Leadership and Change Management Chap 1
Leadership and Change Management Chap 1
Introduction
People are the most important source in an organization. To achieve organizational objectives HR should
be directed towards the accomplishment of goals. Hence, the successful achievement of organizational
objectives is greatly the manifestation of the managers’ ability to lead employees. Effective leadership
and good governance determines the development of organizations and nations at large. Now, a good
leader or governor will not disappoint his followers, he must have the interest of his people at heart, he
must be passionate, feel the pains of the poor, hear the cry of the helpless and come for help, create job
opportunities for jobless people. A good leader must be able to render selfless service and desist from
selfishness, he must make provision for training and empowering his people and encourage self-
employment, he must be serious with issues that concerns the youths as they are the future leaders and
should not look down on the adults.
By the way, what is leadership? What is the difference between leadership and management? What are
the characteristics of good leaders? What are the contributions of effective leaders for good governance?
Dear students! In this chapter, you will get all the answers for the above questions. This chapter deals
with the meaning the nature, definition, the difference between leadership and management,
characteristics of good leaders and contribution of effective leaders for good governance.
There are almost as many definitions of leadership. Dictionaries define leading as "guiding and directing
on a course" and as "serving as a channel." A leader is someone with commanding authority or influence.
For the longest time, leadership was viewed as the domain of battle and sport fields. Researchers, for their
part, have developed many working definitions of leadership. Although these definitions share much in
common, they each consider different aspects of leadership. Some define leadership as an integral part of
the group process. Others define it primarily as an influence process. Still others see leadership as the
initiation of structure and the instrument of goal achievement. Several even consider leaders to be
servants of their followers. Leadership is a process by which a person influences others to accomplish an
objective and directs the organization in a way that makes it more cohesive and coherent.
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Leaders carry out this process by applying their leadership attributes, such as beliefs, values, ethics,
character, knowledge, and skills. Therefore, Leadership can be observed, studied, dissected, and learned
from so many sources, angles, and analogies.
Keeping the above definitions, there are other complementary definitions for leadership which are
forwarded by different scholars and researchers as they depicted here under:
“Leadership is the art or process of influencing people so that they will strive willingly and
enthusiastically toward the achievement of organizational or group goals.” (Hemphill & Coons,
1957, pg. 7)
Leadership is “the influential increment over and above mechanical compliance with the routine
directives of the organization.” (Katz & Kahn, 1978, pg. 528)
“Leadership is realized in the process whereby one or more individuals succeed in attempting to
frame and define the reality of others.” (Smircich & Morgan, 1982, pg. 258)
Leadership is “the process of influencing the activities of an organized group toward goal
achievement.” (Rauch & Behling, 1984, pg. 46)
“Leadership is about articulating visions, embodying values, and creating the environment within
which things can be accomplished.” (Richards & Engle, 1986, pg. 206)
“Leadership is a process of giving purpose (meaningful direction) to collective effort, and causing
willing effort to be expended to achieve purpose.” (Jacobs & Jaques, 1990, pg. 281)
“Leadership is the ability to step outside the culture . . . to start evolutionary change processes that are
more adaptive.” (Schein, 1992, pg. 2)
“Leadership is the process of making sense of what people are doing together so that people will
understand and be committed.” (Drath & Palus, 1994, p. 4)
Leadership is “the ability of an individual to influence, motivate, and enable others to contribute
toward the effectiveness and success of the organization. . . .” (House et al., 1999, pg. 184)
These definitions suggest several components central to the phenomenon of leadership. Some of them are
as follows: (a) Leadership is a process, (b) leadership involves influencing others, (c) leadership happens
within the context of a group, (d) leadership involves goal attainment, and these goals are shared by
leaders and their followers.
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Defining leadership as a process means that leadership is a transactional event that happens
between leaders and their followers i.e. leaders affect and are affected by their followers either
positively or negatively. It stresses that leadership is a two-way, interactive event between leaders
and followers rather than a linear, one-way event in which the leader only affects the followers.
Defining leadership as a process makes it available to everyone not just a select few who are born
with it. More important, it means that leadership is not restricted to just the one person in a group
who has formal position power (i.e., the formally appointed leader).
Leadership is about influence-the ability to influence your subordinates, your peers, and your
bosses in a work or organizational context. Without influence, it is impossible to be a leader. Of
course, having influence means that there is a greater need on the part of leaders to exercise their
influence ethically.
Leadership operates in groups.
groups. This means that leadership is about influencing a group of people
who are engaged in a common goal or purpose.
