LEADERSHIP

AND CHANGE
MANAGMENT
CHAPTER ONE

INTRODUCTION
TO LEADERSHIP
 1. Leadership Definition

 Keith Davis, “Leadership is the ability to persuade others

to seek defined objectives enthusiastically./energy. eagerness,
excitement/
Gupta, “Leadership may be defined as a process of
influencing the action of individuals as members of a group
to achieve the desired goal in a given situation.
Robbins defines leadership as the ability to influence a
group toward the achievement of goals.
 CON,T
Hodge and Johnson: gave opinion that, “leadership is
fundamentally the ability to form and mould the attitudes and
behaviour of other individuals, whether informal or formal
situation and that management relates to the formal task of
decision and command.”
Ivancevich, Szilagyi and Wallace, define leadership “as the
relationship between two or more people in which one attempts to
influence the other toward the accomplishment of some goal or
goals.
Thus, leadership is a process of influencing other people to
mobilise and direct their efforts towards certain goals and to
accomplish these goals through them.
 CON’T

• Even researchers often disagree about which

characteristics best describe leadership but, in
general two are regarded as being the most
important.
• First, leadership involves exerting influence over
other members of a group or organization.
• Second, leadership involves helping a group or
organization achieve its goals.
 CON’T
• Combining these two key characteristics we can define leadership as the
exercise of influence by one member of a group or organization over
other members to help the group or organization achieve its goals.
• The leaders of a group or organization are the individuals who exert such
influence.
• Leadership effectiveness is the extent to which a leader actually does
help a group or organization to achieve its goals.
• An effective leader helps achieve goals: an ineffective leader does not.
Leaders influence their subordinates' or followers’:-
• levels of motivation,
• performance absenteeism and
• turnover and the quality of their decision making
 CON’T
• All leaders exert influence over members of a group or organization.
• Some leaders, however have formal authority to do so while others do not!

• Formal leaders are those managers who are given the authority to
influence other members in the organization to achieve its goals.

• With this authority comes the responsibility to make the best use of all
organization's resources, including its money and capital and the abilities
and skills of its employees. Note that not all managers are leaders some
managers do not have subordinates who report to them.
 Con’t
• For example, the accounting manager of a restaurant who is
responsible for keeping the books is a manager but not a
formal leader this person could be an informal Leader
however.
• Informal leaders have no formal job authority to influence
others but sometimes exert just as much influence in an
organization as formal leaders and sometimes even more.
The ability of informal leaders to influence others often
stems from special skills or talents they possess-skills the
organization's members realize will help it achieve its goal.
 Leadership Vs Management

• What is the difference between a manager and a leader?

• Leadership and management are two terms that are often confused.
John Kotter - the Harvard Business School argues that “managers
promote stability while leaders press for change and only organizations
that embrace both sides of the contradiction can survive in turbulent
times.”
 Professor Rabindra Kanungo at McGill University sees a growing consensus emerging “Among
management scholars that the concept of ‘leadership’ must be distinguished from the concept
of ‘supervision/management.’’ Leaders provide vision and strategy; managers implement that
vision and strategy, coordinate and staff the organization, and handle day-to-day problems.
 Con’t
• The distinction between management and leadership
is not either-or; rather, it’s a balance.
• The distinction between Management and Leadership
is not a dichotomy,/contrast/ but rather a blend or
balance.
• Both are needed in today’s knowledge-based
organizations
 Distinguishing Leadership from Management
Management Leadership
Engages in day-to-day caretaker activities: Maintains and Formulates long-term objectives for
allocates resources reforming the system: Plans strategy and
tactics
Exhibits supervisory behaviour: Acts to make others maintain Exhibits leading behaviour: Acts to
standard job behaviour bring about change in others congruent
with long-term objectives
Administers subsystems within organizations Innovates for the entire organization
Asks how and when to engage in standard practice Asks what and why to change standard
practice
Acts within established culture of the organization Creates vision and meaning for the
organization
Uses transactional influence: Induces compliance in manifest Uses transformational influence:
behaviour using rewards, sanctions, and formal authority Induces change in values and expertise
Relies on control strategies to get things done by Uses empowering strategies to make
subordinates followers internalize values
 Manager Leadership

Status quo supporter and stabilizer Status quo challenger and change creator

Success based on predictability Success based on innovation and adaptation

Plans Energy

Defines vision and purpose statements Lives vision and purpose

Does things right(efficiency and accuracy) Does the right things (Focuses on effectiveness and
priorities.)

