Entrepreneurial behaviour

1. Leadership &
Communication Skills
Mohd Rafi/Ghazali Ahmad, Ph.D
©2009/10

2. Leadership Skills

3. What is Leadership?
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Leadership is a process in which a
leader attempts to influence his or her
followers to establish and accomplish
a goal or goals.
Leadership is a continuous process,
with the accomplishment of one goal
becoming the beginning of a new goal.
APT 2013
© 2009/10 Dr. Rafi/Dr.Ghazali
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4. What Leadership is Not
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Leadership is not just a person or
group of people in a high position;
understanding leadership is not
complete without understanding
interactions between a leader and his
or her followers.
Neither is leadership merely the ability
or static capacity of a leader.
APT 2013
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5. Leadership vs.
Management
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Management involves planning the goals of an
organization, recruits the necessary staff, organizes
them, and closely supervises them to make sure
that the initial plan is executed properly (PODC).
Leadership goes beyond management of plans and
tasks. It envisions the future and sets a new
direction for the organization. Successful leaders
mobilize all possible means and human resources;
they inspire all members of the organization to
support the new mission and execute it with
enthusiasm.
APT 2013
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6. The Role of a Leader

To ensure that the mission and goals of the
organization is achieved by exercising their
power and influence over subordinates.
That power is exercised in earlier stages by
motivating followers to get the job done and
in later stages by rewarding or punishing
those who do or do not perform to the level
of expectation.
APT 2013
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7. The Role of a Leader
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Once a goal is set, the leader assumes the
role of ensuring successful accomplishment
of the goal.
Another vital role of leadership is to
represent the group/organization and link it
to the external world in order to obtain vital
resources to carry out its mission.
When necessary, leadership has to defend
the organization's integrity.
APT 2013
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8. Additional Roles
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Challenge the process—search out
challenging opportunities, take risks, and
learn from mistakes.
Inspire others to come together and agree
on a future direction or goal— create a
shared vision by thinking about the future,
having a strong positive vision, and
encouraging others to participate.
APT 2013
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9. Additional Roles
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Help others to act—help others to work together, to
cooperate and collaborate by developing shared
goals and building trust, and help to make others
stronger by encouraging them to develop their skills
and talents.
Set an example—behave in ways that are
consistent with professed values and help others to
achieve small gains that keep them motivated,
especially when a goal will not be achieved quickly.
Encourage others—recognize each individual's
contributions to the success of a project.
APT 2013
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10. Characteristics
Successful and
Leader
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of a
Effective
Inborn or acquired?
Personality traits: determination, emotional
stability, diplomacy, self-confidence,
personal integrity, originality, and creativity.
Intellectual abilities: judgmental ability,
knowledge, and verbal communication
ability.
Physical traits: age, height, weight, and
physical attractiveness.
APT 2013
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11. Types of Leader
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Autocratic leaders set their goals without
considering the opinions of their followers,
then command their followers to execute
their assigned tasks without question.
Consultative leaders solicit the opinions and
ideas of their followers in the goal-setting
process but ultimately determine important
goals and task assignments on their own.
APT 2013
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12. Types of Leader
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Democratic or participative leaders
participate equally in the process with their
followers and let the group make decisions.
Extremely laid-back leaders, so called
laissez-faire leaders, let the group take
whatever action its members feel is
necessary.
APT 2013
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13. Leadership Styles
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The job-centered leader closely supervises
subordinates to make sure they perform their tasks
following the specified procedures. This type of
leader relies on reward, punishment, and legitimate
power to influence the behavior of followers.
The employee-centered leader believes that
creating a supportive work environment ultimately is
the road to superior organizational performance.
The employee-centered leader shows great
concern about the employees' emotional well-being,
personal growth and development, and
achievement.
APT 2013
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14. Leadership Styles
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The leadership style of initiating structure is
similar to the job-centered leadership style,
whereas consideration is similar to the
employee-centered leadership style.
A leader who could demonstrate both high
initiating structure (job-centered) and high
consideration (employee-centered) would
be successful and effective in all
circumstances.
APT 2013
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15. Leadership Styles
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Task-oriented leadership or situational leadership
style is appropriate when the situation is either
extremely favorable (good relationship, well-defined
tasks, have power) or extremely unfavorable to the
leader.
If situation is moderately favorable, people-oriented
leadership style is appropriate.
Directive leadership style is effective when followers
are inexperienced and lack maturity and
responsibility.
Supportive leadership is effective when followers
are experienced and/but willing to take charge.
APT 2013
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16. Charismatic and
Transformational
Leadership

