Leadership
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 2 Learning Objectives Define leadership and explain its importance for organizations. Describe how leadership is changing in todays organizations. Identify personal characteristics associated with effective leaders. Define task-oriented behavior and people- oriented behavior and explain how these categories are used to evaluate and adapt leadership style.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 3 Learning Objectives (contd) Describe Hersey and Blanchards situational theory and its application to subordinate participation. Explain the path-goal model of leadership. Discuss how leadership fits the organizational situation and how organizational characteristics can substitute for leadership behaviors. Describe transformational leadership and when it should be used.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 4 Learning Objectives (contd.) Identify the five sources of leader power and the tactics leaders use to influence others. Explain servant leadership and moral leadership and their importance in contemporary organizations.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 5 After studying this theme, you should be able to: – Describe the nature of leadership and distinguish leadership from management. – Discuss and evaluate the trait approach to leadership. – Discuss and evaluate models of leadership, focusing on behaviors. – Identify and describe the major situational approaches to leadership. – Identify and describe three related perspectives on leadership. – Discuss political behavior in organizations and how it can be managed.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 6 The Nature of Leadership – The Meaning of Leadership – Leadership Versus Management – Power and Leadership The Search for Leadership Traits Leadership Behaviors – Michigan Studies – Ohio State Studies – Managerial Grid Situational Approaches to Leadership – LPC Theory – Path-Goal Theory – Vrooms Decision Tree – The Leader-Member Exchange The Nature of Leadership – The Meaning of Leadership – Leadership Versus Management – Power and Leadership The Search for Leadership Traits Leadership Behaviors – Michigan Studies – Ohio State Studies – Managerial Grid Situational Approaches to Leadership – LPC Theory – Path-Goal Theory – Vrooms Decision Tree – The Leader-Member Exchange Related Perspectives on Leadership – Substitutes for Leadership – Charismatic Leadership – Transformational Leadership Political Behavior in Organizations – Common Political Behaviors – Managing Political Behaviors Related Perspectives on Leadership – Substitutes for Leadership – Charismatic Leadership – Transformational Leadership Political Behavior in Organizations – Common Political Behaviors – Managing Political Behaviors
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 7 The Nature of Leadership The Meaning of Leadership – Process: what leaders actually do. Using noncoercive influence to shape the groups or organizations goals. Motivating others behavior toward goals. Helping to define organizational culture. – Property: who leaders are. The set of characteristics attributed to individuals perceived to be leaders. – Leaders People who can influence the behaviors of others without having to rely on force. People who are accepted as leaders by others.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 8 Leadership 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 Different leaders behave in different ways – style, need, situation Leadership occurs among people, involves the use of influence, and is used to attain goals.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 9 Nature of Leadership 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 © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 10 Leadership versus Management Management Promotes stability, order and problem solving within existing organizational structure and systems Leadership Promotes vision, creativity, and change M L Takes care of where you are Takes you to a new place
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 11 Leader versus Manager Qualities Manager QualitiesLeader Qualities Source: Genevieve Capowski, Anatomy of a Leader: Where Are the Leaders of Tomorrow? Management Review, March 1994, 12 SOUL Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Initiates change Personal power MIND Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberate Authoritative Stabilizing Position power
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 12 Major differences between manager and leader qualities relates to the source of power and the level of compliance it engenders within followers.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 13 Power and Leadership Power - the potential ability to influence others behavior. – Legitimate power is granted through the organizational hierarchy. – Reward power is the power to give or withhold rewards. – Coercive power is the capability to force compliance by means of psychological, emotional, or physical threat. – Referent power is the personal power that accrues to someone based on identification, imitation, loyalty, or charisma. – Expert power is derived from the possession of information or expertise.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 14 Power and Leadership Using Power – Legitimate request Compliance by a subordinate with a managers request because the organization has given the manager the right to make the request. – Instrumental compliance A subordinate complies with a managers request to get the rewards that the manager controls. – Coercion Threatening to fire, punish, or reprimand subordinates if they do not do something. – Rational persuasion Convincing subordinates that compliance is in their own best interest.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 15 Power and Leadership Using Power (contd) – Personal identification Using the referent power of a superiors desired behaviors to shape the behavior of a subordinate. – Inspirational appeal Influencing a subordinates behavior through an appeal to a set of higher ideals or values (e.g., loyalty). – Information distortion Withholding or distorting information (which may create an unethical situation) to influence subordinates behavior. – Personal identification Using the superiors referent power over a subordinate to shape his behavior