Top-down strategy Leadership at all levels; everyone strategic

Measurement of activities Measurement of results

“Head stuff” (e.g., behaviour, compliance) brain and logical thinking, “Heart stuff” (e.g., morale, commitment) emotions and
intuition.
Sources of Leaders Power/Influence in Organizations.
• Power as the ability of one person to cause another person
to do something they otherwise might not do.
• Formal individual power is the power that originates from
a person’s position in an organization.
• Authority is the formal power a person holds because of
their position in the organizational hierarchy.
• According to this definition, upper level supervisors would
have authority over lower level supervisors in their
organizational structure.
 Con’t
• Power that is derived from one’s position in an organization is also
accompanied by an obligation; namely, to use that power in an ethical manner
for the accomplishment of organizational goals.

• Leadership in organizations requires that leaders accept the responsibilities of

a position and the power that goes with the position

• Thus, they should be held accountable for the manner in which they use the
power inherent in their position for accomplishing organizational goals.
 Con’t
• Thus, leadership in organizations involves the use of various types of power to
influence performance and achieve goals.

• These may include legitimate power, reward power, coercive power, expert power,
referent power, and information power.

• Both formal and informal leaders exercise influence with an organization by some
combination of these forms of power.

• A discussion of each follows here under:

 Legitimate Power

• Legitimate power is the power assigned to a given position within

an organizational structure.

• The power comes with the position and is assigned to the person
who occupies a specific position within the organization.

• Should the individual leave the position, the power remains with the
position and does not follow the individual.
 Con’t
• A position that is higher in the organization will have more power vested in
it than a lower position; and a manager occupying the higher level position
will be able to exercise more power than someone occupying a lower
position.
• Thus, it would appear that legitimate power is more suited to a manager
than a leader, simply because leaders attract followers and get them to do
what is needed without position or hierarchical level.
• Managers on the other hand may need position over others to accomplish
tasks and achieve goals.
 Reward Power
• Reward power is also inherent within the organizational structure in that
managers are given administrative control over a range of rewards and resources.

• Employees can be influenced by the possibility of receiving rewards in exchange

for performing work.

• Organizational rewards are typically of monetary value; but they may also be
more subtle and intangible, such as managerial praise, status, attention,
scheduling, and promotion.

• Managers may offer a wide range of rewards to motivate work performance.

 Con’t

• If a manager cannot deliver a desired reward, or if the available

reward is not desired by or meaningful to the employee, the
reward power of the manager will be greatly diminished.

• Nevertheless, reward power is a tool by which managers use

organizational resources to influence and motivate genuine
performance.
 Con’t
• Thus, reward power seems to be more beneficial to managers than to leaders.
Leaders, as we have discovered earlier, often rely on more intrinsic rewards to
energize followers, whereas managers seem to be more in line with extrinsic
rewards to motivate followers.
Coercive Power
Coercive power is based upon a leader’s ability potentially to punish or dismiss an
employee and is, in part, implied by a leader’s legitimate power.

• Punishment is defined by a range of options, from a mild warning to a suspension

to termination of employment, all of which are assumed to have negative
consequences for the person being punished.

