Description
Organizational behavior is a field of study that investigates the impact that individuals, groups and structures have on behavior within an organization for the purpose of applying such knowledge towards improving an organization's effectiveness.[1] It is an interdisciplinary field that includes sociology, psychology, communication, and management
LEADERSHIP
The ability to influence a group toward the achievement of goals is called leadership. THREE MAIN APPROACHES TO LEADERSHIP 1. 2. 3. TRAIT APPROACH (leaders are born and can’t be made) BEHAVIOUR APPROACH (leaders are made if they can learn certain behaviours) CONTINGENCY APPROACH (leaders are made , and what works as leadership in one situation might not work in other)
_______________________________________________________________________ _
RENSIS LIKERT’S FOUR SYSTEMS MANAGEMENT
Rensis Likert became well known for his research on ‘Systems 4’ Leadership styles . Management Styles 1. Exploitive - Authoritative System, where decisions are imposed on subordinates, where motivation is characterized by threats, where high levels of management have great responsibilities but lower levels have virtually none, where there is very little communication and no joint teamwork. Benevolent - Authoritative System, where leadership is by a condescending form of master-servant trust, where motivation is mainly by rewards, where managerial personnel feel responsibility but lower levels do not, where there is little communication and relatively little teamwork. Consultative System, where leadership is by superiors who have substantial but not complete trust in their subordinates, where motivation is by rewards and some involvement, where a high proportion of personnel, especially those at the higher levels feel responsibility for achieving organization goals, where there is some communication (both vertical and horizontal) and a moderate amount of teamwork.
2.
3.
4.
Participative - Group System, which is the optimum solution, where leadership is by superiors who have; complete confidence in their subordinates, where motivation is by economic rewards based on goals which have been set in participation, where personnel at all levels feel real responsibility for the organizational goals, where there is much communication, and a substantial amount of cooperative teamwork.
This fourth system is the one which is the ideal for the profit oriented and humanconcerned organization, and Likert says (The Human Organization, Mcgraw Hill, 1967) that all organizations should adopt this system. Clearly, the changes involved may be painful and long-winded, but it is necessary if one is to achieve the maximum rewards for the organization. Rensis Likert on the basis of the responses found that “quite consistently, high producing units fall under system 3 and 4” and “low producing units fall under system 1 and 2”. ______________________________________________________________________ LEADERSHIP BEHAVIOUR CONTINUUM The leadership continuum was originally written in 1958 by Tannenbaum and Schmidt and was later updated in the year 1973. Their work suggests a continuum of possible leadership behavior available to a manager and along which many leadership styles may be placed. The continuum represents a range of action related to the: • Degree of authority used by the manager • Area of freedom available to non-managers A broad range of leadership styles have been depicted on the continuum between two extremes of autocratic and free rein. The left side shows a style where control is maintained by a manager and the right side shows the release of control. However, neither extreme is absolute and authority and freedom are never without their limitations. The Tannenbaum and Schmidt continuum can be related to McGregor’s supposition of Theory X and Theory Y. Boss-centered leadership is towards theory X and subordinatecentered leadership is towards theory Y.
Figure 1: Continuum Leadership Behaviuor.
A manager is characterized according to degree of control that is maintained by him. 1. Manager takes decision and announces it – only manager plays the decision-making role; no team involvement 2. Manager decides and then “Sells” his decision to the team – no change in decision; but team may raise some concerns 3. Manager presents decision with background ideas for the decision and invite questions – team knows what options manager considered for his decision; more team involvement 4. Manager suggests provisional decision & invites discussion regarding the decision – team can have a say on manager’s decision; it can be changed based on discussion 5. Manager presents the problem or situation, get suggestions, then decides – team is free to come up with options; manager decides on those options 6. Manager explains the situation or problem, defines the parameters and asks team to decide on the solution – manager delegated whole thing to the team; but still manager is accountable for the outcome
7. Manager allows team to develop options and decide on the action, within the manager’s received limit – complete freedom level; team does all the work almost as what the manager does at level 1. According to Tannenbaum and Schmidt, if one has to make a choice of the leadership style which is practicable and desirable, then his answer will depend upon the following three factors:
•
Forces in the Manager: The behavior of the leader is influenced by his personality, background, knowledge, and experience. These forces include: i. Value systems ii. Confidence in subordinates iii. Leadership inclinations iv. Feelings of security in an uncertain situation Forces in the subordinate: The personality of the subordinates and their expectations from the leader influences their behavior. The factors include: i. Readiness to assume responsibility in decision-making ii. Degree of tolerance for ambiguity iii. Interest in the problem and feelings as to its importance iv. Strength of the needs for independence v. Knowledge and experience to deal with the problem vi. Understanding and identification with the goals of the organization If these factors are on a positive side, then more freedom can be allowed to the subordinate by the leader.
