Similarities and differences between the University of Michigan and Ohio State University leadership models

Introduction

Ohio State University and the University of Michigan performed a research on leadership at about the same period; between 1940s to 1950s. Even though during that period, influence on leadership studies more to autocratic and democratic but the conducted researches by these two universities more to determine the behaviour of effective leaders which later those identified behaviour were named as leadership style.

The objective of this paper is to discuss on similarities and differences of the leadership styles by University of Michigan and Ohio State University. The content of this paper will as follows: firstly, a review on University of Michigan leadership model and the second part, is a review on Ohio State University leadership model. Finally, a discussion on similarities and differences of the leadership styles between the two universities.

University of Michigan: Job-Centered and Employee-Centered Behavior

The University of Michigan’s Survey Research Center, under the principal direction of Rensis Likert, conducted studies to determine leadership effectiveness. Their main objectives are:

1. To classify the leaders as effective and ineffective by comparing the behaviour of leaders
2. To determine reasons for effective leadership.

The University of Michigan leadership model stated that a leader is either more job-centered or more employee-centered as illustrated in below Figure 1.

Figure 1: University of Michigan Leadership Model: a one-dimensional continuum between two leadership styles.

The job-centered style has scales measuring two job-oriented behaviours of goal emphasis and work facilitation. Job-centered behavior refers to the extent to which the leader takes charge to get the job done. The leader closely directs subordinates with clear roles and goals, while the manager tells them what to do and how to do it as they work toward goal achievement.

The employee-centered style has scales measuring two employee-oriented behaviours of supportive leadership and interaction facilitation. Employee-centered behaviour refers to the extent to which the leader focuses on meeting the human needs of employees while developing relationships. The leader is sensitive to subordinates and communicates to develop trust, support, and respect while looking out for their welfare.

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Ohio State University: Initiating Structure and Consideration Behavior

Likes University of Michigan, The Personnel Research Board of Ohio State University, under the principal direction of Ralph Stogdill, also conducted a study on the same purpose which is to determine effective leadership styles. They developed Leader Behaviour Description Questionnaire (LBDQ) and from the questionnaires, their findings on leadership styles as follows:

1. Initiating structure behaviour where the leadership style is essentially the same as the job-centered leadership style of the University of Michigan; which focuses on getting the job done.
2. Consideration behaviour where this leadership style is essentially the same as the employee-centered leadership style which focuses on meeting people’s needs and developing relationships.

Ohio State University stated that because a leader can be on high or low sides of initiating structure and/or consideration, they developed four leadership styles as follows:

1. low initiating structure and high consideration,
2. high initiating structure and high consideration,
3. low initiating structure and low consideration, and
4. high initiating structure and low consideration.

Leaders with high structure and low consideration behaviour use one-way communications, and decisions are made by the managers, whereas leaders with high consideration and low structure use two-way communications and tend to share decision making.

Figure 2: Model of Ohio State University illustrates the four leadership styles on their two dimensions.

Conclusion:

1. Similarities between Leadership Models and Their Contributions

• · Both of the universities have developed a questionnaire and conducted a research that have same objective which is to determine the behaviour of effective leader
• · Both researches are conducted in same period between 1940s to 1950s.
• · Both universities developed leadership model that emphasis on same definitions which are on task-oriented and people-oriented style of leadership, even though used term is different.

University	Task oriented style	People oriented style
University of Michigan	Job-centered	Employee-centered
Ohio State University	Initiating structure	Consideration

· The two leadership models of both universities are proven due to strong research support and repeatedly being tested.

2. Differences between Leadership Models and Their Contributions

• The Ohio State and University of Michigan leadership models are different in that the University of Michigan places the two leadership behaviours at opposite ends of the same continuum, making it one-dimensional. The Ohio State University Model considers the two behaviours independent of one another, making it two-dimensional.
• University of Michigan’s one dimensional model proposed two leadership styles (1) employee-centered and (2) job-centered while Ohio State leadership model has four leadership styles as follows, (1) low initiating structure and high consideration, (2) high initiating structure and high consideration, (3) low initiating structure and low consideration, and (4) high initiating structure and low consideration.

References

Robert N. Lussier and Christopher F. Achua, (2010) Leadership: Theory, Application, & Skill Development, USA, South-Western Cengage Learning.

Richard L. Daft (2011). Leadership (5^th edition). USA: South-Western Cengage Learning.

Time Value of Money:Future Value

Future Value is the value of money at a specified date in the future that is equivalent in value to a specified sum today.

Future Value – using Formula

FVn = PV (1 + i)^n

Where FV = the future of the investment at n the end of “n” years

i= the annual interest (or discount) rate

n = number of years

PV = the present value, or original amount invested at the beginning of the first year

Future Value Example

Example: What will be the FV of $100 in 2 years at interest rate of 6%?

