Wednesday 13 July 2011

leadership~

Theories
Leadership is "organizing a group of people to achieve a common goal." The leader may or may not have any formal authority. Students of leadership have produced theories involving traits,[1] situational interaction, function, behavior, power, vision and values,[2] charisma, and intelligence among others.

[edit] Early history

The search for the characteristics or traits of leaders has been ongoing for centuries. History's greatest philosophical writings from Plato's Republic to Plutarch's Lives have explored the question of "What qualities distinguish an individual as a leader?" Underlying this search was the early recognition of the importance of leadership and the assumption that leadership is rooted in the characteristics that certain individuals possess. This idea that leadership is based on individual attributes is known as the "trait theory of leadership."
This view of leadership, the trait theory, was explored at length in a number of works in the previous century. Most notable are the writings of Thomas Carlyle and Francis Galton, whose works have prompted decades of research. In Heroes and Hero Worship (1841), Carlyle identified the talents, skills, and physical characteristics of men who rose to power. In Galton's (1869) Hereditary Genius, he examined leadership qualities in the families of powerful men. After showing that the numbers of eminent relatives dropped off when moving from first degree to second degree relatives, Galton concluded that leadership was inherited. In other words, leaders were born, not developed. Both of these notable works lent great initial support for the notion that leadership is rooted in characteristics of the leader.
For decades, this trait-based perspective dominated empirical and theoretical work in leadership.[3] Using early research techniques, researchers conducted over a hundred studies proposing a number of characteristics that distinguished leaders from nonleaders: intelligence, dominance, adaptability, persistence, integrity, socioeconomic status, and self-confidence just to name a few.[4]

[edit] Rise of alternative theories

In the late 1940s and early 1950s, however, a series of qualitative reviews of these studies (e.g., Bird, 1940;[5] Stogdill, 1948;[6] Mann, 1959[7]) prompted researchers to take a drastically different view of the driving forces behind leadership. In reviewing the extant literature, Stogdill and Mann found that while some traits were common across a number of studies, the overall evidence suggested that persons who are leaders in one situation may not necessarily be leaders in other situations. Subsequently, leadership was no longer characterized as an enduring individual trait, as situational approaches (see alternative leadership theories below) posited that individuals can be effective in certain situations, but not others. This approach dominated much of the leadership theory and research for the next few decades.

[edit] Reemergence of trait theory

New methods and measurements were developed after these influential reviews that would ultimately reestablish the trait theory as a viable approach to the study of leadership. For example, improvements in researchers' use of the round robin research design methodology allowed researchers to see that individuals can and do emerge as leaders across a variety of situations and tasks.[8] Additionally, during the 1980s statistical advances allowed researchers to conduct meta-analyses, in which they could quantitatively analyze and summarize the findings from a wide array of studies. This advent allowed trait theorists to create a comprehensive and parsimonious picture of previous leadership research rather than rely on the qualitative reviews of the past. Equipped with new methods, leadership researchers revealed the following:
  • Individuals can and do emerge as leaders across a variety of situations and tasks[8]
  • Significant relationships exist between leadership and such individual traits as:
While the trait theory of leadership has certainly regained popularity, its reemergence has not been accompanied by a corresponding increase in sophisticated conceptual frameworks.[3]
Specifically, Zaccaro (2007)[3] noted that trait theories still:
  1. Focus on a small set of individual attributes such as Big Five personality traits, to the neglect of cognitive abilities, motives, values, social skills, expertise, and problem-solving skills
  2. Fail to consider patterns or integrations of multiple attributes
  3. Do not distinguish between those leader attributes that are generally not malleable over time and those that are shaped by, and bound to, situational influences
  4. Do not consider how stable leader attributes account for the behavioral diversity necessary for effective leadership

[edit] Attribute pattern approach

Considering the criticisms of the trait theory outlined above, several researchers have begun to adopt a different perspective of leader individual differences - the leader attribute pattern approach.[15][16][17][18][19] In contrast to the traditional approach, the leader attribute pattern approach is based on theorists' arguments that the influence of individual characteristics on outcomes is best understood by considering the person as an integrated totality rather than a summation of individual variables.[18][20] In other words, the leader attribute pattern approach argues that integrated constellations or combinations of individual differences may explain substantial variance in both leader emergence and leader effectiveness beyond that explained by single attributes, or by additive combinations of multiple attributes.

