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Management Leadership

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♠ LEADERS AND LEADERSHIP

♦  Management Leadership has become a phenomenon and numerous questions are posed in connection to the leadership and leaders.

♦  More serious study of leadership began in the middle of the last century.

♦  The focus of the study was at features, capabilities, behavior, power sources or aspects of a situation which determine leader’s influence on the followers and achievement of group goals.

♦  Also, the study researched how some people become leaders, and what facts influenced their behavior as leaders.

♦  Leadership has always been an important link in organization’s success, but today, leadership is more vital than ever.

♦  Global and local changes, as well as other factors, require more competent leadership in order for organizations to survive today’s unpredictable environment.

♦  In modern literature, there are numerous definitions of leadership.

♦  Leadership is defined as ‘the process of influencing others to focus their efforts towards achieving specific goal’.

♦  Leaders form the vision and behavior of employees which realize that vision.

♦  According to various authors, there are many definitions of leadership.

♦  Bass defines leadership as the ability to influence, inspire and direct individuals or groups towards the achievement of their goals.

♦  Koontz and Weihrich define leadership as influence, i.e. the art and process of influencing others so that they willingly and enthusiastically tend to achieve group’s objectives.

♦  Cole sees leadership as a dynamic process in the group, by which one person influences the other to voluntarily participate in the achievement of group’s task in a given situation.

♦  According to J. K. Hemphill and A. E. Coons, leadership is behavior of an individual who directs both activity and a group towards a common goal.

♦  For J. A. Conger, leadership is individual characteristics, behavior, influence on other people and a relationships with other people.

♦  S. E. Melendez thinks that leadership first and foremost involves a set of behaviors, which is influenced or even determined by the culture and someone else’s life experience.

♦  Buble sees leadership as the process of influencing the activities of individual or group in their efforts to achieve certain goals in a particular situation.

♦  G. A. Jago sees leadership as a process and as a characteristic.

♦  Leadership, as a process, is the use of non-compulsory influence on the formation of group and organizational goals, the motivation of behavior towards the achievement of these goals and the assistance in the determination of group’s or organization’s culture.

♦  Leadership as a feature is a set of characteristics for denoting those people who are recognized as potential leaders.

♦  Jago believes that leadership is not only a characteristic, but also person’s behavior.

♠ CONTEMPORARY APPROACHES TO LEADERSHIP

♦  Modern approaches to leadership can be approaches based on the characteristics of leader.

♦  The basis of this approach is that leaders are born, not created.

♦  This approach assumes that a property of leadership is innate and that some people are born with special properties which predetermine them.

♦  It does not meet the needs of modern organizations.

♦  It is based on characteristics of leaders, but does not take into account the situation.

♦  This approach can help leaders to get an idea whether they do or do not possess certain qualities which are considered valuable for a leader.

♦  People who have certain qualities that make them leaders in one situation, may not make them leaders in another situation.

♦  In modern organizations, one of the key success factors is the adjustment to different situations and the ability of managing them.

♦  Skills-based approach is focused on the skills and abilities of a successful leader that can be learned and improved.

♦  In this approach, the most important are individual abilities.

♦  The first ability refers to solving problems.

♦  The following ability is associated with social judgement.

♦  The last ability refers to knowledge.

♦  Style-based approach focuses on what leaders do and how they behave.

♦  This approach implies that management consists of two general types of behavior:

behavior focused on task and

behavior focused on relationships.

♦  Style-based approach can be observed in all modern organizations and at all levels, because leaders at all levels are permanently focused on task and relationships.

♠ TYPES OF LEADERS

♦  According to the use of power, there are three types of leaders.

♦  Autocratic leader commands, expects discipline, is positively oriented and leads according to the method of rewards and punishments.

♦  Democratic leader consults with subordinates on proposed actions and decisions and encourages their participation.

♦  ‘Free-hand’ leader either does not use its power at all or very little, giving his/her subordinates high degree of autonomy in their actions.

