Lecture 6

Leadership and
Management in
Organisations.

BBA 420
Organisational Theory &
Behaviour
University of Lusaka
 Learning Objectives
Part I.
Part II.
 Definition of Leadership;
 Importance of Leadership ?
 Management
 Sources of Power  What is the
Relationship between
 Approaches to Leadership
Leadership and
 Types of Managerial
Management ?
leadership
 Broad Classification of
 Four Basic Functions
Leadership Styles of Management
 Five Essential Attributes of  What is the
the Next Generation Leader Relationship between
by Andy Stanley
Leadership and
 Leadership Challenges in Management ?
the Global Context
OB Disciplines and their Contributions to
Organisational Behaviour

Behaviour Contribution Unit of

Science Analysis
Psychology Learning, Motivation, Individual
Personality, Emotions,
Perception, Training,
Leadership Effectiveness,
Values, Recruitment
Sociology Group Dynamics, Work Teams, Group
Communication, Power/
Conflict, Change
Social Behaviour Change, Attitude
Psychology Change, Communication, Group Group
processes, Group Decision
Making
Anthropolog Comparative Values Organisatio
y Comparative Attitudes n
Cross Cultural Cultures
Political Conflict / Power, Influence Group
Science Tactics Organisatio
Power and Ethics, Political n
Strategies
Cross cultural analysis, values
Leadership - Definition
Definition
of It is the art or process
Leadership of influencing people so
An attempt to use that they will strive
influence to willingly and
motivate individual enthusiastically toward
to accomplish some the achievement of
goal. group goals.
The Handbook on
Leadership defines Leaders should not just
Leadership as an push people but they
interaction between should cultivate the free
members of a group. willingness among the
Leaders are agents of people.
change, persons who
se acts affect other
"Leadership is a function of
knowing yourself, having a
vision that is well
communicated, building
trust among colleagues, and
taking effective action to
realize your own leadership
potential."
Prof. Warren Bennis
 Why is leadership important in organizational behavior?

Leadership is an important function of

management which helps to maximize
efficiency and to achieve
organizational goals. ...
It has the potential to influence and
drive the group efforts towards the
accomplishment of goals. Line
managers must have traits of a leader.
They must possess leadership qualities
Why leadership is important in the workplace?

WHAT MAKES LEADERSHIP SKILLS

IMPORTANT IN THE WORKPLACE?
Goals and explaining objectives so
that every member on the team
understands the end goal they are
working to achieve.
They also keep the team on track and
moving forward by setting and
enforcing deadlines.
Sources of Power
There are five sources of power for
leaders
Legitimate power is Coercive power is the
associated with the leader’s opposite of reward power;
position in the organization. it is where the leader can
Such power could be held by
coerce subordinates
the human resource
through demotion, firing,
manager, marketing
manager, managing director or silent treatment among
and so on; it is based purely other methods.
on position and not
Referent/charismatic
necessarily on the ability to
power is derived from the
influence.
desire to be like the power
Reward power stems from holder
the perception that the leader
is able to reward another Expert power is the power of
individual. Examples of knowledge.
rewards are pay rises and
favourable job assignments.
Approaches to
Leadership
 Approaches to Leadership

Qualitiesand Trait Approach of

Leadership
Functional or Group Approach
Leadership as a Behaviour Category
Approach
Leadership Styles
Situational Approach and Contingency
Models
Transformational and Transactional
Leadership
Qualities and Trait Approach
Trait
Theories of - The basic premise
Leadership behind trait theory
was that effective
Theories that leaders are born, not
consider made, thus the name
personal sometimes applied to
qualities and early versions of this
characteristics idea, the "great man"
that differentiate theory.
leaders from non
leaders
Functional or Group Approach
 

 Attention focussed on the functions and

responsibilities of leadership, what the
leader actually does and the nature of the
group.

