Leadership

Dr. Koustab Ghosh

Calcutta Business School

 Attributes of Entrepreneur
Pursues individualized thoughts
Forecasting skills and opportunity seekers
High risk takers
High stake in enterprises
Innovative and thoughts generative
More intervening and self confirming by nature
Networks to expand social and business base
Puts lees efforts and time to develop people
 Attributes of Manager
Chasing people to get things done
Self prospect and security
Status oriented
Feels comfortable to work with tried and tested
methods
High concern for short term goals
Networks for own purpose
Persuades others to fall in his line of thoughts /
actions
Looks for quick – fix solutions

Attributes of Leader
Building organizations (including
reviving / developing / creating growth
etc.)
Deep faith in social issues (including
visionary / strong ethical values etc.)
Innovative (including chasing
excellence)
Open, allows freedom to express /
develop people
Clarity of purpose
Full of energy (including strong will /
determination)
Service above self
ends by the use of means, both of which are determined by a
third party

-- A manager is one who directs others in the pursuit of ends by

the use of means that he or she selects

-- A leader is one who induces and guides others in the voluntary

pursuit of ends by the use of means that they, the followers,
select or approve of if they are chosen by another

Leadership involves two functions:

(1) the formulation of a vision that the organization is willing to pursue

even if doing so requires short term sacrifices; and
(2) a formulation of the way to pursue the vision that will be both
rewarding and satisfying.

A vision is a non-existing state of the organization that is strongly desired.

It may or may not be attainable, but it must be approachable even if
unattainable. Visions can change over time but they tend to have
relatively long lives
-- Leadership is the ability to influence a group of people
toward the achievement of goals in an ethical manner

-- Leadership is a process of influencing and shaping the

potential behaviour of people in the system

-- Leadership as a process involves influence, exemplary

behaviour or persuasion

-- Leaders exhibit a degree of versatility and flexibility that

enables them to adapt their behaviour to the changing
demands made on them
Key Variables in Leadership
Theories
Characteristics of the Leader

Characteristics of the Follower

Characteristics of the Situation

Characteristics of the
Leader

Traits (motives, personality, values)

Confidence and optimism
Skills and expertise
Behavior
Integrity and ethics
Influence tactics
Attributions about followers
Characteristics of the Follower
Traits (needs, values, self concepts)
Confidence and optimism
Skills and expertise
Attributions about the leader
Trust in the leader
Task commitment and effort
Satisfaction with job and leader
Characteristics of the
Situation

Type of organizational unit

Size of unit
Position power and authority of leader
Task structure and complexity
Task interdependence
Environmental uncertainty
External dependencies
 Level of Conceptualization
for Leadership
 Intra-individual process – focus on
processes within a single individual
 Dyadic process – focuses on the relationship
between a leader and another individual
 Group process – focuses on the leadership
role in a task group and how a leader
contributes to group effectiveness
 Organizational process – focuses on
leadership as a process that occurs in a
larger open system in which groups are a
subsystem
15

These leaders have emerged in every age, whether to
respond to a driving need, a mission, or to pursue a dream
of what could be, a vision – and people have surged
forward to join them in their quest and to become part of
it.

-- Were they selected / grasped the moment?

-- Leadership is situational in a time or need. Once the

need is felt to have been met the establishment will
usually salvage what is relevant and return to things as
they were

-- Leaders may outline strategy but the detail of planning

and the
resources for implementation become a matter for
management
Leadership Perspectives
The study of leaders began as an effort to
identify the personal characteristics and
personality traits of leaders


Trait – based studies held that leaders were

born, not made
Leadership Perspectives
Is one leadership style more effective
than another leadership style?
Attention shifted from a concern of ‘who
the leader is’ to ‘what the leader does’
The overall goal of the behavioural
approach was to identify and measure
relevant leadership actions and
behaviours that lead to high
subordinate productivity and morale
OHIO Leadership Studies : identify relevant leadership
behaviour and how often leaders exhibited such behaviours

Consideration : leader’s concern for people and interpersonal

relationships

Initiating Structure : leader’s concern for accomplishing the task

Michigan Leadership Studies : identification of relationships

among leader behaviour, group processes and group
performance

Task orientation : planning and scheduling the work

Relationship orientation : supportive and helpful with subordinates

Participative leadership : more group supervision and group meetings

instead of supervising each subordinate separately

Peer leadership (Bowers and Seashore, 1966) : leadership functions

can be carried out by someone besides the designated leader of a group
Mathew Stewart : The management myth : Why the experts
keep getting it wrong

-- after completing a doctorate in philosophy, took up a job with a

management consulting firm
-- with no knowledge of or background in management, he
advised CEOs of top companies at a billing rate of half a million
dollars a year
-- he ultimately became partner of the consulting firm
-- the firm itself went off a few years later
-- being unemployed, decided to explore management literature
-- started reading the books that he acquired before but never
read
-- diligently explored organizational behaviour and strategy as to
focus on the creation of ‘excellence’ in companies
-- Hamel and Prahalad, core competence, NEC – Japan, turned out
to be under performer in the very next year
-- Competing for the future : except HP all companies had a
severe downturn, Enron was proclaimed as the America’s most
innovative company
-- In search of excellence : two ex-Mckinsey consultants, Tom
Peters and Robert Waterman, listing the attributes of high-
performing companies, after evaluating 43 companies

-- two years later, half of them were in trouble, five years later
almost all showed signs of decline

-- hard skills can be easily picked up by B-School graduates, so

also by the engineering graduates, what about the ethics,
leadership, human relations, strategy design……etc.
 Task-Oriented Behaviors
Organize work activities to improve
efficiency
Plan short-term operation
Assign work to groups or individuals
Clarify what results are expected for a task
Set specific goals and standards for task
performance
Explain rules, policies, and stand operating
procedures
Direct and coordinate work activities
Monitor operations and performance
Resolve immediate problems that would
 Relations-Oriented Behaviors

 Provide support and encouragement to someone with a

difficult task
 Express confidence that a person or group can perform a
difficult task
 Socialize with people to build relationships.
 Recognize contributions and accomplishments
 Provide coaching and mentoring when appropriate
 Consult with people on decisions affecting them
 Allow people to determine the best way to do a task
 Keep people informed about actions affecting them
 Help resolve conflicts in a constructive way
 Use symbols, ceremonies, rituals, and stories to build
team identity
 Recruit competent new members for the team or
organization
 Change-Oriented Behaviors

 Monitor the external environment to detect threats and

opportunities
 Interpret events to explain the urgent need for change
 Study competitors and outsiders to get ideas for
improvements
 Envision exciting new possibilities for the organization
 Encourage people to view problems or opportunities in a
different way
 Develop innovative new strategies linked to core
competencies
 Encourage and facilitate innovation and
entrepreneurship in the organization
 Encourage and facilitate collective learning in the team
or organization
 Experiment with new approaches for achieving
objectives
Research results :

following behaviours were found :

-- planning, coordinating, and organizing

-- supervising subordinates (directing, instructing, monitoring

performance)

-- establishing and maintaining good relations with subordinates, peers,

superiors, and even outsiders

-- responsibility for carrying out and implementing organizational policies,

making necessary decisions

So you can plan how to balance your leadership orientation….