[edit] Behavioral and style theories

In response to the early criticisms of the trait approach, theorists began to research leadership as a set of behaviors, evaluating the behavior of 'successful' leaders, determining a behavior taxonomy and identifying broad leadership styles.[21] David McClelland, for example, Leadership takes a strong personality with a well-developed positive ego. Not so much as a pattern of motives, but a set of traits is crucial. To lead; self-confidence and a high self-esteem is useful, perhaps even essential.[22][Kevin Mick]
A graphical representation of the managerial grid model
Kurt Lewin, Ronald Lipitt, and Ralph White developed in 1939 the seminal work on the influence of leadership styles and performance. The researchers evaluated the performance of groups of eleven-year-old boys under different types of work climate. In each, the leader exercised his influence regarding the type of group decision making, praise and criticism (feedback), and the management of the group tasks (project management) according to three styles: authoritarian, democratic and laissez-faire.[23]
The managerial grid model is also based on a behavioral theory. The model was developed by Robert Blake and Jane Mouton in 1964 and suggests five different leadership styles, based on the leaders' concern for people and their concern for goal achievement.[24]

[edit] Positive reinforcement

B.F. Skinner is the father of behavior modification and developed the concept of positive reinforcement. Positive reinforcement occurs when a positive stimulus is presented in response to a behavior, increasing the likelihood of that behavior in the future.[25] The following is an example of how positive reinforcement can be used in a business setting. Assume praise is a positive reinforcer for a particular employee. This employee does not show up to work on time every day. The manager of this employee decides to praise the employee for showing up on time every day the employee actually shows up to work on time. As a result, the employee comes to work on time more often because the employee likes to be praised. In this example, praise (i.e. stimulus) is a positive reinforcer for this employee because the employee arrives (i.e. behavior) to work on time more frequently after being praised for showing up to work on time.
The use of positive reinforcement is a successful and growing technique used by leaders to motivate and attain desired behaviors from subordinates. Organizations such as Frito-Lay, 3M, Goodrich, Michigan Bell, and Emery Air Freight have all used reinforcement to increase productivity.[26] Empirical research covering the last 20 years suggests that reinforcement theory has a 17 percent increase in performance. Additionally, many reinforcement techniques such as the use of praise are inexpensive, providing higher performance for lower costs.

[edit] Situational and contingency theories

Situational theory also appeared as a reaction to the trait theory of leadership. Social scientists argued that history was more than the result of intervention of great men as Carlyle suggested. Herbert Spencer (1884) said that the times produce the person and not the other way around.[27] This theory assumes that different situations call for different characteristics; according to this group of theories, no single optimal psychographic profile of a leader exists. According to the theory, "what an individual actually does when acting as a leader is in large part dependent upon characteristics of the situation in which he functions."[28]
Some theorists started to synthesize the trait and situational approaches. Building upon the research of Lewin et al., academics began to normatize the descriptive models of leadership climates, defining three leadership styles and identifying which situations each style works better in. The authoritarian leadership style, for example, is approved in periods of crisis but fails to win the "hearts and minds" of their followers in the day-to-day management; the democratic leadership style is more adequate in situations that require consensus building; finally, the laissez faire leadership style is appreciated by the degree of freedom it provides, but as the leader does not "take charge", he can be perceived as a failure in protracted or thorny organizational problems.[29] Thus, theorists defined the style of leadership as contingent to the situation, which is sometimes classified as contingency theory. Four contingency leadership theories appear more prominently in the recent years: Fiedler contingency model, Vroom-Yetton decision model, the path-goal theory, and the Hersey-Blanchard situational theory.
The Fiedler contingency model bases the leader's effectiveness on what Fred Fiedler called situational contingency. This results from the interaction of leadership style and situational favorableness (later called "situational control"). The theory defined two types of leader: those who tend to accomplish the task by developing good-relationships with the group (relationship-oriented), and those who have as their prime concern carrying out the task itself (task-oriented).[30] According to Fiedler, there is no ideal leader. Both task-oriented and relationship-oriented leaders can be effective if their leadership orientation fits the situation. When there is a good leader-member relation, a highly structured task, and high leader position power, the situation is considered a "favorable situation". Fiedler found that task-oriented leaders are more effective in extremely favourable or unfavourable situations, whereas relationship-oriented leaders perform best in situations with intermediate favourability.
Victor Vroom, in collaboration with Phillip Yetton (1973)[31] and later with Arthur Jago (1988),[32] developed a taxonomy for describing leadership situations, taxonomy that was used in a normative decision model where leadership styles were connected to situational variables, defining which approach was more suitable to which situation.[33] This approach was novel because it supported the idea that the same manager could rely on different group decision making approaches depending on the attributes of each situation. This model was later referred as situational contingency theory.[34]
The path-goal theory of leadership was developed by Robert House (1971) and was based on the expectancy theory of Victor Vroom.[35] According to House, the essence of the theory is "the meta proposition that leaders, to be effective, engage in behaviors that complement subordinates' environments and abilities in a manner that compensates for deficiencies and is instrumental to subordinate satisfaction and individual and work unit performance.[36] The theory identifies four leader behaviors, achievement-oriented, directive, participative, and supportive, that are contingent to the environment factors and follower characteristics. In contrast to the Fiedler contingency model, the path-goal model states that the four leadership behaviors are fluid, and that leaders can adopt any of the four depending on what the situation demands. The path-goal model can be classified both as a contingency theory, as it depends on the circumstances, but also as a transactional leadership theory, as the theory emphasizes the reciprocity behavior between the leader and the followers.
The situational leadership model proposed by Hersey and Blanchard suggests four leadership-styles and four levels of follower-development. For effectiveness, the model posits that the leadership-style must match the appropriate level of followership-development. In this model, leadership behavior becomes a function not only of the characteristics of the leader, but of the characteristics of followers as well.[37]