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 16 Sources of Power and Leadership Power from Personal Characteristics YES NOPower from The Position YES NO OfficerFormal Leader FollowerInformal Leader
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 17 The Search for Leadership Traits Traits Approach to Leadership – Assumed that a basic set of personal traits that differentiated leaders from nonleaders could be used to identify leaders and as a tool for predicting who would become leaders. – The trait approach was unsuccessful in establishing empirical relationships between traits and persons regarded as leaders.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 18 The Search for Leadership Traits 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 Traits = personal characteristics
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 19 Personal Characteristics of Leaders Physical Characteristics Energy Physical stamina Social Background Education Mobility Intelligence and Ability Judgment, decisiveness Knowledge Intelligence, cognitive ability Personality Self-confidence Honesty & integrity Enthusiasm Desire to lead Independence Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity Social Characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy Source: Adapted from Bernard M. Bass, Stogdills Handbook of Leadership, rev. Ed. (New York: Free Press, 1981), This adaptation appeared in R. Albanese and D. D. Van Fleet, Organizational Behavior: A managerial Viewpoint (Hinsdale, III.: The Dryden Press, 1983).
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 20 Seven Traits Associated with Leadership
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 21 What Really Works: Leadership Traits Intelligence 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success75% Dominance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success57% Extroversion 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success63% Traits and Perceptions of Leadership Effectiveness
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 22 What Really Works: Leadership Traits Charisma and Performance 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success72% Charisma and Perceived Leadership Effectiveness 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success89% Charisma and Leader Satisfaction 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% probability of success90% Charisma and Leadership Effectiveness
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 23 Criticisms of the Trait Approach Some effective leaders do not possess all of these traits, and some leaders who possess these traits are not effective. For at least some traits, it is not clear which comes first, being in a leadership position or possessing the trait in question. The trait approach provides little guidance concerning what advice or training to give current or soon-to-be leaders. The approach ignores the situation in which leadership takes place.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 24 Basic Leadership Style Autocratic Bureaucratic Laissez-faire Democratic
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 25 Autocratic Leadership Style Autocratic Leadership Style The classical approach Manager retains as much power and decision making authority as possible Does not consult staff, nor allowed to give any input Staff expected to obey orders without receiving any explanations Structured set of rewards and punishments
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 26 Greatly criticized during the past 30 years Gen X staff highly resistant Autocratic leaders: Rely on threats and punishment to influence staff Do not trust staff Do not allow for employee input
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 27 Not all bad Sometimes the most effective style to use When: New, untrained staff do not know which tasks to perform or which procedures to follow Effective supervision provided only through detailed orders and instructions Staff do not respond to any other leadership style Limited time in which to make a decision A managers power challenged by staff Work needs to be coordinated with another department or organization
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 28 Should not be used When: Staff become tense, fearful, or resentful Staff expect their opinions heard Staff depend on their manager to make all their decisions Low staff morale, high turnover and absenteeism and work stoppage
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 29 Bureaucratic Leadership Style Manages by the book¨ Everything done according to procedure or policy If not covered by the book, referred to the next level above A police officer not a leader Enforces the rules
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 30 Most effective When: Staff performing routine tasks over and over Staff need to understand certain standards or procedures. Safety or security training conducted Staff performing tasks that require handling cash
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 31 Ineffective When: Work habits form that are hard to break, especially if they are no longer useful Staff lose their interest in their jobs and in their co-workers Staff do only what is expected of them and no more
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 32 Democratic Leadership Style Also known as participative style Encourages staff to be a part of the decision making Keeps staff informed about everything that affects their work and shares decision making and problem solving responsibilities
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 33 The Leader A coach who has the final say, but gathers information from staff before making a decision Produce high quality and high quantity work for long periods of time Staff like the trust they receive and respond with cooperation, team spirit, and high morale
