LEADERSHIP – INTRODUCTION

UNIT -1
• Leadership is an influence relationship among leaders and followers who intend real changes and
outcomes that reflect their shared purposes.
• Leadership involves following key elements – INFLUENCE, FOLLOWERS, SHARED PURPOSE, INTENTION,
CHANGE, PERSONAL RESPONSIBILITY & INTEGRITY.
➢ Influencing others to come together around a common vision
 Multidirectional - operating in several directions.
 Non-coercive - not using threats or force to achieve
 In most organizations, superiors influence subordinates, but subordinates also influence
superiors.
➢ The people involved in the relationship want substantive changes—leadership involves creating
change, not maintaining the status quo.
➢ The changes sought are not dictated by leaders but reflect purposes that leaders and followers
share. Moreover, change is toward an outcome that both the leader and the followers want, a
desired future or shared purpose that motivates them toward this more preferable outcome.
➢ Leadership occurs among people; it is not something done to people. Since leadership involves
people, there must be followers.
➢ Intention means that people—leader and followers—are actively involved in the pursuit of
change. Each person takes personal responsibility to achieve the desired future.
• Reciprocal in nature
• Involves creating change
• Qualities required for effective leadership are also needed to be an effective follower
• Effective followers are:
– Self thinkers who do assignments with energy and enthusiasm
• Leaders are:
 Committed to the common good rather than self-interest
 Firm in their beliefs
NEW REALITY FOR LEADERS
1. From Stabilizer to Change Manager
• In the past, many leaders assumed that if they could just keep things running on a steady,
even keel, the organization would be successful.
• Yet today’s world is in constant motion, and nothing seems certain anymore.
• Today’s best leaders accept the inevitability of change and crisis and tap into them as
potential sources of energy and self-renewal. Adaptability is the main ideology in modern
world.

2. From Controller to Facilitator

• Leaders in powerful positions once believed strict control, rigid organizational hierarchies,
structured jobs and work processes were needed for the organization to function efficiently
and effectively.
• Effective leaders share power rather than hoard it and find ways to increase an
organization’s brainpower by getting everyone in the organization involved and committed.
• Rather than being a controller, the leader is a facilitator who helps people do and be their
best by removing obstacles to performance, getting people what they need, providing
learning opportunities, and offering support and feedback.

3. From Competitor to Collaborator

• Although some companies still encourage internal competition and aggressiveness, most
successful leaders stress teamwork, compromise, and cooperation.
• Successful leaders’ harness and make the most of ideas, talent, and resources from across
boundaries of all kinds.
• Self-directed teams and other forms of horizontal collaboration spread knowledge and
information throughout the organization.
• Effective leaders also work collaboratively with suppliers, customers, governments,
universities, and other organizations.
• There is a growing trend within companies to think of themselves as teams that create value
jointly rather than as individual entities in competition with all others.

4. From Diversity Avoider to Diversity Promoter

• Many of today’s organizations were built on assumptions of uniformity, separation, and
specialization.
• People who think alike, act alike, and have similar job skills are grouped into a department,
such as accounting or manufacturing.
• Homogenous groups find it easy to get along, communicate, and understand one another.
• Bringing diversity into the organization is the way to attract the best human talent and
develop an organizational mindset broad enough to thrive in a multinational world.
• Having employees with different ages, values, ethnic backgrounds, and work experience is
important.
• People may have different styles, yet the organization works better.
• People play different roles, and the diverse experiences of the group enables the firm to
respond to unique situations and handle a variety of organizational and personal needs.

5. From Hero to Humble

• One reason for the shift from hero to humble is that it is less and less realistic for an
individual leader to meet all the challenges a team or organization faces in a complex and
rapidly changing world.
• Another is that ambitious, highly self-confident, charismatic leaders have been at the
forefront of some of the ethical scandals and business failures of recent years.
• The hero leader may make riskier and daring decisions, often without considering the
greater good, whereas a humble leader will seek advice and take time to think through the
possible consequences of his or her actions.
LEADERSHIP DIFFERS FROM MANAGEMENT

Management can be defined as the attainment of organizational goals in an effective and efficient
manner through planning, organizing, staffing, directing, and controlling organizational resources.

THEORIES OF LEADERSHIP
GREAT MAN THEORIES

• Leadership was conceptualized as a single Great Man who put everything together and influenced
others to follow along based on the strength of inherited traits, qualities, and abilities.
• [This is the granddaddy of leadership concepts. The earliest studies of leadership adopted the belief
that leaders (who were always thought of as male) were born with certain heroic leadership traits and
natural abilities of power and influence.]

TRAIT THEORIES

• Leaders had particular traits or characteristics that distinguished them from non-leaders and
contributed to success.

• [Beginning in the 1920s, researchers looked to see if leaders had particular traits or characteristics, such as
intelligence or energy, that distinguished them from non-leaders and contributed to success. It was thought
that if traits could be identified, leaders could be predicted, or perhaps even trained. Although research
failed to produce a list of traits that would always guarantee leadership success.]

BEHAVIOR THEORIES

• Leaders’ behaviour correlated with leadership effectiveness or ineffectiveness.

• [Focused on what leaders actually do on the job, such as various management activities, roles, and
responsibilities. These studies were soon expanded to try to determine how effective leaders differ in
their behaviour from ineffective ones.]

CONTINGENCY THEORIES (known as situational theories)

• Leaders can analyse their situation and tailor their behaviour to improve leadership effectiveness
• Emphasized that leadership cannot be understood in a vacuum separate from various elements of the
group or organizational situation
INFLUENCE THEORIES

• Examined the influence processes between leaders and followers

• Charismatic leadership - Influence based on the qualities and personality of the leader
• [Related areas of study are leadership vision and organizational culture. Leaders influence people to
change by providing an inspiring vision of the future and shaping the culture and values needed to
attain it.]

RELATIONAL THEORIES

• Focused on how leaders and followers interact and influence one another
• Transformational leadership and servant leadership are two important relational theories.
• Interpersonal relationships are seen as the most important facet of leadership effectiveness.

LEADERSHIP EVOLUTION – DIFFERENT ERAS IN LEADERSHIP

1. LEADERSHIP ERA 1

• This era may be conceptualized as pre-industrial and pre - bureaucratic.

• Most organizations were small and were run by a single individual who many times hired workers
because they were friends or relatives, not necessarily because of their skills or qualifications.

• The size and simplicity of organizations and the stable nature of the environment made it easy for a
single person to understand the big picture, coordinate and control all activities, and keep things on
track.

• This is the era of Great Man leadership and the emphasis on personal traits of leaders. A leader was
conceptualized as a single hero who saw the big picture and how everything fit into a whole.
2. LEADERSHIP ERA 2

• Emergence of hierarchy and bureaucracy.

