Semester 2 Assgn. 2 Personality Traits Of A Leader

ASSIGNMENT 2 [TYPE

Zahid Nazir Roll # AB523655

THE COMPANY ADDRESS]

HUMAN RESOURCE MANAGEMENT PERSONALITY TRAITS OF A LEADER

ZAHID NAZIR Roll No. AB523655 MBA Executive 2nd Semester , Spring 2009

ALLAMA IQBAL OPEN UNIVERSITY, ISLAMABAD C O M M O N W E A L T H O F L E A R N I N G1 E X E C U T I V E M B A P R O G R A M M E

Zahid Nazir Roll # AB523655

LEADERSHIP Concept of Leadership is very important in organizations because leaders are the ones who make things happen. Without leaders, an organization would find it difficult to get things done. Leaders mostly help others to learn – just as a coach would help players play instead of playing himself. This assignment covers the concept of leadership, personality traits of a leader and leadership effectiveness by providing working definitions and by emphasizing the cultural limitations of the concepts. It presents several cultural models that are used throughout the text to explain cross-cultural difference in leadership. There is no universally agreeable definition of leadership. Just go and type “leadership” on Google and you can find more than 123,000,000 different pages of reference on web. It involves influencing attitudes, behaviors, beliefs and feelings of people and believes to be an important topic. Peter Drucker the guru of Management defines Leadership as “The only definition of a leader is someone who has followers." While John C Maxwell defines "leadership is influence - nothing more, nothing less." According to John W. Gardner Leadership is “the process of persuasion and example by which an individual (or leadership team) induces a group to take action that is in accord with the leader’s purpose, or the shared purposes of all.”

2

Zahid Nazir Roll # AB523655

Remember Leadership is a process and not a position. This important process has three important components/ingredients: 1) Leader 2) Followers 3) Situation. These three components play very important role on the process of leadership. Leaders are those persons who are able to influence others and who possess managerial authority. Leadership, then, is the ability to influence a group toward the achievement of goals. Trust is the foundation of leadership. Leaders develop an environment of trust where the organizational members tend to establish a follower-ship with the leader. Who is a leader? A leader is defined as any person who influences individuals and groups/teams within an organization, helps them in the establishment of goals, and guides them toward achievement of those goals, thereby allowing them to be effective. Characteristics of Successful Leaders Effective and successful leaders have certain characteristics. They are good communicators, they motivate others (team members), they are good team builders, solve problems of others and of organizations, they are good listeners and resolve conflicts, anticipate change and mange it within team and organizations, they encourage risk taking by their team members and also to promote the creativities. If you study the life of successful leaders, you can find them a challenger of the process, they inspire a shared vision, enable others to act, they model the way by showing the path, encourage the followers, act as change agent and take followers to the destination.

3

Zahid Nazir Roll # AB523655

Below is a list of leaders of corporate sector who created impression in this world. 1. Bill Gates, co-founder of Microsoft

9. Asa G. Candler Coca-Cola

2. Sam Walton, former CEO of Wal-Mart

10. Michael Dell, founder of Dell Computer

3. Jack Welch, former CEO of General Electric 4. Lee Iacocca, former CEO of Chrysler

11. Andy Grove, former CEO of Intel

5. Steve Jobs, CEO of Apple

13. Jeff Bezos, founder of Amazon.com

6. Walter E. Disney Walt Disney

14. Phil Knight, CEO of Nike

7. Henry Ford Ford Motor

15. Lou Gerstner, former CEO of IBM

8. William C. Procter Procter & Gamble

16. Robert W. Johnson Jr. Johnson & Johnson

12. Ted Turner, founder of CNN

Think of someone in your life whom you would consider as “Leader”. What are the qualities of character that this person has? I try to enlist few important characters that person “leader” may have.. • • • • • • • • • •

Honest, trustworthy Caring Good listener Positive, enthusiastic Planner Consistent Accountable Responsible Connected to the Community Wisdom

• Good role model • Committed • Treats people with respect • Risk taker • Decision Maker • Open • Transparent • Sensitive • Knowledge • Social Skills

4

Zahid Nazir Roll # AB523655

Are we born with these qualities or are they learned behaviors? To some degree we have all of them -- some more so than others. We must choose and work to strengthen these qualities in ourselves if we are to be effective leaders. Do we really need leaders? Consider how life would be different without leadership in e.g. Families, Education, Businesses, Service Associations, Teams, Countries and World.

EFFECTIVE LEADER Leaders’ effectiveness depends on the achievements of group/team goals, when internal processes are smooth and group/team is working as a cohesive team. Effectiveness can also be seen when team/group adapt to external forces. An organization achieves its goals when the leaders of an organization will be more effective. A leader is effective when team/group is effective and vice versa. Leader and followers are both important and depend on each other for effectiveness. Can a leader fail? Yes, some time we see leaders who are not effective or notgood do fail in achieving their goals.

BAD LEADERSHIP This can be defined as: “Bad leadership falls into two categories: bad as in ineffective and bad as in unethical. Ineffective leadership fails to produce the desired change while unethical leadership fails to distinguish between right and wrong.” Barbara Kellerman

5

Zahid Nazir Roll # AB523655

Characteristics of Leaders Who Fail
Rude and unapproachable: if the leader will act rudely and is unapproachable to employee. He will fail to achieve organizational goals because due to his/her this behavior participative environment can not created within organization.
Cold and arrogant: if the leader will be proud of himself, no one wants to work with him. And also if he or she has no feeling about others, nobody will be agreeing to work with this type of arrogant person.
Untrustworthy: without trust, leaders can not perform well in the organization. Teams/Groups/Organizations always grow when they have trust on each others and a trustworthy leader is very essential for the success of a team. If leader is untrustworthy, the probability of his/her failure will be high.
Self-centered and political: if the leader will create or involve in political environment in the organization, he/she will lose the ground because politics can not work in the organization especially if leader is involved in political activities. Especially when a leader is self centered and interested only in personal benefits the result will be a mess and failure and out put will be zero.
Poor performers: Team always depends on its leader. Leader is mentor, role model, coach and sets the example for others. So if the leader of team will be poor performer, team can not achieve the goals.
Unable to delegate: In this competitive environment of participations, the leader must delegate the power and authority to downwards for achieving the organizational goals in more efficient and effective manner. So if the leader will not delegate the power and authority to others or his subordinates, he will lose and that will be the failure of leader.

6

Zahid Nazir Roll # AB523655

LEADERSHIP MANAGERIAL ROLES In this competitive environment the style of management has also changed. Now the organizations are working in more competitive environment, more flat structures, depends on more functional teams lead by a leader. MANAGERIAL ROLES Leaders are managers too but not necessary that all managers are leaders. Leaders need to play managerial role too. Management roles refer to specific categories of managerial behavior. a). Interpersonal roles included figurehead, leadership, and liaison activities.



Figurehead When they represent the organization, signing official document, informally talking to people and attending out side meetings, presiding the meetings and ceremonial events etc they are playing the role of figurehead.



Leader Leader is responsible for giving instruction, coaching, hiring, training, motivating, and evaluating performance etc and these are responsibility of a leader.



Liaison When interacting with people outside their organization, attending professional meetings, serving on committees, visiting and meeting people to keep in touch, all these role are kind of liaison on behalf of his/her team or organization.

b). Informational roles included monitoring, disseminating, and spokesperson activities.

7

Zahid Nazir Roll # AB523655



Monitor Gather information, reading reports, publication etc, talking to others in meeting inside or outside the organization, observing etc.



Disseminator They send information, instruction, orally or written and play the role of disseminator.



Spokesperson Provide information outside the organization, answering queries, letters, reporting information to govt. etc.

c). Decisional roles included those of entrepreneur, disturbance handler, resource allocator and negotiator.



Entrepreneur Good leaders are always famous for innovation and creativity. When innovate and initiate improvement (through monitor), developing new ideas, new product & service, procedures, tools etc



Disturbance handler Taking Corrective action during crises, uncertainty, breakdown, labor issues, strike, material crises, or any others Resource allocator Allocating and distribution of resources (financial, space, equipment, material, HR etc)



Negotiators They represent organization at different levels, with competitors, customers, clients, employees, Govt etc

Leadership and management are closely related but with distinguishable functions. As discussed earlier, leaders are managers but not necessary that all

8

Zahid Nazir Roll # AB523655

managers are leaders. There are distinct differences among them if we compare a leader from a manager. Leaders Vs Managers Leaders

• • • • • • • •

Managers

Innovate

 Administer

Develop

 Maintain

Inspire

 Control

Take the long-term view

 Have a short-term view

Ask what and why

 Ask how and when

Originate

 Imitate

Challenge the status quo

 Accept the status quo

Do the right things

 Do things right

MANAGERS VS LEADERS As said earlier, leaders are manger too but not necessary that all managers may be leaders. Arguments about the difference between leadership and management are presented. Leaders are considered to be visionary and futureoriented, whereas managers focus on day-to-day routine activities. The section concludes that effective managers often perform many of the duties and activities ascribed to leaders thereby making the distinction between the two concepts somewhat unnecessary. Leaders

Managers

Vision oriented: the leaders are vision Process oriented: managers always think oriented and think about future. about process that how the organization works in efficient manner. Protects staff: leaders always protect their Protects self: Managers always protect staff and motivate them towards himself. achievement of organizational goals.

