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Contents 1. Great Man Theory 2. Trait Theory 3. McGregor’s Theory X & Theory Y Managers 4. Blake and Mouton’s Managerial Grid 5. House’s Path Goal Theory 6. Leadership-Member Exchange (LMX) Theory 7. Transactional Leadership Theory 8. Transformational Leadership Theory 9. Situational Leadership - Meaning and Concept 10.Impact of Situational Leadership on Performance and Motivation 11.Influence of Situational Leadership on Subordinate Development

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Page 1: Leadership part 2 leadership theories

Contents

1. Great Man Theory2. Trait Theory3. McGregor’s Theory X & Theory Y Managers4. Blake and Mouton’s Managerial Grid5. House’s Path Goal Theory6. Leadership-Member Exchange (LMX) Theory7. Transactional Leadership Theory8. Transformational Leadership Theory9. Situational Leadership - Meaning and Concept10. Impact of Situational Leadership on Performance and Motivation11. Influence of Situational Leadership on Subordinate Development

Page 2: Leadership part 2 leadership theories

THE GREATMANTHEORY

Page 3: Leadership part 2 leadership theories

THE GREAT MAN THEORY

This theory is based on the belief that leaders are:1. Exceptional people.2. Born with innate qualities destined to lead.

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Are some people born to lead?

Page 5: Leadership part 2 leadership theories

LEADERS, ARE THEY ORDINARY PEOPLE?If we look at the great leaders of the past such as:

Alexander the Great Julius Caesar Napoleon Queen Elizabeth I

Page 6: Leadership part 2 leadership theories

LEADERS, ARE THEY ORDINARY PEOPLE?

They do seem to differ from ordinary human beings in several aspects. 1. They definitely possess high levels of ambition coupled with

clear visions of precisely where they want to go?2. They are cited as naturally great leaders, born with a set of

personal qualities that made them effective leaders. Even today, the belief that truly great leaders are born is

common.

Page 7: Leadership part 2 leadership theories

LEADERS, ARE THEY ORDINARY PEOPLE?

According to the contemporary theorists: Leaders are not like other people. They do not need to be intellectually genius or omniscient

prophets to succeed. They definitely should have the right stuff which is not

equally present in all people. This orientation expresses an approach to the study of leadership known as the great man theory.

Page 8: Leadership part 2 leadership theories

BASIS

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BASIS

Much of the work on this theory was done in the 19th century and is often linked to the work of the historian Thomas Carlyle.

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BASIS

The great man theory of leadership states that: Leaders are born, not made, and posses certain traits which

were inherited, they are born with the necessary attributes that set them apart from others.

These traits are responsible for their assuming positions of power and authority.

Great leaders can arise when there is a great need.

Page 11: Leadership part 2 leadership theories

BASIS

Thomas Carlyle commented on the great men or heroes of the history saying that:

“the history of the world is but the biography of great men” According to him, a leader is the one gifted with unique

qualities that capture the imagination of the masses.

Page 12: Leadership part 2 leadership theories

BASIS

Earlier Great Man Theory

But Later Great Person Theory

Page 13: Leadership part 2 leadership theories

BASIS

The theory implies that those people in power deserve to be there because of their special endowment.

Furthermore, the theory contends that these traits remain stable over time and across different groups.

Thus, it suggests that all great leaders share these characteristic regardless of when and where they lived or the precise role in the history they fulfilled.

Page 14: Leadership part 2 leadership theories

LIMITATION

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LIMITATION

Many of the traits cited as being important to be an effective leader are typical masculine traits. In contemporary research, there is a significant shift in such a mentality.

Page 16: Leadership part 2 leadership theories

CONCLUSION

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CONCLUSION

Prompted by the great man theory of leadership, and the emerging interest in understanding what leadership is: Researchers focused on the leader - Who is a leader? What are the distinguishing characteristics of great and

effective leaders? This gave rise to the early research efforts to the trait

approach to leadership.

Page 18: Leadership part 2 leadership theories

TRAIT THEORY OF LEADERSHIP

Page 19: Leadership part 2 leadership theories

BASIS

The trait theory of leadership is based on the characteristics of many leaders, both successful and unsuccessful, and is used to predict leadership effectiveness.

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BASIS

The resulting lists of traits, for both successful and unsuccessful, are then compared to those of potential leaders to assess their likelihood of success or failure.

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BASIS

Successful leaders definitely have interests, abilities, and personality traits that are different from those of the less effective leaders.

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BASIS

Leaders Are Born Not Made

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BASIS

Identify Them

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BASIS

Put Them In Position

Page 25: Leadership part 2 leadership theories

WHAT ARE TRAITS?

Page 26: Leadership part 2 leadership theories

WHAT ARE TRAITS?

In 1936, psychologist Gordon Allport found that one English dictionary contains more than 4,000 words describing different personality traits.

He categorized these traits into three levels:

Page 27: Leadership part 2 leadership theories

WHAT ARE TRAITS?

Cardinal Traits Traits that dominate an individual’s whole life, often to the point that the person becomes known specifically for these traits.