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 34 The Democratic Leader Develops plans to help staff evaluate their own performance Allows staff to establish goals Encourages staff to grow on the job and be promoted Recognizes and encourages achievement
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 35 Most Effective When: Wants to keep staff informed about matters that affect them. Wants staff to share in decision-making and problem- solving duties. Wants to provide opportunities for staff to develop a high sense of personal growth and job satisfaction. A large or complex problem that requires lots of input to solve Changes must be made or problems solved that affect staff Want to encourage team building and participation
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 36 Democratic leadership should not be used when … Not enough time to get everyones input Easier and more cost-effective for the manager to make the decision Cant afford mistakes Manager feels threatened by this type of leadership Staff safety is a critical concern
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 37 Laissez-Faire Leadership Style Also known as the hands-off¨ style The manager provides little or no direction and gives staff as much freedom as possible All authority or power given to the staff and they determine goals, make decisions, and resolve problems on their own
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 38 An effective style to use … Staff highly skilled, experienced, and educated Staff have pride in their work and the drive to do it successfully on their own Outside experts, such as staff specialists or consultants used Staff trustworthy and experienced
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 39 Should not be used Staff feel insecure at the unavailability of a manager The manager cannot provide regular feedback to staff on how well they are doing Managers unable to thank staff for their good work The manager doesnt understand his or her responsibilities and hoping the staff cover for him or her
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 40 The Transformational Leadership Make change happen in: Self, Others, Groups, and Organizations Charisma a special leadership style commonly associated with transformational leadership; extremely powerful, extremely hard to teach
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 41 Transactional Leadership Emphasizes getting things done within the umbrella of the status quo In opposition to transformational leadership By the book" approach - the person works within the rules Commonly seen in large, bureaucratic organizations
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 42 Creative Leadership Creative Leadership Ability to uniquely inspire people, To generate shared innovative responses and solutions To complex and readily changing situations
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 43 Corrective Leadership Empowers staff to facilitate collaborative and synergism Working with and through other people instead of bowing to authoritarianism
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 44 Change Leadership Endorses alteration Beyond thinking about individuals and individual organization, single problems and single solutions Rethinking systems to introduce change on parts of the whole and their relationship to one another
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 45 Intelligence Leadership To navigate the future by embracing ambiguity and reframing problems as opportunities A proactive stance in taking their organizations into uncharted territory
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 46 Multicultural Leadership Fosters team and individual effectiveness Drives for innovation by leveraging multicultural differences Teams work harder in an atmosphere of understanding and mutual respect
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 47 Pedagogical Leadership Paradigm shift from leader/teacher centered "orientation" to an interactive, connective organizational system using a democratic learning and communicative style An alternative to instructional leadership by enabling the learning and intellectual growth of those led
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 48 Servant Leadership Servant Leadership A practical philosophy focusing on people who choose to serve first and then lead as a way of expanding service Servant leaders are "servants first" with the object of making sure that other people's highest priority needs are being served Leaders put the needs of their followers first; these leaders rare in business
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 49 Bridging leadership Fostering synergy and reinforcing behavior and motivation through the use of communication to create climate of trust and confidence Projection of confidence on the face of a difficult challenge
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 50 Purposeful Leadership Leader and the community share a common purpose to develop or provide the drive, authority and commitment to undertake projects
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 51 Varying Leadership Style Three factors that influence which leadership style to use. 1. The managers personal background: What personality, knowledge, values, ethics, and experiences does the manager have. What does he or she think will work? 2. Staff being supervised: Staff individuals with different personalities and backgrounds; The leadership style used will vary depending upon the individual staff and what he or she will respond best to 3. The organization: The traditions, values, philosophy, and concerns of the organization influence how a manager acts
