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Leadership




     Chapter 15
Topics
      Leadership                                                                                 Chapter 15
Different leaders behave in different ways – style, need, situation

         Leadership definition
         Differences in leadership and management
         Theories of leadership effectiveness
         Charismatic and transformational leadership
         How leaders use power and influence to get
          things done
         New leadership approaches for today’s
          turbulent environment

       Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
2
Leadership
Different leaders behave in different ways – style, need, situation

      There     is probably no topic more
          important to business success
          today than leadership
                      leadership                           occurs among people
                      involves                      the use of influence
                      is         used to attain goals
                                                                                                 Manager’s Challenge: Aramark Corp.


       Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
3
Nature of Leadership                                                                          travel the globe solving
                                                                                                  problems




        Leadership is the ability to influence people toward
         the attainment of organizational goals.
        Leadership is reciprocal, occurring among people.
        Leadership is a “people” activity, distinct from
         administrative paper shuffling or problem-solving
         activities.
        Leadership is dynamic and involves the use of
         power.

        Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
4
Leadership versus Management
    Management                                                                                    Leadership

    Promotes                                                                                          Promotes
    stability, order                                                                                  vision,
    and problem                                                                                       creativity, and
    solving within                                                                                    change
    existing
    organizational                           M                                                L
    structure and
    systems



    Takes care of where you are                                                          Takes you to a new place

    Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
5
Leader versus Manager Qualities
                        Leader Qualities                                             Manager Qualities
                        SOUL                                                              MIND
                        Visionary                                                         Rational
                        Passionate                                                        Consulting
                        Creative                                                          Persistent
                        Flexible                                                          Problem solving
                        Inspiring                                                         Tough-minded
                        Innovative                                                        Analytical
                        Courageous                                                        Structured
                        Imaginative                                                       Deliberate
                        Experimental                                                      Authoritative
                        Initiates change                                                  Stabilizing
                        Personal power                                                    Position power

    Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12

    Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
6
Leadership Traits

     Traits  - distinguishing personal
        characteristics, such as intelligence, values
        and appearance
     Great   Man approach - early research
        focused on leaders who had achieved a level
        of greatness
          –    Find out what made them great
          –    Find people with same traits

     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
7
Personal Characteristics of Leaders
    Physical Characteristics Personality                                                                                Social Characteristics
    Energy                   Self-confidence                                                                            Sociability, interpersonal skills
    Physical stamina         Honesty & integrity                                                                        Cooperativeness
                             Enthusiasm                                                                                 Ability to enlist cooperation
                             Desire to lead                                                                             Tact, diplomacy
    Social Background        Independence
    Education
    Mobility

    Intelligence and Ability                                            Work-related Characteristics
    Judgment,                                                           Achievement drive
    decisiveness                                                        Drive to excel
    Knowledge                                                           Conscientiousness in pursuit of goals
    Intelligence, cognitive                                             Persistence against obstacles, tenacity
    ability
      Source: Adapted from Bernard M. Bass, Stogdill’s Handbook of Leadership, rev. Ed. (New York: Free Press, 1981), 75-76. This adaptation appeared in R. Albanese and D. D. Van Fleet,
      Organizational Behavior: A managerial Viewpoint (Hinsdale, III.: The Dryden Press, 1983).

                 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
8
Behavioral Approaches
     Ohio State Studies
Consideration: people-oriented behavior
– Is mindful of subordinates
– Establishes mutual trust
– Provides open communication
– Develops teamwork

Initiating Structure: task-oriented behavior
– Directs subordinate work activities toward goal attainment
– Typically gives instructions, spends time planning, and
   emphasizes deadlines
– Provides explicit schedules of work activities


     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
9
Behavioral Approaches

     Michigan State Studies
                  At about the same time as Ohio State Studies
      University  of Michigan compared the
         behavior of effective and ineffective
         supervisors
                    Employee-centered                                     leaders – leaders who
                        establish high performance goals and displayed
                        supportive behavior toward subordinates
                    Job-centered                          leaders – leaders who favor meeting
                        schedules, keeping costs low and achieving production
                        efficiency


      Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
10
The Leadership Grid
                  Blake and Mouton; University of Texas
      Two-dimensional     leadership theory that
         measures the leader’s concern for people
         and for production

      Builds  on the work of Ohio State and
         Michigan State studies

                                                                      Experiential Exercise: T-P Leadership Questionnaire


      Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
11
The Leadership Grid
     High
         Leadership Grid            1,9
                                    Country Club Management                                                Team Management
                                                                                                                                                     9,9

