Leadership Chapter 11 PowerPoint Presentation by Charlie Cook Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? Leadership Creates a vision of the future for all stakeholders. Is the art of motivating and persuading others to follow a course of action (a plan). Is the process of influencing others to attain organizational and personal goals. Is matching environmental opportunities with core competencies and the skills of employees. Is building an organization that creates products to meet or exceed customer expectations while increasing stockholders’ wealth. Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) Components of Leadership Leader Situation Follower Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) Managers Are concerned with “getting things done.” Focus on demands and constraints of the moment. Must deal with internal daily production concerns (process orientation). Attempt to preserve the status quo. Leaders Focus on “getting the right things done.” Are often bored with routine tasks. “Thrive on chaos” and seek innovative and novel solutions. Are concerned with substance—the true purpose of the work. Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) Role of the leader Individual property of leadership A combination of personal attributes and abilities such as vision, energy, and knowledge. Process of leadership The individual’s ability to create a shared vision of the future and direct individual efforts at work toward the vision. Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) Qualities of effective followers: Capable of self-management. Committed to the organization’s purpose, principles, and goals. Willing to increase their competence and skills and apply them to organizational outcomes. Courageous, honest, and credible. Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) Developing better followers Redefine the role of the leader and the follower. Hone effective followership skills. Use the performance evaluation process and feedback to shape behavior. Use the organization structure to encourage effective followership. Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) The situation Is the context in which leadership occurs. Determines how successful a leader can be in influencing and persuading subordinates. Can limit the leader’s ability to use rewards as a source of employee motivation. Can substitute for leadership when self-leadership is part of the situational context. Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) Power Is the personal ability to get people to do something they otherwise wouldn’t do. Its influence on the organization is not limited to and can exceed the authority assigned to an individual’s position. Authority Is granted by membership in the organization and is generally related to one’s position or job. Limits the decision-making power of managers. Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) Types of power Reward power is the manager’s ability to allocate organizational resources in exchange for cooperation. Coercive power, sometimes called punishment power, is the opposite of reward power. Expert power is based on an individual’s technical or expert knowledge about a particular area. Referent power arises from an individual’s personal characteristics that are esteemed by others. Personal power consists of both expert and referent power, or a combination of both. Copyright © 2005 South-Western. All rights reserved.

What Is Leadership? (cont’d) Why Do Employees Respond to Different Types of Power? Copyright © 2005 South-Western. All rights reserved. Exhibit 11 . 1

Theories of Leadership Leadership is one of the most studied aspects of management. Trait theories Attempted to describe effective leaders by focusing on the personal characteristics of a leader. Behavioral models Focus on the work itself and worker attitudes. Contingency leadership models Posited that a leader’s behavioral style must be contingent on the situation if the leader is to be effective. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Trait theory of leadership Effective leaders could be identified based on certain physical and psychological attributes (e.g., intelligence, height, articulateness). Traits did not transfer well from one situation to another or across cultures. Trait theory generally ignores effects of the situation and workers. Lists of traits fail to give weight to the relative importance of the many possible traits. Trait theory does not explain the significant variances in leadership effectiveness. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Some Common Leadership Traits Source: Adapted from Bernard Bass, Stogdill’s Handbook of Leadership, revised and expanded ed. (New York: Free Press, 1981), 66. Copyright © 2005 South-Western. All rights reserved. Exhibit 11 . 2

Theories of Leadership (cont’d) Characteristics attributed to men Lead by command and control. Encourage rewards for services rendered. Rely on positional power. Follow a hierarchical structure. Action orientation. Think analytically. Characteristics attributed to women Share power and information. Enhance self-worth of others. Encourage participation. Get others excited about their work. Source: Adapted from Judy B. Rosener, “The Valued Ways Men and Women Lead,” Human Resources, June 1991, p. 149; Judy B. Rosener, “Ways Women Lead,” Harvard Business Review, November–December 1990, pp. 119–25; and Lee Gardenswartz and Anita Rowe, Managing Diversity (Burr Ridge, IL: Business One Irwin, 1993), 356–361. Management Highlight Do Men and Women Have Different Leadership Traits? Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Behavioral theory assumptions Different leaders have or could develop specific, different leadership (behavioral) styles. Leader effectiveness is based on leader behaviors—what the leader does, rather than which traits the leader possesses. Effective leaders focus not only on the work, but on workers’ attitudes and expectations. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Behavioral theory styles Task-oriented behavioral style Consists of behaviors such as setting goals, giving directions, supervising worker performance, and applauding good work. Relationship-oriented behavioral style Consists of behaviors such as showing empathy for worker needs and feelings, being supportive of group needs, establishing trusting relationships with workers, and allowing workers to participate in work-related decisions. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Job-centered and employee-centered leader behaviors Task-oriented leader behaviors Job-centered leaders achieved higher worker productivity. People-oriented leader behaviors Employee-centered leaders create more positive worker attitudes. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Initiating structure and consideration Initiating structure Task-oriented leaders insist workers follow rigid work methods, use close supervision and direction, make decision alone, and push workers for greater efforts. Consideration Relationship-oriented leaders appreciate job well done, stress high morale, treat workers as equals, and are friendly and approachable. Subsequent studies found that leaders who score high on both behaviors are more effective than leaders scoring low on these behavioral styles. Copyright © 2005 South-Western. All rights reserved.

