Leadership II: Approaches and Issues Chapter 11 Leadership II: Approaches and Issues

Learning Objectives After studying this chapter, you should be able to: Compare and contrast the various approaches to, and theories of, leadership Describe the similarities and differences between leadership and management Differentiate between charismatic, transformational, and transactional leaders These learning objectives are expressed in the chapter and you may prefer to move directly to slide 4, if you are comfortable that students agree with the objectives. It should be noted at this point, that all slides that have been prepared for this and the other chapters, have been animated to assist in the presentation. The most important animations are not the bulleted text items (which are animated) but rather the animation of models and exhibits. Models and exhibits contain “sequenced” animations and attempt to portray in visual terms, what the text attempts to portray in words. Many of the models contained in the textbook are taken out of their “static” context and shown here as the “dynamic” constructs they are. A dynamic construct is one that shows how one variable or event is affected by another, and this implies change. Such concepts should be presented dynamically, which means the animation should reflect the change implied by the construct or model. It is a good idea to “play” through the slides before presenting the materials to be sure you understand how they work. Although these slides can be printed and displayed as “transparencies”, the dynamic nature of the concepts will be less obvious. The slides are best shown in the classroom with your computer connected to the overhead projector. To view the animated presentation, select “View Show” from the Slide Show pull-down menu, or press the F5 key at the top of the keyboard, or select “Slide Show” from the View pull-down menu. . The slides were prepared using Office 2000 to facilitate the likely lowest common denominator for software. However, they will also play under Office XP and newer software. ©2005 Prentice Hall

Learning Objectives After studying this chapter, you should be able to: Discuss E-leadership Analyze the effects of culture on theories of leadership Explain the ways in which an individual can improve her/his own leadership capabilities ©2005 Prentice Hall

Leadership Perspectives Leader Follower Situation Blake and Mouton: Managerial Grid XX Hersey and Blanchard: Situational Leadership Model X XX Fiedler: Contingency Leadership Model XX XX House: Path-Goal Theory Exhibit 11.1 (page 381 in the textbook) has been animated to permit you to preview each leadership perspective at this point if you wish. As the text evolves in this chapter, the importance of situational and follower variables increases. One concept, the normative decision model, is not really a model of leadership behavior, but it is included because of the importance of sharing decision making with subordinates. It is probably a good idea to get that notion cemented in students’ minds at this point to avoid confusion when the concept is covered. XX XX XX Vroom/Yetton: Normative Decision Model XX X XX Substitutes for Leadership XX X = Strong Emphasis XX = Very Strong Emphasis ©2005 Prentice Hall Adapted from Exhibit 11.1: Leadership Perspectives: Relative Emphasis on Leader, Follower, and Situation

Leadership Grid Both concern for people and concern for production are necessary for effective leadership Best managers are high on both dimensions (9,9) A 9,9 leader is best kind of leader, irrespective of who the followers are or what kinds of situations confront the leader The Blake and Mouton grid (alternatively called the leadership grid or the managerial grid) is one of the earliest leadership models that recognized that leaders had more complex forms of leadership behavior. It identifies two dimensions to leader behavior, concern for people and concern for production, and recognizes that leaders can have some of both types of behavior, and that they do not necessarily conflict with each other. The grid is seen in the next slide. ©2005 Prentice Hall

Leadership Grid Concern for People Concern for Results Low High Low 9 8 7 6 5 4 3 2 1 1,9 9,9 Low High Concern for People 5,5 Exhibit 11.2 (page 381 in the textbook) has been animated to permit you to discuss, point-by-point, each axis an its scale, and each of 5 critical or identifiable points in the graph. The horizontal axis is titled “Concern for Results” but corresponds to task orientation as described in the text. It sometimes helps students if they can identify managers they have worked for who correspond to any of the five points identified in the exhibit, and describe their reactions to these leaders. 1,1 1 2 3 4 5 6 7 8 9 9,1 Low High Concern for Results ©2005 Prentice Hall Adapted from Exhibit 11.2: Blake and Mouton: The Leadership Grid

Situational Leadership Model Successful leadership behaviors depend on the “readiness” of followers Ability in relation to a specific task Willingness to undertake the new task Leadership behaviors Supportiveness (people orientation) Directiveness (task orientation) Four combinations of the two dimensions of leadership behavior Hersey and Blanchard’s situational leadership model is described in this and the next slide. One of the more interesting aspects of this model is that it identified dimensions of the follower’s behavior that are important in choosing appropriate leadership behaviors. By determining the best “match” between subordinate readiness and leadership behavior, performance is enhanced. ©2005 Prentice Hall