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 52 Determining the Best Leadership Style Should leaders be more task or relationship (people) oriented Leaders have a dominant style, one they use in a wide variety of situations No one best style - leaders must adjust their leadership style to the situation as well as to the people being led Many different aspects to being a great leader - a role requiring one to play many different leadership styles to be successful
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 53 Behavioral Approaches Ohio State Studies 2 major behaviors : 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 © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 54 Behavioral Approaches Michigan Studies University of Michigan compared the behavior of effective and ineffective supervisors Initial assumption of the research was that leaders who exhibit high levels of both behaviors would be most effective leaders. Subsequent research indicated that: Employees of supervisors ranked highly on initiating structure were high performers, although they expressed low levels of satisfaction and had higher absenteeism. Employees of supervisors ranked highly on consideration had low- performance ratings, but they had high levels of satisfaction and had less absenteeism. Other situational variables were making consistent leader behavior predictions difficult. There is no universal or one best way model of leadership. At about the same time as Ohio State Studies
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 55 Leadership Behaviors A leader may have any of four styles: high initiating structure – low consideration high initiating structure – high consideration low initiating structure – low consideration low initiating structure – high consideration
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 56 The Leadership Grid Two-dimensional leadership theory that measures the leaders concern for people and for production Builds on the work of Ohio State and Michigan studies Employee-centered leaders: – Established high performance goals and displayed supportive behavior toward subordinates. Job-centered leaders: – Less concerned with goal achievement and human needs in favor of meeting schedules, keeping costs low, and achieving production efficiency. The Leadership Grid® is a method of evaluating leadership styles. The Grid® is used to train managers so that they are simultaneously more concerned for people and for production (9,9 style on the Grid®). Michigan Studies Blake and Mouton
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 57 The Leadership Grid High Low Concern for Production Concern for People 1,9 Country Club Management Thoughtful attention to the needs of people for satisfying relationships leads to a com- fortable, friendly organization atmosphere and work tempo. Impoverished Management Exertion of minimum effort to get required work done is appropriate to sustain organization membership. 1,1 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. 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. Authority-Compliance Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. 9,1 5,5
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 58 Criticisms of the Behavior Approach The relationship between leader behaviors and subordinate performance and satisfaction are not necessarily clear-cut. The behavior approach ignores the situation in which leadership takes place.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 59 Contingency Approaches to Leadership Situational Models of Leader Behavior – Assume that: Appropriate leader behavior varies from one situation to another. Key situational factors that are interacting to determine appropriate leader behavior can be identified. Leadership Continuum (Tannenbaum and Schmidt) – Variables influencing the decision-making continuum: Leaders characteristicsvalue system, confidence in subordinates, personal inclinations, and feelings of security. Subordinates characteristicsindependence needs, readiness for responsibility, tolerance of ambiguity, interest in the problem, understanding goals, knowledge, experience, and expectations. Situational Characteristicstype of organization, group effectiveness, the problem itself, and time pressures.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 60 Contingency Approaches to Leadership Tannenbaum and Schmidts Leadership Continuum Hersey and Blanchard Situational Theory Fiedlers Contingency Theory Evans and House Path Goal Theory A model of leadership that describes the relationship between leadership styles and specific organizational situations.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 61 Situational Approaches to Leadership Use of Authority by Manager Boss-centered leadership Manager makes decision and announces it Manager permits subordinates to function within limits defined by superior Manager defines limits, asks group to make decision Manager presents problem, gets suggestions, makes decision Manager presents tentative decision subject to change Manager presents ideas and invites questions Manager sells decision Area of Freedom for Subordinates Subordinate-centered leadership
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 62 Fiedlers Contingency Theory Least-Preferred Coworker Theory (Fiedler) – The appropriate style of leadership varies with situational favorableness (from the leaders viewpoint). – Least preferred coworker (LPC) The measuring scale that asks leaders to describe the person with whom they are least able to work well. High LPC scale scores indicate a relationship orientation; low LPC scores indicate a task orientation on the part of the leader. – Contingency variables determining situational favorableness: Leader-member relationsthe nature of the relationship between the leader and the work group. Task structurethe degree to which the groups task is defined. Position Powerthe power vested in the leaders position.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 63 Situation: Leadership situations can be analyzed in terms of three elements. 1. Leader-member relations – refers to group atmosphere and members attitude toward and acceptance of the leader. 2. Task structure – refers to the extent to which tasks performed by the group are defined, involve specific procedures, and have clear, explicit goals. 3. Position power – is the extent to which the leader has formal authority over subordinates.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 64 Fiedlers Classification of Situation Favorableness 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. Leaders needs to know Whether they have a relationship- or task-oriented style Whether they have a relationship- or task-oriented style Should diagnose the situation and determine the favorableness of the following three areas Should diagnose the situation and determine the favorableness of the following three areas
