A new perspective on leadership

Journal of the Academy of Business and Economics, March, 2004 by S.N. Chary

ABSTRACT

A new theory is proposed which argues that the vital elements in the making of effectiveness of leadership are (i) Commitment and (ii) Clarity of goals, both with respect to the task at hand. The extent of effectiveness depends upon the extent of these two factors--Commitment being the more dominant factor between the two. The leadership style / behaviour is only an intermediate product. The leader who is high on commitment and clarity could change from one style of leadership to another and anywhere in that continuum, depending upon the need of the task / mission and the goals and sub-goals she/he has to achieve. The effective leader/manager is effective because she/he is committed to the task and is clear about how to achieve it. The same leader/manager may not be effective in another task that does not generate Commitment and Clarity in him. Thus, leadership is task-based; it is neither 'traits-based' nor 'leadership-style' based. Also, leadership effectiveness is not always through direct interaction and therefore her/his styles and behavioural patterns; the influence on the 'influences' could more probably be an indirect process having a relationship with the factors of Commitment and Clarity of goals on the part of the leader with respect to the task at hand.

1. CHANGING NEW WORLD

Strong winds of change are sweeping over the world of business. There are two basic currents--one of technology and another of globalisation, each reinforcing the other. Technology has made globalisation possible and globalisation has made the growth and propagation of technology easier. The result has been an unprecedented connectivity between organisations and between people. The transport and movement of materials and people is quicker. The communication by voice transmission is almost instantaneous. The availability of such services is phenomenal, resulting in increased uniformity of cultures, similarity of role models and more openness of markets.

1.1 Which Type of Leadership Style is Appropriate to the New World of Business?

These, in turn have brought in remarkable changes in the way businesses are conducted worldwide. What used to be an exclusive strategy of a corporation becomes common knowledge and common practice within a very short period of time. So, the strategies and the organisational fabric have to constantly evolve and adjust to the ever-changing situation. In such a scenario, managing people becomes a crucial issue. The people of the organisation have to not only adjust to the constantly changing organisational strategies but also have to contribute to the evolution of the same. They are the creators as well as the implementers of the organisational strategies. What and how should one provide leadership to such a group of people?

2. AVAILABLE LEADERSHIP THEORIES

Leadership theories have broadly been of two kinds: (a) The innate characteristics theory and (b) the behavioural theories.

2.1 'Innate' Characteristics Theories

The proponents of 'innate' characteristics believe in the oft-heard statement 'Leaders are born'. The 'born leader' is supposed to have personal characteristics such as gallantry, dare-the-devil attitude, integrity, self-reliance, honesty, common sense (Gallup, 1987), intelligence, sensitivity, maturity, and creativity among others (Stogdill, 1948). Royals and noblemen used to be described in such characteristics in the bygone days of royalties. While these characteristics are no doubt good, we all know that not all persons possessing these traits in good measure have become the great leaders that they should have or could have been. Which means the personal or 'innate' characteristics alone cannot explain the leader-effectiveness in a satisfactory way. Perhaps, these characteristics need to be seen with respect to their 'setting'. It is also possible that the kind of personal characteristics that are usually thought of are not sufficiently all-inclusive or exhaustive.

2.2 Leadership 'Style' or Leader Behaviour Theories

Since the personal characteristics or traits could not adequately explain their effectiveness in all situations, the research on leadership effectiveness shifted to the study of the 'situation' and what the leader does when dealing with the situation. The thrust of leadership research, since the last few decades, has been on leader behaviour towards the people who need to be influenced. The conventional theories have been uni-dimensional. For instance, there are the much-regurgitated theories 'X' and 'Y'. To put it briefly, one that imposes structure and implements the pre-designed structure, and another that allows much freedom--giving importance to the relationship dimension rather than the task at hand. The Ohio State University studies classify two distinct types of leader behaviour (Kerr and Schriescheim, 1974):

a) Initiating Structure: Consisting of mainly task-oriented behaviour with little regard for personal relationships.

b) Consideration: Consisting of mainly personal relationship-oriented behaviour.