Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-1 Chapter One Definition and Significance of Leadership

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-2 Learning Objectives  Define leadership and leadership effectiveness  Explain why people need leadership  Discuss the major obstacles to effective leadership  Compare and contrast leadership and management  List the roles and functions of leaders and managers  Summarize the debate over the role and impact of leadership in organizations

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-3 Definition of Leadership A leader is any person who influences individuals and groups within an organization, helps them in the establishment of goals, and guides them towards achievement of those goals, thereby allowing them to be effective.

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-4 Key Elements of Leadership  Group phenomenon – no leaders without followers  Goal-oriented – leaders guide and influence others towards a goal  Existence of hierarchy within the group – the leader recognized as such

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-5 Definition of Leadership Effectiveness Leaders are effective when their followers achieve their goals, function well together, and adapt to the changing demands of external forces.

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-6 Key Elements of Effectiveness  The group achieves its goals  The group members work well together – smooth internal functions  The group can adapt well to external changes

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-7 Why Do We Need Leaders?  To keep groups orderly  To keep focus on group goals  To accomplish complex tasks  To help make sense of the world by providing validation  As a romantic ideal

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-8 Obstacles to Effective Leadership  Environmental uncertainty  Organizational rigidity  Falling back on old ideas and simplistic solutions  Established organizational culture  Inaccessible research

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-9 Leadership and Management Managers  Focus on the present  Maintain the status quo  Implement policy  Maintain existing culture and structure  Remain aloof and objective  Use position power Leaders  Focus on the future  Create change  Initiate policy  Create new culture and structure  Establish emotional bonds with followers  Use personal power

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-10 Managerial Roles  Figurehead  Leader  Liaison  Monitor  Disseminator  Spokesperson  Entrepreneur  Disturbance handler  Resource allocator  Negotiator

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-11 Gender Differences in Roles Male Managers  Unrelenting pace of work  Do a wide variety of tasks  Frequent interruptions  Little time to communicate  Few non-work activities  Isolation  Identity tied to work  Complex network  Prefer face-to-face Female Managers  Calm steady pace of work  Frequent breaks  Did not perceive interruptions  Schedule time for communication  Many non-work activities  Connected to others  Multi-faceted identities  Complex network  Prefer face-to-face

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-12 Leader’s Role in Shaping Culture Role Reward HiringStrategy ModelingSystem Decision Structure Organizational Culture Leader

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-13 Leadership is Insignificant  Environment is more important than leadership  Internal culture and structure determine the course organization takes  Leadership accounts for only 7%-15% of performance in some studies  Leaders have little discretion  Leadership is a romantic myth

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-14 Leadership is Significant  Leadership is one of many important factors  Leaders provide vision and direction  Leaders are critical in orchestrating change  Leadership can account for close to half of performance in some cases  Leaderships’ impact is moderated by situational factors

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-15 The Impact of Leadership  Leadership is one of several key factors in organizational performance  Leaders are essential in providing vision and direction  Leaders’ impact differs in different situations  Followers are also key to success

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-16 New Roles for Leaders Plan Organize Do Control-Oriented LeadershipResult-Oriented Leadership Plan and Organize Plan and Organize Do Control Results Leader assumes responsibility Follower assume responsibility Lead Control Results Lead

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-17 Factors Fueling Change Changes in organizations and their leadership Changes in organizations and their leadership Worldwide political changes Demographic changes Employee expectations Increased globalization

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-18 Diversity in the U.S. Population Hispanic or Latino is not considered a racial factor in the U.S. Census and therefore not included in this chart; 12.5% of the U.S. population is considered Hispanic or Latina Source: U.S. Census Bureau, Census pdf

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-19 U.S. Demographic Trends  In 2000 over 37 million people (13% of the population) spoke a language other than English at home  More than half of the U.S. workforce consists of women and minorities  By 2016, minorities will make up one third of the U.S. population  By 2025, the percentage of European Americans in the population will drop from 72% in 2000 to 62%  By 2025, Hispanics are estimated to be 21% of the population, outnumbering African Americans who will make up 13% of the population

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-20 U.S. Demographic Trends  By 2025, the average age will be close to 40, as opposed to under 35 in 2000  By 2025, more than 50% of the population of Hawaii, California, New Mexico and Texas will be from a minority group  By 2050, only about 60% of the entrants into the labor force will be white, with half that number being women  By 2050, the Hispanic population of the U.S. will grow to 30.25% Source: U.S. Census Bureau, Census 2000:

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-21 Barriers to Change  Perceived financial pressures  Short-term orientation  Top management still focused on one person  Traditional organizations  Employee input and creativity not fully considered  Focus on individual rather than group performance  Traditional management styles

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-22 Leadership Challenge  Challenges for new leaders  Learning new duties  Adapting to new roles  Maintaining old relationships and building new networks  Actions that help  Training  Clear message  Patience  Things to avoid  Over managing – taking charge  Jumping into action too fast – too many changes  Trying to remain “one of the gang”

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-23 Leading Change: The Container Store  Unique culture based on employees and customers  Communication and inclusion are at the heart of leadership  Careful selection and training of employees to fit the culture

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-24 Leadership in Action: Neeleman  Founder of several airlines  Highly creative and entrepreneurial  Focus on treating employees and customers well  Stay close to followers – listen  Nimble organization and leader – able to change

Copyright © 2012 Pearson Education, Inc. publishing as Prentice Hall 1-25 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.