Leadership Unit #1 The Nature of Leadership

Learning Objectives Explain 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 behaviors leaders engage in, and the limitations of the trait and behavioral models of leadership. 14-2

Learning Objectives Explain how contingency models of leadership enhance our understanding of effective leadership and management in organizations. Describe what transformational leadership is, and explain how managers can engage in it. Characterize the relationship between gender leadership. 14-3

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 organizational goals Management - Use of authority inherent in designated formal rank to obtain compliance from organizational members.

Question? What is an individual who is able to exert influence over other people to help achieve group or organizational goals? A.Manager B.Leader C.Chief D.Organizer 14-5

The Nature of Leadership Leader – An individual who is able to exert influence over other people to help achieve group or organizational goals 14-6

The Nature of Leadership Personal Leadership Style – The challenge is for managers at all levels to develop an effective personal management style. 14-7

The Nature of Leadership Distinction between managers and leaders – Managers establish and implement procedures to ensure smooth functioning – Leaders look to the future and chart the course for the organization 14-8

Leader versus Manager Qualities 14-9 MANAGER LEADER Source: Genevieve Capowski, “Anatomy of a Leader: Where Are the Leaders of Tomorrow?” Management Review, March 1994, 12 SOUL Visionary Passionate Creative Flexible Inspiring Innovative Courageous Imaginative Experimental Initiates change Personal power MIND Rational Consulting Persistent Problem solving Tough-minded Analytical Structured Deliberate Authoritative Stabilizing Position power

Leadership Across Cultures Leadership styles may vary among different countries or cultures. – European managers tend to be more people- oriented than American or Japanese managers. – Japanese managers are group-oriented, while U.S managers focuses more on profitability. – Time horizons also are affected by cultures

Sources of Managerial Power Figure 1

Power: The Key to Leadership Legitimate Power – The authority that a manager has by virtue of his or her position in the firm

Power: The Key to Leadership Reward Power – The ability of a manager to give or withhold tangible and intangible rewards. – Effective managers use reward power to signal to employees that they are doing a good job

Power: The Key to Leadership Coercive Power – The ability of a manager to punish others. Examples: verbal reprimand, pay cuts, and dismissal Limited in effectiveness and application; can have serious negative side effects

Power: The Key to Leadership Expert Power – Power that is based on special knowledge, skills, and expertise that the leader possesses. – Tends to be used in a guiding or coaching manner 14-15

Power: The Key to Leadership Referent Power – Power that comes from subordinates’ and coworkers’ respect, admiration, and loyalty – Power based on identification with a person who has desirable resources or personal traits

Empowerment: An Ingredient in Modern Management Empowerment – The process of giving employees at all levels in the organization the authority to make decisions, be responsible for their outcomes, improve quality, and cut costs 14-17

Empowerment: An Ingredient in Modern Management Empowerment increases a manager’s ability to get things done Empowerment increases workers’ involvement, motivation, and commitment Empowerment gives managers more time to concentrate on their pressing concerns 14-18

Unit #2 Leadership Models 14-19

Leadership Models Trait Model – Attempt to identify personal characteristics that cause for 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

14-21 Leadership Traits: Ambition and energyAmbition and energy The desire to leadThe desire to lead Honest and integrityHonest and integrity Self-confidenceSelf-confidence IntelligenceIntelligence High self-monitoringHigh self-monitoring Job-relevant knowledgeJob-relevant knowledge Leadership Traits: Ambition and energyAmbition and energy The desire to leadThe desire to lead Honest and integrityHonest and integrity Self-confidenceSelf-confidence IntelligenceIntelligence High self-monitoringHigh self-monitoring Job-relevant knowledgeJob-relevant knowledge Traits Theories of Leadership Theories that consider personality, social, physical, or intellectual traits to differentiate leaders from nonleaders.

