Leadership style summary

M ODULE S UMMARYM ODULE 2:C ATERPILLAR L EADERSHIPF RAMEWORK:L EADERSHIP S TYLESPage Contents Section SeeIntroduction (1)Leadership Styles as a Component of the Caterpillar Leadership Framework (2)The Six Leadership Styles (6)Appropriate Use of the Different Leadership Styles (10)Summary (13)I NTRODUCTIONWelcome to the Caterpillar Leadership Framework e-learning program. This Welcomeprogram includes the following three modules:•Module 1: Caterpillar Leadership Framework: Introduction and CaterpillarLeadership Competencies•Module 2: Caterpillar Leadership Framework: Leadership Styles•Module 3: Caterpillar Leadership Framework: Work ClimateIt is recommended that you complete these modules in this order.Content Owner: Caterpillar U College of Leadership and BusinessMany of the concepts and theoretical underpinnings expressed in this programand related materials were developed by and are proprietary to Hay Group.© 2007 Hay Acquisition Company, Inc. 2007. All Rights Reserved.Developer: Tata Interactive SystemsCaterpillar: Confidential GreenL EADERSHIP F RAMEWORKThis series of three e-learning modules is intended for: Target Audience Group BenefitLeaders taking these modules priorto attending Making Great Leaders A foundational understanding of the Caterpillar Leadership Frameworkincluded in these modules to enableyou to work with and apply theconcepts in the Making Great Leaders program.Leaders taking these modules as a refresher during a Re-assessment A reinforcement of the CaterpillarLeadership Framework conceptslearned in Making Great Leaders.Employees interested in learning more about Caterpillar leadership An understanding of the keyelements of leadership effectivenesswithin Caterpillar.Employees who want to learn more before rating their leaders who are participating in a Making Great Leaders programAn understanding of the coreCaterpillar Leadership Frameworkconcepts to enable you to providemeaningful feedback to supportleaders who are attending theMaking Great Leaders program.By the end of this module, you will be able to:• Identify the six Leadership Styles• Identify the primary objective of each Leadership Style• Recognize the situations in which each Leadership Style is most and least effective• Identify which Leadership Styles are most effective in the short-term and long-termTarget Audience ObjectivesIn the previous e-learning module you were introduced to the CaterpillarLeadership Framework and to one component of the framework, Caterpillar Leadership Competencies. In this e-learning module, you will learn about Leadership Styles. The framework defines Caterpillar leadership as a combination of:• Business context and job requirements• Leadership Competencies• Leadership Styles• Work Climate• PerformanceWhen combined, these elements result inimproved performance and results atCaterpillar. As part of Caterpillar’scommitment to leadership development,assessments are used to provide leaderswith individualized feedback on theCaterpillar Leadership Competencies,Leadership Styles, and the Work Climatethat they create.Leaders are not operating in a vacuum. Leadership happens in the context of the business, such as: • Current business environment• Business challenges• Demands of senior leadership• Happenings outside the organization• Context of your job’s requirementsIntroduction Business Contextand JobRequirementsLeadership Competencies are personal characteristics that differentiate superior performance from average performance. Caterpillar’s LeadershipCompetencies for Managers and Supervisors give rise to behaviors that lead to long-term success and ensure that people meet key objectives.Leadership Styles and Leadership Competencies are strongly linked because together they create the Work Climate that the leader’s direct reports experience. Leadership Competencies are covered in detail in a separate e-learning module.Leadership Styles refers to patterns of leadership behaviors across a widerange of situations. Research has shown that a limited number of behavioral patterns among leaders explain the majority of leadership behaviors. These are classified as the six Leadership Styles:• Directive• Visionary• Affiliative• Participative• Pacesetting• CoachingEffective leaders are able to use a wide range of these styles depending on the requirements of the specific situation. Leadership Styles and Leadership Competencies are strongly linked because together they create the Work Climate that the leader’s direct reports experience. Leadership Styles are covered in detail in this e-learning module.LeadershipCompetencies Leadership StylesWork Climate is essentially people’s perception of how it feels to work in theorganization. There are six Work Climate dimensions:• Flexibility• Responsibility• Standards• Recognition• Clarity• Team CommitmentWork Climate impacts how you feel and behave and, therefore, has a direct impact on performance and results. When leaders create a positive Work Climate for their employees, employees are motivated and engaged and will do what it takes to get the job done. Work Climate is covered in detail in a separate e-learning module.Organizations have leaders to provide the vision and strategy for anorganization, to mobilize employees around the vision and strategy, and to drive performance and results.Caterpillar is not a non-profit organization. We need