Principle of management report

TABLE OF CONTENTS Contents Page Introduction Theorytical framework on Leadership Leading/Leadership Leader Power Traits Behavioral approaches .5 Studies of Iwoa university Studies of Michigan university Managerial grid Situational approaches 10 Findings and analysis on Leadership .10 Summarizing the content of video 10 Findings and analysis the video 11 Recommendation 13 About leadership powers .13 About the three-style model of Kurt Lewin 14 Conclusion 16 References 17 INTRODUCTION We are living in the world where change is happening quickly in every aspect: Management has changed the way many organizations conduct business activities; the development of information technology has changed traditional concepts about organization and workspace; The rise of service organizations has changed the structure of the economy These changes made things that only a short time ago were considered the principles or template for success, now they are no longer suitable for modern management To succeed, today's and future managers should have the management capabilities to adapt to the demands of the times Managers must understand clearly about management, which is a process of working with and through other people to achieve the goals Management has many different functions, and each function plays a certain important role One of those functions is Leading Leadership is always considered as an indispensable factor for any business regardless of size By the leader is like a captain, who leads the company boat to overcome challenges to achieve the goals In this report, our group will emphasize Leadership theories and show our findings and analysis on Leadership and recommendation for managerial decisions I THEORETICAL FRAMEWORK ON LEADERSHIP LEADING/ LEADERSHIP Leading/ Leadership is a process of influencing other people to act positively to accomplish specified goals LEADER Leader is a person who directs his/her followers toward a common objective, plays roles (such as coaching, supporting, training, and instructing employees) Also, his/her jobs related to improving relationships between leaders and followers, and among followers, and building a positive working environment 2.1 POWERS Leadership Power Coercive Power Legitimate Power Reward Power Expert Power Referent Power 2.1.1 COERCIVE POWER This is the power a leader has to punish or control Followers react to this power out of fear of the negative results that might occur if they don’t comply Managers typically have some coercive power, such as being able to suspend or demote employees or to assign them work find unpleasant or undersirable 2.1.2 REWAD POWER This is the power to give positive rewards A reward can be anyting that a person values such as money, favorable perormance appraisals, promotions, interesting work assignments, friendly colleagues, and preferred work shifts or sales territories 2.1.3 LEGITIMATE POWER Legitimate power and authority are the same Legitimate power represents the power a leader has as a result of his or her position in the organization Although people in positions of authority are also likely to have reward and coercive power, legitimate power is broader than the power to coerce and reward 2.1.4 EXPERT POWER As the title says, a leader has expert power when the followers believe that the leader has “expert” knowledge or skills that are relevant to the job or tasks they have to complete Experienced members or staff of the organization can earn this power and be leaders even though they are neither supervisors nor managers of followers 2.1.5 REFERENT POWER This power is created when the followers believe that the leader possess good qualities making employees admire and would like to be good as the leader As referent power is depend on how the follower views the leader’s pros, the leader will not have the same referent power over every follower 2.2 TRAITS EXTRA VISION EXTRAVISION DRIVE DRIVE JOB-RELEVANT KNOWLEDGE KNOWLEDGE DESIRE DESIRE TO TO LEAD LEAD INTELLIGENCE INTELLIGENCE HONESTY AND INTEGRITY HONESTY AND INTEGRITY SELF-CONFIDENCE SELF-CONFIDENCE  DRIVE: Leaders exhibit a high effort level They have a relatively high desire for achievement, they are ambitious, they have a lot of energy, they are tirelessly persistent in their activities, and they show initiative  DESIRE TO LEAD: Leaders have a strong desire to influence and lead others They demonstrate the willingness to take responsibility  HONESTY AND INTEGRITY: Leaders build trusting relationships with followers by being truthful or non-deceitful and by showing high consistency between word and deed  SELF-CONFIDENCE: Followers look to leaders for an absence of selfdoubt Leaders, therefore, need to show self-confidence in order to convince followers of the rightness of their goals and decisions  INTELLIGENCE: Leaders need to be intelligent enough to gather, synthesize, and interpret large amounts of information, and they need to be able to create visions, solve problems, and make correct decisions  JOB-RELEVANT KNOWLEDGE: Effective leaders have a high degree of knowledge about the company, industry, and technical matters In-depth knowledge allows leaders to make well-informed decisions and to understand the implications of those decisions  EXTRAVERSION: Leaders are energetic, lively people They are sociable, assertive, and rarely silent or withdrawn BEHAVIORAL APPROACH 3.1 STUDIES OF IOWA UNIVERSITY (KURT LEWIN) Authoritarian Participative Leadership Leadership Delegative Leadership Lewin's Leadership Styles Framework (Pair right leader style with right situation) OVERVIEWING THE THREE-STYLE MODEL AUTOCRATIC DEMOCRATIC