[edit] Functional theory

Functional leadership theory (Hackman & Walton, 1986; McGrath, 1962) is a particularly useful theory for addressing specific leader behaviors expected to contribute to organizational or unit effectiveness. This theory argues that the leader's main job is to see that whatever is necessary to group needs is taken care of; thus, a leader can be said to have done their job well when they have contributed to group effectiveness and cohesion (Fleishman et al., 1991; Hackman & Wageman, 2005; Hackman & Walton, 1986). While functional leadership theory has most often been applied to team leadership (Zaccaro, Rittman, & Marks, 2001), it has also been effectively applied to broader organizational leadership as well (Zaccaro, 2001). In summarizing literature on functional leadership (see Kozlowski et al. (1996), Zaccaro et al. (2001), Hackman and Walton (1986), Hackman & Wageman (2005), Morgeson (2005)), Klein, Zeigert, Knight, and Xiao (2006) observed five broad functions a leader performs when promoting organization's effectiveness. These functions include: (1) environmental monitoring, (2) organizing subordinate activities, (3) teaching and coaching subordinates, (4) motivating others, and (5) intervening actively in the group's work.
A variety of leadership behaviors are expected to facilitate these functions. In initial work identifying leader behavior, Fleishman (1953) observed that subordinates perceived their supervisors' behavior in terms of two broad categories referred to as consideration and initiating structure. Consideration includes behavior involved in fostering effective relationships. Examples of such behavior would include showing concern for a subordinate or acting in a supportive manner towards others. Initiating structure involves the actions of the leader focused specifically on task accomplishment. This could include role clarification, setting performance standards, and holding subordinates accountable to those standards.

[edit] Transactional and transformational theories

Eric Berne[38] first analyzed the relations between a group and its leadership in terms of Transactional Analysis.
The transactional leader (Burns, 1978)[39] is given power to perform certain tasks and reward or punish for the team's performance. It gives the opportunity to the manager to lead the group and the group agrees to follow his lead to accomplish a predetermined goal in exchange for something else. Power is given to the leader to evaluate, correct and train subordinates when productivity is not up to the desired level and reward effectiveness when expected outcome is reached.
The transformational leader (Burns, 1978)[39] motivates its team to be effective and efficient. Communication is the base for goal achievement focusing the group on the final desired outcome or goal attainment. This leader is highly visible and uses chain of command to get the job done. Transformational leaders focus on the big picture, needing to be surrounded by people who take care of the details. The leader is always looking for ideas that move the organization to reach the company's vision.

[edit] Emotions

Leadership can be perceived as a particularly emotion-laden process, with emotions entwined with the social influence process.[40] In an organization, the leader's mood has some effects on his/her group. These effects can be described in 3 levels:[41]
  1. The mood of individual group members. Group members with leaders in a positive mood experience more positive mood than do group members with leaders in a negative mood. The leaders transmit their moods to other group members through the mechanism of emotional contagion.[41] Mood contagion may be one of the psychological mechanisms by which charismatic leaders influence followers.[42]
  2. The affective tone of the group. Group affective tone represents the consistent or homogeneous affective reactions within a group. Group affective tone is an aggregate of the moods of the individual members of the group and refers to mood at the group level of analysis. Groups with leaders in a positive mood have a more positive affective tone than do groups with leaders in a negative mood.[41]
  3. Group processes like coordination, effort expenditure, and task strategy. Public expressions of mood impact how group members think and act. When people experience and express mood, they send signals to others. Leaders signal their goals, intentions, and attitudes through their expressions of moods. For example, expressions of positive moods by leaders signal that leaders deem progress toward goals to be good. The group members respond to those signals cognitively and behaviorally in ways that are reflected in the group processes.[41]
In research about client service, it was found that expressions of positive mood by the leader improve the performance of the group, although in other sectors there were other findings.[43]
Beyond the leader's mood, her/his behavior is a source for employee positive and negative emotions at work. The leader creates situations and events that lead to emotional response. Certain leader behaviors displayed during interactions with their employees are the sources of these affective events. Leaders shape workplace affective events. Examples – feedback giving, allocating tasks, resource distribution. Since employee behavior and productivity are directly affected by their emotional states, it is imperative to consider employee emotional responses to organizational leaders.[44] Emotional intelligence, the ability to understand and manage moods and emotions in the self and others, contributes to effective leadership in organizations.[43]

[edit] Neo-emergent theory

The Neo-emergent leadership theory (from the Oxford school of leadership) espouses that leadership is created through the emergence of information by the leader or other stakeholders, not through the true actions of the leader himself. In other words, the reproduction of information or stories form the basis of the perception of leadership by the majority. It is well known that the great naval hero Lord Nelson often wrote his own versions of battles he was involved in, so that when he arrived home in England he would receive a true hero's welcome. In modern society, the press, blogs and other sources report their own views of a leader, which may be based on reality, but may also be based on a political command, a payment, or an inherent interest of the author, media or leader. Therefore, it can be contended that the perception of all leaders is created and in fact does not reflect their true leadership qualities at all.