FV2= PV(1+i)^2 = $100 (1+.06)^2

$100 (1.06)^2 = $112.36

Increasing Future Value

Future Value can be increased by:

• Increasing number of years of compounding (n)

• Increasing the interest or discount rate, (i)

• Increasing the original investment (PV)

Example: Changing I, N, and PV

(a) You deposit $500 in a bank for 2 years … what is the FV at 2%? What is the FV if you change interest rate to 6%?

FV at 2% = 500*(1.02)^2 = $520.2

FV at 6% = 500*(1.06)^2 = $561.8

(b) Continue same example but change time to 10 years. What is the FV now?

FV at 6% = 500*(1.06)^10= $895.42

(c) Continue same example but change contribution to $1500. What is the FV now?

FV at 6% = 1,500*(1.06)^10 = $2,686.27

Time Value of Money: Simple Interest vs Compound Interest

Simple Interest is interest is earned only on principal.

Example: Compute simple interest on $100 invested at 6% per year for three years.

1st year interest is $6.00

2nd year interest is $6.00

3rd year interest is $6.00

Total interest earned: $18.00

Compound Interest is when interest paid on an investment during the first period is added to the principal; then, during the second period, interest is earned on the new sum (that includes the principal and interest earned so far) and so on. In simple interest calculation, interest is earned only on principal.

Compound Interest

Example: Compute compound interest on $100 invested at 6% for three years with annual compounding.

1st year interest is $6.00 Principal is $106.00

2nd year interest is $6.36 Principal is $112.36

3rd year interest is $6.74 Principal is $119.11

Total interest earned: $19.10

Leadership: Nine Traits of Effective Leader.

Figure 2: Universal traits of effective leaders

Studies have shown that there are some traits which commonly and consistently appear in a successful and effective leader, as such, trait theories do have some claim to “universality”. For the theory to be truly universal, all leaders should have to have all the same traits. The above mentioned common traits are illustrated in Figure 2.

Dominance

Dominance is synonym to leadership, the one that every successful leader should have. It is about the willingness and eagerness of taking in charge or being a manager, ahead of everyone else. It is one of the traits on surgency dimension in Big Five Model.

High Energy

High energy in leaders should means that they have stamina to drive and work hard toward achieving a goal, in same time, they be able to tolerate stress as well. Leaders possesses enthusiasm and don’t give up easily and also high tolerance for frustration as they strive to overcome obstacles through proper preparation and anticipation of problems.

Self-Confidence

Self-confidence is about the self-assurance that demonstrated by a leader in making any judgments, decision making, presenting ideas, and showing his capabilities. A leader who has positive self-image and display certainty wills fosters confidence among his followers, gains respect and admiration and very determine to takes on challenges.

Locus of Control

Locus of control is on a continuum between external and internal belief in control over one’s destiny. Internalizers (leaders) tend to be future oriented and believe that they control their fate and that their behavior directly affects their performance. Leaders take responsibility for who they are, for their behavior and performance, and for the performance of their organizational unit. Meanwhile externalizers believe that they have no control over their fate and that their behavior has little to do with their performance. They generally have lower levels of performance.

Stability

Stability is associated with managerial effectiveness and advancement. Stable leaders are emotionally in control of themselves, secure, and always positive. An effective leaders also have a good understanding of their own strengths and weaknesses, and they are oriented toward self-improvement rather than being defensive.

Integrity

Integrity refers to behaviour that is honest and ethical, making a person trustworthy. Many studies show that the ability to influence people is based on integrity. The fact that if a leader found untrustworthy, it is difficult to retain the loyalty of his followers or to obtain cooperation and support from peers and superiors.

Intelligence

Leaders generally have above-average intelligence, that why, a company will seek a graduate from college or university for a management position rather than an average high school leavers. Intelligence refers to cognitive ability to think critically, to solve problems, and to make decisions. There are two most recognize intelligence which as Intelligence Quotient (IQ) and emotional intelligence or Emotional Quotient (EQ). IQ is the ability to think critically and creatively while EQ is the ability to work well with people. There are four components of EQ as follows:

· Self-awareness relates to being conscious of your emotions and how they affect your personal and professional life.

· Social awareness relates to the ability to understand others.

· Self-management relates to the ability to control disruptive or negative emotions.

· Relationship management relates to their ability to work well with others, build effective relationships by communicating, responding to emotions, handling conflict, and influencing others.

Flexibility

Flexibility refers to the ability to adjust to different situations. Effective leaders are flexible and adapt to the situation and possess the ability to influence others bring about change.

Sensitivity to others

Sensitivity to others refers to understanding group members as individuals, knowing their issues, and finding the best way to communicate and influence them. To be sensitive to others requires empathy i.e. the power of understanding and imaginatively entering into another person's feelings.