BBA Program

Organizational Behavior
Dr. Shahid Mir,
Post Doc. (Fulbright Scholar), PhD, MBA, BE,
Assistant Professor,
Teacher, Researcher, Trainer, Consultant,
Chairman, Procurement Committee,
Ex-Director QEC, Ex. Chairman, Department of Management,
Ex-Testing In-charge, Ex-Students Counselor,
Institute of Business Administration, Karachi
Certified: SECP Board Director, SPPRA, ISO 9000
Master Trainer LUMS/McGill/CIDA, USAID, Sindh PPRA
Lets Embark on the Journey of
Leadership?

What is Leadership?
Are Leaders Born or Made?
What is the difference between a
Manager and a Leader
The History of “Great Man” Leadership
Theory, by Thomas Carlyle-1840s
• "Great leaders are God-gifted, not man-made"?
• Leadership traits are inbuilt.
• Factors such as up-bringing, education, experiences were only
modeling leadership abilities; and not for making a leader.
• The theory was formulated mainly by analyzing the behaviors of
military figures of the time.
• In the 1800s, authoritative positions were held solely by men and
were typically passed on from father to son.
• "Great Man Theory“ did not considered women as leaders
“Trait Theory” by Ralph
M.Stogdill, 1974
• The trait theory states that leaders have certain innate traits that enable
them to lead. A list of these elements were determined by Ralph Stodgill
(1974).
Traits Skills
 Adaptable to situations  Clever (intelligent)
 Alert to social environment  Conceptually skilled
 Ambitious and achievement-orientated  Creative
 Assertive  Diplomatic and tactful
 Cooperative  Fluent in speaking
 Decisive  Knowledgeable about group task
 Dependable  Organized (administrative ability)
 Dominant (desire to influence others)  Persuasive
 Energetic (high activity level)  Socially skilled
 Persistent
 Self-confident
 Tolerant of stress
 Willing to assume responsibility
Behavioral Theories of Leadership
There are two important Behavioral studies
Ohio State University (1940s)
• One of the primary purposes of the study was to identify common leadership
behaviors.
• After compiling and analyzing the results, the study led to the conclusion that
there were two groups of behaviors that were strongly correlated.
• These were defined as Consideration (People Oriented behavioral Leaders) and
Initiating Structure (Task Oriented Leaders).

University of Michigan (1950s)

• Lead by the famous organizational psychologist, Dr. Rensis Likert, the leadership
studies at the University of Michigan identified same characteristics of effective
leadership as was previously observed in studies that were conducted at Ohio
State University.
Contingency Theory
• Theories based on contingencies take account of unique circumstances, albeit in
a general way.
• Contingency theories motivate thinking about a particular aspect of a leader-led
situation that need more intense focus.
• The theories states that there is no one leadership style and that the nature of
those being led, the make-up of the leader and the tasks facing a group are
different.
• Each situation is unique and the ideal leader-led situation will be unique, as well.
• Some of the major contingency theories are:
• Strategic Contingency Theory
• Fielders' Contingency Theory
• Hersey & Blanchard's situational theory
• Vroom and Yetton's decision participation contingency theory
• Path-Goal Theory
Hersey-Blanchard Situational Leadership
Theory

• Directing/Telling
• Persuading/Selling
• Supporting/Participating
• Delegating
 Path-Goal Theory
• Path-Goal Theory by Robert House, (1971, revised in 1996)
suggested this theory.
Lets Understand the Difference Between
Management and Leadership!

What is Leadership?
Are Leaders Born or Made?
What is the difference between Managers
and Leaders?
Manager Vs. Leader
Manager Leader
Leader Qualities Manager Qualities
oRational oVisionary
oConsulting oPassionate
oPersistent oCreative
oProblem solving oFlexible
oTough-minded oInspiring
oAnalytical oInnovative
oStructured oCourageous
oDeliberate oImaginative
oAuthoritative oExperimental
oStabilizing oInitiates change
Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12
Management Vs Leadership
Management Leadership
Direction • Planning and budgeting • Creating vision and strategy
• Keeping eye on bottom line • Keeping eye on horizon
Alignment • Organizing and staffing • Creating shared culture and
• Directing and controlling values
• Creating boundaries • Helping others grow
• Reducing boundaries
Relationships • Focusing on objects – • Focusing on people –
producing/selling goods • inspiring and motivating
and services followers
• Based on position power • Based on personal power
• Acting as boss • Acting as coach, facilitator,
servant
13
Management Vs Leadership
Management Leadership
Personal • Emotional distance • Emotional connections
Qualities • Expert mind (Heart)
• Talking • Open mind (Mindfulness)
• Conformity • Listening (Communication)
• Insight into • Nonconformity (Courage)
organization • Insight into self (Character)