9

Zahid Nazir Roll # AB523655

Approaches decisions actively: the leaders are decision makers and do not hesitate to take decisions in any respect. Staff oriented: leaders are staff oriented.

Approaches decisions cautiously: Managers always depends on his superiors and others to take decisions. Career oriented: managers always think about his career that how he/she moves up or develop his/her career. Listens actively: leaders always involve his Listens selectively: managers always listen staff in decision making and listen every and involve selective staff/employees during body and get the suggestions from decision making. employees seriously. Deals with conflict: leader always deal with Avoids conflict: Managers always avoids conflict as they are critical analyst in the being involved in conflicts. positive way. Trusted: leaders always trust employees/staff and vice versa.

on his Unclear regarding trust: he is unclear regarding trust.

These obvious differences between leaders and managers also affect the processes in the organizations. Difference between leadership and management: Leadership

Management

Set overall & future direction: they set the overall organization direction and give the vision. Focuses on results: A leader always focuses on out put.

Set day-day direction: Mangers sets day by day direction to organization as per circumstances. Focuses on processes: Managers always focuses on processes that how to gets the maximum out put by utilization of minimum resources through reducing in processes of the organization. Mostly internal: Managers always keep the close eyes on internal environment. Concern=efficiency: his concern on efficiency Personnel focused: Here the focus is personal and not on the stakeholders.

Mostly external: leaders mostly keep close eyes on external environment. Concern=effectiveness: his concern effectiveness Stakeholder focused: Leaders focused stake holder’s interest and strive for satisfactions of stakeholders. Customer needs/capacities: thinks about

the on on the

Worker

10

needs/capacities:

thinks

about

Zahid Nazir Roll # AB523655

customers demand Embodies mission/vision: sets the mission and vision Gets more resources: gets more recourse to accomplish the mission. They always try to look for other opportunities. Secures technologies: they protect the technologies. Always keep their eyes open and try to secure new technologies essential to create competitive advantages. Seeks to create needed change: they always seek to create the needed change and believe on “Change as the environment change”. Create teams’ esp. top teams: Leadership is always focused on creating a team especially top performing team. Leader role is act as a coach and convert individual working into teams.

organization capacity for customers demand Embodies goals/objectives: sets the goals and objectives to achieve the mission. Manages resources: a manager always manages the resources. Applies technologies: managers always apply technologies available to them and will not strive for change. Seek stability/Manage change: Management will try to manage the change and prefer to maintain the stability in the organization. Manage teamwork: Management focus is to get things done from people/team and they will try for this.

So, after the detail discussion on difference between leadership and management, we can conclude that in Management we have an authority relationship while leadership is a multidirectional influence relationship. “Jack Welch (Former CEO of GE) says; “…dangerous to call someone a manager” because.. “A manager…” Controls rather than facilitates, Complicates rather than simplifies, Acts more like a governor than an accelerator.

CHARACTERISTICS 1.

Personal Characteristics

A managerial culture emphasizes rationality and control, whether his or her energies are directed towards goals, resources, organization structure. The manager ask, ”What problems need to be solved, and what are the best ways to achieve results, so people will continue to contribute to this organization.

11

Zahid Nazir Roll # AB523655

Management is keeping themselves away from emotions and focus mainly on organization, compliances. They seem to know the procedure and policies required to accomplish the organization routine tasks. From this prospective leadership is more practical and emotionally connected with employees and also with environment. Leadership is more open minded and listen different ideas, ready for change and not only focusing present objectives of the organization but also keep their focus on future too. They are honest with themselves, with followers and with others too. With this honesty and concern with the welfare of others they build trust and that is very essential for leadership process. 2.

Relationships

Leadership always focuses on people, inspire them and develop them to achieve the organizational mission. They use personality powers to influence others and act as coach and facilitators for followers. With their charismatic personality leaders create a dynamic environment within the organization. They also encourage the creativity and focuses on the dynamic environment changes. While management focuses on objective and are mainly concern with outputs, reports and mechanics of the organizations. To influence others, management depends on the position powers and use control rather than motivation. Risk taking is not encouraged and they suppress creativity in the organization. 3.

Providing Direction

Leadership always focuses on vision. Leadership reshapes the organizational culture, motivates the employees, and believes on long term focus. Whether management depends on detailed plan/schedule, allocation of resources, improve the efficiency and focuses ob short term goals.

12

Zahid Nazir Roll # AB523655

4.

Grouping

Leadership always creates the culture of communication and listen each others, help others and facilitate others. They also reduce the boundaries and create the teamwork in organization. Whereas management believe in line and staff management, believe on organization, staff and structure, creates boundaries and focuses on direct and control. Provide solution and guidelines in the organization. 5.

Outcomes

Leadership creates the culture of change and tries to implement change in response to the changing environment for greatest outcome. Leadership challenges the status quo and adopts the change. Believe on effectiveness and efficiency. While management are concern about stability, are more predictable and focus on short term expectations. Believe on day to day outcome and not taking any risk. EFFECTIVE LEADERSHIP Traits desired in a leader are like Integrity, Consistency, Listen and discern needs, Open-minded, Honest w/themselves; Inspire trust, Calm, Stays focused while handling a volatile situation etc.
Trust Trust among leader and followers is the key to success of this leadership process. A trust between the leader and followers is very essential. When trust exists, individuals are more likely to enter into the relationships necessary for goal attainment. Trust: The Foundation of Leadership Leader’s integrity, competency, consistency, loyalty and openness are the key ingredients to build trust.

13

Zahid Nazir Roll # AB523655


A Nurturing Climate All members of the organization must be able to work in a climate that is free of fear, one that fosters creativity and rewarding the achievements. This nurturing climate is also essential for proper leadership process and for the success of a team/group or organization and for the effectiveness of a leader.
Freedom of Expression All employees must be able to talk with one another, share ideas, critique proposals, view issues critically, and obtain information that assists them in being effective and creative. This will only be achieved through creation of participative culture in the organization and freedom to express on procedures, policies etc. Leader needs to create culture that allows freedom of expression.
Respect for Diversity In this competitive environment of business, organization are dealing with diversify culture. Organizations are trying to capitalize this diversity in the organization. Diversity of workforce has huge benefit and yes some cost too. In order to make a commitment to the attainment of a particular goal by capitalizing diversity in the organization/team, they need to respect the diversity and let all people coming from different background to feel valued, respected, and appreciated.
Free and Open for Creativity A leader must create an environment where every one can share his/her ideas and create the awareness that individuals must feel free to seek new approaches, take independent decision and take risks. This will be only done through a congenial environment in the organization, where every one feels free to share his/her idea and are open for creativity.

14

Zahid Nazir Roll # AB523655


Change Agent The leader may act as a change agent, which is an individual who acts as a catalyst and leads the change process. Change is the true reality of the organization. In this competitive business environment, without responding the change no one can survive. “Change as the environment change”.

IMPORTANT TRAITS OF LEADER Leader Traits That Influence the Leadership Process:



Personality is defined as a combination of psychological traits that describes a person. Personality of leader play important role.



Position is defined that one can influence on the group member or in the organization.



Experience is defied as an exposure that he or she have in his field of expertise.

15

Zahid Nazir Roll # AB523655

QUALITIES OF LEADERS Real leaders have certain qualities which make them different from rest of the team members/followers. Few of those qualities are given below: Qualities of a Leader

    

Vision Ability Enthusiasm Stability Concern for others

    

Self Confidence Persistence Vitality Charisma Integrity

Vision: A leader has to have some ideas about his/her organization, about how the future could be different. A leader requires strong sense of purpose and should be clear in concept of collective Vision (Organization) and recognizes what must be done and how to makes strategies for the accomplishment of their vision. Clear concepts about vision can make a leader more focused and effective. Vision about what is happening, what needs to be done and what is coming in future. Ability: Leaders must know about his or her Job and keep knowledge updated and have ability to understand information, formulate strategies, and make the decisions. If leader fails to do all these, employees do not respect him/her, and ultimately leader loses faith and trust. That will be failure of a leader. Followers always look toward leaders when making decision, when they are in problem, or stuck or when things are not working. They will look toward leaders. Even for technical issues, they will look toward leaders for solution. So a leader must have the ability to handle all such issues.