to generate results for our shareholders. Since many of our employees are also shareholders, generating results is good for all of us.High performing leaders achieve 20% to 30% more discretionary effort from their people because they create a positive Work Climate which means people are more engaged, more innovative, creative, and focused.Work Climate PerformanceT HE S IX L EADERSHIP S TYLESLeadership Styles are defined as the patterns of behavior a leader adopts to Introductionplan, organize, motivate, and lead his/her team. They can help create apositive work climate for employees, which in turn results in improvedperformance.There are six Leadership Styles, however, there is no one right or wrong style;the style depends on the task, people, and situation to be managed. Each stylehas its purpose, although some have more positive applications than others.In general, leadership behavior is a function of the person and the situation:Leadership Behavior = Person x SituationLeadership Style is a function of:•The individual leader’s personal characteristics•Styles the leader has seen his/her superior, mentors, or others use•The stated values in the organization of “the right way” to manage•The specific management situations and people with whom the leaderdeals mostLeadership Styles reflect how you:•Listen•Set goals and standards•Develop action plans•Direct others•Give feedback•Reward and punish•Develop employees•Establish personal relations with employeesThe six Leadership Styles are: Leadership Style DescriptionDirective This is the Do it the way I tell you leader whoclosely controls employees and motivates by threatsand discipline.Visionary This is the Firm but fair leader who givesemployees/team members clear direction andmotivates by persuasion/influence and feedback ontask performance.AffiliativeThis is the People first, task second leader whoemphasizes good personal relationships amongemployees and motivates by trying to keep peoplehappy with fringe benefits, security, and socialactivities. Participative The Participative leader encourages employee inputin decision making and motivates by rewarding teameffort.Pacesetting This is the Do it myself leader who performs manytasks personally, expects employees/team membersto follow his/her example, and motivates by settinghigh standards and letting employees work on theirown.CoachingThis is the Developmental leader who helps andencourages employees to improve theirperformance, and motivates by providingopportunities for professional development.No one Leadership Style is right or wrong. Instead, all styles have their place. The most effective leaders are capable of exhibiting a wide range of styles and select the most appropriate style depending on the demands of the particular situation. Later in this module you will learn more about situations in which each style is more effective and less effective. You’ll also review some tips on how to improve your use of each style.Overview of theSix StylesThe primary objective of the Directive Style is to obtain immediatecompliance. The main characteristics of this style are as follows:• Gives directives rather than direction by telling employees what to do. • Expects immediate compliance.• Controls tightly.• Relies on negative, corrective feedback.• Motivates by stating the negative consequences of noncompliance.The primary objective of the Visionary Style is to provide long-term directionand vision. The main characteristics of this style are as follows: • Develops and articulates a clear vision.• Solicits employee perspectives on the vision.• Sees “selling the vision” as key.• Persuades employees by explaining the “whys” in terms of employees’ or the organization’s long-term interests.• Sets standards and monitors performance in relation to the larger vision. • Uses a balance of positive and negative feedback to motivate.The primary objective of the Affiliative Style is to create harmony. The maincharacteristics of this style are as follows:• Is most concerned with promoting positive interactions and team development.• Places emphasis on addressing employees’ personal needs.• Identifies opportunities for positive feedback; stresses the importance of employee morale on performance.• Avoids performance-related confrontations.• Rewards personal characteristics more than job performance.Directive Style Visionary Style Affiliative StyleThe primary objective of the Participative Style is to build commitment andgenerate new ideas. The main characteristics of this style are as follows • Trusts that employees can develop the appropriate direction for themselves.• Invites employees to participate in the development of decisions; seeks opportunities for consensus.• Holds many meetings and listens to employees’ concerns.• Rewards adequate performance; rarely gives negative feedback.The primary objective of the Pacesetting Style is to accomplish tasks to highstandards of excellence. The main characteristics of this style are as follows: • Leads by example.• Has high standards and expects others to know the rationale behind what is being modeled.• Is apprehensive about delegating and takes responsibility away if high performance is not forthcoming.• Has little sympathy for poor performance.