Functions of Management Leading

I. Introduction Leadership is the ability to influence a group towards the achievement of goals. Leading involves influencing others to engage in the work behaviors necessary to reach organizational goals. The source of this influence may be formal, stemming from a position in the organization. But just because a manager has certain formal rights this is no guarantee that he or she can lead effectively. Similarly, leadership may come from anywhere in the organization. Not all leaders are managers, nor are all managers leaders. Brian McAndrew, when the chief executive of the London Borough of Enfield, described leadership as the full- time job of a few and the part time job of many. II. Leadership and Power Authority is the scope and amount of discretion given to a person to make decisions, by virtue of the position held in the organization Responsibility is the ability of a person to account for actions and results. Therefore, it is the obligation to do something; in an organization, it is a duty to carry out assigned tasks. Power can be defined as the capacity a person has to influence behavior of another so that the first acts in accordance with the wishes of the second. Sources of Power i. Coercive Power is defined as being dependent on fear. One reacts to the exercise of this power out of fear of the negative results that might occur if one failed to comply. ii. Reward Power is the opposite of coercive power. People comply with the wishes or directives of another because doing so produces positive benefits. Therefore, a person who can distribute rewards that others view as valuable will have power over those others. iii. Legitimate Power represents the power a person receives as a result of his or her position in the formal hierarchy of an organization. This includes acceptance by members of an organization of the authority of a person. iv. Expert Power is influence wielded as a result of expertise, special skill or knowledge. This only works if others acknowledge the person to be an expert. v. Referent Power is based on identification with a person who has desirable resources or personal traits. Referent power develops out of admiration of another and desire to be like that person. In a sense it is like charisma.

III. Leadership vs Management In defining the nature of leadership, John Adair (1983) said: Leadership is about sense of direction. The word lead comes from the AngloSaxon word common to north European languages which means a road, a way and the path of a ship at sea. Its knowing what the next step is. Managing is a different image. Its from the Latin manus, a hand. Its handling a sword, a ship or horse. Managing is very strong on the idea of controlling, particularly financial control and administration. Leaders are not necessarily good at administration or managing resources. Despite a continuing debate on differences between management and leadership, there is a close relationship between them and it is not easy to separate them as distinct activities. Many methods of management training can also be used as a means of measuring leadership style. IV. Importance of Leading Motivation. People have more flexibility and more choice in their careers, which are themselves are more fluid, so keeping people motivated is very important. Reduce Employee Dissatisfaction Effective process of delegation and empowerment. Helps develop teamwork and the integration of individual and group goals.

V. Approaches to Leadership Due to its complex and variable nature, there are many alternative ways in analyzing leadership. It is helpful, therefore, to have some framework in which to consider different approaches to study the subject. Qualities or Traits Approach - Assumes leaders are born and not made. Leadership consists of certain inherited characteristics or personality traits. Focuses on the person in the job and not on the job itself. 9 Traits of Effective Leaders 1. High level of personal drive o willing to accept responsibility, possess vigor, initiative, persistence, and health o Important because of the possibility of failure in every attempt to achieve certain goals 2. Desire to lead 3. Personal integrity o Personal Integrity is a strongly held sense of commitment to openness, honesty, inclusiveness and high standards in oneself. A person with integrity stands for what is right and acts as a role model to his or her peers. 4. Self-confidence 5. Analytical ability or judgment

6. 7. 8. 9.

o Human skills ability of a good leader to deal with people, both inside and outside the organization Good leaders MUST know how to get along with people, motivate them and inspire them Coaching. Communicating, morale building, training and development, help and supportiveness and delegating o Conceptual Skills ability to think in abstract terms, to see how parts fit together to form the whole. Knowledge of the company, industry or technology Charisma Creativity Flexibility