 Krech et al identified 14 functions performed by leaders

whereby the leader can be an executive, planner, policy-
maker, expert, an external group representative,
controller of internal relations, giver of rewards and
punishment, an arbitrator and mediator, setting
examples, a symbol of the group, substitute for
individual responsibility, an ideologist, a father figure,
and as a scapegoat to accept blame in the case of
failure
Leadership as a Behaviour Category Approach

 The premise of this stream of research was

that the behaviors exhibited by leaders
are more important than their physical,
mental, or emotional traits.
 Behavioral theories focus on how leaders
behave and assume that leaders can be
made, rather than born and successful
leadership is based on definable, learnable
behavior.
 Behavioral theories of leadership are
classified as such because they focus on
the study of specific behaviors of a
leader
Leadership Styles

 
There are several leadership styles, and
the particular one in place in an
organization may affect the way
employees in that organization behave
Situational Approach and Contingency
Models
 Researchers began to turn to
the contexts in which
According to the leadership is exercised – and
the idea that what is needed
situational changes from situation to
situation.
approach,  Some looked to the processes
leadership is by which leaders emerge in
different circumstances – for
affected by the example at moments of great
situation from which crisis or where there is a
vacuum.
the leader emerges  Others turned to the ways in
and in which he or which leaders and followers
viewed each other in various
she operates. It is contexts – for example in the
also known as the army, political parties and in
companies
contingency
approach
Transformational and Transactional Leadership

 Transformational leadership is
exercised when the leader
intellectually stimulates the
subordinates, excites, arouses and
inspires them to perform far beyond
what they would have thought
themselves capable of.
 By providing a new vision, the
transformational leader transforms
the followers into people who self-
Transformational and Transactional
Leadership (2) Continued
 Burns (1977) argued that it was possible to
distinguish between transactional and
transforming leaders.
 The former, ‘approach their followers with an
eye to trading one thing for another (1977:
4), while the latter are visionary leaders who
seek to appeal to their followers ‘better
nature and move them toward higher and
more universal needs and purposes’ (Bolman
and Deal 1997: 314).
 In
other words, the leader is seen as a
change agent.
Characteristics of Transformational Leader:

i) Charisma: Provides vision, and sense of

mission, instills pride , gains respect and trust
ii) Inspiration: Communicates high
expectations, use symbols to focus efforts,
expresses important purposes in simple way
iii) Intellectual stimulation: Promotes
intelligence, rationality and careful problem
solving
iv) Individual Consideration: Gives personal
attention, treats each employee individually,
coaches, advises.
Theory of Charisma
 Analyzing political and religious
leaders, Robert House developed this
theory.
 To him, charismatic leaders are said to
possess superior debating and
persuasive skills and technical
expertise, to foster attitudinal,
behavioral and emotional changes in
their followers.
 Leader’s traits like self-confidence,
social sensitivity, and empathy foster
charismatic attributions.
Leaders with Oratory Skills
Charismatic Leadership
 Charismatic leadership is central to transformational
leaderships. These kinds of leaders guide or motivate
their follower’s in the direction of established goals by
clarifying role and task requirements.
 There exists a kind of understanding between the
leader and the follower that if the goals are achieved,
the follower’s own interests and desires will be rewarded.
 This type of leader also pays attention to the concerns
and developmental needs of individual followers: they
change follower’s awareness of issues by helping them to
look at old problems in new ways; and they are able to
excite, arouse and inspire followers to put extra effort in
order to achieve group goals.
 In essence, most transformational leaders are also
charismatic leaders because they are seen as heroic and
as having a profound and extraordinary effect on their
followers
Types of Managerial Leadership

- Autocratic Leadership
- Collaborative Leadership
- Negotiative Leadership
- Delegative Leadership
Features of Autocratic Leadership
Obedience, loyalty and complete
adherence to the rules are
expected.
Enforcement of rules and all
responsibilities are in the hands of
the leader with almost no power to
other team members.
Focus is only on the work the
leader expects and never on people.
This is the best style when a quick
decision has to be made because it
fosters speedy action.
Examples of Autocratic Leaders
Collaborative Leadership
 Collaborative
Leadership engages
the collective
intelligence to achieve
results across
organisational
boundaries.

