WHY DO SOME EMPLOYEES PAY MORE ATTENTION TO SOME MANAGERS THAN TO OTHERS? WHY WILL THEY WILLINGLY FOLLOW ONE BOSS INTO BATTLE, WHILE THEY REFUSE TO EVEN LISTEN TO THE OTHER?

CHESTER BARNARD’S ZONE OF INDIFFERENCE Questioning Zone ? Not Obey

The effective use of power to achieve organizational objectives LEADERSHIP: The ability to influence people toward the attainment of organizational goals (Daft, p. 514) The effective use of power to achieve organizational objectives (Hunger)

The ability to influence or affect the environment POWER: The ability to influence or affect the environment INFLUENCE: The use of power to cause a change in another person or thing in the environment

CHARACTERISTICS OF CHARISMATIC LEADER 1. Models a role 2. Articulates a transcendent goal 3. Communicates high performance standards and Shows confidence in followers’ ability ( A charismatic leader motivates followers to transcend their expected performance-Daft, p. 532)

BASES OF POWER QUESTIONNAIRE

A MANAGER HAS: POSITION - BASED POWER Legitimate Reward Coercive (Daft, p. 516)

A LEADER HAS: PERSON - BASED POWER Referent Expert (Daft, p. 516) (Plus informal reward and coercive according to Hunger)

Use of expert and reference power lead to commitment Use of legitimate and reward power lead to compliance Use of coercive power leads to resistance (Daft, pp. 516-517)

Categories of Leadership Theories Trait Theory Behavioral Approaches Contingency Approaches Change Leadership

TRAIT THEORY No personality traits distinguish leaders from non-leaders Only a weak relationship between traits & leader success (Daft, p. 518)

BEHAVIORAL APPROACHES Styles Dimensions Leadership Grid

LEADERSHIP STYLES (Lewin, Lippitt, &White) (Daft, p. 518) Autocratic Democratic Laissez-Faire (Iowa Studies, 1930s)

BEST STYLE? Quantity of Work Quality of Work Satisfaction with Work Autocratic Democratic Laissez Faire Most Least Democratic Autocratic Laissez Faire Best Worst Democratic Laissez Faire Autocratic Most Least

TANNENBAUM/SCHMIDT CONTINUUM OF LEADERSHIP BEHAVIOR (Daft, p TANNENBAUM/SCHMIDT CONTINUUM OF LEADERSHIP BEHAVIOR (Daft, p. 520) Autocratic………....Democratic..….Laissez Faire Use of Authority by the Manager Area of Freedom for Subordinates Boss- Centered Leadership Subordinate- Centered Leadership

TANNENBAUM/SCHMIDT LEADERSHIP CONTINUUM Optimal Leadership Style Depends Upon: 1. Forces in the Leader 2. Forces in the Subordinate Group 3. Forces in the Situation

DIMENSIONS OF LEADERSHIP (Daft, p. 521) Ohio State & Michigan Studies Task Orientation Initiating structure Job-centered Employee Orientation Consideration Employee-centered

Consideration & Initiating Structure (Daft, p. 521) Is mindful of subordinates Establishes mutual trust Provides open communication Develops teamwork Initiating Structure: Is task oriented Directs subordinate work activities toward goal attainment Typically give instructions, spend time planning, and emphasize deadlines Provide explicit schedules of work activities

The Leadership Grid Figure(Daft, p. 522) High 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. 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. Concern for People Impoverished Management Exertion of minimum effort to get required work done is appropriate to sustain organization membership. 1,1 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 Low 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.

CONTINGENCY APPROACHES Hersey and Blanchard’s Situational (Life Cycle) Theory Path-Goal Theory Substitutes for Leadership

Other Referenced Theories Theory X and Theory Y Theory X and Theory Y each represent different ways in which leaders view employees. Theory X is the traditional view of direction and control by managers. Theory Y is the view that individual and organizational goals can be integrated. Douglas McGregor described Theory X and Theory Y in his book, The Human Side of Enterprise. Theory X managers believe that employees are motivated mainly by money, are lazy, uncooperative, and have poor work habits. Theory Y managers believe that subordinates work hard, are cooperative, and have positive attitudes.

