing the president of the firm at an awards banquet, a manager performs the figurehead role.

Leader
The manager, interacting with subordinates, motivates and develops them. The supervisor who conducts quarterly performance or selects training opportunities for his or her subordinates performs the role of leader. This role emphasizes the socioemotional and people-oriented side of leadership and de-emphasises task activities, which are more often incorporated into the decisional roles.

Liaison
The manager establishes a network of contacts to gather information for the organisation. Belonging to professional associations or meeting over lunch with peers in other organisations helps the manager perform the liaison role.

Monitor
The manager gathers information from the environment inside and outside the organisation. He or she may attend meetings with subordinates, scan company publications, or participate in companywide committees as a way of performing this role.

Disseminator
The manager transmits both factual and value information to subordinates. Managers may conduct staff meetings, send memoranda to their staff, or meet informally with them on a one-to-one basis to discuss current and future projects.

Spokesperson
The manager gives information to people outside the organization about its performance and policies. He or she oversees preparation of the annual report, prepares advertising copy, or speaks at community and professional meetings.

Entrepreneur
The manager designs and initiates change in the organization. The supervisor who redesigns the jobs of subordinates, introduces flexible working hours, or brings new technology to the job performs this role.

Disturbance Handler
The manager deals with problems that arise when organizational operations break down. A person who finds a new supplier on short notice for an out-of-stock part, who replaces unexpectedly absent employees, or who deals with machine breakdown performs this role.

Resourcer
The manager controls the allocation of people, money, material and time or by scheduling his or her own time, programming subordinates' work effort, and authorising all significant decisions. Preparation of the budget is a major aspect of this role.

Negotiator
The manager participates in negotiation activities. A manager who hires a new employee may negotiate work assignments or compensation with that person

LEADERSHIP AND TRUST An expectation that the leader will not take unfair advantage of me Is my leader trustworthy?

Five dimensions of trust integrity -- honest and truthful competence -- has good technical knowledge & interpersonal skills consistency -- is reliable, predictable, and has good judgement loyalty -- will look out for me and protect me; wont take advantage openness -- will talk to me and tell me the truth (whats going on)

Deterrence-based trust --we can retaliate or strike back if harmeddont really have a history Knowledge-based trust --can predict what will happen based on experiencegive a second chance? Identification-based trust --- know each other intimately, act for each other

Basic principles of trust mistrust drives out trust

trust begets trust growth often masks distrust decline or downsizing tests the highest levels of trust trust increases cohesion mistrusting groups self-destruct mistrust generally reduces productivity

CONTEMPORARY ISSUES IN LEADERSHIP

1. Do men & women lead differently? The similarities outweigh the differences

A SLIGHT TENDENCY FOR WOMEN TO To lean toward participative, negotiable, information-sharing styles This tendency declines when women are in male-dominated jobs

A SLIGHT TENDENCY FOR MEN To be more directive and rely on the formal authority of their position 2. Team leadership Difficult for managers to switch from traditional roles LEARN TO BECOME: A Facilitator A Liaison

A Troubleshooter A Conflict Manager A Coach 3. Empowerment Be careful about jumping on the bandwagon -- does it fit? It assumes a universal approach to leadership Does the situation call for more empowerment? 4. Importance of followers The qualities of effective followers: they manage themselves well can think, work independently they are committed to their work they are competent and work to higher standards than their job requires they are honest and credible

5. Impact of national culture Culture is an important situational variable Higher power-distance autocratic leadership style is preferred Arab, Far East, Latin countries Lower power-distance more success with the participative style USA, Canada, Scandinavian countries

6. Biological impacts on leadership Seratonin improves sociability and reduces aggression (prozac) Testosterone increases competitive drive and assertiveness Women in professional jobs have higher levels

7. Moral dimensions of leadership What sort of example does the leader set? Is the leader a good role model? Corruption within the firm often starts with bad examples at the top Regardless of the theory of leadership adapted as model, leadership behavior is affected by 3 factors or forces: 1. Value orientation of the manager or leader: the managers value system, confidence in subordinates, leadership inclinations, and feelings of security in an uncertain situation. 2. Value orientation of the subordinates: expectations, need for independence, readiness to assume decision-making responsibility, tolerance for ambiguity in task definition, interest in the problem, ability to understand and identify with the goals of the organization, and knowledge and experience to deal with the problem. 3. Situational factors: type of organization, effectiveness of the group, the problem itself (the task), and time pressure. Becoming a Manager: How New Managers Master the Challenges of Leadership Linda Hill -managing/leading can be learned ...the best managers are those who have an appetite for learning and are willing to work on themselves. Management is very hard; even the most gifted people must commit themselves to lifelong learning and self-development. Professor Hill says some of the questions the developing manager needs to ask are :

Do I like collaborative work? Do I tend to become the leader of groups in which I find myself? Have I ever volunteered to coach or tutor others? Do I find it intriguing to work on thorny, ambiguous problems? Do I cope well with stress (e.g., extended hours, tough personal decisions)?

Linda Hill suggests that anyone who answers the five questions above in the negative should consider whether they have the personal qualities, character and motivation to be an effective manager. REFERENCES: http://knowledge.wharton.upenn.edu/ http://leadership.wharton.upenn.edu/digest/index.shtml http://leadership.wharton.upenn.edu/governance/index.shtml http://leadership.wharton.upenn.edu/l_change/index.shtml http://hbswk.hbs.edu/.