 Collaborative
Leadership is an
increasingly vital
source of competitive
advantage in today’s
highly networked,
team-based, and
partnership-oriented
Negotiative Leadership
The Negotiative A negotiative leader
leader will make comes to the table
deals with people to with his own agenda
achieve tasks. An and he seeks out his
identification of the personal interest
needs of the before the
individual rather than organization’s.
a genuine interest in To achieve their personal
the person is goals, they leverage on
required here and their position as leaders
places this style and entice their followers
outside the to perform certain tasks
Task/Relationship with incentives and other
grid.  benefits.
Delegative Leadership

The delegative The delegating leadership

leadership style is also style is a style of
known as the laissez- leadership where a
fair style of group leader assigns
leadership. It is not projects or
among the most assignments to their
effective types of employees and gives
leadership styles. them free reign to
work.

Delegative leadership is
The employee(s) get to
a somewhat hands off
make all decisions and
approach in which the choices, which they are
leader places great then responsible for.
responsibility on lower
level managers and
employees.
Broad Classification of Leadership Styles

 There are many dimensions

to leadership and many i). The authoritarian (or
possible ways of describing autocratic)
leadership style, such as,
dictatorial, unitary,  
bureaucratic, benevolent, ii). The democratic style
charismatic, consultative,
participative and  
dictatorial. iii). A genuine laissez-faire
 
style
 The style of managerial
leadership towards
subordinate staff and the
focus of power can be
classified within a broad
three-fold heading.
The authoritarian (or autocratic)

This is where the focus of power

is with the manager, and all
interactions within the group
move towards the manager.

The manager alone exercises

decision-making and authority for
determining policy, procedures for
achieving goals, work tasks and
relationships, control rewards or
The democratic style

Itis where the focus of power is

more with the group as a whole
and there is greater interaction within
the group.
The leadership functions are
shared with members of the group
and the manager is more part of a
team.
The group members have a
greater say in decision-making,
determination of policy,
implementation of systems and
A genuine laissez-faire style

Itis where the manager

observes that members of the
group are working well on their
own.

The manager consciously makes

a decision to pass the focus of
power to members, to allow
them freedom of action and not
to interfere; but is readily
Five Essential Attributes of the Next Generation Leader by Andy
Stanley

Five characteristics identified by

Andy Stanley were as follows:

Competence,
Character
Courage,
Clarity,
Coachability
Competence and Character
Competence Character

Leaders must Character is the will

channel their to do what’s right
energies toward even when it’s hard.
those arenas of Character
leadership in which determines the
they are most likely leader’s legacy.
to excel. As a Character is what
Leader, do not be makes you a leader
or behave like an “I worth following.
know-it-all!”
Courage and Clarity
Courage Clarity
Leadership is all about
Courage is essential
to leadership because taking people on a
the first person to journey.
step out in a new
The challenge is that
direction is viewed as
the leader. most of the time we
are asking people to
And being the first to follow us to places we
step out requires ourselves have never
courage. In this way, been. There is ned to
courage establishes be clear about a
leadership. leader vision.
Remember, the story
of David versus
Coaching

Coaching enables a leader to go

farther, faster…! Need to be good
at: Listening, asking questions,
giving feedback
Fundamental Skills Every Leader Should Practice

