LEADERSHIP AND

CHANGE MANAGMENT
CHAPTER ONE

INTRODUCTION
TO LEADERSHIP
 1. Leadership Definition

Keith Davis, “Leadership is the ability to persuade others

to seek defined objectives enthusiastically.
 It is the human factor that binds a group together and
motivates toward goals.
Gupta, “Leadership may be defined as a process of
influencing the action of individuals as members of a group
to achieve the desired goal in a given situation use of force
by the leader.
Robbins:-leadership is the ability to influence a group
toward the achievement of goals.
 CON,T
Hodge and Johnson: “leadership is fundamentally the ability
to form and mould the attitudes and behaviour of other
individuals, whether informal or formal situation and that
management relates to the formal task of decision and
command.”
Ivancevich, Szilagyi and Wallace, “as the relationship
between two or more people in which one attempts to influence
the other toward the accomplishment of some goal or goals.
Thus, leadership is a process of influencing other people to
mobilise and direct their efforts towards certain goals and to
accomplish these goals through them.
 CON’T

• First, leadership involves exerting influence over

other members of a group or organization.
• Second, leadership involves helping a group or
organization achieve its goals.
• Combining these two key characteristics we can define
leadership as the exercise of influence by one member of
a group or organization over other members to help the
group or organization achieve its goals.
• The leaders of a group or organization are the individuals
who exert such influence.
 CON’T
• Leadership effectiveness is the extent to which a leader
actually does help a group or organization to achieve its
goals.
• An effective leader helps achieve goals: an ineffective
leader does not.
Leaders influence their subordinates' or followers’:-
• levels of motivation,
• performance absenteeism and
• turnover and the quality of their decision making
 CON’T
• All leaders exert influence over members of a group or organization.
• Some leaders, however have formal authority to do so while others do not!

• Formal leaders are those managers who are given the authority to
influence other members in the organization to achieve its goals. With this
authority comes the responsibility to make the best use of all organization's
resources, including its money and capital and the abilities and skills of its
employees. Note that not all managers are leaders some managers do not
have subordinates who report to them.
 Con’t
• For example, the accounting manager of a restaurant who is
responsible for keeping the books is a manager but not a
formal leader this person could be an informal1cader
however.
• Informal leaders have no formal job authority to influence
others but sometimes exert just as much influence in an
organization as formal leaders and sometimes even more.
The ability of informal leaders to influence others often
stems from special skills or talents they possess-skills the
organization's members realize will help it achieve its goal.
 Leadership Vs Management
• What is the difference between a manager and a leader?
• Leadership and management are two terms that are often confused.
John Kotterof:-the Harvard Business School argues that “managers
promote stability while leaders press for change and only
organizations that embrace both sides of the contradiction can survive
in turbulent times.”
 Professor RabindraKanungo at McGill University sees a growing consensus emerging “among management
scholars that the concept of ‘leadership’ must be distinguished from the concept of
‘supervision/management.’’ Leaders provide vision and strategy; managers implement that vision and
strategy, coordinate and staff the organization, and handle day-to-day problems.
 Con’t
• The distinction between management and leadership is
not either-or; rather, it’s a balance.
• While powerful leaders are more than just excellent
managers, an essential aspect of their credibility stems
from their management expertise.
• Keep in mind that the distinction between management
and leadership is not a dichotomy,/contrast/ but rather
a blend or balance. Both are needed in today’s
knowledge-based organizations
 Distinguishing Leadership from Management
Management Leadership
Engages in day-to-day caretaker activities: Maintains and Formulates long-term objectives for
allocates resources reforming the system: Plans strategy and
tactics
Exhibits supervisory behaviour: Acts to make others maintain Exhibits leading behaviour: Acts to
standard job behaviour bring about change in others congruent
with long-term objectives
Administers subsystems within organizations Innovates for the entire organization
Asks how and when to engage in standard practice Asks what and why to change standard
practice
Acts within established culture of the organization Creates vision and meaning for the
organization
Uses transactional influence: Induces compliance in manifest Uses transformational influence:
behaviour using rewards, sanctions, and formal authority Induces
change in values and expertise
Relies on control strategies to get things done by Uses empowering strategies to make
subordinates followers internalize values
 Con’t

Manager Leadership
Status quo supporter and stabilizer Status quo challenger and change creator
Success based on predictability Success based on innovation and adaptation

Plans Energy
Defines vision and purpose statements Lives vision and purpose
Does things right Does the right things
Top-down strategy Leadership at all levels; everyone strategic

Measurement of activities Measurement of results

“Head stuff” (e.g., behaviour, compliance) “Heart stuff” (e.g., morale, commitment)
Sources of Leaders Power/Influence in Organizations.
• Power as the ability of one person to cause another person
to do something they otherwise might not do.
• Formal individual power is the power that originates from
a person’s position in an organization.
• Authority is the formal power a person holds because of
their position in the organizational hierarchy.
• According to this definition, upper level supervisors would
have authority over lower level supervisors in their
organizational structure.
 Legitimate Power

• Legitimate power is the power assigned to a given position within

an organizational structure.

• Should the individual leave the position, the power remains with the
position and does not follow the individual.
 Reward Power
• Reward power is also inherent within the organizational structure in that
managers are given administrative control over a range of rewards and resources.

• Employees can be influenced by the possibility of receiving rewards in exchange

for performing work.