16

Zahid Nazir Roll # AB523655

Enthusiasm: This is also an important trait of leaders. Leaders always create excitements, which causes others to become interested and willing to accept the challenges. Leaders always generate enthusiasm in followers so that this excitement can trigger the goal oriented actions and ultimately followers get motivated and involved in the achievement of the organizational goals. Stability: Stability is another important quality of leaders. Leaders need to be emotionally stable in handling challenges, in decision making and during the time of pressures. During the process of leadership plus and minuses do come and leaders need to face them with courage and unless they have stability in their personality, this will become very difficult. Leaders should possess objectivity, should not bring personal problems to work and be emotionally stable. Concern for Others: Leaders must be concerned always for their followers, with their welfares and don’t treat them as machines. It is always the responsibility of the leaders to think about the welfare of the employees. A leader must have a humble and caring attitude towards employee/followers. So that if he/she always puts the interest of others first, the loyalty will be built, and ultimately the employees will work with more devotion and commitment. Self-Confidence: Self confidence is very important quality one should have. For leaders this will become even more important. All we discussed different leaders qualities above, these are all linked with the self concept. With self confidence, leaders can mange and handle even difficult situations. That is the trait/quality which is appreciated by all concerns. Successful leaders stay calm and confident and show confidence in their actions. Persistence: Determination of a leader is also very important for business success. So, a leader should have the devotion and commitment for business and continuously motivate the employees for achieving the organizational goals. The outgoing approach and persistence approach is always paying and pushing the followers for the accomplishment of goals.

17

Zahid Nazir Roll # AB523655

Vitality: Leaders need strength/energy and stamina. Effective leaders are electric, vigorous, active, and full of life, regardless of age or disability. These qualities energize followers too. To achieve goals, leaders need stamina, energy, health, and vigor. Same is true for followers. Charisma: A Personality Trait. A quality that generates others’ interest and creates followers. To influence others, charisma plays very important role. Integrity: The most important quality of leader is honesty, strength of character, and courage. Leaders need to have strong integrity. So leader must have loyal, honest with his/her work and also with his/her team too. It will also lead to trust and respect. Honesty, strength of character, and courage will always lead to trust building, creating loyalty.

LEADERSHIP THEORIES / APPROACHES Over time, a number of theories of leadership have been proposed. Here are some of the main ideas.


Great Man Theory




Trait Theory




Behavioral Theories Role Theory The Managerial Grid




Participative Leadership Lewin's leadership styles Likert's leadership styles




Situational Leadership Hersey and Blanchard's Situational Leadership

18

Zahid Nazir Roll # AB523655

Vroom and Yetton's Normative Model House's Path-Goal Theory of Leadership


Contingency Theories Fiedler's Least Preferred Co-worker (LPC) Theory Cognitive Resource Theory Strategic Contingencies Theory




Transactional Leadership Leader-Member Exchange (LMX) Theory




Transformational Leadership Bass' Transformational Leadership Theory Burns' Transformational Leadership Theory Kouzes and Posner's Leadership Participation Inventory

REVIEW OF LEADERSHIP THEORIES A review of the leadership literature reveals an evolving series of 'schools of thought' from “Great Man” and “Trait” theories to “Transformational” leadership (see table). Whilst early theories tend to focus upon the characteristics and behaviours of successful leaders, later theories begin to consider the role of followers and the contextual nature of leadership.

Great Man Theories

Trait Theories

Behaviourist Theories

Based on the belief that leaders are exceptional people, born with innate qualities, destined to lead. The use of the term 'man' was intentional since until the latter part of the twentieth century leadership was thought of as a concept which is primarily male, military and Western. This led to the next school of Trait Theories The lists of traits or qualities associated with leadership exist in abundance and continue to be produced. They draw on virtually all the adjectives in the dictionary which describe some positive or virtuous human attribute, from ambition to zest for life These concentrate on what leaders actually do rather than on their qualities. Different patterns of behaviour are observed and categorised as 'styles of leadership'. This area has probably attracted most attention from practising managers

19

Zahid Nazir Roll # AB523655

Situational Leadership

Contingency Theory

Transactional Theory

Transformational Theory

This approach sees leadership as specific to the situation in which it is being exercised. For example, whilst some situations may require an autocratic style, others may need a more participative approach. It also proposes that there may be differences in required leadership styles at different levels in the same organisation This is a refinement of the situational viewpoint and focuses on identifying the situational variables which best predict the most appropriate or effective leadership style to fit the particular circumstances This approach emphasises the importance of the relationship between leader and followers, focusing on the mutual benefits derived from a form of 'contract' through which the leader delivers such things as rewards or recognition in return for the commitment or loyalty of the followers The central concept here is change and the role of leadership in envisioning and implementing the transformation of organisational performance From ‘Great Man’ to ‘Transformational’ Leadership

Each of these theories takes a rather individualistic perspective of the leader, although a school of thought gaining increasing recognition is that of “dispersed” leadership. This approach, with its foundations in sociology, psychology and politics rather than management science, views leadership as a process that is diffuse throughout an organisation rather than lying solely with the formally designated ‘leader’. The emphasis thus shifts from developing ‘leaders’ to developing ‘leaderful’ organisations with a collective responsibility for leadership. Now we will discuss these theories one by one.

1).

GREAT MAN THEORY Assumptions  Leaders are born and not made.  Great leaders will arise when there is a great need.

20

Zahid Nazir Roll # AB523655

Description Early research on leadership was based on the the study of people who were already great leaders. These people were often from the aristocracy, as few from lower classes had the opportunity to lead. This contributed to the notion that leadership had something to do with breeding. The idea of the Great Man also strayed into the mythic domain, with notions that in times of need, a Great Man would arise, almost by magic. This was easy to verify, by pointing to people such as Eisenhower and Churchill, let alone those further back along the timeline, even to Jesus, Moses, Mohammed and the Buddah. Discussion Gender issues were not on the table when the 'Great Man' theory was proposed. Most leaders were male and the thought of a Great Woman was generally in areas other than leadership. Most researchers were also male, and concerns about androcentric bias were a long way from being realized.

2).

TRAIT THEORY Assumptions  People are born with inherited traits.  Some traits are particularly suited to leadership.  People who make good leaders have the right (or sufficient) combination of traits. Description Early research on leadership was based on the psychological focus of the day, which was of people having inherited characteristics or traits. Attention was thus put on discovering these traits, often by studying

21

Zahid Nazir Roll # AB523655

successful leaders, but with the underlying assumption that if other people could also be found with these traits, then they, too, could also become great leaders. Stogdill (1974) identified the following traits and skills as critical to leaders. Traits

Skills

• Adaptable to situations • Alert to social environment • Ambitious and achievement-orientated • Assertive • Cooperative • Decisive • Dependable • Dominant (desire to influence others) • Energetic (high activity level) • Persistent • Self-confident • Tolerant of stress • Willing to assume responsibility

• • • • • •

Clever (intelligent) Conceptually skilled Creative Diplomatic and tactful Fluent in speaking Knowledgeable about group task • Organised (administrative ability) • Persuasive • Socially skilled

McCall and Lombardo (1983) researched both success and failure identified four primary traits by which leaders could succeed or 'derail': 

Emotional stability and composure: Calm, confident and predictable, particularly when under stress.



Admitting error: Owning up to mistakes, rather than putting energy into covering up.



Good interpersonal skills: Able to communicate and persuade others without resort to negative or coercive tactics.

22

Zahid Nazir Roll # AB523655 

Intellectual breadth: Able to understand a wide range of areas, rather than having a narrow (and narrow-minded) area of expertise. Discussion There have been many different studies of leadership traits and they agree only in the general saintly qualities needed to be a leader. For a long period, inherited traits were sidelined as learned and situational factors were considered to be far more realistic as reasons for people acquiring leadership positions. Paradoxically, the research into twins who were separated at birth along with new sciences such as Behavioral Genetics have shown that far more is inherited than was previously supposed. Perhaps one day they will find a 'leadership gene'.

3).

BEHAVIORAL THEORY Assumptions  Leaders can be made, rather than are born.  Successful leadership is based in definable, learnable behavior. Description Behavioral theories of leadership do not seek inborn traits or capabilities. Rather, they look at what leaders actually do. If success can be defined in terms of describable actions, then it should be relatively easy for other people to act in the same way. This is easier to teach and learn then to adopt the more ephemeral 'traits' or 'capabilities'.

23

Zahid Nazir Roll # AB523655

Discussion Behavioral is a big leap from Trait Theory, in that it assumes that leadership capability can be learned, rather than being inherent. This opens the floodgates to leadership development, as opposed to simple psychometric assessment that sorts those with leadership potential from those who will never have the chance. A behavioral theory is relatively easy to develop, as you simply assess both leadership success and the actions of leaders. With a large enough study, you can then correlate statistically significant behaviors with success. You can also identify behaviors which contribute to failure, thus adding a second layer of understanding. a).