Leadership includes the achievement of goals.
goals. Therefore, leadership is about directing a group
of people toward the accomplishment of a task or the reaching of an endpoint through various
ethically based means. Leaders direct their energies and the energies of their followers to the
achievement of something together—for example, hockey coaches working with their players to
win a championship, to win their conference, to have a winning (better than 0.500) season, or to
have a better won-lost percentage than last season. Thus, leadership occurs, as well as affects, in
contexts where people are moving in the direction of a goal.
Leaders and followers share objectives.
objectives. Leadership means that leaders work with their followers
to achieve objectives that they all share. Establishing shared objectives that leaders and followers
can coalesce around is difficult but worth the effort. Leaders who are willing to expend time and
effort in determining appropriate goals will find these goals achieved more effectively and easily
if followers and leaders work together. Leader imposed goals are generally harder and less
effectively achieved than goals developed together.
Leadership is similar to, and different from, management. They both involve influencing people. They
both require working with people. Both are concerned with the achievement of common goals. However,
leadership and management are different on more dimensions than they are similar. Because leadership is
used to describe both a process and a position, it is useful to remember that the distinction is between
leadership and management. While some may excel at one more than the other, most persons in positions
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of responsibility within an organization, whether described as ‘leaders’ or ‘managers’, exercise both
leadership and management in their roles.
For a quick review, the definition of leadership is a process whereby an individual influences a group of
individuals to achieve a common goal. Breaking this down even more, while there are a variety of
leadership definitions out there, there are specific components that are central to the majority of these
definitions. Leadership:
Is a process
Involves influence
Occurs in a group context (you need to have at least one constituent) AND
Involves goal attainment.
For most, the definition of management is seen quite differently. This doesn’t mean that an individual
can’t hold both management and leadership responsibilities simultaneously, but management is
considered a term separate from leadership. The definition of management is to exercise executive,
administrative, and supervisory direction of a group or organization. Leadership and management share
many similarities. Both leadership and management involve influence, working with people, and working
with effective goal management. However, the fields of leadership and management can also be
considered very different.
According to John Kotter, leadership can be considered an age-old concept that has been around for
centuries, while management is a concept developed in the last 100 years, in part from the rise of the
industrial revolution. Many other scholars share Kotter’s viewpoint in differentiating between man-
agement and leadership:
Management means setting objectives and focusing on consistently producing key results through
planning and budgeting, organizing and staffing, and controlling and problem-solving. Leadership
focuses on potential - creating and supporting change to vitalize the organization by establishing
direction, aligning people, and motivating as well as inspiring.
It is important for organizations to realize the distinction and balance between leadership and
management because today’s and tomorrow’s marketplace will demand firms to both thrive on challenges
and deliver consistent results, to address both the magnitude of change and the complexity of the
environment.
The net result of the many forces increasing the change and complexity in the business environment is
that doing what was done yesterday, or doing it 5% better, is no longer a formula for success.
Organizational success today requires skills and strategies that most people did not need in the relatively
benign 1950s, 60s, and 70s. Firms do not appear to have the requisite leadership development practices
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mostly because until recently organizations did not need that many people to handle their leadership
challenges. More change always demands more leadership, balanced with effective management.
Leadership Management
Leaders are inspirational & Charismatic Managers are productive and Effective
Synthesis, put together all the Analyzes the issues by breaking them into smaller
problems and then solve each of them (top-down
issues and solve them holistically
(bottom-up approach) approach)
How often have you heard the comment, “He or she is a born leader?” There are certain characteristics
found in some people that seem to naturally put them in a position where they’re looked up to as a leader.
Whether, in fact, a person is born a leader or develops skills and abilities to become a leader is open for
debate. There are some clear characteristics that are found in good leaders. These qualities can be
developed or may be naturally part of their personality. Let us explore them further.
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1.3.1 Seven Personal Qualities Found In A Good Leader
1. A good leader has an exemplary character. It is of utmost importance that a leader is trustworthy to
lead others. A leader needs to be trusted and be known to live their life with honestly and integrity. A
good leader “walks the talk” and in doing so earns the right to have responsibility for others. True
authority is born from respect for the good character and trustworthiness of the person who leads.
2. A good leader is enthusiastic about their work or cause and also about their role as leader. People
will respond more openly to a person of passion and dedication. Leaders need to be able to be a
source of inspiration, and be a motivator towards the required action or cause. Although the
responsibilities and roles of a leader may be different, the leader needs to be seen to be part of the
team working towards the goal. This kind of leader will not be afraid to roll up their sleeves and get
dirty.
