1. Copyright © 2005 Houghton Mifflin Company. All rights reserved. PowerPoint Presentation by Charlie Cook. Chapter Eleven Leadership and Influence Processes

2. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–2 Chapter Outline The Nature of Leadership –The Meaning of Leadership –Leadership and Management –Leadership and Power Generic Approaches to Leadership –Leadership Traits –Leadership Behaviors Situational Approaches to Leadership –LPC Theory –Path-Goal Theory –Vroom’s Decision Tree Approach –The Leader-Member Exchange Approach

3. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–3 Chapter Outline (cont’d) Related Approaches Leadership –Substitutes for Leadership –Charismatic Leadership –Transformational Leadership Emerging Approaches to Leadership –Strategic Leadership –Cross-Cultural Leadership –Ethical Leadership Political Behavior in Organizations –Common Political Behaviors –Impression Management –Managing Political Behaviors

4. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–4 Learning Objectives After studying this chapter, you should be able to: –Describe the nature of leadership and relate leadership to management. –Discuss and evaluate the two generic approaches to leadership. –Identify and describe the major situational approaches to leadership. –Identify and describe three related approaches to leadership. –Describe three emerging approaches to leadership. –Discuss political behavior in organizations and how it can be managed.

5. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–5 The Nature of Leadership Leaders –People who can influence the behaviors of others without having to rely on force. –People who are accepted as leaders by others. Process: what leaders actually do. –Use noncoercive influence to shape the group’s or organization’s goals. –Motivate others’ behavior toward goals. –Help to define organizational culture. Property: who leaders are. –The set of characteristics attributed to individuals perceived to be leaders.

6. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–6 Table 11.1 Distinctions Between Management and Leadership Source: Adapted from A Force for Change: How Leadership Differs from Management by John P. Kotter. Copyright © 1990 by John P. Kotter, Inc. Reprinted with permission of The Free Press, a division of Simon & Schuster Inc.

7. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–7 Types of Power in Organizations Source: Van Fleet, David D., and Tim Peterson, Contemporary Management, Third Edition. Copyright © 1994 by Houghton Mifflin Company. Used with permission.

8. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–8 Power and Leadership Power is the ability to affect the behavior of others. –Legitimate power is granted through the organizational hierarchy. –Reward power is the power to give or withhold rewards. –Coercive power is the capability to force compliance by means of psychological, emotional, or physical threat. –Referent power is the personal power that accrues to someone based on identification, imitation, loyalty, or charisma. –Expert power is derived from the possession of information or expertise.

9. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–9 Generic Approaches to Leadership Leadership Traits –Assumed that a basic set of personal traits that differentiated leaders from nonleaders could be used to identify leaders and predict who would become leaders. –The traits approach was unsuccessful in establishing empirical relationships between traits and persons regarded as leaders.

10. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–10 Generic Approaches to Leadership (cont’d) Leadership Behaviors –Assumed that effective leaders somehow behaved differently from ineffective leaders. –The goal of the behaviors approach was to develop a fuller understanding of leadership behaviors

11. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–11 Michigan Studies (Rensis Likert) Identified two forms of leader behavior –Job-centered behavior—managers who pay close attention to subordinates’ work, explain work procedures, and are keenly interested in performance. –Employee-centered behavior—managers who focus on the development of cohesive work groups and employee satisfaction. The two forms of leader behaviors were considered to be at opposite ends of the same continuum.

12. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–12 Ohio State Studies Did not interpret leader behavior as being one- dimensional as did the Michigan State studies. Identified two basic leadership styles that can be exhibited simultaneously: –Initiating-structure behavior—the leader clearly defines the leader-subordinate role expectations, formalizes communications, and sets the working agenda. –Consideration behavior—the leader shows concern for subordinates and attempts to establish a friendly and supportive climate.

13. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–13 Ohio State Studies (cont’d) Initial assumption was that the most effective leaders who exhibit high levels of both behaviors. Subsequent research indicated that: –Employees of supervisors ranked high on initiating structure were high performers, yet they expressed low levels of satisfaction and higher absenteeism. –Employees of supervisors ranked high on consideration had low performance ratings, yet they had high levels of satisfaction and less absenteeism. –Other situational variables make consistent leader behavior predictions difficult. There is no universal or “one best way” model of leadership.

14. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–14 Figure 11.1 Leadership Grid ® Source: From Leadership Dilemmas—Grid Solutions by Robert R. Blake and Anne Adams McCanse. (Formerly the Managerial Grid by Robert R. Blake and Jane S. Mouton.) Houston: Gulf Publishing Company, p. 29. Copyright © 1991 by Scientific Methods, Inc. Reproduced by permission of the owners.

15. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–15 Situational Models of Leader Behavior Assume that: –Appropriate leader behavior varies from one situation to another. –Key situational factors that are interacting to determine appropriate leader behavior can be identified.

16. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–16 Least-Preferred Coworker Theory (Fiedler) The appropriate style of leadership varies with situational favorableness (from the leader’s viewpoint). –Leadership styles are fixed so the situation must be changed to fit the leader’s style. Least preferred coworker (LPC) measure –The measuring scale that asks leaders to describe the person with whom they are least able to work well. –High LPC scale scores indicate a relationship orientation; low LPC scores indicate a task orientation on the part of the leader.

17. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–17 Least-Preferred Coworker Theory (Fiedler) (cont’d) Contingency variables determining situational favorableness: –Leader-member relations—the nature of the relationship between the leader and the work group. –Task structure—the degree to which the group’s task is defined. –Position Power—the power vested in the leader’s position.

18. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–18 Figure 11.2 The Least-Preferred Coworker Theory of Leadership

19. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–19 Path-Goal Theory (Evans and House) Assumes that the primary functions of a leader are to make valued or desired rewards available in the workplace and to clarify for the subordinate the kinds of behavior that will lead to goal accomplishment or rewards.

20. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–20 Path-Goal Theory (Evans and House) (cont’d) Leader Behaviors: –Directive leader behavior—letting subordinates know what is expected of them, giving guidance and direction, and scheduling work. –Supportive leader behavior—being friendly and approachable, having concern for subordinate welfare, and treating subordinates as equals. Leader Behaviors: –Participative leader behavior—consulting with subordinates, soliciting suggestions, and allowing participation in decision making. –Achievement-oriented leader behavior—setting challenging goals, expecting subordinates to perform at high levels, encouraging and showing confidence in subordinates.

21. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–21 The Path-Goal Theory Situational Factors: Work Situation Follower lacks self- confidence Supportive Achievement- oriented Participative Directive Leadership Style Impact on Followers Expected Results Lack of job challenge Improper procedures and poor decisions Ambiguous job Increases self- confidence to complete task Encourages setting high but attainable goals Clarifies follower need for making suggestions and involvement Clarifies path to get rewards Increased effort. job satisfaction, and performance; fewer grievances Improved performance and greater job satisfaction Improved performance and greater satisfaction; less turnover Improved performance and job satisfaction

22. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–22 Figure 11.3 The Path-Goal Framework

23. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–23 Decision Tree Approach (Vroom) Attempts to prescribe a leadership style appropriate to a given situation. Basic Premises –The degree to which subordinates should be encouraged to participate in decision making depends on the characteristics of the situation. –No one decision-making process is best for all situations.

24. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–24 Decision Tree Approach (Vroom) (cont’d) After evaluating the different problem attributes, a leader can choose a decision path on one of two decision trees that determines the decision style and specifies the amount of employee participation. –Decision significance—the degree to which the decision will have an impact on the organization. Subordinates are involved when decision significance is high. –Decision Timeliness—the degree of time pressure for making a decision in a timely basis; may preclude involving subordinates.

25. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–25 Vroom Decision Tree Approach (cont’d) Decision-Making Styles –Decide—manager makes decision alone and then announces or “sells” it to the group. –Consult (individually)—manager presents program to group members individually, obtains their suggestions, then makes the decision. –Consult (group)—manager presents problem to group at a meeting, gets their suggestions, then makes the decision.

26. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–26 Vroom Decision Tree Approach (cont’d) Decision-Making Styles (cont’d) –Facilitate—manager presents the problem to the group, defines the problem and its boundaries, and then facilitates group member discussion as they make the decision. –Delegate—manager allows the group to define for itself the exact nature and parameters of the problem and then develop a solution.

27. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–27 Figure 11.4 Vroom’s Time-Driven Decision Tree Source: Adapted and reprinted from A Model of Leadership Style by Victor H. Vroom, © Victor H. Vroom, 1998.

28. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–28 Figure 11.5 Vroom’s Development-Driven Decision Tree Source: Adapted and reprinted from A Model of Leadership Style by Victor H. Vroom, © Victor H. Vroom, 1998.

29. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–29 The Leader-Member Exchange (LMX) Approach (Graen and Dansereau) Stresses the importance of variable relationships between supervisors and each of their subordinates. Leaders form unique independent relationships (“vertical dyads”) with each subordinate in which the subordinate becomes a member of the leader’s out-group or in-group.

30. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–30 Figure 11.6 The Leader-Member Exchange (LMX) Approach

31. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–31 Substitutes for Leadership A concept that identifies situations in which leader behavior is neutralized or replaced by characteristics of subordinates, the task, and the organization.

32. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–32 Charismatic Leadership Charisma, an interpersonal attraction that inspires support and acceptance, is an individual characteristic of a leader. –Charismatic persons are more successful than noncharismatic persons. –Charismatic leaders are self-confident, have a firm conviction in their beliefs and ideals, and possess a strong need to influence people.

33. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–33 Charismatic Leadership (cont’d) Charismatic leaders in organizations must be able to: –envision the future, set high expectations, and model behaviors consistent with expectations. –energize others through a demonstration of excitement, personal confidence, and patterns of success. –enable others by supporting them, by empathizing with them, and by expressing confidence in them.

34. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–34 Transformational Leadership Leadership that goes beyond ordinary expectations, by transmitting a sense of mission, stimulating learning, and inspiring new ways of thinking. Seven keys to successful leadership –Trusting one’s subordinates –Developing a vision –Keeping cool –Encouraging risk –Being an expert –Inviting dissent –Simplifying things

35. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–35 Emerging Approaches to Leadership Strategic Leadership –Top management’s capability to understand the complexities of both the organization and its environment and to lead change in the organization in order to achieve and maintain a superior alignment between the organization and its environment. Cross-Cultural Leadership –The capability to provide purpose and direction that encompasses both international and diversity-based differences in the organization.

36. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–36 Emerging Approaches to Leadership (cont’d) Ethical Leadership –Providing a strong corporate governance model to the organization that reflects the high ethical standards of its leaders. –Holding those who lead the organization accountable for their actions and the consequences of their actions.

37. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–37 Political Behavior in Organizations Political Behavior –The activities carried out for the specific purpose of acquiring, developing, and using power and other resources to obtain one’s preferred outcomes. –Common Political Behaviors Inducement—offering to give something to someone else in return for that person’s support. Persuasion—persuading others to support a goal on grounds that are objective and logical as well as subjective and personal. Creation of an obligation—providing support for another person’s position that obliges that person to return the favor at a future date. Coercion—using force to get one’s way. Impression management—making a direct and intentional effort to enhance one’s image in the eyes of others.

38. Copyright © 2005 by Houghton Mifflin Company. All rights reserved. 11–38 Political Behavior in Organizations (cont’d) Managing Political Behavior –Be aware that even if actions are not politically motivated, others may assume that they are. –Reduce the likelihood of subordinates engaging in political behavior by providing them with autonomy, responsibility, challenge, and feedback. –Avoid using power to avoid charges of political motivation. –Get disagreements and conflicts out in the open so that subordinates have less opportunity to engage in political behavior. –Avoid covert behaviors that give the impression of political intent even if none exists.