• Organizations have begun to grow large

• Hierarchies of authority provide a sensible mechanism for supervision and control of workers, and
decisions once based on rules of thumb or tradition are replaced with precise procedures.

• Rise of the “rational manager” who directs and controls others using an impersonal approach.

• Employees aren’t expected to think for themselves; they are expected to do as they’re told, follow
rules and procedures, and accomplish specific tasks.

• The focus is on details rather than the big picture.

• The behaviour and contingency theories worked here because leaders could analyse their situation,
develop careful plans, and control what happened.
3. LEADERSHIP ERA 3

• Environmental conditions had become chaotic.

• The Japanese began to dominate world commerce with their ideas of team leadership and superb
quality.

• This is the era of the team leader and the change leader.

• Influence was important because of the need to change organizational structures and cultures.

• This era sees the emergence of knowledge work, an emphasis on horizontal collaboration, and a
shift to influence theories.

• Rather than conceiving of leadership as one person always being firmly “in charge,” leadership is
often shared among team leaders and members, shifting to the person with the most knowledge or
expertise

4. LEADERSHIP ERA 4

• Enter the digital, mobile, social-media age. It seems that everything is changing, and changing fast.

• Era 4 is the era of the agile leader who has made the leap to giving up control in the traditional
sense.

• Leaders emphasize relationships and networks, and they influence others through vision, meaning,
purpose, and values rather than management authority and control.

• They are constantly experimenting, learning, and changing, in both their personal and professional
lives, and they encourage the development and growth of others so that followers are expanding
their capabilities and contributing to innovation.

• Era 4 requires the full scope of leadership that goes far beyond rational management or even team
leadership.
New Ways of building business New ways of Investment
New ways of Growth New ways of Obsolescence
New Unicorns New breed of leaders

IMPLICATIONS

• The flow from Great Man leadership to rational management to team leadership to agile leadership
illustrates trends in the larger world. The implication is that leadership reflects the era or context of
the organization and society.
• Thus, Era 3 issues of diversity, team leadership, empowerment and horizontal relationships are
increasingly relevant.
• Many leaders are rapidly shifting into Era 4 leadership by focusing on change management and
facilitating a vision and values to encourage high performance, agility, and continuous adaptation in
a fast-shifting world.
• Agile leaders align themselves with new social technologies that can create networks of leaders
throughout the organization.
FATAL FLAWS THAT CAUSE DERAILMENT
1. PERFORMANCE PROBLEMS
• Failing to meet business objectives because of too much time promoting themselves and
playing politics, a failure to fulfil promises to superiors and stake holders. Integrity and
honesty issues.
2. PROBLEMS WITH RELATIONSHIPS
• Being insensitive, manipulative, critical, and not trustworthy in relationships with peers, direct
reports, customers, and others
3. DIFFICULTY CHANGING
• Not learning from feedback and mistakes to change old behaviours
• Defensive, unable to handle pressure, and unable to change management style to meet new
demands
4. DIFFICLTY BUILDING & LEADING TEAMS
• Poor management of direct reports
• Inability to get work done through others
• Not identifying and hiring the right people
5. TOO NARROW MANAGEMENT EXPERIENCE
• Inability to work effectively or collaborate outside their current function
• Failing to see big picture when moved into general management position over several
functions
LEARNING TO BE A LEADER
 U2 - RESEARCH PERSPECTIVES ON INDIVIDUAL LEADERSHIP
THE TRAIT APPROACH
TRAITS: Distinguishing personal characteristics of a leader

 Intelligence
 Honesty
 Self-confidence
 Appearance
THE GREAT MAN APPROACH:
Sought to identify the traits leaders possessed that distinguished them from people
who were not leaders.

CHARACTERSTICS OF A LEADER
STRENGTHS

• Natura talent or ability that has been supported and reinforced with learned knowledge and
skills
• Acts as the central point of focus in life - Enables leadership to be based on:
Energy, Enthusiasm, Effectiveness
MATCHING STRENGTHS WITH ROLES
1. Operational role
• Vertically oriented leadership role
• Executive has direct control over people and resources and the position power to
accomplish results
• Leaders
 Deliver results
 Assertive
 Analytical and knowledgeable
 Riveted on changing knowledge to vision
2. Collaborative role
• Horizontal leadership role
• Leader worksbehind the scenes and uses personal power to influence others and get things
done
 Proactive
 Flexible
 Manage ambiguity and uncertainty
3. Advisory role
• Provides advice, guidance, and support
• Responsible for developing broad organizational capabilities rather than accomplishing
specific business results
• Leaders
 People skills
 Ability to influence others
 High levels of honesty and integrity

THREE TYPES OF LEADERSHIP ROLES

BEHAVIOR APPROACHES

• The groups with autocratic leaders performed highly so long as the leader was present to
supervise them.
• However, group members were displeased with the close, autocratic style of leadership,
and feelings of hostility frequently arose.
• The performance of groups who were assigned democratic leaders was almost as good,
and these groups were characterized by positive feelings rather than hostility.
• In addition, under the democratic style of leadership, group members performed well even
when the leader was absent.
• The participative techniques and majority-rule decision making used by the democratic
leader trained and involved the group members so that they performed well with or without
the leader present.

LEADERSHIP CONTINUUM

•
Tannenbaum and Schmidt also suggested that the extent to which leaders should be boss-
cantered or subordinate-entered depended on organizational circumstances and that
leaders might adjust their behaviours to fit the circumstances.
 • Leadership Continuum Theory is a contingency leadership theory developed by
Tannenbaum and Schmidt (1958).
• This theory is based on the idea that many classifications of leadership such as autocratic or
democratic are extremes and leadership practices in real life situations lye somewhere
between the two extremes.
• Tannenbaum and Schmidt (1958) propose the idea of leadership continuum and place
different variations of leadership practices along the continuum that move from autocratic
leadership style towards democratic.
• Specific leadership styles specified within the continuum include telling, selling, consulting,
and joining leadership styles.
• The Leadership Continuum Theory represents a just and valuable framework for analysing
leadership style.
• This is because the theory provides wider options for the classification of leadership style,
and thus has a high level of applicability in the real-life business management.

Ohio State Studies

Developed & administered the Leader Behaviour Description Questionnaire (LBDQ)to employees

• Consideration: Extent to which a leader is sensitive to subordinates, respects their ideas

and feelings, and establishes mutual trust Showing appreciation, listening carefully to
problems, and seeking input from subordinates regarding important decisions are all
examples of consideration behaviours.
• Initiating structure: Extent to which a leader is task oriented and directs subordinates’
work activities toward goal achievement. This type of leader behaviour includes directing
tasks, getting people to work hard, planning, providing explicit schedules for work activities,
and ruling with an iron hand.
 Although many leaders fall along a continuum that includes both consideration and initiating
structure behaviors, these behavior categories are independent of one another.
 In other words, a leader can display a high degree of both behavior types or a low degree of
both behavior types.
 Additionally, a leader might demonstrate high consideration and low initiating structure, or
low consideration and high initiating structure behavior.
 Research indicates that all four of these leader style combinations can be effective.

