Leadership

of all businesses fail in first two years 60-75% of Americans say worst thing about work is their boss!

Changing Views of Leadership in Business

Scientific Management/Theory X: people are lazy, stupid, and dislike work. Workers are extensions of the machines that they are operating. Bureaucracy. Human Relations Approach/Theory Y: regards employee needs as a legitimate corporate responsibility. People are industrious and seek challenges. Democratic style of organization.

Trait Theories of Leadership

Original explanations of leadership Most often believed by royalty, elite classes, and older siblings Years of research inconclusive results
Bird found four general traits (intelligence, initiative, sense of humor, extraversion) But, these traits dont ensure a good leader

Two Frequently Studied Traits

Charisma: inspire followers to be passionately devoted to them Extraordinary vision Persuasive speakers Practical leadership skills (alleviates stress of followers) Machiavellianism Believe that people are weak, gullible, and untrustworthy People are there to be used and manipulated No emotional, moral or ideological attachments Sane

Social Determinism
The great leader only plays a unique and decisive role when the historical situation permits major alternative paths of development In other words, leaders simply play out roles designed for them by broad social forces

Modern Theories of Leadership

Focus on interaction of
Traits and behaviors of leaders Characteristics of their followers Nature of the situation

Contingency Theory
Created by Fred Fiedler Leader effectiveness determined by interaction of leader characteristics and aspects of the situation Person-oriented Leader: more effective in moderately favorable situations Task-oriented Leader: more effective in extremely favorable or unfavorable situations

Cognitive Resource Theory

Fiedlers expansion of Contingency Theory Interaction of leaders cognitive abilities (e.g., intelligence, job-related knowledge), job performance, and stress Must keep stress at a minimum for leader to be successful

Path Goal Theory

Focuses on kinds of behaviors leaders should use to allow their subordinates to achieve personal and organizational goals.

Directive Leadership Supportive Leadership Participative Leadership: workers have input Achievement Oriented: set challenging goals and emphasize high level of performance

Requires a flexible leader

Normative Decision Theory

Concerned with extent to which leaders allow subordinates to participate in decisions

Ranges from autocratic to complete participation Importance of decision Degree to which it is accepted by subordinates Time required to make the decision

Factors to consider include

Leader Member Exchange

Deals with the way the leader-follower relationship effects the leadership process. Every follower is different Ingroup vs. Outgroup subordinates Supervision/formal authority vs. leadership/persuasion Get leader to like you treats you better You work harder

Leadership Styles
Authoritarian vs. Democratic 60% of workers prefer democratic styles However, job performance only increased in 22% of studies (56% showed no difference) Transactional: behavior depends on what followers think of them. Bribery. Transformational: Challenge and inspire workers

High Energy, willing to risk Individualized consideration Intellectual stimulation

The Role of Power

Types of Power
Reward: pay raises, promotions Coercive: punishment (downsize, demote) Legitimate: hierarchy of control (formal structure) Referent: degree to which employees identify with leader and leaders goals Expert: does leader have necessary skills? If yes, more supportive subordinates

Examples of Influence Tactics

Rational Persuasion Inspirational Appeals Consultation: seeks target participation Ingratiation Personal Appeals: loyalty and friendship Exchange Coalition Tactics Legitimating Tactics: based upon hierarchical authority or organizational policy Pressure: threats and persistent reminders

Effects of Power
Legitimate, referent, and expert: correlate with job satisfaction, satisfaction with superiors technical skills, satisfaction with superiors human relations skills, organizational commitment Reward: correlates with all but organizational commitment

Need for Power?

High level executives and mid-level managers often have a high need for power Effective managers have a higher need for power than less effective managers However, power is not for personal gain

Role of Leader Expectations

Pygmalion Effect: positive self-fulfilling prophecy Golem Effect: negative self-fulfilling prophecy

Women in Management
Female managers have risen from 24% to 40%. But, only 5% of women employed outside the home hold senior management positions 74 cents to the $ Glass ceiling Leadership and gender stereotypes: women use more transformational leadership Attributions for success