Chapter 14 Leadership Copyright © 2012 Pearson Education Canada Inc.14-1

Learning Outcomes: 1.Define leader and leadership. 2.Compare and contrast early theories of leadership. 3.Describe the three major contingency theories of leadership. Copyright © 2012 Pearson Education Canada Inc.14-2

Learning Outcomes: 4.Describe modern views of leadership. 5.Discuss contemporary issues affecting leadership. Copyright © 2012 Pearson Education Canada Inc.14-3

Who Are Leaders, and What Is Leadership? Copyright © 2012 Pearson Education Canada Inc. Leaders: A person who can influence others and provide vision and strategy to the organization. Leadership: The process of influencing individuals or groups toward the achievement of goals. 14-4

Trait Theories (1920s–30s) Research that focused on identifying personal characteristics that differentiated leaders from non- leaders was unsuccessful. Later research on the leadership process identified seven traits associated with successful leadership Early Leadership Theories Copyright © 2012 Pearson Education Canada Inc.14-5

Exhibit 14-1 Seven Traits Associated with Leadership 1.Drive 2.Desire to lead 3.Honesty and integrity 4.Self-confidence 5.Intelligence 6.Job-relevant knowledge 7.Extraversion Copyright © 2012 Pearson Education Canada Inc.14-6

Behavioural Theories 1. University of Iowa Studies (Kurt Lewin) Identified three leadership styles: Autocratic style: centralized authority, low participation Democratic style: involvement, high participation, feedback Laissez-faire style: hands-off management Research findings: mixed results No specific style was consistently better for producing better performance. Employees were more satisfied under a democratic leader than an autocratic leader. Early Leadership Theories Copyright © 2012 Pearson Education Canada Inc.14-7

2. Ohio State Studies Identified two dimensions of leader behaviour Initiating structure: the role of the leader in defining his or her role and the roles of group members. Consideration: the leader’s mutual trust and respect for group members’ ideas and feelings. Research findings: mixed results High-high leaders generally, but not always, achieved high group task performance and satisfaction. Evidence indicated that situational factors appeared to strongly influence leadership effectiveness. Early Leadership Theories Copyright © 2012 Pearson Education Canada Inc.14-8

3. University of Michigan Studies Identified two dimensions of leader behaviour Employee oriented: emphasizing personal relationships. Production oriented: emphasizing task accomplishment. Research findings: Leaders who are employee oriented are strongly associated with high group productivity and high job satisfaction. Early Leadership Theories Copyright © 2012 Pearson Education Canada Inc.14-9

Exhibit 14-2 Behavioural Theories of Leadership Copyright © 2012 Pearson Education Canada Inc.14-10

4. Managerial Grid: Appraises leadership styles using two dimensions: Concern for people Concern for production Early Leadership Theories Copyright © 2012 Pearson Education Canada Inc.14-11

Exhibit 14-3 The Managerial Grid Copyright © 2012 Pearson Education Canada Inc. Source: Reprinted by permission of Harvard Business Review. An exhibit from “Breakthrough in Organization Development” by Robert R. Blake, Jane S. Mouton, Louis B. Barnes, and Larry E. Greiner, November– December 1964, p Copyright © 1964 by the President and Fellows of Harvard College. All rights reserved

The Fiedler Model Effective group performance depends upon the match between the leader’s style of interacting with followers and the degree to which the situation allows the leader to control and influence Assumptions: Different situations require different leadership styles Leaders do not readily change leadership styles – Matching the leader to the situation or changing the situation to make it favourable to the leader is required Contingency Theories of Leadership Copyright © 2012 Pearson Education Canada Inc.14-13

Fiedler’s Research Three contingency dimensions that defined the key situational factors in leader effectiveness: 1.Leader–member relations - The degree of confidence, trust, and respect employees had for their leader; rated as either good or poor. 2.Task structure - The degree to which job assignments were formalized and structured; rated as either high or low. 3.Position power - The degree of influence a leader had over activities such as hiring, firing, discipline, promotions, and salary increases; rated as either strong or weak. Contingency Theories of Leadership Copyright © 2012 Pearson Education Canada Inc.14-14

Exhibit 14-4 The Fiedler Model Copyright © 2012 Pearson Education Canada Inc

Hersey and Blanchard’s Situational Leadership® Theory Successful leadership is achieved by selecting a leadership style that matches the level of the followers’ readiness  Acceptance: do followers accept or reject a leader?  Readiness: do followers have the ability and willingness to accomplish a specific task? Leaders must give up control as followers become more competent. Contingency Theories of Leadership Copyright © 2012 Pearson Education Canada Inc.14-16