Leadership Models Behavioral Model – Identifies the two basic types of behavior that many leaders engaged in to influence their subordinates Trait theory: Leaders are born, not made.Trait theory: Leaders are born, not made. Behavioral theory: Leadership traits can be taught.Behavioral theory: Leadership traits can be taught. Trait theory: Leaders are born, not made.Trait theory: Leaders are born, not made. Behavioral theory: Leadership traits can be taught.Behavioral theory: Leadership traits can be taught.

Leadership Models Behavioral Model – Consideration: leaders show subordinates they trust, respect, and care about them – Managers look out for the well-being of their subordinates – Do what they can to help subordinates feel good and enjoy the work they perform 14-23

Leadership Models Behavioral Model – Initiating structure: leaders take steps to make sure that work gets done, subordinates perform their work acceptably, and the organization is efficient and effective – Managers assign tasks to groups and let subordinates know what is expected of them 14-24

Leadership Grid High Low Concern for Production Concern for People 1,9 Country Club Management Thoughtful attention to the needs of people for satisfying relationships leads to a com- fortable, friendly organization atmosphere and work tempo. Impoverished Management Exertion of minimum effort to get required work done is appropriate to sustain organization membership. 1,1 9,9 Team Management Work accomplishment is from committed people; interdependence through a “common stake” in organization purpose leads to relationships of trust and respect. 5,5 Middle-of-the-Road Management Adequate organization performance is possible through balancing the necessity to get out work with maintaining morale of people at a satisfactory level. Authority-Compliance Efficiency in operations results from arranging conditions of work in such a way that human elements interfere to a minimum degree. 9,1 Figure 1

The Leadership Grid (Blake and Mouton) Figure 2

Black and Mouton’s Managerial and leadership grid 14-27

Contingency Models of Leadership Contingency Models – What makes a manager an effective leader in one situation is not necessarily what that manager needs to be equally effective in another situation 14-28

Contingency Models of Leadership Contingency Models – Whether or not a manager is an effective leader is the result of the interplay between what the manager is like, what he does, and the situation in which leadership takes place 14-29

Contingency Models of Leadership Fiedler’s Model – Effective leadership is contingent on both the characteristics of the leader and of the situation

Contingency Models of Leadership Fiedler’s Model – Relationship-oriented style: leaders concerned with developing good relations with their subordinates and to be liked by them. (employee- oriented) – Task-oriented style: leaders whose primary concern is to ensure that subordinates perform at a high level so the job gets done. (production-oriented)

Fiedler’s Model Situation Characteristics – Leader-member relations – extent to which followers like, trust, and are loyal to their leader – Task structure – extent to which the work to be performed is clear-cut so that a leader’s subordinates know what needs to be accomplished and how to go about doing it 14-32

Fiedler’s Model Situation Characteristics – 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 favorable

Fiedler’s Contingency Theory of Leadership Figure 3

House’s Path-Goal Theory A contingency model of leadership proposing that effective leaders can motivate subordinates to achieve goals by: 1.Clearly identifying the outcomes that subordinates are trying to obtain from their jobs. 2.Rewarding subordinates with these outcomes for high-performance and attainment of work goals 3.Clarifying the paths leading to the attainment of work goals 14-35

Question? Which leadership behavior gives subordinates a say in matters that affect them? A.Directive behavior B.Supportive behavior C.Participative behavior D.Achievement-oriented behavior 14-36

Path-Goal Theory Path-Goal Theory The theory that it is the leader’s job to assist followers in attaining their goals and to provide them the necessary direction and/or support to ensure that their goals are compatible with the overall objectives of the group or organization.

