IGD

Kumar Kunal Kamal

IIM Udaipur
 Leader vs. Manager
MANAGERS AND LEADERS: ARE THEY DIFFERENT?
Prentice W. C. (1961). Understanding leadership. Harvard business review, 39(5), 143.
Managers Leaders
Planning and Budgeting Setting a Direction for the Organization

Organizing and Staffing Aligning People with that Direction

through Communication

Controlling and Problem Motivating People to Action, partly

Solving through Empowerment and partly through
basic Need Gratification
 “Great Man” Theories

• On Heroes, Hero-Worship, and The Heroic in History (1841)

• Lectures on Heroes: Six Lectures

• Capacity for leadership is inherent

• Leaders are born, not made

• "History is nothing but the biography of the Great Man".

Thomas Carlyle
• Challenge: Hero worship allows worshippers to abnegate responsibility (1795-1881)
 The Six Lectures

The Hero as Divinity | Odin; Scandinavian Mythology

The Hero as Prophet | Muhammad

The Hero as Poet | Dante, Shakespeare

The Hero as Priest | Luther, Knox

The Hero as Man of Letters | Johnson, Rousseau, Burns

The Hero as King | Cromwell, Napoleon

Herbert Spencer
• “Survival of the fittest”

• Great men are the products of their societies.

• Heroes are conditioned by the social conditions of their
time.

• “You must admit that the genesis of a great man depends

on the long series of complex influences which has
produced the race in which he appears, and the social
state into which that race has slowly grown.... Before he
can remake his society, his society must make him.”
(1820 - 1903)

Spencer, Herbert. The Study of Sociology. Vol. 5. Henry S. King, 1873.

Leadership Theories
Trait

Leadership is a trait; it is the unique property of extraordinary individuals

• Extraverion (+ve) • Charisma (+ve)

• Conscientiousness (+ve) • Intelligence (+ve)
• Openness (+ve) • Interpersonal Skills (+ve)
• Neurotic (-ve) • Decision Making Skills (+ve)
• nAff (+ve) • Problem Solving Skills (+ve)
• nAch (+ve) • Management Skills (+ve)
• nPow (+ve) • Communication Skills (+ve)
 • Great men are made, not
born
Michigan Studies of Leadership

• People can learn to become Production-oriented behaviour

leaders through teaching
and observation Employee-oriented behaviour

Leadership
• Focus on what leaders
Theories
Ohio State University Studies
actually do, than their traits
Initiating Structure

• Leadership success is Consideration

Behavioral defined in terms of
describable actions
 The theory classifies the favorableness of the leader’s
situation according to the leader’s position power, the
structure of the team’s task, and the quality of the
leader–follower relationships

(1) Leader-member Relations

Leadership (2) Task structure
Theories (3) Leader position power

Fiedler’s
Contingency Assumption:
Leaders are either Task Oriented or Relationship Oriented
Theory
High LPC
(relationship-
oriented)
leaders
are most
effective in
situations of
intermediate
favorableness
 Unfriendly 1 —8 Friendly
Unpleasant 1 —8 Pleasant
Rejecting 1 —8 Accepting
Tense 1 —8 Relaxed

Least-Preferred Cold
Boring
1
1
—8
—8
Warm
Interesting
Co-Worker Scale Backbiting 1 —8 Loyal
Uncooperative 1 —8 Cooperative
Hostile 1 —8 Supportive
Guarded 1 —8 Open
Insincere 1 —8 Sincere
Unkind 1 —8 Kind
Inconsiderate 1 —8 Considerate
Untrustworthy 1 —8 Trustworthy
Gloomy 1 —8 Cheerful
Quarrelsome 1 —8 Harmonious

Task Oriented vs. Relationship Oriented

 • Graen’s leader-member exchange (LMX) theory.