Situational Leadership Model Low High Participating Delegating Follower Ability Telling Selling Exhibit 11.3 (page 382 of the text) has been animated to permit point-by-point discussion of the match between the two dimensions of follower behavior and the two dimensions of effective leader behavior. It permits discussion of each dimension of follower behavior (the horizontal and vertical scales, the two dimensions of leader behavior, and then the proper “match” beginning with followers with the lowest level of readiness, progressing to those who are highest in readiness. Low High Follower Motivation Supportive leader behavior Directive leader behavior ©2005 Prentice Hall Adapted from Exhibit 11.3: Hersey and Blanchard: Situational Leadership Model

Leadership Contingency Theory Task-oriented leaders (low LPC score) and relationship-oriented leaders (high LPC score) must be matched to leadership situations Favorableness of leadership situation Relations with subordinates Task structure Position power Fiedler’s contingency theory is one of the most researched leadership concepts. This slide permits discussion of the measure of leadership style (the LPC score) and the three variables that are used to measure situational favorableness. ©2005 Prentice Hall

Leadership Contingency Theory SITUATION Favorable (for leader) Good subordinate relationships Highly structured task Leader with high amount of position power Unfavorable (for leader) Poor subordinate relationships Unstructured task Leader lacks position power LEADERS Low LPC Perspective Rates least preferred co-worker harshly Task oriented Most effective when situation is either highly favorable or highly unfavorable High LPC Perspective Rates least preferred co-worker favorably Person oriented Most effective when situation is neither highly favorable nor highly unfavorable Exhibit 11.4 (see page 385 in the textbook) has been animated to permit discussion of the situation, favorability, and leaders, LPC (style). ©2005 Prentice Hall Adapted from Exhibit 11.4: LPC Theory

Path-Goal Theory Leader’s job is to increase subordinate satisfaction and effort Increase personal payoffs to subordinates for work-goal attainment Make the path to these payoffs easier to travel Clarify it Reduce roadblocks and pitfalls Increase opportunities for personal satisfaction en route House’s path-goal theory is very appealing to many readers because it invokes the leader’s responsibility for motivating subordinates. The assumption is that motivated employees perform better than employees who are not motivated. Relying on the VIE model of motivation, then, House identified points along the path to high motivation where supervisors can intervene to enhance motivation. The discussion continues on the next two slides. ©2005 Prentice Hall

Path-Goal Theory Two basic leadership behaviors Supportive leadership Directive leadership Assumes that a particular leadership approach will work better in some task situations than others Assumes that leaders can modify their styles to suit the situation. ©2005 Prentice Hall

Supportive Leadership Style Directive Leadership Style Path-Goal Theory IF The task is: Frustrating, boring, stressful, structured, and routine Supportive Leadership Style (Person oriented) AND Subordinates are: Highly experienced and competent Goal (i.e., increased performance) IF The task is: Interesting but ambiguous, nonstressful, unstructured, varied Exhibit 11.5, found on page 385, has been animated to permit point-by-point discussion of two examples where the situation variables (task and subordinate dimensions) differ, and how different leadership behaviors then are necessary to achieve the same goal. Other examples can be created, but introductory students of management may get confused if you give too many examples at this point. Still, it is something you might want to mention. Directive Leadership Style (Task oriented) AND Subordinates are: inexperienced ©2005 Prentice Hall Adapted from Exhibit 11.5:

Normative Decision Model Not a model of leadership behavior Examines issue of how much subordinates should be allowed to participate in decision making Also helps determine what type of participation should be allowed Two key variables Quality of the decision Acceptance of the decision by subordinates The Vroom-Yetton normative decision model is included in the leadership models because of the relationship between subordinates and leaders in determining the appropriate level of subordinate involvement in decision making. The discussion continues through slide 18, and you should look through them all before deciding how you want to present the discussion. ©2005 Prentice Hall

Normative Decision Model Decision Stylea Definition AI Leader makes the decision alone AII Leader asks for information from team members but makes the decision alone. Team members may or may not be informed what the situation is. CI Leader shares situation with each team member and asks for information and evaluation. Team members do not meet as a team, and the leader alone makes the decision. CII Leader and team members meet as a team to discuss the situation, but the leader makes the decision. Exhibit 11.6 (page 387 in the text) describes the decision making styles, autocratic, consultative, and group decision making. It has been animated to permit you to discuss each decision style, in turn. G Leader and team members meet as a team to discuss the situation, and the team makes the decision. aA = autocratic C = consultative G = group Sources: V. H. Vroom and P. W. Yetton, Leadership and Decision-Making (Pittsburgh, PA: University of Pittsburgh Press, 1973); V. H. Vroom and A. G. Jago, The New Leadership: Managing Participation in Organizations (Englewood Cliffs, NJ: Prentice Hall, 1988). ©2005 Prentice Hall Adapted from Exhibit 11.6: Normative Decision-Making Model: Decision-Making Styles