• Organizational rewards are typically of monetary value; but they may also be
more subtle and intangible, such as managerial praise, status, attention,
scheduling, and promotion.

• Managers may offer a wide range of rewards to motivate work performance.

 Con’t
• Coercive Power

Coercive power is based upon a leader’s ability potentially to punish or dismiss an

employee and is, in part, implied by a leader’s legitimate power.
• Punishment is defined by a range of options, from a mild warning to a
suspension to termination of employment, all of which are assumed to have
negative consequences for the person being punished.
 Con’t
• Expert Power

• Expert power is complex and is associated with the particular qualifications

possessed by an individual, including specialized skills, knowledge, abilities,
or previous experience.

• Any of these qualifications may enable the individual to exercise influence

based on these qualifications, especially when the organization needs and
values the specialized skills, knowledge, abilities, or experience; the skills are
scarce; or the skills are highly specialized.
 Con’t

• Because expert power is often derived from specialized knowledge or

advanced education, it can be relatively unrelated to age, seniority, or time on
the job.

• This form of power allows someone who is relatively young or new to the
workforce to influence others within the organization.

• Expert power is often associated with innovation and the power to influence
change within an organization.
 Referent Power
• Referent power is the power of one individual to influence another by force of character or
personal charisma.

• An individual may be admired because of a specific personal trait, and this admiration
creates the opportunity for interpersonal influence within a group or organization.

• Advertisers have long recognized referent power in making use of sports figures and other
charismatic persons for making product endorsements. An employee who is particularly
handsome or beautiful, talented, or just plain likable may be described by fellow
employees as inspiring and motivating; thus, endowing the individual with a potential to
influence others as a result of these personal qualities.
 Con’t
• An interesting feature of referent power is that it can be gained by association.
An individual’s power may derive, not from their personality, but from their
association, relative position or reporting relationship with another person who is
identified as possessing power within the organization.

• Referent power is most often associated with leaders who possess the
charismatic characteristics that followers admire.

• It is important to note that some managers also have referent power and can use
this to exhort followers to accomplish tasks and achieve goals.
 Information Power

• Information power is power that comes from access to and control over information within the organization.

Information may be privileged information; it may be classified information; or it may simply be information
to which subordinates do not have access.

• The more information a person has within the organization, the more power that person has. Thus,
information is viewed as a valuable resource.

• This is where a key difference between leaders and managers comes into play: Leaders, in most cases, want
their subordinates to know more information, because it is easier to solicit the assistance of informed
followers in achieving goals and objectives. Managers, on the other hand, may be reluctant to share
information if they perceive it as power-sharing and believe that their power to control subordinates and direct
their behaviour may be lost if their subordinates know as much as they do. Thus, managers believe that
information sharing means losing a measure of control over subordinates.
 Con’t
• All in all, both formal and informal leaders exercise influence with an
organization by some combination of these forms of power.
• Formal leaders typically possess legitimate power by virtue of their position
within the organization.
• Their degree of control over organizational resources enables them to use
reward power to influence performance.
• They may also possess coercive power to the extent they can discipline
employees and affect decisions to hire or terminate employees.
•
Con’t
• Formal leaders in complex organizations typically possess
varying degrees of expert power, which enables them to
influence decisions across functional areas of an
organization.
• Depending on their position within an organization, formal
leaders may also use varying degrees of referent power to
influence decisions or performance.
• Informal leaders, by virtue of their position within an
organization, are less likely to possess legitimate power or
coercive power.
 Con’t
• Instead, they are more likely to rely upon a combination of expert power,
reward power and referent power to influence others. Informal leaders often
use expert power to influence change or innovation because their expertise
enables them to solve problems in new or creative ways and to develop new
products or services.

• Informal leaders may not control organizational resources typically associated

with tangible or monetary rewards, but they may use intangible forms of
reward power such as attention to motivate and influence others.
 Con’t
• Informal leaders may also use referent power to influence others by means of
charismatic qualities or reflected authority that is based upon their association
with more powerful individuals.

• Thus, leadership, influence, and power within an organization can be viewed

in terms of formal and informal leaders who use legitimate power, reward
power, coercive power, expert power and referent power in different
combinations.
 Con’t

1.What makes effective leader?

• Effective leaders have many common qualities. Good group
leaders make an effort to learn and practice skills so they can:
listen to others openly, offer and accept constructive
suggestions, give clear directions, set and deadlines give
formal and informal presentations, help member’s identity
and solve problems.
 Con’t

• Effective leaders are characterised by the followings:

a. They are honest: This gives them credibility, resulting in the trust and confidence of their people,
credible leader foster greater pride in the organization, a stronger sprit of coordination, and team work, and
more feelings of ownership and personal responsibility.

b. Effective leaders want do what they will do they keep their promises and follow through on their
commitment.

c. Consistent: The make sure their actions are consistent with the wishes of the people the lead. They have
clear idea of what others value and what they can do.

d. They believe in the inherent self-worth of others. self confidence of others

e. They admit to their mistakes. They realize that attempting to hide a mistake is damaging and erodes
credibility.
 Con’t

f. They create trusting and open climate

g. They help others successful and feel empowered.
h. They don’t push too much. They encourage members
to do more, but know when it is too much
i. They avoid phrases that cause resentment, reluctance
and resistance. For instance, instead of saying you have
to do something, effective leaders request or
recommend that member that member’s do something.
THANK YOU