[edit] Styles

Leadership style refers to a leader's behaviour. It is the result of the philosophy, personality and experience of the leader.

[edit] Autocratic or authoritarian style

Under the autocratic leadership style, all decision-making powers are centralized in the leader, as with dictator leaders.
They do not entertain any suggestions or initiatives from subordinates. The autocratic management has been successful as it provides strong motivation to the manager. It permits quick decision-making, as only one person decides for the whole group and keeps each decision to himself until he feels it is needed to be shared with the rest of the group.[45]

[edit] Participative or democratic style

The democratic leadership style favors decision-making by the group as shown, such as leader gives instruction after consulting the group.
They can win the co-operation of their group and can motivate them effectively and positively. The decisions of the democratic leader are not unilateral as with the autocrat because they arise from consultation with the group members and participation by them.[45]

[edit] Laissez-faire or free rein style

A free-rein leader does not lead, but leaves the group entirely to itself as shown; such a leader allows maximum freedom to subordinates, i.e., they are given a free hand in deciding their own policies and methods.
Different situations call for different leadership styles. In an emergency when there is little time to converge on an agreement and where a designated authority has significantly more experience or expertise than the rest of the team, an autocratic leadership style may be most effective; however, in a highly motivated and aligned team with a homogeneous level of expertise, a more democratic or laissez-faire style may be more effective. The style adopted should be the one that most effectively achieves the objectives of the group while balancing the interests of its individual members.[45]

[edit] Narcissistic leadership

Various academics such as Kets de Vries, Maccoby and Thomas have identified narcissistic leadership as an important and common leadership style.

[edit] Toxic leadership

A toxic leader is someone who has responsibility over a group of people or an organization, and who abuses the leader-follower relationship by leaving the group or organization in a worse-off condition than when s/he first found them.

[edit] Performance

In the past, some researchers have argued that the actual influence of leaders on organizational outcomes is overrated and romanticized as a result of biased attributions about leaders (Meindl & Ehrlich, 1987). Despite these assertions however, it is largely recognized and accepted by practitioners and researchers that leadership is important, and research supports the notion that leaders do contribute to key organizational outcomes (Day & Lord, 1988; Kaiser, Hogan, & Craig, 2008). To facilitate successful performance it is important to understand and accurately measure leadership performance.
Job performance generally refers to behavior that is expected to contribute to organizational success (Campbell, 1990). Campbell identified a number of specific types of performance dimensions; leadership was one of the dimensions that he identified. There is no consistent, overall definition of leadership performance (Yukl, 2006). Many distinct conceptualizations are often lumped together under the umbrella of leadership performance, including outcomes such as leader effectiveness, leader advancement, and leader emergence (Kaiser et al., 2008). For instance, leadership performance may be used to refer to the career success of the individual leader, performance of the group or organization, or even leader emergence. Each of these measures can be considered conceptually distinct. While these aspects may be related, they are different outcomes and their inclusion should depend on the applied/research focus.

[edit] Contexts

[edit] Organizations

An organization that is established as an instrument or means for achieving defined objectives has been referred to as a formal organization. Its design specifies how goals are subdivided and reflected in subdivisions of the organization. Divisions, departments, sections, positions, jobs, and tasks make up this work structure. Thus, the formal organization is expected to behave impersonally in regard to relationships with clients or with its members. According to Weber's definition, entry and subsequent advancement is by merit or seniority. Each employee receives a salary and enjoys a degree of tenure that safeguards her/him from the arbitrary influence of superiors or of powerful clients. The higher his position in the hierarchy, the greater his presumed expertise in adjudicating problems that may arise in the course of the work carried out at lower levels of the organization. It is this bureaucratic structure that forms the basis for the appointment of heads or chiefs of administrative subdivisions in the organization and endows them with the authority attached to their position.[46]
In contrast to the appointed head or chief of an administrative unit, a leader emerges within the context of the informal organization that underlies the formal structure. The informal organization expresses the personal objectives and goals of the individual membership. Their objectives and goals may or may not coincide with those of the formal organization. The informal organization represents an extension of the social structures that generally characterize human life — the spontaneous emergence of groups and organizations as ends in themselves.
In prehistoric times, humanity was preoccupied with personal security, maintenance, protection, and survival. Now humanity spends a major portion of waking hours working for organizations. Her/His need to identify with a community that provides security, protection, maintenance, and a feeling of belonging continues unchanged from prehistoric times. This need is met by the informal organization and its emergent, or unofficial, leaders.[47][48]
Leaders emerge from within the structure of the informal organization. Their personal qualities, the demands of the situation, or a combination of these and other factors attract followers who accept their leadership within one or several overlay structures. Instead of the authority of position held by an appointed head or chief, the emergent leader wields influence or power. Influence is the ability of a person to gain co-operation from others by means of persuasion or control over rewards. Power is a stronger form of influence because it reflects a person's ability to enforce action through the control of a means of punishment.[47]
A leader is a person who influences a group of people towards a specific result. It is not dependent on title or formal authority. (elevos, paraphrased from Leaders, Bennis, and Leadership Presence, Halpern & Lubar). Ogbonnia (2007) defines an effective leader "as an individual with the capacity to consistently succeed in a given condition and be viewed as meeting the expectations of an organization or society." Leaders are recognized by their capacity for caring for others, clear communication, and a commitment to persist.[49] An individual who is appointed to a managerial position has the right to command and enforce obedience by virtue of the authority of his position. However, she or he must possess adequate personal attributes to match his authority, because authority is only potentially available to him. In the absence of sufficient personal competence, a manager may be confronted by an emergent leader who can challenge her/his role in the organization and reduce it to that of a figurehead. However, only authority of position has the backing of formal sanctions. It follows that whoever wields personal influence and power can legitimize this only by gaining a formal position in the hierarchy, with commensurate authority.[47] Leadership can be defined as one's ability to get others to willingly follow. Every organization needs leaders at every level.[50]