The strategic leader :

The strategic leader, usually the dynamic chief executive of an

organization, is characterized by a single-minded determination
that the enterprise will succeed and continue to succeed in the
achievement of its goals

-- A dependence on the efforts of employees fully committed to

their roles

-- culture of open communication and mutual trust

-- people who do not share this motivation and commitment will

not stay

The leader is hands-on in all major issues, and, perhaps without

being consciously aware of it, constantly uses the skills both of
management and leadership (authority and influence).
Efficiency and Process Reliability

Performance management and goal

setting programs (e.g.,MBO, zero
defects)
Process and quality improvement
programs (quality circles,TQM, Six
Sigma)
Cost reduction programs (downsizing,
outsourcing, just-in-time inventory)
Structural forms (functional
specialization, formalization,
standardization)
Appraisal, recognition, and reward
systems focused on efficiency and
Human Resources and
Relations
Quality of worklife programs (flextime, job
sharing, child care, fitness center)
Employee benefit programs (health care,
vacations, retirement, sabbaticals)
Socialization and team building (orientation
programs, ceremonies and rituals, social
events and celebrations)
Employee development programs (training,
mentoring, 360 feedback, education
subsidies)
Human Resources and
Relations
Human resource planning (succession
planning, assessment centers, recruiting
programs)
Empowerment programs (self-managed
teams, employee ownership, industrial
democracy)
Recognition and reward programs focused
on loyalty, service, or skill acquisition

Innovation and Adaptation
Competitor and market analysis
programs (market surveys, focus
groups, consumer panels,
comparative product testing,
benchmarking competitor products
and processes)
Innovation programs (intrapreneurship,
quality circles, innovation goals)
Knowledge acquisition (consultants,
joint ventures, import best practices
from outside)
Organizational learning (knowledge
management systems, postmortums,
Innovation and Adaptation
Temporary structural forms for
implementing change (steering
committee, task forces)
Growth and diversification programs
(mergers and acquisitions, franchises,
joint ventures)
Structural forms (research
departments, small product divisions,
product managers crossfunctional
product development teams, facilities
designed to encourage innovation)
Appraisal, recognition, and reward
systems focused on innovation and
The “CEO” Leader :

Ensures that all in-house activities are fully competent to meet

the demands on them and are synchronized and coordinated

Dual responsibility of meeting work targets and of creating a

working
environment in which people are fully informed about what is
happening, are
constantly challenged to seek ways of adding value and reducing
costs and where special effort is recognized
The Work team Leader :

-- Individual tasks are defined and assigned.

-- The work flow and performance standards are programmed.
-- Work is usually under pressure with deadlines.

Initiating regular short team meetings to ensure that everyone is

kept fully aware of what is happening and then by encouraging
and stimulating ideas on where improvements might be made,
costs reduced or value added

how the employees feel about their tasks, each other, their
employer and their customers/clients

In staff appraisal discussions, either a coaching or a training need

can be identified
-- Cognitive abilities : mental ability test scores; general
intelligence level, creative thinking, analytical and decision
making skills, structural analysis and planning

-- Personality : emotional stability; conscientiousness;

extroversion; agreeableness; openness; “intuition-thinking”;
optimism; proactivity; adaptability; nurturance; internal locus of
control

-- Motivation : need for power and achievement; need for

dominance; need for responsibility
“motivation to lead” (affects a leader’s or leader-to-be’s decision
to assume leadership training, roles, and responsibilities and that
affects his or her intensity of effort at leading and persistence as
a leader)

-- Social appraisal skills / Social intelligence : the ability to

understand the feelings, thoughts, and behaviors of persons,
including oneself, in interpersonal situations and to act
appropriately upon that understanding / Self-monitoring;
Behavioural flexibility
Very easily upset Neuroticism Very
unemotional

Highly extroverted Extraversion

Highly introverted

Wide range of interests Openness Very expert

in one area

Open to new ideas Agreeableness Very

fixed views

Very committed & Conscientiousness Very

unreliable
organized
Neuroticism :

someone who gets enthused and excited about ideas, shows their
emotions so that followers know how they feel
someone who can control their emotions quite well, not over excited and
make rational decisions

Extraversion :

someone who is good with people, able to get on well and show an
interest in the people being led
someone who is able to be a bit detached from the team, not trying to be
one of the crowd, and able to earn respect

Openness :

someone with broad interests, who knows about all aspects of the work
being done by the people being led
very knowledgeable about the technical aspects of the job, seen as an
expert by those being led
Agreeableness :

someone who is willing to listen to others and change own views in the
light of discussions
someone who is clear in own ideas and beliefs, does not flit from one to
another to follow what others say

Conscientiousness :

someone who is focused, gets the job done and does not leave loose ends
untied
someone who is able to generate ideas and get things rolling, delegates
responsibility for detail to others
Attributes of Leaders :

Problem – solving skills / Practical intelligence : problem

construction and generation of solutions; developmental work
experiences; cognitive processing; higher tacit knowledge

Outcome of attributes :

-- Leader traits contribute significantly to the prediction of leader

effectiveness, leader emergence, and leader advancement

-- Leadership is best predicted by an amalgamation of attributes

reflecting cognitive capacities, personality orientation, motives
and values, social appraisal skills, problem-solving competencies,
and general and domain-specific expertise