LAISSEZ-FAIRE Make Individual decision (Leader) Use power Centralized (Leader) Supervise Strictly/Tightly followers (Leader) Require followers Employees obey/listen/follo w Collective (Leaders and Employees themselves Employees) Decentralized (Leaders and Employees empowered Employees) Feedback Outcomes (Employees) Participation Employees being Discussion creative/responsible/active 3.1.1 AUTOCRATIC LEADERSHIP Autocratic leadership is a style, where leaders have a lot of power over their people Everyone but the leader has little opportunity to make any suggestion The leader does not consult employees, nor are they allowed to give any input Authoritarian leader usually determines the specific task for each participant because they often believe that their employees are lack of abilities and need strict guidance and control Thus, it is rigid and inflexible Such leader tends to discourage team’s members, who might resign themselves to fact that the leader will make all of the decisions no matter what others have to contribute Leaders who apply the authoritarian style may very quickly reach the solution they want, but in terms of group morale, the costs are high In many circumstances, the leaders want his/her group to know beyond any doubt that they are in control The leaders are unaware and unconcerned about how people think they are In contrast, authoritarian leaders would be appropriate in some situations, for instance, in a crisis or when time is extremely limited or when the matter under discussion is trivial In the field of military, leaders often use an autocratic leadership style; top commanders are responsible for quickly making complex decisions, which allows troops to focus their attentions and energies on performing their allotted tasks and missions Advantages of this style: Incredibly efficiency; Decisions are made quickly and work gets done efficiently Disadvantages of this style: High levels of absenteeism and high staff turnover can occur 3.1.2 DEMOCRATIC LEADERSHIP Participative leadership, also known as democratic leadership, is a type of leadership style in which members of the group take a more participative role in the decision-making process Everyone is given the opportunity to participate, ideas are exchange freely, and discussion is encouraged While the democratic process tends to focus on group equality and the free flow of ideas, the lead of the group is still there to offer guidance and control The democratic leader is charged with deciding who is in the group and who gets to contribute to the decisions that are made Some of the primary characteristics of participative leadership include: Group members are encouraged to share ideas and opinions, even though the leader retains the final say over decisions; Members of the group feel more engaged in the process; Creativity is encouraged and rewarded Strong participative leaders inspire trust among followers They are sincere and base their decisions on their morals and values Followers tend to feel inspired to take action and contribute to the group Good leaders also tend to seek out diverse opinions and not try to silence dissenting voices or those that offer a less popular point of view Advantages of this style: Team members tend to have high job satisfaction and are productive This style also helps develop people’s skills Team members feel in control of their destiny, so they are motivated to work hard by more than just a financial reward Disadvantages of this style: It can often hinder situations where speed or efficiency is essential For example, during a crisis, a team can waste valuable time gathering people’s input Some team members might not have the knowledge or expertise to provide high quality inputs 3.1.3 LAISSEZ-FAIRE LEADERSHIP This French phrase means “freedom” or “leave it be”, and it describes leaders who allow their people to work on their own This type of leadership can also occur naturally, when managers not have sufficient control over their work and their people Laissez-faire leaders may give their teams complete freedom to their work and set their own deadlines They provide team support with resources and advices, if needed, but otherwise not get involved The laissez-faire leadership style is also known as the “hands-off” style All authority or power is given to the employees and they must determine goals, make decisions, and resolve problems on their own The leader of a laissez-faire gathering always tries to view the discussion from the frame of reference of the member who is speaking Advantages: Giving team members so much autonomy can lead to high job satisfaction and helping to increase productivity Disadvantages: Team members not manage their time well If they not have knowledge, skills, or motivations, they will not their work effectively 3.2 STUDIES OF MICHIGAN UNIVERSITY The focus of the Michigan studies was to determine the principles and methods of leadership that led to productivity and job satisfaction The studies resulted in two general leadership behaviors or orientations: an employee orientation and production orientation For production oriented, leaders consider followers as the tool to achieve the goals Leaders care about technical aspects of the jobs such as process and methods For them, productivity is important For employee oriented, leaders care about relationships with followers Leaders want to understand needs and wants of followers They accept individual differences They want to have loyalty and commitment of followers 3.3 MANAGERIAL GRID Developed by R R Blake and J S Mouton, the Managerial Grid Model helps Managers to analyze their own leadership styles through a