University of Michigan Studies

• Employee-centered - Leadership behaviour that displays a focus on the human needs of

subordinates
• Leader support and interaction facilitation are the two underlying dimensions of employee-
centered behavior. This means that in addition to demonstrating support for their
subordinates, employee-centered leaders facilitate positive interaction among followers and
seek to minimize conflict.
• Job – cantered - Leadership behaviour in which leaders direct activities toward efficiency,
cost cutting, and scheduling
• Dimensions - Goal emphasis, Work facilitation
• By focusing on reaching task goals and facilitating the structure of tasks, job-centered
behavior approximates that of initiating structure.
The Blake Mouton Leadership Grid
• Describes major leadership styles based on measuring both concern for people and concern
for production
• Two-dimensional model
• Proposed by the University of Texas
Leadership Grid

• Leadership Grid that builds on the work of the Ohio State and Michigan studies.
• Based on a week-long seminar, researchers rated leaders on a scale of one to nine
according to two criteria: the concern for people and the concern for production.
• The scores for these criteria are plotted on a grid with an axis corresponding to each
concern.
• Team management (9,9) is often considered the most effective style and is recommended
because organization members work together to accomplish tasks.
• Country club management (1,9) occurs when primary emphasis is given to people rather
than to work outputs.
• Authority-compliance management (9,1) occurs when efficiency in operations is the
dominant orientation.
• Middle-of-the-road management (5,5) reflects a moderate amount of concern for both
people and production.
• Impoverished management (1,1) means the absence of a leadership philosophy; leaders
exert little effort toward interpersonal relationships or work accomplishment.
Themes of Leader Behaviour Research

Individualized Leadership
Notion that a leader develops a unique relationship with each group member, determining:
• Leader's behaviour toward the member
• Member's response to the leader
Individualized leadership is based on the notion that a leader develops a unique relationship with each
subordinate or group member, which determines how the leader behaves toward the member and how the
member responds to the leader. In this view, leadership is a series of dyads, or a series of two-person
interactions. The dyadic view focuses on the concept of exchange, what each party gives to and receives
from the other.

Stages of Development of Individualized Leadership

A. Vertical Dyad Linkage (VDL) Model
Argues for the importance of the dyad formed by a leader with each member of the group

• In-group relationship - Seen among members with whom leaders spend a

disproportionate amount of time
• Out-group relationship - Seen among members of the group who did not experience a
sense of trust and extra consideration
Leader Behaviour Toward In-Group versus Out-Group Members

B. Leader-Member Exchange (LMX)

• Explores how leader-member relationships develop over time and how the quality of
exchange relationships affects outcomes
• Higher-quality relationship will lead to higher performance
• Leading to greater job satisfaction for in-group members

C. Partnership Building
Leaders strive to develop a positive relationship with each subordinate

• Positive relationship will have a different form for each person

• Performance and productivity gains can be achieved if the leader develops positive
relationships with each subordinate
• Third phase of the research

ENTREPRENEURIAL TRAITS AND BEHAVIOURS

• Entrepreneurship - Initiating a business venture, organizing the necessary

• Needs to be:
 Strongly driven
 Enthusiastic
 Driven by a vision
 • Leaders are:
 Persistent
 Independent
 Action oriented
 Drawn to new opportunities
 Innovative
 Creative
 Highly self-motivated
• Four characteristics considered highly important to entrepreneurial leaders are the
following:
 Vision and dissatisfaction with the present
 Ability to get people on board.
 Flexibility, openness to feedback, and ability to learn and adapt.
 Persistence and execution

CONTINGENCY APPROACHES TO LEADERSHIP

Contingency - Theory meaning one thing depends on other things.
Contingency means that one thing depends on other things, and for a leader to be effective there
must be an appropriate fit between the leader’s behavior and style and the conditions in the
situation.

Contingency approaches - Seek to delineate the characteristics of situations and followers and
examine the leadership styles that can be used effectively

Comparing the Universalistic and Contingency Approaches to Leadership

Hersey and Blanchard’s Situational Theory

 Focuses on the characteristics of followers as the important element of the situation &
consequently of determining effective leader behaviour
 Subordinates vary in readiness level

The Situational Model of Leadership

FIEDLER’S CONTINGENCY MODEL
Designed to diagnose whether a leader is task-oriented or relationship-oriented and match leader
style to the situation
Leadership Styles

• Relationship-oriented
 Concerned with people
 Establishes mutual trust and respect
 Listens to employees’ needs
• Task-oriented
 Primarily motivated by task accomplishment
• Measured with a least preferred co-worker (LPC) scale
 Leadership style was measured with a questionnaire known as the least preferred co-
worker (LPC) scale.
 The LPC scale has a set of 16 bipolar adjectives along an eight-point scale.
 Examples of the bipolar adjectives used by Fiedler on the LPC scale follow: Open,
quarrelsome, efficient, self-assured, gloomy, guarded, harmonious, inefficient,
hesitant, cheerful
Situation

Fiedler’s Classification: How Leader Style Fits the Situation

Path-Goal Theory
Contingency approach to leadership in which the leader’s responsibility is to increase
subordinates’ motivation. By clarifying the behaviours necessary for task accomplishment and
rewards
Leader Roles in the Path-Goal Model

Leader Behaviour
a. Supportive leadership
• Shows concern for subordinates’ well-being and personal needs
• Leadership behaviour is open, friendly, and approachable, and the leader creates a team
climate and treats subordinates as equals
b. Directive leadership
• Tells subordinates exactly what they are supposed to do
• Leader behaviour includes planning, making schedules, setting performance goals and
behaviour standards, and stressing adherence to rules and regulations
c. Participative leadership
• Consults with subordinates about decisions
• Leader behaviour includes asking for opinions and suggestions, encouraging participation
in decision making, and meeting with subordinates in their workplaces
d. Achievement-oriented leadership
• Sets clear and challenging goals for subordinates
• Leader behaviour stresses high-quality performance and improvement over current
performance
Situational Contingencies
• Personal characteristics of group members

 Ability and skills

 Needs and motivations
• Work environment

 Degree of task structure

 Nature of the formal authority system
 Work group itself

PATH-GOAL SITUATIONS AND PREFERRED LEADER BEHAVIOURS

 U3 - DIMENSION OF SOCIAL VALUE SYSTEM
GLOBAL DIVERSITY AND SOCIOCULTURAL ENVIRONMENT

• Globalization has caused managers to range of issues

• Social and cultural differences have the ability to cause conflict
• How to manage (Extra)