• Thus, in order for coercive power to be effective, a particular punishment must be

perceived as having negative consequences by the person being punished, just as
rewards must be perceived as meaningful by recipients.
 Con;t
• For example, for most people, losing one’s job is often perceived as
having negative economic consequences for the individual; but the use of
employment contracts with termination clauses has had the effects of
weakening the both perception of punishment and the consequences for
the individual when a decision is made to terminate the contract
regardless of the reason.
•
 Con’t
• Termination of employment may also be perceived as
having minimal economic consequences for an individual
when it is accompanied by a generous severance package.
• Thus, the punishment must be tied to the perception of
negative consequences for coercive power to be operative.
Often the potential to apply coercive power is sufficient in
itself to influence the desired a change in an employee’s
conduct or performance.
• Coercive power may also have negative repercussions
when it is associated with conflict.
 Con’t
• Similar to the allocation of meaningful rewards, a range of
punishments is needed because the punishment applied should be
appropriate or proportionate to the offending behaviour.

• Management, in having a range of punishments from a mild

warning to the more severe punishments, maintains a measure of
flexibility to assess what punishment is suitable to the behaviour in
question.
 CON’T
• Coercive power is more useful to managers than leaders who achieve goals
and objectives without coercing followers with some threat of punishment.

• As followers willingly do what they do out of respect for a leader, not in fear
of the leader.

• Several guidelines relative to the application of punishment are noteworthy:

The punishment should be suitable to the offense.

 Con’t

• The punishment should follow as closely in time as possible to the offense committed.

• The punishment should have educational value wherein the person punished should
understand why they are being punished in order for the employee to change his or her
behaviour.

• The manager doing the punishing should not enjoy doing it.
• Finally, a point to remember in connection with coercive power is that punishment, or the
threat of punishment, does not promote desired employee performance; it only discourages
undesirable actions on the part of subordinates. Even though punishment does not promote
desired behaviour, by serving to discourage undesirable behaviour, it is a powerful tool for
influencing behaviour.
Expert Power

• Expert power is complex and is associated with the particular qualifications

possessed by an individual, including specialized skills, knowledge, abilities,
or previous experience.

• Any of these qualifications may enable the individual to exercise influence

based on these qualifications, especially when the organization needs and
values the specialized skills, knowledge, abilities, or experience; the skills are
scarce; or the skills are highly specialized.
 Con’t

• Because expert power is often derived from specialized knowledge or

advanced education, it can be relatively unrelated to age, seniority, or time on
the job.

• This form of power allows someone who is relatively young or new to the
workforce to influence others within the organization.

• Expert power is often associated with innovation and the power to influence
change within an organization. associated with who possess highly relevant
and specialized qualifications.
 Referent Power
• Referent power is the power of one individual to influence another by force of character or
personal charisma.

• This type of power stems from the ability of a leader to influence others because of their
personal traits, charisma, and the respect and admiration they inspire.

• An individual may be admired because of a specific personal trait, and this admiration
creates the opportunity for interpersonal influence within a group or organization.

• An employee who is particularly handsome or beautiful, talented, or just plain likable may
be described by fellow employees as inspiring and motivating; thus, endowing the
individual with a potential to influence others as a result of these personal qualities.
 Con’t

• An interesting feature of referent power is that it can be gained by association.

An individual’s power may derive, not from their personality, but from their
association, relative position or reporting relationship with another person who
is identified as possessing power within the organization.

• Referent power is most often associated with leaders who possess the
charismatic characteristics that followers admire.

• It is important to note that some managers also have referent power and can
use this to exhort followers to accomplish tasks and achieve goals.
 Information Power

• Information power is power that comes from access to and control over information within the organization.

Information may be privileged information; it may be classified information; or it may simply be information to
which subordinates do not have access.

• The more information a person has within the organization, the more power that person has. Thus, information is
viewed as a valuable resource.

• This is where a key difference between leaders and managers comes into play: Leaders, in most cases, want their
subordinates to know more information, because it is easier to solicit the assistance of informed followers in
achieving goals and objectives.