technique known as grid training There are two dimensions of leadership, viz concern for people on ‘vertical’ axis and concern for production on ‘horizontal’ axis The five resulting leadership styles are as follows: Advantages of the Managerial Grid Model: Managers help to analyze their own leadership styles through a technique known as grid training Managers also identify how they with respect to their concern for production and people Limitations of the Managerial Grid Model: The model ignores the importance of internal and external limits, matter and scenario And there is some more aspect of leadership that can be covered but are not SITUATIONAL APPROACHES The situational theory of leadership suggests that no single leadership style is best Instead, it all depends on the situation at hand and which type of leadership and strategies are best-suited to the task According to this theory, the most effective leaders are those that are able to adapt their style to the situation and look at cues such as the type of task, the nature of the group, and other factors that might contribute to getting the job done Hersey and Blanchard suggested that there are four primary leadership styles: TELLING: Individuals lack the specific skills required for the job in hand and they are willing to work at the task They are novice but enthusiastic SELLING: Individuals are more able to the task; however, they are demotivated for this job or task Unwilling to the task PARTICIPATING: Individuals are experienced and able to the task but lack the confidence or the willingness to take on responsibility DELIGATING: Individuals are experienced at the task, and comfortable with their own ability to it well They are able and willing to not only the task, but to take responsibility for the task II FINDINGS AND ANALYSIS ON LEADERSHIP SUMMARIZING THE CONTENT OF VIDEO Hitler and his subordinates convened an emergency meeting to deliberate strategy about make repeated attacks on the cities occupied by the enemy Hitler was confident that he would succeed but his subordinates reported that the army didn't have enough troops to make a counter attack He still gave an order to attack but his subordinates refused to carry out an order He was fly into a fit of madness after hearing that He blustered and reviled in his soldiers and he had doubts about their abilities Hitler reckoned that he was betrayed by his followers and he brought out the punishment as the threaten: use death penalty with senior soldiers He was hopeless because 10 he did not realize his aspirations But after all he still determined not to surrender to the enemy FINDING AND ANALYSIS THE VIDEO a, Adolf Hitler have two power of leadership : REFERENT POWER: He made subordinates admire with his pros in his way of speaking, his self-confidence, his vision and his connection to people They would like to be good as him The German people were truly grateful to Hitler in the first stage for the great contribution he had done, which no one could such as unifying power, restoring order and developing economy In addition, he is quite friendly with those around him, his close associates always stand side by side with him in the war and share power with him in the lower position COERCIVE POWER: He would have punished and controlled his subordinates if they hadn’t complied his plan or make negative results He suspend or demote them or to assign them work find unpleasant or undersirable He scold them: “They are cowards, traitors and failures!”,“Our generals are just a bunch of comtemptible, disloyal cowards” b, Hitler has personal characteristics of a leader Here are some Hitler’s traits : DRIVE: He had a high desire for achievement, he was ambitious and he had a lot of energy He was tirelessly persitent in his activities and they showed initiative He tried to everything with high effort to defeat the enemy INTELLIGENCE: He gathered, synthesized and interpreted large amounts of information He created visions, solved problems and made correct decisions He has a vision, has a separate ideology presented in the book “My struggle” Although his ideology is distorted in the eyes of outsiders, it is very true to that of Germans 11 HONESTY: He was non-deceiful He showed high consistency between word and deed DESIRE TO LEAD: He had strong desire to influence and lead others He demonstrated the willingness to take responsibility SELF-CONFIDENCE: He convinced his subordinates of the rightness of his goals and decisions He said: “Who you think you are to dare disobey an order that I give?” EXTRAVERSION: He was energetic person, sociable, assertive and rarely silent or withdrawn because interpretation is a great weapon of Hitler Hitler was able to persuade others, despite his temper, but when needed to persuade someone, the results was positive c, According to the BEHAVIORAL THEORY, Hitler has AUTOCRATIC LEADERSHIP : HITLER’S Make decision AUTOCRATIC LEADERSHIP Using the authoritarian leadership style allowed Hitler to take all political, economic, military and diplomatic decisions No one has the right to Use power oppose or to defeat his conspiracy Hitler seized autocratic leadership in the Party: he deleted the Party Central Committee, took sole control of the Party Hitler assumed full political power He is not only the head of state, he is also the supreme commander of the Armed Forces, and holds the position of chief of staff of the army, commanding three armies: Army, Air Force Supervise followers and Navy Hitler severely criticized his officers for not Require followers following his duties Hitler said: “I did not ask the generals to 12 understand my command, but only to obey