1. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–1 CHAPTER 13 LEADERSHIP

2. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–2 LECTURE OUTLINE How leaders influence others Searching for leadership traits Developing situational theories Promoting innovation: Transformational leadership Are leaders necessary?

3. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–3 LEADERSHIP Process of influencing others to achieve organisational goals.

4. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–4 HOW LEADERS INFLUENCE OTHERS Sources of leadership power: Legitimate power Power stemming from a position’s placement in the managerial hierarchy Reward power Power based on the capacity to provide valued rewards to others Coercive power Power based on the ability to punish others

5. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–5 HOW LEADERS INFLUENCE OTHERS Sources of leadership power (cont.): Expert power Power based on the possession of expertise valued by others Information power Power based on access and control over the distribution of information Referent power Power resulting from being liked, admired or identified with

6. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–6 HOW LEADERS INFLUENCE OTHERS Empowerment supports leadership: Increases manager’s ability to elicit support from subordinates Increase in worker motivation & commitment Decrease in supervisory effort Increase in time spent on non-supervisory management activities

7. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–7 HOW LEADERS INFLUENCE OTHERS Likely reaction to use of power: = Resistance = Compliance = Commitment Referent expert Legitimate information reward Coercion

8. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–8 LEADERSHIP TRAITS Distinctive internal qualities or characteristics of an individual, such as physical and personality characteristics, skills, abilities and social factors.

9. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–9 LEADERSHIP TRAITS Early research identified no common leadership traits Current research is inconclusive Many believe that leadership is about what leaders do rather than about their personal traits

10. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–10 LEADERSHIP BEHAVIOUR Theoretical approach based on the idea that specific behaviours may make some leaders more effective than others.

11. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–11 LEADERSHIP BEHAVIOUR Iowa and Michigan studies: Iowa Looked at leadership styles (autocratic, democratic, laissez faire) Workers preferred democratic style but this was not best for performance Michigan Employee-centred leaders superior to job-centred leaders

12. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–12 LEADERSHIP BEHAVIOUR Ohio State studies: Suggested that the ideal was for leaders to combine job-centredness with an ability to build mutual trust with subordinates

13. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–13 LEADERSHIP BEHAVIOUR Ohio State studies: Two key behaviours identified: Initiating structure Degree to which a leader defines their own role and that of subordinates in terms of achieving unit goals Consideration Degree to which a leader builds mutual trust with subordinates, respects their ideas and shows concern for their feelings

14. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–14 LEADERSHIP GRID 1 2 3 4 5 6 7 8 9 Concern for production Concern for people

15. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–15 LEADERSHIP BEHAVIOUR Gender and cultural differences: Gender There are few substantial differences between male and female leaders. Culture Japanese: group focus, long-term, humanistic European: individual focus, more humanistic than USA USA: individual focus

16. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–16 DEVELOPING SITUATIONAL THEORY Situational theory: Theories of leadership taking into consideration important situational factors

17. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–17 DEVELOPING SITUATIONAL THEORY Fiedler’s contingency theory Effective groups depend on match between a leader’s style of relating with subordinates & the extent to which the situation gives control to the leader. Leader’s style: High member relations leader is concerned with people Task-structure leader reduces ambiguity—‘Do I know what I am supposed to do?’ Position power—how well supported is the leader by his/her superiors?

18. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–18 DEVELOPING SITUATIONAL THEORY Fiedler’s contingency theory Least Preferred Co-worker orientation Assessing the situation Matching leadership style to situation

19. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–19 DEVELOPING SITUATIONAL THEORY Normative leadership model Model that assists leaders assess critical situational factors that affect the extent to which they should involve subordinates in particular decisions. Range of options is from: A1: autocratic decision making to G11: democratic decision making

20. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–20 DEVELOPING SITUATIONAL THEORY Situational leadership model Theory based on the premise that leaders need to alter their behaviours depending on one major situational factor—the readiness of followers.

21. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–21 DEVELOPING SITUATIONAL THEORY Situational leadership model High RELATIONSHIPRELATIONSHIP Low High Task High relationship and low task High task and high relationship Low relationship and low task High task and low relationship Selling Telling Delegating Participating

22. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–22 DEVELOPING LEADERSHIP THEORY Path–goal theory Theory attempting to explain how leader behaviour can positively influence the motivation and job satisfaction of subordinates

23. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–23 DEVELOPING LEADERSHIP THEORY Path–goal theory Leader behaviours Directive leader behaviour Supportive leader behaviour Participative leader behaviour Achievement-oriented leader behaviour Situational factors Subordinate characteristics Context characteristics Choosing leader behaviour to fit above

24. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–24 DEVELOPING LEADERSHIP THEORY Path–goal theory: Leader behaviour Directive Supportive Participative Achievement Leader behaviour Directive Supportive Participative Achievement Environmental contingency factors Task structure, formal authority, work groups Environmental contingency factors Task structure, formal authority, work groups Subordinate contingency factors Personality, experience, abilities, needs Subordinate contingency factors Personality, experience, abilities, needs Outcomes: Performance Satisfaction Outcomes: Performance Satisfaction

25. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–25 PROMOTING INNOVATION: TRANSFORMATIONAL LEADERSHIP Transformational leaders Motivate individuals to perform beyond normal expectations by inspiring subordinates to focus on broader missions transcending their own self-interests

26. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–26 TRANSFORMATIONAL LEADERSHIP Charisma Leadership factor comprising the leader’s ability to inspire pride, faith and respect; to recognise what is really important; and to articulate effectively a sense of mission, or vision, to inspire followers.

27. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–27 TRANSFORMATIONAL LEADERSHIP Motivate others Vision beyond self-interest Seek intrinsic higher-level goals Seek performance beyond expectations Have charisma Key characteristics of transformational leaders Key characteristics of transformational leaders

28. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–28 TEAM LEADERSHIP Performance is a function of ability, mnotivation and opportunity (Huszczo, 2004) Team leaders allow members to perform Motivators and facilitators rather than supervisors

29. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–29 ARE LEADERS NECESSARY? Some argue that leadership’s importance is overrated and in many contexts makes little difference. (Yukl 1989)

30. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–30 ARE LEADERS NECESSARY? Neutralisers: Situational factors preventing leader behaviour from influencing subordinate performance/satisfaction THESE INCLUDE: Subordinate high need for independence Low subordinate valence for available rewards Physical distance of leader from subordinates

31. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–31 ARE LEADERS NECESSARY? Substitutes: Situational factors making the impact of leadership impossible or unnecessary THESE INCLUDE: Satisfying work Able and experienced subordinates Professional orientation of subordinates Routine work, clearly specified methods/feedback

32. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–32 LEADERSHIP & THE ORGANISATIONAL CYCLE Entrepreneurial Collectivity Formalisation & control Formalisation & control Elaboration of structure Elaboration of structure Transformational Transactional Transformational

33. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–33 LECTURE SUMMARY How leaders influence others – Sources of power – Use of power Searching for leadership traits – Inconclusive results Identifying leadership behaviour – Iowa, Michigan, Ohio studies – Leadership styles, employee versus job- centredness

34. Copyright  2008 McGraw-Hill Australia Pty Ltd PPTs t/a Management: A Pacific Rim Focus 5e by Bartol, Tein, Matthews, Sharma Slides prepared by Rob Lawrence, Victoria University (Australia) 13–34 LECTURE SUMMARY cont’d Developing situational theory Fiedler’s contingency model, Normative model, Situational leadership model, Path–goal theory Transformational leadership Charisma, individual consideration and intellectual stimulation Team leadership Growing in importance Are leaders necessary? Neutralisers, substitutes Effects of the organisational life cycle