                                    Thoughtful attention to the                                            Work accomplishment is from
                                    needs of people for satisfying                                         committed people; interdependence
                                    relationships leads to a com-                                          through a “common stake” in
                                    fortable, friendly organization                                        organization purpose leads to
                                    atmosphere and work tempo.
       Concern for People




                                                                                                           relationships of trust and respect.
                                                                       5,5            5,5
                                                          Middle-of-the-Road Management
                                                          Adequate organization performance is
                                                          possible through balancing the necessity
                                                          to get out work with maintaining morale
                                                          of
                                    Impoverished          people at a satisfactory level. Authority-Compliance
                                    Management                                            Efficiency in operations
                                    Exertion of minimum effort                            results from arranging
                                    to get required work done                             conditions of work in such a
                                    is appropriate to sustain                             way that human elements
                                    organization membership.                              interfere to a minimum
     Low                            1,1                                                   degree.
                                                                                                       9,1
                               Low                                  Concern for Production                                                                    High
                            Source: The Leadership Grid Figure from Robert R. Blake and Anne Adams McCanse, Leadership Dilemmas-Grid Solutions (Houston: Gulf, 1991), 29.
                            Copyright 1991, by Scientific Methods, Inc. Reproduced by permission of the owners.
                       Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
12
Contingency Approaches - the
     relationship between leadership styles and specific
     organizational situations



      Fiedler’s
               Contingency Theory
      Hersey and Blanchard’s Situational
       Leadership Theory
      Evans and House Path-Goal Theory




      Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
13
Contingency Theory

     A Leader needs to know
     Whether they have a relationship- or task-oriented style
     And should diagnose the situation and determine the
     favorableness of the following three areas




     Source: Fred E. Fiedler, “The Effects of Leadership Training and Experience: A Contingency Model Interpretation,” Administrative Science Quarterly 17 (1972), 455. Reprinted by
     permission of Administrative Science Quarterly.



       Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
14
Situational Leadership Theory
 Links leader’s behavioral style with subordinates’ task readiness

         Follower Characteristics
             Low Readiness Level                                               Appropriate Leader Style
          Low Readiness Level                                                     Telling

         Moderate Readiness Level                                                 Selling

         High Readiness Level                                                     Participating


          Very High Readiness Level                                               Delegating
       Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
15
Path-Goal Theory
     - Leader’s responsibility is to increase motivation by
     clarifying the behaviors necessary for task completion
     and reward




                                                                                               Source: Based on Bernard M. Bass, “Leadership:
                                                                                               Good, Better, Best,” Organizational Dynamics 13
                                                                                               (Winter 1985), 26-40.




     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
16
Path-Goal Theory
      Leader Behaviors
                  Classification of (4) leader behaviors

             Supportive leadership:
         -    Leader behavior that shows concern for subordinates
         -    Open, friendly, and approachable
         -    Creates a team climate
         -    Treats subordinates as equals

             Directive leadership:
         -    Tells subordinates exactly what they are supposed to
              do
         -    Planning, making schedules, setting performance
              goals, and behavior standards
     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
17
Path-Goal Theory
      Leaders Behaviors
               Classification of (4) leader behaviors

           Participative leadership:
      …     Consults with his or her subordinates about decisions

           Achievement-oriented leadership:
      …     Sets clear and challenging goals for subordinates
      …     Behavior stresses high-quality performance




     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
18
Path-Goal Situations &
       Preferred Leader Behavior




     Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152.


       Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
19
Leading Change

     Transactional Leaders
        A leader who clarifies role and task requirements
        Initiates structure
        Provides rewards
        And displays consideration for subordinates
        Meet the social needs of subordinates



     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
20
Leading Change

     Charismatic Leaders
      A leader who has the ability to motivate
       subordinates to transcend their expected
       performance
      Tend to be less predictable than
       transactional leaders
      Create an atmosphere of change
      May be obsessed by visionary ideas


      Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
21
Leading Change

      Transformational                                      Leader
        Similar to charismatic leaders
        A leader distinguished by their special ability to bring
         about innovation and change by
           Recognizing followers’ needs and concerns
           Helping them look at old problems in new ways
           Encouraging them to question the status quo




      Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
22
Sources of Power
         Legitimate Power: power coming from a formal
          management position.
         Reward Power: stems from the authority to bestow
          rewards on other people.
         Coercive Power: the authority to punish or
          recommend punishment.
         Expert Power: leader’s special knowledge or skill
          regarding the tasks performed by followers.
         Referent Power: personality characteristics that
          command subordinates’ identification, respect, and
          admiration so they wish to emulate the leader
     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
23
Post-Heroic Leadership
     for Turbulent Times

      The   turbulence and uncertainty of the
         environment in which most organizations are
         operating is a significant influence on
         leadership styles
      Post-heroic                          leader’s major characteristic is
         humility
           •    Humility – being unpretentious and modest rather than
                arrogant and prideful

      Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
24
Post-Heroic Leadership
     for Turbulent Times

      Five  Approaches of Post-Heroic Leadership
        for Turbulent Time
          1.       Servant Leadership – a leader who works to
                   fulfill subordinates’ needs and goals as well as to
                   achieve the organization’s larger mission
          2.       Level 5 Leadership – a leader who builds an
                   enduring great organization through a
                   combination of humility and professional resolve

     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
25
Post-Heroic Leadership
     for Turbulent Times

          3.       Interactive Leadership – a leader characterized
                   by values such as inclusion, collaboration,
                   relationship building and caring
          4.       E-Leadership – a leader who uses information
                   technology as a means to achieve organizational
                   goals
          5.       Moral Leadership – distinguishing between right
                   and wrong and choosing to do right in the
                   practice of leadership

     Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved.
26

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Chapter 15 leadership

  • 1. Leadership Chapter 15
  • 2. Topics Leadership Chapter 15 Different leaders behave in different ways – style, need, situation  Leadership definition  Differences in leadership and management  Theories of leadership effectiveness  Charismatic and transformational leadership  How leaders use power and influence to get things done  New leadership approaches for today’s turbulent environment Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 2
  • 3. Leadership Different leaders behave in different ways – style, need, situation  There is probably no topic more important to business success today than leadership leadership occurs among people involves the use of influence is used to attain goals Manager’s Challenge: Aramark Corp. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 3
  • 4. Nature of Leadership travel the globe solving problems  Leadership is the ability to influence people toward the attainment of organizational goals.  Leadership is reciprocal, occurring among people.  Leadership is a “people” activity, distinct from administrative paper shuffling or problem-solving activities.  Leadership is dynamic and involves the use of power. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 4
  • 5. Leadership versus Management Management Leadership Promotes Promotes stability, order vision, and problem creativity, and solving within change existing organizational M L structure and systems Takes care of where you are Takes you to a new place Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 5
  • 6. Leader versus Manager Qualities Leader Qualities Manager Qualities SOUL MIND Visionary Rational Passionate Consulting Creative Persistent Flexible Problem solving Inspiring Tough-minded Innovative Analytical Courageous Structured Imaginative Deliberate Experimental Authoritative Initiates change Stabilizing Personal power Position power Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12 Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 6
  • 7. Leadership Traits  Traits - distinguishing personal characteristics, such as intelligence, values and appearance  Great Man approach - early research focused on leaders who had achieved a level of greatness – Find out what made them great – Find people with same traits Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 7
  • 8. Personal Characteristics of Leaders Physical Characteristics Personality Social Characteristics Energy Self-confidence Sociability, interpersonal skills Physical stamina Honesty & integrity Cooperativeness Enthusiasm Ability to enlist cooperation Desire to lead Tact, diplomacy Social Background Independence Education Mobility Intelligence and Ability Work-related Characteristics Judgment, Achievement drive decisiveness Drive to excel Knowledge Conscientiousness in pursuit of goals Intelligence, cognitive Persistence against obstacles, tenacity ability Source: Adapted from Bernard M. Bass, Stogdill’s Handbook of Leadership, rev. Ed. (New York: Free Press, 1981), 75-76. This adaptation appeared in R. Albanese and D. D. Van Fleet, Organizational Behavior: A managerial Viewpoint (Hinsdale, III.: The Dryden Press, 1983). Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 8
  • 9. Behavioral Approaches Ohio State Studies Consideration: people-oriented behavior – Is mindful of subordinates – Establishes mutual trust – Provides open communication – Develops teamwork Initiating Structure: task-oriented behavior – Directs subordinate work activities toward goal attainment – Typically gives instructions, spends time planning, and emphasizes deadlines – Provides explicit schedules of work activities Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 9
  • 10. Behavioral Approaches Michigan State Studies At about the same time as Ohio State Studies  University of Michigan compared the behavior of effective and ineffective supervisors Employee-centered leaders – leaders who establish high performance goals and displayed supportive behavior toward subordinates Job-centered leaders – leaders who favor meeting schedules, keeping costs low and achieving production efficiency Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 10
  • 11. The Leadership Grid Blake and Mouton; University of Texas  Two-dimensional leadership theory that measures the leader’s concern for people and for production  Builds on the work of Ohio State and Michigan State studies Experiential Exercise: T-P Leadership Questionnaire Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 11