Tight control, lots of rules, no freedom Management/ Leader Tight control, lots of rules, no freedom Theory X is the traditional view of direction and control by managers. 1. The average human being has an inherent dislike of work and will avoid if he or she can. 2. Because of this human characteristic of dislike of work, most people must be controlled, directed, and threatened with punishment to get them to put forth adequate effort toward the achievement of organizational objectives. 3. The average human being prefers to be directed, wishes to avoid responsibility, has relatively little ambition, wants security above all. Theory X leads naturally to an emphasis on the tactics of control - to procedures and techniques for telling people what to do, for determining whether they are doing it, and for administering rewards and punishment. Theory X explains the consequences of a particular managerial strategy. Because its assumptions are so unnecessarily limiting, it prevents managers from seeing the possibilities inherent in other managerial strategies. As long as the assumptions of Theory X influence managerial strategy, organizations will fail to discover, let alone utilize, the potentialities of the average human being. Staff/ Followers Alan Chapmen

Lots of freedom, creativity & responsibility Staff/ Followers Lots of freedom, creativity & responsibility Theory Y is the view that individual and organizational goals can be integrated. 1. The expenditures of physical and mental effort in work are as natural as play or rest. 2. External control and the threat of punishment are not the only means for bringing out effort toward organizational objectives. 3. Commitment to objectives is a function of the rewards associated with their achievement. 4. The average human being learns, under proper conditions, not only to accept but also to seek responsibility. 5. The capacity to exercise a relatively high degree of imagination, ingenuity, and creativity in the solution of organizational problems in widely, not narrowly, distributed in the population. 6. Under the condition of modern industrial life, the intellectual potentialities of the average human being are only partially utilized. Theory Y's purpose is to encourage integration, to create a situation in which an employee can achieve his or her own goals best by directing his or her efforts toward the objectives of the organization. It is a deliberate attempt to link improvement in managerial competence with the satisfaction of higher-level ego and self-actualization needs. Theory Y leads to a preoccupation with the nature of relationships, with the creation of an environment which will encourage commitment to organizational objectives and which will provide opportunities for the maximum exercise of initiative, ingenuity, and self-direction in achieving them. Management/ Leader Alan Chapmen

Other Referenced Theories Hersey-Blanchard Situational Leadership Based on the amount of direction (task-behavior) and amount of socio-emotional support (relationship-behavior) a leader must provide given the situation and the "level of maturity" of the followers.

Hersey-Blanchard Situational Leadership To determine the appropriate leadership style to use in a given situation, the leader must first determine the maturity level of the followers in relation to the specific task that the leader is attempting to accomplish through the effort of the followers. As the level of followers' maturity increases, the leader should begin to reduce his or her task behavior and increase relationship behavior until the followers reach a moderate level of maturity. As the followers begin to move into an above average level of maturity, the leader should decrease not only task behavior but also relationship behavior. Once the maturity level is identified, the appropriate leadership style can be determined. The four leadership styles are telling, selling, participating, and delegating. High task/low relationship behavior (S1) is referred to as "telling." The leader provides clear instructions and specific direction. Telling style is best matched with a low follower readiness level. High task/high relationship behavior (S2) is referred to as "selling." The leader encourages two-way communication and helps build confidence and motivation on the part of the employee, although the leader still has responsibility and controls decision making. Selling style is best matched with a moderate follower readiness level. High relationship/low task behavior (S3) is referred to as "participating." With this style, the leader and followers share decision making and no longer need or expect the relationship to be directive. Participating style is best matched with a moderate follower readiness level. Low relationship/low task behavior (S4) is labelled "delegating." This style is appropriate for leaders whose followers are ready to accomplish a particular task and are both competent and motivated to take full responsibility. Delegating style is best matched with a high follower readiness level.

Selecting a Style Some people are motivated by reward Some people are motivated by punishment Social systems work best with a chain of command When people have agreed to do a job, a part of the deal is that they cede authority to their leader

PATH-GOAL THEORY OF LEADERSHIP (Daft, p. 527) Based on Expectancy Theory of Motivation A leader should emphasize either path clarification or adjust rewards depending on the factors affecting a person’s motivation Theory assumes people can change their leadership styles to fit the situation

Situational Contingencies Three Important Situational Contingencies in Path-Goal Theory (Daft, p. 531) The personal characteristics of group members The work environment

SUBSTITUTES FOR LEADERSHIP (Daft, p. 531) Do we always need “leaders” to make things happen? Substitutes vs. Neutralizers

SUBSTITUTES FOR LEADERSHIP (Daft, p. 531) Substitutes for leadership make the leadership style unnecessary Neutralizers counteract the leadership style

Substitutes for relationship leader behaviors: intrinsically satisfying work professionally-oriented subordinates group cohesiveness Substitutes for task leader behaviors: able and experienced subordinates routine formalized work highly structured tasks automatic feedback professionalism

Change Leadership (Daft, p. 532) Transactional Leader: Provides direction for subordinates to achieve set objectives (typical “good manager” using position power & some personal power) Transformational Leader: Special ability to create innovation & change (charismatic leader within an organization – high on position & personal power)

ADD-ON EFFECT OF TRANSFORMATIONAL LEADERSHIP Transactional Leadership Current state of expected subordinate effort Normal performance Transformational Heightened motivation to attain designed outcome (extra effort) Subordinate beyond normal expectations