ORGANIZATIONAL BEHAVIOUR

LEADERSHIP IN ORGANIZATION SETTING

What is leadership?

Leadership is the process of influencing individuals and group to achieve goals.

Leader use influence to motivate follower and arrange the work environment so they can do the job more effectively.

Role of

leader

Share organization vision with

people

Recruit, train and retains

Challenges, provoke and

stimulate intellectuall

y

Discovers talent

Builds the culture of creativity

and innovation.

Instils ownership

5 researched theories perpective of leadership

Trait theories = Leader selection

To 1930

Behavioural theories = leader training

1940 to mid 1960s

Contingency theories = leader situation matching

Mid 1960s to 1980s

Newer theories = charisma and beyond

1990s onwards

Neuroleadership = leader follower interaction

2006 onwards

TRAITS THEORIES

1920 and 1930 focused on traits of the leader.

Traits play a central role in differentiating leaders from non-leaders.

Seven traits associated with effective leadership are:

Drive

Desire to lead

Honesty and integrity

Self-confidence

Intelligence

Job relevant knowledge

extraversion

BEHAVIOURAL THEORIES Focused on the leader and how the leader interact with his/her group

members.

Researchers began to hope that behavioural theory approach would provide a more definitive information about the nature of leadership than did trait theories.

4 main behavioural leadership theories

1. Ohio state studies

2. University of Michigan studies

3. The Manageriel Grid

4. The Scandinavian Studies

Ohio State Studie

s

INITIATING STRUCTURE• Is the scope to which a leader defines and structure his/her role as well as those of his/her followers in order to accomplish goals

CONSIDERATION• Is the work relationship between the leader and his/her followers based on mutual trust, taking into account foolowers ideas and their feelings.

University of

Michigan Studies

EMPLOYEE-ORIENTED LEADER• A leader who emphasize

interpersonal relations, takes a personel interest in the needs of employees and accept individual differences among members.

PRODUCTION-ORIENTED LEADER• A leader who emphasize

technical or task aspect of the job.

THE MANAGERIAL GRID

Also known as the leadership grid

Two main dimension like CONCERN FOR PEOPLE and CONCERN FOR PRODUCTION.

Developed by Blake and Mouton, the grid is graphic depiction of two dimensional view of leadership style.

It has nine possible position along its two axis, creating 81 different leadership style.

These research found leaders perform best under 9,9 style in comparison to, say with 9,1(authority type) or 1,9 (laissez-fair type)

9 1,9

9,9

8

7

6

5 5,5

4

3

2

1 1,1 9,1

1 2 3 4 5 6 7 8 9

Improverished management

Concern for people

Country club management

Team management

Middle of the road management

Task management

Concern for production

The Scandinavian Studies

Effective leader would display development-oriented behaviour

Development-oriented leader is a leader who values experimentation, seek new ideas, and generates and implements change.

CONTINGENCY APPROACH

CONTINGENCY

THEORIES

Fiedler Model

Hersey and Blanchard’s Situational

Theory

Leader-Member

Exchange Theory

Path Goal Theory

Leader-Participation

Model

Fiedler Model

Proposing that effective group performance depends upon the proper match between a leader style of interacting with his/her follower and the degree to which the situation allowed the leader to control and influence.

Developed the least-preferred co-worker (LPC) questionnaire that is an instrument that purports to measure whether a person is task- or relationship oriented.

3 situational criteria could be manipulated to create the proper match with the behavioural orientation of the leader:

Leader-member relations describe the extent to which follower have confidence, trust and respect in their leader.

Task structure describes the extent to which job assignment are formalized and are structured/unstructured.

Position power describe the amount of influence a leader had over power based activities such as hiring, firing and promotions.

Hersey and Blanchard’s Situational Theory

Paul Hersey and Ken Blanchard developed a contingency leadership model called situational leadership theory (SLT)

Situational leadership theory focuses on follower. It echoes the reality that it is the follower who accept or reject the leader.

The style of leadership depends on the level of readiness of the follower.

The readiness(R) levels are divided into a continuum of 4 level which are:

R1

• Unable or unwilling and insecure (low ability and low willingness of follower i.e those who are unable to unsecure)

R2

• Unable but willing and confident (low ability and low willingness of follower i.e those who are unable but confident.

R3

• Able but insecure (high ablity and low willingness of follower i.e those who are able but feels unsecure)

R4

• Able, willing and confident (high abililty and high willingness of the follower i.e those who are both able and confident.

House’s Path- Goal Theory

Developed by Robert House

Based on the premise that an employee’s perception of expectancies between his effort and performance is greatly effected by a leader’s behaviour.

Does not view leadership as a position of power.

Leader act as coaches and facilitator to their subordinates

Leader behaviour • Directive • Supportive• Participative• Achiavement-

oriented

Environmental contingency factors• Task structure• Formal authority

system • Work group

Subordinate contingency factors• Locus of control• Experience• Perceived ability

Outcomes • Performance• Satisfaction

Figure: Factor influencing leadership effectiveness

CONTEMPORARY APPROACH

Leader-member

Exchange Theory

Theory ZCharismatic Leadership

Theory

Leader-member Exchange Theory

Focuses on the relationship that develop between leaders and subordinates go through three stages:

RO

LE-T

AK

ING Occurs when team

members first join the group. Leader use to asses new members skill and abilities.

