Leadership in Organizational Settings

1. Leadership inOrganizational Settings

2. Leadership at Infosys “In essence, leadership is about dreaming the impossible and helping followers achieve the same,” says Nandan Nilekani, chief executive of Infosys, one of India’s largest and most successful information technology companies.

3. What is Leadership? Leadership is the ability to influence, motivate, and enable others to contribute toward the effectiveness of the organizations of which they are members.

4. Shared Leadership • Leadership is not restricted to people in formal management positions. • Anyone in the organization may -- and should -- be a leader in various ways and at various times. • Effective companies encourage employees to be leaders when needed (e.g. change champions)

5. Perspectives of Leadership Competency Perspective Leadership Perspectives Behavioral Perspective Implicit Leadership Perspective Transformational Perspective Contingency Perspective

6. more Seven Leadership Competencies Emotional Intelligence • Perceiving, assimilating, understanding, and regulating emotions Integrity • Truthfulness • Translates words into deeds Drive • Inner motivation to pursue goals • Need for achievement, quest to learn Leadership Motivation • High need for socialized power to accomplish team’s or firm’s goals

7. Seven Leadership Competencies (con’t) Self-Confidence • Strong belief in one’s ability to lead others Intelligence • Above average cognitive ability • Can analyze problems/opportunities Knowledge ofthe Business • Familiar with business environment • Aids intuitive decision making

8. In Search of Leader Integrity • Likely the most important leadership competency • Also called “authentic leadership” • Individual acts with sincerity • Has a higher moral capacity to judge dilemmas • Most people think business leaders lack integrity: • 73% say CEOs of large firms can’t be trusted (US) • Less than one-third of Asian workers are satisfied with their level of trust in management

9. Competency Perspective Limitations • Implies a universal approach • Alternative combinations of competencies might work just as well • Some traits are subjective • Several competencies indicate leadership potential, not actual leadership

10. Leader Behavior Perspective What makes Bruce Draper (shown here) one of the best bosses in Great Britain? He provides plenty of supportive leadership, says employee Hannah Delany. “Bruce cares about his staff and never takes them for granted…He appears friendly, approachable and kind and makes sure everyone is content in their job.”

11. Leader Behavior Perspective • People-oriented behaviors • Showing mutual trust and respect • Concern for employee needs • Looks out for employee well-being • Task-oriented behaviors • Assign specific tasks • Ensure employees follow rules • Set “stretch goals” to achieve performance capacity

12. Path-Goal Leadership Styles • Directive • Task-oriented behaviors • Supportive • People-oriented behaviors • Participative • Encouraging employee involvement • Achievement-oriented • Using goal setting and positive self-fulfilling prophecy

13. Leader Effectiveness • Employee motivation • Employee satisfaction • Leader acceptance Leader Behaviors • Directive • Supportive • Participative • Achievement-oriented Path-Goal Leadership Model Employee Contingencies Environmental Contingencies

14. Skill/Experiencelow low high high Locus of Controlexternal external internal internal Employee Contingencies Directive Supportive Participative Achievement Directive Supportive Participative Achievement Environmental Contingencies Path-Goal Contingencies Task Structure nonroutine routine nonroutine ? Team Dynamics–ve norms low cohesion +ve norms ?

15. Other Contingency Leader Theories • Situational Leadership Model (Hersey/Blanchard) • Effective leaders vary style with follower “readiness” • Leader styles – telling, selling, participating, and delegating • Theory lacks research support • Fiedler’s Contingency Model • Leadership style is stable --based on personality • Best style depends on situational control • Theory has problems, but uniquely suggests that people have a preferred leadership style based on personality

16. Leadership Substitutes • Contingencies that limit a leader’s influence or make a particular leadership style unnecessary. • Examples: • Training and experience replace task-oriented leadership • Cohesive team replaces supportive leadership • Self-leadership replaces achievement-oriented leadership • Research evidence: substitutes help, but don’t completely substitute for real leadership

17. Transformational Leadership at P&G Procter & Gamble CEO A. G. Lafley practices transformational leadership without using charisma. By forming and communicating a clear vision and modeling that vision, he has transformed the consumer goods company in recent years.

18. Transformational v. Transactional Leaders • Transformational leaders • Leading -- changing the organization to fit environment • Change agents • Transactional leaders • Managing -- linking job performance to rewards • Ensure employees have necessary resources • Apply contingency leadership

19. Transformational v. Charismatic Leaders • Is charismatic leadership essential for transformational leadership? • Some experts say yes, but emerging view is that: • Charisma is distinct from transformational leadership • A personal trait that might help transform, or might just help the leader • Charismatic leadership might have opposite effect -- creates dependence, not empowerment

20. Transformational Leadership Elements Creating a Strategic Vision Communicating the Vision Transformational Leadership Building Commitment Modeling the Vision

21. Evaluating Transformational Leadership • Transformational leadership is important • Higher employee satisfaction, performance, org citizenship, creativity • Transformational leadership limitations • Circular logic -- leaders effective by definition • Universal theory • Need a contingency-oriented theory • Recognize differences across cultures

22. Implicit Leadership Perspective AttributingLeadership Implicit LeadershipPerspective Stereotyping Leadership Need for Situational Control

23. Cultural Issues in Leadership • Societal cultural values and practices affect leaders: • Shape leader’s values/norms • Influence decisions and actions • Some leadership styles are universal, others differ across cultures • “Charismatic visionary” seems to be universal • Participative leadership works better in some cultures than others

24. Gender Issues in Leadership • Male and female leaders have similar task- and people-oriented leadership. • Participative leadership style is used more often by female leaders.

25. Evaluating Female Leaders • Past evidence • Women rated less favorably than equivalent male leaders due to stereotyping • Recent evidence • Women rated more favorably than men, particularly on emerging leadership styles (coaching, teamwork)

26. Leadership inOrganizational Settings