3. A good leader is confident. In order to lead and set direction a leader needs to appear confident as a
person and in the leadership role. Such a person inspires confidence in others and draws out the trust
and best efforts of the team to complete the task well. A leader who conveys confidence towards the
proposed objective inspires the best effort from team members.
4. A leader also needs to function in an orderly and purposeful manner in situations of uncertainty.
People look to the leader during times of uncertainty and unfamiliarity and find re-assurance and
security when the leader portrays confidence and a positive demeanor.
5. Good leaders are tolerant of ambiguity and remain calm, composed and steadfast to the main
purpose. Storms, emotions, and crises come and go and a good leader takes these as part of the
journey and keeps a cool head.
6. A good leader as well as keeping the main goal in focus is able to think analytically. Not only does a
good leader view a situation as a whole, but is able to break it down into sub parts for closer
inspection. Not only is the goal in view but a good leader can break it down into manageable steps
and make progress towards it.
7. A good leader is committed to excellence. Second best does not lead to success. The good leader not
only maintains high standards, but also is proactive in raising the bar in order to achieve excellence in
all areas.
These seven personal characteristics are foundational to good leadership. Some
characteristics may be more naturally present in the personality of a leader.
However, each of these characteristics can also be developed and strengthened. A
good leader whether they naturally possess these qualities or not, will be diligent
to consistently develop and strengthen them in their leadership role.
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1.4 Factors of Leadership
Follower:
Leader:
You must have an honest understanding of who you are, what you
know, and what you can do. Also, note that it is the followers, not the
leader who determines if a leader is successful. If they do not trust or
lack confidence in their leader, then they will be uninspired. To be
successful you have to convince your followers, not yourself or your
superiors, that you are worthy of being followed.
Communication:
You lead through two-way communication. Much of it is nonverbal. For
instance, when you "set the example," that communicates to your people
that you would not ask them to perform anything that you would not be
willing to do. What and how you communicate either builds or harms the
relationship between you and your employees.
Situation:
All are different. What you do in one situation will not always work in another. You
must use your judgment to decide the best course of action and the leadership style
needed for each situation. For example, you may need to confront an employee for
inappropriate behavior, but if the confrontation is too late or too early, too harsh or
too weak, then the results may prove ineffective.
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1.5 Power as a Source of Leadership Influence
Why do people accept the influence of a leader? One major reason is that leaders have power. Power is
the capacity to affect the behavior of others, in other words, power is the ability of individuals or groups
to induce or influence the beliefs or actions of other persons or groups. It is a resource or patronage an
individual has at his/her disposal to stage-manage others towards a wanted behavior. Your capacity to
influence others is dependent on the power you have. Having power can increase the effectiveness of a
manager by enabling the manager to influence people to what is wanted. Leaders in organizations
typically rely on some or all of five major types of power: legitimate, reward, coercive, expert and
referent (French & Raven, 1959).
1) Legitimate Authority
It refers to the power a leader possesses as a result of occupying a particular position or role in the
organization. It is a power that stems from a position's placement in the managerial hierarchy. It
corresponds to authority. Legitimate power exists when a subordinate or influence acknowledges that the
influencer has a "right" or is lawfully entitled to influence - within certain bounds. It is related to the
position not to the person, so it is clearly a function of the leader's position in the organization and is
completely independent of any of the leader's personal characteristics. Thus, the higher a manager is in
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the organizational hierarchy, the greater is the "perceived power" thought by subordinates to exist.
2) Reward Power
This refers to the leader's capacity to give or with hold rewards for followers. It is based on the capacity to
control and provide valued rewards to others. Rewards that may be under the control of individual
manager include salary increases /pay raises, browses, interesting projects, promotion recommendations,
a better office, support for training programs, assignments with high risibility in the organization,
recognition, positive feedback etc. There are a manager’s controls over valued rewards, the greater the
manager's reward powers in the more power to influence. For example, purchasing agents, with little
position power; might be able to exercise considerable influence by their ability to expedite or delay a
much-needed spare part. Or University Lecturers have considerable reward power; they can grant or
withhold high grades.
3) Coercive Power
It is a power based on fear. It is the negative side of reward power. Coercive power is the ability to coerce
or punish the followers when they do not engage in desired behaviors. Forms of coercion or punishment
include criticisms, terminations, reprimands, suspensions, warning letters that go into an individual's
personnel file, negative performance appraisals, demotions and with held pay rises, (Punishment may
range from loss of a minor privilege to loss of one's job).