Normative Decision Model State the Problem QR How important is the quality of this decisions? CR How important is subordinate commitment to the decision? LI Do you have sufficient information to make a high-quality decision? The decision tree (Exhibit 11.7, page 388), is presented on this and the next two slides. They will appear as one slide if presented in the “View Show” mode. The tree is animated to permit discussion of each decision point, and on slide 18, to permit integration of the five decision styles, with the end points of the process for identifying the proper style. The decision tree is far too complicated to put it on a single slide and for students to be able to actually read the decision points in a normal classroom, so I recommend they follow along in their text if they have it with them. ST Is the problem well structured? CP If you were to make the decision by yourself, is it reasonably certain that your subordinates would be committed to it? ©2005 Prentice Hall Adapted from Exhibit 11.7: Normative Decision-making Model for Leaders’ Use of Participation: Decision-Tree Questions

Normative Decision Model State the Problem GC Do subordinates share the organization goals to be attained in solving this problem? CO Is conflict among subordinates over preferred solutions likely? SI Do subordinates have sufficient information to make a high-quality decision? ©2005 Prentice Hall Adapted from Exhibit 11.7: Normative Decision-making Model for Leaders’ Use of Participation: Decision-Tree Questions

Normative Decision Model Decision-making Procedures AI Manager makes decision alone AII Manager gets information from team, makes decision alone CI Manager shares problem, gets information, makes decision alone CII Manager and subordinates meet to discuss situation, manager makes decision alone The decision-making procedures are presented here, with the decision tree. The procedures were discussed on slide 15 and so the descriptions have been edited to save space here. The important thing about this slide is for students to see how the various branches followed by asking the questions seen in slides 16 and 17, lead to different approaches for sharing decision making with subordinate teams. G Manager and leader meet to discuss situation, team makes decision ©2005 Prentice Hall Adapted from Exhibit 11.7: Normative Decision-making Model for Leaders’ Use of Participation: Decision-Tree Questions

Substitutes for Leadership Alternative approaches May partially substitute for leadership Can sometimes overcome poor leadership Aspects of organization or work situation Can neutralize the best efforts of leaders Inflexible organization procedures Inadequate compensation policy There are a great many organizational factors that act as leadership substitutes (at least partially). Generally these are factors that add structure to subordinate tasks and activities, which alleviates the need for leaders to constantly provide guidance. Also there are many factors that work against leadership efforts, referred to in the text as neutralizers. ©2005 Prentice Hall

Substitutes for Leadership Ability, experience, training Intrinsically satisfying task Substitutes for leadership Professional orientation Ability, experience, training Substitutes for Leadership Professional orientation Advisory or staff support Intrinsically satisfying task Advisory or staff support Direct feedback from the task Cohesive work group (with positive performance norms) Exhibit 11.8 (page 388 in the text) has been animated to permit point-by-point discussion of the six substitutes for leadership described in the text. There is not a bulleted list elsewhere in this set of slides, so the discussion should be made from this slide. It is a good idea to describe how each of these acts as a substitute, and how leaders or managers can arrange for these factors to be present in the work setting, enhancing his or her effectiveness. Cohesive work group (with positive performance norms Direct feedback from the task ©2005 Prentice Hall Adapted from Exhibit 11.8: Examples of Possible Substitutes for Leadership

Leading and Managing: The Same or Different Leaders Create vision for organizations and units Promote major changes in goals and procedures Set and communicate new directions Inspire subordinates Managers Deal with interpersonal conflict Plan Organize Implement goals set by others (the leaders) The discussion of the differences in the terms “leaders” and “managers” occurs on this and the next slide. The point of the discussion is to get students to see the two dimensions that will undoubtedly be present during their business careers. As the next animated exhibit points out, effective leaders also perform managerial tasks, and vice-a-versa. ©2005 Prentice Hall

Leading and Managing: The Same or Different Managing ought to involve most of the activities thought of as leading Organizations need their managers to also incorporate leadership roles into their behavior Leaders and Managers Leaders Managers Exhibit 11.9 (page 390 of the textbook) is animated to permit discussion of the leadership function, the managerial function and the “overlap” that is present in most management or leadership positions. Eliciting examples from students of persons they have observed who perform these overlapping responsibilities adds to the discussion. ©2005 Prentice Hall Adapted from Exhibit 11.9: The Overlapping Roles of Leaders and Managers

Charismatic Leadership Charisma is a strong form of referent power Influence is based on individual inspirational qualities rather than formal power Followers or subordinates identify with charismatic leaders because of these exceptional qualities This and the next slide present ideas regarding “charismatic” leadership, more of a personality approach. Examples of charismatic leaders are easy to elicit from students, although there may be disagreements between them, as not everyone follows the same charismatic leaders. ©2005 Prentice Hall