DIMENSIONS OF SOCIAL VALUE SYSTEMS

1. POWER DISTANCE: Extent to which people accept equality in power
• High power distance - Acceptance of inequality in power
• Low power distance - Expectance of equality in power
2. UNCERTAINTY AVOIDANCE
• Degree to which members of a society feel uncomfortable with uncertainty & ambiguity
• Support beliefs and behaviors that promise certainty and conformity
3. INDIVIDUALISM
• Value for a loosely knit social framework in which individuals are expected to take care
of themselves
4. COLLECTIVISM
• Preference for a tightly knit social framework in which people look out for one another
and organizations protect their members’ interests
5. MASCULINITY
• Preference for achievement, heroism, assertiveness, work centrality, and material
success
6. FEMININITY
• Preference for relationships, cooperation, group decision making, and quality of life

LEADER STEPS TO CREATING A VISION

• Target a vision for a desired future

• Cocreate the vision
• Identify strengths
• Write a first draft
• Solicit feedback and create the final vision statement
• Share the vision widely
STRATEGIC VISION AND STRATEGIC ACTION

• Illustrates four possibilities of leadership in providing direction.

• Four types of leaders are described based on their attention to vision and attention to
action.
• The person who is low both on providing vision and stimulating action is uninvolved, not
really a leader at all.
• The leader who is all action and little vision is a doer.
• He or she may be a hard worker and dedicated to the job and the organization, but the doer
is working blind.
• Without a sense of purpose and direction, activities have no real meaning and do not truly
serve the organization, the employees, or the community.
• The dreamer, on the other hand, is good at providing a big idea with meaning for self and
others.
• This leader may effectively inspire others with a vision, yet he or she is weak on executing
strategic action.
• The vision in this case is only a dream, a fantasy, because it has little chance of ever
becoming reality.
• To be an effective leader, one both dreams big and transforms those dreams into
significant strategic action, either through one’s own activities or by hiring other leaders,
who can effectively execute the vision and strategy.

STRATEGIC LEADERSHIP means the ability to anticipate and envision the future, maintain
flexibility, think strategically, and work with others to initiate changes that will create a competitive
advantage for the organization in the future.
MISSION

• Organization’s core broad purpose and reason for existence

• Provides a basis for creating the vision
• Made up of 2 parts
 Core values
 Core purpose
• The core values and core purpose are frequently expressed in a mission statement.
• The core values guide the organization ‘‘no matter what.’’
• The mission also includes the company’s core purpose.
• Leaders take care when defining a core purpose so that the organization can grow and
change.
EXTRA:
• Whereas vision is an ambitious desire for the future, mission is what the organization
‘‘stands for’’ in a larger sense.
• Whereas visions grow and change, the mission persists in the face of changing
technologies, economic conditions, or other environmental shifts.
• It serves as the glue that holds the organization together in times of change and guides
strategic choices and decisions about the future.

A LEADER’S FRAMEWORK FOR NOBLE PURPOSE

• An effective mission statement doesn’t just describe products or services; it captures
people’s idealistic motivations for why the organization exists.
• Most successful companies have missions that proclaim a noble purpose
• Leaders are responsible for framing a noble purpose that inspires and leads followers to
high performance and helps the organization maintain a competitive advantage.
• A noble purpose uplifts people and gives them a sense that what they are doing matters
and makes a positive difference in the world.
• The table below describes four basic approaches leaders take in framing an organizational
purpose that can tap into people’s desire to contribute and feel that their work is worthwhile.

1. DISCOVERY
• Many people are inspired by the opportunity to find or create something new.
• This type of purpose inspires people to see the adventure in their work and experience the
joy of a pioneering or entrepreneurial spirit.
• Discovery for its own sake can serve as a noble purpose.
 It is the case for employees at Google, where people are energized by the psychic
rewards from working on intellectually stimulating & challenging technical problems.
 Samsung Electronics reenergized the company by focusing employees on discovery
rather than imitation, transforming Samsung into a world-class innovator rather than a
manufacturer known for cheap, low-quality knockoffs.
 Samsung invests heavily in research and development and even began threatening
Apple’s dominance in smartphones with the innovative features in its Galaxy phones.
The shift in purpose has led to amazing results at Samsung.
2. EXCELLENCE
• With this approach, rather than emphasizing discovery, leaders focus people on being the
best, both on an individual and an organizational level.
• Excellence is defined by the work itself rather than by customers.
• Indeed, organizations that pursue excellence would rather turn customers away than
compromise their quality.
• In companies with excellence as a guiding purpose, managers and employees are treated
as valuable resources and provided with support to perform at their peak.
• People are motivated by the opportunity to experience intrinsic rewards and personal
fulfilment.
 Consider Apple, another company with excellence as a purpose. The company has
always built high-quality, cleverly designed computers, yet it holds less than 10 percent
of the personal computer market. Leaders would like to increase their share of the
market, but they aren’t willing to sacrifice their commitment to high quality and what they
consider superior technology

3. ALTRUISM
• Many non-profit organizations are based on a noble purpose of altruism because they
emphasize serving others, but businesses can use this approach as well.
• Even financial services companies, frequently perceived as being exploitative, can operate
based on a noble purpose of altruism.
• Any company that puts a high premium on customer service can be considered to fall in
this category as well.
• The basis of action for this type of purpose is to increase personal happiness.
• Most people feel good when they are doing something to help others or make their
communities or the world a better place.
 For example, leaders at Dollar General stress the purpose of giving low-income people a
good deal, not just making sales and profits.
 Team Bank’s mission and values clearly place it in the category of altruism as a guiding
purpose.
 In addition to its business practices, the company provides financial literacy education to
high school students all across Germany and sponsors a lecture series on finance and
economics for a local university.

4. HEROISM
• The final category, heroism, means the company’s purpose is based on being strong,
aggressive, and effective.
• Companies with this basis of noble purpose often reflect almost an obsession with winning.
• People want to feel capable of being effective and producing results.
• Companies that remain successful over the long term have leaders who lead with a noble
purpose.
• A well-chosen noble purpose taps into the emotions and instincts of employees and
customers and can contribute to better morale, greater innovativeness, and higher
employee and organizational performance.
 For examples, Bill Gates imbued Microsoft with a goal of putting the Windows operating
system into every personal computer.
 At General Electric, former CEO Jack Welch wanted the company to strive to be number
one or number two in each industry in which it did business.
VISION
• A vision is an attractive, ideal future that is credible yet not readily attainable.
• It is an ambitious view of the future that everyone involved can believe in, one that can
realistically be achieved, yet one that offers a future that is better in important ways than
what now exists.
• Strong, inspiring visions have been associated with higher organizational performance and
greater employee motivation and satisfaction.

