Leadership Chapter Twelve Copyright © 2015 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of McGraw-Hill Education.

Learning Objectives LO 1 Discuss what it means to be a leader LO 2 Summarize what people want and what organizations need from their leaders LO 3 Explain how a good vision helps you be a better leader LO 4 Identify sources of power in organizations LO 5 List personal traits and skills of effective leaders 12-2

Learning Objectives (cont.) LO 6 Describe behaviors that will make you a better leader and identify when the situation calls for them LO 7 Distinguish between charismatic and transformational leaders LO 8 Describe types of opportunities to be a leader in an organization LO 9 Discuss how to further your own leadership development 12-3

Leadership  Leader  One who influences others to attain goals.  The greater the number of followers, the greater the influence 12-4

Key Leadership Behaviors 1. Challenge the process 2. Inspire a shared vision 3. Enable others to act 4. Model the way 5. Encourage the heart 12-5

Vision  Vision  A mental image of a possible and desirable future state of the organization. 12-6

Leading and Managing  Supervisory leadership  Behavior that provides guidance, support, and corrective feedback for day-to-day activities.  Strategic leadership  Behavior that gives purpose and meaning to organizations, envisioning and creating a positive future. 12-7

Question ___________ is the ability to influence others. A. Innovation B. Charisma C. Power D. Clout 12-8

Power and Leadership  Power  The ability to influence others. 12-9

Sources of Power Legitimate Reward ExpertReferent Coercive

Sources of Power Figure 12.1

Traditional Approaches to Understanding Leadership  Trait approach  A leadership perspective that attempts to determine the personal characteristics that great leaders share 12-12

Useful Leadership Characteristics Drive Leadership Motivation Integrity Self Confidence Knowledge of the Business

Leader Behaviors  Behavioral approach  A leadership perspective that attempts to identify what good leaders do—that is, what behaviors they exhibit

Leader Behaviors  Task performance behaviors  Actions taken to ensure that the work group or organization reaches its goals

Group Maintenance  Group maintenance behaviors  Actions taken to ensure the satisfaction of group members, develop and maintain harmonious work relationships, and preserve the social stability of the group  Leader-Member Exchange (LMX) theory  Highlights the importance of leader behaviors not just toward the group as a whole but toward individuals on a personal basis

Questions Assessing Task Performance and Group Maintenance Leadership Table 12.1

Question Which leadership philosophy is characterized by an absence of managerial decision making? A. Autocratic B. Democratic C. Laissez-faire D. Egalitarian 12-18

Participation in Decision Making  Autocratic leadership  A form of leadership in which the leader makes decisions on his or her own and then announces those decisions to the group  Democratic leadership  A form of leadership in which the leader solicits input from subordinates

Participation in Decision Making  Laissez-faire  leadership philosophy characterized by an absence of managerial decision making

Leadership Grid Figure 12.2

Situational Approaches to Leadership  Situational approach  Leadership perspective proposing that universally important traits and behaviors do not exist, and that effective leadership behavior varies from situation to situation

The Vroom Model of Leadership  Vroom model  A situational model that focuses on the participative dimension of leadership Figure 12.3

Situational Factors for Problem Analysis Table 12.2

Vroom’s Leader Decision Styles Table 12.3

Fiedler’s Contingency Model  Fiedler’s contingency model of leadership effectiveness  A situational approach to leadership postulating that effectiveness depends on the personal style of the leader and the degree to which the situation gives the leader power, control, and influence over the situation

Fiedler’s Analysis of Situations Figure 12.4

Fiedler’s Contingency Model  Task-motivated leadership  Leadership that places primary emphasis on completing a task.  Relationship- motivated leadership  Leadership that places primary emphasis on maintaining good interpersonal relationships

Hersey and Blanchard’s Situational Theory  Hersey and Blanchard’s situational theory  A life-cycle theory of leadership postulating that a manager should consider an employee’s psychological and job maturity before deciding whether task performance or maintenance behaviors are more important

Hersey and Blanchard’s Situational Theory  Job maturity  The level of the employee’s skills and technical knowledge relative to the task being performed.  Psychological maturity  An employee’s self- confidence and self- respect

Path-Goal Theory  Path-goal theory  A theory that concerns how leaders influence subordinates’ perceptions of their work goals and the paths they follow toward attainment of those goals

The Path-Goal Framework Figure 12.5

Substitutes for Leadership  Substitutes for leadership  Factors in the workplace that can exert the same influence on employees as leaders would provide

Contemporary Perspectives on Leadership  Charismatic leader  A person who is dominant, self-confident, convinced of the moral righteousness of his beliefs, and able to arouse a sense of excitement and adventure in followers

Contemporary Perspectives on Leadership  Transformational leader  A leader who motivates people to transcend their personal interests for the good of the group.  Transactional leaders  Leaders who manage through transactions, using their legitimate, reward, and coercive powers to give commands and exchange rewards for services rendered

Contemporary Perspectives on Leadership  Level 5 leadership  A combination of strong professional will (determination) and humility that builds enduring greatness

Authenticity  Authentic leadership  A style in which the leader is true to himself or herself while leading  Pseudo- transformational leaders  Leaders who talk about positive change but allow their self-interest to take precedence over followers’ needs 12-37

Opportunities for Leaders  Servant-leader  A leader who serves others’ needs while strengthening the organization.  Intergroup leader  A leader who leads collaborative performance between different groups or organizations 12-38

Opportunities for Leaders  Shared leadership  Rotating leadership, in which people rotate through the leadership role based on which person has the most relevant skills at a particular time.  Lateral leadership  Style in which colleagues at the same hierarchical level are invited to collaborate and facilitate joint problem solving

Video: Are U.S. CEO’s worth their salaries?  What accounts for these differences in the wide range of compensation paid to CEOs in Europe, the United Kingdom, and the United States? 12-40