Page 28: Leadership part 2 leadership theories

WHAT ARE TRAITS?

Central Traits: These are the general characteristics that form the basic

foundations of personality. These central traits, while not as dominating as cardinal traits,

are the major characteristics you might use to describe another person.

Page 29: Leadership part 2 leadership theories

WHAT ARE TRAITS?

Terms such as:1. Intelligent.2. Honest.3. Shy.4. Anxious. are considered central traits.

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WHAT ARE TRAITS?

Secondary Traits: These are the traits that are sometimes related to attitudes or preferences and often appear only in certain situations or under specific circumstances.

Some examples would be:1. Getting anxious when speaking to a group. 2. Impatient while waiting in line.

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TRAITS THEORY

INTELLIGENCE

Average, not genius

Problem solver

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TRAITS THEORY

INITIATIVE

Independence

Tendency to be pro-active

Inventiveness

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TRAITS THEORY

SELF-ASSURANCE

Self-confident

Ambitious

Positive appraisal of his abilities

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TRAITS THEORY

THE HELICOPTER FACTOR

It is the ability to rise above the

particulars of a situation and

perceive it in relation to the overall

environment.

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SOME GENERAL TRAITS

Adaptable to situations Alert to social environment Ambitious and achievement-orientated Assertive Cooperative Decisive Dependable

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SOME GENERAL TRAITS

Dominant (desire to influence others) Energetic (high activity level) Persistent Self-confident Tolerant of stress Willing to assume responsibility

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SOME GENERAL SKILLS

Clever (intelligent) Conceptually skilled Creative Diplomatic and tactful Fluent in speaking Knowledgeable about group task

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SOME GENERAL SKILLS

Organized (administrative ability) Persuasive Socially skilled

Page 39: Leadership part 2 leadership theories

LEADER TRAITS

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LEADER TRAITS

Through many researches conducted in the last three decades of the 20th century, a set of core traits of successful leaders have been identified.

These traits are not responsible solely to identify whether a person will be a successful leader or not, but they are essentially seen as preconditions that endow people with leadership potential.

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LEADER TRAITS

Appearance, height and weight

Age, education and socioeconomic background

Self-confidence and aggressiveness

Intelligence, decisiveness, judgment and knowledge

Achievement drive, initiative and persistence

Sociability and cooperativeness

Physiological

Demographic

Personality

Intellective

Task-related

Social characteristics

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LEADER TRAITS

Among the core traits identified are:Achievement driveHigh level of effort, high levels of ambition, energy and initiative.Leadership motivationAn intense desire to lead others to reach shared goals.Honesty and integrityTrustworthy, reliable, and open.

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LEADER TRAITS

Cognitive abilityCapable of exercising good judgment, strong analytical abilities, and conceptually skilledKnowledge of businessKnowledge of industry and other technical mattersEmotional maturityWell adjusted, does not suffer from severe psychological disorders.Others: Charisma, creativity and flexibility

Page 44: Leadership part 2 leadership theories

ADVANTAGE

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ADVANTAGES OF TRAIT THEORY

1. It is naturally pleasing theory.2. It is valid as lot of research has validated the foundation and

basis of the theory.3. It serves as a yardstick against which the leadership traits of

an individual can be assessed.4. It gives a detailed knowledge and understanding of the

leader element in the leadership process.

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IMPLICATION

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IMPLICATIONS

The trait theory gives constructive information about leadership.

It can be applied by people at all levels in all types of organizations.

Managers can utilize the information from the theory to evaluate their position in the organization and to assess how their position can be made stronger in the organization.

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IMPLICATIONS

They can get an in-depth understanding of their identity and the way they will affect others in the organization.

This theory makes the manager aware of their strengths and weaknesses and thus they get an understanding of how they can develop their leadership qualities.

Page 49: Leadership part 2 leadership theories

LIMITATIONS

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LIMITATIONS

There is bound to be some subjective judgment in determining who is regarded as a ‘good’ or ‘successful’ leader

The list of possible traits tends to be very long. More than 100 different traits of successful leaders in various leadership positions have been identified. These descriptions are simply generalities.

There is also a disagreement over which traits are the most important for an effective leader

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LIMITATIONS

The model attempts to relate physical traits such as, height and weight, to effective leadership.

Most of these factors relate to situational factors. For example, a minimum weight and height might be necessary to perform the tasks efficiently in a military leadership position. In business organizations, these are not the requirements to be an effective leader.

The theory is very complex

Page 52: Leadership part 2 leadership theories

CONCLUSION

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CONCLUSION

The traits approach gives rise to questions: Whether leaders are born or made. Whether leadership is an art or science.

However, these are not mutually exclusive alternatives.

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CONCLUSION

Leadership may be something of an art; it still requires the application of special skills and techniques.

Even if there are certain inborn qualities that make one a good leader, these natural talents need encouragement and development.

Page 55: Leadership part 2 leadership theories

CONCLUSION

A person is not born with self-confidence. Self-confidence is developed, honesty and integrity are a matter of personal choice, motivation to lead comes from within the individual, and the knowledge of business can be acquired.