♦  In modern organizations, the use of any of these three styles depends on the situation.

♦  Therefore, autocratic style is used in situations of great urgency, democratic style can be used when the leader finds important to get opinion and feedback from his/her subordinates and to ensure their precedence, while followers get free hand if leader wants to use their creativity.

♦  Situational approach assumes that different situations require different types of leadership.

♦  Successful leader needs to adapt his/her style according to the demands of different situations.

♦  In order to determine what a particular situation requires, leader needs to assess his/her staff and determine whether they are able and willing to perform a certain task.

♦  Leader also needs to change the level of leadership or support in order to adapt to the changing needs of employees.

♦  Transformational Leadership This method of leadership corresponds to modern working groups, who want to be motivated and strengthened in order to succeed in time of uncertainty.

♦  Transformational leadership is a process that changes people, and includes emotions, values, ethics, standards and long-term goals, as well as the assessment of follower’s motives, satisfaction of their needs and human treatment.

♦  In modern organizations, it is more desirable to use a transformational, and not transactional leadership, because transformational leadership has greater effects.

♦  Laissez-faire leadership or lack of leadership, is the most undesirable situation which can occur in modern organizations.

♦  In this situation, leader does not help the followers in their improvement.

♦  New styles of leadership put the emphasis on leadership styles, which are based on including the employees and giving them freedom to use their capabilities the best they know.

♦  Training is leadership style in which follower gets instructions on how to overcome special organizational problems that arise.

♦  Leader has a role similar to that of coach, he/she recognizes the defective behavior of followers and offers them ways to improve it.

♠ CONCEPT , ROLE AND TASK OF LEADERS

♦  Leaders in organizations are people who influence behavior of others.

♦  Leader’s role in organizations is not always held by managers.

♦  Every manager is not necessarily a leader, but every successful manager must aslo be a leader.

♦  Leaders have very important role in every organization.

♦  All leadership researchers note that. According to one of them, leader performs the following five roles.

♦  He/She teaches by clearly defining the expected performance, encourages learning and learning environment in the organization.

♦  Leader sponsors and develops friendly relations, gives assignments to staff and distributes information.

♦  He/She trains and teaches people how to contribute to organization and actively participate in the work of the organization, as well as he/she develops mutual respect.

♦  Leader advises and supervises the work of employees and gives them clear feedback.

♦  He/She reasonably faces and discusses with employees about sensitive issues, without involving too much emotion.

♦  Responsibilities of leaders in the organization are complex.

♦  In addition to a number of commitments that relate to the goals of the organization, there are duties related to followers.

♦  Leaders in organizations have two groups of tasks.

♦  One group consists of strategic leadership, and the second of operational leadership.

♦  Strategic leadership has two main objectives.

♦  The first relates to the definition of the vision, and the other to the development of the organization.

♦  The vision is related to future issues.

♦  This is one aspect of the problem, while the other one consists of leader’s ability to motivate people to accept and realize that vision.

♦  Leader needs to create and present a vision that is realistic and acceptable.

♦  Leader’s task associated with the development of the organization is to ensure the harmonious development of the organization.

♦  After determining the vision, the next step is to integrate that vision into an appropriate model of the organization.

♦  Operational leadership is a multidimensional process and refers to:

leadership,

gradualism,

creativity,

change,

control,

establishment of new rules and planning.

♠ KEY TRAITS OF LEADERS

♦  There are five key qualities of a leader.

♦  Intelligence is positively associated with leadership.

♦  Expressed verbal ability makes a person a better leader.

♦  However, leaders with higher capabilities may have difficulties in communicating with followers because they are busy or their ideas are too advanced for their followers.

♦  Self-confidence is another feature that helps a person to be a leader.

♦  Self-confidence is an ability to be confident in our own knowledge and skills.

♦  Studies have confirmed that self-confidence is very important for management, because it allows the leader to be sure that his attempts of influencing are appropriate and right.