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 65
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 66 A situation Summit has joined recently as a finance officer in Jupiter Capital ltd at Mumbai. On the very first day her boss, Mr. Singh the VP (Finance) has given her a number of files containing details of HNI (high net worth) clients of the company and has asked her to go through the same. After three days, Mr. Singh called Sumita and advised her manage wealth of top ten clients and then left for Delhi to attend a meeting. Sumita, all through the day wondered how to manage the wealth applying her theoretical concept of portfolio management. Sumita returned home with high level of stress. Please analyze the leadership style of Mr. Singh
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 67 Hersey and Blanchards Situational Theory Situational Theory – a contingency approach to leadership that links the leaders behavioral style with the task readiness of subordinates. Path-Goal Theory (Evans and House) – The primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment or rewards. – Leader Behaviors: Directive leader behaviorletting subordinates know what is expected of them, giving guidance and direction, and scheduling work. Supportive leader behaviorbeing friendly and approachable, having concern for subordinate welfare, and treating subordinates as equals. Participative leader behaviorconsulting with subordinates, soliciting suggestions, and allowing participation in decision making. Achievement-oriented leader behaviorsetting challenging goals, expecting subordinates to perform at high levels, encouraging and showing confidence in subordinates.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 68 The Path-Goal Theory: Situational Factors Work Situation Follower lacks self- confidence Supportive Achievement- oriented Participative Directive Leadership Style Impact on Followers Expected Results Lack of job challenge Improper procedures and poor decisions Ambiguous job Increases self- confidence to complete task Encourages setting high but attainable goals Clarifies follower need for making suggestions and involvement Clarifies path to get rewards Increased effort. job satisfaction, and performance; fewer grievances Improved performance and greater job satisfaction Improved performance and greater satisfaction; less turnover Improved performance and job satisfaction
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 69 Path Goal Theory: When to Use Leadership Styles Adapted from Exhibit
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 70 Adapting Leadership Behavior Worker Readiness Leadership Styles Leadership Styles 5 5 Hersey and Blanchards Situational Leadership Theory
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 71 Worker Readiness The ability and willingness to take responsibility for directing ones behavior at work Components of worker readiness: – Job readiness – Psychological readiness 5.1
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 72 Hersey and Blanchards Situational Leadership Theory Follower readiness: ability and willingness Leader: decreasing need for support and supervision
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 73
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 74 Hersey-Blanchards Situational Theory of Leadership
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 75 Worker Readiness R4 R3 R2 R1 confident willing able confident willing able insecure not willing able insecure not willing able confident willing not able insecure not able not willing 5.1
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 76 Leadership Styles Telling (R1) Selling (R2) Participating (R3) Delegating (R4) high task behavior low relationship behavior high task behavior low relationship behavior high task behavior high relationship behavior high task behavior high relationship behavior low task behavior high relationship behavior low task behavior low relationship behavior 5.2
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 77 Four leadership styles: 1. Telling style – reflects a high concern for production and a low concern for people. (Directive style) 2. Selling style – based on a high concern for both people and production. 3. Participating style – based on a combination of high concern for people and low concern for production. 4. Delegating style – reflects a low concern for both people and production.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 78 Low Readiness Level Telling Style Moderate Readiness Level Selling Style High Readiness Level Participating Style Very High Readiness Level Delegating Style
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 79 Path-Goal Theory Leader Behaviors Path-Goal Theory A contingency approach to leadership specifying that the leaders responsibility is to increase subordinates motivation by clarifying the behaviors necessary for task accomplishment and rewards. This model is called a contingency theory because it consists of three sets of contingencies (leader behavior and style, situational contingencies, and the use of rewards to meet subordinates needs.) Fiedler Theory assumption would be to switch leaders as situations change. In Path-Goal Theory, leaders switch their behaviors to match the situation.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 80 Leader Roles in the Path-Goal Theory
