What Is Leadership? A definition of management A definition of leadership Leadership practices Formal and informal leaders Leadership is an influence process; therefore, leaders are people who, by their actions, encourage a group of people to move toward a common or shared goal. A leader is an individual; leadership is the function that the individual performs. Individuals within an organization who have authority are often referred to as leaders, regardless of how they act in their jobs. But just because someone is supposed to be a formal leader in an organization, he or she may or may not exercise leadership. In fact, informal or emergent leaders can exhibit leadership even though they do not hold formal leadership positions. Harvard’s John Kotter compares management and leadership. Management, he says, is about dealing with complexity: drawing formal plans, designing organizational structures, and monitoring outcomes. Leadership, in contrast, is about coping with change. Leaders establish direction by developing a vision; then they communicate this vision to people and inspire them to overcome obstacles. Robert House of the Wharton School of Business concurs and says that mangers use formal authority to obtain compliance from organizational members. Management consists of implementing the vision and strategy provided by leaders, coordinating and staffing the organization, and handling day-to-day problems. While both management and leadership promote organizational effectiveness, most companies are over-managed and under-led. ©Prentice Hall, 2001 Chapter 11

The Functions of Management Controlling Planning The Functions of Management The following management functions can be used to classify the manager’s job. Planning means defining an organization’s goals, establishing an overall strategy for achieving these goals, and developing comprehensive plans to integrate and coordinate activities. Organizing includes determining what tasks must be done, who will do them, how the tasks will be grouped, who will report to whom, and where decisions will be made. Leading includes motivating and directing employees, and communicating and resolving conflicts. Controlling means monitoring performance, comparing results and goals, and making corrections. Leading?? Organizing ©Prentice Hall, 2001 Chapter 1

Is there a difference between managing and leading? Manager Asks how and when Does things right Maintains Relies on control Leader Asks what and why Does the right thing Develops Inspires ©Prentice Hall, 2001 Chapter 11

Leadership Practices Challenging the process Envision the future Question the status quo That’s the way we’ve always done it Envision the future Review past first, then look to future Reflecting on the past can enhance your ability to look ahead ©Prentice Hall, 2001 Chapter 11

Leadership Practices Enlist others Leaders must communicate the vision in a way that attracts and excites members of the organization A chance to be tested Use of language (Be positive) SWA’s essential difference is not machines and things. Our essential difference is minds, hearts, spirits, and souls. Success is never final – it must be earned over and over again or it disappears. I am betting on your minds, your hearts, your souls, and your spirit to continue our success” Kelleher ©Prentice Hall, 2001 Chapter 11

Foster collaboration Strengthening others Sharing information… builds trust Strengthening others The paradox of power: “we become the most powerful when we give our power away” Provide others with choice Offer visible support & recognition ©Prentice Hall, 2001 Chapter 11

Model the way Encourage the heart Practice what you preach Do what you say you will do Encourage the heart Recognize contributions Build self-esteem through confidence in others Celebrate accomplishments regularly ©Prentice Hall, 2001 Chapter 11

Trait Theories of Leadership Ambition and Energy Desire to Lead Self- Confidence Honesty and Integrity Intelligence (IQ) & (EQ) Job-Relevant Knowledge ©Prentice Hall, 2001 Chapter 11

Charismatic Leaders Strong vision and articulation Self-sacrificing, risk-taking Charismatic Leaders Unconventional, novel behavior High expectations Build self-esteem in followers Self-confident, dynamic ©Prentice Hall, 2001 Chapter 11

Behavioral Theories Ohio State University of Michigan Initiating Structure: Organizing & assigning Consideration: Friendly, treats all as equals Ohio State The most comprehensive of the behavioral theories resulted from research that began at Ohio State in 1940. These researchers sought to identify independent dimensions of leader behavior and discovered that two categories (initiating structure and consideration) accounted for most of the behavior of leaders. Initiating structure includes behavior that attempts to organize work, goals, and work relationships. The leader who is high in initiating structure could be described in terms such as “assigns group members to particular tasks,” or “emphasizes the meeting of deadlines.” Consideration includes concern for the comfort, status, satisfaction, and well-being of subordinates. A leader who is high in consideration helps subordinates with personal problems, is friendly and approachable, and treats all subordinates as equals. Research at the University of Michigan intended to identify characteristics of leaders that appeared to relate to measures of performance effectiveness. Two dimensions of leadership behavior were identified. Employee-oriented leaders emphasized personal relationships; they cared about the needs of their subordinates and accepted individual differences among them. Production-oriented leaders emphasized the technical or task aspects of the job. Their main concern was accomplishing their group’s tasks, and the group members were a means to that end. Employee-Orientation: Take interest in emp. needs University of Michigan Production-Orientation: Task focused, People are means to an end ©Prentice Hall, 2001 Chapter 11

Hersey & Blanchard Situational Leadership (management) Theory Readiness (ability & motivation) of followers Behavior of Leaders (contingent upon followers) Unable and Unwilling Clear, Specific Directions “Telling” Unable and Willing High Task Orientation (selling) Able and Unwilling Support & Participation (part) Able and Willing Let Followers Perform “Delegating” ©Prentice Hall, 2001 Chapter 11

Empowering the Workforce Managers Giving Up Controls Workers Accepting Responsibility ©Prentice Hall, 2001 Chapter 1

Leader-Member Exchange Model Personal Compatibility and/or Subordinate Competence Leader Formal Relations Trust High Interactions The leader-member exchange model asserts that leaders differentiate between followers. The result is a dichotomy: an in-group and an out-group. In-group members are trusted, get extra attention, and receive special privileges. Out-group members get less attention, fewer rewards, and participate in a formal superior-subordinate relationship. In-group members are chosen because they are highly competent, extroverted, and have personal characteristics that are similar to the leader’s. As a result, in-group subordinates have higher performance ratings, less turnover, and greater satisfaction with the leader-subordinate relationship. Subordinate A B C In-Group Subordinate D E F Out-Group ©Prentice Hall, 2001 Chapter 11