WHAT IS THE SAME THING BETWEEN THEM??

Leading peopleInfluencing peopleCommanding peopleGuiding people

Leadership is the influencing process of leaders and followers Leadership is the influencing process of leaders and followers to achieve organizational objectives through change.to achieve organizational objectives through change.

WHAT IS LEADERSHIP?

PowerA fundamental understanding of peopleAbility to inspire followers to apply their full

capabilitiesThe leader’s style and the development of a conducive

organizational climate

INGREDIENT OF LEADERSHIP

INFLUENCING

The process of affecting other’s attitudes and behavior to achieve an objective.

9-4

FORMAL AND INFORMAL LEADERS

Formal Leader: A member of an organization who is given authority to influence other organizational members to achieve organizational goals.

Informal Leader: An organizational member with no formal authority to influence others, but who has special skills or talents to influence others.

LEADER ATTRIBUTES

Intellectual Traits;Intellectual Traits; Judgmental abilityJudgmental ability KnowledgeKnowledge Verbal abilitiesVerbal abilities

Personality Traits;Personality Traits; Alertness Originality Personal integrity Self confidence Creativity Emotional balance Diplomacy

Physical TraitsPhysical Traits Supervision AbilitySupervision Ability

VS.

Planning & Budgeting Targets/Goals

Organizing & StaffingControlling & Problem

SolvingFocus on thingsDo things rightFormal authority

Change Setting Direction -Visions Aligning People Motivating “Inspiring/Moving” Focus on people Do the right things Influence Personal Charisma

Rational Intuitive

Managers Leaders

Autocratic

TYPE OF LEADERSHIP

Follower Follower Follower

Leader makes decisions without reference to anyone elseHigh degree of dependency on the leaderCan create de-motivation and alienation

of staffMay be valuable in some types of business where

decisions need to be made quickly and decisively

AUTOCRATIC

Democratic

TYPE OF LEADERSHIP

Follower Follower Follower

Encourages decision making from different perspectives –leadership may be emphasized throughout the organisation

May help motivation and involvementWorkers feel ownership of the firm and its ideasImproves the sharing of ideas

and experiences within the businessCan delay decision making

DEMOCRATIC

LAISSEZ-FAIRE OR FREE REIN

Follower Follower Follower

‘Let it be’ – the leadership responsibilities are shared to the subordinates

Can be very useful in businesses where creative ideas are important

Can be highly motivational, as people have control over their working life

Can make coordination and decision making time-consuming and lacking in overall direction

Relies on good subordinates

LAISSEZ-FAIRE

The Trait theories Leadership is rooted in the characteristic that certain

individuals possesSet characteristics that determine good leader

Are such characteristics inherently gender biased? Do such characteristics produce good leaders? Does this imply that leaders are born not bred?

THEORIES OF LEADERSHIP

Self confidence Knowl

edge

Charisma Drive

Honesty &

Integrity

The Behavioral theoryImply that leaders can be trained – focus on the way

of doing thingsStructure based behavioural theories – focus on the leader

instituting structures – task orientatedRelationship based behavioural theories – focus on the

development and maintenance of relationships – process orientated

THEORIES OF LEADERSHIP

The Contingency Theory Leadership as being more flexible – different leadership styles used

at different times depending on the circumstance. Suggests leadership is not a fixed series of characteristics that can

be transposed into different contexts May depend on:

Type of staff History of the business Culture of the business Quality of the relationships Nature of the changes needed Accepted norms within the institution

THEORIES OF LEADERSHIP

TRANSACTIONAL VS. TRANSFORMATIONAL LEADERSHIP

Transactional : Leadership that motivates followers by exchanging rewards for high performance and noticing and reprimanding subordinates for mistakes and substandard performance.

Transformational : Leadership that inspires followers to trust the leader, perform behaviors that contribute to the achievement of organizational goals, and perform at a high level.

CHARACTERISTICS OF TRANSACTIONAL LEADERS

Contingent Reward: Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments.

Management by Exception (active): Watches and searches for deviations from rules and standards, takes corrective action.

Management by Exception (passive): Intervenes only if standards are not met.

CHARACTERISTICS OF TRANSFORMATIONAL LEADERS

Charisma: Provides vision and sense of mission, instills pride, gains respect and trust.

Inspiration: Communicates high expectations, uses symbols to focus efforts, expresses important purposes in simple ways.

Intellectual Stimulation: Promotes intelligence, rationality, and careful problem solving.

Individualized Consideration: Gives personal attention, treats each employee individually, coaches, advises.

TransformationalTransformationalLeadershipLeadership

CreatingCreatinga Visiona Vision

CommunicatingCommunicatingthe Visionthe Vision

BuildingBuildingCommitmentCommitment

ModellingModellingthe Visionthe Vision

TRANSFORMATIONAL LEADERSHIP ELEMENTS

TransactionalLeadership

•Motivating for performance at expected levels

•Initiating structure to clarify roles and

tasks

•Stressing the linkbetween reward andgoal achievement.

•Uses agreed uponperformance to

motivate

TransformationalLeadership

•Motivating for performance beyond expectations

•Inspiring for missions beyondself interest.

•Instilling confidence to achieveperformance

Performancebeyondexpectations

Transformational LeadershipGoes Beyond TransactionalLeadership

Another term for PEER BASED ORGANIZATIONGrow from a thinking that, with ‘LEADER’ position, we create a

dychotomy: One of a leaders – a select and privilege few One of a followers – the vast majority

‘LEADER’ create RANK in position can immotivate members/subordinates

In Peer based Organization Openness Transparency Competence Alignment

‘LEADERLESS’ ORGANIZATION

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