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 81 Path-Goal Theory 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 Classification of (4) leader behaviors
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 82 Path-Goal Theory Leaders 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 Classification of (4) leader behaviors
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 83 Path Goal Theory: When to Use Leadership Styles
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 84 Path-Goal Situational Contingencies Two important situational contingencies are: 1. The personal characteristics of group members. Include such factors: Ability Skills Needs Motivations 2. The work environment. Include such factors: Degree of task structure – the extent task are well-defined and have explicit descriptions and work procedures. Nature of formal authority system – the amount of legitimate power used by managers and the extent to which policies and rules constrain employees behavior. The work group – the educational level of subordinates and the quality of relationships among them.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 85 Path-Goal Situations & Preferred Leader Behavior Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981),
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 86 Situational Approaches to Leadership Vroom Decision Tree Approach – Attempts to prescribe a leadership style appropriate to a given situation. – Basic Premises The degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation. No one decision-making process is best for all situations. After evaluating the different problem attributes, a leader can choose a decision path on one of two decision trees that determines the decision style and specifies the amount of employee participation. – Decision significancethe degree to which the decision will have an impact on the organization. Subordinates are involved when decision significance is high. – Decision Timelinessthe degree of time pressure for making a decision in a timely basis; may preclude involving subordinates.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 87 Situational Approaches to Leadership Vroom Decision Tree Approach (contd) – Decision-Making Styles Decidemanager makes decision alone and then announces or sells it to the group. Consult (individually)manager presents program to group members individually, obtains their suggestions, then makes the decision. Consult (group)manager presents problem to group at a meeting, gets their suggestions, then makes the decision. Facilitatemanager presents the problem to the group, defines the problem and its boundaries, and then facilitates group member discussion as they make the decision. Delegatemanager allows the group to define for itself the exact nature and parameters of the problem and then develop a solution
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 88 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 © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 89 Factors Affecting Style Leadership style may be dependent on various factors: – Risk - decision making and change initiatives based on degree of risk involved – Type of business – creative business or supply driven? – How important change is – change for changes sake? – Organisational culture – may be long embedded and difficult to change – Nature of the task – needing cooperation? Direction? Structure?
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 90 Substitute and Neutralizers for Leadership VariableTask-Oriented Leadership People-Oriented Leadership Organizational variables: Group cohesivenessSubstitute for FormalizationSubstitute forNo effect on InflexibilityNeutralizesNo effect on Low positional powerNeutralizes Physical separationNeutralizes Task characteristics: Highly structured taskSubstitute forNo effect on Automatic feedbackSubstitute forNo effect on Intrinsic satisfactionNo effect onSubstitute for Group characteristics: ProfessionalismSubstitute for Training/experienceSubstitute forNo effect on
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 91 Related Perspectives on Leadership 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 © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 92 Characteristics of the Two Types of Leaders Contingent Reward: – Contracts exchange of rewards for effort, promises rewards for good performance, recognizes accomplishments Management by Exception: – Active: Watches and searches for deviations from rules and standards, takes corrective action – Passive: Intervenes only if standards are not met Laissez-Faire: – Abdicates responsibilities, avoids making decisions Idealized Influence: – Provides vision and sense of mission, instills pride, gains respect and trust Inspiration: – Communicates high expectations, uses symbols to focus efforts, expresses important issues simply Intellectual Stimulation: – Promotes intelligence, rationality, and problem solving Individualized Consideration: – Gives personal attention, coaches, advises Transactional Transformational
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 93 Full Range of Leadership Model Leadership styles listed from passive to very active Note the ineffective styles are mostly transactional It is all about influencing followers ActivePassive Effective Ineffective
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 94 Related Perspectives on Leadership Charismatic Leaders Charisma, an interpersonal attraction that inspires support and acceptance, is an individual characteristic of a leader. – Charismatic persons are more successful than noncharismatic persons. – Charismatic leaders are self-confident, have a firm conviction in their belief and ideals, and possess a strong need to influence people. 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 © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 95 Related Perspectives on Leadership Charismatic leaders in organizations must be able to: envision the future, set high expectations, and model behaviors consistent with expectations. energize others through a demonstration of excitement, personal confidence, and patterns of success. enable others by supporting them, by empathizing with them, and by expressing confidence in them