While cognitive ability has its origin partly in genes, it still needs to be developed. None of these ingredients are acquired overnight.

Page 56: Leadership part 2 leadership theories

McGregor’s Theory X & Theory Y Managers

Page 57: Leadership part 2 leadership theories

McGREGOR’S THEORY X & THEORY Y MANAGERS

McGregor was a teacher, researcher, and consultant whose work was considered to be "on the cutting edge" of managing people.

He influenced all the behavioral theories, which emphasize focusing on human relationships, along with output and performance.

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Theory X Managers

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THEORY X MANAGERS

The average human being has an inherent dislike of work and will avoid it if possible.

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THEORY X MANAGERS

Most people must be:1.Coerced.2.Controlled.3.Directed.4.Threatened with punishment

To get them to put forth adequate effort to achieve organizational objectives.

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THEORY X MANAGERS

The average human being:1. Prefers to be directed.2. Wishes to avoid responsibility.3. Has relatively little ambition.4. Wants security above all else.

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Theory X Managers

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THEORY Y MANAGERS

The expenditure of physical and mental effort in work is as natural as play or rest.

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THEORY Y MANAGERS

The average human being, under proper conditions, learns not only to accept but to seek responsibility.

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THEORY Y MANAGERS

People will exercise self-direction and self-control to achieve objectives to which they are committed.

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THEORY Y MANAGERS

The capacity to exercise a relatively high level of:1. Imagination2. Ingenuity (skillfulness)3. Creativity in solving organizational problems

is widely, not narrowly, distributed in the population

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THEORY Y MANAGERS

The intellectual potentialities of the average human being are only partially utilized under the conditions of modern industrial life.

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THEORY X

A leader holding Theory X assumptions would prefer an autocratic style.

A leader holding Theory Y assumptions would prefer a more democratic style.

THEORY Y

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THEORY X

This theory assumes that there is one dimension of leaders style; authoritarian style at one extreme and democratic style at the other extreme.

Authoritarian Democratic

Power and authority are retained to leader

Power, responsibility, and decisions are shared with the group

THEORY Y

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DEMOCRATIC STYLE

Democratic style of leadership characterized by:1. Higher level of staff satisfaction.2. Lower levels of staff turnover and grievance rate.3. Less inter-group conflict. 4. Is often the preferred style of subordinate.5. However, there is little evidence that this style of

leadership is associated with higher productivity.

Page 71: Leadership part 2 leadership theories

AUTHORITARIAN STYLE

There are some situations where an authoritarian style seems more appropriate:

1. Repetitive and routine work. 2. Where subordinates prefer to be directed and structured.

Page 72: Leadership part 2 leadership theories

BLAKE AND MOUTON’S MANAGERIAL GRID

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BLAKE AND MOUTON’S MANAGERIAL GRID

Task Orientation &

People Orientation are two independent dimensions in leadership studies

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BLAKE AND MOUTON’S MANAGERIAL GRID

Many of the leadership studies conducted in the 1950s at: The University Of Michigan The Ohio State UniversityFocused on these two dimensions.

Building on the work of the researchers at these Universities Robert Blake and Jane Mouton (1960s) proposed a graphic

portrayal of leadership styles through a managerial grid.

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BLAKE AND MOUTON’S MANAGERIAL GRID

The grid depicted two dimensions of leader behavior: Concern For People

Accommodating people’s needs and giving them priority on y-axis.

Concern For Production Keeping tight schedules on x-axis.

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1-9

1 -1

Concern For Production

9-9

9-1

5-5

Conc

ern

For P

eopl

e

High

Low

High

Low

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5resulting leadership styles are as follows

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IMPOVERISHED MANAGEMENT

(1-1)

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1-9

1 -1

Concern For Production

9-9

9-1

5-5

Conc

ern

For P

eopl

e

High

Low

High

Low

Page 80: Leadership part 2 leadership theories

IMPOVERISHED MANAGEMENT (1-1)

Managers with this approach are: Low on both the dimensions. Exercise minimum effort to get subordinates to work.

The leader has low concern for: Employee satisfaction. Work deadlines.

Page 81: Leadership part 2 leadership theories

IMPOVERISHED MANAGEMENT (1-1)

This results in: Dis-harmony and dis-organization prevail within the

organization.

This leader is: Termed ineffective. His action is merely aimed at preserving his job and

seniority.

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TASK MANAGEMENT (9-1)

Also called dictatorial or perish style

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1-9

1 -1

Concern For Production

9-9

9-1

5-5

Conc

ern

For P

eopl

e

High

Low

High

Low

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TASK MANAGEMENT (9-1)

Here the leaders is: More concerned about production. Have less concern for people.

The style is based on theory X of McGregor. Employees’ needs are not taken care of and they are simply

a means to an end.

