Leadership McGraw-Hill/Irwin Contemporary Management, 5/e Copyright © 2008 The McGraw-Hill Companies, Inc. All rights reserved. chapter fourteen

DEFINING LEADERSHIP Leadership – Directing the behavior of others toward the accomplishment of goals or “Getting things accomplished through people”.

Managers & Leaders What do managers do? Managers Formulate detailed plans Create efficient org structures Oversee day to day operations Strive to meet established objectives Keep employees productive and efficient Anticipate, avoid, and resolve problems Utilize the org’s resources effectively and efficiently.

Leaders Challenge the ways things are done Create visions of the future Inspire org members to want to perform Are role models, coaches, mentors, & cheerleaders Seek responsibility and accountability Gain the trust of those who become followers MAKE EVERYONE AROUND THEM BETTER!. Managers & Leaders What do Leaders do?

Leaders & Managers “Organizations today must combine the Soul of a leader and the Mind of a Manager” Q. What the heck do I mean by that?.

LEADERSHIP TODAY Organizations Today look for individuals with the MIND of a manager and the SOUL of a leader!.

D EFINING L EADERSHIP The most effective managers over the long term are also leaders!.

Trait Theories “Leaders are born, not made” Leaders possess certain traits: Intelligence, judgment, and verbal ability Past achievement in scholarship & athletics Emotional maturity and stability Dependability, persistence, and drive Social and adaptation skills A desire for status & socioeconomic position

Behavioral Theories “Leaders are made, not born”  Individuals, no matter what their traits are, can be trained to be leaders  It is about how people behave, not how they are wired  If behavioral theories work, then this expands greatly the number of potential leaders every company has (everyone)!

Are Leaders Born or Made? Q. Do you think Leaders are born or made? Take a position and support it with facts, opinions, and/or examples

Are Leaders Born or Made? What the research has shown: While some % of the population have “leadership traits”, Trait Theories have never been proven as a valid approach While people can be taught certain behaviors to increase their leadership effectiveness, the Behavioral Theories falls short because they don’t account for the uniqueness of each situation. As is often the case, the answer is… IT DEPENDS!

Situational Theories “It Depends”  (Perhaps) 15% of people are born with those traits that leaders often have are effective leaders, an additional 70% can be taught to be effective leaders, and 15% will never acquire the necessary traits.  “Successful leadership requires the ideal combination of leaders, followers, and situations” Q. Can anyone provide an example of a scenario you’ve seen or experienced that supports this notion?

SITUATIONAL APPROACHES TO LEADERSHIP Situational Approaches - Successful leadership requires the ideal combination of leaders, followers, and situations.

SITUATIONAL APPROACHES TO LEADERSHIP A. Vroom-Yetton-Jago Model: Successful leadership requires determining which style of leadership will result in decisions that are ideal for the org and will be accepted by the employees. Decision Styles: 1. Autocratic – manager makes the decision alone 2. Consultative – manager gets info and input from employees, then makes the decision alone 3. Group-focused – manager & employees meet, then group makes the decision.

Vroom-Yetton-Jago Model The five decision styles available to a leader according to the Vroom-Yetton-Jago Model.

SITUATIONAL APPROACHES TO LEADERSHIP B. The OSU Studies – says leaders exhibit 2 categories of behavior: Structure behavior – reflects reporting relationships & work procedures Consideration behavior – reflects friendship, respect, trust & warmth There are 4 Fundamental Leadership Styles…use the best style for the situation.

The OSU studies Four fundamental leadership styles based on structure behavior and consideration behavior.

SITUATIONAL APPROACHES TO LEADERSHIP C. Fiedler’s Contingency Theory – other theories say the leader needs to change style to fit the group. This theory says the group must be changed to fit the leader’s style or find a group within the company which fits the leader’s style. D. The Path-Goal Theory of Leadership – managers primary purpose is to make rewards available to employees for achieving organizational goals and to steer employees into pursuing those goals to achieve the rewards..

Is Leadership Just an Attribution? Attribution Theory of Leadership – You only have to look like a leader, not actually achieve anything! Qualities attributed to leaders: Leaders appear intelligent, outgoing, having strong verbal skills, aggressive, and industrious Effective leaders are perceived as consistent and unwavering in their decisions. Effective leaders project a physical appearance that followers are drawn to. Q. Do you agree with this Theory? Attribution Theory of Leadership – You only have to look like a leader, not actually achieve anything! Qualities attributed to leaders: Leaders appear intelligent, outgoing, having strong verbal skills, aggressive, and industrious Effective leaders are perceived as consistent and unwavering in their decisions. Effective leaders project a physical appearance that followers are drawn to. Q. Do you agree with this Theory?

Characteristics of Successful Leaders

Leaders Earn the Trust of Their Followers Integrity is perceived Competence in skills is demonstrated Consistency is shown in handling situations Candor is practiced And as a result, Loyalty is earned.

Leaders Possess & Promote High Ethical Standards Results must be achieved the right way Decisions must balance ethics, business objectives, and the law Leaders must walk the talk They persuade others that decisions are optimal.

Leaders Demonstrate Charisma They articulate their vision They communicate high expectations & express confidence that followers can attain them They convey the values they want their followers to hold and then lead by example They make sacrifices and do whatever it takes to ensure that everyone is on board.

Leaders Have Positive Attitudes Think positive thoughts, do positive things, and surround themselves with positive people Find good in everyone and give the benefit of the doubt They recognize that the most important person to motivate is the leader himself or herself Are high energy, optimistic, and passionate! Recognize and reduce (bad) stress in their life Have a genuinely positive nature; faking it will result in lost credibility.

Leaders Create a Positive Environment They lead by example with their positive attitude coupled with positive actions Leaders know that Synergy (2 + 2 = 5) is a reality! Positive environments generate productivity, stimulate self-actualization, reduce turnover & absenteeism, and attract top quality team additions In the absence of a positive environment, a negative one will take hold.

Leaders Take Smart Risks Appropriate risks must be taken, based upon sufficient research done rapidly They are willing to confront the few to motivate the majority They delegate as much as necessary to allow them to focus on the most important stuff (= trust!).

Leaders Are Decisive They must acquire the right amount of information needed to make a decision They must tap into the right sources for beneficial information “Right or wrong, go strong”.

Leaders Seek Responsibility If something needs to get done, a leader will ask to own it and then will acquire the resources necessary to get it done. Taking on their fair share of the work (and more) earns credibility They know how to delegate old responsibilities in order to take on new ones.

Leaders Are Great Communicators They understand the importance of strong communication skills:  Written: Positive, persuasive, & succinct  Verbal: Positive, confident, & utilize “framing”  Non-verbal: Facial expressions, Body language, & Grooming  Listening skills: Approachable, empathetic, and tuned-in.

Leaders Are Great Team Leaders They serve as troubleshooters They manage conflict – not just eliminate it They Coach team members – teach, support, and motivate They act as liaisons with constituencies outside the team Great leaders can only exist if they have great followers!.

Leaders Chose to Serve as Mentors Listen well & Empathize Share experiences Act as role model Share contacts Provide political guidance “Leaders try to make heroes, not become them”.