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Transformational Leadership
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Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin
11. Transformational
Leadership Development:
the Essence of SHRM
Dr. Debi S. Saini
Professor & Chairperson—HRM Area
Management Development Institute, Gurgaon-122007
Issues discussed in this Session:
• Linking leadership with SHRM
• Film analysis: Transformational Competencies
• Transactional & Transformational leaders
• People & Task concerns: GRID Theory
• Changing perceptions through leadership dev.
3
Cooperation/Engagement
Is the essence of Strategic HRM: Need to Change People’s Perception
4
The above realities necessitate
Developing
Transformational Leadership
for Employee Engagement
5
Learn to Lead Change in Chaotic Comptt.:
Jack Welch--From a Cost-cutting Butcher to Change Master
Jack Welch took GE
from a 13 B. to 500 B. Company
in 20 years
6
Leaders Focus on Culture & Outcome; not Rules
1. Develop business vision
2. Culture to achieve vision
3. Flatten the organization
4. Eliminate bureaucracy
5. Empower individuals
6. Raise quality & efficiency
7. Eliminate boundaries
Welch’s 7 Point Program for
Mgt by Leadership
GE Market
Capitalization
Sam Pitroda
espoused a mission
for the masses of India
He became the architect of
the telecom revolution in India
He led changes
in structure & culture
at a massive scale
to provide a tele-network
of global standard
Great Leaders Inspire;
Create Enthusiasm
Enthusiasm is Highly contagious
• “Without doubt, the head of HR should be
the 2nd most important person
in any organization. from the point of view of CEO,
the HR director should be at least equal to CFO.” --Jack Welch
9
What do you Think are
the Leadership Qualities
Shown by
the Successful Jailor
Transformational Leadership Involves:
1. Vision—Orgl.; individual
2. Team-building
3. Trusts
4. Results/task balancing
5. Charisma (see him in sky as well)
6. Risk-taking
7. Paternalism/Care (Indian context)
8. Credibility/integrity
9. Listening/Communication
10. Empathy
11. Good human-being
12. Guiding/Counseling
13. Change master
14. Servant leadership
15. Transparency
16. Diversity mgt.
17. Idiosyncratic passion
18. Admits failure
19. Social responsibility
20. Inter-personal skills
21. Inspires
22. Leads by example
23. Compassion
24. Empowers/delegates
25. Tact
26. Emotional intelligence
27. Metrics:
Who is a Transformational Leader?
Burns (1978)
A transformational leader is one
who looks for potential motives in followers,
seeking to satisfy higher needs,
and engages the full person of the follower
TL: inspires their followers
to go beyond the calls of duty
and acts as mentor
Who is a Transformational Leader?
“The goal of transformational leadership
is to “transform” people & orgs. in a literal sense
—to change them in mind and heart;
enlarge vision, insight, and understanding;
clarify purposes;
make behavior congruent with beliefs, principles, or values;
and bring about changes that are
permanent, self-perpetuating, & momentum building.”
Steven Covey, Author of 7 Habits of Highly Successful People
Since late 1970’s (James Burn), a ‘New leadership’ model talked
1. Vision, look for potential motives inspire Ideas &
create shared “dreams”
2. Integrity: Honest & credible; acts out of conviction
3. Charisma: Uses emotion for faith, loyalty, pride, TRUST
4. Empower: Helps others develop, delegates challenging work
5. Symbolism: Identifies “heroes,”: celebrates excellence
6. Proactive Communication: orally & with body language
7.Desired culture: Teach—Be Innovative—Build leaders—Use Metrics
What do Transformational Leaders do?
Transformational & Transactional Leadership: Difference
Category Transactional Transformational
Source of power Rank, position Character, competence
Follower reaction Compliance Commitment
Time frame Short-term Long-term
Rewards Pay, promotion, etc. Pride, self-esteem, etc.
Supervision/Control Important Less important
Counseling focus Evaluation Inspiration/Development
Where change occurs Follower behavior Follower attitude, values
Where leadership found Leader’s behavior Follower’s heart
1
5
Let us Look at
these two Situations:
Task & People Need:
GRID
R.R. Blake & Jane S. Mouton Leadership Grid
Low
High
Low High 9 7 8
9
6 5 4 3 2 1
1
2
3
4
5
6
7
8
Concern for Production
Concern for
People
1,9
9,1 1,1
9,9
5,5
Country Club Mgt. Team Management
Impoverished Mgt. Authority-Compliance
Middle of the Road Mgt.
Thoughtful attention to the
needs of people for satisfying
relationships leads to a com-
fortable, friendly org.
atmosphere and work tempo
Work accomplishment is from
committed people; interdependence
through a “common stake” in org.
goals leads to relation of trust/respect
Exertion of minimum effort to get
required work done is appropriate
to sustain org. membership.
Adequate org. performance is possible
through balancing the necessity to get
out work with maintaining morale of
people at a satisfactory level.
Efficiency in operations results
from arranging conditions of work
in such a way that human elements
interfere to a minimum degree.
Source: Robert R. Blake and Jane S. Mouton.
Interpersonal Orientation Task Orientation
• Solicits opinions
• Recognizes others’ positions/ideas
• Flexible, open communication
• Listens carefully
• Makes requests
• Focus: Feelings, emotions, needs
• Productivity through personal skills
• Mostly communicates orally
• Maintains open-door policy
• Disseminates info.
• Ignores others’ positions/ ideas
• Rigid communication
• Interrupts others
• Makes demands
• Focus: Data/info. on tasks
• Productivity through tech. skills
• Mostly communicates in writing
• Maintains “closed door” policy
Be an Emotionally Intelligent Leader
• They manage interpersonal relationships & build networks (teams)
[D. Goleman’s 5 components of EI leaders]:
• Self-awareness
• Self-regulation
• Motivation
• Empathy (Understand & share feelings of another)
• Social skills (inter-personal)
Daniel Goleman, Ph.D.
What is EI
• EI is the ability
to identify, assess, & control
the emotions
of oneself, of others, & of grs.
What Have we Focused on in This Session?
• HR must facilitate cooperation through Leadership
• Transformatl. leadership is most used framework
• Leaders must inspire, care, be fair, honest, measure
• Leading is different from managing
• Important to balance task/people needs in managing
• SHRM is difficult to implement without transfl leadership
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