RO

LE-M

AK

ING Leader generally

expect that new team members will work hard, loyal and prove trustworthy as they get used to their new role.•In-Group: made up of the team members that the leader trust the most. Leader give group most attention, providing challenging and interesting work and offering oppurtunities for additional training and advancement.

•Out-Group:If team members betray the trust of leaders or prove they are unmotivated or incompetent. Do not received opportunities for growth or advancement.

RO

UTIN

IZATIO

N Routine between team

members and their leaders are established:•In-Group : team members work hard to maintain the good opinion of their leaders by showing trust, respect, empathy, patience and persistence.

•Out-group: members may start to dislike their leaders. Because its so hard to move Out-Group once the perception has been established.

Theory Z Name applied to the “Japanes Management” style popularized during the

Asian economic boom of the 1980s.

This theory promotes stable employment, high productivity and high employee morale and satisfaction.

Charismatic leadership Theory Have a clear vision of where they want to go and how to get there and they

are fantastic at articulating that vision to other.

This theory have risk-takers who do things that others are afraid to do which engenders admiration.

A charismatic leader influence follower via a 4 step process:

a) The leader articulate an appealing vision.

b) The leader communicates high performance expectation and expresses confidence that follower can attain them.

c) The leader convey through word and action, a new set of values, and sets example for follower to imitate.

d) The leader makes self-sacrifice and engages in unconventional behaviour to demonstrate courage and conviction about the vision.

TRANSFORMATIONAL LEADERSHIP

Transformational leadership are visionary, aspiring, daring, risk-takers and thoughtful thinkers.

Transformational leadership must exhibit the following 4 factors:

TRANSFORMATIONAL LEADERSHIP

Inspiration

motivation

Intellectual stimulation

Idealized influence

Individualized

consideration

TRANSACTIONAL LEADERSHIP

Transactional leadership are motivating and directing follower primarily through appealing to their own self-interest.

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

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

The leader believes in motivating through a system of rewards and punishment.

DIFFERENCE BETWEEN TRANSACTIONAL AND

TRANFORMATIONAL LEADERSHIPTransactional 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 objective through reward and punishment

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

Motivates follower by appealing to their own self-interest.

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

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POWER AND INFLUENCE

What is Power?

Is the capacity to influence other to bring about desired outcomes.

Individual is said to have power when there are other people willing to follow the instruction or direction given to them.

Bases of Power

Has 2 bases of power, Formal Power and Personel Power.

Formal power

• Coercive power• Reward power• Legitimate

power• Information

power

Personel power

• Expert power• Refrent power• Charismatic

power

Formal power Explanation

Coercive power Type of power which result of fear.

Reward power Reward given in term of monetary or non-financial benefits such as trust and friendly relationship

Legitimate power Is an agreement among organizational members that people in certain roles can request certain behaviour of others.

Information power Is the power driven by controlling the flow of information that others need.

Personel power Explanation

Expert power Is the capacity to influence others by possessing knowledge or skills that they value.

Referent power Comes from when others identify with them, like them or otherwise respect them.

Charismatic power Is derived by an individual because of the personality and interpersonal styles.

Strategic contingencies that influence power in organization.

Dependency• Lack of freedom to

exercise judgement.

Resources• Both financial as well

as non-financial

Centrality • The numbers of

people effected and how quickly others are effected by their actions.

Non-substitutability• Lack of alternatives

Uncertainties• Lack of system and

structures for decision making.

Organizational power

What is Influence?

Refers to any behaviour that attempt to alter someone attitude or behaviour.

Power tactic: Influencing Others

Power tactic is turning power into action

Employee will engage themselves in influencing process, they will use several influencing tactic.

Researcher conclude that many different type of influence tactic and each tactic is used depending on the objective, situation that they are currently in and the target of the influencing process.

Robin (2007) summarized that they are seven tactical dimension or strategies in influencing process:

Tactical dimension Description Example

Reason Use of fact and data to make a logical or rational presentation.

Ali sees his superior and inform them about his performance and achievement as a reason for him to get a promotion

Friendliness Create a relationship by using strategies such as acting humble, being friendly and creating good will.

Ahmad invites his boss for lunch at one of the expensive hotel when he know that the boss has a final say in promoting someone as a new general manager

Coalition Getting a support from someone in the organization to back up the request.

Siti ask few of her friends to recommend her to boss to get the promotion.

Bargaining Use negotiation tactics through the exchange of benefit or favour

When Lingam heard about the promotion, he went to see his boss and highlighted the favour that he had done to the company and ask the boss to promote him as a return favour.

assertiveness Use a direct and forceful approach Simi took an appointment with the boss and formally listed out all the achievement and demanded for the promotion which department had promised to her in the beginning of the year.

Higher authority Gaining a support from higher position to backup request

Roslan went to see his general manager and asked him to put a good word to the manager to support Roslan promotion.

Sanctions Use of organization derived rewards and punishment.

Sue told her superior that if she did not get the promotion, she will with hold any information.

THE END