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10_Leadership

The document discusses the principles of leadership, highlighting the distinction between leadership and management, and the importance of both in business operations. It outlines various leadership styles, traits of effective leaders, and situational theories of leadership, emphasizing the need for adaptability based on follower maturity and circumstances. Additionally, it contrasts transformational and transactional leadership theories, providing examples of successful leaders and encouraging reflection on the nature of leadership traits.

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18-QADEER AHMAD
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7 views24 pages

10_Leadership

The document discusses the principles of leadership, highlighting the distinction between leadership and management, and the importance of both in business operations. It outlines various leadership styles, traits of effective leaders, and situational theories of leadership, emphasizing the need for adaptability based on follower maturity and circumstances. Additionally, it contrasts transformational and transactional leadership theories, providing examples of successful leaders and encouraging reflection on the nature of leadership traits.

Uploaded by

18-QADEER AHMAD
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Principles of Management

Module 10: Leadership


Leadership
What Is Leadership?

• Leadership is about establishing a direction and influencing others to follow


• Management is successfully administering the many complex details
involved in business’s operation
• Both are necessary skills that often overlap
• Some differences include:
• Leadership: influencing, change, direction, vision, creating, etc.
• Management: planning, organizing, controlling, stability, etc.
Formal vs. Informal Leadership

• Not all leadership based on official position


• Individuals who are assigned titles and positions of authority are expected to
provide leadership- formal leadership
• Plenty of people who have formal leadership positions but don’t provide strong
leadership (can leave organization lacking direction/purpose)
• Individuals who don’t have official positions of leadership but exhibit
leadership qualities and help create vision of company- informal
What Makes an Effective Leader
Leadership Traits

• Drive: highly motivated individuals


• Desire to Lead: want to have leadership roles and functions
• Honesty/Integrity: essential to inspiring confidence and trust from followers
• Self Esteem/Self-Confidence: lack of these creates doubts and insecurities
• Open-Mindedness: recognize innovation is valuable and are open to other
ideas
• Intelligence: cognitive ability as well as relational and emotional intelligence
• Extraversion: outgoing and social in personalities
• Not all good leaders have to be extraverts (Bill Gates, Mark Zuckerberg)
Knowledge of the Business and Styles of
Leadership
• Lack of knowledge and experience
is almost impossible to overcome
• Trait-based analysis of leaders is
common approach and analyzing
leadership styles
• Task-Centered or Employee-
Centered
• Task: focus on giving instructions to
group members to reach
achievement
• Employee: focus less on objective
actions and more on building
relationships between followers
Autocratic, Democratic, or Laissez-faire

• Autocratic: makes decisions without employee involvement- authoritarian


• Democratic: involves employee team in decision-making
• Laissez-faire: hands-off approach to leadership- employees make own
decisions

“A good leader inspires people to have confidence in the leader. A great


leader inspires people to have confidence in themselves.”
—Eleanor Roosevelt
Practice Question 2

Which style of leadership lends itself best with a task-centered style?

1. Autocratic.
2. Democratic.
3. Laissez-faire.
Effective vs. Poor Leadership
Understanding Effective vs. Poor Leadership

• Compare examples of effective


and poor leadership
• What do these traits and styles look
like in practice?
• Will be looking at real-world
examples of good and bad
leadership to help deepen
understanding
• Looking at individuals with positive
and negative leadership qualities in
next slides
Warren Buffett, Berkshire Hathaway

• One of the wealthiest men in the


world through leadership of
investment company
• Thousands travel to hear his
meetings and has become very
successful
• Work is to identify companies for
purchase he believes are well-
managed for success
• Presents a vision, stands firmly
behind it, and inspires others
• Always truthful and an optimist
Rosalind Brewer, Starbucks

• Current COO at Starbucks, the first woman


and the first African-American in this role
• Former CEO of Sam’s Club
• Forward-thinking initiatives at Sam's Clubs,
doubling the amount of organic products
offered and advancing online ordering
• Emphasis on diversity of hiring and
implementation of racial bias training
• Navigated Starbucks through negative public
opinion after racially charged arrests at one of
their locations
Ginni Rometty, IBM

• IBM is successful tech company for over 100


years
• Much of its legacy is in field of computer
hardware systems
• Overseen significant shift of focus for company
• Democratic, soft-spoken leadership style
enabled her to be successful
Situational Theories of Leadership
Understanding Situational Theories of Leadership

• Work on the assumption that the most effective style of leadership changes
from situation to situation
• Leader must be able to adapt his style and approach to different
circumstances
• Example: some employees function better under leader who is more
autocratic while others prefer leader to step back and give others chance
• Not all industries require same skills and leadership traits- many theories
developed
Hersey and Blanchard’s
Situational Leadership Theory
• Suggests need to match two key
elements correctly: leadership style of the
leader and maturity/preparedness of the
followers
• Main leadership approaches- telling,
selling, participating, delegating
• Four levels of follower maturity- low
competence and commitment (M1), low
competence and high commitment
(M2), high competence and low
commitment (M3), and high
competence and commitment (M4)
• Key to successful leadership is matching
proper leadership style to maturity level
Goleman’s Model of Situational Leadership

• Theory incorporates development of the concept of


“emotional intelligence”
• Pacesetting: sets aggressive goals and standards for each
employee
• Authoritative: provides direction and goals and expects
team to follow lead
• Affiliative: praises and encourages employees refraining
from criticism
• Coaching: focuses on helping individuals build skills and
develop talents
• Democratic: involves followers in process by seeking their
opinion
• Coercive: ultimate authority and demands immediate
compliance
Normative Decision Theory

• Guide in determining optimum amount of time and group input that should
be committed to a decision
• Number of options for leader
• Key Questions: is decision quality important? Does the leader have enough
information to make a decision? Is the problem structured and easily
analyzed? Do members have high levels of competence in working as a
group?
Practice Question 3

What do all of the leadership theories we have just reviewed have in common?

1. They reflect the democratic style of leadership.


2. They require industry knowledge.
3. They match leadership style with the environment.
4. They incorporate the concept of emotional intelligence.
Transformational and Transactional Theories
of Leadership
Transformational and Transactional
Theories of Leadership

Transactional Leadership Transformational Leadership


• Motivation is derived from an • Assume that the desires of the leader
arrangement whereby employees are and the follower are not the same-
rewarded for accomplishing goals set must provide motivation
for them • Four categories:
• When sales representatives are paid • idealized influence
on commission or given bonuses • inspirational motivation
• intellectual stimulation
• individualized consideration
Class Discussion: What makes a leader?

Are leaders born and not made? Review the list of leadership traits and discuss
which of them you think can be learned versus those that are inherent in one’s
personality make-up. What about management traits/duties? Are these
learned versus inherent?
Quick Review

• How does one differentiate between leadership and management?


• Can you identify the traits of effective leaders?
• Are you able to differentiate between task-centered and employee-
centered leadership and behavior? Between autocratic, democratic, laissez-
faire, relationship-oriented, task-oriented, and people-oriented styles of
leadership?
• Are you able to compare examples of effective and poor leadership?
• Please summarize the situational theories of leadership.
• Can you summarize transformational and transactional leadership theories?

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