• Managers, on the other hand, may be reluctant to share information if they perceive it as power-sharing and
believe that their power to control subordinates and direct their behaviour may be lost if their subordinates know
as much as they do. Thus, managers believe that information sharing means losing a measure of control over
 Con’t
• All in all, both formal and informal leaders exercise influence with an
organization by some combination of these forms of power.
• Formal leaders typically possess legitimate power by virtue of their position
within the organization.
• Their degree of control over organizational resources enables them to use
reward power to influence performance.
• They may also possess coercive power to the extent they can discipline
employees and affect decisions to hire or terminate employees.
 Con’t
• Formal leaders in complex organizations typically possess
varying degrees of expert power, which enables them to
influence decisions across functional areas of an organization.
• Depending on their position within an organization, formal
leaders may also use varying degrees of referent power to
influence decisions or performance.
• Informal leaders, by virtue of their position within an
organization, are less likely to possess legitimate power or
coercive power.
 Con’t
• Instead, they are more likely to rely upon a combination of expert power,
reward power and referent power to influence others. Informal leaders often
use expert power to influence change or innovation because their expertise
enables them to solve problems in new or creative ways and to develop new
products or services.

• Informal leaders may not control organizational resources typically associated

with tangible or monetary rewards, but they may use intangible forms of
reward power such as attention to motivate and influence others.
 Con’t
• Informal leaders may also use referent power to influence others by means of
charismatic qualities or reflected authority that is based upon their association
with more powerful individuals.

• Thus, leadership, influence, and power within an organization can be viewed

in terms of formal and informal leaders who use legitimate power, reward
power, coercive power, expert power and referent power in different
combinations.
 Some Leadership Realities

 People are not an organization’s greatest asset. Leaders are. If you invest in your leaders,
you’ll take care of every other asset—including your people.

 Leaders define their organization. What they think and how they think is crucial to the
organization’s success; what goes on inside their minds has greater impact on the organization than any other
single factor.

 Organizations don’t achieve greatness without planning for it, without

consciously applying the principles that lead to greatness. Applying those principles is a leadership function.

 To guide their thinking about the organization and its growth and transformation, leaders don’t need a
program, but they do need a framework. Individual giftedness and intuition are seldom enough; in fact,
they can be a handicap, because giftedness and intuition can keep leaders from uncovering their blind spots.
 Con’t
 Organization development and leader development need to be addressed together.
The two are inseparably intertwined. You cannot change an organization without
developing its leaders (at all levels of the organization).

 Leaders need to understand how the three dimensions of leadership apply to their
particular role. Ignorance or misunderstanding of these three dimensions is among the
main reasons for a leader’s frustration or ultimate derailment. Organizations are best led
when the right kind of leadership is intentionally and systematically applied to the right
context and at the right level. Errors in this area cause much of the confusion in
leadership.
 What Makes effective leader?

• Effective leaders have many common qualities. Good group

leaders make an effort to learn and practice skills so they can:
listen to others openly, offer and accept constructive
suggestions, give clear directions, set and deadlines give
formal and informal presentations, help member’s identity
and solve problems.
Effective leaders are characterised by the followings:

a. They are honest: This gives them credibility, resulting in the trust and confidence of their people, credible leader
foster greater pride in the organization, a stronger sprit of coordination, and team work, and more feelings of ownership
and personal responsibility.

b. Effective leaders want do what they will do they keep their promises and follow through on their commitment.

c. Consistent: The make sure their actions are consistent with the wishes of the people the lead. They have clear idea of
what others value and what they can do.

d. They believe in the inherent self-worth of others. self confidence of others

e. They admit to their mistakes. They realize that attempting to hide a mistake is damaging and erodes credibility.
 Con’t
f. They create trusting and open climate

g. They help others successful and feel empowered.

h. They don’t push too much. They encourage members to do more, but
know when it is too much

i. They avoid phrases that cause resentment, reluctance and resistance. For
instance, instead of saying you have to do something, effective leaders
request or recommend that member that member’s do something.
THANK YOU