Chapter 13: Leadership

Learning Objectives After reading and studying this chapter, you should be able to: Discuss leadership traits, skills, and behaviors Differentiate between management and leadership Describe the five sources of power leaders may possess Differentiate between positive and negative motivation Describe the three decision-making styles used by leaders Explain the two primary approaches leaders can take: task centered and people centered

Learning Objectives (Cont.) After reading and studying this chapter, you should be able to: Describe the three theories of situational leadership Discuss the three challenges facing leaders

Leading Establishing values, culture, and climate Defining a mission Identifying core competencies Scanning environments Sensing the need for change Creating a vision for the future Enlisting cooperation and support for the vision Keeping people and processes focused on satisfying various customers Unleashing the full potential from human resources

Those Who Practice Leadership Guide Direct Inspire others Counsel Persuade Coach Leadership Practices

Leadership Defined Leadership Influence Leadership Variables 1 The process of influencing individuals and groups to set and achieve goals Influence The power to sway people to one’s will or views Leadership Variables The leader Those being led The circumstances and situations they are facing

Figure 13.1 Traits and skills commonly associated with effective leadership Adaptable Cleverness (intelligence) Alert to social environment Conceptual ability Ambitious and achievement-oriented Creativity Assertive Diplomacy and tact Cooperative Fluency in speaking Decisive Knowledge about the group task Dependable Organizational (administrative) ability Dominant (desires to influence others) Persuasiveness Energetic (high activity level) Social ability Persistent Self-confident Tolerant of stress Willing to assume responsibility Source: Leadership in Organizations, p. 70 by Gary Yukl. © 1981 by Prentice-Hall, Inc. Adapted with permission of Pearson Education, Inc., Upper Saddle River, NJ 97458.

Figure 13.2 The Yukl group’s 19 categories of leadership behavior Performance emphasis Consideration Inspiration Praise-recognition Structuring reward contingencies Decision participation Autonomy-delegation Role clarification Goal setting Training-coaching Information dissemination Problem solving Planning Coordinating Work facilitation Representation Interaction facilitation Conflict management Criticism-discipline Source: Leadership in Organizations, p. 70 by Gary Yukl. © 1981 by Prentice Hall, Inc. Adapted with permission of Pearson Education, Inc., Upper Saddle River, NJ 97458.

Figure 13.3 Relationship between management and leadership

Figure 13.4 Differences between management and leadership 2 MANAGEMENT Planning and budgeting Organizing and staffing Controlling and problem solving LEADERSHIP Establishing direction Aligning people Motivating and inspiring Produces a degree of predictability and order and consistently achieves the key results expected by various stakeholders (for customers, being on time; for stockholders, being on budget). Produces change, often to a dramatic degree, that has the potential of being extremely useful (for example, developing new products that customers want or new approaches to labor relations that help make a firm more competitive). Source: Reprinted with the permission of The Free Press, a division of Simon & Schuster Adult Publishing Group from A Force for Change: How Leadership Differs from Management, p. 6, by John P. Kotter. Copyright © 1990 by John P. Kotter, Inc. All rights reserved.

The Five Sources of Power 3 Legitimate Power Formal authority of managers derive from their positions in their organizations Coercive Power The influence of managers that is the result of the exercise of their legitimate power to reward or punish Reward Power The right of managers to use their legitimate power to promise or grant rewards Expert Power The influence that a person’s abilities, skills, knowledge, and experience can exert when others value them Referent Power The influence that a person’s personality or personal attractiveness can have over others.

Figure 13.5 Motivation continuum 4 Positive motivators Motivate by using praise, recognition, or monetary rewards or by increasing security or granting additional responsibilities Encourage development of employees Coercion in the form of sanctions An “environment of fear” Managers are distrusted and seen as dictators

Figure 13.6 Leadership styles and the distribution of decision-making authority 5 Which style a manager chooses should relate to the situation encountered.

Style requires managers must: Leadership Styles 5 Autocratic Style Leadership approach in which a manager does not share decision-making authority with subordinates Style requires managers must: Autocratic Style Know what needs to be done Possess expert power Face issues that they are best equipped to solve Create solutions in which implementation does not depend on others Desire to communicate through orders and instructions Is appropriate when: Handling crises Instructing others Exerting maximum focus on the task

Leadership Styles (cont’d) 5 Participative Style Leadership approach in which a manager shares decision-making authority with subordinates Style requires that managers: Share decision-making authority with subordinates Involve others and let them bring their viewpoints, talents, and experiences to bear on an issue Use participation to resolve issues that affect more than just the manager

Leadership Styles (cont’d) 5 Free-Rein Style Leadership approach in which a manager shares decision-making authority with subordinates, empowering them to function without direct involvement from managers to whom they report Style requires that managers: Ask subordinates and followers to take over the decision- making process—to solve and resolve the problem Rely heavily on delegation of authority Set limits and remain available for consultation Hold participants accountable for their actions

Task Orientation Versus People Orientation 6 What is the most effective way to get work done? Task-Centered Style Focuses on technology, methods, plans, programs, deadlines, goals, and getting the work out. Uses the autocratic style of leadership and issues guidelines and instructions to subordinates. People-Centered Style Focuses on employees and emphasizes workers’ needs. Treats employees as valuable assets and respects their views. Builds teamwork, positive relationships, and mutual trust.

