Definition and Significance of Leadership docx

• Transformational and Visional Leadership Models : Effectiveness is the successful implementation of large scale change in an organization... Fred Luthans 1989 : defines leadership

NGHỆ THUẬT LÃNH ĐẠO

MSMH: NS301DV01

After studying this chapter, you will be able to:

• Define leadership and leadership effectiveness

• Explain why people need leadership

• Discuss the major obstacles to effective

 Effective leadership

 Obstacles to effective leadership

 Leadership and management

 Roles and functions of a leader

 Changes in organizations and expectations of leaders

Chapter 1:

Definition and Significance of

Leadership

Chapter 1

1.1- Effective Leadership

What is leadership?

• Leadership is a group of phenomenon There can be no leaders without followers As such, leadership always

involves interpersonal influence or persuasion

• Leadership is goal directed and plays an active role in groups and organizations Leaders use influence to guide others through a certain course of action or toward the

achievement of certain goals

What is leadership?

• The presence of leaders assume some forms of

hierarchy within a group .

– Formal hierarchy, with leader at the top

– Informal and flexible hierarchy

Who is a leader?

• A leader is a person who influences individuals and groups within an organization, helps them in establishing goals, and guide them toward

achievement of those goals, thereby allowing

them to be effective.

What is effectiveness?

• Fred Friedler’s Contingency Model : Leadership effectiveness = Performance

– Leaders are effective when their group perform well

• Robert House’s Path-Goals Theory : Leadership effectiveness = Followers satisfaction

– Leaders are effective when their followers are satisfied

• Transformational and Visional

Leadership Models : Effectiveness is

the successful implementation of

large scale change in an organization.

What is effectiveness?

• Community point of view:

– “Effectiveness is helping people communicate more, collaborate more, and innovate more” (Mieszkowski, 1998)

– “Cooperation, aligning people’ self-interest, and getting buy-in from the people who are affected by the leader’s decisions” (Baker, 2006)

– “Helping the community, and bring self-sufficient”

(Salter, 2000a)

• Sales point of view: Satisfied customer

Effectiveness can only be achieved by providing

“attentive, sincere, memorable service”

(McGregor, 2004a: 83)

What is effectiveness?

2 Fred Luthans (1989 ): defines leadership

effectiveness by distinguishing between effective and successful managers.

Effective Managers Successful Managers

Those with satisfied and productive

employees Those who are promoted quickly

Spend their time communicating with

subordinates, managing conflicts, and

training, developing and motivating

employees

Focus not on employees Instead, they concentrate on networking activities such as interacting with outsiders, socializing and politicking.

What is effectiveness?

3 Any definition of leadership effectiveness should consider all different roles and functions that a leader performs.

– In fact, organizations often fall back on simplistic

measures, regardless of how satisfied the company’s employees are

– Stockholders and financials consider a CEO to be

effective if company stock prices keep increasing

– Politicians are effective if the polls indicate their

popularity is high and if they are reelected

– A football coach is effective when the team is winning.– Students’ scores on standardized tests determine a school principal’s effectiveness

What is effectiveness?

• The common thread in all these examples of

effectiveness is the focus on outcome

– To judge their effectiveness, we look at the results of what leaders accomplish

– Process issues, such as employees’ satisfaction, are important but are rarely the primary indicator of

effectiveness

What is effectiveness?

The definition of leadership effectiveness, therefore, should contain 3 elements:

• Goals achievement : meeting financial goals,

producing quality products or services,

addressing the needs of customers…

• Smooth internal process : group cohesion,

followers’ satisfaction, and efficient operations.

• External adaptability : group’s ability to change and evolve successfully

When is a leader effective?

• Leaders are effective when their followers

achieve their goals, can function well together, and can adapt to changing demands from

external forces.

Why do we need leaders?

• To keep group orderly and focused The existence of groups require some form of organization and hierarchy Leaders are needed to pull the individuals together, organize and

coordinate their efforts.

• To accomplish tasks Groups allow us to accomplish tasks that individuals alone could not undertake or complete Leaders are needed to facilitate that accomplishment, to provide goals and directions, and coordinate activities.

• To make sense of the world Groups and their leaders

provide individuals with a perceptual check Leaders help us make sense of the world, establish social reality, and assign

meaning to events and situations that may be ambiguous.

• To be romantic ideals Leadership is needed to fulfill our

desire for mythical or romantic figures who represent us and

Chapter 1

1.2- Obstacles to Effective Leadership

– The lack of learning and experimentation causes the continuation

of the crises, which makes unavailable the time needed to learn and practice innovative behaviors.

• Organizations are often rigid and unforgiving

– In the push for short-term and immediate performance,

organizations do not allow any room for mistake and

experimentation Such rigidity and reward systems discourage endeavors.

Obstacles To Effective

Leadership

• Organizations fall back on old ideas about effective

leadership, and therefore, rely on simplistic solutions

that do not fit new and complex problems

• Organizations develop a particular culture that strongly influences how things are done and what is considered acceptable behavior

– As leaders try to implement new ideas and experiment with new methods, they may face resistance generated by the established culture.

