Chapter 15

Leading in organisationsAdministrationAssignment 2 on MoodleLeadership quotes: http://www.youtube.com/watch?v=UhxINyIZ454

3

Lecture overview• The nature of leadership• Leadership versus management (power)• Leadership traits• Autocratic versus democratic leaders• Behavioural approaches• Contingency approaches• Leading change• Contemporary leaders• Modern leadership as service• Leadership of sustainable development

4

The nature of leadershipDefinition:

‘Leadership….is the ability to influence people towards the attainment of organizational goals’

(Samson, Catley, Cathro & Daft 2012 p. 557).

q.xorro.com/ebzh• Wait until advises site ready• Log into q.xorro.com/ebzh• Login with your Id, if no luck log in using ID as alias

• Part of assessment three, designed to encourage you to read ahead of class.

• Bonus potentially 15% of assignment 3• Best marks from homework and newspaper

readings, xorro quizzes

6

Leadership versus management• Leaders versus managers– Sources of power

• Position power• Personal power• Empowerment

7

Leadership versus management

• Position power– Legitimate power • Power derived from a person’s position or job

(managerial hierarchy) in an organization.– Reward power• Power based on the capacity to provide valued

rewards to others. Examples include money, promotions, compliments or enriched jobs.

8

Leadership versus management

• Position power– Coercive power • Power based on the ability to punish and threaten

others. – e.g. a manager may threaten to withhold a pay raise or a

transfer, demote or even recommend the firing of a subordinate who does not act as desired.

– NZ this may result in a personal grievance case!

9

Leadership versus management• Personal power– Expert power• Power that stems from special knowledge of or skill in

the tasks performed by employees.

– Referent power• Power that results from characteristics that command

employee’s identification, respect and admiration, so that they wish to emulate the leader.

Leadership versus management

• Empowerment– The goal of senior executives in many

organizations is not simply to wield power but also to give it away to people who can get jobs done

– Question?– What do you think are the qualities of • 1 Leaders and • 2 Managers

Qualities of leaders and managers

• Leader– SOUL– Visionary– Passionate– Creative– Flexible– Inspiring – Innovative – Courageous – Imaginative – Experimental – Initiates change – Personal power

• Manager– MIND– Rational– Consulting– Persistent– Problem solving– Tough-minded– Analytical– Structured– Deliberate– Authoritative– Stabilizing– Position power

Part Five Leading• Review video clip part 5 Samson Catley,

Cathro, Daft see Moodle week 8Work sheet to complete

• Born to the job? Managers and leaders• http://www.youtube.com/watch?v=PTRBYDVi6_0 (Wilfred Jarvis)

13

Leadership traits- what are they can we adopt them?

• Distinguishing personal characteristics, such as intelligence, values and appearance.

• Focus on great leaders (examine traits).• Only weak relationship is evident between traits

and leader success.• Also examined physical, social and work-related

characteristics of leaders.• Some traits do not suit every organisation or

situation.

14

Autocratic versus democratic leaders• Autocratic leader– Tends to centralise authority and rely on

legitimate, reward and coercive power.• Democratic leader– Delegates authority to others, encourages

participation, and relies on expert and referent power.

– Tannenbaum and Schmidt p.563 diagram

Autocratic versus Democratic LeadershipTannenbaun & Schmidt

Behavioural Approach (W. Jarvis Institute)

• Leaders are made, not born. Managers can learn to become leaders. http://www.youtube.com/watch?v=68wYw1rpxRs

• * The spirit of true leadership consists of the empathic relationships between a leader and his/her team members, and the constructive energies driving each of them.

• * When those constructive forces are flourishing, leaders can use reliable techniques to set goals, define tasks, estimate the colleagues' job efficiency, and clearly define the extent of authorities given to them in making decisions and taking actions.