Page 85: Leadership part 2 leadership theories

TASK MANAGEMENT (9-1)

This leader believes that: Efficiency can be obtained only through:

1. Proper organization of work systems. 2. Elimination of people wherever possible.

Such a style can: Increase of organization output, in short run. High employees turnover is inevitable, due to the strict

policies and procedures.

Page 86: Leadership part 2 leadership theories

MIDDLE-OF-THE-ROAD(5-5)

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1-9

1 -1

Concern For Production

9-9

9-1

5-5

Conc

ern

For P

eopl

e

High

Low

High

Low

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MIDDLE-OF-THE-ROAD(5-5)

Leader tries to maintain a balance between: Company goals. Needs of people.

The leader does not push the boundaries of achievement resulting in average performance for organization.

Here neither employee nor production needs are fully met.

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COUNTRY CLUB (1-9)

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1-9

1 -1

Concern For Production

9-9

9-1

5-5

Conc

ern

For P

eopl

e

High

Low

High

Low

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COUNTRY CLUB (1-9)

This is a collegial style characterized by: Low task orientation High people orientation

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COUNTRY CLUB (1-9)

The leader gives thoughtful attention to the needs of people thus providing them with a friendly and comfortable environment.

The leader feels that such a treatment with employees will lead to self-motivation and will find people working hard on their own.

However, a low focus on tasks can hamper production and lead to questionable results.

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TEAM MANAGEMENT (9-9)

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1-9

1 -1

Concern For Production

9-9

9-1

5-5

Conc

ern

For P

eopl

e

High

Low

High

Low

Page 95: Leadership part 2 leadership theories

TEAM MANAGEMENT (9-9)

This leader style is characterized by: High people orientation. High task focus.

The style is based on the theory Y of McGregor and has been termed as most effective style according to Blake and Mouton.

Page 96: Leadership part 2 leadership theories

TEAM MANAGEMENT (9-9)

The leader feels that: Empowerment Commitment Trust Respect are the key elements in creating a team atmosphere which will automatically result in high employee satisfaction and production.

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HOUSE’S PATH GOAL THEORY

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HOUSE’S PATH GOAL THEORY

The theory was developed by Robert House. The theory roots is based on the expectancy theory of

motivation.

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HOUSE’S PATH GOAL THEORY

The theory is based on the premise that an employee’s perception of expectancies between his effort and the outcome is greatly affected by a leader’s behavior.

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HOUSE’S PATH GOAL THEORY

The leader helps employees in attaining rewards by: Clarifying them the paths to achieve goals. Removing obstacles to performance.

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HOUSE’S PATH GOAL THEORY

They do so by providing: Information. Support. Other resources required by employees to complete the

task.

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HOUSE’S PATH GOAL THEORY

House’s theory advocates servant leadership. As per servant leadership theory, leadership is not viewed as a

position of power. Rather, leaders act as coaches and facilitators to their

subordinates.

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HOUSE’S PATH GOAL THEORY

According to House’s path-goal theory, a leader’s effectiveness depends on: 1. Employee contingent factors.2. Environmental contingent factors .3. Certain leadership styles.

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Skills Experience

Directive Supportive Participative Achievement-oriented

Employee motivation Employee satisfaction Leader acceptance

Task structure Team dynamics

Leadership Style

Employee Contingencies

Leader Effectiveness

Environmental Contingencies

Page 105: Leadership part 2 leadership theories

LEADERSHIP STYLE

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LEADERSHIP STYLES

Directive Provides guidelines. Lets subordinates know what is expected of them. Sets them their performance standards. Controls behavior when performance standards are not met. Makes judicious use of rewards and disciplinary action. The style is the same as task-oriented one.

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LEADERSHIP STYLES

Supportive Friendly toward subordinates. Displays personal concern for their needs, welfare, and well-

being. This style is the same as people-oriented leadership.

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LEADERSHIP STYLES

Participative Believes in group decision-making. Shares information with subordinates. Consults his subordinates on important decisions related to

work, task goals, and paths to resolve goals.

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LEADERSHIP STYLES

Achievement-oriented Sets challenging goals. Encourages employees to reach their peak performance. Believes that employees are responsible enough to

accomplish challenging goals. This is the same as goal-setting theory.

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EMPLOYEE CONTINGENCIES

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EMPLOYEE CONTINGENCIES

These include factors such as:1. Employees’ needs.2. Focus of control.3. Experience.4. Perceived ability.5. Satisfaction.6. Willingness to leave the organization.7. Anxiety.

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EMPLOYEE CONTINGENCIES

For example:If followers are high inability; Directive style of leadership may be unnecessary. Supportive approach may be preferable.

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ENVIRONMENTAL CONTINGENCIES

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ENVIRONMENTAL CONTINGENCIES

These include factors such as:1. Task structure. 2. Team dynamics.

They are outside the control of employees.

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ENVIRONMENTAL CONTINGENCIES

For employees performing simple and routine tasks;Supportive style is much effective than a directive one.

For employees performing non-routine tasks;Participative style works much better.

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ENVIRONMENTAL CONTINGENCIES

When team cohesiveness is low;Supportive leadership style must be used.

