Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-1 Chapter 6 Managing leadership

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-2 Learning objectives After studying the chapter, you should be able to: Describe what leadership is, when leaders are effective and ineffective and the sources of power that enable managers to be effective leaders Identify the traits that show the strongest relationship to leadership, the behaviours leaders engage in, and the limitations of the trait and behaviour models of leadership

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-3 Learning objectives (cont.) Explain how contingency models of leadership enhance our understanding of effective leadership and management in organisations Describe what transformational leadership is, and explain how managers can engage in it Characterise the relationship between gender and leadership

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-4 Overview Leading is one of the four primary management tasks Effective leadership is a key ingredient for success Leadership capacity of managers can be improved Trait, behaviour, contingency and transformational models of leadership are aspects to consider

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-5 The nature of leadership Leadership –The process by which a person exerts influence over others and inspires, motivates and directs their activities to achieve group or organisational goals  Effective leadership increases the firm’s ability to meet new challenges Leader –An individual who is able to exert influence over other people to help achieve group or organisational goals

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-6 The nature of leadership (cont.) Personal leadership style –The specific ways in which a manager chooses to influence others shapes the way that manager approaches the other tasks of management  Leaders may delegate and support subordinates, while others are very authoritarian –The challenge is for managers at all levels to develop an effective personal management style

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-7 Leadership styles across cultures Leadership styles may vary among different countries or cultures –European managers tend to be more people-oriented than managers in the United States (US) or Japan –Japanese managers are group-oriented, while US managers focus more on profitability –Australia and Europe have a more individualistic orientation than Japan –Time horizons also are affected by cultures, with the US (and now Australia) more short term and Japanese longer term

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-8 Sources of managerial power

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-9 Power: the key to leadership Legitimate power –The authority that a manager has by virtue of his or her position in the firm  Example: the power to hire or fire employees Reward power –The ability of a manager to give or withhold tangible and intangible rewards  Example: awarding pay raises or providing verbal praise for good performance –Effective managers use reward power to signal to employees that they are doing a good job

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-10 Power: the key to leadership (cont.) Coercive power –The ability of a manager to punish others  Examples: verbal reprimand, pay cuts, dismissal  Limited in effectiveness and application; can have serious negative side effects Expert power –Power that is based on special knowledge, skills and expertise that the leader possesses  First-line and middle managers have the most expert power; most often consists of technical ability

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-11 Power: the key to leadership (cont.) Referent power –Power that comes from subordinates’ and coworkers’ respect for the personal characteristics of a leader which earns their respect, loyalty and admiration –Usually held by and available for use by likable managers who are concerned about their workers Information power –Similar to expert power, it is based on controlling the information needed by others in order to reach an important decision

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-12 Using different power gets different results French & Raven, pioneer power researchers Suggested that use of power from different sources produces different outcomes

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-13 Empowerment: an ingredient in modern management Empowerment –The process of giving workers at all levels more authority to make decisions and the responsibility for their outcomes –Helps managers  get workers involved in the decisions  increase worker commitment and motivation  have time to focus on other issues

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-14 Leadership models Trait model –Attempted to identify personal characteristics that cause effective leadership  Research shows that certain personal characteristics do appear to be connected to effective leadership  Many ‘traits’ are the result of skills and knowledge and effective leaders do not necessarily possess all of these traits

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-15 Leadership models (cont.) Behavioural model –Identifies the two basic types of behaviour that many leaders engaged in to influence their subordinates  Consideration: employee-centred leadership behaviour indicating that a manager trusts, respects and cares about subordinates  Initiating structure: job-oriented leadership behaviour that managers engage in to ensure that work gets done, subordinates perform their jobs acceptably and the organisation is efficient and effective –Both behaviours are independent; managers can be high or low on both behaviours