[edit] Management

Over the years the philosophical terminology of "management" and "leadership" have, in the organisational context, been used both as synonyms and with clearly differentiated meanings. Debate is fairly common about whether the use of these terms should be restricted, and generally reflects an awareness of the distinction made by Burns (1978) between "transactional" leadership (characterised by e.g. emphasis on procedures, contingent reward, management by exception) and "transformational" leadership (characterised by e.g. charisma, personal relationships, creativity).[39]

[edit] Group leadership

In contrast to individual leadership, some organizations have adopted group leadership. In this situation, more than one person provides direction to the group as a whole. Some organizations have taken this approach in hopes of increasing creativity, reducing costs, or downsizing. Others may see the traditional leadership of a boss as costing too much in team performance. In some situations, the main the team member(s) best able to handle any given phase of the project become(s) the temporary leader(s). Additionally, as each team member has the opportunity to experience the elevated level of empowerment, it energizes staff and feeds the cycle of success.[51]
Leaders who demonstrate persistence, tenacity, determination and synergistic communication skills will bring out the same qualities in their groups. Good leaders use their own inner mentors to energize their team and organizations and lead a team to achieve success.[52]
According to the National School Boards Association (USA)[53]
These Group Leadership or Leadership Teams have specific characteristics:
Characteristics of a Team
  • There must be an awareness of unity on the part of all its members.
  • There must be interpersonal relationship. Members must have a chance to contribute, learn from and work with others.
  • The member must have the ability to act together toward a common goal.
Ten characteristics of well-functioning teams:
  • Purpose: Members proudly share a sense of why the team exists and are invested in accomplishing its mission and goals.
  • Priorities: Members know what needs to be done next, by whom, and by when to achieve team goals.
  • Roles: Members know their roles in getting tasks done and when to allow a more skillful member to do a certain task.
  • Decisions: Authority and decision-making lines are clearly understood.
  • Conflict: Conflict is dealt with openly and is considered important to decision-making and personal growth.
  • Personal traits: members feel their unique personalities are appreciated and well utilized.
  • Norms: Group norms for working together are set and seen as standards for every one in the groups.
  • Effectiveness: Members find team meetings efficient and productive and look forward to this time together.
  • Success: Members know clearly when the team has met with success and share in this equally and proudly.
  • Training: Opportunities for feedback and updating skills are provided and taken advantage of by team members.

[edit] Primates

Mark van Vugt and Anjana Ahuja in Naturally Selected: The Evolutionary Science of Leadership present evidence of leadership in nonhuman animals, from leadership in ants and bees to baboons and chimpanzees. They suggest that leadership has a long evolutionary history and that the same mechanisms underpinning leadership in humans can be found in other social species too.[54] Richard Wrangham and Dale Peterson, in Demonic Males: Apes and the Origins of Human Violence present evidence that only humans and chimpanzees, among all the animals living on earth, share a similar tendency for a cluster of behaviors: violence, territoriality, and competition for uniting behind the one chief male of the land.[55] This position is contentious. Many animals beyond apes are territorial, compete, exhibit violence, and have a social structure controlled by a dominant male (lions, wolves, etc.), suggesting Wrangham and Peterson's evidence is not empirical. However, we must examine other species as well, including elephants (which are matriarchal and follow an alpha female), meerkats (who are likewise matriarchal), and many others.
It would be beneficial, to examine that most accounts of leadership over the past few millennia (since the creation of Christian religions) are through the perspective of a patriarchal society, founded on Christian literature.[citation needed] If one looks before these times, it is noticed that Pagan and Earth-based tribes in fact had female leaders.[citation needed] It is important also to note that the peculiarities of one tribe cannot necessarily be ascribed to another, as even our modern-day customs differ.[citation needed] The current day patrilineal custom is only a recent invention in human history and our original method of familial practices were matrilineal.[citation needed] The fundamental assumption that has been built into 90%[citation needed] of the world's countries is that patriarchy is the 'natural' biological predisposition of homo sapiens. Unfortunately, this belief has led to the widespread oppression of women in all of those countries, but in varying degrees. The Iroquoian First Nations tribes are an example of a matrilineal tribe, along with Mayan tribes, and also the society of Meghalaya, India.[citation needed]
By comparison, bonobos, the second-closest species-relatives of man, do not unite behind the chief male of the land. The bonobos show deference to an alpha or top-ranking female that, with the support of her coalition of other females, can prove as strong as the strongest male in the land. Thus, if leadership amounts to getting the greatest number of followers, then among the bonobos, a female almost always exerts the strongest and most effective leadership. However, not all scientists agree on the allegedly "peaceful" nature of the bonobo or its reputation as a "hippie chimp".[2]