When performance-oriented team norms exist;Directive style or possibly an achievement-oriented style works better.

Leaders should apply directive style to counteract team norms that oppose the team’s formal objectives.

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CONCLUSION

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CONCLUSION

This theory consistently reminds the leaders that their main role as a leader is to: Assist their subordinates in defining their goals Then to assist them in accomplishing those goals in the

most efficient and effective manner. This theory gives a guide map to the leaders about how to

increase subordinates satisfaction and performance level.

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Leadership-Member Exchange (LMX) Theory

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BASIS

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BASIS

Informal observation of leadership behavior suggests that leader’s action is not the same towards all subordinates.

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BASIS

The theory views leadership as consisting of a number of relationships linking the leader with a follower.

The quality of the relationship is reflected by the degree of:1. Mutual trust.2. Loyalty.3. Support.4. Respect.5. Obligation.

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BASIS

According to the theory, leaders form different kinds of relationships with various groups of subordinates.

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BASIS

One group, referred to as the in-group, is favored by the leader. Members of in-group receive considerably more attention

from the leader and have more access to the organizational resources.

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BASIS

By contrast, other subordinates fall into the out-group. These individuals are disfavored by the leader. They receive fewer valued resources from their leaders.

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BASIS

Leaders add members to the in-group on the basis of: 1. Perceived similarity with respect to personal

characteristics, such as age, gender, or personality. 2. The leader belief that a person is competent at

performing his/her job.

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BASIS

The relationship between leaders and followers follows 2 stages:

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BASIS

Role taking: When a new member joins the organization, the leader

assesses the talent and abilities of the member and offers him opportunities to demonstrate his capabilities.

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BASIS

Role making: An informal and unstructured negotiation on work-related

factors takes place between the leader and the member. A member who is similar to the leader is more likely to

succeed. A betrayal by the member at this stage may result in him

being relegated to the out-group

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BASIS

For a follower will be part of the leader’s in-group, this depends on:

1. The Degree of mutual respect for each other’s capabilities.2. The deep sense of mutual trust.3. The sense of strong obligation to one another.

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BASIS

Benefit of in-group followers:They act as assistants or advisers and to have higher quality personalized exchanges with the leader than do out-group followers. These exchanges typically involve a leader’s emphasis on:

1. Assignments to interesting tasks.2. Delegation of important responsibilities. 3. Information sharing.4. Participation in the leader’s decisions.5. Special benefits, such as personal support and favorable

work schedules.

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STRENGTHS OF LMX THEORY

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Strengths of LMX Theory

LMX Theory concentrates and talks about specific relationships between the leader and each subordinate.

LMX Theory focuses our attention to the significance of communication in leadership. When this communication is accompanied by features such

as mutual trust, respect and devotion, it leads to effective leadership.

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CRITICISMS OF LMX THEORY

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Criticisms of LMX Theory

LMX Theory fails to explain the particulars of how high-quality exchanges are created.

LMX Theory is objected on grounds of fairness and justice as some followers receive special attention of leaders at workplace and other followers do not.

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IMPLICATIONS

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Implications

According to many studies conducted in this area, it has been found that leaders definitely do support the members of the in-group and may go to the extent of inflating their ratings on poor performance as well.

This kind of a treatment is not given to the members of the out-group.

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Implications

Due to the favoritism that the in-group members receive from their leaders, they are found to perform their jobs better and develop positive attitude towards their jobs in comparison to the members of the out-group.

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Implications

The job satisfaction of in-group members is high and they perform effectively on their jobs.

They tend to receive more mentoring from their superiors which helps them in their careers. For these reasons, 1. Low attrition rate2. Increased salaries3. Promotion rates are associated with the in-group members in comparison to that of the out-group members.

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TRANSACTIONAL LEADERSHIP THEORY

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BASIS

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Max Weber German sociologist

21 April 1864 – 14 June 1920

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BASIS

This style is most often used by the managers. It focuses on the basic management process of controlling,

organizing, and short-term planning.

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BASIS

Assumptions of Transactional Theory1. Employees are motivated by reward and punishment.2. Subordinates have to obey the orders of the superior.3. Subordinates are not self-motivated. They have to be closely

monitored and controlled to get the work done from them.

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BASIS

Transactional leadership involves motivating and directing followers primarily through appealing to their own self-interest.

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BASIS

The power of transactional leaders comes from their formal authority and responsibility in the organization.

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BASIS

The main goal of the follower is to obey the instructions of the leader.

The style can also be mentioned as a ‘telling style’.

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BASIS

The exchange between leader and follower takes place to achieve routine performance goals.

These exchanges involve four dimensions:1. Contingent rewards.2. Active management by exception.3. Passive management by exception.4. Laissez-faire.

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CONTINGENT REWARDS

Transactional leaders;1. Link the goal to rewards.2. Clarify expectations.3. Provide necessary resources.4. Set mutually agreed upon goals.5. Provide various kinds of rewards for successful performance. 6. They set smart (specific, measurable, attainable, realistic,

and timely) goals for their subordinates.

