PowerPoint Presentation to Accompany Chapter 13 of Management, 8/e John R. Schermerhorn, Jr. Prepared by: Michael K. McCuddy Valparaiso University Published by: John Wiley & Sons, Inc.

Study Question 1: What is the nature of leadership? The process of inspiring others to work hard to accomplish important tasks. Contemporary leadership challenges: Shorter time frames for accomplishing things. Expectations for success on the first attempt. Complex, ambiguous, and multidimensional problems. Taking a long-term view while meeting short-term demands. Management 8/e - Chapter 13

Study Question 1: What is the nature of leadership? Visionary leadership. Vision A future that one hopes to create or achieve in order to improve upon the present state of affairs. Visionary leadership A leader who brings to the situation a clear and compelling sense of the future as well as an understanding of the actions needed to get there successfully. Management 8/e - Chapter 13

Managerial Power Equation Position Power Personal Power = + Rewards Punishments Legitimacy Expertise Reference Management 8/e - Chapter 13

Study Question 1: What is the nature of leadership? Meeting the challenges of visionary leadership: Challenge the process. Show enthusiasm. Help others to act. Set the example. Celebrate achievements. Management 8/e - Chapter 13

Study Question 1: What is the nature of leadership? Power and influence are affected by workplace structures and networks: Centrality. Criticality. Visibility. Management 8/e - Chapter 13

Study Question 1: What is the nature of leadership? Leadership and empowerment. Empowerment. The process through which managers enable and help others to gain power and achieve influence. Effective leaders empower others by providing them with: Information. Responsibility. Authority. Trust. Management 8/e - Chapter 13

Study Question 1: What is the nature of leadership? How leaders can empower others: Involve others is selecting their work assignments and task methods. Create an environment of cooperation, information sharing, discussion, and shared ownership of goals. Encourage others to take initiative, make decisions, and use their knowledge. Find out what others think and let them help design solutions. Give others the freedom to put their ideas and solutions into practice. Recognize successes and encourage high performance. Management 8/e - Chapter 13

Management 8/e - Chapter 13 Study Question 2: What are the important leadership traits and behaviors? Leadership behavior … Leadership behavior theories focus on how leaders behave when working with followers. Leadership styles are recurring patterns of behaviors exhibited by leaders. Basic dimensions of leadership behaviors: Concern for the task to be accomplished. Concern for the people doing the work. Management 8/e - Chapter 13

Management 8/e - Chapter 13 Study Question 2: What are the important leadership traits and behaviors? Task concerns Plans and defines work to be done. Assigns task responsibilities. Sets clear work standards. Urges task completion. Monitors performance results. People concerns Acts warm and supportive toward followers. Develops social rapport with followers. Respects the feelings of followers. Is sensitive to followers’ needs. Shows trust in followers. Management 8/e - Chapter 13

Management 8/e - Chapter 13 Study Question 2: What are the important leadership traits and behaviors? Blake and Mouton Leadership Grid Team management. High task concern; high people concern. Authority-obedience management. High task concern; low people concern. Country club management. High people concern; low task concern. Impoverished management. Low task concern; low people concern. Middle of the road management. Non-committal for both task concern and people concern. Management 8/e - Chapter 13

Blake & Mouton’s Leadership Grid High Autocratic leader “High-High” Democratic leader Concern for Task Laissez-faire leader Human relations leader Low Low High Concern for People Management 8/e - Chapter 13

Management 8/e - Chapter 13 Study Question 2: What are the important leadership traits and behaviors? Classic leadership styles: Autocratic style. Emphasizes task over people, keeps authority and information within the leader’s tight control, and acts in a unilateral command-and-control fashion. Laissez-faire style. Shows little concern for task, lets the group make decisions, and acts with a “do the best you can and don’t bother me” attitude. Democratic style. Committed to task and people, getting things done while sharing information, encouraging participation in decision making, and helping people develop skills and competencies. Management 8/e - Chapter 13

Study Question 3: What are the contingency theories leadership? Fiedler’s contingency model. Good leadership depends on a match between leadership and situational demands. Leadership is part of one’s personality, and therefore relatively enduring and difficult to change. Leadership style must be fit to the situation. Management 8/e - Chapter 13

Study Question 3: What are the contingency theories leadership? Fiedler’s contingency model (cont.). Diagnosing situational control: Quality of leader-member relations (good or poor). Degree of task structure (high or low). Amount of position power (strong or weak). Task oriented leaders are most successful in: Very favorable (high control) situations. Very unfavorable (low control) situations. Relationship-oriented leaders are most successful in: Situations of moderate control. Management 8/e - Chapter 13

Schermerhorn’s “Spin” on Fiedler Task oriented leader Diane her “stretch” Note: Each of us exists on a vector describing a predominate leadership orientation. With discipline we can extend the range of our leadership activities. Dave his “stretch” People oriented leader Management 8/e - Chapter 13

