INSTITUTE OF BUSINESS MANAGEMENT

ORGANIZATIONAL BEHAVIOUR TERM REPORT ON LEADERSHIP

GROUP MEMBERS: Sarah Asghar (9837) Saba Abrar (10608) Muhammed Ahmed Jehangir (10221) Hasan Raza (10296) SUBMITTED TO: Sir Humayun Zafar SUBMITTION DATE: December 9, 2010

ACKNOWLEDGEMENT

We are grateful to our teacher Mr. Humayun Zafar for teaching us the curriculum of Organizational Behaviour. His versatile knowledge in the field of O.B and unique teaching style has developed our knowledge and cleared many important concepts. We are all the most grateful to him for assigning this project, which has further helped us in evaluating many interrelated dimensions of Organizational Behavior in todays world. Finally we bestow our thanks to all who have directly or indirectly supported us with their assistance and guidance to compose this report and accomplish broader vision to visualize things related to O.B in a more comprehensive manner.

Letter of Transmittal

December 9th, 2010 Mr. Asim Iftikhar Instructor, Ecommerce Institute of Business Management Korangi Creek, Karachi Dear Sir It is my pleasure to inform you that we have successfully completed the task that was assigned to me as the requirement of the course Organizational Behavior. This report as per your instruction has covered all the authentic areas of concern related to our research topic Leadership, and it contains all the relevant information. We are grateful to you that you have imparted to us the knowledge and the skills so that we can interact with the market forces later in our careers. This report would not have been possible without the technical expertise and the valuable guidelines that you provided to us. We are sure that the knowledge imparted to us during the period of this course will definitely help us in the future as well. Sincerely, Sarah Asghar (9837) Saba Abrar (10608) Muhammed Ahmed Jehangir (10221) Hasan Raza (10296)

DEFINITION OF LEADERSHIP:
Leadership has been described as, The process of social influence in which one person can enlist the aid and support of others in the accomplishment of a common task. Leadership, according to Peter DeLisle, Is the ability to influence others, with or without authority. All successful endeavors are the result of human effort; thus, the ability to influence others is a derivation of: Interpersonal Communications: Interpersonal effectiveness is the capability of an individual to do this, influence others, competently. Leadership is a direct function of three elements of interpersonal effectiveness. Awareness, Ability, Commitment. Conflict Management: He must have the ability the settle conflicts with his/her circle of interest. Problem solving: A leader has the ability to solve problem, of any kind.

Four major leadership factors

Follower - Different people require different styles

Leader Know yourself as a leader, people will decide on their own whether to follow you

Communication Twoway, you must set the example

Situation -all are different, use judgment to determine best course of action

ESSENCE OF LEADERSHIP:
"The very essence of leadership is that you have to have a vision. It's got to be a vision you articulate clearly and forcefully on every occasion." Theodore Hesburgh, President of the University of Notre Dame. "There's nothing more demoralizing than a leader who can't clearly articulate why we're doing what we're doing." James Kouzes and Barry Posner.

TYPES OF LEADERSHIP:
1. Autocratic: Leader makes decisions without reference to anyone else, high degree of dependency on the leader. 2. Laissez-Faire: Let it be, the leadership responsibilities are shared by all, relies on good team work and interpersonal relations. 3. Democratic: Encourages decision making from different perspectives, leadership may be emphasised throughout the organisation. 4. Paternalistic: Leader act as a father figure, make decision through consultation and support staff.

TRANSACTIONAL AND TRANSFORMATIONAL LEADERS:

Transactional Leadership: Assumptions: 1) People are motivated by reward and punishment. 2) Social systems work best with a clear chain of command. 3) When people have agreed to do a job, a part of the deal is that they cede all authority to their manager. 4) The prime purpose of a subordinate is to do what their manager tells them to do. 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. 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. Transformational leadership Transformational leadership is defined as a leadership approach that causes change in individuals and social systems. In its ideal form, it creates valuable and positive change in the followers with the end goal of developing followers into leaders. Enacted in its authentic form, transformational leadership enhances the motivation, morale and performance of his followers through a variety of mechanisms. These include connecting the follower's sense of identity and self to the mission and the collective identity of the organization; being a role model for followers that inspires them; challenging followers to take greater ownership for their work, and understanding the strengths and weaknesses of followers, so the leader can align followers with tasks that optimise their performance Research in the area When researching transformational and transactional leadership the most frequently used survey is called "the Multifactor Leadership Questionnaire" (MLQ Form 5X). This is a questionnaire that measures each of the components of the full range of leadership. The original scales in the questionnaire are based on a initial factor analysis and earlier versions. Earlier research on transformational leadership was limited, because the knowledge in this area was too primitive for finding good examples for the items in the questionnaire. Another weakness in the first version of the MLQ related to the wording of items. Most

items in the scale of charismatic leadership described the result of leadership, instead of specific actions of the leader that can be observed and that, in turn, lead to the results. Implications for managers Some tips for transformational leadership: 1. 2. 3. 4. 5. Develop a challenging and attractive vision, together with the employees. Tie the vision to a strategy for its achievement. Develop the vision, specify and translate it to actions. Express confidence, decisiveness and optimism about the vision and its implementation. Realize the vision through small planned steps and small successes in the path for its full implementation

The Multifactor Leadership Questionnaire

The Multifactor Leadership Questionnaire (MLQalso known as MLQ 5X short or the standard MLQ) measures a broad range of leadership types from passive leaders, to leaders who give contingent rewards to followers, to leaders who transform their followers into becoming leaders themselves. The MLQ identifies the characteristics of a transformational leader and helps individuals discover how they measure up in their own eyes and in the eyes of those with whom they work. 0 1 Once While in a Sometimes Fairly Often 2 3 4 Frequently, if not always

Not At All

1. 2. 3.