ROLE THEORY Assumptions  People define roles for themselves and others based on social learning and reading.  People form expectations about the roles that they and others will play.  People subtly encourage others to act within the role expectations they have for them.  People will act within the roles they adopt. Description We all have internal schemas about the role of leaders, based on what we read, discuss and so on. We subtly send these expectations to our leaders, acting as role senders, for example through the balance of decisions we take upon ourselves and the decisions we leave to the leader. Leaders are influenced by these signals, particularly if they are sensitive to the people around them, and will generally conform to these, playing the leadership role that is put upon them by others. Within organizations, there is much formal and informal information about what the leader's role should be, including 'leadership values', culture, training sessions, modeling by senior managers, and so on. These and more

24

Zahid Nazir Roll # AB523655

(including contextual factors) act to shape expectations and behaviors around leadership. Role conflict can also occur when people have differing expectations of their leaders. It also happens when leaders have different ideas about what they should be doing vs. the expectations that are put upon them. Discussion Role expectations of a leader can vary from very specific to a broad idea within which the leader can define their own style.When role expectations are low or mixed, then this may also lead to role conflict.

b).

THE MANAGERIAL GRID Description Leaders may be concerned for their people and they also must also have some concern for the work to be done. The question is, how much attention to they pay to one or the other? This is a model defined by Blake and Mouton in the early 1960s.

The Managerial Grid

25

Zahid Nazir Roll # AB523655

Discussion This is a well-known grid that uses the Task vs. Person preference that appears in many other studies, such as the Michigan Leadership Studies and the Ohio State Leadership Studies. Many other task-people models and variants have appeared since then. They are both clearly important dimensions, but as other models point out, they are not all there is to leadership and management. The Managerial Grid was the original name. It later changed to the Leadership Grid.

3).

PARTICIPATIVE LEADERSHIP Assumptions  Involvement in decision-making improves the understanding of the issues involved by those who must carry out the decisions.  People are more committed to actions where they have involved in the relevant decision-making.  People are less competitive and more collaborative when they are working on joint goals.  When people make decisions together, the social commitment to one another is greater and thus increases their commitment to the decision.  Several people deciding together make better decisions than one person alone. Style A Participative Leader, rather than taking autocratic decisions, seeks to involve other people in the process, possibly including subordinates, peers, superiors and other stakeholders. Often, however, as it is within the managers' whim to give or deny control to his or her subordinates, most participative activity is within the immediate team. The question of

26

Zahid Nazir Roll # AB523655

how much influence others are given thus may vary on the manager's preferences and beliefs, and a whole spectrum of participation is possible, as in the table below. < Not participative Autocratic decision by leader

Highly participative >

Leader Team proposes proposes decision, leader decision, listens has final to feedback, decision then decides

Joint decision with team as equals

Full delegation of decision to team

There are many varieties on this spectrum, including stages where the leader sells the idea to the team. Another variant is for the leader to describe the 'what' of objectives or goals and let the team or individuals decide the 'how' of the process by which the 'how' will be achieved (this is often called 'Management by Objectives'). The level of participation may also depend on the type of decision being made. Decisions on how to implement goals may be highly participative, whilst decisions during subordinate performance evaluations are more likely to be taken by the manager. Discussion There are many potential benefits of participative leadership, as ndicated in the assumptions, above. This approach is also known as consultation, empowerment, joint decision-making, democratic leadership, Management By Objective (MBO) and power-sharing. Participative Leadership can be a sham when managers ask for opinions and then ignore them. This is likely to lead to cynicism and feelings of betrayal.

27

Zahid Nazir Roll # AB523655

A).

LEWIN'S LEADERSHIP STYLES Description Kurt Lewin and colleagues did leadership decision experiments in 1939 and identified three different styles of leadership, in particular around decisionmaking. Autocratic In the autocratic style, the leader takes decisions without consulting with others. The decision is made without any form of consultation. In Lewin's experiments, he found that this caused the most level of discontent. An autocratic style works when there is no need for input on the decision, where the decision would not change as a result of input, and where the motivation of people to carry out subsequent actions would not be affected whether they were or were not involved in the decision-making. Democratic In the democratic style, the leader involves the people in the decisionmaking, although the process for the final decision may vary from the leader having the final say to them facilitating consensus in the group. Democratic decision-making is usually appreciated by the people, especially if they have been used to autocratic decisions with which they disagreed. It can be problematic when there are a wide range of opinions and there is no clear way of reaching an equitable final decision. Laissez-Faire The laissez-faire style is to minimize the leader's involvement in decisionmaking, and hence allowing people to make their own decisions, although they may still be responsible for the outcome. Laissez-faire works best when people are capable and motivated in making their own decisions, and where there is no requirement for a central coordination, for example in sharing resources across a range of different people and groups.

28

Zahid Nazir Roll # AB523655

Discussion In Lewin et al's experiments, he discovered that the most effective style was Democratic. Excessive autocratic styles led to revolution, whilst under a Laissez-faire approach, people were not coherent in their work and did not put in the energy that they did when being actively led. These experiments were actually done with groups of children, but were early in the modern era and were consequently highly influential. b).

LIKERT'S LEADERSHIP STYLES Description Rensis Likert identified four main styles of leadership, in particular around decision-making and the degree to which people are involved in the decision. Exploitive authoritative In this style, the leader has a low concern for people and uses such methods as threats and other fear-based methods to achieve conformance. Communication is almost entirely downwards and the psychologically distant concerns of people are ignored. Benevolent authoritative When the leader adds concern for people to an authoritative position, a 'benevolent dictatorship' is formed. The leader now uses rewards to encourage appropriate performance and listens more to concerns lower down the organization, although what they hear is often rose-tinted, being limited to what their subordinates think that the boss wants to hear. Although there may be some delegation of decisions, almost all major decisions are still made centrally. Consultative The upward flow of information here is still cautious and rose-tinted to some degree, although the leader is making genuine efforts to listen carefully to ideas. Nevertheless, major decisions are still largely centrally made. Participative At this level, the leader makes maximum use of participative methods, engaging people lower down the organization in decision-making. People

29

Zahid Nazir Roll # AB523655

across the organization are psychologically closer together and work well together at all levels. Discussion This is a classic 1960s view in that it is still very largely top-down in nature, with the cautious addition collaborative elements towards the Utopian final state.

4).

SITUATIONAL LEADERSHIP Assumptions The best action of the leader depends on a range of situational factors. Style When a decision is needed, an effective leader does not just fall into a single preferred style, such as using transactional or transformational methods. In practice, as they say, things are not that simple. Factors that affect situational decisions include motivation and capability of followers. This, in turn, is affected by factors within the particular situation. The relationship between followers and the leader may be another factor that affects leader behavior as much as it does follower behavior. The leaders' perception of the follower and the situation will affect what they do rather than the truth of the situation. The leader's perception of themselves and other factors such as stress and mood will also modify the leaders' behavior. Yukl (1989) seeks to combine other approaches and identifies six variables:

• •

Subordinate effort: the motivation and actual effort expended. Subordinate ability and role clarity: followers knowing what to do and how to do it.

30

Zahid Nazir Roll # AB523655

• • • •

Organization of the work: the structure of the work and utilization of resources. Cooperation and cohesiveness: of the group in working together. Resources and support: the availability of tools, materials, people, etc. External coordination: the need to collaborate with other groups.

Leaders here work on such factors as external relationships, acquisition of resources, managing demands on the group and managing the structures and culture of the group. Discussion Tannenbaum and Schmidt (1958) identified three forces that led to the leader's action: the forces in the situation, the forces in then follower and also forces in the leader. This recognizes that the leader's style is highly variable, and even such distant events as a family argument can lead to the displacement activity of a more aggressive stance in an argument than usual. Maier (1963) noted that leaders not only consider the likelihood of a follower accepting a suggestion, but also the overall importance of getting things done. Thus in critical situations, a leader is more likely to be directive in style simply because of the implications of failure. a).

HERSEY AND BLANCHARD'S SITUATIONAL LEADERSHIP The Hersey-Blanchard Leadership Model also takes a situational perspective of leadership. This model posits that the developmental levels of a leader's subordinates play the greatest role in determining which leadership styles (leader behaviours) are most appropriate. Their theory is based on the amount of direction (task behaviour) and socio-emotional support (relationship behaviour) a leader must provide given the situation and the "level of maturity" of the followers.