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ACTIVE MANAGEMENT BY EXCEPTION

Transactional leaders;1. Actively monitor the work of

their subordinates.2. Watch for deviations from

rules and standards. 3. Taking corrective action to

prevent mistakes.

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PASSIVE MANAGEMENT BY EXCEPTION

Transactional leaders;1. Intervene only when standards

are not met or when the performance is not as per the expectations.

2. They may even use punishment as a response to unacceptable performance.

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LAISSEZ-FAIRE

Transactional leaders;1. Provide an environment where the subordinates get many

opportunities to make decisions. 2. The leader himself abdicates responsibilities and avoids

making decisions and therefore the group often lacks direction.

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IMPLICATIONS

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IMPLICATIONS

The transactional leaders overemphasize detailed and short-term goals, and standard rules and procedures.

They do not make an effort to enhance followers’ creativity and generation of new ideas.

This kind of a leadership style may work well where the organizational problems are simple and clearly defined.

Such leaders tend to not reward or ignore ideas that do not fit with existing plans and goals.

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IMPLICATIONS

The transactional leaders are found to be quite effective in guiding efficiency decisions which are aimed at cutting costs and improving productivity.

The transactional leaders tend to be highly directive and action oriented and their relationship with the followers tends to be transitory and not based on emotional bonds.

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IMPLICATIONS

The theory assumes that subordinates can be motivated by simple rewards.

The only ‘transaction’ between the leader and the followers is the money which the followers receive for their compliance and effort.

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DIFFERENCE BETWEEN TRANSACTIONAL AND TRANSFORMATIONAL LEADERS

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Transactional leadership Transformational Leadership

Leadership is responsive Leadership is proactive

Works within the organizational culture

Work to change the organizational culture by implementing new ideas

Transactional leaders make employees achieve organizational objectives through rewards and punishment

Transformational leaders motivate and empower employees to achieve company’s objectives by appealing to higher ideals and moral values

Motivates followers by appealing to their own self-interest

Motivates followers by encouraging them to transcend their own interests for those of the group or unit

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CONCLUSION

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CONCLUSION

The transactional style of leadership is viewed as insufficient, but not bad, in developing the maximum leadership potential.

It forms as the basis for more mature interactions but care should be taken by leaders not to practice it exclusively, otherwise it will lead to the creation of an environment permeated by position, power, perks, and politics.

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TRANSFORMATIONAL LEADERSHIP THEORY

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BASIS

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BASIS

Creating high-performance workforce has become increasingly importantto do so,Business leaders must be able to inspire organizational members to go beyond their task requirements.

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BASIS

As a result, new concepts of leadership had emerged, transformational leadership being one of them.

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BASIS

Transformational leadership may be found at all levels of the organization: 1. Teams.2. Departments.3. Divisions.

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BASIS

Such leaders are:1. Visionary.2. Inspiring.3. Daring.4. Risk-takers.5. Thoughtful Thinkers.

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BASIS

They have a charismatic appeal. But charisma alone is insufficient for changing the way an

organization operates.

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BASIS

For bringing major changes, transformational leaders must exhibit the following four factors:

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Transformational Leadership

Inspirational Motivation

Intellectual Stimulation

Idealized Influence

Individualized Consideration

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Transformational Leadership

Inspirational Motivation

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INSPIRATIONAL MOTIVATION

The foundation of transformational leadership is the promotion of consistent vision, mission, and a set of values to the members.

Their vision comes from they know what they want from every interaction.

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INSPIRATIONAL MOTIVATION

Transformational leaders guide followers by providing them with a sense of meaning and challenge.

They work enthusiastically and optimistically to foster the spirit of teamwork and commitment.

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Transformational Leadership

Intellectual Stimulation

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INTELLECTUAL STIMULATION

Such leaders encourage their followers to be innovative and creative.

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INTELLECTUAL STIMULATION

They encourage new ideas from their followers and never criticize them publicly for the mistakes committed by them.

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INTELLECTUAL STIMULATION

The leaders focus on the “what” in problems and do not focus on the blaming part of it.

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INTELLECTUAL STIMULATION

They have no hesitation in discarding an old practice set by them if it is found ineffective.

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Transformational Leadership

Idealized Influence

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IDEALIZED INFLUENCE

They believe in the philosophy that a leader can influence followers only when he practices what he preaches.

The leaders act as role models that followers seek to emulate.

Such leaders always win the trust and respect of their followers through their action.

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IDEALIZED INFLUENCE

They typically place their followers needs over their own, sacrifice their personal gains for them, and demonstrate high standards of ethical conduct.

The use of power by such leaders is aimed at influencing them to strive for the common goals of the organization.

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Transformational Leadership

Individualized Consideration

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INDIVIDUALIZED CONSIDERATION

Leaders act as mentors to their followers and reward them for creativity and innovation.

The followers are treated differently according to their talents and knowledge.

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INDIVIDUALIZED CONSIDERATION

They are empowered to make decisions and are always provided with the needed support to implement their decisions.