• The difficulty involved in understanding and applying the findings of academic research

Chapter 1

1.3- Leadership and

Management

Leadership and Management

Leadership and Management

 Focus on the present

 Maintain status quo and

stability

 Implement policies and

procedures

 Maintain existing structure

 Remain aloof to maintain

objectivity

 Use position power

 Focus on the future

 Create change

 Initiate goals and strategies

 Create a culture based on shared values

 Establish an emotional link with followers

 Use personal power

Chapter 1

1.4- Roles and Functions of a Leader

Managerial Roles

• Roles: are sets of expected behaviors ascribed to

leaders/ managers by virtue of their leadership position

• Basic managerial functions: planning, organizing,

staffing, directing and controlling

• Internal functions: to provide their groups or

organizations with a sense of vision and mission

– Department managers need to plan and organize their

department’s activities and assign various people to perform tasks, monitor their employees’ performance and correct

employee's actions when needed.

• Strategic and external functions.

– Managers negotiate with their boss and other department

managers for resources and coordinate decisions and activities with them

Functions of the leader

• One of the major functions of leaders is the

creation and development of a culture and

climate for their groups or organizations

(Nahavandi and Malekzadeh, 1993a; Schein,

2004).

Role

model

Reward system

Hiring decisions

Strategy and structure Leader

Organizational

Culture

Functions of the leader

• Leaders are models for other organizational members

– They establish and grant the status symbols that are the main

artifacts of organizational culture

– Followers take their cues from the leaders on what behaviors are and are not acceptable.

• Leaders are to manage the emotions of group members

(Hemphrey, 2002; Kellett, Humphrey, and Sleeth, 2002) to maintaining followers' positive outlook in uncertain and

ambiguous situations

– Followers observe their leaders’ emotional reactions and take their cues from them to determine appropriate reactions (Pescosolido, 2002): teamwork, globalization, challenge to retain valued

employees.

Functions of the leader

• Leaders, particularly founders, leave an almost-indelible

mark on the assumptions that are passed down from one generation to the next

– In fact, organizations often come to mirror their founders’

personalities.

• Founders’ style (or founders’ family history):

– If the founder is workaholic and control oriented, the organization is likely to push for fast-paced decision making and

be centralized.

– If the founder is participative and team oriented, the organization will be decentralized.

Functions of the leader

• Leaders are to accept responsibility for one’s action

– With the power and status afforded to leaders, comes the

obligation of accepting responsibility for their own decisions and the organization's impact on others.

• Leaders are to make decisions regarding the reward system (Kerr and Slocum, 1987) and the control over

decision standards

– Rewards: financial and non financial

– Accomplishments: contribution to cultural diversity or the degree

Functions of the leader

• Leaders are to make decisions for the organization about

structure and strategy, by determining the hierarchy, span of control, reporting relationship, and degree of

formularization and specialization

– A highly decentralized and organic structure  open and

• The strategy selected by the leaders or top management team will be determined by the culture of the organization.– A proactive growth strategy that require innovation and risk

taking vs a strategy of retrenchment.

Does Leadership Make a

Difference

Leadership is Insignificant Leadership has an Impact

 Outside environmental factors

affect organizations more than

leadership

 Internal structure and strategy

determine the course an

organization takes

 Leadership accounts for only 7

to 15% of financial

performance

 Leaders have little discretion to

really make an impact

 Leadership is a romantic myth

rather a real organizational

 Leadership’s impact is moderated by situational factors

Reconciling the

Differences

• Leadership is one of many factors that influence the

performance of a group or an organization

• The leader's contribution, although not always tangible,

is often significant in providing a vision and direction for followers and in integrating their activities

• About the leader's power and discretion, the key is to identify situations where the leader's power and discretion over the group and organization are limited

• The potential lack of impact of leaders in some situations further emphasizes the importance of followers in the success of leadership and the need to understand

organizations as broad systems

• The 2 views (against and for the impact of leadership)

complement each other and should be fully integrated (Osborn, Hunt, and Jauch, 2002)

Chapter 1

1.5- Changes

in Organizations

and Expectations

of Leaders

Control versus Result-Oriented

Plan and Organize

Do Results

 Responsible only for

production; the planning,

leading and controlling

functions, as well as the

responsibility for results, fall

employees, account as support person, and get out

of employees' way

 Employees learn about the strategic and financial issues related to their job, plan their own activities, set

production goals, and take

Factors fueling changes

External and internal organizational factors are driving

the changes in organizations and in the role of leaders and managers

• Political changes worldwide  more openness and

democracy

• Global and local competition, and complex and fast

changing technologies  reconsider how to provide

goods and services to customers

• Global competition associated with consumer demands

for improved quality in products and services  need for flexibility and creativity on the part of organizations

Factors fueling changes

• Demographic changes  increased diversity (age,

gender, ethnic background, women in the workforce…) in groups and organizations

– leaders must consider this diversity when making decisions

– younger generation enters the workplace with expectation of

participation and autonomy, fast promotions, challenging learning opportunities, training, and work life balance

• Increase in service jobs (vs traditional manufacturing jobs)  employees be in direct contact with customers, use judgment and make quick decisions (that previously reserved for management)

Barriers to Change

• Autocratic leaders whose goals are clearly, not

employee motivation and loyalty

• Cost-cutting strategies  widespread layoffs.

• Focus on short-term and quick results cannot create

the motivation necessary for the innovation and superior service

• Top management still remains a one-person show

• Old cultures in the reward system (for individual

performance), more bureaucracy, lower autonomy, low responsibility

• Employees are not willing or able to accept their new

roles as partners and decision makers, even when such roles are offered to them Even when organizations

encourage change, leaders find giving up control difficulty (because of years of traditional training, of personality

characteristics…)

Questions? ?