[edit] Historical views



Sanskrit literature identifies ten types of leaders. Defining characteristics of the ten types of leaders are explained with examples from history and mythology.[56]
Aristocratic thinkers have postulated that leadership depends on one's "blue blood" or genes: monarchy takes an extreme view of the same idea, and may prop up its assertions against the claims of mere aristocrats by invoking divine sanction: see the divine right of kings. Contrariwise, more democratically-inclined theorists have pointed to examples of meritocratic leaders, such as the Napoleonic marshals profiting from careers open to talent.
In the autocratic/paternalistic strain of thought, traditionalists recall the role of leadership of the Roman pater familias. Feminist thinking, on the other hand, may object to such models as patriarchal and posit against them emotionally-attuned, responsive, and consensual empathetic guidance, which is sometimes associated with matriarchies.
Comparable to the Roman tradition, the views of Confucianism on "right living" relate very much to the ideal of the (male) scholar-leader and his benevolent rule, buttressed by a tradition of filial piety.
Leadership is a matter of intelligence, trustworthiness, humaneness, courage, and discipline . . . Reliance on intelligence alone results in rebelliousness. Exercise of humaneness alone results in weakness. Fixation on trust results in folly. Dependence on the strength of courage results in violence. Excessive discipline and sternness in command result in cruelty. When one has all five virtues together, each appropriate to its function, then one can be a leader. — Sun Tzu[57]
In the 19th century, the elaboration of anarchist thought called the whole concept of leadership into question. (Note that the Oxford English Dictionary traces the word "leadership" in English only as far back as the 19th century.) One response to this denial of élitism came with Leninism, which demanded an élite group of disciplined cadres to act as the vanguard of a socialist revolution, bringing into existence the dictatorship of the proletariat.
Other historical views of leadership have addressed the seeming contrasts between secular and religious leadership. The doctrines of Caesaro-papism have recurred and had their detractors over several centuries. Christian thinking on leadership has often emphasized stewardship of divinely-provided resources - human and material - and their deployment in accordance with a Divine plan. Compare servant leadership.
For a more general take on leadership in politics, compare the concept of the statesman.

[edit] Action oriented environments



This is a unique approach to team leadership that is aimed at action oriented environments where effective functional leadership is required to achieve critical or reactive tasks by small teams deployed into the field. In other words leadership of small groups often created to respond to a situation or critical incident.
In most cases these teams are tasked to operate in remote and changeable environments with limited support or backup (action environments). Leadership of people in these environments requires a different set of skills to that of front line management. These leaders must effectively operate remotely and negotiate both the needs of the individual, team and task within a changeable environment. This has been termed Action Oriented Leadership. Some example action oriented leadership is demonstrated in the following ways: extinguishing a rural fire, locating a missing person, leading a team on an outdoor expedition or rescuing a person from a potentially hazardous environment.

[edit] Titles emphasizing authority



At certain stages in their development, the hierarchies of social ranks implied different degrees or ranks of leadership in society. Thus a knight led fewer men in general than did a duke; a baronet might in theory control less land than an earl. See peerage for a systematization of this hierarchy, and order of precedence for links to various systems.
In the course of the 18th and 20th centuries, several political operators took non-traditional paths to become dominant in their societies. They or their systems often expressed a belief in strong individual leadership, but existing titles and labels ("King", "Emperor", "President" and so on) often seemed inappropriate, insufficient or downright inaccurate in some circumstances. The formal or informal titles or descriptions they or their flunkies employ express and foster a general veneration for leadership of the inspired and autocratic variety. The definite article when used as part of the title (in languages that use definite articles) emphasizes the existence of a sole "true" leader.

[edit] Critical thought

Noam Chomsky[58] and others[59] have brought critical thinking to the very concept of leadership and have provided an analysis that asserts that people abrogate their responsibility to think and will actions for themselves. While the conventional view of leadership is rather satisfying to people who "want to be told what to do", these critics say that one should question why they are being subjected to a will or intellect other than their own if the leader is not a Subject Matter Expert (SME).
The fundamentally anti-democratic nature of the leadership principle is challenged by the introduction of concepts such as autogestion, employeeship, common civic virtue, etc., which stress individual responsibility and/or group authority in the work place and elsewhere by focusing on the skills and attitudes that a person needs in general rather than separating out leadership as the basis of a special class of individuals.
Similarly, various historical calamities are attributed to a misplaced reliance on the principle of leadership.