Charismatic Leadership Attributes of Charismatic Leaders Need for power Impression management Self-sacrifice toward organization Innovative or unorthodox actions Ideals, values, lofty goals High expectations for followers Models desired behaviors Inspires followers Strong belief in own ideas High level of self-confidence Exhibit 11.10 (page 393 of the text) is presented on this slide with a bulleted list of the ten attributes discussed in the chapter. The exhibit has a minimum level of animation, but the bulleted points are presented one-at-a-time. Discussion points can be found in the chapter from pages 391-393, and you might add examples to enhance the discussion. ©2005 Prentice Hall Adapted from Exhibit 11.10: Attributes of the Charismatic Leader

Transformational Leadership Leaders empower and coach followers Followers identify with the leader Motivate followers (to) Ignore self-interest Work for the larger good of the organization Achieve significant accomplishments Make major changes Transformational and transactional leadership are presented in this slide through slide 28. Transformational leaders intrinsically motivate followers to accept needed organizational changes, whereas transactional leadership is more about using contingent rewards for motivating followers. ©2005 Prentice Hall

Transactional Leadership More passive Emphasizes exchange or rewards or benefits for compliance with leader’s requests Appeals to followers’ self-interests to motivate their performance ©2005 Prentice Hall

Transformation versus Transactional Leadership Transformational Leadership Transactional Leadership Leader gains subordinates’ compliance by: Inspiring, empowering, and coaching followers Exchange of rewards and benefits Appeals focus on: Organizational and “common good” interests Self-interest Exhibit 11.11 (page 394 of the text) has been animated to permit point-by-point discussion of three important distinctions between transformational and transactional leaders. Type of planned change: Major organizational change Routine changes ©2005 Prentice Hall Adapted from Exhibit 11.11: Transformation versus Transactional Leadership

Guidelines for Transformational Leadership Those Who Want to Be Transformational Leaders Should: Develop a clear and appealing vision Develop a strategy for attaining the vision Articulate and promote the vision Act confident and optimistic Express confidence in followers Use early success in small steps to build confidence Celebrate successes Use dramatic, symbolic actions to emphasize key values Lead by example Exhibit 11.12 (page 396 of the text) has been animated to permit point-by-point discussion of the nine recommendations for those who want to be more transformational in their approach to leadership. You can discuss each point, or simply forward to the one or two that you wish to emphasize by simply clicking the mouse without discussion as you fast forward to the ones that you will discuss. Source: Adapted from G. Yuki, Leadership in Organizations, 3rd ed. (Englewood Cliffs, NJ: Prentice Hall, 1994). ©2005 Prentice Hall Adapted from Exhibit 11.12: Guidelines for Transformational Leadership

E-age Leadership Rely on use of information technology to supplement more traditional leadership methods Maximize use of information technology to strengthen leadership efforts E-age leadership may be discussed as a distinct, emerging form of leadership, or it may be discussed as one of the “leadership substitutes.” It also can be described as simply a set of tools that effective modern managers must use to maintain their effectiveness in our information age. ©2005 Prentice Hall

Leadership Across Different National Cultures Examples of leader attributes universally viewed as positive Examples of leader attributes universally viewed as negative Examples of leader attributes viewed as positive or negative depending on the culture + + Trustworthy + Encouraging + Honest + Decisive + Communicative + Dependable - - Noncooperative - Irritable - Dictatorial - Ruthless - Egocentric - Asocial +/- +/- Ambitious +/- Individualistic +/- Cunning +/- Cautious +/- Class Conscious +/- Evasive Exhibit 11.13 (page 399 of the text) has a limited animation to permit point-by-point discussion of attributes viewed as positive (1st mouse click), negative (2nd mouse click) and either positive or negative (3rd mouse click). It is important to point out that what one culture views as positive may be viewed quite negatively in another culture, and we must understand how such attributes are viewed when we accept international management assignments. What attributes can students add to the lists and why? Source: R. J. House, “Cultural Influences on Leadership and Organizations: Project GLOBE,” in W. Mobley (ed.), Advances in Global Leadership, vol. 1 (Stamford, CT: JAI Press, 1998). ©2005 Prentice Hall Adapted from Exhibit 11.13: The Effect of Culture on Attitudes toward Leaders’ Attributes

Improving Your Own Leadership Capabilities Set direction Set performance expectations Set an example Clarify and build paths Cheer on/ appreciate Self Followers Situation Strengths Weaknesses Skills Expectations Motivations ASSESS ACT Reassess and Change Exhibit 11.14 (page 400 of the text) has been animated to permit focused discussion of the points raised in this section. The first mouse click will begin discussion of the assessment phase. Additional clicks permit analysis of self, followers, and situation. Finally the “act” phase is illuminated and then the reassessment and change (follow-up) is highlighted. This is an excellent place for students to actually create a self-improvement plan and animated discussion should be encouraged. Constraints Opportunities ©2005 Prentice Hall Adapted from Exhibit 11.14: Improving Your Leadership Capabilities