Leadership

Chapter 15

Leadership
Different leaders behave in different ways style, need, situation

There is probably no topic more important to business success today than leadership
leadership involves is

occurs among people

the use of influence

Managers Challenge: Aramark Corp.

used to attain goals

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

2

Leadership

Topics 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 todays turbulent environment

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

3

Nature of Leadership

travel the globe solving problems

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.

Leadership versus Management

Management Promotes stability, order and problem solving within existing organizational structure and systems Leadership Promotes vision, creativity, and change

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
SOUL Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Initiates change Personal power

Manager Qualities
MIND Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberate Authoritative Stabilizing 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 = personal characteristics

Traits - early efforts to understand leadership success focused on leaders personal characteristics 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 Self-confidence Energy Honesty & integrity Physical stamina Enthusiasm Desire to lead Social Background Independence Education Mobility Intelligence and Ability Judgment, decisiveness Knowledge Intelligence, cognitive ability Social Characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy

Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity

Source: Adapted from Bernard M. Bass, Stogdills 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 Studies

At about the same time as Ohio State Studies

University of Michigan compared the behavior of effective and ineffective supervisors

Employee-centered

leaders Job-centered leaders

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

10

The Leadership Grid

Blake and Mouton

Two-dimensional leadership theory that measures the leaders concern for people and for production

Builds on the work of Ohio State and Michigan 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 Thoughtful attention to the needs of people for satisfying relationships leads to a comfortable, friendly organization atmosphere and work tempo.

9,9 Team Management Work accomplishment is from committed people; interdependence through a common stake in organization purpose leads to relationships of trust and respect.

Concern for People

Low

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 people at a satisfactory level. Impoverished Authority-Compliance Management Efficiency in operations results Exertion of minimum effort from arranging conditions of to get required work done work in such a way that is appropriate to sustain human elements interfere to a organization membership. minimum degree. 1,1 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
Relationship between leadership style and situation

Fiedlers Contingency Theory Hersey and Blanchard Situational Theory Evans and House Path Goal Theory

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

13

Fiedlers Classification of Situation Favorableness

Leaders needs to know
Whether they have a relationship- or task-oriented style 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

Hersey-Blanchards Situational Leadership Theory

Links leaders behavioral style with subordinates task readiness

Follower Characteristics Low Readiness Level

Low Readiness Level Moderate Readiness Level High Readiness Level

Appropriate Leader Style

Telling
Selling Participating Delegating

Very High Readiness Level

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

15

Path Goal Theory

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 Situational Contingencies

Personal characteristics of group members The work environment

Degree of task structure Nature of formal authority system Work group itself

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

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.

20

Substitutes for Leadership

Substitute = situational variable that makes

a leadership style unnecessary or redundant

Neutralizer = situational variable that

counteracts a leadership style and prevents the leader from displaying certain behaviors

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

21

Leading Change
Transactional Leaders

Clarify the role and task requirements of subordinates

Initiate structure Provide appropriate rewards Display consideration for subordinates Meet the social needs of subordinates

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

22

Leading Change
Charismatic Leaders The ability to inspire Motivate people to do more than they would normally do 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.
23

Leading Change

Transformational Leader
Similar to charismatic leaders 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.

24

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: leaders 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.

25

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 leaders major characteristic is humility

Ethical Dilemma: Does Wage Reform Start at the Top?

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

26

Leadership in Turbulent Times

The concept and practice of leadership continues to grow and change

Post-heroic approach Servant leadership Level 5 leadership Interactive leadership E-leadership Moral leadership

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

27