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 96 Impact of charismatic leaders is normally from: 1. Stating a lofty vision of an imagined future that employees identify with. – Vision – an attractive, ideal future that is credible yet not readily attainable. 2. Shaping a corporate value system for which everyone stands. 3. Trusting subordinates and earning their complete trust in return. 4. Charismatic leaders tend to be less predictable than transactional leaders. They create an atmosphere of change, and they may be obsessed by visionary ideas that excite, stimulate, and drive other people to work hard.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 97 Kinds of Charismatic Leaders Ethical Charismatics – provide developmental opportunities – open to positive and negative feedback – recognize others contributions – share information – concerned with the interests of the group Unethical Charismatics – control and manipulate followers – do what is best for themselves – only want positive feedback – motivated by self-interest 7.1
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 98 Charismatic Leadership Issues Importance of vision – Must be inspirational, value-centered, realizable, and given with superior imagery and articulation Charismatic effectiveness and situation – Charisma works best when: The followers task has an ideological component There is a lot of stress and uncertainty in the environment The leader is at the upper level of the organization Followers have low self-esteem and self-worth Dark Side of Charisma – Ego-driven charismatics allow their self-interest and personal goals to override the organizations goals © 2009 Prentice-Hall Inc. All rights reserved
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 99 Ethical and Unethical Charismatic Leaders Exercising Power Power is used to serve others Creating the vision Followers help develop the vision Communicating with followers Two-way communication Accepting feedbackOpen to feedback Want followers to think and to questions the status quo Stimulating followers Developing followersFocus on developing followers Living by moral standards Three virtues: courage, sense of fairness, integrity Charismatic Leader Behaviors Ethical Charismatics 7.1 Adapted from Exhibit 14.15
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 100 Ethical and Unethical Charismatic Leaders Charismatic Leader Behaviors Unethical Charismatics Exercising Power Power is used to dominate others Creating the vision Vision comes solely from the leader Communicating with followers One-way communication, not open to input from others Accepting feedbackPrefer yes-men, punish candid feedback Dont want followers to think, prefer uncritical acceptance of own ideas Stimulating followers Developing followersInsensitive to followers needs Living by moral standards Follow standards only if they satisfy immediate self interests 7.1 Adapted from Exhibit 14.15
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 101 Reducing Risks of Unethical Charismatics 1. Have a clearly written code of conduct 2. Recruit, select, and promote managers with high ethical standards 3. Train leaders how to value, seek, and used diverse points of view 4. Celebrate and reward those who exhibit ethical behaviors 7.1
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 102 Leading Change Transformational Leader - a leader distinguished by a special ability to bring about innovation and change by recognizing followers needs and concerns, helping them look at old problems in new ways, and encouraging them to question the status quo. 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 © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 103 Related Perspectives on Leadership Transformational Leadership – Leadership that goes beyond ordinary expectations, by transmitting a sense of mission, stimulating learning, and inspiring new ways of thinking. – Seven keys to successful leadership Trusting in ones subordinates Developing a vision Keeping cool Encouraging risk Being an expert Inviting dissent Simplifying things
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 104 Leading the New Workplace Four areas of particular interest for leadership in the new workplace are a new concept referred to as: Level 5 leadership Womens ways of leading Virtual leadership Servant leadership
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 105 Very effective leaders who possess the four typical leadership traits – Individual competency – Team skills – Managerial competence – Ability to stimulate others to high performance Plus one critical new trait… – A blend of personal humility and professional will – Personal ego needs are focused toward building a great company – Take responsibility for failures and give credit to others for successes
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 106 The Level 5 Leadership Hierarchy Level 2: Contributing Team Member Contributes to the achievement of team goals; works effectively with others in a group. Level 1: Highly Capable Individual Productive contributor; offers talent, knowledge, skills, and good work habits as an individual employee. Level 3: Competent Manager Sets plans and organizes people for the efficient and effective pursuit of objectives. Level 4: The Effective Executive Builds widespread commitment to a clear and compelling vision; stimulates people to high performance. Level 5: The Level 5 Leader Builds an enduring great organization through a combination of personal humility and professional resolve.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 107 Leading the New Workplace Four areas of particular interest for leadership in the new workplace are a new concept referred to as: Level 5 leadership Womens ways of leading Virtual leadership Servant leadership