-- The constellation of critical leader attributes includes traits that

promote a leader’s ability to respond effectively and
appropriately across situations affording qualitatively different
performance requirements
Leadership Skills : (You can rate yourself on a scale of 1 to 5)
-- Communicating information to other people
-- Listening and absorbing information from others
-- Demonstrating a sense of vision, a direction for self and others
-- Motivated to achieve personal goals, having personal drive
-- Dependable, conscientious and persistent – gets things done
-- Able to motivate other people to work towards goals
-- Innovative, keen to try new ideas
-- Honest, shows integrity
-- Fair, treats people equally
-- Trusted and trustworthy
Leadership Skills : (You can rate yourself on a scale of 1 to 5)
-- Self-confident, willing to accept challenges
-- Able to assess and take appropriate risks
-- Emotionally stable but not afraid to show emotions, when
appropriate
-- Sensitive to others’ emotional state, caring about others
-- Willing to earn, not afraid to ask when meeting something new
-- Interested in and valuing others
-- Willing to make decisions and take responsibility
-- Working well in a team
-- Recognizing others’ achievements
-- Technically competent
 Blake and Mouton Managerial Grid (1969)

9 (1,9) (9,9)
8 Country Club Team Management
7
Concern for People

6 Middle-of-the-Road

5 (5,5)

3
2 Impoverished Authority-Compliance
1 (1,1) (9,1)
1 2 34 5 6 7 8 9
Concern for Production
-- Blake and Mouton (1982) proposed that an effective leader is
not someone who merely uses a mix of task and relations
behaviours, but rather someone who selects specific forms of
behaviour that simultaneously reflect a concern for both task and
people.

-- They also recognized the need for leaders to select specific

forms of behaviour that are appropriate for a particular time or
situation.
 Conceptions of Power and
Influence

Authority – the power / right to do

something ; the power to give orders to
people (dictionary)
Authority – The rights, prerogatives,
obligations, and duties associated with
particular positions in an organization or
social system
Power – Capacity of one party to influence
another party
Influence - the effect that
somebody/something has on the way a
person thinks or behaves or on the way
Influence Processes
Instrumental Compliance – The target
person carries out a requested action for
the purpose of obtaining a reward or
avoiding punishment


Personal Identification – The target person

imitates the agent’s behavior or adopts
the same attitudes to please the agent
and to be like the agent


Internalization – The target person

becomes committed to support and
implement the agent’s proposals because
Outcomes of Influence
Attempts
Compliance – The target person is willing to
do what the agent asks but is apathetic
rather than enthusiastic about it and will
make only a minimal effort
Commitment – The target person internally
agrees with a decision or request and
makes a great effort to carry out the
request
Resistance – The target person is opposed
to the proposal or request and actively
tries to avoid carrying it out
Power Types and Sources
Power and Influence by Leaders :

-- effective leaders rely more on personal power than on position

power, although position power has got to play a major role in
the context of organizational leadership

-- the required position power necessary for leader effectiveness

depends on the nature of organization, task, and subordinates

-- leaders use power in a subtle, careful fashion that minimizes

status differentials and avoids threats to the target person’s self-
esteem

-- the proactive influence tactics include rational persuasion,

consultation, collaboration, and inspirational appeals; the tactics
used depends on the situation faced and the other individual is a
subordinate / peer / superior
-- Participative leadership involves efforts by a manager to encourage and
facilitate participation by others in making decisions that would otherwise
be made by the manager alone

-- participation can take many forms ranging from revising a tentative

decision after receiving protests / resistance, to asking for suggestions
before making a decision, to asking an individual / group to jointly make a
decision, to allowing others to make a decision subject to the manager’s
final authorization

-- participation is unlikely to be effective if participants do not share

leader’s objectives, do not want to take responsibility in decision-making,
distrust the leader, time pressure is there, wide dispersion of participants

-- for Group participation the manager should have sufficient skill in

managing conflict, facilitating constructive problem solving, and dealing
with common process problems that occur in group functions
Varieties of Participation
Autocratic Decision
Consultation
Joint Decision
Delegation
Normative Decision Model
Vroom and Yetton Model (1973)
Decision Procedures
AI – Leader makes decision without any
additional information
AII – Leader seeks information and makes
decision alone
CI – Leader shares problem with others
individually and makes decision alone
CII – Leader shares problem with others
collectively and makes decision alone
GII – Group discusses problem collectively
and the group makes the decision
Delegation :

-- the process of giving somebody work or responsibilities

that would usually be yours; delegation of
authority/decision-making (dictionary)

-- a variety of different forms and degrees of power sharing

with individual subordinates
Delegation
 Reasons for Lack of Delegation
Aspects of the leader’s personality
Fear of subordinate making a mistake
High need for personal achievement
Characteristics of the subordinate
Nature of the work
Reasons for Lack of
Delegation
Guidelines for Delegating
 What to Delegate
Tasks that can be done better by a
subordinate
Tasks that are urgent but not high priority
Tasks relevant to a subordinate’s career
Tasks of appropriate difficulty
Both pleasant and unpleasant tasks
Tasks not central to the manager’s role

Guidelines for Delegation
 How to Delegate
Specify responsibilities clearly
Provide adequate authority and specify
limits of discretion
Specify reporting requirements
Ensure subordinate acceptance of
responsibilities
Delegation
 How to Manage Delegation
Inform others who need to know
Monitor progress in appropriate ways
Arrange for the subordinate to receive
necessary information
Provide support and assistance, but avoid
reverse delegation
Make mistakes a learning experience
Conditions Facilitating
Psychological Empowerment
Path-Goal Theory of
Leadership
 “The motivational function of the leader
consists of increasing personal payoffs
to subordinates for work-goal
attainment and making the path to
these payoffs easier to travel by
clarifying it, reducing roadblocks and
pitfalls, and increasing the
opportunities for personal satisfaction
with the leader”
Path – Goal Model, House and Mitchell,
1974

Leader behaviour is acceptable and

satisfying to followers to the extent
that they see it as an immediate
source of satisfaction or as instrument
to future satisfaction


Leader behaviour is motivational to the

extent that it makes followers’ need
satisfaction contingent on effective
performance, and it provides coaching,
guidance, support, and rewards
necessary for the effective
performance, which are otherwise not
available in the work situation
Distinctive Leadership Styles
Directive – leader tells subordinates what is
expected of them, gives specific guidance
as to what should be done, and shows
how to do it
Supportive – leader is friendly and
approachable, shows concern for the
status, well-being and needs of
subordinates
 Participative – leader consults with
subordinates, solicits their suggestions, and
takes into consideration their ideas before
making a decision
 Achievement – oriented – leader sets
challenging goals, expects subordinates to
Path-Goal Theory: Major Propositions
HERSEY & BLANCHARD – SITUATIONAL
LEADERSHIP (1969)