17

Behavioural approaches• Ohio State studies see p.563, consideration for

employees versus task orientation initiating , directing

• Michigan studies: compared effective versus non effective supervisors = best to be employee centred leader setting high goals for and displaying supportive behaviour

• The leadership grid see p.564 Team management position on grid at 9.9 most effective=

• PTO all 3 in more detail

18

Behavioural approaches• Ohio State studies– Consideration• The extent to which a leader is sensitive to employees,

respects their ideas and feelings, and establishes mutual trust.

– Initiating structure• The extent to which a leader is task-oriented and

directs employee’s work activities towards goal achievement.

19

Behavioural approaches• Michigan studies– Employee-centred leaders• Effective supervisors focused on employees’ human

needs.• Build effective work groups with high performance

goals.– Job-centred leaders• Meeting schedules, keeping costs low, achieving

production efficiency.

20

Behavioural approaches Blake & Mouton– The leadership grid: - Two dimensions• Concern for production versus Concern for people

21

Contingency approaches• Fiedler’s contingency theory• Hersey and Blanchard’s situational theory• Wilfred Jarvis Four Quadrant Leadership • (see Garters, R., (1990?) Time to manage time:

A prescription for the 90’s. Christchurch: New Zealand Institute of Management (Canterbury Division) Notes on Moodle

• Later look at Substitutes for leadership

22

Contingency approaches

• Fiedler’s contingency theory– Leadership style

• Relationship-oriented or• Task-oriented

– Situation – see diagram take into account 3 things1 Leader-member relations2 Task structure3 Position power

– Contingency theory

Which leadership style is best for any of eight combinations of the three situations?

23

Contingency approaches

• Fiedler’s contingency theory

24

Contingency approaches• Hersey and Blanchard’s situational theory– A contingency approach to leadership that links

the leader’s behavioural style with the task readiness of employees.

– Characteristics of employees• Level of readiness (R1 low, R2, R3, R4 high).

What leadership style is required for each level of readiness?

25

Contingency approaches• Hersey and Blanchard’s situational theory– Leadership styles• S1 – Telling• S2 – Selling• S3 – Participating• S4 – Delegating

26

Contingency approaches• Hersey and Blanchard’s situational theory

Four Quadrant Leadership• Assess your colleagues for each particular delegation

(task) in terms of • Productive skills (abilities, knowledge skills)• Constructive energies (motivation right now) • Productive skills and Constructive Energies = Job

Efficiency (of colleague• Once you know Job Efficiency of colleague you can

lead…• http://www.youtube.com/watch?v=R_AUsJUWBAs

Four Quadrant Leadership – Wilfred Javis in Garters R (1990)Time to manage time: A prescription for the 90’s. Christchurch: New Zealand Institute of

Management

Very high

Colleagues Job Efficiency Level

Controls by Leader Very High

Very Low

Low

Four quadrant leadership: Four messages

• http://www.youtube.com/watch?v=tcrL6CWhSnM• Q1 Low job efficiency “I the leader will decide”• Q2 Med low job efficiency “Lets talk, I want to hear

your ideas, but I will decide”• Q3 Med high job efficiency “Lets talk, you have lots

of enthusiasm and knowledge we will decide together”

• Q4 Very high job efficiency. “You decide- but if you really need me I will….

Empathy• Putting yourself as leader in the position of

your colleagues, tolerance, love, understanding, truthful so believed.

• Being understanding, but will it help you delegate to others?

• http://www.youtube.com/watch?v=5dbRYttm8VE• Hand-out on Moodle from Reg Garters on Jarvis 4QL

31

Contingency approaches

• Substitutes for leadership– A situational variable that makes a leadership

style redundant or unnecessary. • e.g. High level of professional knowledge

substitutes for initiating structure leadership.

• Neutralisers – A situational variable that counteracts a

leadership style.• e.g. No position power, or physically removed from

employees.

32

Leading change• Transactional leaders– Clarifies employees’ role and task requirements,

initiates structure, provides rewards and displays consideration.

• Charismatic leaders– Ability to motivate employees to transcend their

expected performance.• Transformational leaders– Distinguished by a special ability to bring about

innovation and change.