them.” He likes to dictate, forcing others to follow him He was willing to kill all people who disobeyed him III RECOMMENDATION ABOUT LEADERSHIP POWERS The similarity of the powers is that they are created by the followers’ belief, if the follower does not hold the requisite belief then the leader is not able to influence them o Reward power needs followers to believe the leader will reward them deservedly o Coercive power needs followers to believe the leader will punish them o Legitimate power need followers to believe the leader has the right to instruct them o Expert power needs followers to believe the leader is an expert o Referent power needs followers to believe the leader has desirable qualities Beliefs alone determine the type of powers a leader has over the follower; whether the follower’s beliefs are correct is irrelevant Each of the leadership powers can be used by themselves or combined so that the leader will have maximum influence The use of one power could lead to a decrease in another For instance, coercive power may decrease the leaders’ referent power, if it causes the followers to change their mind about the leader’s qualities ABOUT THE THREE-STYLE MODEL OF KURT LEWIN Each of the styles has pros and cons The styles should be applied in differently suitable and appropriate contexts, situations, time to maximize the benefits they bring to 2.1 AUTOCRATIC LEADERSHIP Appropriate situations: Untrained employees who not know which tasks to perform or which procedures to follow Effective supervision can 13 be provided only through detailed orders and instructions Employees not respond to any leadership style There are high-volume production needs on a daily basis There is limited time in which to make a decision A leader’s power is challenged by an employee The area was poorly managed Work needs to be coordinated with another department or organization Not appropriate situations: Employees become tense, fearful, or resentful; Employees expect to have their opinions heard; Employees begin depending on their leader to make all their decisions; There is low employee morale, high turnover and absenteeism and work stoppage 2.2 DEMOCRATIC LEADERSHIP Appropriate situations: The leader wants to keep employees informed about matters that affect them The leader wants employees to share in decision-making and problem-solving duties The leader wants to provide opportunities for employees to develop a high sense of personal growth and job satisfaction There is a large or complex problem that requires lots of input to solve Changes must be made or problems solved that affect employees or groups of employees The leader wants to encourage team building and participation When working as a team is essential, and when quality is more important than efficiency or productivity Not appropriate situations: There is not enough tie to get everyone’s input; It is easier and more cost-effective for the manager to make the decision; The business cannot afford mistakes; The manager feels threatened by this type of leadership and employees safety is a critical concern 2.3 LAISSEZ-FAIRE LEADERSHIP Appropriate situations: Employees are highly skilled, experienced, and educated Employees have pride in their work and the drive to it successfully on their own Outside experts, such as staff specialists or consultants are being used and employees are trustworthy and experienced Not appropriate situations: It makes employees feel insecure at the unavailability of a leader The leader cannot provide regular feedback to let employees know how well they are doing Leaders are unable to thank 14 employees for their good work The leader does not understand his/her responsibilities and is hoping the employees can cover for him/her CONCLUSION Management skills are significant for all managers, all organizations and in all aspects of life The skills also are critical equipment for anyone who wants to be a good leader The leader is the one who lead the follower to the right directions of achieving specific goals With seven traits and five powers, leaders are different from non-leader people They know how to lead and able to convince others’ belief so that the leaders have maximum influence There are many ways, methods, theories in leadership None of them is the best nor the worst As a leader, he/she must get visions about contexts, situations to applied creatively leadership styles to direct, coach, train, support and motivate employees 15 And, in return, a successful leader will be paid a huge amount of efforts from his/her employees, and able to bring maximum benefits to the team, to the organization REFERENCES Management 11th Edition by Stephen P Robbins and Mary Coulter Stephen P Robbins; David A Decenzo and Mary Coulter (2011), Fundamentals of Management: Essential concepts and applications, 7th ed Prentice Hall J H Donnelly; J L Gibson, John M Ivancevich (2003) Fundamentals of Management McGraw-Hill Higher Education Harold Koontz; Odonnell, Weihrich (2007) Essentials of Management 7th edition, McGraw-Hill Higher Education 16 17 ... control of the Party Hitler assumed full political power He is not only the head of state, he is also the supreme commander of the Armed Forces, and holds the position of chief of staff of the... they will not their work effectively 3.2 STUDIES OF MICHIGAN UNIVERSITY The focus of the Michigan studies was to determine the principles and methods of leadership that led to productivity and job... suitable for modern management To succeed, today's and future managers should have the management capabilities to adapt to the demands of the times Managers must understand clearly about management,