M1 : person unable and unwilling to

perform (‘tell’ style of leadership)
M2 : person unable but willing to perform
(‘sell’ style of leadership)
M3 : person able but unwilling to perform
(‘participate’ style of leadership)
M4 : person able and willing to perform
(‘delegate’ style of leadership)
 Leader Actions to Deal with Deficiencies in
Intervening Variables
 Subordinates are apathetic or discouraged about the work
 Set challenging goals and express confidence
subordinates can attain them
 Articulate an appealing vision of what the group
could accomplish or become
 Use rational persuasion and inspirational appeals to
influence commitment
 Lead by example
 Use consultation and delegation
 Provide recognition
 Reward effective behavior


 Subordinates are confused about what to do or how to do

their work
 Make clear assignments
 Set specific goals and provide feedback about
performance
 Provide more direction of ongoing activities
 Provide instruction or coaching as needed
 Identify skill deficiencies and arrange for necessary
skill training
 Leader Actions to Deal with Deficiencies in
Intervening Variables

The group is disorganized and/or it uses weak



performance strategies
 Develop plans to accomplish objectives
 Identify and correct coordination problems
 Reorganize activities to make better use of people,
resources, and equipment
 Identify and eliminate inefficient and unnecessary
activities
 Provide more decisive direction of ongoing activities
in a crisis


Little cooperation and teamwork exist among



members of the group

 Emphasize common interests and encourage
cooperation
 Encourage constructive resolution of conflict and
help mediate conflicts
 Increase group incentives and reduce competition
 Use symbols and rituals to build identification with
 Leader Actions to Deal with Deficiencies in
Intervening Variables

The group has inadequate resources to do the



work
 Requisition or borrow specific resources needed
immediately for the work
 Find more reliable or alternative sources of supplies
 Ration available resources if necessary
 Initiate improvement projects to upgrade equipment
and facilities
 Lobby with higher authorities for a larger budget


External coordination with other subunits or



outsiders is weak
 Network with peers and outsiders to develop more
cooperative relationships
 Consult more with peers and outsiders when making
plans
 Keep peers and outsiders informed about changes
 Monitor closely to detect coordination problems
quickly
LIKERT’S SYSTEM FOUR MODEL
(1965)
 System 1 Exploitative Authoritative – acts in an autocratic manner
and exploits the subordinates;
 In this type of management system the job of employees/subordinates
is to abide by the decisions made by managers and those with a higher
status than them in the organization. The subordinates do not participate
in the decision making. The organization is concerned simply about
completing the work. The organization will use fear and threats to make
sure employees complete the work set. There is no teamwork involved.
 System 2 Benevolent Authoritative – maintains strict control over the
subordinates in a paternalistic manner
 Just as in an exploitive authoritative system, decisions are made by
those at the top of the organization and management. However
employees are motivated through rewards (for their contribution) rather
than fear and threats. Information may flow from subordinates to
managers but it is restricted to “what management want to hear”.
In this type of management system, subordinates are motivated by
rewards and a degree of involvement in the decision making process.
Management will constructively use their subordinates ideas and opinions.
However involvement is incomplete and major decisions are still made by
senior management. There is a greater flow of information (than in a
benevolent authoritative system) from subordinates to management.
Although the information from subordinate to manager is incomplete and
euphemistic.

System 4 Participative / Democratic – makes decisions by consensus

or majority

Management have complete confidence in their subordinates/employees.

There is lots of communication and subordinates are fully involved in the
decision making process. Subordinates comfortably express opinions and
there is lots of teamwork.

Teams are linked together by people, who are members of more than one
team. Likert calls people in more than one group “linking pins”.

Employees throughout the organization feel responsible for achieving the

organization's objectives. This responsibility is motivational especially as
subordinates are offered economic rewards for achieving organizational
goals which they have participated in setting.
Contingency Theories of Leadership :

-- “ something incidental to something else” (dictionary)

-- no “one best way” to lead in all situations

-- effective leadership styles vary with factors such as the

personality predisposition of the leaders, the characteristics of the
followers, the nature of the tasks done and other situational factors
Leadership Perspectives

The basic tenet of the Contingency

approach is that for the evaluation of
leadership effectiveness, besides the
leader behaviour, some other variables
should also be considered
Fiedler’s contingency model – effective
group performance depends upon a
good ‘fit’ between the leader style of
interacting with his or her
subordinates, and the favorableness of
the situation
Robert Tannenbaum and William Schmidt (1958) :

the use of authority by the manager or freedom given to

subordinates is a function of

(1) forces in the manager (value system, confidence in

subordinates, feelings of security or insecurity),

(2) forces in the subordinate (needs for dependence or

independence, readiness to assume responsibility and to
participate in decision making,

(3) forces in the situation (problem in hand, time pressure, group

composition)

successful leaders accurately assess the forces that determine

what behaviour would be most appropriate in any given situation
and flexible enough to adopt the most functional leadership style
 Boss-centred
Leadership

use of authority by manager (4 – 1) :

-- manager makes decision and announces

-- manager “sells” decision

-- manager presents problem and gets suggestions

-- manager lets group make the decision

use of freedom by subordinates (1 – 4) :

Subordinate-
centred Leadership
Fred Fiedler’s Contingency Model (1964)

Task structure – the extent of clarity,

standardisation, or ambiguity, in the work
activities assigned to the group
Position power – the legitimate formal
authority of the leader
Leader-member relations – the quality of
relationship between subordinates and
the leader
A high control situation : the leader has a great degree of control
over situations if leader-member relations are good, the task is
highly structured, and he / she is also equipped with the resources
to give rewards or the power to withhold them

A moderate control situation : the leader might have a good

relationship with his members, but the task structure and position
power may be low

A low control situation : if a group is not interested in supporting

the leader, task structure is low, leader’s position power is also
weak, then the leader would find himself in a low control situation
Task-oriented leadership

would be advisable in natural disaster, like a flood or fire. In an

uncertain situation the leader-member relations are usually poor,
the task is unstructured, and the position power is weak.