[edit] Varieties of individual power

According to Patrick J. Montana and Bruce H. Charnov, the ability to attain these unique powers is what enables leadership to influence subordinates and peers by controlling organizational resources. The successful leader effectively uses these power(s) to influence employees, and it is important for the leader to understand the uses of power to strengthen the leadership functioning.
The authors distinguish the following types of organizational power:
  • Legitimate Power refers to the different types of professional positions within an organization structure that inherit such power (e.g. Manager, Vice President, Director, Supervisor, etc.). These levels of power correspond to the hierarchical executive levels within the organization itself. The higher position such as President of the company has a higher power than the rest of professional positions in the hierarchical executive levels.
  • Reward Power is the power given to managers that attain administrative power over a range of rewards. Employees who work for managers desire the reward from the manager and will be influenced by receiving it as a result of work performance. The rewards may be pay raisse or promotions.
  • Coercive Power is the manager's ability to punish an employee. Punishment can be a mild punishment such as a suspension or a serious punishment such as termination.
  • Expert Power is attained by the manager due to his or her own talents such as skills, knowledge, abilities, or previous experience. A manager which has this power within the organization may be a very valuable and important manager in the company.
  • Charisma Power A manager who has charisma will have a positive influence on workers, and create the opportunity for interpersonal influence. A person has charisma, and this will confer great power as a manager.
  • Referent Power a power that is gained by association. A person who has power by association is often referred to assistant or deputy.
  • Information Power a person who has possession of important information at an important time when such information is needed to organizational functioning. Someone who has this information knowledge has genuine power. For example, a manager's secretary would be in a powerful position if the secretary has information power.[60]

Tuesday 12 July 2011

80 & 20 rule~


The term "Pareto principle" can also refer to Pareto efficiency.
The Pareto principle (also known as the 80-20 rule, the law of the vital few, and the principle of factor sparsity) states that, for many events, roughly 80% of the effects come from 20% of the causes.[1][2]
Business-management consultant Joseph M. Juran suggested the principle and named it after Italian economist Vilfredo Pareto, who observed in 1906 that 80% of the land in Italy was owned by 20% of the population; he developed the principle by observing that 20% of the pea pods in his garden contained 80% of the peas.[2]
It is a common rule of thumb in business; e.g., "80% of your sales come from 20% of your clients". Mathematically, where something is shared among a sufficiently large set of participants, there must be a number k between 50 and 100 such that "k% is taken by (100 − k)% of the participants". The number k may vary from 50 (in the case of equal distribution, i.e. 100% of the population have equal shares) to nearly 100 (when a tiny number of participants account for almost all of the resource). There is nothing special about the number 80% mathematically, but many real systems have k somewhere around this region of intermediate imbalance in distribution.[3]
The Pareto principle is only tangentially related to Pareto efficiency, which was also introduced by the same economist. Pareto developed both concepts in the context of the distribution of income and wealth among the population.

In economics

The original observation was in connection with population and wealth Pareto noticed that 80% of Italy's land was owned by 20% of the population.[4] He then carried out surveys on a variety of other countries and found to his surprise that a similar distribution applied.
Because of the scale-invariant nature of the power law relationship, the relationship applies also to subsets of the income range. Even if we take the ten wealthiest individuals in the world, we see that the top three (Warren BuffettCarlos Slim Helú, and Bill Gates) own as much as the next seven put together.[5]
A chart that gave the inequality a very visible and comprehensible form, the so-called 'champagne glass' effect,[6] was contained in the 1992 United Nations Development Program Report, which showed the distribution of global income to be very uneven, with the richest 20% of the world's population controlling 82.7% of the world's income.[7]
Distribution of world GDP, 1989[8]
Quintile of populationIncome
Richest 20%82.70%
Second 20%11.75%
Third 20%2.30%
Fourth 20%1.85%
Poorest 20%1.40%
The Pareto principle has also been used to attribute the widening economic inequality in the United States to 'skill-biased technical change'—i.e. income growth accrues to those with the education and skills required to take advantage of new technology and globalisation. However, Paul Krugman in The New York Times dismissed this "80-20 fallacy" as being cited "not because it's true, but because it's comforting." He notes that the benefits of economic growth over the last 30 years have largely been concentrated in the top 1%, rather than the top 20%.[9]

[edit]In business

The distribution shows up in several different aspects relevant to entrepreneurs and business managers. For example:
  • 80% of your profits come from 20% of your customers
  • 80% of your complaints come from 20% of your customers
  • 80% of your profits come from 20% of the time you spend
  • 80% of your sales come from 20% of your products
  • 80% of your sales are made by 20% of your sales staff[10]
Therefore, many businesses have an easy access to dramatic improvements in profitability by focusing on the most effective areas and eliminating, ignoring, automating, delegating or re-training the rest, as appropriate.