• Rescues the situation or gives detailed task instruction when employees experience difficulties.The primary objective of the Coaching Style is to build the long-termprofessional development of others. The main characteristics of this style are as follows:• Helps employees identify their unique strengths and weaknesses. • Encourages employees to establish development goals.• Reaches agreement with employees on the leader’s and employees’ roles in the development process.• Provides ongoing instruction, as well as feedback.• May trade off immediate standards of performance for long-term development.Participative Style Pacesetting Style Coaching StyleA PPROPRIATE U SE OF THE D IFFERENT L EADERSHIP S TYLESEffective leaders need to apply a range of styles in the right situations. Thescreens that follow provide some general guidance on situations where leadersshould and should not use the different styles.The table below shows the situations where the Directive Style is mosteffective and where it is least effective.Most Effective Least Effective•When applied to relativelystraightforward tasks•In crisis situations, whenemployees need clear directionsand the leader has moreinformation than the employees •When deviations fromcompliance will result in seriousproblems (e.g., enforcing safetyregulations)•With problem employees, when all else has failed •When applied to tasks that are not straightforward; the morecomplex the task, the moreineffective this style becomes •Over the long term, because employees are not beingdeveloped and they tend to rebel, resist passively, or leave•In extended interactions with self- motivated employeescapable of directing, andmonitoring their own workThe table below shows the situations where the Visionary Style is most effective and where it is least effective.Most Effective Least Effective•When a new vision or a clear direction and standards areneeded (i.e., in times of change) •When the leader is perceived to be the “expert” or “authority” •With new employees whodepend on the leader for activeguidance •When the leader is not perceived as credible•When there is a need for speed •When there is a lack of ability to executeIntroduction When to use the Directive Style?When to use the Visionary StyleThe table below shows the situations where the Affiliative Style is most effective and where it is least effective.Most Effective Least Effective•When used as part of a repertoire •When tasks are routine andemployees’ performanceadequate•When giving personal help (i.e., counseling)•In getting diverse, conflicting groups of individuals to worktogether harmoniously •When employees’ performance is inadequate and correctiveperformance feedback isnecessary•In complex situations needing clear direction and control •With employees who are task- oriented or uninterested infriendship with their leaderThe table below shows the situations where the Participative Style is most effective and where it is least effective.Most Effective Least Effective•When employees are competent •When employees must becoordinated as a team •When idea generation is critical to success •When there's no time to hold meetings•When employees areincompetent, lack crucialinformation, or need closesupervisionWhen to use the Affiliative Style? When to use the Participative Style?The table below shows the situations where the Pacesetting Style is most effective and where it is least effective.Most Effective Least Effective•In ambiguous situations where employees need to look to theleader as an example of howthey should proceed•When employees are highly motivated, competent, and knowtheir jobs•When quick results are required •When the leader cannot do all his/her work personally •(i.e., when the organization grows, requiring increaseddelegation)•When employees need direction, development, and coordinationThe table below shows the situations where the Coaching Style is most effective and where it is least effective.Most Effective Least Effective•When employees acknowledge a discrepancy between theircurrent level of performance andwhere they ideally would like tobe•With employees who aremotivated to take initiative, beinnovative, and seek professional development •When the leader lacks expertise •When employees require much task direction and feedbackWhen to use the Pacesetting Style?When to use the Coaching Style?S UMMARYYou have come to the end of the module Leadership Styles. Some of the Summaryimportant points covered in this module are:•Leadership Styles refers to patterns of leadership behaviors across a widerange of situations.•The Directive Style is effective in crisis situations, in relativelystraightforward tasks, and with problem employees.•The Visionary Style is effective in times of change, with new employees,and in situations where the leader is perceived to be the expert.•The Affiliative Style is effective when used as part of a repertoire, whentasks are routine, when giving personal help, and in getting diverseindividuals to work together harmoniously.•The Participative Style is effective when employees are competent, whenthey must coordinate as a team, and when idea generation is critical tosuccess.•The Pacesetting Style is effective when employees are highly motivated,when quick results are required, and also in ambiguous situations whereemployees need to look to the leader as an example.•The Coaching Style is effective when employees acknowledge aperformance discrepancy, and with employees who are motivated to takeinitiative and be innovative.。