Managing People and Organizations

Organization and Groups

Leadership

BITS Pilani
Pilani | Dubai | Goa | Hyderabad
Dr. Shikha Sahai
Learning Objectives

– Define leadership and contrast Leader and Manager.

– Discuss Different Leadership Theories

– Demonstrate the role mentoring plays in our understanding of leadership.

– Address challenges to the effectiveness of leadership.

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What Is Leadership?

• Leadership
– The ability to influence a group towards the achievement of goals

• Management
– Use of authority inherent in designated formal rank to obtain compliance
from organizational members

• Both are necessary for organizational success

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Manager Vs. Leader

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 Identify the Leader and the Manager

Amazing India – a Company into event management and travel has been hired by one of the
leading manufacturing company’s to manage their events and travel. Pravin (CEO of
Amazing India ) wants to find who (amongst the 4 area managers) should be made the
Project In-charge for this mega deal. Pravin calls his 4 area managers to share the BIG
NEWS! All of them are very excited to know about the project. Pravin tells them that this
project would be handled by one of them. Pravin shares with them that employees might be
reluctant to work on this project as it would require lot of travel, extra hours of work,
repetitive changes based on clients need and a constant need to WOW the customers. To find
the most suitable person for the project manager position he asks his area managers- “What
are the two questions you need to address in the first meeting with your team” Following are
the responses given by the 4 area managers:

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 Identify the Leader and the Manager

Amit: This is a very challenging project. What are the skill we possess that will facilitate the
completion of the project? What should be the time frame for completing it?

Vaibhav: This is a very challenging project but if we do it successfully it will give our
company a major competitive advantage. Can we make it a success? What are the new ideas
that we should consider?

Sumit: This is a very exciting assignment. How do we constitute a team for implementation?
What resources are required for implementation?

Priya: This is a very exciting project. Do we want to do it? Can we show to our CEO that we
are the Best?

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Leadership Theories

1. Great Man Theory

2. Trait Theory
3. Behavior Theory
4. Situational Leadership
5. Leader Member Exchange
6. Transactional / Transformational
7. Authentic Leadership

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 Great Man Theory
• Are Leader Born or Made?
• 19th Century Idea: Leaders are Born
• Tomas Carlyle: History of the World is the Biography of Great Men
• Great Man Theory postulates that some people are born with the necessary attributes that
set them apart from others and that these traits are responsible for their assuming positions
of power and authority.
• A leader is a hero who accomplishes goals against all odds for his followers.
• The theory implies that those in power deserve to be there because of their special talents:
Intelligence/ Political Skills/ Wisdom/ Charisma/ Ability to Influence Others
• It suggests that all great leaders share these characteristic regardless of when and where
they lived or the precise role in the history they fulfilled.

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 Great Man Theory: Criticism

• Herbert Spencer suggested that the leaders were products of the society in
which they lived. It is how they respond to the social environment.

• Not all people who possess the so-called natural leadership qualities actually
become great leaders.

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 Pause and Ponder

• Sachin Tendulkar is a considered as one

the greatest cricketer of Indian Cricket
Team!
• How can Great Man Theory Explain The
Above Statement
• Do You Think The Answer from Great Man
Theory Is Enough OR Do we Need to Dig
Deeper?

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 Trait Theory

• An extension of the Great Man Theory is the Trait Theory

• The trait theory of leadership states that there are certain
identifiable qualities or characteristics that are unique to
leaders and good leaders possess such qualities to some
extent.
• Trait theory suggests that leadership traits can be
acquired

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 Trait Theory

• Early research efforts to isolate leadership traits resulted in a

number of dead ends.
• A review in the late 1960s of 20 different studies identified nearly
80 leadership traits, but only 5 were common to 4 or more of the
investigations.
• Trait Theory is useful in selecting and developing leaders
• Big Five personality framework
– Conscientiousness, Open to Experience and Extraversion – identified as
traits of successful leaders
• Emotional Intelligence
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 Trait Theory: Criticism

1) It’s leader-centric, and only focuses on the leader not

the follower or the situation.
2) Some findings are ambiguous and subjective leading to
uncertainty in the validity of the approach.
3) Much of the Trait Theory research fails to look at how
specific traits influence leadership outcomes such as
performance, productivity, and employee satisfaction

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 Review

• Which of these is not a principle of great man theory?

a) Leaders are born not made.
b) Great men rise up in times of crisis.
c) We can learn from the biographies of great leaders.
d) A great leader is only great in certain situations.
• In Leadership trait theory what is a trait?
a) A list of the things that make leaders different from everyone else.
b) A list of the key behaviors that a leader should do to be great.
c) A list of key characteristics that are innate in a leader.
d) A list of key characteristics that person should do to be a great leader.
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 Behavior Theory

• It identifies key behaviors that a leader must exhibit

• However, it believes Leaders are Made!
• Anyone can be trained to become a Good Leader
– Ohio State
– Michigan State
– Blake and Mouton Leadership Grid