Studies of Leadership Styles University of Michigan Studies Findings indicated that supervisors who focused on their subordinates’ needs (employee-centered leaders) were the most effective, building high-performance teams that reached their goals. The Ohio State University Studies High consideration leaders communicate openly, develop teams, and focus on subordinates’ needs. Initiating structure leaders are concerned with goal achievement and task orientation Leadership Grid® Blake and Mouton’s two-dimensional model for visualizing the extent to which a manager focuses on tasks, employees, or both

Figure 13.7 The Leadership Grid® Source: This image is a black and white adaptation of the Leadership Grid® figure as it appears in The Power to Change, Rachel McKee and Bruce Carlson (Austin, TX: Grid International, Inc.), p. 16. Copyright © 1999 by Grid International, Inc. Reproduced by permission of the owners.

Theories of Situational Leadership 7 Situational Leadership Fiedler’s Contingency Model Hersey and Blanchard’s Life-Cycle Theory House and Mitchell’s Path–Goal Theory

Fiedler’s Contingency Model States that a manager should focus on either tasks or employees, depending on the interaction of three variables—leader–member relations, task structure, and leader position power. Leader-Member Relations The scale of leader–member relations refers to the degree to which the leader is or feels accepted by the group. Task Structure The task structure ratings relate to the nature of subordinates’ jobs or tasks. Leader Position Power The ratings for leader position power describe the organizational power base from which the leader operates.

Figure 13.8 Fiedler’s contingency model, depicting the interaction of leadership orientations with situational variables Source: Adapted and reprinted by permission of the Harvard Business Review. From “Engineer the Job to Fit the Manager“ by Fred E. Fiedler (September–October 1965), p. 118. Copyright © 1965 by the Harvard Business School Publishing Corporation. All rights reserved.

House and Mitchell’s Path–Goal Theory Asserts that subordinates’ behaviors and motivations are influenced by the behaviors managers exhibit toward them Leadership style is effective on the basis of how successfully leaders support their subordinates’ perceptions of: Goals that need to be achieved Rewards for successful performance Behaviors that lead to successful performance

Assumptions of Path–Goal Theory A leader’s behavior is acceptable and satisfying to subordinates to the extent that they view it as either an immediate source of satisfaction or as an instrument to some future satisfaction. Assumption 2 A leader’s behavior will increase subordinates’ efforts if it links satisfaction of their needs to effective performance and supports their efforts to achieve goals.

Path–Goal Theory Leadership Behaviors 1 Instrumental behavior (task-oriented) 2 Supportive behavior (employee-oriented 3 Participative behavior (employee-oriented) 4 Achievement-oriented behavior (employee-oriented)

Path–Goal Theory Situational Factors Subordinates’ Personal Characteristics Work Environment Abilities Self-confidence Personal needs and motivations Perceptions of their leaders The organization’s culture and subcultures The philosophy of management How power is exercised Policies and rules The extent to which tasks are structured

Theories of Situational Leadership Hersey and Blanchard’s Life-Cycle Theory Asserts that a leader’s behavior toward a subordinate should relate to the subordinate’s maturity level. The focus on tasks and relationships should vary as the subordinate matures. Life-Cycle Stages of Leadership high task–high relationship focus (autocratic style) high relationship–low task approach (participative style) low task–low relationship focus (free-rein style)

Challenges Facing Leaders 8 Leadership must: be exerted throughout an organization be capable of responding rapidly Emotional intelligence (EI) – A set of competencies that distinguishes how people manage feelings, interact, and communicate. Effective leaders combine mental intelligence with emotional intelligence to handle themselves and others. The four main sets of emotional competence are self-awareness, self-management, social awareness, and relationship management. make difficult decisions

How Managers Can Become Better Leaders 8 Make the effort to know oneself—values, needs, goals, ethics, strengths, and weaknesses Be adaptable and flexible; serve as a change agent Develop a servant-leader management philosophy that respects others, promotes self-improvement, and encourages others to do the same.

Key Terms autocratic style Leadership Grid® contingency model emotional intelligence (EI) free-rein style influence leadership Leadership Grid® leadership style life-cycle theory participative style path–goal theory