EXTRA
➢

EXTRA
➢ What Vision Does
• Vision Links the Present to the Future
• Vision Energizes People and Focuses Attention
• Vision Gives Meaning to Work
• Vision Establishes a Standard of Excellence and Integrity
➢ Common Themes of Vision
• Vision Has Broad Appeal
• Vision Deals with Change
• Vision Reflects High Ideals
• Vision Defines the Destination and the Journey
➢ Leaders use the following steps to co-create a vision:
• Target a vision for a desired future
• Co-create the vision
• Identify strengths
• Write a first draft
• Solicit feedback and create the final vision statement
• Share the vision widely

HOW TO ACHIEVE THE VISION

• Strategy: General plan of action that describes resource allocation and other activities for:
 Dealing with the environment
 Helping the organization attain its goals
• Leaders have to be clear on the organization’s purpose and vision before they can adopt an
effective strategy.
• Strategy involves making decisions every day based on what the organization wants to do
and be.
A. Developing effective strategy
• Actively listen to people both inside and outside the organization.
• Examine trends and discontinuities in the environment and use them.
• Study past events and anticipate the future.
• Use hard analysis to help set a course for the future.
• They strive to develop industry foresight based on trends in technology, demographics,
government regulation, values, and lifestyles that will help them identify new competitive
advantages.
• Situation analysis, for example, includes a search for SWOT—strengths, weaknesses,
opportunities, and threats—that affect organizational performance.
• Leaders using situation analysis obtain external information from a variety of sources, such
as customers, government reports, suppliers, consultants, or association meetings.
• They gather information about internal strengths and weaknesses from sources such as
budgets, financial ratios, profit-and-loss statements, and employee surveys.
• Sometimes leaders have to shift their strategy several times before they get it right.
• In addition, strategy necessarily changes over time to fit shifting environmental conditions.
➢ EXTRA IN TB
B. Elements of strategy
• To improve the chances for success, leaders develop strategies that focus on three
qualities: core competence, developing synergy, and creating value for customers.
• An organization’s core competencies are something the organization does extremely well
in comparison to competitors.
• Leaders identify the organization’s unique strengths—what makes their organization
different from others in the industry.
• Synergy occurs when organizational parts interact to produce a joint effect that is greater
than the sum of the parts acting alone.
• As a result, the organization may attain a special advantage with respect to cost, market
power, technology, or employee skills.
• Focusing on core competencies and attaining synergy help companies create value for their
customers.
• Value can be defined as the combination of benefits received and costs paid by the
customer.
• Delivering value to the customer is at the heart of strategy.
• Strategy formulation integrates knowledge of the environment, vision, and mission with
the company’s core competence in such a way as to attain synergy and create value for
customers.
• When these elements are brought together, the company has an excellent chance to
succeed in a competitive environment.
• But to do so, leaders have to ensure that strategies are executed—that actual behavior
within the organization reflects the desired direction.
C. How to execute?
• Strategy execution means that leaders use specific mechanisms, techniques, or tools for
directing organizational resources to accomplish strategic goals.
• This is the basic architecture for how things get done in the organization.
• Strategy execution, sometimes called implementation, is the most important as well as the
most difficult part of strategic management, and leaders must carefully and consistently
manage the execution process to achieve results.
 One survey found that only 57 percent of responding firms reported that managers successfully
implemented the new strategies they had devised over the past three years. Other research has estimated
that as much as 70 percent of all business strategies never get implemented, reflecting the complexity of
strategy execution
➢ EXTRA - The following techniques can help leaders effectively implement strategy:
1. Create ongoing communication.
 Leaders must communicate about the strategy continuously so that people throughout
the organization can understand and internalize it.
2. Teach the ‘‘why.’’
 Leaders explain why they decided to do what they are doing.
 Followers are busy doing the everyday work of the organization and often don’t think
about the big picture.
 Leaders have to persuade people of the business reasons for the new vision and
strategy.
3. Explain what this new thing means to each person.
 People are often fearful of change, and that includes fear of a new strategic direction.
 Leaders can anticipate people’s fears and questions -
 what will be expected of me? will I lose my job?
 will my job duties and responsibilities change? - and address them head on.
4. Tell what is not changing.
 It is often a good idea to remind employees about company strengths, what is currently
working, and what will not change.
 People have a hard time taking in new information when they feel that everything around
them is shifting.
 Leaders give people a ‘‘place to stand’’ by telling them what is not changing.

COACHING, MENTORING AND LEADERSHIP

THE NEED FOR COACHING

• Too many managers use a negative approach to managing behavior.

• Alternative: conflict avoidance – and overload the good workers.
• Sometimes the only time the supervisor talks to a worker is when there is a problem.

➢ EXTRA - The following are five ways coaching can contribute at all levels of your organisation.
1. Helping staff adapt to change
2. Improving productivity and performance
3. Making staff feel valued
4. Assisting in the return to work
5. Dealing with challenges more confidently
COACHING – A POSITIVE APPROACH

• An active and positive management approach.

• Employees should know:
 What to do
 How to do it
 Problem solving
• Participative Management
 Workers have a voice in their work.
DEFINITIONS OF COACHING

• No single accepted definition.

• A mutual discussion leading to improved performance and positive relationships.
• A process to encourage employees to:
 Accept responsibility for their actions
 Achieve and sustain superior performance
 Work as partners in achieving organizational goals and effectiveness
• Coaching is the process of giving motivational feedback to maintain and improve
performance

SKILL/WILL MATRIX EXTRA DIAGRAM

• The Skill Will Matrix is a tool that compares willingness to perform a task to the degree of
skill employees have to perform the task well.
• This is plotted on a 2×2 quadrant.
• Each quadrant indicates how the manager should engage with or manage the employees
that fall in that specific quadrant.
 Quadrant I: High Skill, High Will
 Quadrant II: Low Skill, High Will
 Quadrant III: Low Skill, Low Will
 Quadrant IV: High Skill, Low Will
• ‘Skill’ is the competence employees possess to function in their role effectively.
 • People acquire and develop skills through learning and practice.
• Skills can also be measured in terms of proficiency levels – beginner, intermediate,
advance, and expert.
• ‘Will’ signifies the degree of motivation employees have to perform a task or function in a
role.
• Several things can impact employees’ level of will – degree of skill, professional aspirations,
team and organizational culture, and personal life.
(If even more information - https://www.execvision.io/blog/skill-will-matrix/ )
STEPS IN COACHING

• Coaching employees and teams are the most critical role of a manager/supervisor in
business today.
• The success of the employees, team and organization depend on the coaching ability of the
manager/supervisor.
• There are various techniques, styles and approaches available for coaching
• We will look at two approaches
A. The GROW Model
B. The Coaching Discussion Approach
• For whatever approach you might use, coaching is usually done within the context of a
meeting/session between the coach and the employee.
• Such a meeting will provide both parties with the ideal forum to hold an objective
discussion.