Path-Goal Theory Leaders Behaviors  Supportive leadership: …Leader behavior that shows concern for subordinates …Open, friendly, and approachable …Creates a team climate …Treats subordinates as equals  Directive leadership: …Tells subordinates exactly what they are supposed to do …Planning, making schedules, setting performance goals, and behavior standards  Participative leadership: …Consults with his or her subordinates about decisions  Achievement-oriented leadership: …Sets clear and challenging goals for subordinates …Behavior stresses high-quality performance 14-38

Motivating with Path-Goal Which behavior to be used depends on the nature of the subordinates and the kind of work they do 14-39

Path-Goal Situations & Preferred Leader Behavior Source: Adapted from Gary A. Yukl, Leadership in Organizations (Englewood Cliffs, N.J.: Prentice-Hall, 1981), Figure 4

Path Goal Theory Source: Based on Bernard M. Bass, “Leadership: Good, Better, Best,” Organizational Dynamics 13 (Winter 1985), Figure 5

Discussion Question Which leadership model is the most effective? A.Trait model B.Behavior model C.Fiedler’s model D.Path-goal theory 14-42

The Leader Substitutes Model Leadership Substitute – Acts in the place of a leader and makes leadership unnecessary. – Worker empowerment or self-managed work teams reduce leadership needs

The Leader Substitutes Model Possible substitutes can be found in: – Characteristics of the subordinates: their skills, experience, motivation. – Characteristics of context: the extent to which work is interesting and fun

Transformational Leadership Leadership that: 1.Makes subordinates aware of the importance of their jobs are for the organization and how necessary it is for them to perform those jobs as best they can so that the organization can attain its goals 14-45

Transformational Leadership 2.Makes subordinates aware of their own needs for personal growth, development, and accomplishment 3.Motivates workers to work for the good of the organization, not just for their own personal gain or benefit 14-46

Being a Charismatic Leader Charismatic Leader – An enthusiastic, self-confident transformational leader able to clearly communicate his vision of how good things could be 14-47

Being a Charismatic Leader Charismatic Leader – 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

Intellectual Stimulation – Manager leads subordinates to view problems as challenges that they can and will meet and conquer – Manager engages and empowers subordinates to take personal responsibility for helping to solve problems 14-49

Developmental Consideration – Manager supports and encourages subordinates, giving them opportunities to enhance their skills and capabilities and to grow and excel on the job 14-50

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

Transformational Leadership Elements 1. Create a strategic vision – Depiction of company’s attractive future motivates and bonds employees – Leader champions the vision 2. Communicate the vision – Frame message around a grand purpose – Create a shared mental model of the future – Use symbols and metaphors

Transformational Leadership Elements (con’t) 3.Model the vision – Walk the talk – Symbolize/demonstrate the vision through behavior – Builds employee trust in the leader 4.Build commitment to the vision – Increased through communicating and modeling the vision – Increased through employee involvement in shaping the shared vision 14-53

Transformational vs. Transactional Leaders Transformational leaders – Leading -- changing the organization to fit environment – Change agents Transactional leaders – Managing – achieving current objectives more efficiently link job performance to rewards ensure employees have necessary resources – Relates to contingency leadership theories (e.g. path-goal)

Gender and Leadership The number of women managers is rising but is still relatively low in the top levels of management. Stereotypes suggest women are supportive and concerned with interpersonal relations. Similarly, men are seen as task-focused

Gender and Leadership 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.(Participative leadership style is used more often by female leaders.) 14-56

Gender Issues in Leadership Male and female leaders have similar task- and people-oriented leadership. Evaluating female leaders – Still receive negative evaluations as leader due to prototypes and gender stereotypes – They are good at emerging leadership styles (coaching, teamwork) 14-57

Emotional Intelligence and Leadership The Moods of Leaders: – Groups whose leaders experienced positive moods had better coordination – Groups whose leaders experienced negative moods exerted more effort 14-58

Emotional Intelligence and Leadership Emotional Intelligence refers to the ability to perceive, control and evaluate emotions. Some researchers suggest that emotional intelligence can be learned and strengthened, while others claim it is an inborn characteristic

The importance of Emotional Intelligence – Helps leaders develop a vision for their firm. – Helps motivate subordinates to commit to the vision. – Energizes subordinates to work to achieve the vision

End of Unit