 Take the case of Dominic

Research and
experience have Barton, who served as
the Global Managing
shown us that the Director of McKinsey &
best way to develop Company from 2009-
proficiency in 2018.
leadership is not just  In an interview with us,

through reading reflecting back on his

books and going to own development as a
leader, he didn’t cite
training courses, but education programs or
even more through books he had read, but
real experience and rather described several
continual practice. “learn-by-doing”
  experiences that would
shape his successful
career.
Fundamental Skills (2)
 As the office leader of McKinsey Korea, for example, he
realized he had “a small playground to… try new stuff” —
and against all advice of local colleagues to be cautious and
follow cultural norms, started writing a provocative
newspaper column that challenged traditional ways of
working among local businesses as their markets
continued to globalize.
 “I took a risk, and it helped put us on the map, as never
before.” His tenure in Korea also taught him that he was
better at some things than others: “My performance
evaluator used to beat me up regularly during those days,
because I was better at opening up new initiatives than
bringing them to completion.
 When I later became head of McKinsey Asia, he helped me
see that I had to hire a solid COO to work with me—which
substantially increased my leadership effectiveness in
that bigger role.” Our research also pointed to six
leadership skills where practice was particularly important.
These are not mysterious and certainly aren’t new.
Six Fundamental Skills
However, the leaders we talked with emphasized that these
fundamental skills really matter. Aspiring leaders should focus
on practicing these essential basics:

 Shape a vision that is exciting and challenging for your

team (or division/unit/organization).
 Translate that vision into a clear strategy about what
actions to take, and what not to do.
 Recruit, develop, and reward a team of great people
to carry out the strategy.
 Focus on measurable results.
 Foster innovation and learning to sustain your team (or
organization) and grow new leaders.
 Lead yourself — know yourself, improve yourself, and
manage the appropriate balance in your own life.
Seeking out Opportunities
Don’t wait for learning opportunities to be handed to
you. Seek them out and volunteer to take them on.
And if you don’t see the opportunities in your own
organization, find them outside your professional work
in a community group, a non-profit, or a religious
organization, which are often hungry for leaders to step
in and step up.
For example, Wharton’s Stew Friedman has described
how one young manager who aspired to become a CEO
joined a city-based community board, which allowed
him to hone his leadership skills; three years later, he
was on a formal succession track for CEO.
 Leadership Challenges in the Global Context

IT revolution
Cross-culture nature of business
activity
Concerns about social
responsibility and the
environment
Expectation that the leader is the
hero who will save the day
Part II
Management
Definitions: What is
Management
 “Management is a function, a discipline, a task to be done, and
managers practice this discipline, carry out the functions and discharge
these tasks”. —Peter Drucker
 “Management is the process by which a cooperative group directs
actions towards common goals”. —Joseph Massie
 “Management is a social and technical process that utilizes
resources, influences human action and facilitates charges in order to
accomplish and organization’s goals”. —Theo Haimann and William
Scott
 “Management is the coordination of all resources through the
processes of planning, organizing , directing and controlling in
order to attain stated goals”. —Henry Sisk
 “Management is the process by which managers create, direct,
maintain and operate purposive organizations through systematic,
coordinated and cooperative human effort”. —Dalton McFarland
Definitions (2) Continued
- Mary Parker defines the term
management as “the art of getting things
done through others.”
 Ivancerich, Donnelly and Gibson, defines
the term management as “the process
undertaken by one or more persons to
coordinate the activities of other persons to
achieve results not attainable by any one
person acting alone.”
 John A. Pearce and Richard B. Robinson
included all kinds of resources in their
definition on management. According to
them, “Management is the process of
optimizing human, material and financial
Importance of Management
 Managers influence all the  Our society could never
phases of modern
organizations. Sales
Managers maintain a sales
force that markets goods.
Personnel managers
provide organizations with
a competent and
productive workforce.
Plant managers run
manufacturing operations
that produce the clothes
we wear, the food we eat,
and the automobiles we
drive.
exist as we know it
today nor improve
without a steady stream
of managers to guide
its organizations. The
well known
management author
Peter Drucker
highlighted this point
when he said that
Effective Management
is probably the main
resource of developed
countries and the most
needed resource of
developing ones.
Aspects of management.
 The Purpose of
Management is to formulate
effective (right)
organizational strategies and
to achieve them efficiently
(productively) based on the
missions objectives and
goals.
 Management deals with both
internal and external
environment.
 Management is concerned
with all kinds of resources
viz., human, financial,
material machines,
technology and technical
know- how.
 Management functions
include: planning, organizing,
directing and controlling.
 Managers should possess
varied skills in order to play
a variety of roles.
 It applies to managers at all
levels in an organization.
 Management is applicable
to all kind of organizations
i.e., both profit and non-
profit oriented
organizations.
 Management vs.
Administration.
 Management is an art and a
science in order to create a
surplus.
 Management need to be a
profession to achieve goals
continuously with an
incremental efficiency.
Functions of Management
The functions of management are
important for business survival and success
whether you lead a small business or a
major corporation.
Management is creative problem solving.
This creative problem solving is
accomplished through four functions of
management: planning, organizing,
leading and controlling.
The intended result is the use of an
organization’s resources in a way that
accomplishes its mission and objectives.
Planning and Organising
Planning is the Organizing is
ongoing process of establishing the internal
developing the organizational structure
business’ mission and of the organization.
objectives and
determining how they The focus is on division,
will be accomplished. coordination, control of
Planning includes both tasks and the flow of
the broadest view of information within the
the organization, e.g., organization. It is in this
its mission, and the function that managers
narrowest, e.g., a tactic distribute authority to
for accomplishing a job holders.
specific goal.
Directing and Controlling
 Directing is influencing
people’s behavior through
motivation,
communication, group
dynamics, leadership and
discipline.
 The purpose of directing is
to channel the behavior of
all personnel to
accomplish the
organization’s mission and
objectives while
simultaneously helping
them accomplish their own
career objectives.
 Controlling is a four-
step process of
establishing
performance standards
based on the firm’s
objectives, measuring
and reporting actual
performance,
comparing the two,
and taking corrective
or preventive action as
necessary in an
organization.
What Managers Do
Management • Managers roles
Roles Approach • Interpersonal roles

