Leadership Chapter 15

Leadership Different leaders behave in different ways – style, need, situation 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 Manager’s Challenge: Aramark Corp.

Leadership Topics Chapter 15 Leadership definition Different leaders behave in different ways – style, need, situation Leadership definition Differences in leadership and management Theories of leadership effectiveness Charismatic and transformational leadership How leaders use power and influence to get things done New leadership approaches for today’s turbulent environment

Nature of Leadership travel the globe solving problems 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.

Leadership versus Management Promotes stability, order and problem solving within existing organizational structure and systems Promotes vision, creativity, and change M L Takes care of where you are Takes you to a new place

Leader versus Manager Qualities Leader Qualities Manager Qualities 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 Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12

Traits = personal characteristics Leadership Traits Traits = personal characteristics Traits - early efforts to understand leadership success focused on leader’s 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

Personal Characteristics of Leaders Physical Characteristics Energy Physical stamina Personality Self-confidence Honesty & integrity Enthusiasm Desire to lead Independence Social Characteristics Sociability, interpersonal skills Cooperativeness Ability to enlist cooperation Tact, diplomacy Social Background Education Mobility Intelligence and Ability Judgment, decisiveness Knowledge Intelligence, cognitive ability Work-related Characteristics Achievement drive Drive to excel Conscientiousness in pursuit of goals Persistence against obstacles, tenacity Source: Adapted from Bernard M. Bass, Stogdill’s Handbook of Leadership, rev. Ed. (New York: Free Press, 1981), 75-76. This adaptation appeared in R. Albanese and D. D. Van Fleet, Organizational Behavior: A managerial Viewpoint (Hinsdale, III.: The Dryden Press, 1983).

Behavioral Approaches Ohio State Studies 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

Behavioral Approaches Michigan Studies At about the same time as Ohio State Studies University of Michigan compared the behavior of effective and ineffective supervisors Employee-centered leaders Job-centered leaders

The Leadership Grid Blake and Mouton Two-dimensional leadership theory that measures the leader’s concern for people and for production Builds on the work of Ohio State and Michigan studies Experiential Exercise: T-P Leadership Questionnaire

The Leadership Grid Leadership Grid High Concern for People Low Low 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. 5,5 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 Relationship between leadership style and situation Fiedler’s Contingency Theory Hersey and Blanchard Situational Theory Evans and House Path Goal Theory

Fiedler’s Classification of Situation Favorableness Leaders needs to know Whether they have a relationship- or task-oriented style Should diagnose the situation and determine the favorableness of the following three areas 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.

Hersey-Blanchard’s Situational Leadership Theory Links leader’s behavioral style with subordinates’ task readiness Follower Characteristics Appropriate Leader Style Low Readiness Level Low Readiness Level Telling Selling Moderate Readiness Level High Readiness Level Participating Very High Readiness Level Delegating

Path Goal Theory Source: Based on Bernard M. Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985), 26-40.

Path-Goal Theory Leader Behaviors Classification of (4) 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

Path-Goal Theory Leaders Behaviors Classification of (4) leader 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

Path-Goal Situational Contingencies Personal characteristics of group members The work environment Degree of task structure Nature of formal authority system Work group itself

Path-Goal Situations & Preferred Leader Behavior Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), 146-152.

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

Leading Change 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

Leading Change Charismatic Leaders 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

Leading Change Transformational Leader 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

Sources of Power Legitimate Power: power coming from a formal management position. Reward Power: stems from the authority to bestow rewards on other people. Coercive Power: the authority to punish or recommend punishment. Expert Power: leader’s special knowledge or skill regarding the tasks performed by followers. Referent Power: personality characteristics that command subordinates’ identification, respect, and admiration so they wish to emulate the leader

Post-Heroic Leadership for Turbulent Times The turbulence and uncertainty of the environment in which most organizations are operating is a significant influence on leadership styles Post-heroic leader’s major characteristic is humility Ethical Dilemma: Does Wage Reform Start at the Top?

Leadership in Turbulent Times The concept and practice of leadership continues to grow and change Post-heroic approach Servant leadership Level 5 leadership Interactive leadership E-leadership Moral leadership