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IMPLICATIONS

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IMPLICATION

The current environment characterized by uncertainty, global turbulence, and organizational instability calls for transformational leadership to prevail at all levels of the organization.

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IMPLICATION

The followers of such leaders demonstrate high levels of job satisfaction and organizational commitment, and engage in organizational citizenship behaviors.

With such a devoted workforce, it will definitely be useful to consider making efforts towards developing ways of transforming organization through leadership.

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SITUATIONAL LEADERSHIP MEANING AND CONCEPT

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LEADERSHIP

Ever since man was a hunter gatherer and lived in closely knit groups, they had leaders who led the hunting expeditions and took greater risk than the rest of the group members.

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LEADERSHIP

In turn, they were bestowed with larger share of hunting, respect and a higher position in the group.

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LEADERSHIP

With changing times, how leadership is perceived has also changed, but, it remains an important aspect of social fabric nevertheless

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LEADERSHIP

Leaders are people who know their goals, and have the power to influence thoughts and actions of others to garner their support and cooperation to achieve these goals.

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LEADERSHIP

In-case of leaders, these goals are rarely personal and generally to serve the larger good.

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BASIS

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BASIS

This theory says that the same leadership style cannot be practiced in all situations, depending upon the circumstance and environmental context the leadership style also changes.

The pioneers of this theory were Kenneth Blanchard and Paul Hersey

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BASIS

The model encourages leaders to:1. Analyze a particular situation in depthand then 2. Decide to lead their employees in the most appropriate

manner that suits that situation.

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BASIS

The 4 aspects that could be considered in a situation are:1. Employees’ competences.2. Maturity of the employees.3. Complexity of the task.4. Leadership style.

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IT IS ALSO REPRESENTED BY A DIAGRAM MOST OFTEN WHICH IS BELOW:

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SUPPORTING COACHING

DELEGATING DIRECTINGSupp

ortiv

e Be

havi

or

Directive BehaviorLow

D4

High

D3 D2 D1

Development level of followers

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SUPPORTING1. The leaders seeks opinion and

participation of the followers to establish how a task should be performed.

2. The leader in this case tries creating relationship with the followers

COACHING - SELLING STYLE Is when a leader 1. provide controlled direction 2. little more open and allows two way

communication between him/herself and the followers thus ensuring that the followers buy in the process and work towards the desired goals.

DELEGATING1. In this case, the leader plays a role in

decisions that are taken but passes on or delegates the responsibilities of carrying out tasks to his followers.

2. The leader however monitors and reviews the process.

DIRECTING - TELLING STYLEIs associated with leaders who:1. Minutely supervise their followers.2. Constantly instructing them about why,

how and when of the tasks that need to be performed.

Supp

ortiv

e Be

havi

or

Directive BehaviorLow

D4

High

D3 D2 D1

Development level of followers

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The developmental level of follower is an important indication for a leader to decide the most appropriate leadership style for them:

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D1 - Low Competence, High Commitment

This category of followers may not have the specific skill required but they display a high level of commitment towards the task they have to perform, with confidence and motivation, they figure out ways to complete the tasks.

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D2 - Some Competence, Low Commitment

In this case, the followers have a certain level of competence which might be sufficient to do the job but they are low on commitment towards the tasks.

Despite of having relevant skills to perform the task they seek external help when faced with new situations. (A team member made the trainer for new joiners)

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D3 - High Competence, Variable Commitment

This category consists of followers who have the competence to do the job but their commitment level is inconsistent.

They also tend to lack the confidence to go out and perform task alone.

(E.g. President Barack Obama)

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D4 - High Competence, High Commitment

The followers who are identified in this category are the ones who have high competence and high commitment towards tasks to be performed.

It might happen so that they turn out better than their leaders in performing these tasks.

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CONCLUSION

Situational leader would try to accommodate his leadership style as per the situation and the level of competence and commitment of his followers.

This information is also an important aspect to consider when senior leaders act as coaches for their subordinates in the organizations.

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Impact of Situational Leadership on Performance and Motivation

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Impact of Situational Leadership on Performance and Motivation

Leaders are role models who influence the culture, values, thoughts and actions of the organization and its people.

The leadership style practiced by managers greatly influences the performance and productivity at the work place.

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Impact of Situational Leadership on Performance and Motivation

The situation leadership model encourages managers to flexibly use their leadership style based on the situation and thus achieve effective results.

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Impact of Situational Leadership on Performance and Motivation

Both at the middle managerial level where leaders work closely with people

At higher managerial level where leaders are responsible to a number of people, their approach has an impact on the motivational levels of the organization.

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A LEADER NEEDS TO CONSTANTLY KNOW THE MOTIVATIONAL NEEDS OF THE EMPLOYEES.

ONE OF SIMPLE FACTORS OF SUCCESS CITED IN THE ORGANIZATIONS IS A MOTIVATED WORKFORCE.

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Impact of Situational Leadership on Performance and Motivation

The 4 leadership style of Telling, Selling, Participating and Delegating proposed in the situational leadership model can be used as per the motivational need of the subordinate.