33

Leading change• Interpersonal influence tactics– Use rational persuasion- Facts, STATS, – Make people like you- Consideration, respect– Rely on the rule of reciprocity – return favours– Develop allies– Ask for what you want– Make use of higher authority, but be credible,

trustworthy…– Reward behaviors that you want

34

Contemporary leaders, e.g. p. 577• Great leaders are able to– Set vision and strategy– Communicate/inspire– Have integrity– Be tough and performance orientated– Be humble– Be empathic– Be knowledge focused– Use energy and passion– Be smart (IQ)– Be agile/flexible– Be customer focused

35

Contemporary leaders

• Australasian businesswomen as leaders– Under-represented in leadership roles.– Growing in number, driving culture change in

organizations.

• Leaders in small Australasian businesses– Need to do a wide range of tasks themselves.– Younger, entrepreneurial leaders can start and

grow organizations even in mature markets.

36

Modern leadership as service• Servant leadership– Leaders transcend self interest to serve others and

the organisation.– Servant leaders give things away – power, ideas,

information, recognition, credit for accomplishments, and even money.

– can bring their followers’ higher motives to the work and connect their hearts to the organizational mission and goals.

Modern leadership as service• Level 5 leadership– Level 1: Highly capable individual– Level 2: Contributing team member– Level 3: Competent manager– Level 4: The effective leader– Level 5: The level 5 executive• Builds an enduring, great organisation through a

combination of personal humility and professional resolve.

38

Modern leadership as service

• Interactive leadership– The focus on minimising personal ambition and

developing others.• E-leadership– Virtual teams, no face-to-face meetings.

Modern leadership as service• Moral leadership– Distinguishing right from wrong and choosing to

do right in the practice of leadership– Requires courage

• Followership– Critical thinking Vs uncritical thinking– Active Vs passive– The alienated follower, conformist, pragmatic

survivor, passive follower or effective follower

Leadership of sustainable development

• The intent to pursue a sustainability strategy needs to be authorised from the top of the organisation.– Leaders can then use the tools of management,

meaning goals, measures, objectives and plans to lead and influence staff and external stakeholders to move up the ‘sustainability maturity’ curve.

– Sustainability growing BUT measures weak. Chief Financial Officers increasingly getting involved but will measures of sustainability improve?

(Ernst & Young Inc. with GreenBiz Group 2011, p. 12)

Discussion Questions• Do you think leadership style is fixed or flexible…• Suggest some personal behaviours that you

believe would be useful to a business leader• Suggest the sources of power that would be

available to a leader of USU?• What type of leader would you prefer to work

for?• Summary 4QL http://www.youtube.com/watch?v=eU9E61OaOOo

Leadership • Your examples of contemporary leaders see

Assignment 3.2.2

• Personal and Professional development series• 20 May Essential Networking Skills• 27 May Networking with Industry

Concentric Recruiting www.concentrix.com

• Check your progress on assignments, study work life balance, Do you have time to work

• Effect on grades?• Excellent English, strong customer service

skills, training provided Air NZ and Apple Computers…

• Apply to https://careers.concentrix.com/jobs/• Enquiries email hana.terry@concentrix.com

What’s next Week• Motivation – Chapter 16 Prepare case study p. 596

Managing Motivation at Degussa Peroxide Ltd• Summarise News Stories over study break • NZ Elections / NZ Fishing rules- What motivates you to act

as a good citizen?• But what motivates others?• For Stephen Tindall of the Warehouse it is Wilf Jarvis: • http://www.youtube.com/watch?v=2j9BUpIQXfI

• Further accolades HRH Prince Philip…• http://www.youtube.com/watch?v=sgNvfD4E8RE

Assignment 2 Leadership• Read assignment case studies 3.1. and 3.2• Check texts for theoretical answers• Develop your assignment answers• Chapter 15 revision• Make your own glossary 20 important words• Go back and review before attempting Q1 and Q2

of assignment• Bring draft answers Q1 2 3 to week 10 session, in

four weeks time.