Leadership and Decision

Making

Daisy Chauhan

Manager and Leader

Administers
Maintains
Focuses on systems &

structure
Relies on control
Short-range view
Eye on the bottom line
Imitates
Accepts status quo
Surrenders to external
forces
Does things rightly

Innovates
Develops
Focuses on people
Inspires trust
Long-range view
Eye on the horizon
Originates
Challenges the status

quo
Conquers over volatile,
turbulent and ambiguous
surroundings
Does the right things

What Differentiates a
A Leader sees:
Leader
More
Farther and
Before

Others.
It is not the position that makes a leader
It is the leader that makes a position.
In the case of a manager things happen
when he is there;
In the case of a Leader, things happen
even when he is not there.

Ten Leadership Competencies

1. Passion
2. Vision

3. Self Discipline
4. Initiative
5. Courage
6. Integrity and Trust
7. Risk Taking Capacity
8. Building a Team
9. Creativity
10. Competence

Theories of Leadership
Trait Theories
Behavioral Theories
Contingency Theories

Trait Theories
Trait theories differentiate leaders from non-

leaders by focusing on personal qualities

and characteristics
Some common traits of leaders:
Ambition and energy
Desire to lead
Honesty and integrity
Self Confidence
Intelligence
High self-monitoring
Job relevant knowledge

Trait Theories
Extroversion is the most important trait of

effective leaders
Extroversion more strongly related to leader
emergence than to leader effectiveness

Behavioural Theories
Ohio State Studies:
Two dimensions relating to behaviour:
Initiating structure : Extent to which a leader
is likely to define and structure his/her role
and those of employees for the attainment of
goals
Consideration: The extent to which a leader is
likely to have job relationships characterised
by mutual trust, respect for employees ideas
and regard for their feelings
Has concern for employees comfort,
wellbeing, status and satisfaction

Behavioural Theories
Michigan Studies:
People Oriented Leader: emphasise
interpersonal relations, take personal
interest in the needs of the employees
Production Oriented Leader: emphasise the
technical and task aspects of the job.
Their concern is accomplishing tasks and
employees are only a means to that end.

Behavioural Theories
The Managerial Grid (Blake and Mouton):
Nine possible positions (styles) along each
axis on people orientation and production
orientation.
Managers are found to perform best under
9,9 style (High on people and production
orientation)

Leader-Member Exchange
Due to time constraint leaders establish a
Theory
special relationship with a small group of their
followers.
These individuals make the in-group
Leader chooses those members who have similar
attitude and personality characteristics as theirs
They are trusted, get disproportionate amount of
leaders attention and special privileges
Other followers fall into the out-group
In-group persons get higher performance ratings
and have higher satisfaction than the out-group
members

Category

II

III

IV

VI

VII

VIII

L-M
Relations

Good

Good

Good

Good

Poor

Poor

Poor

Poor

Task
Structure

High

High

Low

Low

High

High

Low

Low

Weak

Strong

Weak

Strong

Weak

Strong

Weak

Posi- Strong
tion
Power
G
o
o
d

Task oriented:

Relationship Oriented:

P
o
o
r

Moderate

vourable

MATCHING LEADERS AND SITUATIONS

When faced with situations I, II, III, VII and VIII
Task Oriented leaders perform better.

In situations IV, V, and VI Relationship

Oriented leaders perform better.

Contingency Theories

Contingency theories of leadership emerged because

the earlier theories failed to provide consistent
results. The focus therefore shifted to situational
influences.

Fiedler Contingency Model:

Proposes that effective group performance depends
on the proper match between the leaders style and
the degree to which the situation gives control to
the leader.

Contingency Theories
Least Preferred Coworker (LPC)
A high LPC score on 16 dimensions (pleasant-unpleasant) is
indicative of relationship orientation and a low LPC score
is indicative of task orientation basic leadership style
Leadership effectiveness depends on a match between the
style and three situational factors:
(1) Leader-member relations: The degree to which members
have confidence, trust and respect in their leaders
(2) Task Structure: The degree to which job assignments are
procedurised (structured/unstructured)
(3) Position Power: The degree of influence a leader has
over matters relating to hiring, firing, discipline,
promotions and salary increases.

COGNITIVE RESOURCE THEORY

Stress unfavorably affects a situation

Intelligence and experience can lessen the
influence of stress on the leader

HERSEY AND BLANHARDS SITUAITONAL

THEORY
Situational leadership is a contingency theory

where the focus is on the readiness of the

followers
The extent to which people have the ability and
willingness to accomplish a task
Unable and unwilling - Clear and specific directions
Unable and willing
- task orientation
Able and unwilling
- Supportive and participative
Able and willing - Leaders role minimal

Situational Leadership

Follower Readiness: Competence &

Motivation
R4
R3
R2
R1
Able and
willing

Able but
unwilling

Follower
Directed

S4
Delegating
Observing
Fulfilling

Unable but
willing

Unable and
unwilling

Leader Directed

Leader
Behavior S2
S3

Understandin
g
Encouraging
Collaborating

Training
Explaining
Monitoring

S1
Telling
Guiding
Directing

How to do
Turn over
responsibilit
y for
decisions
and
executing

it

Find out why

the reluctance.
Share ideas
and help in
decision
making

Explain your
decisions and
provide
opportunity
for
clarification

Provide specific
instructions and
closely
supervise
performance

Situational Leadership - Need based

R
E
L
A
T
I
O
N
S
H
I
P
B
E
HAV
IUOR

High Relationship/
Low Task

S3: Participating/
Encouraging

High on Relationship/
High on Task

S2:Selling/
Explaining

Low Relationship/
Low Task

Low Relationship/
High Task

S4: Delegating/
Monitoring

S1: Telling/
Directing

Task Behaviour

Leadership and Decision Making

Criteria for Decision Making:

1. Rationality
2. Acceptance

Rational Emotive Therapy is the method of

decision making where both the above criteria
are taken care of.

Neither being too rational nor too emotional.

A balance between rationality and acceptance or

using emotions/feelings for making intelligent
decisions.

Criteria for Decision Making

QUALITY

ACCEPTANCE

1. Information:

1. Conflict Rule
2. Fairness Rule
3. Acceptance Priority

Relevant
Sufficient
Complete

2. Complexity
3. Goal Congruity

TIME AVAILABILITY

Leadership and Decision Making

Decision Styles:
AI : Autocratic. No information sharing, No search for information,
managing with available info. You take your own decision.
AII: Autocratic but may seek some information, speak to a few
people. True facts not shared.
CI: Consultative approach. Problem sharing with relevant
individuals (subordinates) on a one to one basis. Then you take a
decision which may or may not reflect your subordinates views.
CII: Consultative approach. Problem sharing with your
subordinates in a group collectively obtaining their ideas and
suggestions. Then you take the decision which may or may not
reflect their views.
GII: Consensus Group Decision-making. You share your problems
with you subordinates in a group. Together you generate and
evaluate alternatives and attempt to reach a consensus. You do not
try to influence the group to adopt your solution and you are
willing to accept and implement any solution that has the support of
the entire group.