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 BEHAVIORAL APPROACHES:
OHIO STATE STUDIES
• LEADERSHIP BEHAVIORS:
1. Initiating structure:
• The extent to which a leader is likely to define and structure his or her role and those of
subordinates.
• It includes behavior that attempts to organize work, work relationships and goals. A
leader high in initiating structure is someone who “assigns group members to particular
tasks,” “expects workers to maintain definite standards of performance,” and “emphasizes
the meeting of deadlines.”
2. Consideration:
• The extent to which a leader is likely to build job relationships characterized by
mutual trust, respect for subordinates' ideas, and regard for their feelings.
• A leader high in consideration helps employees with personal problems, is friendly and
approachable, treats all employees as equals, and expresses appreciation and support

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BEHAVIORAL APPROACHES:
MICHIGAN STUDIES

• LEADERSHIP TYPES:
1. Production Oriented Leaders:
• Focus on the technical or task aspects of the job
• See people as a means to goal accomplishment
2. Employee Oriented Leaders:
• Emphasize interpersonal relations
• Take a personal interest in subordinate needs
• Accept individual differences

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Review

• For the Ohio State leadership studies the perfect leader:

a) Combines a focus on the task and the employee
b) Focuses on the task and getting things done
c) Inspires workers to aim higher and achieve more
d) Is concerned about the small details and how to increase
productivity

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 Blake and Mouton Leadership Grid
9
High 1,9 Country Club Management 9,9 Team Management
Thoughtful attention to needs of Work accomplishment is from
8 people for satisfying relationships committed people; interdependence
Concern for People

leads to a comfortable, friendly through a “common stake” in

7 organization atmosphere & organization purpose leads to
work tempo. relationships of trust & respect.
6 5,5 Middle of the Road Management
Adequate organization
5 performance is possible through
balancing the necessity to get out
work with maintaining morale of
4
people at a satisfactory level.
1,1 Impoverished Management 9,1 Authority-Compliance
3 Efficiency in operations results
Exertion of minimum effort
from arranging conditions of
to get required work done is
2 work in such a way that
Low appropriate to sustain
human elements interfere to a
organization membership.
1 minimum degree.
1 2 3 4 5 6 7 8 9
Low Concern for Production High 19
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Contingency/ Situational Theory of Leadership

• Fielder Contingency Theory

• Hershey Blanchard’s Situational Leadership

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 Fielders Contingency Model
• Leadership Style Measured with Least Preferred Coworker Scale (LPC):
16 bipolar adjectives
• Extent of Relationship Oriented and Task Oriented
• This theory assumes that leaders have a preferred style and does not
change with situation. For a given situation a particular type of leader is
successful. For effective leadership outcomes, either situation should
correspond to the leaders style or leader has to be changed.
• Situations
– On three parameters:
• Quality of relations: Trust, Respect and Confidence
• Task structure: Task is defined, specific procedures and clear explicit goals
• Position power: Leaders formal authority over subordinate
– Highly Favorable: Good Relation, Clear Structure and Strong Position Power
– Highly Unfavorable: Bad Relation, Unclear Task and Weak Position Power
– Moderately Favorable: Some elements are high some are low

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Fielder’s Contingency Model

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 Test Your Understanding

• NOKIA: The company is going through very bad times. There are losses
in all the products offered, customer size has reduced, Company has no
idea what to do to improve the situation. Employees are also not following
rules and policies.
• Samsung: The Company is making average profit, the employees respect
the authority, the technology is changing very fast and hence company
has to introduce lot of changes but thankfully employees have the ability
to brace with the technology
• Apple: The Company is making profit, the jobs are properly described and
are understood by the employees, leader is well respected
• Based on Fielders Contingency Model/ LPC Theory Which Style of
Leadership would be most effective in the above cases

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Situational Leadership- Hershey and Blanchard’s Theory

• Assumes that Leaders can change their leadership style

depending on the situation.
• Successful leadership depends on followers
characteristics:
– Their Willingness/ Motivation: Commitment
– Their Readiness/ Abilities: Competence

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Hershey Blanchard Situational Leadership

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Hershey Blanchard Situational Leadership

I’ve decided we’re launching a new product. Let me tell you why that product will be so important and
how you contribute to it…

“I’ve decided we’re launching a new product. Here’s exactly what you need to do to get that product
ready…”

“We need to launch a new product. I’ll leave it with you to decide what we build and how we build it.”

“We need to launch a new product. Why don’t you run the strategy and bring it back to me for a final review
when you’re done?”

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 Case Study
• Anil is the HOD for the utility maintenance department. He has planned for a high-stake
annual shutdown next month. The two things that are very important to make the shutdown
successful are timely and efficient completion of all the planned task. He has a team of six
people reporting to him. Below mentioned is a brief profile of them:
• i) Two of the employees are highly experienced and subject matter experts and they have
proven professional competencies in previous shutdown and they are self-motivated to
complete tasks assigned to them.
• ii) Two of them are interns (fresh from college) who are very excited about the forthcoming
shutdown.
• iii) One of them though an expert in his area but has lost his motivation after not getting the
promotion that was due. He has distanced himself from improvement projects as he feels
that despite all his good work, management has never recognized his efforts.
• iv) One of them has recently been transferred from quality department, he has shown little
interest in engaging in his new role as he feels that the transfer has been a punishment
posting for him.
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 Review

• Contingency theory is based on the assumption that the ideal

leader:
a) Shapes their leadership style depending on the situation.
b) Provides clear instructions to the followers so that they know
what they are doing.
c) Knows what their strengths are and makes the most out of
them.
d) Spends time with their followers and therefore listens and
responds to their needs.

