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Chapter #08

  1. Leadership and power Organizational Behavior CHAPTER #08 By: Mohammad Qasim AYAZ Lecturer, Altaqwa institute of Management Sciences
  2. This Chapter includes • Defining leadership? • Importance of leadership. • Theories of Leadership. 1. Trait Theories 2. Behavioral Theories of leadership. • Charismatic Leadership and Transformational Leadership. • Communication Style of a good leader. • Role of leader in an organization. • Leader Versus Manager. • Characteristics of a good leader. • Defining Power? • Types of Power in leadership 1. Legitimate Power. 2. Referent Power. 3. Expert Power. 4. Reward Power. 5. Coercive Power. 6. Informational Power.
  3. Defining leadership? • The action of leading a group of people or an organization, or the ability to do this. • Leadership is the ability of a company's management to set and achieve challenging goals.
  4. Importance of leadership Leadership is an important function of management which helps to maximize efficiency and to achieve organizational goals. The following points justify the importance of leadership in a concern. 1. Initiates action- Leader is a person who starts the work by communicating the policies and plans to the subordinates from where the work actually starts. 2. Motivation- A leader proves to be playing an encouragement role in the concern’s working. He motivates the employees with economic and non-economic rewards and thereby gets the work from the subordinates. 3. Providing guidance- A leader has to not only supervise but also play a guiding role for the subordinates. Guidance here means instructing the subordinates the way they have to perform their work effectively and efficiently. 4. Creating confidence- Confidence is an important factor which can be achieved through expressing the work efforts to the subordinates, explaining them clearly their role and giving them guidelines to achieve the goals effectively 5. Building morale- A leader can be a morale booster by achieving full co-operation so that they perform with best of their abilities as they work to achieve goals. 6. Builds work environment- Management is getting things done from people. An efficient work environment helps in sound and stable growth. Therefore, human relations should be kept into mind by a leader. 7. Co-ordination- Co-ordination can be achieved through combining personal interests with organizational goals.
  5. Theories of Leadership Trait Theory of Leadership: The trait model of leadership is based on the characteristics of many leaders - both successful and unsuccessful - and is used to predict leadership effectiveness. Among the core traits identified are: 1. Achievement drive: High level of effort, high levels of ambition, energy and initiative. 2. Leadership motivation: an intense desire to lead others to reach shared goals. 3. Honesty and integrity: trustworthy, reliable, and open. 4. Self-confidence: Belief in one’s self, ideas, and ability. 5. Cognitive ability: Capable of exercising good judgment, strong analytical abilities, and conceptually skilled. 6. Knowledge of business: Knowledge of industry and other technical matters. 7. Emotional Maturity: well adjusted, does not suffer from severe psychological disorders.
  6. Behavior Theory of Leadership Behavioral theories of leadership are classified as “task oriented and people oriented”. Behaviors of a leader. • Task oriented leaders - The task concerned leaders are focusing their behaviors on the organizational structure, the operating procedures (S.O.P.) and they like to keep control. They will favor behaviors like. 1. Initiating 2. Organizing 3. Clarifying 4. Information Gathering • People oriented leaders- The people oriented leaders are focusing their behaviors on ensuring that the inner needs of the people are satisfied. Thus they will seek to motivate their staff through emphasizing the human relation. • Leaders with a people focus will have behaviors like. 1. Encouraging. 2. Observing. 3. Listening. 4. Coaching and Mentoring.
  7. Leadership Styles The four leadership styles are: 1. Directive: Here the leader provides guidelines, lets subordinates know what is expected of them, sets performance standards for them, and controls behavior when performance standards are not met. 2. Supportive: The leader is friendly towards subordinates and displays personal concern for their needs, welfare, and well-being. This style is the same as people-oriented leadership. 3. Participative: The leader believes in group decision-making and shares information with subordinates. He consults his subordinates on important decisions related to work, task goals, and paths to resolve goals. 4. Achievement-oriented: The leader sets challenging goals and encourages employees to reach their peak performance. The leader believes that employees are responsible enough to accomplish challenging goals.
  8. Charismatic Leadership and Transformational Leadership. • charisma is a special quality of leaders whose purposes, powers, and extraordinary determination differentiate them from others • the term charismatic means to have a charming and colourful personality • Charisma is a positive and compelling quality of a person that makes many others want to be led by that person. • the transformational leader helps bring about major, positive changes by moving group members beyond their self- interests and toward the good of the group, organization, or society. • The essence of transformational leadership is developing and transforming people.
  9. Communication Style of a good leader • Management by Inspiration: Managing by dictate is being replaced by managing by inspiration • Management by Story Telling: Management by storytelling is the technique of inspiring and instructing team members by telling fascinating stories.
  10. Leader Versus Manager. Basis Manager Leader Origin A person becomes a manager by virtue of his position. A person becomes a leader on basis of his personal qualities. Formal Rights Manager has got formal rights in an organization because of his status. Rights are not available to a leader. Followers The subordinates are the followers of managers. The group of employees whom the leaders leads are his followers. Functions A manager performs all five functions of management. Leader influences people to work willingly for group objectives. Stability It is more stable. Leadership is temporary. Mutual Relationship All managers are leaders. All leaders are not managers. Concern A manager’s concern is organizational goals. A leader’s concern is group goals and member’s satisfaction. Leaders and Managers can be compared on the following basis:
  11. Characteristics of a good leader. • Personality. • Vision. • Communication skills. • Ability to Inspire others. • Emotional Intelligence. • Energy and action oriented. • Enjoy Risk. • Self-Promoting Personality.
  12. Defining Power. 1. The ability or capacity to do something or act in a particular way. 2. The capacity or ability to direct or influence the behavior of others or the course of events. 3. Ability to cause or prevent an action, make things happen; the discretion to act or not act.
  13. Types of Power in leadership 1. Legitimate Power- Also called "positional power," this is the power individuals have from their role and status within an organization. 2. Referent power comes from the ability of individuals to attract others and build their loyalty. It is based on the personality and interpersonal skills of the power holder. 3. Expert power - draws from a person's skills and knowledge and is especially potent when an organization has a high need for them. 4. Reward power - refers to the degree to which the individual can provide external motivation to others through benefits or gifts. In an organization, this motivation may include promotions, increases in pay, or extra time off. 5. Coercive power is the ability of a manager to force an employee to follow an order by threatening the employee with punishment if the employee does not comply with the order. 6. Informational power comes from access to facts and knowledge that others find useful or valuable. That access can indicate relationships with other power holders and convey status that creates a positive impression.