Leadership

Session 2
Defining Leadership
 “a social process in which one individual influences the behaviour of others
without the use or threat of violence” (Buchanan and Huczynski, 1985:
389)
 Social process = exercise of power (can lead to bullying, harassment,
exploitation, unhealthy working relationships)
 “acid test of leadership must be in its ability to improve organisational
performance” (Fiedler, 1967: 108)
 Study of leadership is directly related to the improvement of management
control strategies and the regulation of workplace behaviour (Thompson
and McHugh, 2002: 266)
 “Management is doing things right; leadership is doing the right things.”
― Peter F. Drucker, Essential Drucker: Management, the Individual and
Society
 What is the difference between leadership and
management?
The main difference between leaders and managers is that leaders
have people follow them while managers have people who work
for them.
A successful business owner needs to be both a strong leader and
manager to get their team on board to follow them towards their
vision of success.
Leadership is about getting people to understand and believe in
your vision and to work with you to achieve your goals while
managing is more about administering and making sure the day-to-
day things are happening as they should.
Leading versus Managing
Transactional and Transformational Leaders
(Source: Adapted from Bass, 1990: 22, Cited in Senior and Fleming 2006: 262)

Transactional Leader: Transformational Leader:

 Contingent reward: contracts exchange  Charisma: provides vision and sense
of reward for effort, promises rewards of mission, instils pride, gains respect
for good performance, recognizes and trust
accomplishments  Inspiration: communicates high
 Management by exception (active): expectations, uses symbols to focus
watches and searches for deviations efforts, expresses important purposes
from rules and standards, takes in simple ways
corrective action  Intellectual Stimulation: promotes
 Management by exception (Passive): intelligence, rationality and careful
intervenes only if standards are not problem solving
met  Individualized consideration: gives
 Laissez-faire: abdicates responsibilities, personal attention, treats each
avoids making decisions employee individually, coaches,
advises.
Transformational Leadership and Trust
According to Nanus (1989) leaders need to be trusted by their
followers
Trust in the leader has a direct relationship with organizational
citizenship behaviours, performance and satisfaction (Jung
and Avolio, 2000)
Trust has a direct relationship with the formation,
development and existence of the psychological contract
(Atkinson, 2007)
Transformational leadership has shown consistently to be
associated with trust in the leader (Bass 1990; Bartram and
Casimir, 2007)
Results-based Leadership
“Leadership is all about result” says Peter Drucker
It is not enough to gauge leaders by personal traits
such as character, style, and values
Effective leaders connect these leadership attributes
with results
for employees, for the organization, for its customers,
and for its investors
Effective leadership = attributes x results
Leadership is no 1 issue for effective people
management (Human Resource Institute)
Group Activity
In groups of 6 people each
1. Identify a leader (either within or out of your current
organization) think about and discuss this individual
in line with the following:
What is his/her leadership style
The strength & weaknesses of his leadership style
Was his/her style appropriate at that time? Is it still
relevant today? If not, why?
Connecting Leadership Attributes
to Results
SET DIRECTION
(vision,customers, future)

DEMONSTRATE PERSONAL
CHARACTER
(habits, integrity, trust, analytical thinking)

MOBILISE ENGENDER
INDIVIDUAL ORGANISATIONAL
COMMITMENT CAPABILITY
(engage others, share power) (build teams,manage change)