Study Question 3: What are the contingency theories leadership? Substitutes for leadership. Aspects of the work setting and the people involved that can reduce the need for a leader’s personal involvement. Possible leadership substitutes: Subordinate characteristics. Task characteristics. Organizational characteristics. Management 8/e - Chapter 13

Study Question 3: What are the contingency theories leadership? Vroom-Jago leader-participation theory. Helps leaders choose the method of decision making that best fits the nature of the problem situation. Basic decision-making choices: Authority decision. Consultative decision. Group decision. Management 8/e - Chapter 13

Study Question 3: What are the contingency theories leadership? According to Vroom-Jago leader-participation theory, a leader should use authority-oriented decision methods when … The leader has greater expertise to solve a problem. The leader is confident and capable of acting alone. Others are likely to accept and implement the decision. Little or no time is available for discussion. Management 8/e - Chapter 13

Study Question 3: What are the contingency theories leadership? According to Vroom-Jago leader-participation theory, a leader should use group-oriented and participative decision methods when … The leader lacks sufficient information to solve a problem by himself/herself. The problem is unclear and help is needed to clarify the situation. Acceptance of the decision and commitment by others is necessary for implementation. Adequate time is available for true participation. Management 8/e - Chapter 13

Study Question 3: What are the contingency theories leadership? Benefits of participative decision methods: Help improve decision quality. Help improve decision acceptance. Helps develop leadership potential. Potential disadvantages of participative decision methods: Lost efficiency. Not particularly useful when problems must be solved immediately. Management 8/e - Chapter 13

Study Question 4: What is transformational leadership? Someone who is truly inspirational as a leader and who arouses others to seek extraordinary performance accomplishments. Management 8/e - Chapter 13

Study Question 4: What is transformational leadership? Characteristics of transformational leaders: Vision. Charisma. Symbolism. Empowerment. Intellectual stimulation. Integrity. Management 8/e - Chapter 13

Study Question 5: What are current issues in leadership development? Emotional intelligence. The ability of people to manage themselves and their relationships effectively. Components of emotional intelligence: Self-awareness. Self-regulation. Motivation. Empathy. Social skill. Management 8/e - Chapter 13

Study Question 5: What are current issues in leadership development? Drucker’s “old-fashioned” leadership. Leadership is more than charisma; it is “good old-fashioned” hard work. Essentials of “old-fashioned” leadership: Defining and establishing a sense of mission. Accepting leadership as a “responsibility” rather than a rank. Earning and keeping the trust of others. Management 8/e - Chapter 13

Study Question 5: What are current issues in leadership development? Moral leadership. Ethical leadership adheres to moral standards meeting the test of “good” rather than “bad” and “right” rather than “wrong.” All leaders are expected to maintain high ethical standards. Long-term, sustainable success requires ethical behavior. Integrity involves the leader’s honesty, credibility, and consistency in putting values into action. Management 8/e - Chapter 13

Study Question 5: What are current issues in leadership development? Moral leadership (cont.). Leaders with integrity earn the trust of their followers. Leaders have a moral obligation to build performance capacities by awakening people’s potential. Authentic leadership activates performance through the positive psychological states of confidence, hope, optimism, and resilience. Authentic leadership helps in clearly framing and responding to moral dilemmas, and serving as ethical role models. Management 8/e - Chapter 13

CHAPTER 4: Study Question 4: What is organizational culture? Organizational culture is the system of shared beliefs and values that develops within an organization and guides the behavior of its members. Management 8/e - Chapter 13

s.c.o.r.e.s – How to Read Organizational Culture S – How tight or loose is the structure?- C – Are decisions change oriented? O – What outcomes are most valued? R – What is the climate for risk taking? E – How widespread is empowerment? S – What is the competitive style? Management 8/e - Chapter 13 4.2

CHAPTER 4: Study Question 4: What is organizational culture? Strong cultures: Commit members to do things that are in the best interests of the organization. Discourage dysfunctional work behavior. Encourage functional work behavior. The best organizations have strong cultures that: Are performance-oriented. Emphasize teamwork. Allow for risk taking. Encourage innovation. Value the well being of people. Management 8/e - Chapter 13

CHAPTER 4: Study Question 4: What is organizational culture? What is observable culture? What one sees and hears when walking around an organization. Elements of observable culture: Stories Heroes Rites and rituals Symbols Management 8/e - Chapter 13

CHAPTER 4: Study Question 4: What is organizational culture? What is the core culture? Underlying assumptions and beliefs that influence behavior and contribute to the observable culture. Core culture and values: Strong cultures have a small but enduring set of core values. Commitment to core values is a key to long-term success. Management 8/e - Chapter 13

CHAPTER 4: Study Question 4: What is organizational culture? Important cultural values include: Performance excellence Innovation Social responsibility Integrity Worker involvement Customer service Teamwork Management 8/e - Chapter 13

CHAPTER 4: Study Question 4: What is organizational culture? Value-based management: Describes managers who actively help to develop, communicate, and enact shared values. Criteria for evaluating core values: Relevance Integrity Pervasiveness Strength Management 8/e - Chapter 13

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