•
•
Forces in the situation: The environmental and general situations also affect the leader’s behavior. These include factors like: i. Type of organization ii. Group effectiveness iii. Nature of the problem iv. Time pressure
When the authors updated their work in1973, they suggested a new continuum of patterns of leadership behavior. In this, the total area of freedom shared between managers and non-managers is redefined constantly by interactions between them and the environmental forces. This pattern was, however, more complex in comparison to the previous one.
Conclusion – According to Tannenbaum and Schmidt, successful leaders know which behavior is the most appropriate at a particular time. They shape their behavior after a careful analysis of self, their subordinates, organization, and environmental factors.
NEO-CHARISMATIC THEORIES OF LEADERSHIP
These include – Charismatic theory, Transformational theory and Visionary Leadership These theories have 3 common themes - : a) They stress symbolic and emotionally appealing leader beavhiours. b) They achieve extra-ordinary levels of follower commitment. c) They de-emphasize theoretical complexity and look at leadership like an average person.
CHARISMATIC LEADERSHIP
Followers make attributions of heroic or extra ordinary leadership abilities when they observe behaviour. Five characteristics of Charismatic leadership have been documented – a) They have a vision or idealized goals and are able to articulate the same. b) They are ready to take risks to achieve that vision. c) They are sensitive to environmental constraints. d) They are sensitive to followers’ needs. e) They exhibit behaviours that are extra-ordinary and unconventional. How do they influence Followers? The evidence suggests a four-step process. 1) Leaders articulate an appealing vision. This vision provides a sense of continuity for followers by linking the present with a better future for the organization. 2) The leader then communicates high performance expectations and expresses confidence that followers can attain them. (Self-efficacy) This enhances their selfesteem and self-confidence. 3) The leader conveys through words and actions, a new set of values and by, his or her behaviour sets an example for followers to imitate. 4) Finally, the leader makes self-sacrifices and engages in unconventional behaviour to demonstrate courage and conviction about the vision. Vision includes inspirational possibilities that are value-centred, realizable, with superior imagery and articulation. Effect of Charismatic leaders on followers : People working for a Charismatic leader are motivated to exert extra work effort (performance) and because they like/respect him, they have greater satisfaction.
Are charismatic leaders BORN OR MADE ? Although a few researchers believe that Charisma is inborn and can’t be learned, most experts believe that individuals can be trained to show charismatic behaviours. These behaviours could be learned through the following 3 steps – a) An individual needs to develop an aura of charisma by maintaining an optimistic view and enthusiasm and by communicating with the whole body and not just words. b) By creating a bond that inspires others to follow. c) By bringing out the potentials in followers by tapping into their emotions.
This approach seems to work as based on the research findings wherein the undergraduate business students were asked to ‘play’ charismatic. These students were taught the above qualities – articulating vision, communicating high performance goals, exhibiting confidence, and empathizing with the followers, use non-verbal cues, maintain eye contact, show strong facial expressions etc. The researchers found that these students could actually project charisma after the training.
However, charisma may not show effectiveness in all situations. Charisma appears to be most appropriate – a) when the followers’ task has an idealogical component or b) when the environment involves a high degree of stress and uncertainty. Hence charismatic leaders are more likely to be in politics, religion, wartime or during the birth or crisis in organizations. Eg – Franklin Roosevelt in the 1930s to get Americans out of the Great Depression, Steve Jobs during crisis in Apple in 1997 and Lee Iacocca to reinvent Chrysler Corp. in 1970s when it was on the verge of bankrupsy.
TRANSFORMATIONAL LEADERSHIP
Research shows that there is a difference between TRANSACTIONAL LEADERSHIP AND TRANSFORMATIONAL LEADERSHIP. Transactional Leaders are those who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Earlier theories like Ohio State Studies, Fielder’s Model, Path-goal theory and the leader-participation model have concern for transactional leaders. Transactional leaders have the following characteristics: 1. Contingent rewards – they give rewards for good performance, recognize accomplishment.
