The nature of leadership

¶ … Nature of Leadership

What are some guidelines for exercising authority? Reward Power? Coercive Power?

As a result of the various financial scandals over the last decade, like Enron, Tyco, and WorldCom, leadership authority is under scrutiny. Gaining trust and recruiting employees who share in the mission and vision of the company is at the forefront of exercising authority.

According to Peter Drucker, in an interview with Forbes Magazine, successful leaders must make sure that they can succeed. They must place trust in employees and challenge them to apply their strengths. Drucker states "Successful leaders don't start out asking, "What do I want to do?" They ask, "What needs to be done?" Then they ask, "Of those things that would make a difference, which are right for me?" They don't tackle things they aren't good at" (Karlgaard, 2004, p 1) .

Strong leadership involves the ability to be flexible. With an increase in global relationships, advancement of technology, diverse workforces, and the introduction of social networking, an effective leader must acquire the skill to adapt to different personalities and behaviors.

Studies have found that leaders who encourage employee community involvement can motivate and keep employees. In a department of immaterial assets, value similarities appear large. A senior executive of financial services firm states, "It's important to keep the people within my ranks involved and happy in the community to avoid being attracted to move elsewhere. If they have ties with a charity, it's going to be a lot harder for them to uproot and move elsewhere." Community engagement creates exit barriers (Karlgaard, 2004).

When employees feel as valued members of a company, they are motivated Research shows that leaders who encourage community involvement yield a strong return to the company. In a survey by the Conference Board, 77% of companies believe that community involvement programs help the company reach their strategic goals. Many of the United States corporations have been shifting from a traditional charity perspective to "strategic philanthropy," which attempts to integrate corporate donations and community service activities with business operations and interests.

Fostering company values is a powerful tool in shaping employee performance. In that people are not perfect, it is important for leaders to re-evaluate their strategies and listen to subordinates.

In exercising authority in the workplace, leaders must gain the respect and trust of subordinates, be strong communicators and listeners. Leaders must set expectations for subordinates, take control and direct to principles toward showing compassion.

The guide to being an effective and strong leader is to keep an open mind, maintain the operation by developing strategies and setting goals. Subordinates will join in the mission when the avenue of communication is open; employees valued, and can thrive in an enthusiastic and motivating culture.

Which skills are most important at lower, middle, and higher levels of management?

Managers are responsible for managing people. Manager's supervise, coordinate tasks, plan, organize, make decisions, monitor performances, behaviors, and keep current on events and developments of technology. Managerial duties vary by the level of responsibility. Managers make decisions dependent on the demands of the organization. Their choices are crucial in shaping an organization.

A typical manager works long hours. Managers are always readily available to answer questions, direct, authorize, and respond to requests from supervisors, peers, and outside organizations and vendors. Managers have a reactive behavior and often confronted with issues initiated by others.

In an observation study conducted by Henry Mintzberg, an academic and author, in 1973, he defined the different managerial roles of manager; interpersonal, information processing, and decision-making. In that the different roles can apply to all managers, the importance of the role is dependent on the type of manager.

In interpersonal roles, manager operates as a leader when making organizational decisions. They provide guidance, motivate employees, and create a positive culture. The manager acts as a Liaison, by establishing and maintains relationships with organization important to the company. As a figurehead, the manager's presence at meeting or events portrays the formal authority of the position.

Information processing involves researching, accessing, and transmitting data, although decision-making enables a manager to allocate funds, showcase entrepreneur skills, and handle problems.

Organizations have three levels of management, top, middle, and lower. In most organizations, the number of managers at each level is such that the hierarchy is like a pyramid with more first-level managers, fewer middle managers, and less managers at the top.

High-Level managers are senior executives who often hold the title of Chief Executive Officer or Chief Operating Officer. These executives are responsible for making decisions on behalf of an entire organization. Top level managers are highly skilled and versed in management. Some hold master's of business administration (MBA) degrees, while others have worked their way up the ranks.

Middle managers hold managerial positions at a level lower than high level executives. Middle managers delegate responsibilities from high-level executives and often assist in setting company goals by providing feedback from their respective department(s).

Lower-level managers are supervisors and unit leads who interact with employees daily. At this level the supervisor can monitor employee performance, behaviors, and department morale.

The ability to communicate is one of the most important skills to being an effective manager. All managers have constant interaction with their employees, through meetings, memos, conference calls and e-mails.

The role and expectations of a manager is relevant to managers at all levels. The difference lies in the distinct tasks of each manager. Every manager decides how he or she will perform in a manager role. The core requirement for all managers is based on the demands, constraints, and choices that will influence their decisions.