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 108 Gender Differences and Leadership Research Findings – Males and females use different styles: Women tend to adopt a more democratic or participative style unless in a male-dominated job. Women tend to use transformational leadership. Men tend to use transactional leadership.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 109 Where Female Managers Do Better: A Scorecard
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 110 Womens ways of leading Recent research indicates that womens style of leadership is particularly suited to todays organizations. Female managers score significantly higher than men on abilities such as motivating others, fostering communication, and listening. Interactive leadership A leadership style characterized by values such as inclusion, collaboration, relationship building, and caring.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 111 Leading the New Workplace Four areas of particular interest for leadership in the new workplace are a new concept referred to as: Level 5 leadership Womens ways of leading Virtual leadership Servant leadership
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 112 Virtual leadership People who excel as virtual leaders tend to be open-minded and flexible, exhibit positive attitudes that focus on solutions rather than problems, and have superb communication, coaching, and relationship-building skills. Essentials in virtual environment: – Building trust – Maintaining open lines of communication – Caring about people – Being open to subtle cues from others
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 113 Online Leadership Leadership at a Distance: Building Trust – The lack of face-to-face contact in electronic communications removes the nonverbal cues that support verbal interactions. – There is no supporting context to assist the receiver with interpretation of an electronic communication. – The structure and tone of electronic messages can strongly affect the response of receivers. – An individuals verbal and written communications may not follow the same style. – Writing skills will likely become an extension of interpersonal skills.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 114 Leading the New Workplace Four areas of particular interest for leadership in the new workplace are a new concept referred to as: Level 5 leadership Womens ways of leading Virtual leadership Servant leadership
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 115 Servant leadership Servant leadership, first described by Robert Greenleaf, is leadership upside down because leaders transcend self- interest to serve others and the organization. Servant leader A leader who works to fulfill subordinates needs and goals as well as to achieve the organizations larger mission.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 116 Developing Credibility and Trust Credibility (of a Leader) – The assessment of a leaders honesty, competence, and ability to inspire by his or her followers Trust – Is the belief of followers and others in the integrity, character, and ability of a leader. Dimensions of trust: integrity, competence, consistency, loyalty, and openness. – Is related to increases in job performance, organizational citizenship behaviors, job satisfaction, and organization commitment.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 117 Suggestions for Building Trust Practice openness. Practice openness. Be fair. Be fair. Speak your feelings. Speak your feelings. Tell the truth. Tell the truth. Show consistency. Show consistency. Fulfill your promises. Fulfill your promises. Maintain confidences. Maintain confidences. Demonstrate competence. Demonstrate competence.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 118 Cross-Cultural Leadership Universal Elements of Effective Leadership – Vision – Foresight – Providing encouragement – Trustworthiness – Dynamism – Positiveness – Proactiveness
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 119 Selected Cross-Cultural Leadership Findings Korean leaders are expected to be paternalistic toward employees. Arab leaders who show kindness or generosity without being asked to do so are seen by other Arabs as weak. Japanese leaders are expected to be humble and speak frequently. Scandinavian and Dutch leaders who single out individuals with public praise are likely to embarrass, not energize, those individuals. Effective leaders in Malaysia are expected to show compassion while using more of an autocratic than a participative style. Effective German leaders are characterized by high performance orientation, low compassion, low self- protection, low team orientation, high autonomy, and high participation.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 120 Basics of Leadership Give people a reason to come to work. Be loyal to the organizations people Spend time with people who do the real work of the organization. Be more open and more candid about what business practices are acceptable and proper and how the unacceptable ones should be fixed.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 121 Leadership Effectiveness An effective leader is someone who motivates a person or a group to accomplish more than they would have otherwise accomplished without that leaders involvement. To assess the models in terms of effectiveness for its originating timeframe, we need to review the evolution path leadership has taken over the years
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 122 Leadership Comparison
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 123 Brain storming session Leaders are born or made? Trait theory: Leaders are born, not made.Trait theory: Leaders are born, not made. Behavioral theory: Leadership traits can be taught.Behavioral theory: Leadership traits can be taught. Trait theory: Leaders are born, not made.Trait theory: Leaders are born, not made. Behavioral theory: Leadership traits can be taught.Behavioral theory: Leadership traits can be taught.
Copyright © 2008 by South-Western, a division of Thomson Learning. All rights reserved. 124 THANK YOU! HAVE A GOOD DAY!!!