Task behaviour is the extent to which the leader engages in spelling out the duties and responsibilities to an individual or group. This behaviour includes telling people what to

31

Zahid Nazir Roll # AB523655

do, how to do it, when to do it, where to do it, and who's to do it. In task behaviour the leader engages in one-way communication.
Relationship behaviour is the extent to which the leader engages in twoway or multi-way communications. This includes listening, facilitating, and supportive behaviours. In relationship behaviour the leader engages in twoway communication by providing socio-emotional support.
Maturity is the willingness and ability of a person to take responsibility for directing his or her own behaviour. People tend to have varying degrees of maturity, depending on the specific task, function, or objective that a leader is attempting to accomplish through their efforts. In summary therefore leader behaviours fall along two continua: Directive Behaviour One-Way Communication Followers' Roles Clearly Communicated Close Supervision of Performance

Supportive Behaviour Two-Way Communication Listening, providing support and encouragement Facilitate interaction Involve follower in decision-making

For Blanchard the key situational variable, when determining the appropriate leadership style, is the readiness or developmental level of the subordinate(s). As a result, four leadership styles result: •Directing: The leader provides clear instructions and specific direction. This style is best matched with a low follower readiness level. • Coaching: The leader encourages two-way communication and helps build confidence and motivation on the part of the employee, although the leader still has responsibility and controls decision making. Selling style is best matched with a moderate follower readiness level. • Supporting: With this style, the leader and followers share decision making and no longer need or expect the relationship to be directive. Participating style is best matched with a moderate follower readiness level. • Delegating: This style is appropriate for leaders whose followers are ready to accomplish a particular task and are both competent and motivated to take full responsibility. Delegating style is best matched with a high follower readiness level. To determine the appropriate leadership style to use in a given situation, the leader must first determine the maturity level of the followers in relation to

32

Zahid Nazir Roll # AB523655

the specific task that the leader is attempting to accomplish through the effort of the followers. As the level of followers' maturity increases, the leader should begin to reduce his or her task behaviour and increase relationship behaviour until the followers reach a moderate level of maturity. As the followers begin to move into an above average level of maturity, the leader should decrease not only task behaviour but also relationship behaviour. Once the maturity level is identified, the appropriate leadership style can be determined.

PATH-GOAL THEORY OF LEADERSHIP

b).

The Path-Goal Theory of Leadership was developed to describe the way that leaders encourage and support their followers in achieving the goals they have been set by making the path that they should take clear and easy. In particular, leaders:

• • •

Clarify the path so subordinates know which way to go. Remove roadblocks that are stopping them going there. Increasing the rewards along the route. Leaders can take a strong or limited approach in these. In clarifying the path, they may be directive or give vague hints. In removing roadblocks, they may scour the path or help the follower move the bigger blocks. In increasing rewards, they may give occasional encouragement or pave the way with gold. This variation in approach will depend on the situation, including the follower's capability and motivation, as well as the difficulty of the job and other contextual factors. House and Mitchell (1974) describe four styles of leadership.

33

Zahid Nazir Roll # AB523655

Path-Goal Theory

Discussion Leaders who show the way and help followers along a path are effectively 'leading'. This approach assumes that there is one right way of achieving a goal and that the leader can see it and the follower cannot. This casts the leader as the knowing person and the follower as dependent. It also assumes that the follower is completely rational and that the appropriate methods can be deterministically selected depending on the situation.

5).

CONTINGENCY THEORY Assumptions The leader's ability to lead is contingent upon various situational factors, including the leader's preferred style, the capabilities and behaviors of followers and also various other situational factors.

34

Zahid Nazir Roll # AB523655

Description Contingency theories are a class of behavioral theory that contend that there is no one best way of leading and that a leadership style that is effective in some situations may not be successful in others. An effect of this is that leaders who are very effective at one place and time may become unsuccessful either when transplanted to another situation or when the factors around them change. This helps to explain how some leaders who seem for a while to have the 'Midas touch' suddenly appear to go off the boil and make very unsuccessful decisions. Discussion Contingency theory is similar to situational theory in that there is an assumption of no simple one right way. The main difference is that situational theory tends to focus more on the behaviors that the leader should adopt, given situational factors (often about follower behavior), whereas contingency theory takes a broader view that includes contingent factors about leader capability and other variables within the situation.

a).

FIEDLER'S LEAST PREFERRED CO-WORKER (LPC) THEORY Assumptions  Leaders prioritize between task-focus and people-focus.  Relationships, power and task structure are the three key factors that drive effective styles. Description Fiedler identified the a Least Preferred Co-Worker scoring for leaders by asking them first to think of a person with which they worked that they would like least to work with again, and then to score the person on a range of scales

35

Zahid Nazir Roll # AB523655

between positive factors (friendly, helpful, cheerful, etc.) and negative factors (unfriendly, unhelpful, gloomy, etc.). A high LPC leader generally scores the other person as positive and a low LPC leader scores them as negative. High LPC leaders tend to have close and positive relationships and act in a supportive way, even prioritizing the relationship before the task. Low LPC leaders put the task first and will turn to relationships only when they are satisfied with how the work is going. Three factors are then identified about the leader, member and the task, as follows:

• • •

Leader-Member Relations: The extent to which the leader has the support and loyalties of followers and relations with them are friendly and cooperative. Task structure: The extent to which tasks are standardised, documented and controlled. Leader's Position-power: The extent to which the leader has authority to assess follower performance and give reward or punishment.

The best LPC approach depends on a combination of there three. Generally, a high LPC approach is best when leader-member relations are poor, except when the task is unstructured and the leader is weak, in which a low LPC style is better.

#

Leader-Member Relations

Task structure

Leader's Positionpower

Most Effective leader

1

Good

Structured

Strong

Low LPC

2

Good

Structured

Weak

Low LPC

3

Good

Unstructured

Strong

Low LPC

4

Good

Unstructured

Weak

High LPC

5

Poor

Structured

Strong

High LPC

6

Poor

Structured

Weak

High LPC

7

Poor

Unstructured

Strong

High LPC

8

Poor

Unstructured

Weak

Low LPC

36

Zahid Nazir Roll # AB523655

Discussion This approach seeks to identify the underlying beliefs about people, in particular whether the leader sees others as positive (high LPC) or negative (low LPC). The neat trick of the model is to take someone where it would be very easy to be negative about them. This is another approach that uses taskvs. people-focus as a major categorisation of the leader's style.

b).

COGNITIVE RESOURCE THEORY Assumptions  Intelligence and experience and other cognitive resources are factors in leadership success.  Cognitive capabilities, although significant are not enough to predict leadership success.  Stress impacts the ability to make decisions. Description Cognitive Resource Theory predicts that: 1. A leader's cognitive ability contributes to the performance of the team only when the leader's approach is directive. When leaders are better at planning and decision-making, in order for their plans and decisions to be implemented, they need to tell people what to do, rather than hope they agree with them. When they are not better than people in the team, then a non-directive approach is more appropriate, for example where they facilitate an open discussion where the ideas of team can be aired and the best approach identified and implemented. 2. Stress affects the relationship between intelligence and decision quality. When there is low stress, then intelligence is fully functional and makes an optimal contribution. However, during high stress, a natural intelligence not only makes no difference, but it may also have a negative effect. One reason for this may be that an intelligent person seeks rational solutions, which may not be available (and may be one of the causes of stress). In such situations, a leader who is inexperienced in 'gut feel' decisions is forced to rely on this

37

Zahid Nazir Roll # AB523655

unfamiliar approach. Another possibility is that the leader retreats within him/herself, to think hard about the problem, leaving the group to their own devices. 3. Experience is positively related to decision quality under high stress. When there is a high stress situation and intelligence is impaired, experience of the same or similar situations enables the leader to react in appropriate ways without having to think carefully about the situation. Experience of decision-making under stress also will contribute to a better decision than trying to muddle through with brain-power alone. 4. For simple tasks, leader intelligence and experience is irrelevant. When subordinates are given tasks which do not need direction or support, then it does not matter how good the leader is at making decisions, because they are easy to make, even for subordinates, and hence do not need any further support. Discussion CRT arose out of dissatisfaction with Trait Theory. Fiedler also linked CRT with his Least Preferred Co-worker (LPC) Theory, suggesting that high LPC scores are the main drivers of directive behavior. A particularly significant aspect of CRT is the principle that intelligence is the main factor in low-stress situations, whilst experience counts for more during high-stress moments.

6).

TRANSACTIONAL LEADERSHIP Assumptions  People are motivated by reward and punishment.  Social systems work best with a clear chain of command.  When people have agreed to do a job, a part of the deal is that they cede all authority to their manager.  The prime purpose of a subordinate is to do what their manager tells them to do.

38

Zahid Nazir Roll # AB523655

Style The transactional leader works through creating clear structures whereby it is clear what is required of their subordinates, and the rewards that they get for following orders. Punishments are not always mentioned, but they are also well-understood and formal systems of discipline are usually in place. The early stage of Transactional Leadership is in negotiating the contract whereby the subordinate is given a salary and other benefits, and the company (and by implication the subordinate's manager) gets authority over the subordinate. When the Transactional Leader allocates work to a subordinate, they are considered to be fully responsible for it, whether or not they have the resources or capability to carry it out. When things go wrong, then the subordinate is considered to be personally at fault, and is punished for their failure (just as they are rewarded for succeeding). The transactional leader often uses management by exception, working on the principle that if something is operating to defined (and hence expected) performance then it does not need attention. Exceptions to expectation require praise and reward for exceeding expectation, whilst some kind of corrective action is applied for performance below expectation. Whereas Transformational Leadership has more of a 'selling' style, Transactional Leadership, once the contract is in place, takes a 'telling' style. Discussion Transactional leadership is based in contingency, in that reward or punishment is contingent upon performance.