2. Management by exception (Active) – watches and searches for deviations from rules and standards and then takes corrective actions. 3. Management by exception (Passive) – intervenes only when the standards do not meet 4. Laissez faire – avoids decision making and responsibility taking. Transformational leaders are those who inspire followers to transcend their own selfinterests and who are capable of having a profound and extraordinary effect on followers. They pay attention to the concerns and developmental needs of individual followers; they excite, arouse and inspire followers for extra efforts. They are innovative, bring about changes, may be responsible for big-strategic moves like diversification, modernization, mergers and acquisitions, takeovers etc. They change follower’s awareness levels by helping them look at old problems in newer ways. Eg- Richard Branson of Virgin Airlines, Lalu Prasad Yadav as the Railway Minister. Transformational leaders have the following characteristics : 1. Charisma : provides vision and sense of mission, instill pride, trust and respect. 2. Inspiration: communicates high expectations, uses symbols to focus efforts, expresses important purposes. 3. Intellectual Stimulation : promotes intelligence, rationality and careful problem solving. 4. Individualized Consideration : gives personal attention, treats each employee individually, coaches and advises. Transformational leadership is more than transactional leadership as it is able to extract extra efforts and performance from followers; though they should not be treated as opposite approaches. Is transformational leadership more than charisma ? A purely charismatic leader may want followers to adopt the charismatic leader’s view and go no further. While the transformational leader will try to develop thought process and questioning abilities in followers so that they may not just blindly follow the leader but also question the established views of the leaders. For the Charismatic leaders, charisma (influence) is the end goal whereas for the transformational leaders charisma is a mean to achieve the higher end/ goal that is the ‘transformation of organizations or followers’.
VISIONARY LEADERSHIP
Visionary leadership is the ability to create and articulate a realistic, credible, attractive vision of the future for an organization/unit that grows out of and improves upon the present. Vision is something that taps emotions and energy, creates enthusiasm and develops a sense of purpose and energy. Vision must be inspirational, value-based, unique and desirable for organizations. Visionary leaders have three qualities : 1. Ability to explain vision i.e. effective articulation of vision to others through use of verbal and non-verbal language and through task-initiation. 2. Ability to express vision not just verbally but through behaviour and continually reinforcing the behaviour. 3. Ability to sequence the activities (application of vision) in the organization to achieve the goals. _______________________________________________________________________ _
doc_453906894.doc
Organizational behavior is a field of study that investigates the impact that individuals, groups and structures have on behavior within an organization for the purpose of applying such knowledge towards improving an organization's effectiveness.[1] It is an interdisciplinary field that includes sociology, psychology, communication, and management
LEADERSHIP
The ability to influence a group toward the achievement of goals is called leadership. THREE MAIN APPROACHES TO LEADERSHIP 1. 2. 3. TRAIT APPROACH (leaders are born and can’t be made) BEHAVIOUR APPROACH (leaders are made if they can learn certain behaviours) CONTINGENCY APPROACH (leaders are made , and what works as leadership in one situation might not work in other)
_______________________________________________________________________ _
RENSIS LIKERT’S FOUR SYSTEMS MANAGEMENT
Rensis Likert became well known for his research on ‘Systems 4’ Leadership styles . Management Styles 1. Exploitive - Authoritative System, where decisions are imposed on subordinates, where motivation is characterized by threats, where high levels of management have great responsibilities but lower levels have virtually none, where there is very little communication and no joint teamwork. Benevolent - Authoritative System, where leadership is by a condescending form of master-servant trust, where motivation is mainly by rewards, where managerial personnel feel responsibility but lower levels do not, where there is little communication and relatively little teamwork. Consultative System, where leadership is by superiors who have substantial but not complete trust in their subordinates, where motivation is by rewards and some involvement, where a high proportion of personnel, especially those at the higher levels feel responsibility for achieving organization goals, where there is some communication (both vertical and horizontal) and a moderate amount of teamwork.
2.
3.
4.
Participative - Group System, which is the optimum solution, where leadership is by superiors who have; complete confidence in their subordinates, where motivation is by economic rewards based on goals which have been set in participation, where personnel at all levels feel real responsibility for the organizational goals, where there is much communication, and a substantial amount of cooperative teamwork.