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 Situation Analysis

• Evaluate following statements and suggest which theory supports them

(Great Man Theory, Trait Theory, Behavior Theory, Situational Theory)
– Ratan Tata went personally to meet the employees of Taj, after the terrorist
attack, he showed great concern for his people. However, he also took the
tough decision of removing Cyrus Mystry who did not meet management’s
expectations.
– Priyanka Gandhi is a popular leader, she shares charisma of her grandmother
Indira Gandhi!
– Shift-in-charge called the trouble making newcomer and gave specific
instruction (standard operating procedure) to be followed to man the shift. While
he counseled an efficient technician who was not willing to go to another site to
support the shutdown there.
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Leader Member Exchange Theory

• Do You Have Favorites in your Team?

Leader–member exchange (LMX) theory argues that, because of
time pressures, leaders establish a special relationship with a small
group of their followers. These individuals make up the in-group—
they are trusted, get a disproportionate amount of the leader’s
attention, and are more likely to receive special privileges. Other
followers fall into the out-group.
• https://www.youtube.com/watch?v=MjSZjimRRyc

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Leader Member Exchange Theory

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Leader Member Exchange Theory
• Several Leader Member Dyads Exist
• Depending on the number and quality of interactions or similarities
(demography, attitude, personality, hobbies) with the Leader these dyads are
Divided into In-groups and Out-groups
• In-groups have more frequent interactions with their leader
• Leader tends to rely on them more on important tasks, provides them
support, arranges for the resources,, perceives them as more effective
• In-group members are more productive, have higher job commitments and
are more satisfied
• Out-group members feel they have been unfairly treated, are less satisfied
and less productive

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 Implications on LMX Theory

• Increase the number of interactions with your team

members
• Involve varied number of followers in different projects

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 Full Range of Leadership
• Transactional Leader
– Laissez-Faire: Abdicates responsibilities, avoids making decisions.
– Management by Exception (passive): Intervenes only if standards are not met.
– Management by Exception (active): Watches and searches for deviations from rules and standards,
takes correct action.
– Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance,
recognizes accomplishments.
• Transformational Leader
– Individualized Consideration: Gives personal attention, treats each employee individually, coaches,
advises.
– Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving.
– Inspirational Motivation: Communicates high expectations, uses symbols to focus efforts, expresses
important purposes in simple ways
– Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust.

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 Pause and Ponder
• Transactional Leader
– Laissez-Faire: Abdicates responsabilités, avoids making décisions.
– Management by Exception (passive): Intervenes only if standards are not met.
– Management by Exception (active): Watches and searches for deviations from rules and standards, takes correct action.
– Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.
• Transformational Leader
– Individualized Consideration: Gives personal attention, treats each employee individually, coaches, advises.
– Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving.
– Inspirational Motivation: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple
ways
– Idealized Influence: Provides vision and sense of mission, instills pride, gains respect and trust.

What Kind of a Leader would you like to be and WHY?

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Review

1. A person adheres to all the norms of the organization and never defaults at
any regulation, policy or rule. This diligent person can be named as a:
a) Transactional Leader
b) Manager
c) Transformational Leader

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Authentic Leadership

Authentic Leaders

• Authentic leaders know who they are, what they believe in and value, and act
upon those values and beliefs.

Ethics and Leadership

• Leadership is not free from values. When we assess leadership, we must assess
not just the goals themselves but also the means by which those goals are
achieved.
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Trust and Leadership

• Trust – a psychological state that exists when you agree to make yourself
vulnerable to another because you have a positive expectation for how things are
going to turn out.
– Key attribute associated with leadership
– 3 Leader and One Subordinate component
• Subordinate
– Propensity to Trust
• Three components:
– Ability
– Integrity
– Benevolence
– Followers who trust their leader will align their actions and attitudes with the
leader’s behaviors/requests 39
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Review

1. A leader is a role model for its followers. But employees loose respect of the
leader if he/she is seen at times breaking:

a) Cultural Norms
b) Comfort Zones
c) Trust

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 Reflection

• Which of these Theories Can You Apply

– Great Man and Trait Theory

– Behavioral Theory: Concern for People and Concern for Production

– Contingency Theory: Situational Leadership

– Leader Member Exchange Theory

– Transactional and Transformational Leader

– Authentic Leader

– Ethical Leadership
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Summary and Managerial Implications

• Leadership is central to understanding group behavior as the leader provides the

direction.

• Extroversion, conscientiousness, and openness all show consistent relationships to

leadership.

• Need to take into account the situational variables, especially the impact of
followers.

• Research on charismatic and transformational leadership has made major

contributions to our understanding of leadership.

• Leaders must be seen as authentic and trustworthy.

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Click to edit Master title style

Thank You

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