Figurehead, • Informational roles

Leader, Liaison

Monitor, • Decisional roles

Disseminator, • Disturbance handler,
Spokesperson resource allocator,
negotiator
Managerial Skills of Managers (1)

Managers must be skilled to perform the

functions of management. The three skills
that
Are essential for successful management
skills
like technical, human, and conceptual.

There are three skill sets that managers need

to perform effectively. Technical, human and
conceptual skills are considered as skills
approach.
Managerial Skill for
Managers (2)
Technical skills Human Skills Conceptual Skills

 Technical skills The ability to  The ability to

involves the work well with think and
knowledge other people conceptualize about
 The job-specific  The ability to abstract and
complex situations
knowledge understand concerning the
required to alters, lead, and organization.
perform a task. control peoples  The ability to
Common behavior analyze and
examples  Human diagnose a
include Relations means situation and find
marketing, getting along well the cause and
accounting with the people effect.
 Conceptual skills
associated with
refer to an ability to
your see the end product
business and or the big picture.
Definition

Effectiveness is the capability

of producing a desired result.
When something is
deemed effective, it means it
has an intended or expected
outcome, or produces a deep,
vivid impression.
Definition of efficiency

The simple, often used, definition of

efficiency is ("doing the thing right").
We need this measure for marketing
activities and business processes
since it helps us see when we are
minimising resources or time needed
to complete a process, i.e. we are
keeping our costs low.
In digital marketing, for example,
efficiency involves increasing
conversion rates and reducing costs of
acquisition.
What Is the Difference Between Efficiency and
Effectiveness in Business?

Companies often talk about employee

effectiveness and efficiency when
brainstorming ways to improve business.
While they sound similar, effectiveness means
something entirely different than efficiency.

 An effective employee produces at a high

level, while an efficient employee produces
quickly and intelligently. By combining
effectiveness and efficiency, a company
produces better products faster and with
fewer resources.
Key Issues in Management
How the process of management
is actually carried out

The style of managerial

behaviour; and

Itseffectiveness for both

organisational performance and
satisfaction of its members