A. THE GROW MODEL

1. G – GOAL - What do you want?

➢ Establish the Goal
• First, you and the employee need to look at the behavior that you want to change, and
then structure this change as a goal that s/he wants to achieve.
• Make sure that this is a SMART goal: one that is Specific, Measurable, Attainable,
Realistic, and Time-bound.
 • When doing this, it is useful to ask questions like:
 How will you know that your employee has achieved this goal?
 How will you know that the problem or issue is solved?
 Does this goal fit with his/her overall career objectives?
 And does it fit with the team's objectives?

2. R – REALITY - What is happening now?

➢ Examine the Current Reality
• Next, ask the employee to describe his current reality.
• This is an important step:
 Too often, people try to solve a problem or reach a goal without fully considering their
starting point, and often they're missing some information that they need in order to
reach their goal effectively.
• As your team member tells you about his current reality, the solution may start to emerge.

3. O – OPTIONS - What could you do?

➢ Explore the Options
• Once you and the employee have explored the current reality, it's time to determine what
is possible – meaning all of the possible options for reaching the objective.
• Help the employee brainstorm as many good options as possible. Then, discuss these
and help them decide on the best ones.
• Offer your own suggestions in this step. But let your team member offer suggestions first,
and let him/her do most of the talking. It's important to guide them in the right direction,
without actually making decisions for them

4. W – WILL - What will you do?

➢ Establish the Will
• Finally, decide on a date when you'll both review progress.
• This will provide some accountability, and allow the employee to change his approach if
the original plan isn't working

B. COACHING DISCUSSION APPROACH

The Coaching Discussion Approach has three components:
1. The Five Coaching Guidelines,
2. The Key Principles of Coaching and
3. The Two Process Skills

COACHING DISCUSSION APPROACH

• In the Opening step the key is for the manager to clearly communicate the purpose and
importance of the discussion.
• Clarify, the manager presents all relevant information, issues, and concerns as well as
related facts and figures.
 • Develop, gets the employee involved by collaborating to create solutions.
• Agree, specifies actions, timelines and resources to achieve the solutions
• Close is a final chance to check that both you and the employee are clear on agreements,
next steps and commitments. It is also an opportune time for the manager to voice his/her
confidence in the employee.
• Three of the guidelines:
 Clarify, Develop, and Agree form a cycle that can be repeated as often as necessary to
meet the outcomes of the discussion
• Another component of the Coaching discussion approach are the key principles of
coaching. In order for the process to be successful the key principles must be a part of the
process and embedded in the discussion.
• The five key principles of coaching which need to be incorporated in all coaching sessions
are:
1. Maintain or enhance self-esteem
2. Listen and respond with empathy
3. Ask for help and encourage involvement
4. Share thoughts, feeling and rationale
5. Provide support without removing responsibility
• The two Process Skills that help to ensure the success of the Coaching Discussion
approach are checking for understanding and making procedural suggestions.
1. Checking for understanding is a way to confirm that both the coach and the employee
have the same understanding of what has been discussed during the session.
The most effective way to check for understanding is to summarize the information in
the form of a question and then request confirmation or correction.
2. Making procedural suggestions is an effective way to keep the coaching discussion
process on track, by identifying problems in the process itself and resolving them
quickly.
A good example of this technique is "We seem to have several resources available,
let's narrow our options down to two."
• The final key component of the Approach is the Behavioural Communication Questions.
• If the following questions are answered during the coaching discussion, the likelihood of the
employee being willing and able to perform the agreed-upon behavior is greatly increased:
 How is this relevant to what I do?
 What, specifically, should I do?
 How will I be measured, and what are the consequences?
 What tools and support are available?
 What's in it for me?
• The key to the success of any coaching session is two-way communication combined with
open and honest dialogue.
The five coaching guidelines
MENTORING

• Mentoring is to support and encourage people to manage their own learning in order that
they may maximise their potential, develop their skills, improve their performance and
become the person they want to be.
• The purpose of mentoring is to tap into the existing knowledge, skills, and experience of
senior or high performing employees and transfer these skills to newer or less experienced
employees in order to advance their careers.
• There are three types of mentoring.
1. Traditional One-on-one Mentoring. A mentee and mentor are matched, either through a
program or on their own.
2. Distance Mentoring. A mentoring relationship in which the two parties (or group) are in
different locations.
3. Group Mentoring. A single mentor is matched with a cohort of mentees.
• ASTD reports that over 75% of executives surveyed indicated mentoring as one of the key
factors in their business successes
• Business Finance Magazine reports that 77% of the companies credited mentoring with
increasing employee retention and performance.

MENTORSHIP

• A mentor is an individual with expertise who can help develop the career of a mentee.
• The mentor guides, trains, advises, and promotes the career development of the mentee.
 Two types of mentoring functions: Career & Psychosocial
MENTORING FUNCTIONS
1. CAREER FUNCTIONS: Help the mentee learn the ropes and prepare for career
advancement.
1. Coaching
2. Challenging assignments
3. Exposure and visibility
4. Protection
2. PSYCHOSOCIAL FUNCTIONS: Help the mentee develop a sense of competence & clarity
of identity.
1. Role-Modelling
2. Acceptance and confirmation
3. Counselling
4. Friendship
STAGES OF MENTORING
The 4 phrases introduced by Kathy Kram in her book ‘Mentoring at Work’ are ‘Initiation’,
‘Cultivation’, ‘Separation’ and ‘Redefinition’. Based on Kram’s interpretation, mentoring
relationship is not a procedural but it may move back and forth between the stages within the
mentoring framework. (Not all stages are beneficial to the mentor or to the mentee)
1. Initiation Stage
2. Cultivation Stage
3. Separation Stage
4. Redefinition Stage
1. INITIATION STAGE
• This is the stage where mentor and mentee can establish common ground where they get to
know one another.
• This is the stage to establish relationship and build trust with mentee.
• Informal meeting can be carried out to foster stronger bonding.
• At this stage, mentor can find out about the learning needs of mentee.
• During this stage, peer observation can also be carried out.
• It takes about 6 to 12 months for mentoring relationship to establish.

2. CULTIVATION STAGE
• At this stage, there are frequent interaction opportunities leading to possible mutual
development.
• Relationship is further forged.
• It is the longest period in the mentoring stages that can last from 2 to 5 years.
• During this stage, mentor and mentee can collaborate to carry out projects that can result in
professional development.
• There can also be many challenges as the relationship is being tested through actual work.

3. SEPERATION STAGE
• At this stage, mentee is given autonomy and there will be less frequent meeting with the
mentor.
• During this stage, it will be good to share self-management strategies with mentee.
• Goals and objectives that are not achieved can create disappointment and frustration for
mentee when he/she has more autonomy and need to handle things independently.
• Have an open-door concept where mentee can meet mentor on a need basis to provide a
good listening ear as well as guidance to lead them back on track.