The one who emerges as a leader to direct the group's activity

usually does not know subordinates personally. The task-oriented
leader who gets things accomplished proves to be the most
successful.

If the leader is considerate (relationship-oriented), they may

waste so much time in the disaster, that things get out of control
and lives are lost.
-- Blue-collar workers generally want to know exactly what they are
supposed to do. Therefore, their work environment is usually highly
structured. The leader's position power is strong if management backs their
decision.

-- Finally, even though the leader may not be relationship-oriented, leader-

member relations may be extremely strong if they can gain promotions and
salary increases for subordinates. Under these situations the task-oriented
style of leadership is preferred over the (considerate) relationship-oriented
style.
The considerate (relationship-oriented) style of leadership can be
appropriate in an environment where the situation is moderately favorable
or certain. For example, when

(1)leader-member relations are good,

(2)
(2) the task is unstructured, and

(3) position power is weak. Situations like this exists with research
scientists, who do not like superiors to structure the task for them. They
prefer to follow their own creative leads in order to solve problems. In a
situation like this a considerate style of leadership is preferred over the
task-oriented
LPC Contingency Theory
 LPC Score
High LPC – A leader primarily motivated to
have close, interpersonal relationships
with other people
Low LPC – A leader primarily motivated by
achievement of task objectives
 Situational Variables
Leader-member relations
Position Power
Task Structure

Guidelines for Managerial
Leadership
 Maintain situational awareness
 Use more planning for a long, complex
task
 Consult more with people who have
relevant knowledge
 Provide more direction to people with
interdependent roles
 Provide more direction and briefings when
a crisis occurs
 Monitor a critical task or unreliable person
more closely
 Provide more coaching to an inexperienced
subordinate
Embedded Leadership Roles in Line Functions :

For the operating level manager the key activities are:

-- creating and pursuing new growth opportunities; attracting and

developing resources and competences; and managing
continuous performance improvement.

-- The operating level entrepreneur must be a results-oriented

competitor, with detailed operating knowledge focusing energy
on opportunities.

-- Key competences include creativity, technical knowledge and

the ability to motivate people.
Embedded Leadership Roles in Line Functions :

For the senior-level manager the key activities are:

-- developing individuals and supporting their activities; linking

dispersed knowledge, skills and best practices across units; and
managing the tension between short-term performance and long-
term ambition.

-- The senior-management developer must be a people-oriented

integrator with broad organizational experience able to develop
people and relationships.

-- Key competences include supportiveness, understanding inter-

personal dynamics and the ability to delegate, develop and
empower.
Embedded Leadership Roles in Line Functions :

For the top-level manager the key activities are:

-- challenging embedded assumptions while establishing a

stretching opportunity horizon and performance standards;
institutionalizing a set of norms and values to support co-
operation and trust; and creating an overarching corporate
purpose and ambition.

-- The top-level leaders must be institution-minded visionaries,

understanding the company in context, balancing alignment and
challenge.

-- Key competences include challenging, understanding the

organization as a system, and the ability to inspire confidence
and belief in the institution and its management.
Leader-Member Exchange Theory (LMX) :

-- describes the role-making processes between a leader and

each individual subordinate and the exchange relationship that
develops over time (Graen and Cashman, 1975; Graen and Uhl-
Bien, 1991)

-- exchange relationships formed on the basis of personal

compatibility, subordinate competence, and dependability

-- the basis for establishing a high-exchange relationship is the

leader’s control over outcomes that are desirable to a
subordinate (assignment to interesting and desirable tasks,
delegation of higher responsibility and authority, sharing more
information, allowing participation in decision-making, tangible
rewards such as pay increase and other benefits, personal
support and approval, and facilitation of subordinate’s career

-- the subordinate is expected to work harder, more committed to

task objectives, loyal to the leader, share some of the leader’s
administrative duties
Leader-Member Exchange Theory (LMX) :

-- a low exchange relationship is characterized by a relatively

low level of mutual influence

-- the “out-group” subordinates need only comply with formal

role requirements

-- three stages : initial testing phase, the refined exchange,

and the matured stage (self-interest transformed into mutual
commitment to the mission and objectives of the work unit)

Type of exchange relationship influences manager’s

attribution :

-- Less critical when there is a high-exchange relationship

-- Effective performance more likely to be attributed to internal
factors where there is a high-exchange relationship
-- Ineffective performance more likely to be attributed to
external factors when there is a high-exchange relationship
-- Opposite is true for low-exchange relationships
themselves to achieve the self-direction and self-motivation
necessary to perform

-- Behavior-focused strategies involve the self-regulation of behavior

through the use of self-assessment, self-reward, and self-discipline
and are particularly
useful in managing behavior related to the accomplishment of
necessary but unpleasant tasks
-- Natural reward strategies involve seeking out work activities that
are inherently enjoyable and includes the focusing of attention on
the more pleasant or gratifying aspects of a given job or task rather
than on the unpleasant or difficult aspects
-- Constructive thought pattern strategies involve the creation and
maintenance of functional patterns of habitual thinking and include
the evaluation and challenging of irrational beliefs and assumptions,
mental imagery of successful future performance, and positive self-
talk

You know what you Know - √

You know what you don’t know – “known risk’
You don’t know about what you don’t know – “unknown risk”
Visionary Leadership :

-- communicating a compelling ‘vision’

-- kaleidoscope thinking, based upon being turned into the wider

environment; the source of the vision

-- macro issues : networking; team-working; and promoting a

culture of excellence

-- interpersonal issues : two way communication; people

orientation; participative style; high visibility

-- personal traits including positive self-regard; persistence;

perseverance; consistency
Influence tactics : an interactive process in which people
attempt to convince other people to believe and/or act in certain
ways

-- Rational persuasion aims at changing the target’s beliefs

that a request or proposal is feasible and consistent with task
objectives through the use of explanations, factual evidence, and
logical arguments

-- Inspirational appeals refer to the use of values and ideals to

arouse an emotional response in the target

-- Consultation is a participative approach in which the target is

encouraged to contribute and suggest improvements in planning
how to carry out a request or to implement changes
Transaction : Agreement, contract, exchange, understanding,
or transfer of valuables that occurs between two or more parties
and establishes a legal obligation

Transformation : change of form / condition; Any change in

an organism which alters its general character and mode of life;
Change of one from of material into another; A change in
disposition, heart, character, or the like, conversion; The change,
as of an equation or quantity, into another form without altering
the value
Transformational and Transactional
Leadership

 Transformational Behaviors
 Idealized influence
 Individualized consideration
 Inspirational motivation
 Intellectual stimulation


 Transactional Behaviors
 Contingent reward
 Active management by exception (looking
for mistakes and enforcing rules and
regulations to avoid them)
 Passive management by exception
(reinforcing punishment for deviations
from performance standard) [Bass and
Avollio, 1990]
Influence Processes

 Transactional Leadership
 Instrumental compliance


 Transformational Leadership
 Internalization
 Personal identification
Transformation vis-à-vis Charismatic Leadership :

-- Transformational leaders raise followers to a higher level of needs and aspirations

whereas transactional leaders identify the existing needs and goals of their
followers and provide rewards for the fulfillment of these needs and goals.