Explain the path-goal theory of leadership (Chapter 8-218-23)

The path-goal theory of leadership examines the relationship among leaders and peers. The theory focuses on effective leadership and its ability to influence and shape the behavior of employees. Based on the types of supervision, and the relationship among leaders and subordinates in carrying out daily tasks, and the effect leaders can have over the performance of subordinates.

Various writers have researched and analyzed different theories that contribute to the role of leadership in motivating employees. The first theory, initiated in 1971 by Robert House, a graduate of Ohio State University, proclaimed that "the motivational function of the leader consists of increasing personal payoffs to subordinates for work-goal attainment and making the path to these payoffs easier to travel by clarifying it, reducing roadblocks and pitfalls, and increasing the opportunities for personal satisfaction en route."

The path-goal theory defines leadership behavior in four categories: supportive, directive, participative, and achievement-oriented leadership. Supportive leadership considers the needs and wants of subordinates, and makes effort to create a pleasant culture in the organization.

Directive leadership refers to a structured environment, whereas, subordinates supervise and monitor with respect to rules, schedules, and procedures. Studies show that leaders who initiate structure rate high by their superiors and maintain productive employees.

Participative leadership maintains an open door policy, where employees are welcome to voice their opinions and made to feel as a valued part of the organization.

Achievement-oriented leadership fosters success, motivation, and challenges.

Supportive leaders tend to have satisfied employees, however; there are mixed views about the satisfaction of employees and the creation of structured environments. Studies show that unskilled and semi-skilled employees resent a structured environment.

When subordinates are dealing with complicated tasks and no formalized training, directive leadership can be rewarding to the employee, the employee is guided, challenged, and rewarded for their efforts.

The path-goal theory recognizes the behaviors of leaders and subordinates with respect to the culture, job, and characteristics of both. The four implied theories suggest that subordinates make a choice about the level of effort they will put into a project based on their individual expectations or rewards.

In that not much research has been done on participative and achievement-oriented leadership, it is noted that the leadership styles increase subordinate effort with complex tasks and clarifies the role of the subordinate while completing a tasks.

The path-goal theory of leadership makes assumptions about the motivation of an employee. The theory assumes that the experience of role ambiguity is stressful and by lessening doubt will result in subordinate fulfillment and performance. "Role ambiguity is experiencing lack of clarity about what is expected of one, how one will be evaluated, and criteria for evaluation" (House, Robert J. 1996). Researchers note that some people prefer non-defined tasks to allow them to challenge their role.

According to House, "Path-goal theory reflects the fact that the leadership scholars of the time were largely trapped in a paradigm of task and person oriented behavior with respect to leadership and a paradigm of cognitive orientation with respect to motivation." Though there were limitations with the path-goal theory, it is concluded that the study led to the charismatic theory, which some debate as a better theory.

What behaviors are usually associated with charismatic leadership? What skills and traits are important for charismatic leaders? (Chapter 9)

In comparison to other leadership theories that that address the effects of leaders on follower, thoughts, and behaviors, charismatic leadership theory is concerned with the effects of leaders on followers' valences, emotions, unconscious motivation, and self-esteem. Charismatic theory has enjoyed considerable support from a number of studies using a wide variety of methods and samples.

Innovative, enthusiastic, extraordinary, confident, and trustworthy words describe a charismatic leader. As noted the path-goal theory was instrumental in the creation of the charismatic theory, a theory inspired by the ideas of a sociologist, Max Weber. Behaviors associated with this theory are fundamental to solving problems in an organization that are associated with a crisis. Leaders develop a vision and enforce the act, therefore gaining the respect and admiration of superiors and subordinates.

Charismatic leaders have followers who share their vision and willing exhibit hard work on their behalf. Charismatic leaders can capture the attention of followers, make them listen and inspire them to achieve.

Robert House published one of the first writings on charismatic leadership. He wrote about the different behaviors and changes of a charismatic leader. House formed a basic view of the influence a charismatic leader has over followers; the desire to dominate and influence, and high self-esteem. In supporting research it was found that "human beings we behave in ways that seek to establish and affirm a sense of identity for ourselves (known as the self-concept). What charismatic leaders do is to tie these self-concepts of followers to the goals and collective experiences associated with their missions so that they become valued aspects of the followers' self-concept (Conger, 1999, p 145).

The theory assumes that charismatic leadership can change follower's ideas and achieve motivation outcomes through four mechanisms; changing follower perceptions of the nature of work itself, offering an appealing future vision, developing a deep collective identity among followers, and heightening both individual and collective self-efficacy (Conger, 1999).

