Institute of Business Management

(IoBM)

Principles of Management

Fall 2023
Section Code: M1 - 18046

Session 13
“Leadership”
October 23, 2022
What Do The Talented Employees Need
From The Workplace?

Great Leaders
As we look ahead into next century, leaders
will be those who empower others.
(Bill Gates)
 Leadership

Message
Leading starts with knowing
& understanding where and
why we are going.
 Leadership

The word leader evokes images of great men and

women who, in moment of crises, rise up to make
great difference in the course of human events.
 Leadership

Leading, simple defined,

is the ability to influence others to move towards the
accomplishment of common goals.
 Leadership

So where to start?

Start with the Purpose?

What is the Vision?
Where trying to Go?
What trying to Accomplish?
 Leadership

Good Leaders know what they are trying to accomplish.

Not only they know where they are going but why they are
going there?
If we cannot answer these questions ----- where are we
going and why --- we will spend lot of time rushing to and
fro but getting no where.
 Leadership

Leadership Impact on an organization

Leadership has a direct cause and effect relationship upon
organization and their success. Leaders determines values,
culture, change tolerance and employee motivation. They shape
institutional strategies including their execution and effectiveness.

Leaders can reinforce organizational values by helping their

people grow and develop through goal setting, opportunities and
recognition.

-
 Leadership

Bossless Does not Mean Leaderless

- Lead by example
- Communicate purpose & meaning
- Create a climate trust
- Look for results not salutes
- Take Calculated risks
- Generate unity
 Leadership
Contemporary / Modern Leadership - The concept of leadership
evolves as the need of organization change. This is, the environmental change
context in which leadership practiced influences which approach might be
most effective, as well as what kind of leaders are most admired by society.
The technology, economic conditions, labour conditions and social and cultural
customs of the time all play a role.
A significant influence on leadership style in recent years is the turbulence and
uncertainty of the environment. Ethical and economic difficulties, corporate
governance concerns, globalization, changes in technology, new ways of
working, shifting employee expectations, and significant social transitions
have contributed to a shift in how we think about and practice leadership.
• Four approaches that are tune with leadership for today’s active leadership,
which are Level 5 leadership, servant leadership, authentic leadership and
interactive leadership, which has been associated with women style of
leading.
 Leadership
1: Level 5 Leadership (Jim Collins)
Level 5 Hierarchy:
Level 1: Highly Capable Individual – “Makes productive contribution
Through talent, skills and good work habits”.
Level 2: Contributing Team Members – “Contributes to the achievement
of the group objectives”.
Level 3: Competent Manager – “Organizes people and resources towards
Effectiveness and efficient pursuit of objectives”.
Level 4: Effective Leader – “Catalyses commitment to clear and compelling
vision, stimulating higher performance”.
Level 5: Executive – “Builds enduring greatness through personal humility and
professional will”.
 Leadership

2: Servant Leadership

A servant leader transcend self-interest to serve others, the

organization, and society.
In organizations, servant leaders operates on two levels: for fulfilment
of their subordinations goals and needs and for the realization of the
larger purpose or mission of their organization.
They give things away – power, ideas, information, recognition, credit
for accomplishments, even money. Servant leaders often work in non-
profit world because it offers a natural way to apply their leadership
drive and skills to serve others.
 Leadership
3: Authentic Leadership
This concept in leadership today is the idea of authentic leadership,
which refers to individuals who know and understand themselves, who
adopts and acts consistent with higher-orders ethical values, and who
empower and inspire others with their openness and authenticity.
To be authentic means being real, staying true to one’s values and
beliefs, and acting base on one’s true self rather than coping what
others do. They inspire trust and commitment because they respect
diverse viewpoint, encourage collaboration & help others to learn,
grow and develop as leaders.
Key Characteristics of authentic leaders;
• They pursue their purpose with passion.
• They practice solid values.
• They lead with their hearts as well as their heads.
• They establish connected relationships.
• The demonstrate self-discipline – high degree of self-control.
 Leadership

4: Interactive Leadership
Style of leadership that engages empolyees in understanding tasks
and goals so they can be contributors to achieving them.