A great leader is remembered for his or her
charisma, which means "divinely inspired gift" in
Greek. Charismatic leaders have profound effects
on followers. Through their exceptional inspirational
and verbal ability, they articulate ideological goals
and missions, communicate to followers with
passion and inspiration, set an example in their own
behaviors, and demand hard work and commitment
from followers, above and beyond normal
expectation (e.g. Adolph Hitler).
APT 2013
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17. Charismatic and
Transformational
Leadership
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Transformational leadership is an extension
of charismatic leadership theory.
Bernard Bass (1985) views leadership as a
process of social exchange between a
leader and his or her followers.
In exchange for desired behaviors and task
accomplishment, a leader provides rewards
to followers. This nominal social exchange
process is called transactional leadership.
APT 2013
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18. Charismatic and
Transformational
Leadership
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A transformational leader places a higher
level of trust in his or her followers and
demands a much higher level of loyalty and
performance beyond normal expectations.
With unusual charismatic qualities and
inspirational person-to-person interactions,
a transformational leader transforms and
motivates followers to make extra efforts to
turn around ailing organizational situations
into success stories (e.g. Lee Iacocca).
APT 2013
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19. Visionary Leadership

Visionary Leadership increases
efficiency by moving decision-making
responsibility to the frontline. Efficiency is
achieved with limited supervision. To make
frontline responsibility effective, leadership
must give workers opportunity to develop
quality decision-making skills and learn to
trust them (e.g. Wal-Mart stores & HP).
APT 2013
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20. Elements of Visionary
Leadership

Visionary leadership push responsibility to
the frontline.
– When priority is responsibility at the frontline,
leadership will seek talent, people he can
depend on to complete tasks with limited
supervision. The policy will be “do it.” The
frontline develops quality decision-making skills
that are also found in layers of management.
APT 2013
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21. Elements of Visionary
Leadership

Visionary leadership leads to higher
efficiency.
– High efficiency workplaces are based on
visionary leadership, where workplace policies
authorize decision-making responsibility at the
frontline. Limited supervision is needed with
worker responsibility.
APT 2013
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22. Elements of Visionary
Leadership

Visionary leadership delegates decisionmaking responsibility.
– Decision-making responsibility, at all levels,
allows minor problems to be solved by those
who are first aware of them. Management can
stay focused on problems related to the
organization goals. As a bonus, employee
motivation is high when they feel what they are
doing makes a difference.
APT 2013
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23. Elements of Visionary
Leadership

Visionary leadership provides learning
opportunity.
– Learning to make quality decisions is the result
of worker responsibility, resulting in the
development of personal skills. An experienced
workforce prevents elementary problems.
Continuous learning opportunity is highly
motivating—it controls employee inspiration, skill
level and quality.
APT 2013
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24. Elements of Visionary
Leadership

Visionary leadership rewards achievers.
– People, who have a burning drive to be an
achiever, seek opportunity in organizations that
have a reputation of supporting personal
ambitions. Their presence inspire co-workers to
do the same or simply be proud of their
surroundings. Visionary leadership welcomes
subordinates more capable than themselves,
because their first priority is to get the job done
with limited supervision.
APT 2013
© 2009/10 Dr. Rafi/Dr.Ghazali
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25. Elements of Visionary
Leadership