♦  Self-confidence affects initiative, goals, problem solving and implementation of changes.

♦  Leaders with a high level of self-confidence constantly have the role of initiators in the solution of problems, improvement of current state and implementation of changes.

♦  They are willing to accept difficult tasks and will not give up in case of a problem.

♦  Leaders with a high level of self-confidence have an active relationship towards problems, they do not postpone or transfer problem solving to others.

♦  Also, too much self-confidence can lead to non-functional behavior of leaders.

♦  They are then mindless, arrogant and intolerant.

♦  Determination is the essential characteristics of leaders; it is defined as the desire to complete the work.

♦  It includes characteristics such as initiative, persistence, dominance and desire.

♦  People with determination are willing to do everything, are pro active and have the ability to insist on meeting with obstacles.

♦  Effective leaders do not expect that problems will be solved by someone else, but they search for solutions and solve problems.

♦  Also, they give others the energy, and this energy leads to action.

♦  Fairness is the attribute of honesty.

♦  Fair leaders put confidence in others because they can be trusted that they do what they say.

♦  They are loyal, people can rely on them and they are not impermanent.

♦  Honesty makes a leader credible and trust-worthy.

♦  There are several behaviors associated with honesty: sincerity and credibility, trust-worthiness, loyalty, confidence and responsibility.

♦  If a leader lies, he/she loses credibility. Sociability is leader’s search for good public relations.

♦  Social leaders are friendly, sociable, considerate and diplomatic.

♦  Social leaders have well-developed interpersonal skills and create partnerships with their followers.

♠ LEADERSHIP QUALITIES

♦  To successfully implement their roles, leaders also need to have certain abilities, five of which are characteristic.

♦  Authorization to share their power with employees so that they are included in setting goals and planning activities.

♦  Intuition in starting actions in order to anticipate andexploit changes in favor of the company, by taking into account all the risks that emerge.

♦  Self-understanding that allows a leader to perceive his/her advantages in order to get rid of his/her weaknesses.

♦  Vision that includes leader’s ability to perceive better working environment and the way in which that environment can be ensured.

♦  Compliance of values, which includes leader’s ability to identify the enterprise value and the value of an individual, as well as to meet their approval.

♠ STYLES OF LEADERSHIP

♦  In fulfilling their role, leaders practice certain style.

♦  Their style is based on the combination of their personal beliefs and values.

♦  There are different approaches to the classification of styles which leaders practice.

♦  Goleman, Boyatzis and McKee recognize six leadership styles which have different effects on the emotions of target followers.

♦  Each leader can use a specific style and the combination of styles which is adequate to the situation.

♦  Visionary leader directs people towards the achievement of vision.

♦  He/she shows the way of achieving it, motivates them to fight for the progress, openly shares information, and then gives them the power of knowledge.

♦  Instructive leader connects desires with organizational goals.

♦  He/she holds long conversation in order to understand jobs and helps people find their strengths and weaknesses.

♦  Afiliative leader creates connections between people.

♦  Thus, he/she creates harmony within the organization.

♦  Emotional needs are above work needs.

♦  Democratic leader acts on the value of input and loyalty through participation and listening of good and bad news.

♦  Leader who sets the tone, i.e. director, builds challenge and exciting goals for people.

♦  He/She expects the same perfection of employees, as he/she does from himself/herself.

♦  If necessary, a leader will take action in order to solve the problem.

♦  Leader who commands, i.e. dominant leader, facilitates fear and gives clear directives, commands and expects full agreement.

♦  Such leader might look cold and distant.

♠ LEADERSHIP AND POWER

♦  Leadership and power are related concepts because power is part of the process of influence.

♦  Power is actually the ability to influence other people.

♦  People have power when they can act on opinions, beliefs and actions of others.

♦  According to Northouse, there is the power of position and the power of man.

♦  The power of position entails the relationship between boss and his/her subordinate.