Outcomes • Maintains stability; • Creates change and a

creates culture of culture of integrity
efficiency
14
Jim Collins: Good to Great
The Research 2010 - 2012
• Carried out by John H. Zenger, Joseph R. Folkman, and
Scott K. Edinger
• Data set of 200,000 evaluations on 20,000 people
• Contrasted the highest-performing 10% to the lowest-
performing 10%
Leadership vs. Turnover
20
Turnover
18 19
Turnover
16
14
12 14
Annual

10
Average Percent

8 9
6
Percentage

4
2
0
Bottom 30% Middle 60% Top 10%

Poor Leaders Good Leaders Great Leaders

Insurance Company Call Center
Leadership vs. Customer Satisfaction
65

Customer Satisfaction Percentile 60

60
57
55

50 49
46
45

40
36
35

30
Bottom 10 11th - 35th 36th - 65th 66th - 90th Top 10
Percentile Percentile
Overall Leadership Effectiveness
Technology Service Provider
Leadership vs. Net Income
5000000 $4.5MM

4000000

3000000
Net Income

$2.4MM
2000000

1000000

0
($1.2MM)
-1000000

-2000000

Bottom 10% Middle 80% Top 10%

Poor Leaders Good Leaders Great Leaders
Mortgage Bank Branches
Leadership Effectiveness vs. Employee
Satisfaction/ Commitment
90

80

70
Employee Commitment/
Satisfaction Percentile
60

50

40

30

20

10

0
1st - 10th - 20th - 30th - 40th - 50th - 60th - 70th - 80th - 90th -
9th 19th 29th 39th 49th 59th 69th 79th 89th 100th

Leadership Effectiveness Percentile

30,661 Leaders Across Multiple Industries
Page 1-4
Impact of Leadership
Effectiveness with No Perceived
Strengths
100
90
80
70
Average
60
Percentile
50
Score on
40 34
360 Results
30
20
10
0
0 1 2 3 4 5

Number of Profound Strengths

(Competencies at the 90th percentile)
Page 2-3
Impact of One Strength on Overall
Perception of Leadership Effectiveness

100
90
80
70 64
Average
60
Percentile
50
Score on
40 34
360 Results
30
20
10
0
0 1 2 3 4 5

Number of Profound Strengths

(Competencies at the 90th percentile)
Page 2-3
Three Strengths Raises Leadership
Effectiveness to the 81 Percentile
st

100 89 91
90 81
80 72
70 64
Average
60
Percentile
50
Score on
40 34
360 Results
30
20
10
0
0 1 2 3 4 5

Number of Profound Strengths

(Competencies at the 90th percentile)
Page 2-3
 The Leadership
Tent
Focus On Results: Leading Change: Develop
Focuses on Results, Strategic Perspective,
Establish Stretch Champion Change,
Goals, Takes Initiative Connects the Group to
the Outside World
Personal Capability: Interpersonal Skills:
Exhibits Technical/ Communicates
Professional Powerfully and
Expertise, Solves Broadly, Inspires and
Problems and Motivates others,
Analyzes Issues, Builds Relationships,
Innovates, Practices Develops others,
Self Development Character: Displays Honesty and Collaborates and
Integrity Fosters Teamwork
Source: Research carried out by John H. Zenger, Joseph R. Folkman, and Scott K. Edinger, 2010-2012
Who is an Influential Leader?

• An influential leader is someone people look

up to, respect and trust to guide them
towards their desired results.
• Instead of coercing or forcing their team, the
influential leader empowers their people and
leads by example.
Why Muhammad is the Best Person in the World?

• The Quran asserts that Muhammad (PBUH) was a

man who possessed the highest moral excellence,
and that God made him a good example or a
"goodly model" for Muslims to follow (Quran
68:4, and 33:21).
• The Quran disclaims any superhuman
characteristics for Muhammad (PBUH), but
describes him in terms of positive human
qualities.
Character-Centered Leadership

Qur’an (68:4) Surat Al-Qalam (The Pen) -

‫ سورة القلم‬where Allah (SWT) describes
Muhammad (PBUH) as follows:

• And indeed, you are of a Great Moral Character.