However, these traits by themselves do not necessarily guarantee success. The secret ingredient of success remains elusive. 4 Key Reasons why Trait Approach hasnt been Successful a. it overlooks the needs of the followers b. it fails to clarify the relative importance of certain traits c. it does not separate cause from effect. Are such leaders successful because of the traits or does the success build the traits? d. It ignores situational factors Trait Theories can also be criticized because: a. No one agrees on the list b. Traits are often so ill-defined that they are unhelpful in practice c. There are too many expectations people who do not have major traits may still succeed as leaders Behavioral Approach - The kinds of behavior of people in leadership positions and the influence on group performance. Draws attention to range of possible managerial behavior and importance of leadership styles. Leadership style is the way in which the functions of leadership are carried out, the way in which the manager typically behaves towards members of the group. There are several approaches used in classifying leadership styles. They are as follows: 1. According to the ways leaders approach people to motivate them 2. According to the way the leader uses power 3. According to the leaders orientation towards task and people Ways Leaders Approach People Positive Leadership when the leaders approach emphasizes rewards. The reward may be economic, like increase in monthly

salary or it may be noneconomic like membership in an any committee Negative Leadership when leaders approach emphasizes punishment. The punishment may take form of reprimand, suspension, or dismissal. Ways Leaders Uses Power Autocratic Leaders. Leaders who make decisions themselves without consulting subordinates. Motivation takes form of threats, punishment, and intimidation of all kinds. o Effective in emergencies and when absolute fellowership is needed. o The disadvantage of autocratic leadership is that the leader receives little, if any, information and ideas from his people as inputs into his decision making. Participative leaders/Democratic Leaders. When a leader openly invites his subordinates to participate or share in decisions, policy-making and operation methods. o Advantages Generates a lot of good ideas Increased support for decisions Reduction of the chance that they will be unexpectedly undermined o Disadvantages Time-consuming Frustrating to people who prefer to see quick decision reached Free-Rein Leaders. Leaders who set objectives and allow employees or subordinates relative freedom to do whatever it takes to accomplish these objectives. o Advantages Enhances job satisfaction of the subordinates Increases morale of subordinates There is a good scope for the development of the subordinates The potential of the subordinates can be optimally utilized. o Disadvantages The subordinates do not get the guidance and support of their leader It ignores the leaders contribution if he/she has done almost nothing Leaders Orientation Towards Task and People Employee Orientation. Basically concern for people. This is reflected in behaviors designed to create climate of warmth, trust and respect. This may be characterized as a participative approach to decision making.

 Task Orientation. Basically concern for task. This is reflected in behaviors used to define activities and assign task, such as planning, organizing and emphasizing the performance needed to achieve goals and objectives.

Contingency Approach - The ability to lead and influence depends on the situation and varies from case to case.

Vroom-Yetton-Jago Decision Model The Vroom-Yetton-Jago Decision Model provides a useful framework for identifying the best leadership style to adopt for the situation you're in. Understanding the Model: When you sit down to make a decision, your style, and the degree of participation you need to get from your team, are affected by three main factors: Decision Quality how important is it to come up with the "right" solution? The higher the quality of the decision needed, the more you should involve other people in the decision. Subordinate Commitment - how important is it that your team and others buy into the decision? When teammates need to embrace the decision you should increase the participation levels. Time Constraints How much time do you have to make the decision? The more time you have, the more you have the luxury of including others, and of using the decision as an opportunity for teambuilding. Specific Leadership Styles The way that these factors impact on you helps you determine the best leadership and decision-making style to use. Vroom-Jago distinguishes three styles of leadership, and five different processes of decision-making that you can consider using: Autocratic you make the decision and inform others of it. There are two separate processes for decision Style: making in an autocratic style: Autocratic 1(A1) you use the information you Process: already have and make the decision Autocratic 2 (A2) you ask team members for specific information and once you have it, you make the decision. Here you don't necessarily tell them what the information is needed for. Consultative you gather information from the Style: team and other and then make the decision. Consultative 1 (C1) you inform team members of what you're doing and may individually ask opinions, Process: however, the group is not brought together for

Style:

Process:

discussion. You make the decision. Consultative 2 (C2) you are responsible for making the decision, however, you get together as a group to discuss the situation, hear other perspectives, and solicit suggestions. Collaborative you and your team work together to reach a consensus. Group (G2) The team makes a decision together. Your role is mostly facilitative and you help the team come to a final decision that everyone agrees on.

Tip: This is a useful model, but it's quite complex and long-winded. Use it in new situations, or in ones which have unusual characteristics: Using it, you'll quickly get a feel for the right approach to use in more usual circumstances.

In general, a consultative or collaborative style is most appropriate when: You need information from others to solve a problem. The problem definition isn't clear. Team members' buy-in to the decision is important. You have enough time to manage a group decision. An autocratic style is most efficient when: You have more expertise on the subject than others. You are confident about acting alone. The team will accept your decision. There is little time available.