This fourth system is the one which is the ideal for the profit oriented and humanconcerned organization, and Likert says (The Human Organization, Mcgraw Hill, 1967) that all organizations should adopt this system. Clearly, the changes involved may be painful and long-winded, but it is necessary if one is to achieve the maximum rewards for the organization. Rensis Likert on the basis of the responses found that “quite consistently, high producing units fall under system 3 and 4” and “low producing units fall under system 1 and 2”. ______________________________________________________________________ LEADERSHIP BEHAVIOUR CONTINUUM The leadership continuum was originally written in 1958 by Tannenbaum and Schmidt and was later updated in the year 1973. Their work suggests a continuum of possible leadership behavior available to a manager and along which many leadership styles may be placed. The continuum represents a range of action related to the: • Degree of authority used by the manager • Area of freedom available to non-managers A broad range of leadership styles have been depicted on the continuum between two extremes of autocratic and free rein. The left side shows a style where control is maintained by a manager and the right side shows the release of control. However, neither extreme is absolute and authority and freedom are never without their limitations. The Tannenbaum and Schmidt continuum can be related to McGregor’s supposition of Theory X and Theory Y. Boss-centered leadership is towards theory X and subordinatecentered leadership is towards theory Y.
Figure 1: Continuum Leadership Behaviuor.
A manager is characterized according to degree of control that is maintained by him. 1. Manager takes decision and announces it – only manager plays the decision-making role; no team involvement 2. Manager decides and then “Sells” his decision to the team – no change in decision; but team may raise some concerns 3. Manager presents decision with background ideas for the decision and invite questions – team knows what options manager considered for his decision; more team involvement 4. Manager suggests provisional decision & invites discussion regarding the decision – team can have a say on manager’s decision; it can be changed based on discussion 5. Manager presents the problem or situation, get suggestions, then decides – team is free to come up with options; manager decides on those options 6. Manager explains the situation or problem, defines the parameters and asks team to decide on the solution – manager delegated whole thing to the team; but still manager is accountable for the outcome
7. Manager allows team to develop options and decide on the action, within the manager’s received limit – complete freedom level; team does all the work almost as what the manager does at level 1. According to Tannenbaum and Schmidt, if one has to make a choice of the leadership style which is practicable and desirable, then his answer will depend upon the following three factors:
•
Forces in the Manager: The behavior of the leader is influenced by his personality, background, knowledge, and experience. These forces include: i. Value systems ii. Confidence in subordinates iii. Leadership inclinations iv. Feelings of security in an uncertain situation Forces in the subordinate: The personality of the subordinates and their expectations from the leader influences their behavior. The factors include: i. Readiness to assume responsibility in decision-making ii. Degree of tolerance for ambiguity iii. Interest in the problem and feelings as to its importance iv. Strength of the needs for independence v. Knowledge and experience to deal with the problem vi. Understanding and identification with the goals of the organization If these factors are on a positive side, then more freedom can be allowed to the subordinate by the leader.
•
•
Forces in the situation: The environmental and general situations also affect the leader’s behavior. These include factors like: i. Type of organization ii. Group effectiveness iii. Nature of the problem iv. Time pressure
When the authors updated their work in1973, they suggested a new continuum of patterns of leadership behavior. In this, the total area of freedom shared between managers and non-managers is redefined constantly by interactions between them and the environmental forces. This pattern was, however, more complex in comparison to the previous one.
Conclusion – According to Tannenbaum and Schmidt, successful leaders know which behavior is the most appropriate at a particular time. They shape their behavior after a careful analysis of self, their subordinates, organization, and environmental factors.
NEO-CHARISMATIC THEORIES OF LEADERSHIP
These include – Charismatic theory, Transformational theory and Visionary Leadership These theories have 3 common themes - : a) They stress symbolic and emotionally appealing leader beavhiours. b) They achieve extra-ordinary levels of follower commitment. c) They de-emphasize theoretical complexity and look at leadership like an average person.
CHARISMATIC LEADERSHIP
Followers make attributions of heroic or extra ordinary leadership abilities when they observe behaviour. Five characteristics of Charismatic leadership have been documented – a) They have a vision or idealized goals and are able to articulate the same. b) They are ready to take risks to achieve that vision. c) They are sensitive to environmental constraints. d) They are sensitive to followers’ needs. e) They exhibit behaviours that are extra-ordinary and unconventional. How do they influence Followers? The evidence suggests a four-step process. 1) Leaders articulate an appealing vision. This vision provides a sense of continuity for followers by linking the present with a better future for the organization. 2) The leader then communicates high performance expectations and expresses confidence that followers can attain them. (Self-efficacy) This enhances their selfesteem and self-confidence. 3) The leader conveys through words and actions, a new set of values and by, his or her behaviour sets an example for followers to imitate. 4) Finally, the leader makes self-sacrifices and engages in unconventional behaviour to demonstrate courage and conviction about the vision. Vision includes inspirational possibilities that are value-centred, realizable, with superior imagery and articulation. Effect of Charismatic leaders on followers : People working for a Charismatic leader are motivated to exert extra work effort (performance) and because they like/respect him, they have greater satisfaction.