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Impact of Situational Leadership on Performance and MotivationFor example For a senior manager who has been recently recruited and who

boasts an illustrious career graph would need more responsibilities and opportunities to prove himself i.e. Delegating to remain motivated.

On the other hand A fresher joining the organization may look at more Telling and a

little participative approach to keep him/her motivated.

A leader has to carefully evaluate and then decide on the right approach for the subordinate.

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Impact of Situational Leadership on Performance and Motivation

Situational Leadership has all the more relevance when teams work together especially across functions or locations. In these cases the team members might be physically separated from the leaders and the work situations might rapidly change, in such cases, maintaining the involvement and motivation level of team members becomes important. To create a high performance team that works effectively, the style that the leader would have to choose may be unique for each team.

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Impact of Situational Leadership on Performance and Motivation

A leader has to provide a vision to the people; it is the visions which help them direct and redirect their efforts towards it.

In the recent times where changes are rapid in the organizations, the leaders have to be fully sensitized to what style would work the best, sometimes they might have to use a combination of styles to address issues effectively.

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Impact of Situational Leadership on Performance and Motivation

For e.g. For a new change that is being introduced, the initial approach

has to be Selling, where people are educated about the change. The next step becomes Telling, where the people have to be

instructed as to how the change would be carried out. When the change starts settling in and people adopt it, they

style can become Participating, where the people get an opportunity to partner in the change and take it ahead.

The last change would then become Delegating when the change can now be carried on by the others.

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Impact of Situational Leadership on Performance and Motivation

The ultimate aim of any leader is to smoothly arrive at a stage where he/she can easily delegate tasks without worrying about its completion or effectiveness.

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Impact of Situational Leadership on Performance and Motivation

The leadership style also has a bearing when leaders are to act as mentors and coaches for their subordinates.

The learning style of the subordinates can be interpreted in the terms of Telling, Selling, Participating and Delegating.

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Impact of Situational Leadership on Performance and Motivation Some subordinates learn when they know exactly what is to be

done Some learn when they know the importance of the task Some learn when they understand the how of what is to be

done Some learn when they are actually allowed to perform the task.

When a leader acts as a coach, he has to keep in mind what works best for the coach, and what works for one might not work for the other.

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

As we know that the situational leadership theory proposes that a leader needs to change his leadership style as per the situation and environment.

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

Leaders also need to consider the level of their followers; to decide on a particular leadership style.

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

Let us now try to explore: Whether the leadership style practiced by the leader

influences the subordinates? If they do, then how does it happen?

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

In the organizational context, a manager is not just a superior for his team of subordinates but is also their leader.

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT Manager has to make sure that

subordinates are working cohesively as a unit to achieve global goals.

If a problem arises, the manager has to step up and take the responsibility as a leader.

How would a manager ensure that each member and the team are working towards that common goal?

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

Sometimes, The contribution from each member is not equal. Some are working and some are not.This often leads to imbalances and negativities in the team and work environment.

The leadership style practiced by the manager is responsible for such a situation to arise.

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

Every team has people with different levels of competence and commitment towards the work they do. Some are pro-active. Others need to be pushed.

The role of the manager as a leader becomes more important where he needs to be flexible with the kind of leadership style they can practice with each subordinate.

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

Let’s try to understand the relationship between Leadership styles. Subordinate development.

Recall the four situational leadership styles identified by Hersey and Blanchard. They were:1. Telling2. Selling3. Participating4. Delegating

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT Now, have a look at the following diagram which depicts the

development level of the followers based on their competence and commitment towards their work.

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INFLUENCE OF SITUATIONAL LEADERSHIP STYLES ON SUBORDINATE DEVELOPMENT

So, which leadership style would be appropriate with each of these levels?

A manager as a leader has to partner in the developmental journey of his subordinate.

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For a subordinate who is at a level D1

Low competence High motivation

The leadership style could be Participative where the leader involves the subordinate and further motivates him to build on his competence to increase his effectiveness at tasks.

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For a subordinate, who stands at a level D2

Has some competence. Lacks or shows inconsistent commitment.

The leader can resort to the Telling style. In this case, the subordinate cannot be relied upon to

complete the task without instructions and guidance.

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For a subordinate, who stands at a level D3

High competence. Variable commitment.

The leadership style could be Selling style. The leader has to create a buy in from these subordinates to

secure their commitment towards the task. Since they have the necessary competence to do the task,

instructions are not required but such subordinates wish to see the value of the work they are doing to get committed to it.

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For a subordinate, who stands at a level D4

High commitment. High motivation.

The leadership style best suited could be Delegating. The leader needs to understand, acknowledge and appreciate

the competence and commitment of the subordinates and entrust them with responsibilities.

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LEADERS HAVE TO BE AWARE OF THEIR SURROUNDINGS AND SENSITIZED TO THE ABILITIES AND MOTIVATIONS OF THEIR FOLLOWERS/SUBORDINATES IN ORDER TO BE ABLE TO TAKE EFFECTIVE DECISIONS.