Visionary leadership nourishes natural
talent.
– Where workers have decision-making
responsibility, unique skills and natural talent are
soon recognized by coworkers and leadership.
An employee may discover talent he did not
know he had. With discovery, he can search for
ways to develop it. Efficiency increases when
natural talent is in harmony with assigned tasks.
APT 2013
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26. Entrepreneurial
Leadership

"It is a constant struggle to find
people who can be both
entrepreneurial and conventional
leaders... Finding them is the
fundamental issue in any company
that wants to grow."
– Roger Ackerman, Chairman and CEO, Corning, a Fortune
50 company
APT 2013
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27. What is Entrepreneurial
Leadership?
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In the increasingly turbulent and competitive
environment business firms face today, a
new type of "entrepreneurial" leader distinct
from other behavioral forms of managerial
leadership is required.
Entrepreneurial leadership is leadership that
is based on the attitude that the leader is
self-employed.
APT 2013
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28. What is Entrepreneurial
Leadership?

Entrepreneurial leadership involves
instilling the confidence to think,
behave and act with entrepreneurship
in the interests of fully realizing the
intended purpose of the organization
to the beneficial growth of all
stakeholders involved.
APT 2013
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29. Elements of
Entrepreneurial Leadership
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Take initiative and act as if they are playing a
critical role in the organization rather than a mostly
important one and energize their people,
Demonstrate entrepreneurial creativity ,
search continuously for new opportunities and
pursue the,
Take risk , venture into new areas and provide
strategic direction and inspiration to their people,
Take responsibility for the failures of their team,
learn from these failures and use them as a step to
ultimate success and strategic achievement
APT 2013
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30. 8 common characteristics –
entrepreneurs vs. leaders
Entrepreneurs
Leaders
Risk taking
1
4
Achievement oriented
2
3
Creative
3
5
Visionary
4
1
Able to motivated
5
2
Persistence
6
7
Flexible
7
4
Patient
8
6
Source- Zainai Mohamad, Entrepreneurship Education – The Future of Entrepreneurship in Higher Education.
Entrepreneurial Leadership Training Programme Series. 11-12 Oct.2011, Kota Bharu, organised by AKEPT and
UMK
APT 2013
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31. Communication Skills:
Negotiation & Networking

32. Communication Skills
Defined
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Communication is the process by which
information is exchanged between
individuals. It requires a shared
understanding of symbol systems, such as
language and mathematics.
Communication skills refer to the skills in
using language effectively and persuasively.
APT 2013
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33. Types of Communication
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Verbal or oral communication
– Speaking, language, intonation, choice of words,
loudness, orator ship, clarity, confidence, etc.
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Non-verbal or body language
– Gestures, body movement, physical movement,
restlessness, overwhelmed, etc.

Written communication
– Readable, convincing, short, precise, clear
message, non-grammatical error, standard
formatting, using symbols, acronyms, etc.
APT 2013
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34. Effective Communication

