Management, Leadership and Charisma

1. Management, Leadership and Charisma Peter Andras and George Erdos Behavioural Ecology Group Seminar Thursday, October 25th, 2001

2. Leaders Some researchers who have studied leadership in organised settings tend to state that people endowed with authority are leaders. Therefore, supervisors and managers within organisations can be called leaders. Many theories of leadership are concerned with managerial influence and the terms “leadership” and “management” are sometimes used interchangeably. However, some scholars can see differences between management and leadership.

3. Leadership and management Kotter (1990, What do leaders really do? Harvard Business Review, 68, 103-111.) felt that leadership and management are two distinctive a complementary systems, each having its own function and its own characteristic activities, but both are necessary for the management of complex organisations. According to Kotter, management is about planning, controlling, and putting appropriate structures and systems in place, whereas leadership has more to do with anticipating change, coping with change, and adopting a visionary stance.

4. Leaders and managers Zaleznik (1986, Managers and leaders: Are they different? Harvard Business Review, May/June, 54) also perceives a difference between management and leadership. Managers are seen as fairly passive people-centred operators intent on keeping the show on the road, whereas leaders seem to be more solitary, proactive, intuitive, emphatic, and are attracted to situations of high risk where the rewards for success are great.

5. Leadership In light of the above management and leadership could be defined as: Leadership is a force that creates a capacity among a group of people to do something that is different or better. This could be reflected in a more creative outcome, or a higher level of performance. In essence leadership is an agency of change and could entail inspiring others to do more than they would otherwise have done, or were doing.

6. Management By contrast, management is a force more preoccupied with planning, co-ordinating, supervising, and controlling routine activity, which of course can be done in an inspired way. Managerial leadership could be viewed as an integral part of the managerial role, and its significance grows in importance as one moves up the organisational hierarchy.

7. Leadership theories The study of leadership is not new. As Bass writes: “The study of leadership rivals in age the emergence of civilization, which shaped its leaders as much as it was shaped by them. From its infancy, the study of history has been the study of leaders – what they did and why they did it. (1990, Bass and Stogdill’s Handbook of Leadership. 3rd Ed. p.3)

8. The trait approach Early research into leadership can be characterized as a search for ‘the great man’. Personal characteristics of leaders were emphasized and the implicit idea was that leaders are born rather than made. All leaders were supposed to have certain stable characteristics that made them into leaders. The focus was on identifying and measuring traits that distinguished leaders from non-leaders or effective from ineffective leaders. There was the hope that a profile of an ‘ideal’ leader could be derived from the above that could serve as the basis for selection of future leaders.

9. Personal characteristics Physical features height, physique, appearance and age Ability intelligence, knowledge, and fluency of speech Personality dominance, emotional control and expressiveness, and introversion-extraversion

10. Leadership style Disillusionment followed the lack of empirical evidence for the existence of a ‘leadership trait profile’. This in turn led to a new emphasis on studying leadership style meaning what leaders actually do. In this approach, effectiveness of leaders is dependent on the exerted leadership style. Whereas the trait approach focused on stable personal characteristics, which were usually thought to be largely innate, the style approach implied that leadership is a behavioural pattern, which can be learned.

11. Leadership style - theories Bipolar: (Ohio State) Consideration vs initiating structure Tripartite: (Michigan) Task oriented behaviour Relationship oriented behaviour Participative Leadership

12. Leadership style - theories Quadruple: (Likert) Exploitive authoritative Benevolent authoritative Consultative Participative Tripartite: (Lewin) Autocratic Democratic Laissez-fair

13. Contingency approaches The main proposition in contingency approaches is that the effectiveness of a given leadership style is contingent on the situation, implying that certain leader behaviours will be effective in some situations but not in others. Fiedler’s model based on his ‘Least preferred co-worker’ (LPC) measure.

14. Transformational leadership In transformational leadership the emphasis is on people of vision, who are creative, innovative, and capable of getting others to share their dreams while playing down self-interest and who are able to co-operate with others in reshaping the strategies and tactics of the organisation. To these qualities could be added the pursuit of high standards, taking calculated risks, challenging and changing the existing company structure, with even the potential for the display (when considered appropriate) of directive tendencies.

15. Transactional leadership Transactional and transformational leadership should not be viewed as opposing approaches to getting things done. Transformational leadership is built on top of transactional leadership; it produces levels of effort and performance on the part of subordinates that go beyond that associated with a transactional approach and is something more than charisma. The transformational leader will attempt to cultivate in subordinates the ability and determination to challenge not only established views but to question the leader’s opinions as well.

16. Charisma Beginnings: Greeks, religious context, Weber. Charismatic skills influence leadership style and effectiveness. Important for transformational leadership. Hard to define and measure.

17. Charisma – Formalization I. • 4 I-s (transformational leadership; Bass, 1993) : • Idealized influence; • Inspirational motivation; • Intellectually stimulating; • Individual consideration.

18. Charisma – Formalization II. • 5 behavioural aspects (Conger & Kanungo, 1998): • Vision and articulation; • Sensitivity to the environment; • Sensitivity to member needs; • Personal risk taking; • Performing unconventional behaviour.

19. Charisma – Formalization III. • Skills: • vision; • persuasive speaking; • dominant body language; • good listener; • trustworthy and esteemed; • good organizer and commander. • Attitudes: • strong sense of responsibility; • strong self-confidence; • strong ethical beliefs; • ready to provide support; • willingness for sacrifice; • ready to challenge the rules + Experiences

20. Environmental conditions • Charismatic leader is effective in appropriate environment. • Such conditions: • high risk; • high unpredictability; • rapid changes; • little institutionalisation.

21. Early humans and charismatic leaders Appropriate conditions for effective charismatic leaders. Good charismatic leader: advantage for the group and advantage for the leader. If there are innate charismatic skills they are likely to provide evolutionary advantage.

22. The dark side of the charisma Over expression of charismatic skills: stigma. Lack of other leadership skills: possible catastrophe for the followers.

23. Conclusions • Charismatic skills are important for effective leadership. • Other management and leadership skills are important too, and their lack can be catastrophic for the leader and the followers. • If there are innate charismatic skills they are likely to give evolutionary advantage to their holders. • In the case of the existence of innate leadership skills, management training should focus on cultivation of these skills together with other skills in those who have them, and compensation of the lack of such skills in those who do not have them.