39

Zahid Nazir Roll # AB523655

Despite much research that highlights its limitations, Transactional Leadership is still a popular approach with many managers. Indeed, in the Leadership vs. Management spectrum, it is very much towards the management end of the scale. The main limitation is the assumption of 'rational man', a person who is largely motivated by money and simple reward, and hence whose behavior is predictable. The underlying psychology is Behaviorism, including the Classical Conditioning of Pavlov and Skinner's Operant Conditioning. These theories are largely based on controlled laboratory experiments (often with animals) and ignore complex emotional factors and social values. In practice, there is sufficient truth in Behaviorism to sustain Transactional approaches. This is reinforced by the supply-and-demand situation of much employment, coupled with the effects of deeper needs, as in Maslow's Hierarchy. When the demand for a skill outstrips the supply, then Transactional Leadership often is insufficient, and other approaches are more effective.

7).

TRANSFORMATIONAL LEADERSHIP Assumptions  People will follow a person who inspires them.  A person with vision and passion can achieve great things.  The way to get things done is by injecting enthusiasm and energy. Style Working for a Transformational Leader can be a wonderful and uplifting experience. They put passion and energy into everything. They care about you and want you to succeed.

40

Zahid Nazir Roll # AB523655

Developing the vision Transformational Leadership starts with the development of a vision, a view of the future that will excite and convert potential followers. This vision may be developed by the leader, by the senior team or may emerge from a broad series of discussions. The important factor is the leader buys into it, hook, line and sinker. Selling the vision The next step, which in fact never stops, is to constantly sell the vision. This takes energy and commitment, as few people will immediately buy into a radical vision, and some will join the show much more slowly than others. The Transformational Leader thus takes every opportunity and will use whatever works to convince others to climb on board the bandwagon. In order to create followers, the Transformational Leader has to be very careful in creating trust, and their personal integrity is a critical part of the package that they are selling. In effect, they are selling themselves as well as the vision. Finding the way forwards In parallel with the selling activity is seeking the way forward. Some Transformational Leaders know the way, and simply want others to follow them. Others do not have a ready strategy, but will happily lead the exploration of possible routes to the promised land. The route forwards may not be obvious and may not be plotted in details, but with a clear vision, the direction will always be known. Thus finding the way forward can be an ongoing process of course correction, and the Transformational Leader will accept that there will be failures and blind canyons along the way. As long as they feel progress is being made, they will be happy.

41

Zahid Nazir Roll # AB523655

Leading the charge The final stage is to remain up-front and central during the action. Transformational Leaders are always visible and will stand up to be counted rather than hide behind their troops. They show by their attitudes and actions how everyone else should behave. They also make continued efforts to motivate and rally their followers, constantly doing the rounds, listening, soothing and enthusing. It is their unswerving commitment as much as anything else that keeps people going, particularly through the darker times when some may question whether the vision can ever be achieved. If the people do not believe that they can succeed, then their efforts will flag. The Transformational Leader seeks to infect and reinfect their followers with a high level of commitment to the vision. One of the methods the Transformational Leader uses to sustain motivation is in the use of ceremonies, rituals and other cultural symbolism. Small changes get big hurrahs, pumping up their significance as indicators of real progress. Overall, they balance their attention between action that creates progress and the mental state of their followers. Perhaps more than other approaches, they are people-oriented and believe that success comes first and last through deep and sustained commitment. Discussion Whilst the Transformational Leader seeks overtly to transform the organization, there is also a tacit promise to followers that they also will be transformed in some way, perhaps to be more like this amazing leader. In some respects, then, the followers are the product of the transformation.

42

Zahid Nazir Roll # AB523655

Transformational Leaders are often charismatic, but are not as narcissistic as pure Charismatic Leaders, who succeed through a belief in themselves rather than a belief in others. One of the traps of Transformational Leadership is that passion and confidence can easily be mistaken for truth and reality. Whilst it is true that great things have been achieved through enthusiastic leadership, it is also true that many passionate people have led the charge right over the cliff and into a bottomless chasm. Just because someone believes they are right, it does not mean they are right. Paradoxically, the energy that gets people going can also cause them to give up. Transformational Leaders often have large amounts of enthusiasm which, if relentlessly applied, can wear out their followers. Transformational Leaders also tend to see the big picture, but not the details, where the devil often lurks. If they do not have people to take care of this level of information, then they are usually doomed to fail. Finally, Transformational Leaders, by definition, seek to transform. When the organization does not need transforming and people are happy as they are, then such a leader will be frustrated. Like wartime leaders, however, given the right situation they come into their own and can be personally responsible for saving entire companies. a).

BASS' TRANSFORMATIONAL LEADERSHIP THEORY Assumptions  Awareness of task importance motivates people.  A focus on the team or organization produces better work. Description Bass defined transformational leadership in terms of how the leader affects followers, who are intended to trust, admire and respect the transformational leader.

43

Zahid Nazir Roll # AB523655

He identified three ways in which leaders transform followers:  Increasing their awareness of task importance and value.  Getting them to focus first on team or organizational goals, rather than their own interests.  Activating their higher-order needs. Charisma is seen as necessary, but not sufficient, for example in the way that charismatic movie stars may not make good leaders. Two key charismatic effects that transformational leaders achieve is to evoke strong emotions and to cause identification of the followers with the leader. This may be through stirring appeals. It may also may occur through quieter methods such as coaching and mentoring. Bass has recently noted that authentic transformational leadership is grounded in moral foundations that are based on four components:    

Idealized influence Inspirational motivation Intellectual stimulation Individualized consideration

...and three moral aspects:  The moral character of the leader.  The ethical values embedded in the leader’s vision, articulation, and program (which followers either embrace or reject).  The morality of the processes of social ethical choice and action that leaders and followers engage in and collectively pursue. This is in contrast with pseudo-transformational leadership, where, for example, in-group/out-group 'us and them' games are used to bond followers to the leader. Discussion In contrast to Burns, who sees transformational leadership as being inextricably linked with higher order values, Bass sees it as amoral, and attributed transformational skills to people such as Adolf Hitler and Jim Jones.

44

Zahid Nazir Roll # AB523655

b).

BURNS' TRANSFORMATIONAL LEADERSHIP THEORY Assumptions  Association with a higher moral position is motivating and will result in people following a leader who promotes this.  Working collaboratively is better than working individually. Description Burns defined transformational leadership as a process where leaders and followers engage in a mutual process of 'raising one another to higher levels of morality and motivation.' Transformational leaders raise the bar by appealing to higher ideals and values of followers. In doing so, they may model the values themselves and use charismatic methods to attract people to the values and to the leader. Burns' view is that transformational leadership is more effective than transactional leadership, where the appeal is to more selfish concerns. An appeal to social values thus encourages people to collaborate, rather than working as individuals (and potentially competitively with one another). He also views transformational leadership as an ongoing process rather than the discrete exchanges of the transactional approach. Discussion Using social and spiritual values as a motivational lever is very powerful as they are both hard to deny and also give people an uplifting sense of being connected to a higher purpose, thus playing to the need for a sense of meaning and identity. Ideals are higher in Maslow's Hierarchy, which does imply that lower concerns such as health and security must be reasonably safe before people will pay serious attention to the higher possibilities.

45

PRACTICAL STUDY OF ORGANISATION

Zahid Nazir Roll No. 523655

GALXOSMITHKLINE COMPANY’S OVERVIEW At GlaxoSmithKline,, we conduct our business with integrity and honesty, and aspire to excellence in all we do. We know our people are vital to the success of the business, and encourage everyone to achieve their maximum potential. We offer a competitive titive benefits package and recognize the need for a healthy balance between work and family life. GlaxoSmithKline welcomes the talent of people from diverse backgrounds to provide the expertise, dedication and imagination to propel us toward a prosperous future. We look for individuals with daring spirits and inquisitive minds who seek a broad range of opportunities for personal and professional growth, and whose efforts are realized in the improved health of people worldwide. GlaxoSmithKline is an exciting organization, which offers a variety of career opportunities. Our recruitment process aims to achieve the highes highest level of candidate care by listening to your interests, and treating you like a valued customer.