The Leadership Grid Exhibit 11 . 3 Source: The Leadership Grid® (formerly the Managerial Grid by Robert T. Blake and Jane. S. Mouton) from R. R. Blake and A. A. McCanse, Leadership Dilemmas—Grid Solutions (Houston: Gulf Publishing, 1991), 29, Copyright © 1991 by Scientific Methods, Inc. Reproduced by permission of the owners. Copyright © 2005 South-Western. All rights reserved. Exhibit 11 . 3

Theories of Leadership (cont’d) Situational theories of leadership The appropriate leader behavior is the one best fitting the constraints of a specific situation. Leader effectiveness is contingent on displaying behavior appropriate to the situation’s demands. Identify important leadership situations and suggest various leadership behaviors that increase worker satisfaction and productivity. Fitting a fixed-style leader to a particular situation. Matching leader behavior to an amendable situation (leader style not fixed, situation alterable). Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Fiedler’s least preferred co-worker (LPC) theory Describes effective leadership as a behavioral predisposition of the leader matched with a favorable situation. The leader’s personality determines how they are likely to respond to their workers. People have a primary orientation (or leadership style) that emphasizes task completion or concern for people. LPC (Least Preferred Coworker) scale assesses the leader’s attitude about their least preferred coworker (LPC) to measure the leader’s preferred behavioral style as task-orientated or people-oriented. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Fiedler’s LPC theory (cont’d) Situational characteristics Leader-member relations represent the follower’s trust and confidence in the leader. Task structure is the degree to which a task is well defined and clearly understood. Position power is the power available to the leader to reward or punish the follower. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Fiedler’s LPC Theory of Leadership Adapted from: Fred E. Fiedler, “The Effects of Leadership Training and Experience: A Contingency Model Interpretation,” Administrative Science Quarterly, 17, 1972, 455; Fred E. Fiedler, “How to Engineer the Job to fit the Manager,” Harvard Business Review, September-October 1965. Copyright © 2005 South-Western. All rights reserved. Exhibit 11 . 4

Theories of Leadership (cont’d) Cognitive resources theory What resources do effective leaders rely on to make decisions? Assumption: Leaders rely on their cognitive resources, developed through education, experience, and personality, to make decisions. Findings: In high-stress situations, leaders should rely on their experience; in low-stress situations, they should rely on their intelligence. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Situational leadership theory (Hersey-Blanchard) Assumptions: Leaders can and should adjust their behavior to suit the decision-making situations in the workplace. Ready followers require less leadership; less ready followers need more guidance and more leadership. Findings: The best leadership style is the one that best matches the situation. Leadership style also depends on the readiness of followers for independent action. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Path-goal theory of leadership Assumptions: The leader’s role is to clarify the path by which followers can achieve personal and organizational outcomes and increase rewards valued by followers. Path-goal theory identifies four leader behaviors: Directive behavior. Supportive behavior. Participative behavior. Achievement behavior. Copyright © 2005 South-Western. All rights reserved.