-- Transformational leadership as the opposite end of a single continuum from

transactional leadership; leaders may exhibit a variety of patterns of
transformational and transactional leadership

-- Charismatic influence has come to be one of the central dimensions of

transformational leadership; charismatic leadership can have positive or negative
consequences, whereas the positive category can be the transformational effects of
charismatic leadership

-- Organizational context either supports or impedes the operation of

transformational leadership

-- Transformational leadership leads to motivational and moral elevation of

followers; followers and leaders both raise each other to higher levels of motivation
and morality
Charisma : The word charisma  (origin from the Greek word
χάρισμα (kharisma) , "gift" or "divine favor,” refers to a rare trait
found in certain human personalities usually including extreme
charm and a 'magnetic' quality of personality and/or appearance
along with innate and powerfully sophisticated personal
communicability and persuasiveness.

Earlier theories - leadership behaviour in terms of leader-

follower relationships; providing direction and support;
reinforcement mechanisms

Modern leadership theories - symbolic leader behaviour;

visionary and inspirational ability; non-verbal communication;
appeal to ideological values; intellectual stimulation and
empowerment of followers

Charismatic leaders transform organizations by infusing into

them ideological values and moral purpose that inducing strong
commitment rather than by affecting the instrumental cognitions
or the task environment of followers, or by offering material
incentives and the threat of punishment
Charismatic Leadership by Max Weber (1947):
“resting on devotion to the exceptional sanctity, heroism or
exemplary character of an individual person, and of the
normative patterns or order revealed or ordained by him”

“Charisma” as “a certain quality of an individual personality, by

virtue of which he is set apart from ordinary men and treated as
endowed with supernatural, superhuman, or at least specifically
exceptional powers or qualities. These are such as not accessible
to the ordinary persons, but are regarded as of divine origin or
exemplary, and on the basis of them the individual concerned is
treated as a leader”

Robert House (1977) : Dominant; Strong desire to influence

others; self-confidence; Strong sense of one’s own moral values

Conger and Kanungo (1998) : Vision and articulation;

Sensitivity to the environment; Sensitivity to member needs;
Personal risk taking; Performing unconventional behaviour
 Charismatic Leadership
 Leader Traits and Behaviors
Articulating an appealing vision
Using strong, expressive forms of
communication when articulating the
vision
Taking personal risks and making self
sacrifices to attain the vision
Communicating high expectations
Expressing confidence in followers
Modeling behaviors consistent with the
vision
Managing follower impressions of the
leader
Building identification with the group or
organization
 Charismatic Leadership
 Influence Processes
Personal identification
Social identification
Internalization
Individual self-efficacy and collective
efficacy
 Facilitating Conditions
Leader’s vision is congruent with existing
follower values and identities
Task roles defined in ideological terms that
appeal to followers
Crisis situation
 Purposes for which Companies Delegate
Responsibility to Self-Managed Teams

 Set work schedules

 Deal directly with external customers
 Set performance targets
 Conduct training
 Purchase equipment or services
 Deal with vendors or suppliers
 Prepare budgets
 Hire team members
 Fire team members

Guidelines for Leading
Meetings

Inform people about necessary

preparations for a meeting
Share essential information with group
members
Describe the problem without implying the
cause or solution
Allow ample time for idea generation and
evaluation
Separate idea generation and from idea
evaluation
Guidelines for Leading
Meetings

Encourage and facilitate participation

Encourage positive restatement and
idea building
Use systematic procedures for solution
evaluation
Encourage members to look for an
integrative solution
Encourage efforts to reach consensus
when feasible
Clarify responsibilities for
implementation
-- Effective leadership is often viewed as the foundation for
organizational
performance and growth

-- organizational leaders may be better equipped to create

conditions necessary to facilitate the growth of future leaders

-- Leader effectiveness can also be evaluated by reference to

follower attitudes, behavior, satisfaction, and followers’
acceptance of the leader

-- evaluate leadership effectiveness over time; identify specific

events that have led to successful and/or unsuccessful
organizational achievements

Timely leadership effectiveness :

-- Contemporary leadership orientation refers to a derivation and focus on

the organizational performance of today’s corporate decision-making and
business
behaviour

-- Historic leadership orientation refers to a derivation and focus on the

organizational performance of yesterday’s corporate decision making and
business behaviour
organizational performance of tomorrow’s corporate decision-making and
business behaviour

Timely leadership effectiveness occurs when all three

orientations are synchronized

Contextual effectiveness :

-- Intrinsic leadership orientation refers to a derivation and focus on the

organizational performance in a particular context of corporate decision-
making and business behaviour

-- Extrinsic leadership orientation refers to a derivation and focus on the

organizational performance in some other contexts of corporate decision
making and business behaviour

-- Holistic leadership orientation refers to a derivation and focus on the

organizational performance in all contexts of corporate decision making
and business behaviour

Contextual leadership effectiveness occurs when all three

orientations are
synchronized
-- Point vision refers to non-synchronization of corporate decision making
and business behaviour

-- Tunnel vision represents a partial synchronization of corporate decision-

making
and business behaviour

-- Broad vision represents the complete synchronization of corporate

decision-making and business behaviour

serendipity : “the making of happy and unexpected discoveries by

accident or when looking for something else”

-- Opportunistic leadership effectiveness in organizational performance

refers to corporate decision making and business behaviour that are
based upon a high degree of serendipity and low level of skillfulness in
planning, implementation and evaluation

-- Entrepreneurial leadership effectiveness in organizational performance

refers to corporate decision making and business behaviour that are
based upon high degrees of skillfulness and serendipity in planning,
implementation and evaluation
-- Bereft leadership effectiveness in organizational performance
refers to
corporate decision-making and business behaviour that are based
upon low
degrees of both skillfulness and of serendipity in planning,
implementation and evaluation

-- Genuine leadership effectiveness in organizational performance

refers to the
idea that in corporate decision-making and business behaviour
decisions are
based upon a high degree of skillfulness, while serendipity is low
in planning,
implementation and evaluation
Common notions about leadership failure:

-- Failing leaders were stupid and incompetent – lacking in talent.