47

Zahid Nazir Roll No. 523655

BUSINESS UNITS The organizational structure of GlaxoSmithKline (GSK) is designed to make our company a model for excellence in the pharmaceutical industry - a new company that represents best practice in every way. GSK is a company with the size and scale to invest in the tools we need to succeed, and to drive that success going forward. To achieve that goal, GSK is organized as a flexible company, capable of responding quickly to a rapidly changing marketplace. Organized globally to coordinate activities and gain the benefits of size and scale, the company is built on smaller, smaller, customer-focused customer units, dedicated to delivering medicines that relieve the suffering of patients around the world. The new and innovative model for R&D, the focused structure of our pharmaceutical business throughout the world and the organization of our global services such as IT and Procurement are some of the highlights in the approach which will lead our success.

GSK CONSUMER HEALTHCARE HEALTHC GlaxoSmithKline is a leader in the worldwide consumer healthcare market. With nearly $6 billion in sales, over ten million brands and present in 130 markets, the consumer healthcare business brings an added dynamic dimension to GSK. Operating in the fiercely competitive environment of retail and consumer marketing GlaxoSmithKline Consumer Healthcare brings oral healthcare, hea overthe-counter counter medicines and nutritional healthcare products to millions of people.

48

Zahid Nazir Roll No. 523655

Brand names such as Panadol, Aquafresh toothpaste, Lucozade, Nicorette and Niquitin smoking cessation products are household names around the world. In one year GSK Consumer Healthcare produces - among many others - nine billion tablets to relieve stomach upsets, six billion tablets of pain relief tablets and 600 million tubes of toothpaste. But the driving force behind GlaxoSmithKline's Consumer Healthcare busine business is science. With four dedicated consumer healthcare R&D centers and consumer healthcare regulatory affairs, the business takes scientific innovation as seriously as marketing excellence and offers leading leading-edge edge capability in both.

GSK CORPORATE FUNCTIONS FUNCTI The Corporate business unit within GlaxoSmithKline,, is responsible for leadership, processes, policies, standards and services in the core business areas of Corporate Communications & Global Community Partnerships, Corporate Ethics & Compliance, Finance Finance,, Human Resources and Legal. The functions work individually and in cross cross-functional functional teams across different corporate functions and businesses within GSK. The functions aim to achieve compliance with legal, financial and regulatory frameworks within and outside outside the corporation; protecting, supporting and motivating GSK people and the communities in which they work. They utilize a responsive business infrastructure - combining account management and shared services approaches - to work with GSK's diverse bus businesses. The Corporate functions count among their audiences; employees, communities, media, governments, analysts, institutions and shareholders worldwide.

49

Zahid Nazir Roll No. 523655

GSK INFORMATION TECH TECHNOLOGY In GSK, Information Technology is a business unit, one that is closely integrated with all parts of the company, all around the world. It is organized to take best advantage of global scale when that is appropriate, while supporting GSK people and businesses locally so they have the IT tools they need to succeed.

Global capabilities: Six IT departments provide core services that are required by each of the business units and by GSK at large. These IT departments are: •

• •

•

•

•

Cross Functional Process Design - Ensures that all proposed systems changes have a significant, positive impact impact on the performance of the business processes. Global eBusiness - Develops GSK's commercial capabilities in eBusiness. Global Strategy & Applications - Drives the overall IT strategy of GSK and ensures the IT architecture is coordinated in concert with wit business strategies. Project and Portfolio Management - Builds processes for approving projects, manages project issues as they progress and works with the project management groups to build skills and capabilities. Systems and Communications Services - Builds, deploys and operates the cost effective, flexible, computing and communications infrastructure required by GSK. Risk Management & Security - Identifies and addresses security and other risks resulting from external or internal use of information technology te and computerized information.

IT is supported by six core service teams: Audit, Communications, Finance & Alliances, Human Resources, Legal and Procurement.

50

Zahid Nazir Roll No. 523655

GLOBAL MANUFACTURING AND SUPPLY GSK has 85 manufacturing sites in 37 countries with over 35,000 employees. The sites within the GSK manufacturing network:







supply products to 191 global markets for GSK produce over 1,200 different brands manufacture almost 4 billion packs per year produce over 28,000 different finished packs per year supply around 6,900 tons of bulk active each year manage about 2,000 new product launches globally each year

Production of nutritional products is in excess of 300 million Lucozade/Ribena bottles, 350 million Ribena tetra packs and 20 million Lucozade carbonated cans per year. The annual output of Horlicks is 50 million kilograms, equivalent to about 1,000 million servings. In oral care, the volume of toothpaste manufactured annually exceeds 600 million tubes.

GSK PHARMACEUTICALS You would be forgiven for thinking that a company the size of GlaxoSmithKline - with over 100,000 employees around the world - is only ever concerned with the bottom line. But the truth is that every member of our organization is equally dedicated to helping helpi people around the world Live ive longer, Feel F better and Do more.

51

Zahid Nazir Roll No. 523655

We have a diverse portfolio of brands, as well as a health pipeline of new exciting compounds. Every year GlaxoSmithKline invests approx. $5 billion into research and development. GlaxoSmithKline line is a leader in four major therapeutic areas - anti infectives, central nervous system, respiratory and gastro-intestinal. gastro intestinal. Based on 2004 Annual Results, GSK had sales of $37.2 billion and profit before tax of 11.1 billion. Pharmaceutical sales accounte accounted d 24.8 billion with new products representing 22% of total pharmaceutical sales. This continued success is achieved by being a responsible leader, committed to working with healthcare professionals, listening to patients and responding to a changing environment. nment.

RESEARCH AND DEVELOPMENT DEVELOPMENT (R&D) We live in an exciting moment in the history of biomedical science. Disease is giving up its secrets to the intelligence and dedication of scientists aided by technological marvels that might have been the stuff of science fiction only a generation ago. We have every reason to believe that ahead of us lies accelerating progress against many of the afflictions of humankind. At GlaxoSmithKline, scientists in Research and Development are committed to capturing this moment. nt. They bring to it their own very considerable abilities, the resources of a parent company devoted to the scientific enterprise, and the urgency of knowing that their highest purpose is the relief of human suffering. In pursuit of this purpose, they desire desire to make of GlaxoSmithKline a magnet for others who share their talents, whether as prospective corporate colleagues or as collaborators in industry, academe, and government. Creating a new medicine is a complex business, costing over $324 million and typically ypically taking between 12 and 15 years. Regulatory hurdles are increasingly stringent, yet escalating costs, medical need and the pressure of competition

52

Zahid Nazir Roll No. 523655

demand that the whole process is condensed into as short a time as possible. GSK uses the scale of a huge company to reach its goal of applying science to improve patient health. Equally important is its flexibility, allowing teams of scientists the freedom to take an entrepreneurial approach, and enabling them to move quickly, on the basis of informed decisions. de Once a compound has been identified as a potential drug candidate, it goes through an exacting, rigorous process to prove that the new drug is both safe and effective. Any potential new project not meeting the criteria at any stage is dropped from the company portfolio to make way for other, more promising candidates.

GSK IN TIME






Every second, more than 30 doses of vaccines are distributed by GSK worldwide. Every minute, more than 1,100 prescriptions are written for GSK products worldwide. Every hour, GSK spends more than $450,000 to find new medicines. Every day, more than 200 million people around the world use a GSK brand toothbrush or toothpaste. Every year, GlaxoSmithKline donates more than $138 million in cash and products to communities around aro the world.

GSK employees are each expected to strive for improvement in these key competencies and align themselves with the supportive behaviors. Performance with Integrity - Delivering on promises with organizational and individual trustworthiness. People eople with Passion - People are enabled and motivated to do their best work.

53

Zahid Nazir Roll No. 523655

Innovation & Entrepreneurship - Competitive advantage through wellexecuted ingenuity. Sense of Urgency - A nimble, focused, resilient and fast-learning organization. Everyone Committed, Everyone Contributing- All employees have an opportunity to make a meaningful contribution, and to succeed based on merit. Accountability for Achievement - Clear expectations; focus on the critical few. Performance matters, and will be rewarded. Alignment with GSK Interests - One team, in single-minded pursuit of our mission, reflecting a common spirit and integrated strategies. Develop Self and Others - A norm of career-long learning agility across the organization. Employees continuously learn and develop their professional potential. Leaders have key roles as teachers, coaches and champions of development. WHAT IS DIVERSITY AT GSK? At GSK, we are committed to creating an inclusive environment for our employees, customers, and stakeholders. For employees, it means creating an environment where we value and draw on the differing knowledge, perspectives, experiences, and styles resident in our global community. For customers, it means understanding who they are, what their changing needs are, and how GSK can help them do more, feel better, and live longer. For stakeholders, it means understanding what they prefer, what they require, and how GSK can work most effectively with them.