♦  It includes the power of law, reward and compulsion.

♦  Such relationship is forced upon, because employees have no influence in choosing their leader.

♦  The power of man is evident in the power of imitation and professionalism.

♦  A leader who has such power, influence others with knowledge and character indirectly, through interaction with other people.

♦  The power of compulsion is directed towards the achievement of individual goals or interests of leaders.

♦  The right leadership includes the interests of followers.

♦  This relationship can be regarded as one form of partnership.

♦  Ken Blanchard mentions five sources of power:

the power of position,

personal power,

task power,

relationship power and

the power of knowledge.

♦  The power of position is acquired by progress in career and the accompanying title.

♦  Personal power is power that derives from the qualities of a leader and his/her passion to achieve the goal.

♦  Task power is associated with the job.

♦  This is actually willingness or unwillingness to help others in performing their work tasks.

♦  Relationship power refers to building relationships with other people.

♦  It represents the preservation of partnerships with colleagues and the power of making friends.

♦  The power of knowledge is a power of having professional knowledge and skills.

♦  A man who has all five types of power is a complete leader.

♦  Through his/her actions, a complete leader can run things for the common good.

♦  In accordance with French and Raven, power arises from the framework of relationship between two people.

♦  This includes the person who affects and the person who is affected.

♦  There are five common sources of power:

reward,

compulsion,

law,

model and

experience.

♠ LEADERSHIP

♦  Leadership as a function of management revealed itself as one of the key functions.

♦  Although all functions are equally important, without good leadership, all other functions would be unattainable.

♦  Leaders are people who have the power to influence others, and leadership is the power to influence others to perform the selected task.

♦  A leader affects followers, but he/she is also under their influence.

♦  Probably the most important characteristic of leaders is that they are visionaries.

♦  That allows them to do the right things, while managers do things right.

♦  Their different way of thinking arises because they are passionate, creative, innovative and imaginative, in contrast to managers who are rational and analysts.

♦  Leaders see things that will or should happen, while managers manage processes and solve current problems.

♦  Managers use well-known structures and positional power.

♦  Unlike leaders, managers do not experiment.

♦  They do not change things, but give the needed dose of security and stability, when leaders introduce too much instability.

♦  The essence of leadership is in following, i.e. the will of people to follow and stick to what leader ordered.

♦  Leadership is defined as the impact on people, in a way that they perform tasks with pleasure.

♦  Since leadership is one of the functions of management, leadership is part of management.

♦  Leadership and management complement each other.

♦  Management is a process in which others are directed towards the accomplishment of some tasks, while leadership is a process which affects others, in order to complete the task.

♦  Management is wider, while leadership is narrower concept, i.e. management includes leadership.

♦  Since leadership is the function of management, the question is whether managers are also leaders.

♦  The answer is that there are leaders among managers, and managers among leaders, but it is hard to find someone who is both leader and manager.

♠ METHODS OF LEADERSHIP

♦  Under the control method means a method in which the head on the basis of existing powers to issue orders, directs, and coordinates the work of their colleagues.

♦  In practice, there are three methods of leadership.

♦  The method of coercion corresponds to autocratic manager.

♦  Autocratic leadership style is the method of leadership in which one person has unlimited power in making decisions.

♦  This method is based on different means and measures of coercion which managers use to achieve organization’s goals.

♦  There are various forms of coercion, such as: complaint, critic, disciplinary or criminal liability and dismissal.

♦  Employees are threatened with sanctions, so they are directed more towards fear than work tasks.

♦  The method of paternalism corresponds to liberal manager.

♦  In this method, manager takes care of the needs of employees, but asks for their obedience and loyalty in return.

♦  Manager is considered the ‘father’ of the organization and tends to tie his/her employees for himself/herself and determines their material and moral benefits or privileges.

♦  Method of persuasion corresponds to democratic manager.

♦  Manager here tries various procedures to convince his/her employees that it is necessary and useful to complete given tasks.

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