Most leaders are otherwise very intelligent and have considerable
industry-specific knowledge.

-- Failing leaders were caught by unforeseen events.

-- Failing leaders exhibited a failure to execute.

-- Failing leaders weren’t trying or working hard enough.

-- Failing leaders lacked leadership ability. All others were able to

get people to follow the course of action that was set.

-- The company lacked the necessary resources.

-- Failing leaders were a bunch of crooks.

Kellerman (2004) focuses on two basic categories of bad
leadership, ineffective and unethical, identifying seven types of
bad leaders that are most common :

Incompetent – lack will or skill to create effective action or

positive change.

Rigid – stiff, unyielding, unable or willing to adapt to the new.

Intemperate – lacking in self-control.

Callous – uncaring, unkind, ignoring the needs of others.

Corrupt – lies, cheats, steals, places self-interest first.

Insular – ignores the needs and welfare of those outside the

group.

Evil – does psychological or physical harm to others.

they are unable to understand other people’s perspectives. They
lack socio-political intelligence. This produces an insensitivity to
others which limits their abilities to get work done through
others. Work colleagues do not like or do not trust (or both) the
leader.

Dotlitch and Cairo (2003) : identify 11 leader behaviors that

derail careers of formerly successful executives:
(1) arrogance – you think you’re right and everyone else is wrong;
(2) melodrama – you need to be the center of attention;
(3) volatility – you are subject to mood swings;
(4) excessive caution – you are afraid to make decisions;
(5) habitual distrust – you focus on the negative;
(6) aloofness – you are disengaged and disconnected;
(7) mischievousness – you believe that rules are made to be
broken;
(8) eccentricity – you try to be different just for the sake of it;
(9) passive resistance – what you say is not what you believe;
(10) perfectionism – you get the little things right and the big
things wrong; and
(11) eagerness to please – you try to win the popularity contest.
Fulmer and Conger (2004) :

(1) Failing to deliver results:

. Fails to hold self and others accountable for results.
. Overpromises and underdelivers.

(2) Betraying trust:

. Says one thing and does another.
. Makes excuses or blames others.
. Shades, manages, withholds information to promote his/her personal or
functional agenda.

(3) Resisting change:

. Has trouble with adapting to new plans, programs or priorities.
. Being exclusive vs inclusive
. Fails to understand and take into account others perspectives.
. Devalues the opinions and suggestions of others.
. Fails to engage others with different perspectives or skills than
him/herself.

(4) Failing to take a stand:

. Is indecisive.
. Stays on the force on tough issues; won’t weigh in until the boss weighs
in.

(5) Over leading and under managing:

. Lets details fall through the cracks.
. Fails to get involved with the day-to-day workings of the business unit.
Other lists of executive failings (McCall and Lombardo, 1983)
include:

. overreaching strategically;

. being risk-averse;

. running roughshod over subordinates;

. being cold and aloof;

. focusing on empire building and other kinds of self-

aggrandizement;

. being inordinately concerned with getting ahead;

. not distinguishing clearly enough between high and low priority

items;

. pushing themselves too hard and burning out;

. pushing their people too hard and burning them out; and

. being rigid or difficult to influence.

McCall and Lombardo (1983) identified the ten most common
causes of leadership derailment :

(1) an insensitive, abrasive, or bullying style;

(2) aloofness or arrogance;

(3) betrayal of personal trust;

(4) self-centered ambition;

(5) failure to constructively address an obvious problem;

(6) micromanagement;

(7) inability to select good subordinates;

(8) inability to take a long-term perspective;

(9) inability to adapt to a boss with a different style; and

(10) overdependence on a mentor.

(1) Excitable – moody, easily annoyed, hard to please, and
emotionally volatile.
(2) Skeptical – distrustful, cynical, sensitive to criticism, and
focused on the
negative.
(3) Cautious – unassertive, resistant to change, risk averse, and
slow to make
decisions.
(4) Reserved – aloof, indifferent to the feelings of others, and
uncommunicative.
(5) Leisurely – overtly cooperative, but privately irritable,
stubborn, and
uncooperative.
(6) Bold – overly self-confident, arrogant, with inflated feelings of
self-worth.
(7) Mischievous – charming, risk taking, limit testing and seeking
excitement.
(8) Colorful – active, energetic, entertaining, dramatic, and
attention seeking.
(9) Imaginative – creative but thinking and acting in unusual or
eccentric ways.
(10) Diligent – meticulous, precise, conscientious, hard to please,
and perfectionist.
(11) Dutiful – eager to please and reluctant to act independently
or against popular opinion.
-- Dysfunctional behaviors associated with arrogance,
cautiousness, volatility, and skepticism negatively affected
performance ratings

-- inability to work with peers matters

-- bad luck such as a business recession can play a role in failure

-- failure was associated with inability to develop effective

interpersonal relationships (arrogant, stubborn, egocentric).

-- some leaders were afraid to take risks and make errors

(cautious, avoid responsibility).

-- excitable individuals were found to have difficult relationships

(impatient, moody, negative, volatile, emotional instability).

-- skepticism and distrust will reduce leaders effectiveness in

motivating others (cynical, untrustworthy).
What stressors trigger your derailers (environments, events,
problems,
decisions)?

Analyze your potential derailers (your business failures, are any

common
behaviors involved in these?).

Get feedback on what you can do to be a better leader.

Get confident.

Talk about / share the derailers with your own / management

team.

Get a coach.

Use small failures to prompt awareness, learning and change.