LEADERSHIP ATTRIBUTES FRAMEWORK

(Source: Ulrich, Zenger, Smallwood)
LEADERSHIP ATTRIBUTES
SET DIRECTION
 Understand external events
 Customer orientation
 Provide clear direction
 How customers view us
 Responsible business
 Focus on the future
 Create a vision & mission
 Core values
 Strategic thinking
 Turn vision into action
 Align performance to vision &
mission
 Transform strategy into results
 Create climate for success
MOBILISE INDIVIDUAL
COMMITMENT
Build collaborative
relationships
 Love for people
 Cheerleader more than judge
 Build common goals
 Build trust
Share power & authority
 Willingness to share power &
control
 Listen more & involve others
 Exert power through dignity
 Empower employees to do their
best & create the opportunities
 Touch the heart
LEADERSHIP ATTRIBUTES
ENGENDER ORGANISATIONAL DEMONSTRATE PERSONAL
CAPABILITY CHARACTER
 Build organisational  Live values by practice
infrastructure  Lead by example
 Integrate resource & orchestrate  Have & create a positive
activities image
 Leverage diversity  Self confidence
 Use diversity as an advantage  A motivator
 Deploy teams  Possess cognitive ability &
 Build self-managed teams personal charm
 Create value & culture at work  Have an open mind
 Create high performance culture  Reach out to people
 Make change happen  Accepts feedback
 Serve as a catalyst of change  Act with integrity
 Encourage risk taking
LEADERSHIP ATTRIBUTES
ENGENDER ORGANISATIONAL DEMONSTRATE PERSONAL
CAPABILITY CHARACTER
 Build organisational  Live values by practice
infrastructure  Lead by example
 Integrate resource & orchestrate  Have & create a positive
activities image
 Leverage diversity  Self confidence
 Use diversity as an advantage  A motivator
 Deploy teams  Possess cognitive ability &
 Build self-managed teams personal charm
 Create value & culture at work  Have an open mind
 Create high performance culture  Reach out to people
 Make change happen  Accepts feedback
 Serve as a catalyst of change  Act with integrity
 Encourage risk taking
Effective Leadership
Leadership attributes without results are about as
valuable as a playbook without playing the game
Results focus on ends, not means
Results-based leadership means achieving outcomes,
not just having great character
Leaders focused on desired results must articulate
what they need accomplished

AGREE ?
Is a good manager automatically a
good leader?
Desired Results Are Balanced
PROCESS-CENTRIC

Organisation Investor
Results Results
INTERNAL EXTERNAL
FOCUS FOCUS
Employee Customer
Results Results

BUSINESS-CENTRIC
Balanced Scorecard
Definition: “Performance" and measures whether
management is achieving desired results.
It translates Mission and Vision Statements into a comprehensive
set of objectives and performance measures that can be quantified
and appraised
Examples:
Financial performance (revenues, earnings, return on capital, cash
flow)
Customer value performance (market share, customer satisfaction
measures, customer loyalty)
Internal business process performance (productivity rates,
quality measures, timeliness)
Innovation performance (percent of revenue from new products,
employee suggestions, rate of improvement index)
Employee performance (morale, knowledge, turnover, use of best
demonstrated practices)
Adapted from: Bain & Co
 Defining Desired Results
Summary
CRITERIA QUESTIONS EVIDENCE OF EVIDENCE OF
PROBLEM SUCCESS

Balanced To what extend the results Results focussed Results balance

balance across employees, too much on one across the 4
organisation, customers & dimension dimensions
investors

Strategic Align with strategy: • Connects loosely Link strongly to

• Business focus or not at all strategy
• Customer value • Fail to create
preposition strategic clarity

Lasting Can endure over time • Will not last Meets both short
• Short term and long term
goals
Selfless Selfless, making the whole Do not make the Support the whole
more than the parts whole greater than enterprise, not just
the parts personal gain
Benefits of Results-based Leadership
Frees productivity from constraints of hierarchy
and the limitations of position
Defines results by understanding audience and
customer needs
Employees follow result-based leaders who know
both who they are and where they are going
Instil confidence and inspire trust in others
Makes performance measurement easier.
Tracks leaders' individual growth, leadership
effectiveness & clarity in the leader selection
process
 Global implications
Leadership theories are primarily studied in English-
speaking countries
Different countries like different things:
Brazilian teams prefer leaders who are high in
consideration and like to participate
French workers want initiatives and is very task
orientated.
Chinese workers favour moderately participative style.
Leaders need to take culture into account.
Watch You Tube
https://www.youtube.com/watch?v=l5GryYk5hV8

https://www.youtube.com/watch?v=axlT49HSxs0