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-16 Contingency models of leadership Fiedler’s model –Effective leadership is contingent on both the characteristics of the leader and of the situation –Leader style is the enduring, characteristic approach to leadership that a manager uses and does not readily change  Relationship-oriented style: leaders concerned with developing good relations with their subordinates and to be liked by them  Task-oriented style: leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-17 Fiedler’s model Situation characteristics –How favourable a situation is for leading to occur –Leader–member relations: determines how much workers like and trust their leader –Task structure: the extent to which workers’ tasks are clear-cut; clear issues make a situation favourable for leadership –Position power: the amount of legitimate, reward and coercive power leaders have due to their position; when positional power is strong, leadership opportunity becomes more favourable

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-18 Fiedler’s contingency theory of leadership

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-19 Fiedler’s model in application Combines considerations of leader–member relations, task structure and position power to identify leadership situations –Identifies situations where given types of managers might perform best –Leader style is a characteristic managers cannot change; managers will be most effective when  they are placed in situations that suit their leader style  the situation can be changed to fit the manager’s leader style

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-20 House’s path–goal theory A contingency model of leadership proposing that effective leaders can motivate subordinates by 1.clearly identifying the outcomes workers are trying to obtain from their jobs 2.rewarding workers for high performance and goal attainment with the outcomes they desire 3.clarifying the paths to the attainment of the goals, removing obstacles to performance and expressing confidence in the ability of workers

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-21 Motivating with path-goal Path-Goal identifies four leadership behaviours 1.Directive behaviours: set goals, assign tasks, show how to do things 2.Supportive behaviour: look out for the worker’s best interest 3.Participative behaviour: give subordinates a say in matters that affect them 4.Achievement-oriented behaviour: setting very challenging goals, believing in worker’s abilities

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-22 Motivating with path–goal (cont.) Which behaviour to use depends on the nature of the subordinates and the tasks It is contingent on the nature of subordinates and the kind of work they do

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-23 Comparing contingency models

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-24 Transformational leadership Leadership that –makes subordinates aware of the importance of their jobs and performance to the organisation by providing feedback to the worker –makes subordinates aware of their own needs for personal growth and development –motivates workers to work for the good of the organisation, not just themselves

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-25 Charismatic leaders Enthusiastic, self-confident, transformational leaders able to clearly communicate their vision of how good things could be by –being excited and clearly communicating excitement to subordinates –openly sharing information with employees so that everyone is aware of problems and the need for change –empowering workers to help with solutions –engaging in the development of employees by working hard to help them build skills

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-26 Transactional leadership Transactional leaders –Use their reward and coercive powers to encourage high performance—they exchange rewards for performance and punish failure –Push subordinates to change but do not seem to change themselves –Do not have the ‘vision’ of the transformational leader

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-27 Intellectual stimulation Behaviour a leader engages in to make followers aware of problems and get them to view these problems in new ways, consistent with the leader’s vision

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-28 Developmental consideration Behaviour a leader engages in to support and encourage followers and help them develop and grow on the job

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-29 Gender and leadership The number of women managers is rising but seriously under-represented in senior levels Stereotypes suggest women are supportive and concerned with interpersonal relations Similarly, men are seen as task-focused –Research indicates that actually there is no gender- based difference in leadership effectiveness –Women are seen to be more participative than men because they adopt the participative approach to overcome subordinate resistance to them as managers and they have better interpersonal skills

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-30 Emotional intelligence and leadership The moods of leaders –Affect their behaviour and effectiveness as leaders –Affect the performance of their subordinates Emotional Intelligence (EI) –Helps leaders develop a vision for their firm –Helps motivate subordinates to commit to the vision –Energises subordinates to work to achieve the vision

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-31 Summary Leadership is a process of influence that inspires, motivates and directs activities to achieve goals Leaders have five types of power available to them Managers use empowerment as a tool to increase effectiveness Trait model describes personal characteristics contributing to effective leadership Behaviour model describes two leader behaviours: consideration and initiating structure

Copyright  2007 McGraw-Hill Australia Pty Ltd PPTs t/a Contemporary Management by Waddell, Devine, Jones & George By John Dugas 6-32 Summary (cont.) Fiedler’s contingency model helps explain why leaders can be effective or ineffective in different situations House’s path–goal theory describes how goal setting is motivatory Transformational leadership inspires and energises subordinates Transformational leaders may become charismatic