Head & Heart How can I choose between these? The toughest choices are between doing what
makes sense and what feels right. Aligning the two is a source of great power

Inside & Outside How do we meet the demands being placed on us? Organizations do best when
their competencies and values match the demands of their external contexts

Cost & Benefit What is the price of getting what we want? Efforts to predict the future involve risk,
and choosing the course of least pain and greatest gain

Product & Market What are our options for growth? You can change the offering or you can modify
how, where or when it is presented

Change & Stability What do we need to do to adapt? How can we balance change and stability to
stay viable? All systems are in perpetual dynamic tension between the forces for growth and
adaptation on the one hand and integration and stability on the other. Too much of either leads to
chaos or rigidity

Know & Don’t Know What do we know and not know – and what do we know about what we know
and don’t know? We need to understand how others perceive us. The better we know ourselves, the
healthier and more successful we will be

Competing Priorities What should I do first? What’s really more important? We need to avoid making
short-sighted trade-offs to relieve immediate pressures, and instead identify and tackle truly
important tasks

Content & Process Are content and process healthy and aligned? Content is the ‘‘What?’’ process
the ‘‘How?’’ Success in most things requires mastery and alignment of both of these
Fix social gaps – mindsets, people and politics
To shake people free of deeply held assumptions and feelings, we need to
address the mindsets that underlie their decisions and actions.

Who is involved in the situation and who else cares about it?

A simple approach is to identify the self-interests of each involved party,

noting whether they support the change and what they stand to gain or
lose in the process. Politics usually leads to alliances, so look for who are
the natural partners and who will support your point of view.

Fix technical gaps – competencies, processes and technology

It’s one thing to recognize what needs to be done and another to marshal
the necessary skills and resources.
Ask who does what and how we are organized? How do processes and
structures contribute to the dilemma? What are some new ways we could
organize ourselves and design core processes?
Technology can be an enabler or a problem in removing barriers and
bridging gaps. Is the current set of equipment, tools and communication
systems good
enough or not?
-- “Leadership can not be taught but it can be learned”

-- People become leaders by performing deliberate acts of leadership (men

become just by performing just acts, Aristotle)

-- Basic assumption in the entire process is that the leader is both competent
and ethical

-- humility (Collins, 2001), credibility (Kouzes and Posner, 2002), and modesty
(Badarocco, 2002) (all reflecting the current reaction against the cult of
charisma!)

-- Character is the foundation for ethical leadership behavior. It includes

dimensions of integrity, courage, honesty, and the will to do good

-- Compassion is the quality that leaders need in order to empathize with

followers and ultimately to build a benevolent community in which men and
women align themselves with the purpose of the enterprise

-- According to Plato, potential rulers in a just society needed to first serve an

apprenticeship in which they acquired the necessary skills, including a
mastery of philosophy

-- Potential leader in training will develop a portfolio of behaviors to draw upon

to respond to specific challenges. The trial-and-error source of learning can be
augmented by observation and the study of role models and case histories
and Cheese (2005) and represents a comprehensive way that knits
together on-the-job
experience, life experience, and specific skill development. The goal of
experience-based leadership development is to equip employees to
continuously tap into their experiences for insight into what it takes to
lead, what it takes to grow as a leader, and what it takes to develop as an
effective leader.

Formal mentoring
Mentoring is a development relationship between a more experienced or
skilled mentor
and a less experienced or skilled prote´ge´, whereby both mentor and
prote´ge´ benefit
from the relationship (Chao et al., 1992; Day and Allen, 2004).

-- Personal growth experiences include reflection on behaviors, personal

values, and
desires

-- Conceptual understanding focuses on improving the individual’s

knowledge
through exposure to the topic of leadership

-- Feedback helps the leader to learn about certain strengths and

weaknesses in a number of leadership skills

-- Skill building demands that leadership abilities be broken down into

actual mechanical processes that can be ordinarily performed.
Leadership Development at HUL:

HUL has a unique and well recognized management training scheme which
recruits widely from various educational institutions across the country. It has
groomed thousands of young graduates into eminent business leaders who
are now serving both Unilever and the Indian industry.

As many as 195 managers from India working for Unilever in key leadership
positions across the globe. It is not surprising that HUL has been referred to
as the ‘leadership factory’. It has been recognized as among the ‘top ten’
companies for leadership development globally in a survey done by Hewitt
Associates in partnership with Fortune.

Building business leaders can not be a casual exercise undertaken every

once in a while. It has to be a part of the DNA of the organization. At HUL, it
has institutionalized the process of attracting, developing and retaining top
talent.

-- get them early

-- train them well
-- build careers
-- encourage diversity
-- reward top performance
-- instill values
leadership :

Know partiality to be chief cause of all evil. That is to say, if you

show towards anyone more love than towards somebody else,
rest assured, you will be sowing the seeds of future troubles.

If anybody comes to you to speak ill of others, refuse to listen to

him in toto. It is a great sin to listen even. In that lies the germ of
future troubles.

Moreover, bear with everyone's shortcomings. Forgive offences of

your employees. And if you love all unselfishly, all will by degrees
come to love one another. As soon as they fully understand that
the interests of one depend upon those of others, every one of
them will give up jealousy.

The work is spoiled if plans are not kept secret. A work can be
judged by its results only.

Be perfectly pure in money dealings, so long as you have faith

and honesty and devotion, everything will prosper.
Swami Vivekananda on the qualities of organizational
leadership :

Isn't it man that makes money? Where did you ever hear of money
making man? If you can make your thoughts and words perfectly at one, if
you can, I say, make yourself one in speech and action, money will pour in
at your feet of itself, like water.

Calm and silent and steady work and no newspaper humbug, no name-
making, you must always remember.

Each work has to pass through these stages - ridicule, opposition and then
acceptance. Each man who thinks ahead of his time is sure to be
misunderstood.

Push on with your work independently. "Many come to sit at dinner when
it is cooked." Take care and work on.

Be positive, do not criticize others. Give your message, teach what you
have to teach and there stop.
On the importance of Servant Leadership :

You will have take charge of the whole movement, not as a

leader, but as a servant. Do you know the least show of leading
destroys everything by rousing jealousy?

Do not try to lead your employees, but serve them. The brutal
mania for leading has sunk many a great ship in the waters of
life. Take care especially of that, i.e. be unselfish even unto
death, and work.

Be the servant of all, and do not try in the least to govern others.
That will excite jealousy and destroy everything. Nobody will
come to help you if you put yourself forward as a leader. Kill self
first if you want to succeed.