A charismatic leader can communicate effectively to followers; make him or her believe in the organization's vision and the rewards. As a result of the expressions, followers realize their self-worth and efficacy.

A charismatic leader gains followers who not only believe and trust, but also desire to imitate the characteristics. Followers associate his or her self-worth with the confidence and strong energy possessed by such leaders. Reports state that followers claim that their motivation is based on validation from charismatic leaders.

A charismatic leader can speak in a tone that demands attention and influence followers who can articulate an inspirational vision can influence followers to adopt their attitudes and beliefs to help carry out the vision and mission of the company.

Guidelines for transformational leadership?

Though writers use the term transformational and charismatic interchangeably, the distinctive difference is that transformational leadership references ethical behavior. It appeals to what interest the follower. For example, a political leader will make promises to create jobs, reduce taxes and create legislations in turn for campaign support, and corporate leaders provide salaries and benefits to employees in turn for work performed.

Transactional leadership involves honesty, fairness, responsibility, and mutuality. The matter in which leaders influence the values of followers is essential to transformational leadership. According to researcher, Bernard Bass, a leader can be both transformational and transactional. It is his notation that transformational leaders motivate their followers to commit and realize the outcome. Three processes in realizing the outcomes; leaders heighten followers' awareness about the importance and value of designated goals and the means to achieve them; leaders induce followers to transcend their self-interests for the good goals, and they stimulate and meet their followers' needs through the leadership process and mission (Conger, 1999).

According to Bass, there are four behavioral components that make up transformational leadership: charisma; inspiration; intellectual stimulation and individualized consideration. Evidence has shown that transformational leadership does result in improved performance. It also aligns everyone around a common goal. Transformational leadership encourages everyone to challenge and not make assumptions. The need for transformation leadership in organizations includes a board of directors. Bass claims this is his reason for identifying both what is required of boards of successful organizations and how to incorporate into transformational leadership. Bass believed the transactional model worked regardless of the size or location of the organization.

Transformational leadership raises the level of human behavior and ethical aspirations of leaders and followers. Following Enron, Shell, Equitable Life and so on, business needs to assert its ethical standing again to customers and consumers (Venkateswaran, 2007).

Strategies for developing transformation leadership require creating a vision that followers can believe in. If followers can believe in a leader's vision if she or he is inclined to help in achieving those goals for the organization. Articulate a plan for bringing implementing the vision. Anecdotes are used to clarify the vision. Exhibit confidence and enthusiasm about the vision.

Reward followers for any accomplishments they make toward achieving the goal. Symbolize key organizational values. Transformation leaders should reinforce organization goals, model standards.

How important is top level leadership in organizations (2-7)

Top level leadership is important in every organization with respect to enforcing a vision and driving the mission. Top level managers are responsible for making important decisions, planning, and implementing strategies, setting policies and procedures, structuring the organization, and delegating resources to appropriate personnel.

Leadership is based on power and influence. By the term leadership situation, we mean the degree to which the leader has control, power, and influence over the group process and the task outcome (Fiedler, 1967, 1993).

Top level leadership is important to an organization, in that, the leader holds several roles detrimental to the successful operation of the entity. For example, top leaders:

Supervise personnel. They are important to the performance of employee motivation, training, and development.

Budget planning, making short- and long-range plans. Developing operational policies and procedures.

Use sound judgment in making decisions important to the welfare of the organization.

Monitoring internal and external forces that may affect the company.

Creating schedules and cost estimates.

Representing the and maintaining a positive image for the company.

Coordinating

Ensuring that all personnel keep current on technical developments.

The responsibilities of managerial activity describe four general processes; developing and maintaining relationships, obtaining, and providing information, making decisions and influencing people. As corporations progress, leaders focus on personnel staffing, motivating the workforce and coordinating responsibilities. Leaders are responsible for developing the organizations product or services and develop processes to increase the efficiency of operations.

Top leaders guide the organization, and are assertive and decisive in crisis situations. Leaders are important in defining problems, show initiative, identify solutions, and have strong communication skills. Studies show that confident leaders who exert their power are more effective in dealing crisis matters.

How are group decisions affected by the size and composition of the group? (Chapter 11)

In today's work culture teams are effective in brainstorming and collectively developing and managing organization projects. In fact, it is the norm for human resource departments to list 'team-oriented' as a requirement in job descriptions. Teams consist of a group of individuals with specific expertise and skills that all serve a common purpose.

There are different types of teams found in organizations; functional operating teams, cross-functional teams, self-managed and executive teams. Functional operating teams form for long periods, the members are somewhat specialized and team lead is appointed by a superior.