[edit]In software

In computer science and engineering control theory such as for electromechanical energy converters, the Pareto principle can be applied to optimization efforts.[11] For example,Microsoft noted that by fixing the top 20% of the most reported bugs, 80% of the errors and crashes would be eliminated.[12]

[edit]Other applications

In the systems science discipline, Epstein and Axtell created an agent-based simulation model called SugarScape, from a decentralized modeling approach, based on individual behavior rules defined for each agent in the economy. Wealth distribution and Pareto's 80/20 Principle became emergent in their results, which suggests that the principle is a natural phenomenon.[13]
The Pareto principle has many applications in quality control.[citation needed] It is the basis for the Pareto chart, one of the key tools used in total quality control and six sigma. The Pareto principle serves as a baseline for ABC-analysis and XYZ-analysis, widely used in logistics and procurement for the purpose of optimizing stock of goods, as well as costs of keeping and replenishing that stock.[14]
The Pareto principle was a prominent part of the 2007 bestseller The 4-Hour Workweek by Tim Ferriss. Ferriss recommended focusing one's attention on those 20% that contribute to 80% of the income. More notably, he also recommends 'firing' – refusing to do business with – those 20% of customers who take up the majority of one's time and cause the most trouble.[15]
In human developmental biology the principle is reflected in the gestation period where the embryonic period constitutes 20% of the whole, with the fetal development taking up the rest of the time.
In health care in the United States, it has been found that 20% of patients use 80% of health care resources.[16]
Several criminology studies have found that 80% of crimes are committed by 20% of criminals.[17]
In the financial services industry, this concept is known as profit risk, where 20% or fewer of a company's customers are generating positive income while 80% or more are costing the company money.[18]

[edit]Mathematical notes

The idea has rule of thumb application in many places, but it is commonly misused. For example, it is a misuse to state that a solution to a problem "fits the 80-20 rule" just because it fits 80% of the cases; it must be implied that this solution requires only 20% of the resources needed to solve all cases. Additionally, it is a misuse of the 80-20 rule to interpret data with a small number of categories or observations.
This is a special case of the wider phenomenon of Pareto distributions. If the Pareto index α, which is one of the parameters characterizing a Pareto distribution, is chosen asα = log45 ≈ 1.16, then one has 80% of effects coming from 20% of causes. It follows that one also has 80% of that top 80% of effects coming from 20% of that top 20% of causes, and so on (80% of 80% is 64%; 20% of 20% is 4%, so this implies a "64-4" law; and a similarly implies a "51.2-0.8" law).
80-20 is only a shorthand for the general principle at work. In individual cases, the distribution could just as well be, say, 80-10 or 80-30. There is no need for the two numbers to add up to 100%, as they are measures of different things, e.g., 'number of customers' vs 'amount spent'). However, each case in which they do not add up to 100%, is equivalent to one in which they do; for example, as noted above, the "64-4 law" (in which the two numbers do not add up to 100%) is equivalent to the "80-20 law" (in which they do add up to 100%). Thus, specifying two percentages independently does not lead to a broader class of distributions than what one gets by specifying the larger one and letting the smaller one be its complement relative to 100%. Thus there is only one degree of freedom in the choice of that parameter.
Adding up to 100 leads to a nice symmetry. For example, if 80% of effects come from the top 20% of sources, then the remaining 20% of effects come from the lower 80% of sources. This is called the "joint ratio", and can be used to measure the degree of imbalance: a joint ratio of 96:4 is very imbalanced, 80:20 is significantly imbalanced (Gini index: 60%), 70:30 is moderately imbalanced (Gini index: 40%), and 55:45 is just slightly imbalanced.
The Pareto Principle is an illustration of a "power law" relationship, which also occurs in phenomena such as brush fires and earthquakes.[19] Because it is self-similar over a wide range of magnitudes, it produces outcomes completely different from Gaussian distribution phenomena. This fact explains the frequent breakdowns of sophisticated financial instruments, which are modeled on the assumption that a Gaussian relationship is appropriate to, for example, stock movement sizes.[20]

[edit]Equality measures

[edit]Gini coefficient and Hoover index

Using the "A : B" notation (for example, 0.8:0.2) and with A + B = 1, inequality measures like the Gini index and the Hoover index can be computed. In this case both are the same.
H=G=\left|2A-1 \right|=\left|2B-1 \right| \,
A:B = \left( \tfrac{1+H}{2} \right): \left( \tfrac{1-H}{2} \right)

[edit]Theil index

The Theil index is an entropy measure used to quantify inequities. The measure is 0 for 50:50 distributions and reaches 1 at a Pareto distribution of 82:18. Higher inequities yield Theil indices above 1.[21]
T_T=T_L=T_s = 2 H \, \operatorname{arctanh} \left( H \right).\,