• Average Leadership Style (ALS): Leaders manifest a

consistent leadership style across situations.
• Vertical Dyad Linkage (VDL) Theory: Leaders
differentiate among their subordinates in terms of
leader behaviour.
Leadership
Theories • General Model of Role-Making Process: During the
initial process of organizing their roles, the
subordinate-superior dyads engage themselves in
vertical exchanges to negotiate job-related matters.
Leader-Member
Exchange
 Leadership Theories
▪ Superiors have time and energy constraints Leader-Member Exchange
▪ Segregation of subordinates based on the
perception of role-readiness
▪ Based on level of readiness, subordinates
given cadre membership (in-group)

▪ Superior to Subordinate: Higher

attention and support to in-group members
▪ Subordinate to Superior: Higher and
committed engagement in activities
 Leadership Theories
Path-Goal Theory

A successful leader clarifies the linkage between path and

goal

Performance should improve as the following paths become

clarified:

• (1) Effort leading to Performance (Expectancy)

• (2) Performance leading to valued outcomes (Instrumentality)

Effort Performance Outcome

E I V
 Leadership Theories
Path-Goal Theory

• Supportive • Participative
• Shows concern for followers’ psychological • Leader consults followers and asks for their
well-being. suggestions before deciding.

• Effective when an organizational member is • Effective when leaders need help in identifying work
performing a boring, stressful, frustrating, tedious, procedures and where followers have the expertise
or unpleasant task. to provide this help.

• Directive • Achievement-oriented
• Leader lets followers know what is expected • Leader sets challenging goals for followers.
of them and tells them how to perform their
tasks. • Effective when leaders have confidence in followers’
ability to meet this expectation of performing at the
• Effective when role ambiguity is high. highest level.
 Leadership Theories
Transactional and Transformational

Transactional Leadership
Involves leader-follower exchanges necessary
for achieving routine performance agreed
upon between leaders and followers.

Transformational Leadership
Occurs when leaders broaden and elevate
followers’ interests and stir followers to look
beyond their own interests to the good of
others.
Leadership Theories
Transactional and Transformational

Transactional Leadership: Transformational Leadership:

• Provides unambiguous structure for • Excellent at communicating new ideas.
large organizations, systems requiring • Good at balancing short-term vision
repetitive tasks and infinitely and long-term goals.
reproducible environments.
• Experience building strong coalitions
• Achieves short-term goals quickly and establishing mutual trust with high
• Rewards and penalties are clearly integrity and high emotional
defined for workers. intelligence (empathy with others).
• Creativity is limited since the goals and • Ineffective in initial stage or ad-hoc
objectives are already set. situations.
• Does not reward personal initiative. • Bad fit in bureaucratic structures.
Transactional +

Contingent reward (CR) shows the degree to

Contingent Transactional which you tell others what to do in order to be
Reward Leadership rewarded, emphasize what you expect from
them, and recognize their accomplishments.

Management-by-exception (ME) assesses

Tansactional
Management-by- whether you tell others the job requirements,
Leadership &
exception are content with standard performance, and are
Passive Leadership a believer in “if it ain’t broke, don’t fix it.”

Laissez-faire (LF) measures whether you require

Laissez-faire
Passive Leadership little of others, are content to let things ride,
Leadership and let others do their own thing.
Tranformational

Idealized Influence (II) indicates whether you hold subordinates’ trust, maintain
Idealized
their faith and respect, show dedication to them, appeal to their hopes and
Influence dreams, and act as their role model.

Inspirational motivation (IM) measures the degree to which you provide a vision
Inspirational
and demanding goals, use appropriate symbols and images to help others focus
Motivation on their work, and try to make others feel their work is significant.

Intellectual stimulation (IS) shows the degree to which you encourage others to be
Intellectual creative in looking at old problems in new ways, create an environment that is
Stimulation tolerant of seemingly extreme positions, and nurture people to question their own
values and beliefs and those of the organization.

Individualized consideration (IC) indicates the degree to which you show interest in
Individualized
others’ well-being, assign projects individually, and pay attention to those who
Consideration seem less involved in the group
 Leadership Theories
Charismatic Leadership

A three-step process:

• Greek: Charis | Roman : Gratiae • Developing aura of charisma through

• Aglaea (Splendor) a) optimism, b) passion, and c) communication.
• Euphrosyne (Mirth) • Creation of a bond that inspires others to
• Thalia (Good Cheer) follow.
• Bringing out the best by tapping into emotions.
• Characteristics:
• Vision and Articulation The Dark Side:
• Personal Risk
• Sensitivity to Follower Needs • Disastrous Vision
• Unconventional Behaviour • Unwarranted Risks
• Personal Goals over-riding Organizational
Goals