Theories of Leadership (cont’d) Path-Goal Theory Adapted from: R.J. House and T.R. Mitchell. “Path-Goal Theory of Leadership,” Journal of Contemporary Business, Autumn 1974, 81-97; R.J. House. “A Path-Goal Theory of Leader Effectiveness,” Administrative Science Quarterly, September 1971, 321–338. Copyright © 2005 South-Western. All rights reserved. Exhibit 11 . 6

Theories of Leadership (cont’d) Leader-member exchange theory (LMX) Assumptions: The relationship (a vertical dyad linkage) leaders develop with each subordinate influences leadership effectiveness and results in differential treatment of followers (in- and out-groups). Findings: A low-exchange relationship is based on rules and procedures. A high-exchange relationship involves the leader’s allocation of discretionary rewards in exchange for the subordinate’s compliance. Copyright © 2005 South-Western. All rights reserved.

Substitutes for Leadership Situational characteristics can prevent the exercise of or reduce the need for traditional leadership. Characteristics of the subordinate. The task. The organization. Neutralizer An aspect of a situation that prevents a leader from acting in a specified way by removing the leader’s ability, authority, or power to influence the situation, the task, or subordinates. Copyright © 2005 South-Western. All rights reserved.

Substitutes for Leadership (cont’d) Copyright © 2005 South-Western. All rights reserved. Exhibit 11 . 7

Transformational/Transactional Leadership Transformational leadership An inspirational (charismatic) form of leader behavior based on modifying followers’ beliefs, values, and ultimately their behavior. Transactional leadership Leader behavior that is based on appealing to followers’ rational exchange motive (e.g., exchanging labor for wages) to help clarify the path from effort to reward and to focus them on organizational goals. Copyright © 2005 South-Western. All rights reserved.

Emotional Intelligence Emotional intelligence (Goleman) The set of personal characteristics (self-awareness, self-regulation, motivation, empathy, and social skills) that plays a key role in leader success by allowing persons to more effectively manage themselves and their relationships with others. Copyright © 2005 South-Western. All rights reserved.

Emotional Intelligence (cont’d) Adapted from: P. Salovey and J. Mayer (1990). “Emotional intelligence.” Imagination, Cognition, and Personality, no. 3, 185–211; D. Goleman. Emotional intelligence (New York: Bantam); D. Goleman, “Leadership that gets results,” Harvard Business Review, March-April 2000, 79–90. Copyright © 2005 South-Western. All rights reserved. Exhibit 11 . 8

Self-Leadership Self-leadership A management philosophy that encompasses a systematic set of behavioral and cognitive strategies leading to improved performance and effectiveness. Empowerment: providing workers with skills, tools, information, authority and responsibility for their work. Self-management: using work strategies to control daily activities to achieve organizational goals. Role modeling: a process by which leaders exhibit behaviors that they expect other employees to follow. Copyright © 2005 South-Western. All rights reserved.

Self-Leadership (cont’d) Behavioral self-management A set of strategies that help people gain greater control over their lives. Common strategies include: Self-set goals. Self-observation. Self-rewards. Self-cueing. Self-designed jobs. Copyright © 2005 South-Western. All rights reserved.

Self-Leadership (cont’d) Cognitive self-management An individual worker creates mental images and thought patterns that are consistent with the firm’s goals. Opportunity building: the process of seeking out and/or developing new possibilities for success. Positive self-talk: the process of creating mental imagery that reinforces a worker’s sense of self-esteem and enhances effectiveness. Copyright © 2005 South-Western. All rights reserved.

Self-Leadership (cont’d) Developing a self-leadership culture Sharing information Self-managed workers need a great deal of information; many traditional management secrets must become part of their information base. Training Training in self-management strategies should focus on improving communication skills, team building, or developing various self-management strategies. Reinforcement The administration of performance rewards can help reinforce the use of self-management behaviors. Copyright © 2005 South-Western. All rights reserved.

Leadership Challenges Future leaders will face challenges such as: Increasing global competition. Emphasis on speed, service, and information. Lean and flexible work demands for more value-added labor and reduced indirect labor costs. Need to employ untrained, unskilled, and disenfranchised employees. Fewer low-skilled jobs available as more low-skilled workers enter the market. Employee demands for greater participation. Copyright © 2005 South-Western. All rights reserved.

Leadership Challenges (cont’d) Future challenges (cont’d) Shift to teams, skill-based pay, and cooperation with the firm. Increasing gaps, particularly between Elite, skilled employees with lifetime employment and a working underclass with limited skills and few employment options. Knowledge-intensive, highly educated employees and labor-intensive, unskilled employees. Further expansion of information technologies; flatter, decentralized organizations with greater employee need for self-management. Copyright © 2005 South-Western. All rights reserved.