4. REDEFINITION STAGE
• The final stage of mentoring relationship is characterized by a natural redefining of the union
that results from the separation phase.
• The main change is that the hierarchy of the mentor & mentee relationship is no longer at
play, with the two parties becoming equal peers.
• There can be discomfort in the beginning leading to transformation into gratitude of the past
learning journey.
• The fact is that some of these mentees may even have fast promotion opportunities where
they become one of the middle managements very quickly due to their high potential.

ADVANTAGES OF MENTORING
Advantages for the MENTEE:
• Career advancement
• Salary
• Organizational/professional identification
Advantages for the MENTOR:

• Career enhancement
• “Passing the torch to a new generation”
• Learning from mentee – new technologies, new developments, important features of
next generation

DISADVANTAGES OF MENTORING
Disadvantages for the MENTEE:

• Overdependence on the mentor

• Micro-management from the mentor
• Negative halo from mentor who fails
Disadvantages for the MENTOR:

• Mentee dependence on mentor

• Time, energy commitment to mentee
• Negative halo from mentee who fails

CONTEMPORARY ISSUES IN LEADERSHIP

1. Transactional Leader
2. Transformational Leader
3. Level 5 Leader
4. Servant Leaders

1. TRANSACTIONAL LEADERS
• This style is most often used by the managers. It focuses on the basic management process
of controlling, organizing, and short-term planning.
• The famous examples of leaders who use transactional technique include McCarthy & De
Gaulle.
• Transactional leadership involves motivating and directing followers primarily through
appealing to their own self-interest.
• The power of transactional leaders comes from their formal authority and responsibility in
the organization.
• The main goal of the follower is to obey the instructions of the leader.
• The style can also be mentioned as a ‘telling style’.

2. TRANSFORMATIONAL LEADERS
• Transformational leadership is one of the many kinds of leadership that is usually on display
in the real world.
• It results in a complete rejuvenation of the company and a transformation of its place in the
corporate world
• A vision and the ability to translate it into actionable results and actualize it in practice
MODEL OF TRANSFORMATIONAL LEADER

INSPIRATIONAL MOTIVATION

• The foundation of transformational leadership is the promotion of consistent vision, mission,

and a set of values to the members.
• Their vision is so compelling that they know what they want from every interaction.
• Transformational leaders guide followers by providing them with a sense of meaning and
challenge.
• They work enthusiastically and optimistically to foster the spirit of teamwork and
commitment.

INTELLECTUAL STIMULATION

• Leaders encourage their followers to be innovative and creative.

• They encourage new ideas from their followers and never criticize them publicly for the
mistakes committed by them.
• The leaders focus on the “what” in problems and do not focus on the blaming part of it.
• They have no hesitation in discarding an old practice set by them if it is found ineffective.

IDEALIZED INFLUENCE

• They believe in the philosophy that a leader can influence followers only when he practices
what he preaches.
• The leaders act as role models that followers seek to emulate. Such leaders always win the
trust and respect of their followers through their action.
• They typically place their followers needs over their own, sacrifice their personal gains for
them, ad demonstrate high standards of ethical conduct.
• The use of power by such leaders is aimed at influencing them to strive for the common
goals of the organization.
INDIVIDUALIZED CONSIDERATION

• Leaders act as mentors to their followers and reward them for creativity and innovation.
• The followers are treated differently according to their talents and knowledge.
• They are empowered to make decisions and are always provided with the needed support
to implement their decisions.
Examples of transformational leaders

 Late legendary Steve Jobs of Apple,

 Jack Welch of GE,
 NR Narayana Murthy of Infosys.
 Ratan Tata

DIFFERENCE BETWEEN TRANSACTIONAL & TRANSFORMATIONAL DIFFERENCE

TRANSACTIONAL LEADERSHIP TRANSFORMATIONAL LEADERSHIP

Leadership is responsive Leadership is proactive

Works within the organizational culture Work to change the organizational culture by
implementing new ideas

Transactional leaders make employees achieve Transformational leaders motivate and empower
organizational objectives through rewards and employees to achieve company’s objectives by
punishment appealing to higher ideals and moral values

Motivates followers by appealing to their own self- Motivates followers by encouraging them to
interest transcend their own interests for those of the
group or unit

3. LEVEL 5 LEADERS
• Level 5 leaders are modest, shy and fearless and possess the capability to transform an
organization from good to great without portraying themselves as wizards with magic
wands.
• They prefer talking about the company and the contribution of other people but rarely about
their role or achievements
• The Level 5 leadership clearly re-establishes the facts about a simple living and high
thinking with an emphasis on personal humility taught by the older generations.
• The financial breakthroughs achieved by level 5 leaders prove that these characteristics can
achieve tangible results as well.
4. SERVANT LEADERS
• Servant leadership is a philosophy and set of practices that enriches the lives of individuals,
builds better organizations and ultimately creates a more just and caring world.
• While servant leadership is a timeless concept, the phrase “servant leadership” was coined
by Robert K. Greenleaf in The Servant as Leader, an essay that he first published in 1970
• It begins with the natural feeling that one wants to serve, to serve first.
• Then conscious choice brings one to aspire to lead.
• That person is sharply different from one who is leader first, perhaps because of the need to
assuage an unusual power drive or to acquire material possessions.
• The leader-first and the servant-first are two extreme types. Between them there are
shadings and blends that are part of the infinite variety of human nature.
• A servant-leader focuses primarily on the growth and well-being of people and the
communities to which they belong.
• While traditional leadership generally involves the accumulation and exercise of power by
one at the “top of the pyramid,” servant leadership is different.
• The servant-leader shares power, puts the needs of others first and helps people develop
and perform as highly as possible.

SHAPING CULTURE AND VALUES

CULTURE

• Think of culture as the character or personality of an organization

• For e.g.: What will be difference if you visit headquarters of TATAs vs those of Flipkart
• Set of key values, assumptions, understandings, and norms
• Values - beliefs that motivate people to act one way or another.
• They serve as a guide for human behavior
• Norms - shared standards that define what behaviors are acceptable and desirable within a
group of people
• Shared by members of an organization
• Taught to new members
Indian CULTURAL highlights

• There are many India’s within India.

• India is a multilingual, multi-ethnic and pluralistic society, and vast cultural differences
• Big difference between North and South India, East and West India.
• The great Cambridge economist Joan Robinson once observed: “Whatever you can rightly
say about India, the opposite is also true.”
Indian CORPORATE Cultural highlights

• English is the official language of business.