Are charismatic leaders BORN OR MADE ? Although a few researchers believe that Charisma is inborn and can’t be learned, most experts believe that individuals can be trained to show charismatic behaviours. These behaviours could be learned through the following 3 steps – a) An individual needs to develop an aura of charisma by maintaining an optimistic view and enthusiasm and by communicating with the whole body and not just words. b) By creating a bond that inspires others to follow. c) By bringing out the potentials in followers by tapping into their emotions.
This approach seems to work as based on the research findings wherein the undergraduate business students were asked to ‘play’ charismatic. These students were taught the above qualities – articulating vision, communicating high performance goals, exhibiting confidence, and empathizing with the followers, use non-verbal cues, maintain eye contact, show strong facial expressions etc. The researchers found that these students could actually project charisma after the training.
However, charisma may not show effectiveness in all situations. Charisma appears to be most appropriate – a) when the followers’ task has an idealogical component or b) when the environment involves a high degree of stress and uncertainty. Hence charismatic leaders are more likely to be in politics, religion, wartime or during the birth or crisis in organizations. Eg – Franklin Roosevelt in the 1930s to get Americans out of the Great Depression, Steve Jobs during crisis in Apple in 1997 and Lee Iacocca to reinvent Chrysler Corp. in 1970s when it was on the verge of bankrupsy.
TRANSFORMATIONAL LEADERSHIP
Research shows that there is a difference between TRANSACTIONAL LEADERSHIP AND TRANSFORMATIONAL LEADERSHIP. Transactional Leaders are those who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Earlier theories like Ohio State Studies, Fielder’s Model, Path-goal theory and the leader-participation model have concern for transactional leaders. Transactional leaders have the following characteristics: 1. Contingent rewards – they give rewards for good performance, recognize accomplishment.
2. Management by exception (Active) – watches and searches for deviations from rules and standards and then takes corrective actions. 3. Management by exception (Passive) – intervenes only when the standards do not meet 4. Laissez faire – avoids decision making and responsibility taking. Transformational leaders are those who inspire followers to transcend their own selfinterests and who are capable of having a profound and extraordinary effect on followers. They pay attention to the concerns and developmental needs of individual followers; they excite, arouse and inspire followers for extra efforts. They are innovative, bring about changes, may be responsible for big-strategic moves like diversification, modernization, mergers and acquisitions, takeovers etc. They change follower’s awareness levels by helping them look at old problems in newer ways. Eg- Richard Branson of Virgin Airlines, Lalu Prasad Yadav as the Railway Minister. Transformational leaders have the following characteristics : 1. Charisma : provides vision and sense of mission, instill pride, trust and respect. 2. Inspiration: communicates high expectations, uses symbols to focus efforts, expresses important purposes. 3. Intellectual Stimulation : promotes intelligence, rationality and careful problem solving. 4. Individualized Consideration : gives personal attention, treats each employee individually, coaches and advises. Transformational leadership is more than transactional leadership as it is able to extract extra efforts and performance from followers; though they should not be treated as opposite approaches. Is transformational leadership more than charisma ? A purely charismatic leader may want followers to adopt the charismatic leader’s view and go no further. While the transformational leader will try to develop thought process and questioning abilities in followers so that they may not just blindly follow the leader but also question the established views of the leaders. For the Charismatic leaders, charisma (influence) is the end goal whereas for the transformational leaders charisma is a mean to achieve the higher end/ goal that is the ‘transformation of organizations or followers’.
VISIONARY LEADERSHIP
Visionary leadership is the ability to create and articulate a realistic, credible, attractive vision of the future for an organization/unit that grows out of and improves upon the present. Vision is something that taps emotions and energy, creates enthusiasm and develops a sense of purpose and energy. Vision must be inspirational, value-based, unique and desirable for organizations. Visionary leaders have three qualities : 1. Ability to explain vision i.e. effective articulation of vision to others through use of verbal and non-verbal language and through task-initiation. 2. Ability to express vision not just verbally but through behaviour and continually reinforcing the behaviour. 3. Ability to sequence the activities (application of vision) in the organization to achieve the goals. _______________________________________________________________________ _
doc_453906894.doc