‫اور بیشک تو بہت بڑے (عمده) اخالق پر ہے‬
Situational Leadership = Leadership Styles
Why Leadership Styles
• Managing programs and projects is simply not enough;
leadership and the development of high-performing teams
(HPTs) were always the keys to success.
• There are a tremendous number of leadership styles and
approaches available in today’s world. The key to project
management is the ability of a leader to recognize which
approach to use when, what the impacts will be, and
when to change that style to another approach that will
further drive the team.
Why Leadership Styles
• With such a varied experience set, in a number of
environments and cultures that required adjusting
working styles to the environment,
• learning new communication patterns,
• retraining (both employees and executives),
• building governance models, and
• reengineering process approaches especially in
Project Management.
 Leadership Styles

• Coercive/Directive
• Authoritative/Visionary
• Affiliative
• Democratic
• Pacesetting
• Coaching
 Coercive Leadership
“Do What I Tell You”
Style Attributes
Modus operandi Demands immediate
compliance
Competencies Drive to achieve, self-control,
initiative
Situation to be effective Crisis, turnaround, w/ problem
employees

Overall impact Negative

 Authoritative Leadership
“Come With Me”
Style Attributes
Modus operandi Mobilizes people toward a
vision

Competencies Empathy, change catalyst,

confidence

Situation to be effective When clear direction is

needed, new vision needed
Overall impact Most strongly positive
 Affiliative Leadership
“People Come First”
Style Attributes
Modus operandi Creates harmony, emotional
bonds
Competencies Communication, empathy,
relationships
Situation to be effective Healing rifts in a team, motivating
in stressful circumstances
Overall impact Positive
 Democratic Leadership
“What Do You Think”
Style Attributes
Modus operandi Forges consensus through
participation

Competencies Collaboration, team

leadership, communication

Situation to be effective Getting input from valued

employees, building buy-in

Overall impact Positive

 Pacesetting Leadership
“Do As I Do Now”
Style Attributes

Modus operandi Sets high standards for

performance
Competencies Drive to achieve, initiative,
conscientiousness
Situation to be effective Getting results from a highly
motivated and competent
team
Overall impact Negative
 Coaching Style of Leadership
“Try This”
Style Attributes

Modus operandi Develops people for the future

Competencies Empathy, self-awareness,

developing others
Situation to be effective Helping an employee improve
performance, developing long-
term relationships
Overall impact Positive
 Leadership in Organizations
• Today, Leadership has become an integral part of modern
business operations.
• Leadership involves a range of complex processes, which
include planning, organizing, managing, controlling,
budgeting, monitoring, testing, and implementing goals.
• The efficient handling of various organizational resources,
such as staff, equipment, materials, suppliers, buyers,
customers, information technology (IT) etc., also comes under
the purview of leadership.
Understanding The Role of
Leadership Organizations
• Identifying the goals and objectives
• Determining how much time to spend on each goal
attainment
• Prioritizing the most important tasks
• Estimating the scope of work and the number of resources
required for it
• Evaluating strategies and improving them
• Ensuring that each member has access to resources and tools
needed by them
• Setting up deadlines for completing tasks
• Conducting meetings and reviewing progress
 Leadership Skills
• Interpersonal skills: Often referred to as people skills, social
skills, or social intelligence. They involve reading the signals
that others send and interpreting them accurately in order to
form effective responses. Individuals show their
interpersonal skills all the time simply by interacting with
others.

• Communication: Project managers must have solid

communication skills to convey messages and reports, deliver
presentations, and share visions, ideas, and goals with all
project stakeholders.
 Leadership Skills
• Negotiation: Successful project managers demonstrate
excellent negotiation skills when dealing with customers,
suppliers and other relevant parties. They also use their
negotiation skills to manage conflicts and ensure that
everyone achieves their project goals.

• Risk Management: There are risks involved in every project.

For this reason, project managers must have the expertise to
implement risk mitigation strategies. They should have the
ability to use enterprise-grade risk management tools that
allow for effective analysis of potential risks.
 Leadership Skills
• Team Management: Project managers must be proficient
team management professionals, with respect to the
delegation of responsibilities, conflict resolution,
performance evaluation, and motivating members to
facilitate progress and improvements.

• Problem-Solving: The ability to solve complex problems is a

hallmark of every successful project manager. Expert project
management professionals are quick to identify problems
and offer systematic approaches to solve them.
 Leadership Skills
• Budget Management: Creating viable project budgets is one
of the key responsibilities of project managers. They need the
right skills to generate spreadsheets, track costs throughout
the project lifetime, and identify areas where costs are
exceeding.

• Reporting: Project managers should be competent in

preparing first-class project reports for evaluation. Reporting
skills are essential for coordination with management, team
members, and clients. This helps set clear goals,
expectations, and outcomes.