Contingency Theories of Leadership Copyright © 2012 Pearson Education Canada Inc.14-17

Contingency Theories of Leadership Path-Goal Model Leader’s job is to assist his or her followers in achieving organizational goals. Leader’s style depends on the situation: Directive Supportive Participative Achievement-oriented Copyright © 2012 Pearson Education Canada Inc.14-18

Exhibit 14-6 Path-Goal Theory Copyright © 2012 Pearson Education Canada Inc. Environmental Contingency Factors TaskStructure Formal Authority System Work Group Subordinate Contingency Factors Locusof Control Experience Perceived Ability Leader Behaviour Directive Supportive Participative Achievement Oriented Outcomes Performance Satisfaction 14-19

Transactional Leadership: Leaders who guide or motivate their followers in the direction of established goals by clarifying role and task requirements. Transformational Leadership: Leaders who inspire followers to go beyond their own self-interests for the good of the organization Leaders who have a profound and extraordinary effect on their followers. Contemporary Views of Leadership Copyright © 2012 Pearson Education Canada Inc.14-20

How to be a Transformational Leader Individualized consideration: Pay attention to the needs of individual followers to help them reach their full potential. Intellectual stimulation: Provide “ways and reasons for followers to change the way they think about” things. Inspirational motivation: “Set an example of hard work, give ‘pep’ talks, [and] remain optimistic in times of crisis.” Idealized influence: Show respect for others, building confidence and trust about the mission in followers. Contemporary Views of Leadership Copyright © 2012 Pearson Education Canada Inc.14-21

Contemporary Views of Leadership Charismatic Leadership: An enthusiastic, self-confident leader whose personality and actions influence people to behave in certain ways. Copyright © 2012 Pearson Education Canada Inc.14-22

Characteristics of Charismatic leaders: Have a vision Are able to articulate the vision Are willing to take risks to achieve the vision Are sensitive to the environment and to follower needs Exhibit behaviours that are out of the ordinary Contemporary Views of Leadership Copyright © 2012 Pearson Education Canada Inc.14-23

Contemporary Views of Leadership Visionary Leadership: A leader who creates and articulates a realistic, credible, and attractive vision of the future that improves upon the present situation. Visionary leaders have the ability to: Explain the vision to others Express the vision not just verbally but through behaviour Extend or apply the vision to different leadership contexts Copyright © 2012 Pearson Education Canada Inc.14-24

Contemporary Views of Leadership Team Leadership Characteristics  Having patience to share information  Being able to trust others and to give up authority  Understanding when to intervene Team Leader’s Job  Managing the team’s external boundary  Facilitating the team process Coaching, facilitating, handling disciplinary problems, reviewing team and individual performance, training, and communicating Copyright © 2012 Pearson Education Canada Inc.14-25

Exhibit 14-7 Team Leadership Roles Copyright © 2012 Pearson Education Canada Inc. Team Leader Roles Liaison with External Constituencies Coach Conflict Manager Troubleshooter 14-26

Managing Power: 1. Legitimate power  The power a leader has as a result of his or her position. 2. Coercive power  The power a leader has to punish or control. 3. Reward power  The power to give positive benefits or rewards. Leadership Issues in the Twenty-First Century Copyright © 2012 Pearson Education Canada Inc

Leadership Issues in the Twenty-First Century 4. Expert power  The influence a leader can exert as a result of his or her expertise, skills, or knowledge. 5. Referent power  The power of a leader that arises because of a person’s desirable resources or admired personal traits. Copyright © 2012 Pearson Education Canada Inc

Empowering Employees Empowerment: Involves increasing the decision-making discretion of workers Why empower employees? Quicker responses to problems and faster decisions Relieves managers to work on other problems Leadership Issues in the Twenty-First Century Copyright © 2012 Pearson Education Canada Inc.14-29

Empowerment Cautions: The following conditions should be met for empowerment to be introduced: Clear definition of company’s values and mission Employees have relevant skills Employees need to be supported, not criticized, when performing Employees need to be recognized for their efforts Leadership Issues in the Twenty-First Century Copyright © 2012 Pearson Education Canada Inc.14-30

Leading Across Cultures National culture is an important situational variable in determining which leadership style will be most effective. Leadership Issues in the Twenty-First Century Copyright © 2012 Pearson Education Canada Inc.14-31

Leadership Issues in the Twenty-First Century Becoming an Effective Leader Can Anyone Be a Leader?  Some people don’t have what it takes to be a leader  Some people are more motivated to lead than others Is Leadership Always Necessary?  Some people don’t need leaders  Leaders need to be aware of followers’ needs Copyright © 2012 Pearson Education Canada Inc.14-32