MGMT10002 Lecture Notes - Lecture 6: Reinforcement
PRINCIPLES OF MANAGEMENT WEEK 6
Leading in Organisations
Leadership the ability to influence people towards the attainment of organisational goals. Has three components:
Leader(traits, behaviours, styles), Followers (levels of experience, leadership expectations, willingness to obey etc.)
and Situation (organisational culture, types of tasks, formal authority system etc.).
Trait theories: the basic premise that leaders are born (personality, social, physical, intellectual or other
characteristics differentiate leaders from non-leaders). Recent trait research shows leaders to be credible, honest,
forward-looking, inspiring and competent. The limitations of trait theories include those that endless lists have
emerged, this shows that traits are better predictors of the appearance of leadership rather than determinants of an
effective leader. This does not take into account of situational effects. There is also limited usefulness for training and
development.
Behavioural theories: Implies leaders can be made, leadership is not seen as a set of characteristics/traits but as a
set/style of behaviours which help others perform a task and reach their goals. These people are task-
oriented(providing structure, direction and aiding performance) and people-oriented (demonstrating respect, concern
and care for the well-being of others).
Full range leadership model:
Transactional Leadership:
Management by Exception: corrective criticism, negative feedback, negative reinforcement.
Contingent reward: Obtains agreement from followers on what must be done; builds on exchange and
communication; negotiates the pay-offs; leads followers to achieve goals.
Transformational Leadership:
Idealised influence or charisma: Acts as a role model; promotes high standard of moral and ethical conduct;
conveys a sense of mission; leads followers to higher purpose.
Inspirational motivation: Communicates high expectations to followers, uses symbols and emotional appeals
to communicate a shared vision, leads followers to believe in a better future.
Intellectual Simulation: Stimulates followers to be more creative and challenge their beliefs; creates a
“thinking outside the box” climate; leads followers to new solutions.
Individualised Consideration: Provides a supportive climate; listens carefully; takes care of people; leads
followers to self-actualisation.
Contingency/Situational Theories: The appropriate style of leadership is contingent on the requirements of the
particular situation. Effective leaders diagnose the readiness level of their followers (based on experience, perceived
ability, confidence, willingness to work) and adjust their style accordingly.
The Full-range Model:
LEADERSHIP FOR EXPLOITATION LEADERSHIP FOR EXPLORATION AND
CHANGE
Transactional Leadership Transformational Leadership
Goal Achievement, excellence “do it better” Ext. Performance, transformation “change the way of
doing”
Communication, participation Empowerment, modelling
Negotiation Identification
Performance based- reward Personal Change
High formalisation, centralisation Low formalisation, decentralisation
Running established business, restructuring Creating new business, turnaround
Stability, revitalisation, mature markets Crisis, transition, emergent markets
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Document Summary
Leadership the ability to influence people towards the attainment of organisational goals. Leader(traits, behaviours, styles), followers (levels of experience, leadership expectations, willingness to obey etc. ) and situation (organisational culture, types of tasks, formal authority system etc. Trait theories: the basic premise that leaders are born (personality, social, physical, intellectual or other characteristics differentiate leaders from non-leaders). Recent trait research shows leaders to be credible, honest, forward-looking, inspiring and competent. The limitations of trait theories include those that endless lists have emerged, this shows that traits are better predictors of the appearance of leadership rather than determinants of an effective leader. This does not take into account of situational effects. There is also limited usefulness for training and development. Behavioural theories: implies leaders can be made, leadership is not seen as a set of characteristics/traits but as a set/style of behaviours which help others perform a task and reach their goals.