54

Zahid Nazir Roll No. 523655

What makes GSK a great place to work? We asked some of our current emp employees, loyees, and here's what they said: "There are lots of local companies that would welcome someone of my background and experience. Here, I get the added bonus of knowing that I am contributing to better lives around the world" "The company offers a competit competitive ive salary and excellent benefits. If you analyze the whole package, you'll find that most companies can't beat it" "Through friendly and supportive teams, individual innovation is encouraged and rewarded." "When you have a project there is a real sense of ownership which means things get done" "It's the people within the company that makes it great"

****************

55

Zahid Nazir Roll No. 523655

GALXOSMITHKLINE PAKISTAN LIMITED Overview GlaxoSmithKline Pakistan Limited was created on January 1st 2002 through the merger of SmithKline and French of Pakistan Limited, Beecham Pakistan (Private) Limited and Glaxo Wellcome (Pakistan) Limited- standing today as the largest pharmaceutical company in Pakistan. As a leading international pharmaceutical company we make a real difference to global healthcare and specifically to the developing world. We believe this is both an ethical imperative and key to business success. Companies that respond sensitively and with commitment by changing their business practices to address such challenges will be the leaders of the future. GSK Pakistan operates mainly in two industry segments: Pharmaceuticals (prescription drugs and vaccines) and consumer healthcare (over-the-counter- medicines, oral care and nutritional care). GSK leads the industry in value, volume and prescription market shares. We are proud of our consistency and stability in sales, profits and growth. Some of our key brands include Augmentin, Panadol, Seretide, Betnovate, Zantac and Calpol in medicine and renowned consumer healthcare brands include Horlicks, Aquafresh, Macleans and ENO. In addition, we are also deeply involved with our communities and undertake various Corporate Social Responsibility initiatives including working with the National Commission for Human Development (NCHD) for whom we were one

56

Zahid Nazir Roll No. 523655

of the largest corporate donors. We consider it our responsibility to nurture the environment we operate in and persevere to extend our support to our community in every possible way. GSK participates in year round charitable activities which include organizing medical camps, supporting welfare organizations and donating to/sponsoring various developmental concerns and hospitals. Furthermore, GSK maintains strong partnerships with nongovernment organizations such as Concern for Children, which is also extremely involved in the design, implementation and replication of models for the sustainable development of children with specific emphasis on primary healthcare and education.

************************

57

Zahid Nazir Roll No. 523655

MISSION STATEMENT Excited by the constant search for innovation, we at GSK undertake our enthusiasm of quest with the entrepreneurs. We value performance achieved with integrity. We will attain success as a world class global leader with each and every one of our people contributing with passion and an unmatched sense of urgency. Our mission is to improve the quality of human life by enabling people to do more, feel better and live longer. Quality is at the heart of everything we dofrom the discovery of a molecule to the development of a medicine. **************

58

Zahid Nazir Roll No. 523655

GSK LEADERSHIP Andrew Witty Chief Executive Officer Biography: Andrew Witty was named CEO designate for GSK in October 2007 and assumed the position of Chief Executive Officer on 21 May 2008. He is a member of the Board and Corporate Executive Team and previously held the role of President, Pharmaceuticals Europe, for five years. Andrew joined Glaxo in 1985 and held a variety of roles in the UK business. He was a Sales Representative for the Respiratory business, held a variety of Marketing roles and was Director of Pharmacy and Distribution. He has worked in the Company’s International New Products groups, both in the Respiratory and HIV/Infectious disease fields and has been involved in multiple new product development programmes. In 1993, Andrew was appointed Managing Director of Glaxo South Africa and later Area Director for GlaxoWellcome, South and East Africa. Subsequently he moved to North Carolina as Vice President and General Manager, Marketing for GlaxoWellcome Inc., the group’s US subsidiary. Andrew then moved to Singapore and led the Group’s operations in Asia as Senior Vice President, Asia Pacific prior to his appointment to the Corporate Executive Team as President of GSK Europe in 2003.

59

Zahid Nazir Roll No. 523655

While in Singapore Andrew was a Board Member of the Singapore Economic Development Board, the Singapore Land Authority and in 2003 was awarded the Public Service Medal by the Government of Singapore. Andrew has served in numerous advisory roles to Governments around the world including South Africa, Singapore, Guangzhou China and the UK. Andrew is currently a Non-Executive Director of the UK’s Office for Strategic Co-ordination of Health Research, sits on the Imperial College Commercialization Advisory Board, is a member of the Health Innovation Council and is a member of INSEAD UK Council. He is also a member of the Business Council for Britain, a Board Member of PhRMA, a Vice-President of EFPIA and a Member of the Singapore Economic Development Board's International Advisory Council. Andrew has a Joint Honours BA in Economics from the University of Nottingham. Personality Traits of Andrew Witty Andrew Witty is the youngest CEO in the history of GlaxoSmithKline. There are dozens of personal traits that can affect leadership and some, namely integrity and character, that are absolute but I have observed the following traits in Andrew Witty which makes him a successful man. These traits are:      

Ambition, Drive and tenacity, Self-confidence, Psychological openness, Realism Appetite for learning.

Ambition: A desire to achieve something visible and noteworthy propels individual leaders and their companies to strive to reach their potential.

60

Zahid Nazir Roll No. 523655

Leaders need a healthy dose of it to push themselves and others. But ambition can be blind. That’s when you see leaders making flashy acquisitions that are financially unsound or setting attention-getting goals or taking on more priorities than the organization can handle out of a desire to do everything. Over ambitiousness, combined with a lack of integrity, can lead to undesirable behavior and even corruption. Drive and Tenacity: Some leaders have an inner motor that pushes them to get to the heart of an issue and find solutions. They drill for specific answers and don’t give up until they get them. Their high energy is infectious. They consistently drive their priorities through the organization. They search tenaciously for information they’re missing and keep tweaking their mental models until they arrive at a positioning that works. But drive and tenacity can cause a leader to stick to a plan that isn’t working or to outdated assumptions or an investment that is no longer promising. Self-Confidence: You have to be able to listen to your own inner voice and endure the lonely moments when an important decision falls on your shoulders. You have to be able to speak your mind and act decisively, knowing that you can withstand the consequences. It’s not a matter of acting tough. It’s having a tough inner core, or what some refer to as emotional fortitude. Underlying fears and insecurities can be just as detrimental to your know-hows as can excessive self-confidence in the form of narcissism or arrogance. Some leaders have a need to be liked. They therefore tend to go easy on people. They have an especially hard time dismissing people who have been loyal to them. Such leaders often find their own progress slowed, because they promote people for the wrong reasons, tolerate nonperformers and allow the social system to corrode. A fear of response is also common. Such leaders tend to avoid conflicts and find it hard to challenge people on their performance or point of view. They back off when they should be giving brutally honest feedback and sometimes have a third party do that work for them. Leaders with a fear of failure are

61

Zahid Nazir Roll No. 523655

often indecisive, defensive and less likely to spot opportunities because they’re risk averse. They find it hard to select goals for fear of choosing the wrong ones and wait too long to connect the dots in the external environment or to reposition the business. Self-confidence also affects your use or abuse of power. Every leader has to use power from time to time in assigning tasks, allocating resources, selecting or promoting people, giving differentiated rewards or redirecting dialogue. An excessive fear of failure or fear of response can make a leader uncomfortable using power, and not using power appropriately actually erodes it. Failure to deal with a recalcitrant direct report, for instance, diminishes the leader’s power. On the other hand, narcissistic leaders tend to abuse power, using it irrationally or against the interests of the organization. Psychological Openness: The willingness to allow yourself to be influenced by other people and to share your ideas openly enhances the know-hows, while being psychologically closed can cause problems. Leaders who are psychologically open seek diverse opinions, so they see and hear more and factor a wider range of information into their decisions. Their openness permeates the social system, enhancing candor and communication. Those who are psychologically closed are secretive and afraid to test their ideas, often cloaking that fear under the guise of confidentiality. They’re distant from their direct reports and have no one outside to bounce ideas off or to provide information that counters their own beliefs. In the new environment of complexity, being psychologically closed makes it particularly difficult to reposition the business, because the leader lacks perspectives from diverse disciplines, functions and cultures. Realism: Realism is the mid-point between optimism and pessimism, and the degree to which you tend toward one or the other has a particularly powerful effect on your use of the know-hows. Optimism can lead, for example, to ambitious goals that outstrip the company’s ability to accomplish them or can compromise your judgments of people: “I know his ego has no bounds, but I

62

Zahid Nazir Roll No. 523655

can coach him to become a team player.” But pessimists don’t want to hear ambitious plans or bold initiatives and can find all the flaws and risks in pursuing them when they do. They’re likely to miss opportunities. A realist is open to whatever hand reality deals him. Only the realist wants to get unfiltered information that can be weighed, measured, evaluated and tested to determine what step to take next. He spends time interacting with customers, employees and suppliers, getting information and a “feel” from those constituencies about their thinking. Appetite for Learning: Know-hows improve with exposure to diverse situations with increasing levels of complexity, so an eagerness for new challenges is essential. Leaders who seek out new experiences and learn from them will build their know-hows faster than those who don’t.

**********************

63