The party who receive the message
understood clearly the content of the
message, therefore message must be:
–
–
–
–
–
–
Precise
Concise
Clear
Meaningful
Convincing
Authoritative
APT 2013
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35. Communication Skills –
Area of Importance
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Sales/business presentation
Project proposal
Business meetings
Business negotiations
Sales promotions
Project biddings
Daily communication
APT 2013
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36. Negotiation Skills
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Successful entrepreneur don't
take "no" for an answer. Get
what you want through effective
negotiation.
Precedes before reaching an
agreement.
MOU
INTENT
Negotiate
APT 2013
MOA
Negotiate
© 2009/10 Dr. Rafi/Dr.Ghazali
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37. Importance of
Negotiation Skills
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The strength of your agreements,
understandings and relationships can make
the difference between success and failure.
Weak agreements always break down. They
bring nagging dissatisfaction and
aggravation into your business and personal
lives.
Strong agreements help you reach and
exceed your own objectives, while bringing
mutual satisfaction to all parties.
APT 2013
© 2009/10 Dr. Rafi/Dr.Ghazali
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38. Situations of Negotiation
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Determining the price and terms at which you buy or sell;
Closing deals with an important customer;
Persuading others to work with and not against you;
Setting or meeting budgets;
Finalizing and administrating simple or complex contracts;
Working on a problem with someone important to you;
Managing and supervising those responsible for doing the
work properly in your organization, in other departments,
and on the outside; and
Breaking or avoiding a serious impasse
APT 2013
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39. Negotiation Success
Factors
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Know your own facts and the other party in
advance
Projects your confidence visibly
Use any hidden leverage
Understand and use your power base
Do not enter into negotiation until you got all
the facts verified
Always think long term relationship
Do not dictate your term, communicate!
Win-Win strategy
APT 2013
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40. Networking Skills
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What is network?
– Something resembling an open work fabric or
structure in form or concept, especially:
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APT 2013
A system of lines or channels that cross or
interconnect: a network of railroads.
A complex, interconnected group or system: an
espionage network.
An extended group of people with similar interests or
concerns who interact and remain in informal contact
for mutual assistance or support.
© 2009/10 Dr. Rafi/Dr.Ghazali
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41. Networking Skills

Networking
– To interact or engage in informal
communication with others for mutual
assistance or support.

Networking skills
– The ability to take advantage or benefits
of the network for the betterment of the
organization
APT 2013
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42. Types of Networks
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Formal and Informal Networks
National Networks
Regional Networks
Tailor-made Networks
Event Networks
APT 2013
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43. Entrepreneurial
Networking
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In business, entrepreneurial networks are
social organizations offering different types of
resources to start or improve entrepreneurial
projects. Having adequate human resources is a
key factor for entrepreneurial achievements.
Combined with leadership, the entrepreneurial
network is an indispensable kind of social network
not only necessary to properly run the business or
project, but also to differentiate the business from
similar projects.
APT 2013
© 2009/10 Dr. Rafi/Dr.Ghazali
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44. Purpose of Networking

To create pool of talent (exchanges)
– The goal of most entrepreneurial networks is to
bring together a broad selection of professionals
and resources that complement each other's
endeavors. Initially a key priority is to aid
successful business launches. Subsequently
provide motivation, direction and increase
access to opportunities and other skill sets.
Promotion of each members talents and services
both within the network and out in the broader
market increases opportunities for all
participants.
APT 2013
© 2009/10 Dr. Rafi/Dr.Ghazali
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45. Purpose of Networking

To share/acquire resources at
competitive rate
– One of the key needs of any startup is
capital, and often entrepreneurial
networks focus on providing such
financial resources, particularly tailored to
their membership demographic.
APT 2013
© 2009/10 Dr. Rafi/Dr.Ghazali
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46. Purpose of Networking

To stand as a common voice (unified
force)
– Entrepreneurial networks may also
become community involved, endorsing
reforms, legislation or other municipal
drives that accommodate their
organization's goals.
APT 2013
© 2009/10 Dr. Rafi/Dr.Ghazali
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47. Membership
Composition
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Lawyers, various
specialties
Scientists
Engineers
Architects
Contractors/construction
managers
Real estate
professionals
Suppliers
Government people or
institutions
APT 2013
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Partners
High skilled employees
Clients or any other
kind of social contacts
that can make the
entrepreneurial
business (or project)
successful
Mentors
Investors
© 2009/10 Dr. Rafi/Dr.Ghazali
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48. Tips for Better
Networking
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It’s not who you know. It’s also who they
know.
Know what you’re looking for before you
look.
Schmooze with care.
Consistency is king (even though cash is
important too).
Prioritize tangibility.
Build relationships, not acquaintanceships.
APT 2013
© 2009/10 Dr. Rafi/Dr.Ghazali
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