  • 12. The Leadership Grid High Leadership Grid 1,9 Country Club Management Team Management 9,9 Thoughtful attention to the Work accomplishment is from needs of people for satisfying committed people; interdependence relationships leads to a com- through a “common stake” in fortable, friendly organization organization purpose leads to atmosphere and work tempo. Concern for People relationships of trust and respect. 5,5 5,5 Middle-of-the-Road Management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of Impoverished people at a satisfactory level. Authority-Compliance Management Efficiency in operations Exertion of minimum effort results from arranging to get required work done conditions of work in such a is appropriate to sustain way that human elements organization membership. interfere to a minimum Low 1,1 degree. 9,1 Low Concern for Production High Source: The Leadership Grid Figure from Robert R. Blake and Anne Adams McCanse, Leadership Dilemmas-Grid Solutions (Houston: Gulf, 1991), 29. Copyright 1991, by Scientific Methods, Inc. Reproduced by permission of the owners. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 12
  • 13. Contingency Approaches - the relationship between leadership styles and specific organizational situations  Fiedler’s Contingency Theory  Hersey and Blanchard’s Situational Leadership Theory  Evans and House Path-Goal Theory Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 13
  • 14. Contingency Theory A Leader needs to know Whether they have a relationship- or task-oriented style And should diagnose the situation and determine the favorableness of the following three areas Source: Fred E. Fiedler, “The Effects of Leadership Training and Experience: A Contingency Model Interpretation,” Administrative Science Quarterly 17 (1972), 455. Reprinted by permission of Administrative Science Quarterly. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 14
  • 15. Situational Leadership Theory Links leader’s behavioral style with subordinates’ task readiness Follower Characteristics Low Readiness Level Appropriate Leader Style Low Readiness Level Telling Moderate Readiness Level Selling High Readiness Level Participating Very High Readiness Level Delegating Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 15
  • 16. Path-Goal Theory - Leader’s responsibility is to increase motivation by clarifying the behaviors necessary for task completion and reward Source: Based on Bernard M. Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985), 26-40. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 16
  • 17. Path-Goal Theory Leader Behaviors Classification of (4) leader behaviors  Supportive leadership: - Leader behavior that shows concern for subordinates - Open, friendly, and approachable - Creates a team climate - Treats subordinates as equals  Directive leadership: - Tells subordinates exactly what they are supposed to do - Planning, making schedules, setting performance goals, and behavior standards Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 17
  • 18. Path-Goal Theory Leaders Behaviors Classification of (4) leader behaviors  Participative leadership: … Consults with his or her subordinates about decisions  Achievement-oriented leadership: … Sets clear and challenging goals for subordinates … Behavior stresses high-quality performance Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 18
  • 19. Path-Goal Situations & Preferred Leader Behavior Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152. Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 19
  • 20. Leading Change Transactional Leaders  A leader who clarifies role and task requirements  Initiates structure  Provides rewards  And displays consideration for subordinates  Meet the social needs of subordinates Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 20
  • 21. Leading Change Charismatic Leaders  A leader who has the ability to motivate subordinates to transcend their expected performance  Tend to be less predictable than transactional leaders  Create an atmosphere of change  May be obsessed by visionary ideas Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 21
  • 22. Leading Change  Transformational Leader  Similar to charismatic leaders  A leader distinguished by their special ability to bring about innovation and change by  Recognizing followers’ needs and concerns  Helping them look at old problems in new ways  Encouraging them to question the status quo Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 22
  • 23. Sources of Power  Legitimate Power: power coming from a formal management position.  Reward Power: stems from the authority to bestow rewards on other people.  Coercive Power: the authority to punish or recommend punishment.  Expert Power: leader’s special knowledge or skill regarding the tasks performed by followers.  Referent Power: personality characteristics that command subordinates’ identification, respect, and admiration so they wish to emulate the leader Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 23
  • 24. Post-Heroic Leadership for Turbulent Times  The turbulence and uncertainty of the environment in which most organizations are operating is a significant influence on leadership styles  Post-heroic leader’s major characteristic is humility • Humility – being unpretentious and modest rather than arrogant and prideful Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 24
  • 25. Post-Heroic Leadership for Turbulent Times  Five Approaches of Post-Heroic Leadership for Turbulent Time 1. Servant Leadership – a leader who works to fulfill subordinates’ needs and goals as well as to achieve the organization’s larger mission 2. Level 5 Leadership – a leader who builds an enduring great organization through a combination of humility and professional resolve Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 25
  • 26. Post-Heroic Leadership for Turbulent Times 3. Interactive Leadership – a leader characterized by values such as inclusion, collaboration, relationship building and caring 4. E-Leadership – a leader who uses information technology as a means to achieve organizational goals 5. Moral Leadership – distinguishing between right and wrong and choosing to do right in the practice of leadership Copyright © 2005 by South-Western, a division of Thomson Learning. All rights reserved. 26