The use of coercive power – that is negative consequences following undesirable or unacceptable
behavior has been shown to be effective in reducing the instances of such behavior. It has a place in
manager’s repertoire, yet it should be used with care and judgment as it has also been shown to have a
significant negative impact on subsequent relationships.
4) Expert Power
It refers to a power that a leader possesses as a result of his or her knowledge and expertise regarding the
tasks to be performed by subordinates. It is power based on the possession of expertise, knowledge, skill
or information. To the extent that a leader possesses expertise and information that is needed or desired
by others, the leader has expert power. Physicians, lawyers, and university professors may have
considerable influence on others because they are respected for their special knowledge.
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As leaders move to higher levels of leadership they find themselves leading people whose functional
expertise is different and superior to theirs. Expertise will not be sufficient on its own, however leaders
can continue build their expertise power base by:
Keeping up to date with and sharing information on strategic initiatives.
5) Referent Power
It is one source of Power that results from being admired, personally identified with or liked by there. It is
your ability to influence others' behavior simply because of the relationship they have with you. The
strength of referent power is directly related to such factors as the amount of prestige and admiration the
influence confers up on the influencer. The more that a leader is able to cultivate the liking, identification
and admiration of others, the greater the referent power is.
The concept of "governance" is not new. It is as old as human civilization. Simply put "governance"
means: the process of decision-making and the process by which decisions are implemented (or not
implemented). Governance can be used in several contexts such as corporate governance, international
governance, national governance and local governance.
Since governance is the process of decision-making and the process by which decisions are implemented,
an analysis of governance focuses on the formal and informal actors involved in decision-making and
implementing the decisions made and the formal and informal structures that have been set in place to
arrive at and implement the decision
Government is one of the actors in governance. Other actors involved in governance vary depending on
the level of government that is under discussion. In rural areas, for example, other actors may include
influential land lords, associations of peasant farmers, cooperatives, NGOs, research institutes, religious
leaders, finance institutions political parties, the military etc. At the national level, in addition to the
above actors, media, lobbyists, international donors, multi-national corporations, etc. may play a role in
decision-making or in influencing the decision-making process.
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All actors other than government and the military are grouped together as part of the "civil society." In
some countries in addition to the civil society, organized crime syndicates also influence decision-
making, particularly in urban areas and at the national level.
A key element in good governance is the quality of leadership as measured by the degree of commitment,
vision, transparency, efficiency and accountability in discharging the responsibilities of an organization.
Effective leadership contributes to effective governance by encouraging cooperation. Good governance
needs leadership. Leadership is about having a clear sense of the right direction for an organization and
being able to guide others towards it. Therefore, Leadership is not about power or control.
Good leaders are enablers and consensus builders who serve the interests of others, whether it’s the
members of a business or the citizens of a country. Leaders need to earn confidence and trust if they are to
win support for the direction they want to set. We call this leadership by consent. In this manner,
leadership and good governance are inseparable in all respects of human life.
Effective leadership and good governance determines the development of organizations and nations at
large. Now, a good leader or governor will not disappoint his followers, he must have the interest of his
people at heart, he must be passionate, feel the pains of the poor, hear the cry of the helpless and come for
help, create job opportunities for jobless people. A good leader must be able to render selfless service and
desist from selfishness, he must make provision for training and empowering his people and encourage
self-employment, he must be serious with issues that concerns the youths as they are the future leaders
and should not look down on the adults.
At all costs, good governance and leadership promotes education, agriculture, ensure stability of power,
construct good roads for safe and easy transportation and make the cost of transportation affordable
especially for people in rural areas, provide good water, good security system, and make the cost of living
affordable for the masses. Ensure peace, unity and maintain transparency. In business organizations also,
good leadership plays a pivotal role in that it makes sustainable and socially responsible business.
SUMMARY
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1. A good leader has an exemplary character.
2. A good leader is enthusiastic about their work or cause and also about their role as leader.
3. A good leader is confident.
4. A leader also needs to function in an orderly and purposeful manner in situations of
uncertainty.
5. Good leaders are tolerant of ambiguity and remain calm, composed and steadfast to the main
purpose.
6. A good leader as well as keeping the main goal in focus is able to think analytically.
7. A good leader is committed to excellence. Second best does not lead to success.
The factors of leadership are follower, power, source and leader.
There are five potential sources of power:
1. Legitimate Authority
2. Reward Power
3. Coercive Power
4. Expertise power
5. Referent Power
A key element in good governance is the quality of leadership as measured by the degree of
commitment, vision, transparency, efficiency and accountability in discharging the
responsibilities of an organization.
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