• Effective leadership requires communicating and engaging with

followers. The interactive style of leadership makes it priority to
inform followers about important matters related to their goals and
tasks & clarify understanding.
• Interactive leaders value individual contributions and maintain
relationships that foster mutual respect.
• They also make themselves visible & accessible to followers;
maintain open-door policy.
 Leadership
Management versus Leadership Skills

Manager Qualities Leader Qualitues

Focus on Organization Focus on People

Planning and Budgeting Setting Direction / visionary
Organizing and Staffing Aligning people to the
Vision
Controlling and Problem Solving Motivating and Inspiring
Doing Routine Jobs Challenging Status Quo
Involve in Micro Management Concentrate on Big Picture
Maintains Stability Innovates
Position Power Personal Power
 Leadership
Leadership Styles
1. Leader-Member Exchange (LMX) Theory – Leaders create in-groups and
out-groups and those in groups have higher performance ratings, less turnover
and greater job satisfaction. For LMX relationship to remain intact, both the
leader and the follower must “invest” in relationship.
2. Transactional Leaders - who lead primarily by using social exchanges (or
transactions). They guide or motivate followers to work towards established
goals by exchanging rewards for their productivity.
3. Transformational Leaders - Stimulates and inspire (transformations)
followers to achieve extraordinary outcomes. They pay attention to the
concerns and developmental needs of the individual followers; they change
followers awareness of issues by helping those followers look at old problems
in new ways; and they are able to excite, arouse, and inspire followers to exert
extra to achieve group goals.
 Leadership
4. Charismatic-Visionary Leadership
Charismatic-Visionary Leader – An enthusiastic, self-confident leader
whose personality and actions influence people to behave in certain way.
What makes charismatic Leader?
• Has a clear, fresh, new and creative vision.
• Is completely devoted to his / her vision.
• Have ability to articulate a realistic, credible, and attractive vision.
• Makes great sacrifices to achieve the vision, taking personal risks—
financial, professional, social.
• Creates a sense of urgency among the followers.
• Gains the absolute trust of the followers.
• Uses persuasion rather than forced commands or democratic appeals
for consensus to influence the followers.
• Has behaviours that are out of ordinary.
 Leadership
5. Team Leader Role
• Assess strengths and development priorities
relative to leading a business.
• Design business unit strategy, structure, systems and
skills to deliver results.
• Cultivate executive presence and ability to communicate
and inspire.
• Be ready to lead change and organizational transformation
effectively.
• Act as a mentor – supporter, counsellor
• Celebrate different views
• Lead with Emotional Intelligence & empathy –
understanding, compassion.
• Be Creativity - Innovative
 Leadership
6. Pragmatic Leadership – from ideal to the real
They focus on the organization rather than people & tasks.
They are effective because;
• Have a vision that is recognizable as a variation of the status quo.
• Listen carefully to his / her people.
• Strong communicator.
• Strong believer of team management.
• Make realistic decisions for the betterment of the organization.
• Manage by numbers.
• Put the right person in the right position to get the job done.
• Delegate responsibilities to the trained people they trust.
 Leadership
7. Bureaucratic Leadership
They create and rely on policy to meet organization goals. Policies
drive execution, strategy, objectives and outcomes.
Bureaucratic leaders are most comfortable relying on stated policies
in-order to convince followers to get on board. In doing so they send a
very direct message that policy dictates direction.
Bureaucratic leaders are usually strongly committed to procedures
and processes instead of people. They danger here is that leadership
greatest benefits, motivating and developing people, are ignored by
bureaucratic leaders.
 Leadership
8. Democratic Leadership
They are frustrated by the enormous efforts to build consensus for even
most ordinary decision as well as the glacial pace required to lead a group
permission. The potential for poor decision-making and weak execution is
significant here. The biggest problem with democratic leadership is its
underlying assumptions that everyone has an equal stake in an outcome as
well as shared level of expertise with regard to decisions.

9. Situational Leadership
The situational leadership theory suggest that the best leaders constantly
adapt by adopting different styles for different situations or outcome. Most
importantly, it allows experienced leaders the freedom to choose from
variety of leadership repetitions.
To be continued

“Leadership”
Session 14 - Wednesday, October 25 , 2023
Thank You