• There is a more formal and hierarchical relationship between managers and staff in India
• Strong interwoven society enhances the value of “relationships” in Indian business

IMPORTANCE OF CULTURE

• It integrates members so that they know how to relate to one another

• It helps the organization adapt to the external environment
a. Internal Integration Culture
 It helps employees develop a collective identity and know how to work together
effectively.
 It is culture that guides day-to-day working relationships and determines how people
communicate in the organization, what behavior is acceptable or not acceptable, and
how power and status are allocated.
 Culture can imprint a set of unwritten rules inside employees’ minds, which can be very
powerful in determining behavior, thus affecting organizational performance.
 In an environment of trust, people are more likely to share ideas, be creative, and be
generous with their knowledge and talents.
 b. External Adaptation
 External Adaptation Culture also determines how the organization meets goals and deals
with outsiders.
 The right cultural values can help the organization respond rapidly to customer needs or
the moves of a competitor.
 Culture can encourage employee commitment to the core purpose of the organization,
its specific goals, and the basic means used to accomplish goals.
 The ‘‘right’’ culture is determined partly by what the organization needs to meet external
challenges.
 The culture should embody the values and assumptions needed by the organization to
succeed in its environment.

INTERNAL INTEGRATION

• Helps develop a collective identity

• Aids members in working together effectively
• Maintains day-to-day working relationships
• Determines how people communicate in the organization
• Determines what behavior is acceptable
• Determines how power and status are allocated

EXTERNAL ADAPTATION

• Determines how the organization meets goals and deals with outsiders
• Helps the organization respond rapidly to customer needs or the moves of a competitor
• Encourages employee commitment to the core purpose of the organization
• Determines what the organization needs to meet external challenges
• Embodies the values and assumptions needed by the organization to succeed

CULTURE STRENGTH

• Degree of agreement among employees about the importance of specific values and ways
of doing things
 Widespread consensus results in a strong and cohesive culture
 Extensive agreement results in a weak culture
• At times strong culture can encourage the wrong values and cause harm
 BSNL, Air India, etc.,

TYPES OF CULTURES

• Cultures can be responsive or resistant

• Culture gap: Difference between desired and actual values and behaviors
• To restructure a culture, leaders should recognize when members are:
 Upholding the wrong values
 Not upholding the important values strongly
RESPONSIVE VERSUS RESISTANT CULTURES

COMBINING CULTURE AND PERFORMANCE

HIGH-PERFORMANCE CULTURE

• Based on a solid organizational mission or purpose

• Embodies shared responsive values that guide decisions and business practices
• Encourages individual employee ownership of both bottom-line results and the
organization’s cultural backbone

CULTURAL LEADERSHIP

• Primary way in which leaders influence norms and values to build a high-performance
culture
• Cultural leader
 Actively uses signals and symbols to influence corporate culture.
 Articulates a vision for the organizational culture that employees can believe in
 Ensures daily activities reinforce the cultural vision

LEADERSHIP
CEREMONIES

• Planned activities that make up a special event and are generally conducted for the benefit
of an audience
• Reinforce specific values
• Create a bond among employees
• Celebrate employees who symbolize important achievements accompanied by presentation
of awards

STORIES

• Narratives based on true events that are repeated frequently and shared among employees
• Used to illustrate the company’s primary values
• May not be supported by facts, but are consistent with the values and beliefs of the
organization

SYMBOLS AND SPECIALIZED LANGUAGE

• Symbol: Object, act, or event that conveys meaning to others
• Leaders can also use physical artifacts to symbolize important values.
• Specialized language is used to express key corporate values
 Slogans or sayings
 Corporate mission statements or other formal statements

SELECTION AND SOCIALIZATION

• Emphasized by leaders to maintain cultural values overtime

• Companies with healthy cultures, have rigorous hiring practices
• Socialization: Enables an individual to fit in with a group by learning the cultural values,
norms, and behaviors. Rituals can be used

ORGANIZATIONAL VALUES

• Enduring beliefs that have worth, merit, and importance for the organization
• Key values should embody what the organization needs to be effective
• Concerns
 Changes in the nature of work
 Globalization
 Increasing diversity in the workforce
 Shifts in the larger society

DIMENSIONS OF ORGANIZATION CULTURE

• Extent to which the competitive environment requires flexibility or stability

• Extent to which the organization’s strategic focus and strength is internal or external
FOUR CORPORATE CULTURES

1. Adaptability Culture
• Characterized by values that support the organization’s ability to interpret and translate
signals from the environment into new behavior responses
 Employees make decisions and act freely to meet needs
 Responsiveness to customers is highly valued
 Leaders create change by encouraging creativity, experimentation, and risk taking
• Examples: Google, Facebook, amazon, flipkart.

2. Achievement Culture
• Characterized by a clear vision of the organization’s goals and leaders’ focus on the
achievement of specific targets
• Results-oriented culture that values:
 Competitiveness
 Aggressiveness
 Personal initiative
 Willingness to work long and hard
• Examples – HUL,

3. Involvement Culture
• Has an internal focus on the involvement & participation of employees
• Places value on meeting the needs of organization members
 • These cultures are also known as “People first culture”
• Leaders:
 Emphasize cooperation, consideration, and fairness
 Avoid status differences
• Examples: Twitter, Southwest Airlines

4. Consistency Culture
• Has an internal focus and consistency orientation for a stable environment
• Supports a methodical, rational, orderly way of doing business
 Following the rules and being thrifty are valued
• Examples: BSNL, BHEL, TATA

ETHICAL VALUES IN ORGANIZATIONS

• Ethics:
 Code of moral principles and values governing the behavior of a person or group
 With respect to what is right and wrong
• Part of the formal policies and informal cultures
• Leaders can create and sustain a climate that emphasizes ethical behavior for all
employees.

VALUE-BASED LEADERSHIP

• It is an influence relationship between leaders and followers that is based on shared,

strongly internalized values
• Values are advocated and acted upon by the leader
 Created by demonstrating a leader’s personal value and by practicing spiritual
leadership.
 Several factors contribute to an individual leader’s values. Every individual brings a set
of personal beliefs, personality characteristics, and behavior traits to the job.
 The family backgrounds and spiritual beliefs of leaders often provide principles and
values by which they conduct business, and these are sometimes incorporated into the
organizational culture.
• Personal values
Leaders have to discover their personal values and the values they want to guide the team
or organization, and actively communicate them
• Spiritual values
 Successful leaders incorporate spiritual values in addition to the traditional mental and
behavioural aspects of leadership
 Values and practices considered as spiritual ideals include integrity, humility, respect,
appreciation for the contributions of others, fair treatment, and personal reflection.
 Spiritual leaders also engage hope and faith to help the organization achieve desired
outcomes.
 Faith is demonstrated through action. Faith means believing in the ability to excel,
exercising self-control, and striving for excellence to achieve a personal best. A leader’s
hope/faith includes perseverance, endurance, stretch goals, and a clear expectation of
victory through effort.