Talks optimistically about the future Spends time teaching and coaching Avoids making decisions

0 0 0

1 1 1

2 2 2

3 3 3

4 4 4

12 Leadership Roles

Create an Inspiring Vision & Lead by Example Create an inspiring vision; establish shared values; give direction and set stretch goals Create change; lead change; manage resistance to change Lead by example; practice what you preach; set an example, and share risks or hardship Demonstrate confidence; win respect and trust without courting popularity Empower, Inspire, and Energize People Be enthusiastic; inspire and energize people; create a positive work environment Empower people; delegate authority; be open to ideas; have faith in the creativity of others Communicate openly and honestly; give clear guidelines; set clear expectations Empathize; be willing to discuss and solve problems; listen with understanding; support and help Build and Lead a Team Use team approach; facilitate cooperation; involve everyone; trust your group; rely on their judgment Bring out the best in your people; have common touch with them; coach and provide effective feedback Permit group decision; help your team reach better decisions Monitor progress, but don't micromanage, lead your team; avoid close supervision; do not over boss; do not dictate; lead team self-assessment

Examples of Transformational Leaders

LEADERSHIP SKILLS:

A leader must have many skills to make him a perfect leader, who achieves his goals and objectives. The type of skills involve in a leader are: Managerial courage: The leader must have managerial courage with respect to making sound decisions and taking productive risk at focal points in business issues. Persuasiveness and influencing: Yes! A leader must possess these skills as he is responsible to give correct directions, motivate and persuade his subordinates towards the attaining of his strategic goals. Presentation skills: A leader like a CEO must have great presentation skills as he is the one responsible to present and persuade the board of directors for the vision he has for the organization. Telephone skills: Its a strange but important skill in todays world that a leader must possess the skill to talk on the phone, making sure his time management skill work here too. Verbal communication: He must be great at his verbal and interpersonal communication skills as he/she is the one who take the subordinates along with them. Running meetings: Meeting should be attended with full preparations and output from the presentations should always be positive. As there are the focal point for and business process to start. Written communication: A leader must be good at his written communication as well as he must always take the initiative to thank his/her subordinates for their output and always keep his business associates happy with good written gestures. Negotiation: A leader must possess very good negotiation skills, because this skill can actually be the basis for financial assistance for any future goal to be achied. Therefore the leader of a group must keep this skill in good use to impress his higher officials. Listening: a leader must possess very good listening skills. He must be active listeners having a two communication with the person he is talking or discussing an important issue.

5 KEYS TO BECOME A GOOD LEADER:

1. A leader has a plan: A leader must be proactive rather than reactive. He must be a good planner of events and situations. 2. A leader has a VISION: A leader is the one who has a vision and who has all the necessary skills as mentioned above to reach his vision. 3. A leader shares his VISION: A leader has the skill to cascade and share his visions with his subordinates together with whom he achieves or at least tries to achieve some part of the vision. 4. A leader takes charge: Yes! He is the one who takes charge and makes his followers take the right path towards his goals. 5. A leader inspires through examples: Not only giving his examples of his success ladder rather examples of his colleagues and even his subordinates who have moved forwards, and the others do to the same.

Gen eral leadership style cycle

Common to all leadership styles is a process

Varies according to style, each has consistent process

PLAN

RECOGNIZE

DELEGATE

FOLLOW UP

Leaders vs. managers

Leader
A person who is followed by others. Do the right things. Management seeks stability & predictability (order)

Manager
A person controlling or administering a business or a part of a business. A person regarded in terms of skill in household or financial or other management. Do things right. Leadership seeks improvement through change (disorder)

Leadership principals
1. Develop a Relationship, show interest 2. Consider other persons feelings & objectives in planning what you do/say 3. View complaints not as personal criticism, but as valuable feedback and suggestions 4. Make few promises, and keep them 5. Examine all facets of a situation 6. Keep it a business-like discussion 7. Approach appeals to others motivations and emotions 8. Admit mistakes ,Recognize no one is perfect 9. Reasons why/why not, be truthful and show willingness answer question 10. Present fair/realistic expectations 11. Be responsive to situations / issues 12. Always give recognition where deserved 13. Prepare others in advance for changes affecting them 14. Takes time, effort to establish effective team

Six Most Important Words to be used by a Leader:

The 6 most important words... "I admit I made a mistake." The 5 most important words.......... "I am proud of you." The 4 most important words... "What is your opinion?" The 3 most important words... "If you please." The 2 most important words... "Thank you." The 1 most important word... "We." The least important word......."I."

References:
www.wikipedia.com www.google.com http://ezinearticles.com/?Define-Leadership-Excellence?-The-Six-Most-ImportantWords-For-A-Leader&id=1160940 Organizational behavior by Stephen Robbins